Modern Real Estate Practice in Texas 18E Principles I Exam Flashcards
Courses for the renewal of an active real estate license are called
Continuing Education (CE)
What is the maximum amount that the Commission will pay from the real estate recovery trust account for claims against any one license holder, until the account has been repaid in full by the license holder?
$100,000
Which is owned by the tenant? A) Fixture B) Trade Fixture C) None of These or D) Trade Article
Trade fixture
Which of the following terms refers not only to the surface of the earth but also below to the center of the earth, above to infinity, and natural things permanently attached but does NOT refer to artificial things permanently attached? A) Property B) Land C) Real Estate D) Real Property
Land
If the court learns that the seller placed a sign that said “Not Included” on the stove every time a buyer looked at the property, the court will consider which of the following in determining whether the stove is a fixture, absent a written agreement? A) Intention of the parties B) Adaption of the item C) Method of attachment D) Value of the Stove
A) Intention of the parties
What type of estate is complete ownership and exists for an unlimited time?
Fee simple
If a condition of ownership is violated, title to the subject property automatically reverts to the original owner in:
A determinable fee estate
An urban homestead is limited to a lot or lots NOT to exceed how many acres?
10
The method used to describe real estate by distance, direction, and boundaries is
The metes-and-bounds method
Which equals one square mile or 640 acres? A) Section B) Chain C) Township D) Mile
A) Section
Under the federal Fair Housing Act, real estate organizations, such as multiple listing services, may NOT do which because someone is in a protected group? A) Refuse membership or put conditions on participation B) Ask the age of prospective clients C) All of these D) Discriminate in the listing or sale of commercial properties
A) Refuse membership or put conditions on participation
Which aspect of the Canons of Professional Ethics and Conduct requires the broker or sales agent to be informed on market conditions and national, state, and local developments affecting the real estate business?
Competency
A complain of discrimination brought under the Texas Fair Housing Act can be filed with the US Department of Housing and Urban Development or with:
The Texas Workforce Commission Civil Rights Division
An aggrieved person who believes illegal discrimination has occurred may file a complaint within what time frame following the alleged discriminatory act?
One year
Appurtenant easement rights transfer with:
the dominant tenement
An owner sells part of his land that has no access to a public road but does have access over his remaining land. This creates an easement by:
necessity
When there are two or more liens on a property, the order in which the liens will be satisfied when the property is sold will be determined by:
the priority of the liens
Which of the following may be a natural object, such as a tree or boulder, or an artificial object, such as a steel rod or a stake driven into the ground? A) Vara B) None of these C) Benchmark D) Monument
D) Monument
It is unlawful for a person to act in the capacity of or claim to be a real estate broker without first
obtaining a license from the Texas Real Estate Commission
A real estate broker’s license is NOT required of persons who
advertise and lease their own properties
The Texas Real Estate Commission is composed of:
nine members, six of whom are brokers and three of whom are lay members, each appointed by the governor with senate approval
Before people can act in the capacity of or represent themselves as real estate brokers, they must first
obtain a license from the Texas Real Estate Commission
A license holder must use the earnest money contract forms promulgated by the Commission unless
an attorney prepares the forms and the property owner requires their use
Which of the following is NOT a violation for which the Texas Real Estate Commission (TREC) may suspend or revoke a license or take other disciplinary action? A) Failing to deposit earnest money in a title company or in a trust account within a reasonable time B) Failing to make clear to all parties to a real estate transaction the party for whole the license holder is acting C) Failing to advise a buyer or a seller regarding the validity of title to real estate D) Failing to disclosure to a potential buyer a defect known to the license holder
C) Failing to advise a buyer or a seller regarding the validity of title to real estate
A licensed real estate broker is not authorized to practice law unless the broker also is a licensed attorney. Which activity is permitted to be performed by a real estate license holder?
Filling in the blanks of a contract form promulgated or approved for that use by the Texas Real Estate Commission (TREC)
Which would NOT be considered a violation of antitrust laws? A) A local association of apartment managers decides to charge a set rate for management services. B) Brokers throughout the city set their commission rates unilaterally without consulting with competitors C) Salespeople Joe and Emma Marie, working on behalf of two local firms, agree that Joe should seek listings only from the east side of town and Emma Marie should seek listings only from the west side of town D) Brokers representing the Temple, ABC, and All-American Property Management companies decide to deescalate their current price way by charging more uniform rates
B) Brokers throughout the city set their commission rates unilaterally without consulting with competitors
It is the duty of an agent to disclose to the principal every step taken in the transaction of the principal’s business because
The agent has a fiduciary obligation to the principal
Misleading or deceptive practices according to the Deceptive Trade Practices Act (DTPA) include all of the following except: A) stating that a property is being sold “as is” B) misrepresenting the authority of an agent to negotiate the final terms of a sales contract C) making false statements of fact concerning the reasons for a price reduction D) advertising a property with no intention of selling the property as advertised
A) stating that a property is being sold “as is”
The Deceptive Trade Practices Act (DTPA) does NOT apply to the actions of real estate agents when an agent A) pursues an unconscionable action or course of action that cannot be characterized as advise, judgment, or opinion B) makes an exaggerated or unsubstantiated statement of value given as advise, judgment, or opinion when selling real estate C) makes an express misrepresentation of a material fact that cannot be characterized as advice, judgment, or opinion D) fails to disclosure information concerning goods or services known at the time of the transaction if such failure to disclosure was intended to induct the consumer into a transaction the consumer otherwise would not have entered had the information been disclosed.
B) makes an exaggerated or unsubstantiated statement of value given as advice, judgment, or opinion when selling real estate
A rea; estate agent tells a seller during a listing presentation that the firm’s real estate commission is in line with those of other real estate firms in the area. The broker may
be guilty of price-fixing
A sales agent has which agency relationship with the sponsoring broker? A) No agency relationship B) A universal agency relationship C) a special agency relationship D) a general agency relationship
D) A general agency relationship
A consumer has sent a complaint to the Texas Real Estate Commission (TREC) against a real estate agent, claiming a violation of the Canon of Integrity. The agent is accused of
misrepresenting the condition of the property by omitting pertinent facts
Which action is permitted under the federal Fair Housing Act? A) refusing to sell a home to a minority individual because of a poor credit history B) Advertising property for sale only to a special group C) showing a member of a minority group only those properties located in minority areas D) Telling an individual that n apartment has been rented when it has not
A) Refusing to sell a home to a minority individual because of a poor credit history
Which law prohibits all discrimination based on race in any real estate transaction without exception?
The Civil Rights Act of 1866
The federal Fair Housing Act of 1968
prohibits discrimination in residential housing based on race, color, national origin, and religion
Which family is NOT protected under the familial status provisions of the Fair Housing Act? A) A 55 year old father, a 40 year old mother, and 17 year old son who want to purchase a home in an age-restricted adults-only community B) All of these are protected classes C) An 18 year old pregnant female who wants to rent an apartment D) A 23 year old single father who has custody of a 3 year old son and wants to rent a home
A) A 55 year old father, 50 year old mother, and 17 year old son who want to purchase a home in an age-restricted adults only community
“I hear they’re moving in. There goes the neighborhood! Better put your house on the market before values drop!” This is an example of
blockbusting
Where are subdivision plats filed?
In the county clerk’s office of the county in which the land is located
The act of channeling homeseekers to a particular area either to maintain or to change the character of a neighborhood is
steering
The priority of a mechanic’s lien is established from the date
work has begun or materials were delivered, in whole or in part
Randy has constructed a fence that extends 1 foot over his lot line onto the property of a neighbor. The fence is an example of
an encroachment
Encumbrances on real estate
may include liens, easements, and deed restrictions
Which of the following BEST refers to the type of lien that affects all real and personal property of a debtor? A) General lien B) Involuntary lien C) Specific lien D) Statutory lien
A) general lien
The right of defaulted taxpayers to recover their property before its sale for unpaid taxes is the
Equitable right of redemption
Which of the following is (are) considered a lien on real estate? A) Unpaid mortgage loans B) an encroachment C) an attachment D) Easement running with the land
A) unpaid mortgage loans
Which of the following is NOT included in the bundle of legal rights regarding real property? A) Right to control B) Right of exclusion C) Right of first refusal D) Right of disposition
Right of first refusal
What is a section of land?
640 acres
An acre consists of how many square feet?
43,560
