Mini Quizes Flashcards
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate is known as…? ▫️Agency ▫️Brokerage ▫️Trading ▫️Appraising
Brokerage
Property that produces rental income or that is used in business is known as…? ▫️Commercial Property ▫️Residential Property ▫️Mixed-Use Property ▫️Special Purpose Property
Commercial Property
Government held properties include which of the following…? ▫️Ranches ▫️Churches ▫️Office buildings ▫️Public parks
Public parks
These real estate brokers specialize in the sale and lease of shopping centers and office buildings…? ▫️Residential brokerage ▫️Apartment brokerage ▫️Commercial brokerage ▫️Special use brokerage
Commercial brokerage
Property inspections must be licensed by the Texas Real Estate Commission…?
▫️True
▫️False
True
A type of property that includes one to four dwelling units is known as…? ▫️Commercial Property ▫️Mixed-Use Property ▫️Residential Property ▫️Special Purpose Property
Residential Property
Which of the following is an example of a special purpose property…? ▫️Church ▫️High-rise office tower ▫️Shopping Center ▫️Self storage facility
Church
Which of the following courses are taken after you obtain your real estate license…? ▫️Continuing education courses ▫️Pre-licensing courses ▫️Real Estate Practice courses ▫️Real Estate Principles courses
Continuing education courses
The qualifying Real Estate Principles course consists of how many classroom hours in total…? ▫️15 ▫️30 ▫️45 ▫️60
60
How many points must an applicant earn in order to obtain their real estate broker’s license…? ▫️270 ▫️1200 ▫️2500 ▫️3600
3600
The mission of the Education Standard Advisory Committee (ESAC) is to regularly review and revise the curriculum standards, course content requirements, and instructor certification requirements for qualifying and continuing education courses…?
▫️T (True)
▫️F (False)
True
The pre-licensing courses needed to obtain your real estate license are considered what type of courses…? ▫️Continuing education courses ▫️Elective courses ▫️Qualifying education courses ▫️All of the above
Qualifying education courses
Which of the following factors can impact the value of real estate…? ▫️Topography ▫️Prevailing winds ▫️Proximity to transportation ▫️All of the above
All of the above
Value is the same as price…?
▫️True
▫️False
False
Which of the following affects supply…? ▫️Employment ▫️Cost of labor ▫️Population ▫️All of the above
Cost of labor
Real estate prices are directly related to supply and demand…?
▫️True
▫️False
True
Changes or additions made to a property, such as walls and roads are known as…? ▫️Improvements ▫️Fixtures ▫️Features ▫️Emblements
Improvements
The present worth of future benefits is referred to as…? ▫️Supply ▫️Yield ▫️Value ▫️Investment
Value
Which of the following is a fiduciary duty owed by an agent to their client…? ▫️Indemnification ▫️Disclosure ▫️Compensation ▫️All of the above
Disclosure
This Act established the real estate licensing requirements in Texas in 1939…? ▫️Fair Housing Act ▫️Texas Real Estate Commission Act ▫️Texas Real Estate Dealers Act ▫️U.S. Real Estate Licensing Act
Texas Real Estate Dealers Act
Which of the following is exempt from having to obtain a real estate license to buy or sell real estate on someone else’s behalf…?
▫️Someone acting under a power of attorney
▫️Architects
▫️Appraisers
▫️All of the above
Someone acting under a power of attorney
A person authorized to act on behalf of another is known as a/an…? ▫️Principal ▫️Agent ▫️Customer ▫️Attorney
Agent
The party the agent brings to the principal as seller or buyer of the property is known as the…? ▫️Customer ▫️Broker ▫️Intermediary ▫️All of the above
Customer
A person in a position of trust and confidence, as between principal and broker, is known as a…? ▫️Customer ▫️Principal ▫️Client ▫️Fiduciary
Fiduciary
Mark is looking to purchase a commercial office building. An appraiser was hired to assess the value of the building. What appraisal method did the appraiser use…? ▫️Market Comparison Approach ▫️Income Approach ▫️Cost Approach ▫️All of the above
Income Approach
A non-profit organization in looking to purchase a church. An appraiser was hired to assess the value of the church. What appraisal method did the appraiser use…? ▫️Market Comparison Approach ▫️Income Approach ▫️Cost Approach ▫️All of the above
Cost Approach
Improvements typically ………... in value? ▫️Rescind ▫️Escalate ▫️Appreciate ▫️Depreciate
Depreciate
Price is typically equal to the cost of the property…?
▫️True
▫️False
False
A licensee’s license may be suspended or revoked if which of the following occurs…?
▫️The licensee changes brokerages
▫️The licensee is convicted of a felony
▫️The licensee does not close a transaction within one calendar year
▫️The licensee negotiates on behalf of his/her client
The licensee is convicted of a felony
Real estate agents and brokers must be careful not to provide legal advice to their clients…?
▫️True
▫️False
True
Who holds the real estate license of an agent…? ▫️The agent’s sponsoring broker ▫️The agent themselves ▫️The Texas Real Estate Commission ▫️All of the above
The agent’s sponsoring broker
In order to obtain a real estate license, an applicant must be at least how many years of age…? ▫️18 ▫️20 ▫️21 ▫️22
18
If a real estate salesperson terminates their employment with their sponsoring broker, the salesperson's license is considered what…? ▫️Active ▫️Inactive ▫️Revoked ▫️Suspended
Inactive
Real estate licenses are issued for a period not to exceed how many years…? ▫️1 ▫️2 ▫️3 ▫️4
2
If a person’s license has been expired for more than 6 months, they are required to do which of the following in order to re-activate their license…?
▫️Satisfy the education requirements and retake the State exam
▫️Pay a renewal fee
▫️Pay 2x the renewal fee
▫️They are not allowed to re-apply for a license
Satisfy the education requirements and retake the State exam
The surface of the earth, the area above and below the surface, and everything permanently attached thereto is known as…? ▫️Land ▫️Real Property ▫️Real Estate ▫️Bundle of Rights
Real Estate
The rights in real property to the reasonable use of the air space above the surface of the land is known as…? ▫️Mineral Rights ▫️Air Rights ▫️Land Rights ▫️Riparian Rights
Air Rights
Which of the following is considered a permanent man-made improvement to land…? ▫️Fences ▫️Sheds ▫️Wells ▫️All of the above
All of the above
Items that are installed by a commercial tenant and are removable upon termination of the tenancy are known as…? ▫️Emblements ▫️Trade Fixtures ▫️Chattel ▫️Real Property
Trade Fixtures
Trees and shrubbery that are not cultivated annually are considered…? ▫️Personal property ▫️Chattel ▫️Real property ▫️Emblements
Real Property
Personal property that has become real property by having been permanently attached or adapted to real property is known as a/an…? ▫️Fixture ▫️Trade Fixture ▫️Emblements ▫️Chattel
Fixture
A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease is known as a…? ▫️Cooperative ▫️Condominium ▫️Townhouse ▫️PUD
Cooperative
Who is responsible for selling newly constructed mobile homes…? ▫️Manufactured home dealerships ▫️Real estate brokers ▫️Real estate agents ▫️Mobile home owners
Manufactured home dealerships
Modular homes can typically be built quicker and at a lower cost as compare to homes constructed on-site…?
▫️True
▫️False
True
A cooperative owner owns ……………………. in the cooperative? ▫️Shares of stock ▫️A deed ▫️Title ▫️All of the above
Shares of stock
For tax purposes, real estate taxes can be deducted from personal income…?
▫️True
▫️False
True
Which of the following is a tax deduction a homeowner can take advantage of…? ▫️Mortgage interest payments ▫️Real estate taxes ▫️Loan origination fees ▫️All of the above
All of the above
Tax benefits for homeowners are provided in part to…? ▫️Discourage homeownership ▫️Encourage homeownership ▫️Reduce the length of homeownership ▫️Decrease mortgage payments
Encourage homeownership
The profit realized from the sale of real estate or other investment is known as…? ▫️Capital Gains ▫️Debits ▫️Credits ▫️Deductibles
Capital Gains
A married couple is exempt from paying taxes on capital gains for up to how much in profit if they lived in their house for at least 2 of the last 5 years…? ▫️$100,000 ▫️$250,000 ▫️$500,000 ▫️$1,000,000
$500,000
What is typically covered in a homeowners policy…? ▫️Personal property within the house ▫️The house itself ▫️Liability ▫️All of the above
All of the above
What is the most common homeowners policy found in Texas…? ▫️HOA ▫️HOB ▫️HOC ▫️HOD
HOB
If the replacement cost of an item with a 5 year life span is $100, and it is 4 years old, what is the actual cash value of the item…? ▫️$20 ▫️$50 ▫️$80 ▫️$100
$20
Most homeowners policies do NOT cover which of the following…? ▫️Flood damage ▫️Smoke damage ▫️Fire damage ▫️All of the above
Flood damage
The replacement cost minus depreciation is referred to as…? ▫️Net cash value ▫️Actual cash value ▫️Gross cash value ▫️Effective cash value
Actual cash value
This refers to the party the agent brings to the principal as seller or buyer of the property…? ▫️Client ▫️Customer ▫️Partner ▫️Principle
Customer
An agent with full authority over one property of the principal is known as a…? ▫️General Agent ▫️Special Agent ▫️Specific Agent ▫️Real Estate Agent
General Agent
An agent with limited authority to act on behalf of the principal is referred to as a…? ▫️General Agent ▫️Universal Agent ▫️Special Agent ▫️Specific Agent
Special Agent
Agency that exists as a result of actions of the parties is known as…? ▫️Implied Agency ▫️Express Agency ▫️General Agency ▫️Special Agency
Implied Agency
The real estate agent in a transaction is considered a ………... to his/her broker? ▫️Principal ▫️Client ▫️Customer ▫️Sub-agent
Sub-Agent
The sale of the property results in the ………………………. of the agency relationship?
▫️Beginning
▫️Creation
▫️Termination
▫️The agency relationship is not contingent on the sale of the property
Termination
A seller’s agent is entitled to a commission after…?
▫️The agent finds a buyer who is ready, willing, and able to purchase the property
▫️The buyer closes on the transaction
▫️The seller agrees to pay the commission
▫️All of the above
The Agent finds a buyer who is ready, willing, and able to purchase the property
An agency relationship may be terminated by which of the following…? ▫️Destruction of the property ▫️Expiration of the term of an agency ▫️Mutual agreement of the parties ▫️All of the above
All of the above
A broker will work for a client and with a…? ▫️Principal ▫️Customer ▫️Agent ▫️None of the above
Customer
A broker as a fiduciary owes certain loyalty, which cannot be breached under the rules of agency…?
▫️True
▫️False
True
The ‘C’ in the acronym C.O.A.L.D. stands for which fiduciary duty…? ▫️Consideration ▫️Co-sign ▫️Care ▫️Conditional
Care
The fiduciary duty of care when representing a buyer includes which of the following services…?
▫️Assisting with counter offers
▫️Evaluating terms and conditions from any offers on the property
▫️Disclosing information learned from the seller’s broker
▫️All of the above
Assisting with counter offers
A broker must always place his/her client’s interests above their own. This is an example of what fiduciary duty…? ▫️Disclosure ▫️Loyalty ▫️Care ▫️Accounting
Loyalty
A broker must inform their clients of all known facts related to a transaction. This is an example of what fiduciary duty…? ▫️Disclosure ▫️Loyalty ▫️Care ▫️Accounting
Disclosure
A buyer’s earnest money should be deposited in which of the following…? ▫️The broker’s account ▫️The seller’s account ▫️An escrow account ▫️Any of the above
An escrow account
A seller’s broker is required to tell their client any relationship they may have with the buyer. This is an example of which fiduciary duty…? ▫️Loyalty ▫️Disclosure ▫️Care ▫️Accounting
Disclosure
This reimbursement or compensation paid to someone for a loss already suffered is known as…? ▫️Indemnification ▫️Consideration ▫️Arbitration ▫️Conversion
Indemnification
The exaggeration of the good points of a product, or real property, and the prospects for future rise in value, profits, and growth is known as…? ▫️Redlining ▫️Novation ▫️Puffing ▫️Steering
Puffing
The ‘C’ in the acronym C.I.I.A. stands for…? ▫️Care ▫️Consideration ▫️Confidentiality ▫️Compensation
Compensation
The seller must allow their agent to show the property to prospective buyers. This is an example of what responsibility owed by the seller to the agent…? ▫️Availability ▫️Care ▫️Disclosure ▫️Accounting
Availability
Which of the following is owed to a customer by an agent…? ▫️Reasonable care and skill ▫️Honesty ▫️Disclosure of any known material facts ▫️All of the above
All of the above
Which of the following is owed to a customer by an agent…? ▫️Honesty ▫️Accounting ▫️Availability ▫️Indemnification
Honesty
According to this responsibility, the seller must always provide any known material facts about the property…? ▫️Care ▫️Information ▫️Loyalty ▫️Accounting
Information
A defect known to the seller but not to the buyer, and is not discoverable by ordinary inspections is referred to as a/an…? ▫️Latent Defect ▫️Non-structural Defect ▫️Structural Defect ▫️Insignificant Defect
Latent Defect
This Act protects consumers against false, misleading, or deceptive acts…? ▫️Deceptive Trade Practices Act ▫️Consumer Protection Act ▫️Fair Trade Act ▫️Texas Consumer Act
Deceptive Trade Practices Act
The seller is required to provide buyers with which of the following documents…? ▫️Survey ▫️Property Inspection Report ▫️Seller's Disclosure Notice ▫️Property Condition Report
Seller’s Disclosure Notice
Real estate agents cannot be held liable for any false or misleading information about a property…?
▫️True
▫️False
False
The Texas Deceptive Trade Practices Act defines this individual as someone who seeks, or acquires, by purchase or lease, any goods or services…? ▫️Agent ▫️Principal ▫️Client ▫️Consumer
Consumer
According to the Texas Deceptive Trade Practices Act, businesses with assets exceeding ………….. are not considered consumers? ▫️$1,000,000 ▫️$5,000,000 ▫️$10,000,000 ▫️$25,000,000
$25,000,000
When a buyer is required to examine the property and buy at his/her own risk, it is referred to as…? ▫️Caveat Emptor ▫️Indemnification ▫️Fraud ▫️Calculated Risk
Caveat Emptor
Which of the following is considered misleading under the Texas Deceptive Trade Practices Act…?
▫️Representing that something is new when in fact it is not
▫️Advertising a property when the agent has no intention of actually selling the property
▫️Making false statements about reasons for a sale
▫️All of the above
All of the above
This federal law prohibits all discrimination on the basis of race only…? ▫️Civil Rights Act of 1866 ▫️Civil Rights Act of 1964 ▫️Civil Rights Act of 1968 ▫️Civil Rights Act of 1988
Civil Rights Act of 1866
The channeling of home seekers to a particular area, or areas, on the basis of race, religion, country of origin, or other protected class either to maintain the homogeneity of an area, or to change the character of an area in order to create a speculative situation is known as…? ▫️Redlining ▫️Blockbusting ▫️Steering ▫️Testing
Steering
The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry, or prospective entry of minority persons into the neighborhood is known as…? ▫️Blockbusting ▫️Steering ▫️Redlining ▫️Testing
Blockbusting
The practice of refusing to make loans or otherwise denying financial assistance for housing in a particular area is known as…? ▫️Testing ▫️Blockbusting ▫️Redlining ▫️Steering
Redlining
This federal law prohibits discrimination in sale, rental, financing, or appraisal of housing on the basis of race, color, religion, gender, national origin, handicap, or familial status…? ▫️Civil Rights Act of 1866 ▫️Civil Rights Act of 1964 ▫️Civil Rights Act of 1968 ▫️Civil Rights Act of 1988
Civil Rights Act of 1968
This federal law protects the rights of individuals with physical or mental impairments…? ▫️Americans with Disabilities Act ▫️Civil Rights Act of 1964 ▫️Fair Housing Act of 1968 ▫️Civil Rights Act of 1968
Americans with Disabilities Act
The Federal Fair Housing Act of 1968 was generally ineffective in combating housing discrimination…?
▫️T (True)
▫️F (False)
True
The Housing and Community Development Act was enacted in…? ▫️1964 ▫️1968 ▫️1974 ▫️1988
1974
