Broker 2 Flashcards
In order for a tenant to claim relief for constructive eviction:
The landlord must have intentionally withheld required repairs or maintenance, and the tenant must prove continuous residence in the premises.
A buyer purchases a furnished condominium apartment as an investment. The document that evidences the buyer’s ownership of the furniture is a:
Bill of sale.
A broker who enters into a property management contract is considered a:
Fiduciary
A buyer’s interest in real property, acquired at the moment the seller and the buyer enter into a sales contract, is known as:
Equitable Interest
The appropriate time for a selling broker to explain the agency relationship to a prospective buyer is:
The initial meeting
A broker is asked to lease 1,200 square feet of warehouse space at $6 per square foot per year. If the broker’s commission will be 8 percent of the first year’s rental income, the MAXIMUM amount payable is:
720
A geographic region in which similar properties compete with the subject property for potential buyers is called a:
Market area.
In the absence of a formal appraisal report, which of the following choices is the MOST appropriate for setting a listing price in a new, rapidly selling neighborhood?
The price that willing buyers have recently paid for similar structures.
Which of the following factors would be included in the description of replacement cost?
Similar utility and current material.
Under an exclusive right-to-sell listing, a broker has the authority to take which of the following actions on behalf of a seller?
Accept a bona fide offer
Under a lease for a commercial property, a tenant agrees to pay $4,000 per month plus 3% of the gross monthly sales. This type of lease is called a:
Percentage Lease
The agency that is charged with enforcing the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) in the case of an owner who allows the dumping of wastes on a property is the:
EPA
A percentage lease would MOST often be used for tenants in:
Shopping center
A license holder is showing a home built in 1972 to buyers who notice paint flaking on the woodwork. How should the license holder proceed?
Advise the prospective buyers to get a lead-based paint inspection.
A lot was purchased as an investment for $10,500 and sold a year later at a loss of 20%. If the owner paid a 10% commission, what was the owner’s net loss on the sale?
2920
A broker lists a property. A potential buyer tells the broker that he has heard that the crime rate in the neighborhood is increasing. Which of the following is the broker’s BEST response to the buyer?
Check with local law enforcement authorities about the crime rate.
Which of the following statements about the law of agency is CORRECT?
It establishes a fiduciary relationship
A lender’s title policy will protect the:
Lender against existing, undiscovered title defects.
The provision in a mortgage or deed of trust that gives the lender the rights to call the entire balance due upon a default in any payment is called a(n):
Acceleration clause
In order for a property manager to determine net operating income on a property, which of the following fees is subtracted from the effective gross income?
Operating Expenses
The value placed on land and buildings by a governmental unit for use in levying annual real estate taxes is called the:
Assessed Value
If a buyer makes a 20% down payment and obtains a $75,000 mortgage, what is the sales price of the property?
$90k
A special warranty deed provides:
Protection against defects that occurred while the grantor held title.
Which of the following acts is illegal under Federal Fair Housing law?
Refusing to sell a home to a person with a poor credit history.
A loan that provides for increases and decreases in the interest rate during its term is known as a(n):
ARM
The right of local government officials to acquire title to real estate for public purposes by condemnation is based on the power of:
Eminent Domain
The price for which a property will sell if offered openly under normal conditions is known as:
Market Value
The condition which allows a property owner to convey a right to another party while retaining full legal title is a(n):
Easement
The acquisition of another’s title to real property by means of open, notorious, and continuous use is known as an:
Adverse posession
Who sets the commission for a listing broker?
(d) Agreement between the seller and the broker
What document should a seller furnish a buyer for a free-standing appliance sold separately from a real estate transaction?
Bill of sale
Question 32: In order for a brokerage to be able to represent both the buyer and seller in a real estate transaction, the brokerage needs to have the permission of:
Both parties
G borrowed $15,000 to buy a business. The interest rate was 11%. If G paid all the interest and the amount borrowed with a single payment at the end of 16 months, what is the amount of this payment?
17475
Which of the following types of developments allows fee ownership of individual units with joint ownership of common areas?
Condos
An unimproved lot is located in the service area of a water supply corporation. The seller is subject to the notice requirements relating to a service provider. What is the buyer’s statutory remedy if the seller fails to give the written notice REQUIRED by law?
Seek an award of damages in court not to exceed $10,000 plus attorney fees.
To be eligible for a real estate license, an individual MUST:
satisfy the Commission as to the individual’s integrity
Who can pay money to a licensed salesperson to perform sales activities for a house a broker has listed for sale?
The salesperson’s sponsoring broker and no one else.
According to The Real Estate License Act of Texas, which one of the following actions is a fair and impartial act for an intermediary?
Appointing associated licensees to work with the parties.
As a marketing promotion, a real estate salesperson offers property for sale by lottery. This practice is:
Suspension of license
Question 40: When the association of a salesperson with the sponsoring broker is terminated, the broker MUST:
return the salesperson’s license to the Commission within 30 days
When negotiating contracts binding the sale or lease of property, a real estate licensee MUST use an appropriate Texas Real Estate Commission-promulgated form unless another contract form has been prepared and is REQUIRED by the:
owner of the property
An individual is exempt from real estate licensure in Texas when performing which one of the following activities?
Offering an employer’s property for rent.
Absent an agreement, spouse’s rental income from separate property is:
community property
Who is responsible to the Texas Real Estate Commission, the public, and the clients for the acts of a salesperson?
Broker
A buyer contracts to purchase a previously occupied single-family residence. The buyer did NOT receive a copy of the Seller’s Disclosure Notice before signing the contract. According to the Texas Property Code, the buyer has the right to:
terminate the contract within 7 days after receiving notice
Combining a principal’s funds with the licensee’s personal funds is:
Comingling
When MUST an existing agency relationship be disclosed to another party to a proposed transaction?
At the time of licensee’s first contact.
A standard contract form has been developed for:
SFH
What information is in the written statutory statement that a licensee MUST provide for a consumer at their first face-to-face meeting?
Duties of the broker representing one of the parties or acting as an intermediary.
