Missed Questions on TX Practice Tests Flashcards
Texas requires a salesperson to ______ if they wish to sell their personal real estate.
Disclose, in writing, their intent to sell their own property
How much can a licensed salesperson pay a customer who refers a buyer to that salesperson?
A salesperson cannot pay an unlicensed customer
Texas requires earnest money to be deposited into a trust account within ______ days.
2 business days
What is the penalty for participating in real estate transactions without a license? A. Administrative penalty B. A complaint from TREC C. Cease and desist D. All of the above
D. All of the above
Up to one year of jail time and a fine can be administrated as well as an administrative penalty from TREC of up to $5,000.00. TREC can also issue a cease and desist order and can obtain injunctive relief if a civil court case is pursued.
How long does a broker need to keep real estate and financial documents?
4 years
How many hours of core real estate classes does a licensee need to complete to renew their license?
18 hours
A broker needs to complete 18 hours of continuing education. 8 of those hours are TREC legal updates I and II and 10 hours are elective continuing education
The ______ allows a buyer to terminate a contract and collect the earnest money if the lender determines the property fails to satisfy the underwriting requirements.
Third party financing addendum
This addendum is not required to be put into a contract but if the lender determines that the appraisal of the property does not satisfy the lender’s underwriting requirements i.e. the appraisal is too low, then the contract can be terminated.
How much errors and omissions insurance (E&O) does the state of Texas require a real estate broker to have?
E&O is not required
When should a buyer have the survey pulled and get a title insurance property by the seller?
Within 20 days of the execution of the purchase and sale contract
15. Which is not a layer of the Texas survey system? A. Texas RRC district layer B. Texas bay tracts layer C. Texas coast layer D. Texas land survey layer
C. Texas coast layer
The three layers are the Texas RRC district layer which contains the geographic boundaries for the 12 railroad districts, the Texas bay tracts layer represents the survey areas present in bays along the east coast and the Texas land survey layer which splits the state into areas which comprise of tracts, sections and labors.
What is the purpose of the Texas Real Estate Licensing Act (TRELA)? A. Establish rules that licensees need to follow in order to obtain and maintain a license
B. List penalties for violations of the license act
C. Protect brokers from unfair activities by competitors
D. All of the above
D. All of the above
What is the statute of limitations for a breach of contract in Texas?
4 years
If a real estate trust account collects interest, the interest Is kept by?
The broker or the principal
The broker can keep the interest if the principal has a signed agreement authorizing the broker to keep the interest. If the principal does not agree to the above terms, then the interest must be treated in the same manner as the deposited money.
The final signature on a purchase and sales agreement is the ______.
Seller
Where does TREC hold hearings?
TREC Headquarters
The state of Texas does not have a ______. Which states a home cannot be redeemed once it has been foreclosed?
Statutory right of redemption
Texas allows a property to be redeem prior to a foreclosure sale but does not allow this after the foreclosed home has been sold. The statutory right of redemption allows borrowers to reclaim property after a sale by paying the foreclosure sale price or the full amount owed to the bank and any additional charges.
Which cannot be deducted from a property owner’s personal home for tax purposes?
Depreciation
Depreciation cannot be deducted from a property owner’s personal home for tax purposes. Property taxes paid, interest paid, and itemized expenditures can be deducted.
______ states that when the words “grant’ or “convey” are used in a deed, the seller promises the property is free from encumbrances.
Texas Property Code
A one to four family residential contract is not used for the resale of which type of property?
Sales involving condominiums, new homes being sold by a builder, and farm and ranch properties cannot use the one to four family residential contract.
Which statement is true about eviction?
A. A landlord must legally terminate the tenancy prior to evicting a tenant
B. A landlord needs to file an eviction lawsuit if the tenant does not move out after receiving a written notice
C. A tenant can decide to fight an eviction
D. All of the above
All of the above
Latent defects
faults that could not have been discovered by a reasonably thorough inspection prior to the sale. Leaks in the ceiling and other toxic conditions are considered latent defects.
What is the statute of limitations for the Texas Deceptive Trade Practices Act?
2 years
Texas does not practice ______, which is when a subagent owes the same fiduciary duties as an agent, to the agent’s principal?
Subagency
A penalty for violating TREC rules and regulations must be paid within how many days?
30
What is the 90-core hour requirement that needs to be met within the first two years of licensing?
Salesman’s annual education
What is a nonresident broker?
A broker with a Texas broker’s license but with no home or office in Texas
When a person dies without a will, ______ laws govern how property passes.
Intestate succession
How many classroom education hours does a broker need to be licensed?
900
Texas Water Code requires _____ if property is located in a Certificated Service Area of a Utility Service Provider.
A disclosure to the buyer
Texas law allows a minimum of ______ days to cure a default of a foreclosed property before notice of sale can be given.
20 days
Which law states that competing brokers cannot agree to set sale conditions, fees, or management rates?
Sherman Antitrust Act
In the state of Texas, a ______ is most commonly used to secure a loan when purchasing a home or other real property, similar to mortgages used in other states.
Deed of Trust
Which statement is not true about becoming a certified residential property manager in Texas.
A. Must be a registered member of the Texas Association of Realtors
B. Must take 30 hours of property management education
C. Must complete the Texas Residential Leasing Specialist (TRLS) certification
D. All of the above statements are true
B. Must take 30 hours of property management education
A mold remediator must give the property owner a certificate of mold remediation within ______ days.
10 days
What is a devisee?
The person who is receiving the real property as stated in a will
Which is an example of a reasonable modification?
Lowering kitchen cabinets
Lowering kitchen cabinets, making structural modifications so disabled people could enjoy the units and installing grab bars are examples of reasonable modifications. A landlord is required to allow a tenant to make these modifications at the tenant’s expense
A(an) ______ allows a landlord to adjust rent under specific economic conditions.
Escalation clause
When is the termination option fee in the 1-4 Family Contract due?
by midnight of the third calendar day after the effective date of the contract
When a broker posts pictures of other broker’s listings on his website, what is required?
written permission
What is an example of something that could be entered in paragraph 11?
the information from any TR addendum
What are the requirements to become a licensed broker in Texas?
900 hours of education, 3600 points and 4/5 years active in real estate salesperson licensure
Which association represents title insurance?
CERCLA
Which law was passed to regulate credit bureaus?
Fair Credit Reporting Act
What is the name given to non-monetary investment?
Sweat equity
This is the non-monetary equity that owners contribute into the business or property. In this case, sweat equity is the amount of effort an owner puts into a property in order to increase its value.
What type of arrangement allows a borrower to negotiate a lower interest rate?
Buydown
This is a mortgage-financing technique that allows a borrower to negotiate lower monthly payment rates. It usually involves the seller making payments to the lending institution to reduce monthly payment rate of the buyer. As a result, the purchase price goes up.
What is the name given to describe the period a lender must keep a loan offer open to the borrower?
Lock-in period
The period usually 30 - 60 days within which a lender is required to keep a loan offer open. This gives the borrower enough time to prepare for closing while the lender is processing the loan. A lock in period protects the borrower from losses incurred throughout the repayment of the loan caused by interest rates during processing of the loan
Which real estate metric is found by dividing cash flow by the deposit and settlement costs?
Cash on cash return
Only true for a cash investment and does not take into account loan investments
What clause can prohibit having loud parties?
House rules
Which board committee is responsible for maintaining the aesthetic view of a town?
Architectural Review Board
What is the measurement used to show the volatility of a market?
Absorption rate
What is the name given to the long beams that span the piers of a foundation offering support to the floor or ceiling?
Joists
Conveyance
aka sale deed is a legally binding contract that transfers all ownership rights from the seller to the buyer. it usually states the agreed on price, the date of the transaction and the obligations of the parties involved
Leverage
refers to money that has been borrowed to finance an investment property. the leverage concept works best when rent and property values are on the rise. monthly mortgage payments for the rental property become constant which results in a rise in profits
What is the term used to describe a building that is separate from the main house?
Accessory building
What is the term used to describe a building that is separate from the main house?
Accessory building
designated broker
a non-officer of a licensed corporation named to conduct real estate activities on its behalf
applications who have met all requirements will receive what kind of license?
inactive license
