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
A fair housing complaint should be filed within …………………………... months of the incident? ▫️12 ▫️24 ▫️36 ▫️48
12
Based on the Texas Fair Housing Act of 1989, the Texas Workforce Commission has …………………….. days to investigate a fair housing complaint? ▫️30 ▫️45 ▫️60 ▫️100
100
Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers are known as…? ▫️Redliners ▫️Testers ▫️Detectives ▫️Private Enforcement Officers
Testers
The following cities have ordinances that are equivalent to the federal fair housing laws…? ▫️Austin ▫️Dallas ▫️San Antonio ▫️All of the above
All of the above
Which of the following is a Texas statute that deals with fair housing and discrimination…? ▫️Texas Fair Housing Act ▫️Texas Real Estate License Act ▫️Texas Discrimination Act ▫️Texas Civil Rights Act
Texas Real Estate License Act
HUD prohibits which of the following words in advertising…? ▫️Adults ▫️Singles ▫️Children ▫️All of the above
All of the above
The Equal Credit Opportunity Act was enacted in…? ▫️1964 ▫️1968 ▫️1974 ▫️1988
1974
The Equal Credit Opportunity Act does not apply to…? ▫️Seller financing ▫️Conventional mortgages ▫️FHA mortgages ▫️Balloon mortgages
Seller financing
This department is charged with the regulatory responsibility of the Equal Credit Opportunity Act…? ▫️HUD ▫️Department of State ▫️Consumer Financial Protection Bureau ▫️Attorney General
Consumer Financial Protection Bureau
Under the Community Reinvestment Act, financial institutions must post annual statements, which include…?
▫️Definition of the geographical boundaries of its community
▫️Identify the type of reinvestment credit offered to the community
▫️Comments from the public about the institution’s performance in meeting the community’s needs
▫️All of the above
All of the above
The Community Reinvestment Act was passed in…? ▫️1964 ▫️1968 ▫️1977 ▫️1988
1977
Fair housing complaints cannot be filed through the Texas Workforce Commission in which of the following cities…? ▫️Austin ▫️Corpus Christi ▫️Dallas ▫️All of the above
All of the above
The Texas Workforce Commission cannot take fair housing discrimination complaints if the same complaint is also filed with….? ▫️HUD ▫️US Attorney General ▫️Department of State ▫️TREC
HUD
All buildings built after March 31, 1991 must comply with the design and construction requirements of the…? ▫️International Building Code ▫️US Fire Code ▫️Texas Fair Housing Act ▫️All of the above
Texas Fair Housing Act
Those who file a fair housing complaint with HUD are referred to as…? ▫️Defendants ▫️Prosecutors ▫️Respondents ▫️Complainants
Complainants
Those who HUD fair housing complaints are filed against are referred to as…? ▫️Complainants ▫️Prosecutors ▫️Respondents ▫️Defendants
Respondents
A respondent of a HUD fair housing complaint has how many days to submit a response…? ▫️5 ▫️10 ▫️15 ▫️30
10
What is the primary purpose of real estate licensing laws…?
▫️Protect the public from incompetent or dishonest salespersons and brokers
▫️Raise revenue
▫️Help licensees earn higher commissions
▫️Increase property values
Protect the public from incompetent or dishonest salespersons and brokers
Who administers the Texas Real Estate License Act…? ▫️U.S. Attorney General ▫️National Association of Realtors ▫️Texas Real Estate Commission ▫️Texas Association of Realtors
Texas Real Estate Commission
The Texas Real Estate Commission consists of how many members…? ▫️5 ▫️6 ▫️7 ▫️9
9
How many members of the Texas Real Estate Commission are real estate brokers…? ▫️3 ▫️5 ▫️6 ▫️9
6
The Texas Real Estate Commission is periodically reviewed under this Act…? ▫️Sunset Act ▫️Fair Housing Act ▫️ADA ▫️Texas Licensing Act
Sunset Act
The Texas Real Estate Commission consists of how many non-licensed public members…? ▫️0 ▫️3 ▫️6 ▫️9
3
What is the primary purpose of real estate licensing laws…?
▫️Define minimum standards and qualifications for salespersons and brokers
▫️Raise revenue
▫️Help licensees earn higher commissions
▫️Increase property values
Define minimum standards and qualifications for salespersons and brokers
Which of the following warrants a fee under the Texas Real Estate License Act…?
▫️Real estate salesperson application
▫️Real estate salesperson license renewal
▫️Real estate salesperson State examination
▫️All of the above
All of the above
Any complaints issued to TREC must be submitted within ………... years of the incident? ▫️2 ▫️3 ▫️4 ▫️7
4
The Texas Real Estate Broker Lawyer Committee consists of how many members…? ▫️6 ▫️7 ▫️11 ▫️13
13
Educational institutions that offer real estate licensing courses in Texas must hold a…? ▫️Grant ▫️Certificate of Compliance ▫️Surety Bond ▫️Real estate license
Surety Bond
What is an applicant required to submit as part of the licensing application process…? ▫️Three forms of valid government IDs ▫️Fingerprints ▫️Surety Bond ▫️All of the above
Fingerprints
Which of the following is NOT legally capable of obtaining a real estate license…?
▫️Individuals living in Texas under a Visa
▫️Individuals with a Green Card
▫️Permanent residents of the U.S.
▫️None of the above
Individuals living in Texas under a Visa
If an applicant holds a broker’s license in another state, how many years of active experience must the applicant have in the other state in order to satisfy the experience requirement in Texas…? ▫️1 ▫️2 ▫️3 ▫️4
4
The education requirements for a broker’s application may be waived if the applicant held a broker’s license in the State of Texas within the preceding…? ▫️6 months ▫️1 year ▫️2 years ▫️4 years
6 months
The following exam must be less stringent than the Texas real estate broker’s exam…? ▫️Texas appraisal exam ▫️Texas real estate inspector exam ▫️Texas real estate salesperson exam ▫️All of the above
Texas real estate salesperson exam
The Commission shall notify examinees of their results within how many days after the exam is taken…? ▫️7 ▫️30 ▫️45 ▫️60
30
TREC may renew a real estate license for no more than…? ▫️1 year ▫️2 years ▫️3 years ▫️4 years
2 years
If an individual’s license has been expired for greater than 90 days, but less than 6 months, they may renew their license by paying a fee to the Commission equal to…? ▫️1.5x the required renewal fee ▫️2x the required renewal fee ▫️3x the required renewal fee ▫️The required renewal fee
2x the required renewal fee
A seller may be reimbursed for damages caused by their real estate agent or broker from which of the following…? ▫️The Texas Association of Realtors ▫️The Real Estate Recovery Trust Account ▫️The Texas Escrow Account ▫️The U.S. Recovery Trust Account
The Real Estate Recovery Trust Account
An action for judgment for order of payment from the Real Estate Recovery Trust Account must be made within ………. years of the cause of action? ▫️2 ▫️3 ▫️4 ▫️7
2
As a real estate salesperson, all commissions must be paid to them by the…? ▫️Principal ▫️Client ▫️Sponsoring broker ▫️Customer
Sponsoring broker
A broker who acts as an intermediary in a transaction operates as a…? ▫️Universal agent ▫️General agent ▫️Single agent ▫️Dual agent
Dual agent
Payments into the Real Estate Recovery Trust Account are provided by which of the following…? ▫️License application fees ▫️Certificate of Registration fees ▫️Administrative penalty fees ▫️All of the above
All of the above
David is a real estate agent who referred a client to Andrew, another agent in the office. Andrew agreed to give David a 25% referral fee. Who must pay the referral fee to David…? ▫️David’s sponsoring broker ▫️Andrew ▫️ Client ▫️The Principal
David’s sponsoring broker
A license holder may have their license suspended or revoked if they obtained their license through which of the following means…? ▫️Fraud ▫️Deceit ▫️Misrepresentation ▫️All of the above
All of the above
A licensee may have their license suspended or revoked for which of the following actions…?
▫️Failing to close a transaction within 2 calendar years
▫️Commingling
▫️Changing brokers
▫️ of the above
Commingling
A Certificate of Registration may be suspended or revoked for which of the following actions…? ▫️Unlawful discrimination ▫️Misrepresentation ▫️Fraud ▫️All of the above
All of the above
As an alternative to paying an administrative penalty, the Commission may have a licensee pay which of the following…..? ▫️Refund ▫️Rebate ▫️Commission ▫️Extra renewal fee
Refund
A licensee may have their license suspended or revoked for which of the following actions…?
▫️Acting as a dual agent without full disclosure to all parties involved
▫️Failing to close a transaction within 2 calendar years
▫️Changing brokers
▫️All of the above
Acting as a dual agent without full disclosure to all parties involved
The amount of an administrative penalty is determined by which of the following…?
▫️The seriousness of the violation
▫️ history of previous violations of the licensee
▫️The amount necessary to deter similar future acts
▫️All of the above
All of the above
A legal description is typically ascertained through a…? ▫️Key Plan ▫️Site Map ▫️Survey ▫️All of the above
Survey
Which of the following is a method used to describe property in the United States…? ▫️Government Survey ▫️Metes and Bounds ▫️Lot and Block ▫️All of the above
All of the above
An exact way of describing real estate in a contract, deed, mortgage, or any other document that will be accepted by a court of law is known as a…? ▫️Legal Description ▫️Site Description ▫️Plot Description ▫️Bench Mark
Legal Description
A monument used to establish the elevation of the point, usually relative to Mean Sea Level, is known as a…? ▫️Meridian ▫️Base Line ▫️Bench Mark ▫️Range
Bench Mark
A method of specifying the location of a parcel of land using prime meridians, base lines, standard parallels, guide meridians, townships and sections is known as the…? ▫️GPS System ▫️Metes and Bounds System ▫️Government Survey System ▫️Lot and Block System
Government Survey System
A strip or column of land six miles wide, determined by a government survey, running in a north-south direction, lying east or west of a principal meridian is known as a…? ▫️Plat ▫️Block and Lot ▫️Township ▫️Range
Range
A series of government survey lines running north and south at six-mile intervals starting with the principal meridian and forming the east and west boundaries of townships are known as…? ▫️Range Lines ▫️Bench Lines ▫️Datum Lines ▫️Plot Lines
Range Lines
Land in Texas was originally identified by…? ▫️Metes and Bounds ▫️Lot and Block ▫️Government Survey ▫️Townships
Metes and bounds
Which of the following is an example of a monument…? ▫️A tree ▫️A post ▫️A stream ▫️All of the above
All of the above
The Mean Sea Level at New York Harbor is known as a…? ▫️Monument ▫️Datum ▫️Bench Mark ▫️Reference Point
Datum
1 acre is equal to…? ▫️1,000 sq.ft. ▫️5,280 sq.ft. ▫️23,040 sq.ft. ▫️43,560 sq.ft.
43,560 sq. ft.
½ of a section is equal to how many acres…? ▫️100 ▫️320 ▫️500 ▫️640
320
Which of the following is shown on an improvement survey…? ▫️Sidewalks ▫️Fences ▫️Buildings ▫️All of the above
All of the above
A township consists of how many sections…? ▫️6 ▫️36 ▫️100 ▫️140
36
When a survey describes the structures on a property in addition to the land itself, it is known as a…? ▫️Improvement Survey ▫️Site Plan ▫️Dimensional Survey ▫️Plot Map
Improvement Survey
A contract that has been put into words, either spoken or written is known as a/an…? ▫️Express Contract ▫️Implied Contract ▫️Note ▫️Deed
Express Contract
Real estate agents use which of the following contracts…? ▫️Express Contracts ▫️Listing Contracts ▫️Buyer Representation Agreements ▫️All of the above
All of the above
When you give your keys to a valet, you assume that the valet will park your car in exchange for a fee. This is because a/an ………………. contract was created between you and the valet? ▫️Express ▫️Voidable ▫️Implied ▫️Exclusive
Implied
An agreement that has not been put into words, but is implied by the actions of the parties is known as a/an…? ▫️Implied Contract ▫️Express Contract ▫️Deed ▫️Note
Implied Contract
A contract in which each party promises to do something is referred to as a…? ▫️Unilateral Contract ▫️Bilateral Contract ▫️Executed Contract ▫️Voided Contract
Bilateral Contract
This contract is formed only if another party performs the requested act…? ▫️Bilateral Contract ▫️Executed Contract ▫️Unilateral Contract ▫️Voided Contract
Unilateral Contract
A contract that has no force or effect is referred to as a/an…? ▫️Void Contract ▫️Valid Contract ▫️Executory Contract ▫️Executed Contract
Void Contract
A listing contract exists between a seller and the…? ▫️Real estate broker ▫️Real estate salesperson ▫️Customer ▫️Any of the above
Real Estate Broker
Anything given or promised by a party to induce another to enter into a contract is known as…? ▫️Conversion ▫️Consideration ▫️Novation ▫️Assignment
Consideration
This is a condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time…? ▫️Assignment ▫️Acceleration ▫️Time is of the Essence ▫️Novation
Time is of the Essence
A meeting of the minds between two parties is also known as…? ▫️Conversion ▫️Novation ▫️Consideration ▫️Offer and acceptance
Offer and acceptance
In addition to the essential elements of a valid contract, real estate contracts must include which of the following…?
▫️An accurate legal description of the property
▫️Proof of funds
▫️The signature of the real estate brokers involved in the transaction
▫️All of the above
An accurate legal description of the property
A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a/an…? ▫️Assignment ▫️Novation ▫️Conversion ▫️Offer and acceptance
Assignment
If one of the parties to a contract wants to withdraw without terminating the contract, which of the following can be used…? ▫️Novation ▫️Acknowledgement ▫️Assignment ▫️Conversion
Assignment
Those to whom property or interests therein shall have been transferred are known as…? ▫️Trustors ▫️Trustees ▫️Assignees ▫️Assignors
Assignees
One who assigns or transfers property is known as a/an…? ▫️Assignor ▫️Assignee ▫️Trustor ▫️Trustee
Assignor
A violation of the terms or conditions of a contract without a legal excuse is known as a…? ▫️Discharge ▫️Conversion ▫️Breach ▫️All of the above
Breach
Damages benefiting the non-defaulting party as a result of a default of a contract are known as…? ▫️Liquidated Damages ▫️Consideration ▫️Novation ▫️Punitive Damages
Liquidated Damages
A contract by which a buyer and seller agree to the terms of a sale is known as a…? ▫️Listing contract ▫️Sales contract ▫️Bill of Sale contract ▫️Listing agreement
Sales Contract
An interest in real estate such that a court will take notice and protect the owner’s rights is known as…? ▫️Legal Title ▫️Secured Title ▫️Protected Title ▫️Equitable Title
Equitable Title
A down payment made by a purchaser of real estate as evidence of good faith is known as…? ▫️Earnest money deposit ▫️Escrow money ▫️Interest payment ▫️Binding deposit
Earnest money deposit
The unlawful appropriation of another’s property or earnest money deposit is known as…? ▫️Commingling ▫️Conversion ▫️Steering ▫️Redlining
Conversion
Building codes are an example of…? ▫️Police Power ▫️Novation ▫️Escheat ▫️Eminent Domain
Police Power
The taking of private property for public use, with fair compensation to the owner is known as…? ▫️Escheat ▫️Novation ▫️Condemnation ▫️Police Power
Condemnation
Real property ownership rights in the United States are based on this legal system…? ▫️Feudal system ▫️Allodial system ▫️Spanish system ▫️European system
Allodial system
When the government exercises its power of eminent domain, the owner…?
▫️Will not be compensated
▫️Must be fairly compensated
▫️Will not be notified
▫️Must forfeit the property within 14 days
Must be fairly compensated
An estate of indeterminable duration is known as a…? ▫️Leasehold Estate ▫️Freehold Estate ▫️Land Estate ▫️All of the above
Freehold Estate
Absolute ownership of real property is considered this type of estate…? ▫️Leasehold estate ▫️Land Estate ▫️Fee simple estate ▫️Estate in reversion
Fee simple estate
An inheritable estate in land providing the greatest interest of any form of title is known as a/an…? ▫️Leasehold estate ▫️Estate in Remainder ▫️Fee simple absolute ▫️Fee simple determinable
Fee simple absolute
A freehold estate created for the duration of the life, or lives, of certain named persons is known as a…? ▫️Life estate ▫️Leasehold estate ▫️Fee simple estate ▫️Land estate
Life estate
A legal life estate in land that is owned and occupied as a family home is known as a…? ▫️Easement ▫️Reversionary interest ▫️Homestead ▫️Fee simple determinable
Homestead
In Texas, what is the limitation on homesteads in urban areas…? ▫️10 acres ▫️15 acres ▫️50 acres ▫️100 acres
10 acres
In Texas, what is the limitation on homesteads of a family in rural areas…? ▫️10 acres ▫️50 acres ▫️100 acres ▫️200 acres
200 acres
A claim, charge, or liability that attaches to, and is binding on real estate is known as a…? ▫️Prescription ▫️Rescission ▫️Encumbrance ▫️Novation
Encumbrance
A limitation on the use of real property is known as a…? ▫️Restriction ▫️Prescription ▫️Rescission ▫️Novation
Restriction
A claim against a property that provides security for the repayment of a debt or an obligation of the property owner is known as a/an…? ▫️Easement ▫️Grant ▫️Prescription ▫️Lien
Lien
This type of easement exists when a landowner has no access to roads and is landlocked…? ▫️Easement by necessity ▫️Easement appurtenance ▫️Easement in gross ▫️Easement by prescription
Easement by necessity
Restrictive covenants are typically found in which of the following documents…? ▫️Mortgage ▫️Plot map ▫️Deed ▫️All of the above
Deed
A lien on all the property of a debtor is referred to as a…? ▫️Specific lien ▫️General lien ▫️Universal lien ▫️Special lien
General lien
A lien that attaches to one specific property only is referred to as a…? ▫️General lien ▫️Universal lien ▫️Specific lien ▫️Special lien
Specific lien
The order in which liens are given legal precedence or preference is known as…? ▫️Assessment of liens ▫️Lien ladder ▫️Rank of liens ▫️Priority of liens
Priority of liens
Which of the following acronyms describes the various ways a lien can be created…? ▫️VISE ▫️CATTL ▫️PETE ▫️OLD CAR
VISE
Any lien placed on property with consent of, or as a result of, the voluntary act of the owner is referred to as a/an…? ▫️Voluntary lien ▫️Involuntary lien ▫️Subordinate lien ▫️Owner lien
Voluntary lien
A form of action taken to impose a tax is known as a…? ▫️Tax lien ▫️Tax proposal ▫️Tax levy ▫️Eminent domain
Tax Levy
The amount of money needed by a municipality to meet budgetary requirements divided by the taxable assessed and nonexempt value of all real property within that jurisdiction is known as the…? ▫️Tax levy ▫️Yield rate ▫️Cap rate ▫️Tax rate
Tax Rate
Which of the following is an example of a taxing entity…? ▫️Water districts ▫️Hospital districts ▫️School districts ▫️All of the above
All of the above
If a property is assessed at $100,000, what would be the amount of taxes owed assuming a tax rate of $1.50 per 100 dollars of value…? ▫️$150 ▫️$1,500 ▫️$15,000 ▫️$100,000
$1,500
A specific lien that gives security to persons or companies who perform labor or furnish material to improve real property is known as a…? ▫️Judgment lien ▫️General lien ▫️Mechanic’s lien ▫️Voluntary lien
Mechanic’s Lien
A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of the judgment is known as a…? ▫️Mechanic’s lien ▫️Voluntary lien ▫️Judgment lien ▫️Tax lien
Judgment lien
Mortgage lenders typically require a…? ▫️Involuntary lien ▫️General lien ▫️Tax lien ▫️Preferred lien
Preferred lien
An addition to property through the efforts of man or by natural forces is known as…? ▫️Accretion ▫️Accession ▫️Erosion ▫️Avulsion
Accession
The increasing in land area resulting from the deposit of soil by the natural action of the water is known as…? ▫️Accretion ▫️Avulsion ▫️Erosion ▫️Accession
Accretion
The gradual increase of earth on a shore of an ocean or bank of a stream resulting from the action of the water is known as…? ▫️Accretion ▫️Erosion ▫️Avulsion ▫️Alluvium
Alluvium
When someone is the sole owner of a property, they are said to have this type of ownership…? ▫️Joint Tenancy ▫️Community Property ▫️Severalty Ownership ▫️Tenancy in Common
Severalty Ownership
Real property can be owned in which of the following forms…? ▫️Severalty ▫️Co-ownership ▫️In trust ▫️All of the above
All of the above
Which of the following is an example of co-ownership…? ▫️Tenancy in common ▫️Joint tenancy ▫️Community property ▫️All of the above
All of the above
Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship is known as…? ▫️Joint tenancy ▫️Tenancy in common ▫️Community property ▫️Severalty ownership
Joint tenancy
One entitled to the benefit of a trust is referred to as the…? ▫️Devisee ▫️Beneficiary ▫️Trustor ▫️Primary owner
Beneficiary
An agreement where the trustee holds legal possession of a fund or assets that belong to another person, the beneficiary, and it is created while the person is alive is referred to as a/an…? ▫️Living partition ▫️Escheat ▫️Living escrow ▫️Living trust
Living Trust
An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it is referred to as a…? ▫️Corporation ▫️Partnership ▫️LLC ▫️Limited Partnership
Corporation
In this type of arrangement, partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership’s obligations…? ▫️LLP ▫️Corporation ▫️General partnership ▫️LLC
General Partnership
This type of listing is given to only one broker who is entitled to the commission if the broker or any agent of the listing broker effects a sale but imposes no commission obligation on the owner who sells the property to a person who was not interested in the property by efforts of the listing broker or an agent of the listing broker…? ▫️Non-Exclusive Agreement ▫️Net Listing ▫️Exclusive Agency Agreement ▫️Open Listing
Exclusive Agency Agreement
A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is referred to as this type of listing…?
▫️Net Listing
▫️Open Listing
▫️Non-Exclusive Listing
▫️Exclusive Right to Sell Listing Agreement
Exclusive Right to Sell Listing Agreement
An open listing is also referred to as a/an…? ▫️Non-Exclusive Listing ▫️Net Listing ▫️Exclusive Agency Agreement ▫️Exclusive Right to Sell Agreement
Non-Exclusive Listing
What is the name of the employment contract between a client and an agent…? ▫️Listing Contract ▫️Purchase Contract ▫️Sales Contract ▫️Escrow Contract
Listing Contract
Which of the following listing contracts serves as a unilateral contract…? ▫️Open listing ▫️Exclusive Agency Agreement ▫️Exclusive Right to Sell Agreement ▫️All of the above
Open listing
Which of the following will most likely make it more difficult to market a property…?
▫️Listing the property on the MLS
▫️Notifying other agents in the office about the property
▫️Using a ‘For Sale’ sign in the front yard
▫️Not listing the property on the MLS
Not listing the property on the MLS
Sub-agents in a transaction are typically compensated by which of the following means…? ▫️A percentage of the sales price ▫️A percentage of the listing price ▫️A percentage of the appraised value ▫️A percentage of the assessed value
A percentage of the sales price
If a broker acts as an intermediary in a transaction, they also serve as a…? ▫️Single agent ▫️Dual agent ▫️General agent ▫️Universal agent
Dual agent
When is a broker entitled to a commission…?
▫️After they find a buyer who is willing and capable of paying all cash
▫️After they find a ready, willing, and able buyer
▫️After they find a buyer who is willing to buy and qualified to obtain a mortgage
▫️All of the above
All of the above
What is a listing broker allowed to disclose to a buyer…?
▫️Confidential information about the seller
▫️The lowest price the seller is willing to accept
▫️Material facts about the property
▫️All of the above
Material facts about the property
Insurance companies may deny coverage on a property if which of the following occurs…?
▫️The property is occupied full-time
▫️The property will remain vacant
▫️The property is mortgaged
▫️The property is burdened by an easement
The property will remain vacant
If an additional contract item does not belong in the Special Provisions, it will most likely get listed in the…? ▫️Contract addendum ▫️Contract bulletin ▫️Contract notice form ▫️HUD-1 form
Contract addendum
If a seller breaches the contract, and the sales price is not determinable, the broker’s compensation should be based on which of the following…? ▫️A percentage of the assessed value ▫️A percentage of the market value ▫️A percentage of the listing price ▫️A percentage of the investment value
A percentage of the listing price
If a dispute between the seller and the agent cannot be resolved through negotiations, the dispute should be resolved using the following method…? ▫️Civil Action ▫️Litigation ▫️Arbitration ▫️Mediation
Mediation
Which of the following may appear on a survey…? ▫️Improvements ▫️Driveways ▫️Fences ▫️All of the above
All of the above
Lead based paint can be found in buildings built prior to…? ▫️1964 ▫️1978 ▫️1988 ▫️1991
1978
This document gets completed by the seller and lists the condition of various items and appliances in the house…? ▫️HUD-1 Form ▫️Seller Disclosure Notice ▫️Property Condition Disclosure ▫️Personal Property Notice
Seller Disclosure Notice
The T-47 Residential Real Property Affidavit verifies that which of the following documents is up to date…? ▫️Property survey ▫️Seller Disclosure Notice ▫️Floor plans ▫️Site Map
Property survey
Sarah is in the process of selling her house. What must Sarah complete, which states the condition of various items and appliances in the house…? ▫️Seller Disclosure Notice ▫️HUD-1 Form ▫️Property Condition Disclosure ▫️Personal Property Notice
Seller Disclosure Notice
