Exam Questions Flashcards
Which one of the following instruments does NOT transfer an interest in real estate?
A. An option
B. A lease
C. A bill of sale
D. An agreement of sale
A Bill of Sale - A bill of sale is used to convey personal property while a deed is an instrument used to convey real property.
To create an easement by prescription the following must happen:
A. Constant use of the land for the state number of years
B. Open and notorious use of land
C. Hostile and adverse use of the land
D. All of the above
All of the above
Of the following, which are NOT classified as real property?
A. Fixtures
B. Emblements
C. Shrubs planted in the ground
D. Air rights
Emblements
Growing crops such as grapes and corn that are produced annually through labor and industry are deemed to be personal property.
Bob owns a small grocery store. The location is going to be zoned and the zoning will be residential. Bob wants to continue to operate his grocery store. He may apply for:
A. Discrepancy
B. Conditional use
C. Nonconforming use permit
D. Variance
Nonconforming use permit
A structure that is in existence before a new zoning law is enacted may not be in compliance of the new zoning law. The owner may apply for a nonconforming use permit and continue to use the building. The building is said to be “grandfathered” under the nonconforming use permit. The owner of the building may maintain the building but may not enlarge, remodel, or extend the life of the building. A store that was in existence before the neighborhood was rezoned residential would be an example of a “grandfathered” building with a nonconforming use permit.
Mike gave land to the university. Mike will not allow the university to use the land for any sports activities. If the land is used for sports activities, the land will revert to Mike. This is a:
A. Fee simple estate
B. Life estate
C. Defeasible fee estate
D. Estate for years
Defeasible fee estate
In defeasible fee estates, the grantor gives land to the grantee, subject to certain conditions
An instrument which guarantees against defects in title and conveys title is a:
A. Policy of title insurance
B. Chain of title
C. Warranty deed
D. Deed of trust
Warranty deed
The title policy guarantees against defects in title but what makes this the deed is “conveys title.” Deeds convey title.
This estate may be terminated by either party. It has no duration limitation.
A. Estate at will
B. Estate from period to period
C. Estate for years
D. Freehold estate
Estate at will
state at will (also called tenancy at will) gives the right to terminate the lease to both the landlord and the lessee. The termination of the lease is valid provided that prior notice is issued, and a reasonable time is provided for by the party that initiated the lease termination.
What is the notice called when the title transfer of a property is publicly recorded?
A. Appropriate notice
B. Public notice
C. Constructive notice
D. Actual notice
Constructive notice
George hired a general contractor to build an addition to his house. The general contractor failed to pay the electrical subcontractor for work that was subcontracted to him. May the subcontractor secure a mechanic’s lien on George’s house?
A. Yes, because the work was done on George’s property.
B. Yes, because a mechanic’s lien is a general lien that attaches to all property of the contractor.
C. No, because George did not ask for the lien.
D. No, because the lien would attach to real property of the general contractor.
Yes, because the work was done on George’s property.
Subcontractors and suppliers are not in contract with you as the owner, meaning that they cannot sue you for breach of contract. However, they can file a lien on your property in the office of the county clerk.
Tom and Sue are not married. They own a property together. If one of them dies, the other will own the property. They most likely own the property as:
A. Joint tenancy with the right of survivorship
B. Community property
C. Tenancy by the entirety
D. Tenancy in common
Joint tenancy with the right of survivorship
Joint tenancy with the right of survivorship
Which of the following estimates of value is most likely to provide only a rough estimate of the value of the rental property?
A. Cost approach
B. Gross rent multiplier
C. Income approach
D. Market approach
Gross rent multiplier
The gross rent multiplier is computed by taking the sales price of a property and dividing it by the annual rental income. This will give you the GRM.
Of the following, what can’t be assigned?
A. A lease
B. A real estate contract
C. A mortgage
D. A deed
A deed
A deed cannot be assigned. A mortgage can be transferred from the original lender or borrower to a third party. An assignable lease is the saleable remaining portion of a lease that a licensee wishes to sell. A real estate contract assignment cannot be done on all transactions but it can be done.
The period during which site improvements contribute to the value of the property is called the:
A. Economic utility
B. Asset investment life
C. Accrued depreciation period
D. Economic life
Economic life
The period of time during which a structure may reasonably be expected to perform the function for which it was designed or intended. For IRS purposes, the economic life is the time a property is allowed to be depreciated.
Which federal law required lenders to only use licensed or certified appraisers to conduct federally related appraisals over $250,000?
A. RESPA
B. CFPB
C. FIRREA
D. USPAP
FIRREA
In 1989, the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) began requiring that a licensed or certified appraiser be used to do any appraisal in connection with a federally related transaction of $250,000 or above.
A new 4000 sq. ft. home is built in a neighborhood of 1500 sq. ft. homes. The new home suffers from:
A. Functional obsolescence
B. Economic obsolescence
C. Regression
D. Both B and C
Regression
Regression is the principle that states properties with superior improvements or land values are reduced when most properties in the same neighborhood are inferior.
When the listing broker shows the listing to someone and implies that the broker is representing that person, it is:
A. Intentional dual representation
B. Unintended dual representation
C. Universal agency
D. Special representation
Unintended dual representation
Unintended dual representation could occur as the result of implied agency. Implied agency occurs when the unrepresented buyer is led to believe that he or she is being represented.
When the broker is aware of the agency relationship and has disclosed the relationship to all parties to the transaction, it is:
A. Intentional dual representation
B. Unintended dual representation
C. Universal agency
D. Special representation.
Intentional dual representation
In intentional dual representation, the broker is aware of the agency relationship and has disclosed the relationship to all parties to the transaction. He or she is acting as an intermediary with the written permission of both the seller and the buyer. Dual representation is intermediary.
The One to Four Family Residential Contract (Resale) is the form used to make an offer on a property. It becomes the contract when:
A. A lawsuit affects the property.
B. The buyer has signed the form.
C. The offer is made to the seller.
D. All parties have signed.
All parties have signed.
The 6 essential elements to make a contract valid are: Competent parties, legal objective, consideration, offer and acceptance and contract in writing and signed.
Legal action to force the buyer or seller who has breached the contract to carry out the remainder of contract is called a suit:
A. For liquidated damages
B. For specific performance
C. Equal to the agent’s commission
D. For the minimum required to make the contract valid
For specific performance
With specific performance the innocent party may sue the breaching party to carry out the contract. Example: The buyer backs out of the contract a few days before closing. The seller could sue the buyer to force him to buy the property.
When property is sold by means of an installment contract:
A. The seller delivers deed at closing.
B. The buyer is NOT given the right to occupy the property until the
contract terms have been fulfilled.
C. The seller retains title.
D. Time is of the essence.
The seller retains title.
An installment contract is also called a contract for deed. This means that the seller retains title to the property until the buyer pays off the loan.
John and Susan Jones made an offer on a property at 500 Seasons Lane. Right after they made the offer to the seller, a new property came on the market that was perfect for them, so they decided to withdraw their offer on 500 Seasons Lane. The seller had not yet signed or countered the offer. Withdrawing the offer is called:
A. Breach
B. Rescission
C. Voidable
D. Unenforceable
Rescission
In 1993, the legislature created:
A. Buyer’s agency
B. Statutory dual agency
C. Intermediary
D. Subagency
Statutory dual agency
The penalty for the first offense in a complaint filed for fair housing violations is a fine of _____________. A second violation within five years is a fine of__________. A further violation within seven years is ___________.
A. $50,000; $100,000; $250,000
B. $10,000; $25,000; $50,000
C. There is no fine. There is only jail time.
D. None of the above
$10,000; $25,000; $50,000
According to the TREC One to Four Family Residential Contract (Resale), who is responsible for paying the owner’s policy of title insurance fee?
A. The buyer
B. The seller
C. The title company named in the contract.
D. The party stipulated in the contract
The party stipulated in the contract
The title policy can be paid by either party.
When a listing is taken on a property, the listing becomes the property of the:
A. Broker
B. Seller
C. Buyer
D. Salesperson
Broker
John has entered a lease agreement with Anne, the owner of the property at 987 River Bend Road for a one-year term. This is considered to be what type of contract?
A. Executory contract
B. Unilateral contract
C. Option contract
D. Installment contract
Executory contract
An executory contract is a contract that is fulfilled over time, such as a lease agreement.
Property managers have a _______relationship with the owner.
A. Subagency
B. Partnership
C. Non-binding
D. Fiduciary
Fiduciary
Who does the Department of Housing and Urban Development (HUD) turn discrimination complaints over to?
A. The Federal Fair Housing Committee
B. The Texas Workforce Commission Civil Rights Division
C. The Texas Department of Housing and Community Affairs
D. The Texas state licensing organization
The Texas Workforce Commission Civil Rights Division
The process by which land is increased because of the deposit of rock and soil by water is:
A. Accretion
B. Reliction
C. Erosion
D. Avulsion
Accretion
A buyer’s interest in real property, acquired at the moment the seller and the buyer enter into a sales contract, is known as:
A. Legal title
B. Equitable interest
C. Fee simple determinable
D. An option to purchase
Equitable interest
Equitable interest is the buyer’s interest in real property the moment the seller and the buyer enter into a sales contract.
What does CERCLA do?
A. CERCLA allows the Environmental Protection Agency to clean up toxic waste dumps and spills.
B. CERCLA provides insurance for owners with contaminated property.
C. CERCLA gives owners the option of leasing their property.
D. CERCLA requires state agencies to report any nuisances on the property.
CERCLA allows the Environmental Protection Agency to clean up toxic waste dumps and spills.
To qualify as a Texas veteran, which of the following requirements is necessary?
A. Be a resident of Idaho
B. Serve at least 90 days active duty
C. Be dishonorably discharged
D. Be deployed for 2 years overseas
B. Serve at least 90 days active duty
A borrower’s property serves as collateral while the borrower retains the rights of possession and use of it by the process of:
A. Alienation
B. Hypothecation
C. Amortization
D. Acceleration
Hypothecation
What is the market where borrowers and mortgage originators come together to negotiate terms and effectuate mortgage transactions?
A. Money Market
B. Primary Market
C. Secondary Market
D. Origination Market
Primary Market
Mortgage brokers and bankers, credit unions and banks are all part of the primary market.
What is a written legal instrument that embodies the agreement between a lender and a borrower to transfer an interest in the borrower’s property to a neutral third party to secure the payment of a debt by the borrower?
A. Deed of Trust
B. Deed
C. Note
D. Mortgage
Deed of Trust
Non-conforming loans are loans that:
A. Do not use the Closing Disclosure to close the loan
B. Do not meet the FNMA guidelines
C. Do not use the Loan Estimate
D. Are commercial or participation mortgages only
Do not meet the FNMA guidelines
FNMA and FHLMC are two secondary mortgage markets that purchase conforming loans from lenders. Non-conforming loans are those that do not fit the FNMA and FHLMC guidelines.
Figure the square footage of this piece of land.
A. 600 square feet
B. 700 square feet
C. 800 square feet
D. 1000 square feet
First, make the parcel a
square and a right triangle. Square dimensions (A) would be 30 x 20 = 600 square feet. The right triangle (B) would be 10 x 20 = 200 ÷ 2 = 100. The total square footage is 600 + 100 = 700 square feet.
Agency by ratification is an agency relationship created when a principal confirms and accepts a purported agent’s unauthorized act. Given that definition, which of the following statements is true about agency by ratification?
A. Agency by ratification is illegal in Texas.
B. Agency by ratification is permitted in Texas.
C. Agency by ratification falls under Deceptive Trade Practices Act is punishable by triple damages.
D. There is no such thing as agency by ratification.
Agency by ratification is permitted in Texas.
An apartment complex has 20 units each renting for $1,000 monthly. The expenses this year were $65,000. What is the annual NOI?
A. $85,000
B. $125,000
C. $175,000
D. $149,500
C. $175,000
$1000 × 20 = $20,000 monthly × 12 = $240,000 - $65,000 (expenses) = $175,000( net operating income).
What is the type of leasehold where the duration of the lease is unknown at the time it is created?
A. Periodic estate
B. Estate for years
C. Tenancy at will
D. Tenancy at sufferance
Tenancy at will
The duration of the lease is contingent upon the will of the parties involved.
Jennifer Rand is purchasing a townhome for $725,000. She is going to put 20% down for her down payment. The interest rate for the loan is 4.5% and the factor for the loan is 5.067 for a 30-year loan. What is Jennifer’s PI payment on the mortgage? (Round up to the nearest dollar.)
$2,939
$725,000 × .80 = $580,000 loan. $580,000 ÷ 1000 (factor is per thousand dollars borrowed) = 580 × 5.067(factor) = $2,938.86 = $2,939.
If an agent from ABC Company lists a property and another agent from ABC Company who represents the buyer sells the property, what is the role of the broker?
A. Sub-agent
B. Listing broker
C. Intermediary
D. Dual agent
Intermediary
Intermediary involves a broker who has one agent who has listed the property and another agent who has a buyer for that listing both agents being in the same brokerage company.
All of the following should be included in the broker’s policy and procedures manual EXCEPT:
A. Goals for the company
B. Agency and representation
C. Compensation and fees.
D. Required attendance at sales meetings and scheduled time for answering the telephones at the office that the broker schedules three months in advance.
Required attendance at sales meetings and scheduled time for answering the telephones at the office that the broker schedules three months in advance.
As independent contractors, brokers may not require agents to engage in specific, timed activities.
The Browns’ monthly mortgage payment will be $1,100. If the lenders’ qualifying ratio is 28%, how much income must they earn monthly to qualify?
A. $3,696.57
B. $3,700.60
C. $3,928.57
D. $4,200.60
$3,928.57
$1,100 ÷ .28 = $3,928.57 is the amount of monthly income needed to qualify.
The subject property sold on May 25, 2017 for $165,000. Prorate taxes for a closing on June 22, 2017. The year 2016 taxes were $7,012.50. Use a statutory year.
A. Credit the buyer $3350.41, debit the seller the same amount.
B. Credit the buyer $2824.48 debit the seller the same amount.
C. Credit the buyer $3105.60, debit the seller the same amount.
D. Debit the buyer $2956.40, credit the seller the same amount.
Credit the buyer $3350.41, debit the seller the same amount.
The seller will be charged for the taxes for the time he owned the property, so he will be charged from January 1–June 22. Annual taxes $7012.50 ÷ 360 (statutory year = 360 days not 365) = 19.4791 (daily tax). All months have 30 days so it would be January–May (30 days × 5 months = 150 days) + 22 days in June for a total of 150 + 22 = 172 days. $19.4791 x 172 days = $3,350.4052 = $3350.41
All lawsuits concerning the Civil Rights Act of 1866 (dealing with race) go directly to a federal court. Other fair housing complaints are handled by the:
A. Texas Workforce Commission Civil Rights Division (TWCCRD)
B. U.S. Department of Housing and Urban Development (HUD)
C. An administrative law judge (ALJ)
D. All of the above
All of the above
The property has an NOI of $40,000 and you require a cap rate of 6%. What will you pay for this property?
A. $525,765
B. $450,000
C. $150,000
D. $666,667
$666,667
$40,000 ÷ 6% (.06) = $666,6666 = $666,667 (rounded up and off).
The seller collected $2,500 rent for the month of May. The closing date is May 4th. What amount of rent should be credited to the buyer at closing? Round up to the nearest dollar and use a statutory year.
A. $2,300
B. $2,250
C. $2,100
D. $2,000
$2,250
$2,500 ÷ 30 = $83.3333 per day. May 4–May 30 = 27 days (including the 4th). $83.3333 × 27 = $2,249.99 = $2,250 credit that the buyer will receive in rent at the closing.
The TR Residential Leasing and Property Management Agreement is the form often used between:
A. Seller and buyer
B. Property manager and tenant
C. Property manager and owner
D. Tenant and owner
Property manager and owner
How does a constructive eviction occur?
A. A landlord obtains a court order to force the tenant to vacate the lease property.
B. A landlord declares a tenant in default and takes possession of the leased property.
C. A tenant declares the landlord to be in default and vacates the property.
D. A court officer forcibly removes the tenant from the property.
A tenant declares the landlord to be in default and vacates the property.
Constructive eviction is when the tenant claims the landlord’s actions have made the property unfit for habitation. A judge must agree with the constructive eviction.
The Education Standard Advisory Committee was enacted in:
A. 2011
B. 2016
C. 1949
D. 1939
2011
The maximum civil penalty for a corporation is $1,000,000 if the corporation violates what type of law?
A. Antitrust laws
B. Fair housing laws
C. Consumer protection laws (DTPA)
D. Financial fraud
Antitrust laws
Sherman Anti-Trust prohibits certain business activities that reduce competition in the marketplace. The most common antitrust violations that apply to real estate are price-fixing, boycotting, and allocation of customers or markets.
A brokerage can register a contact person who will have access to the Do Not Call registry. The law allows calls to existing clients which are defined as someone you have a business transaction with in the last ____ months
A. Two
B. Six
C. 12
D. 18
18
A broker has no sponsored salespersons. The broker has taken a listing for a house and has signed a buyer representation agreement with a buyer. The broker has shown the buyer several homes and the buyer wants to buy the house listed by the broker. What may the broker do?
A. The broker must tell the buyer to get an agent from another company.
B. The broker must quickly find two salespersons to sponsor and then appoint the seller to one and the buyer to the other.
C. The broker must give advice and opinions to both the seller and buyer.
D. The broker may become an intermediary and may not give advice and opinions to the seller and buyer.
D The broker may become an intermediary and may not give advice and opinions to the seller and buyer.
When a broker has no sponsored salesperson, then they cannot make appointments. They represent the buyer and the seller through representation agreements and gave permission to do Intermediary with just the broker. When this happens, neither the seller nor buyer can receive advice, opinions, or negations from the broker.
If a buyer defaults in a contract for deed, which of the following statements are true?
A. The defaulting buyer must agree to terminate the contract and forfeit al payments made to the seller.
B. The seller must give the buyer three months to correct the default.
C. If the buyer is in default, the seller must give the buyer notice before taking any further action.
D. The seller can take immediate possession of the property and no notice is due the buyer.
C. If the buyer is in default, the seller must give the buyer notice before taking any further action.
Representing that goods are new if they are not, representing that something is of a particular brand if it is not, or advertising goods with intent not to sell them as advertised is a violation of:
A. DTPA
B. ADA
C. Antitrust
D. Title VII
DTPA
The Texas Property Code requires the seller of a dwelling of not more than one unit to deliver a Seller’s Disclosure Notice to a buyer if the dwelling is a resale property. The Seller’s Disclosure Notice is not used for commercial property. If the buyer has not received the notice before signing the contract, the buyer may:
A. Terminate the contract within 7 days after receiving the notice
B. Terminate the contract within 14 days after receiving the notice
C. Terminate the contract, but must have the seller’s permission
D. Reduce the sales price even if the seller does not agree
A. Terminate the contract within 7 days after receiving the notice
If a buyer makes an offer on a property and the seller counters the offer (makes changes), the counter is considered to be:
A. A reflection
B. A rescission
C. A rejection
D. A resentment
C. A rejection
What is the best type of Agency for an agent to enter into?
A. Exclusive Right to Sell
B. Exclusive Agency
C. Implied Agency
D. Net listing
Exclusive Right to Sell
The Exclusive Right to Sell is a type of listing agreement that assures the agent a commission if the property sells. It is the best listing for a broker.
Failure on the part of the broker to advise the purchaser in writing to have an abstract examined by an attorney or obtain a title policy:
A. Is in no way a violation of the Texas Real Estate License Act
B. Is the normal practice in Texas
C. May be cause for an agent to have their license suspended or revoked, and precludes the receipt of any commissions paid at the sale
D. Is the correct action as this is clearly a legal matter
C. May be cause for an agent to have their license suspended or revoked, and precludes the receipt of any commissions paid at the sale
All properties built before 1978 require a Lead Based Paint Disclosure which is mandated by the federal government. Brokers must also sign this form. How long must a Broker keep a record of the Lead Based Paint Disclosure form?
A. Ten years
B. Seven years
C. Three years
D. Two years
Three years
An underground storage tank system is a tank and any underground piping connected to the tank that has at least _________ of its combined volume underground.
A. 10%
B. 25%
C. 50%
D. 75%
10%
When a property has become uninhabitable and the landlord has refused to repair the property the tenant may file a:
A. Constructive eviction
B. Foreclosure against the owner
C. Judicial eviction
D. The tenant must stay in the property until the lease is up.
A. Constructive eviction
Constructive eviction is used by the tenant to break a lease when the property has become uninhabitable and the landlord has refused to repair the property.
What non-conventional loan program(s) is/are available to buyers purchasing their first home?
A. FHA loans
B. VA loans
C. USDA loans
D. All of the above
All of the above
George hired a general contractor to build an addition to his house. The general contractor failed to pay the electrical subcontractor for work that was subcontracted to him. May the subcontractor secure a mechanic’s lien on George’s house?
A. Yes, because the work was done on George’s property.
B. Yes, because a mechanic’s lien is a general lien that attaches to all property of the contractor.
C. No, because George did not ask for the lien.
D. No, because the lien would attach to real property of the general contractor.
A. Yes, because the work was done on George’s property.
A general contractor as well as the subcontractor who was hired by the contractor may place a mechanics lien on the property if they have not been paid.
Jack has a lien on his home. The lien will be repaid in full by the maturity date without the need for a balloon payment. This type of loan is known as a(n):
A. Term loan
B. Straight loan
C. Amortized loan
D. Loan point
Amortized loan
A loan in which the principal and interest are payable in monthly or other installments to reduce the loan balance to zero at the end of the loan term.
What does FNMA exchange for a block or pool of mortgages?
A. Treasury bills
B. Mortgage backed securities
C. Loans
D. Bonds
Mortgage backed securities
Mortgage backed securities are investment instruments that are secured by pools of mortgages and are used to channel funds from securities markets to housing markets; FNMA, FHLMC, and GNMA have mortgage-backed securities programs.
Among other things, RESPA prohibits:
A. Kickbacks and/or fees for services not actually performed during the closing process
B. The buyer from selecting the title insurance company
C. Use of the HUD settlement statement
D. Owner refinances
Kickbacks and/or fees for services not actually performed during the closing process
In a lien theory state:
A. An individual who takes out a mortgage to buy a property holds the title to the property.
B. It is easy for the bank to foreclose on a property.
C. The buyer cannot be foreclosed upon.
D. The bank holds the title to the property until the mortgage is paid off.
An individual who takes out a mortgage to buy a property holds the title to the property.
Lenders use __________________ to measure a borrower’s monthly payment plus all long-term debt for qualification.
A. Market analysis
B. Front-end ratio
C. Income analysis
D. Back-end ratio
Back-end ratio
For conventional loans, the front-end ration is 28%(which is simply 28% of the buyer’s gross income). The back-end ratio is 36% and includes the buyer’s loan term debit.
Sam Smith is purchasing a home. The selling price is $107,000. He is acquiring a new conventional loan and decides to make a 10% down payment. The interest rate is 8%. He is closing September 10. Using a 30-day month, how much interest will this buyer pay at closing?
A. $214.00
B. $449.40
C. $475.50
D. $234.52
$449.40
$107,000 × .90 = $96,300 (loan amount). Loan × interest rate = annual interest. $96,300 × .08 = $7,704 interest annually. $7,704 ÷ 360 = $21,40 interest per day. Closing on September 10 = 30 – 10 = 20 + 1 = 21. You must count the day of closing as the buyer will be charged interest for that day. $21.40 × 21 days = $449.40.
A home is currently appraised for $378,000. After having appreciated 6% per year for five years, what was the original price?
A. $325,000
B. $189,500
C. $290,770
D. $236,800
$290,770
Take 100% plus or minus the rate of appreciation. 5 years × 6% = 30% + 100% = 130%. So, the current value of $378,000 ÷ 130% = $290,769.23 (or rounded off $290,770)
Which of the following statements is true of payment that is made from the Real Estate Recovery Fund due to a licensee’s acts?
A. The license may be revoked and a new one will not be issued until the fund has been reimbursed, with interest.
B. The license will be revoked if the fund is not reimbursed within six months, with interest
C. The license is revoked automatically.
D. The license is suspended immediately but will be reissued upon reimbursement of the fund, with interest.
The license may be revoked and a new one will not be issued until the fund has been reimbursed, with interest.
A person may not sell, lease, or transfer an easement or right-of-way used for utility, railroad, or pipeline service for another compensation unless the person:
A. Holds a real estate license issued by TREC
B. Holds a certificate of registration issued by TREC
C. Either A or B
D. Neither A or B
Either A or B
A person may not sell, buy, lease, or transfer an easement or right-of-way for another, for compensation or with the expectation of receiving compensation, for use in connection with telecommunication, utility, railroad, or pipeline service unless the person: (1) holds a license issued under this chapter; or (2) holds a certificate of registration issued under this subchapter.
If a broker fails to properly safeguard and deposit earnest money, what is he guilty of?
A. Misrepresentation
B. Default
C. Improper handling of trust money
D. Felony
Improper handling of trust money
A license is not needed to sell a cemetery lot because the cemetery lot is:
A. Owned by the state
B. Personal property
C. Real estate
D. Owned by city
Personal property
A cemetery lot is personal property and is sold with a bill of sale. Real Estate is sold with a deed. Real Estate salespersons have a license to sell real estate, not personal property. The entire cemetery is real estate. Each plot is personal property.
An unlicensed manager is able to perform all of the following tasks EXCEPT:
A. Administrative tasks
B. Training
C. Directing sales agents with advice on how to buy, sell, or lease property
D. Bookkeeper
Directing sales agents with advice on how to buy, sell, or lease property
Texas has never allowed what type of dual agency?
A. Disclosed dual agency
B. Undisclosed dual agency
C. Tenancy dual agency
D. Sole proprietor dual agency
Undisclosed dual agency
With regard to the licensees use of signs, what can licensees do within legal guidelines?
A. Real estate agents are not allowed to place signage anywhere.
B. They may place a sign on the owner’s property only with the owner’s permission.
C. If they are the listing agent on a property, licensees may put a sign on the property, with or without the owner’s permission.
D. They may only put signs on properties that are listed with an “exclusive right-to-sell” listing agreement.
They may place a sign on the owner’s property only with the owner’s permission.
The option period allows buyers:
A. The unrestricted right to terminate the contract within a certain time period.
B. The right to terminate under certain conditions spelled out in Paragraph 23.
C. 10 days to provide the seller a list of all repairs requested by the buyer.
D. 15 days from the date of the end of the option period to close the transaction.
The unrestricted right to terminate the contract within a certain time period.
When there is a fee paid for a specific time period for the option, the buyer can terminate for any reason. All other rights of the buyer to terminate depend on something that has been done, or not done, according to the terms of the contract.
If either party withdraws their offer before it is accepted by the other party, it is called:
A. Rejection
B. Rescission
C. Reflection
D. A withdrawal symptom
Rescission
In what way does the homestead laws of Texas protect Texas residents?
A. It protects the home from seizure by federal agents even if used for illegal purposes.
B. It protects against foreclosure by general creditors.
C. It keeps the homeowner from being foreclosed upon by the lender.
D. It protects the homeowner in all cases against lenders, creditors, and poachers.
It protects against foreclosure by general creditors.
The homestead laws of Texas protect homeowners from forced sale by general creditors and provides the right of occupancy for the surviving spouse, unmarried children, and children under 18.
