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modern real estate principles 2 > unit 5 > Flashcards

unit 5 Flashcards

1
Q

What is the typical employment status for a residential rental locator?

A

Independent contractor

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2
Q

When a warehousing company relocates to a new city, company executives would likely contact a real estate agent specializing in which classification of real estate to assist with finding a suitable building for the warehouse?

A

Industrial

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3
Q

Does a landman need to have a real estate license?

A

No, a landman does not need to have a real estate license.

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4
Q

A real estate attorney employed by a large national clothing store evaluates sites across the United States, searching for ideal locations for new stores. Which type of property is the attorney surveying?

A

Commercial

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5
Q

Richard Reagan is a new licensee with no experience. Richard is sponsored by Janet Jones, a licensed real estate broker. Janet has authorized Richard to engage in all areas of real estate, including property management. Janet’s firm manages several residential properties owned by investors. Richard mishandles a security deposit in a residential leasing transaction. Janet is concerned about the security deposit matter and thereafter requires Richard to take a property management class before he does any property management for the firm. Can Janet do this?

A

Yes, Janet can require Richard to get more education.

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6
Q

Joanne wishes to specialize in REO transactions. She is a new sales agent. Ballast Realty, her sponsoring broker, should ensure that she has knowledge of which of the following to be considered competent to do so?

A

Tax principles

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7
Q

Do real estate educators need to have a broker-level real estate license to teach in Texas?

A

No, a real estate license is not required to be a real estate educator.

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8
Q

Devlin Davis is sponsored by Ready Realty. Devlin is a new licensee with no experience. Devlin, however, is confident in his ability to practice in all areas of real estate. He has convinced Everett Slade, Ready Realty’s designated broker, to authorize him to have no limitations in his practice. Devlin, in his first month as a sales agent, fails to properly handle an option fee in his first transaction, which is a residential sale. Everett tells Devlin that he needs to take additional education and specifies what courses Devlin must take if he wants to keep his unfettered authorization. Can Everett do this?

A

Yes, Everett can require Devlin to get more education.

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9
Q

Davis sells farm and ranch properties in the Texas Hill Country. What is another name for this area of real estate practice?

A

Land sales

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10
Q

What are some basic areas of knowledge that sales agents should have in order to be involved in the farm and ranch land real estate specialty?

A

Basic understanding of agricultural production and farm markets

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11
Q

A license holder who has several years of experience in the industry decided to retire from actively marketing properties. Now, she helps clients choose among the various alternatives involved in purchasing, using, or investing in property. What is her profession?

A

Real estate counselor

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12
Q

In Texas, what organization issues the license to become a landman?

A

None because no license is required.

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13
Q

Donna Martinez is a licensed sales agent sponsored by Hill Country Realty, a licensed brokerage firm in San Marcos, Texas. Donna has been licensed for 12 years, primarily focusing on residential sales and leasing. Donna has decided to advertise on the company website that she is available to do property management, as well as residential sales and leasing. Jenna Lewis is the designated broker for Hill Country. Jenna has informed Donna that she can only do residential sales, although she is aware that Donna is advertising her property management services because Jenna monitors the company website very closely. Is Hill Country responsible for Donna’s actions if one of her property management clients files a complaint against her with TREC?

A

Yes, because Jenna knows about Donna’s property management advertising.

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14
Q

Jane Nieto is a relatively new sales agent sponsored by Triple A Realty. Jane is authorized to do residential and commercial sales and leasing. Jane’s new client, Sonic Drive-Ins, is looking to purchase raw land to build a new restaurant. Triple A should ensure that Jane is competent in which of the following areas to properly represent her client?

a. All of these
b. Local zoning laws
c. Real estate investment principles
d. Real estate financing principles

A

a. All of these

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15
Q

A specialist in negotiating purchase or lease contracts with land or mineral interest owners is

A

a petroleum landman.

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16
Q

According to the National Association of REALTORS®, what percentage of real estate agents specialized in property management in 2016?

A

6%

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17
Q

Stephanie is a new sales agent. She has taken all her core classes but still wants to become competent to do farm and ranch sales. Which of the following isNOTimportant for her to have knowledge of to be competent in farm and ranch sales?

a. Trade fixtures
b. Residential sales
c. Mineral rights
d. Agricultural exemptions

A

a. Trade fixtures

18
Q

Nancy Randolph, an individual broker, sponsors David Jones, a sales agent with six years of experience in residential leasing. Nancy authorizes David to do residential sales and leasing. David makes a series of unfortunate mistakes in his first sales transaction that cause the buyer to forfeit his earnest money when the sale falls through. Nancy pays the amount of the earnest money to the buyer. Is Nancy responsible for David’s actions if a complaint is filed at TREC?

A

Yes, Nancy is responsible because she authorized him to do real estate sales.

19
Q

Joan Riviera is a licensed sales agent sponsored by Coastal Realty, a licensed brokerage firm in Corpus Christi, Texas. Joan has been licensed for 20 years, primarily focusing on residential and commercial sales. She moved to Corpus Christi to live on the beach and to do property management for long-term vacation rentals. She has no experience doing property management, but that is what Coastal Realty specializes in, and she is willing to learn. David Corn is the designated broker for Coastal Realty. The firm advertises that its agents are experts in property management, specifically long-term vacation rentals, but it also does residential sales. David informed Joan in writing that she is only authorized to do residential sales, but promising to revisit the issue after six months if Joan takes some property management classes and shadows other agents doing property management. After taking a class two months after becoming sponsored by Coastal, Joan decides she is ready to do property management, but she makes a huge mistake in her first transaction and the client files a complaint against her with TREC. Is Coastal Realty responsible for Joan’s actions?

A

No, David has limited her to residential sales.

20
Q

What should sales agents understand about the resort industry?

A

Thorough knowledge of time-share sales rules and consumer protection

21
Q

Justin is a new sales agent with a general knowledge of real estate principles. Gulf Properties is his sponsoring broker. Gulf has authorized Justin to do residential sales and leasing. Justin wants to do commercial sales and leasing as well. Gulf should ensure that Justin has knowledge of which of the following to be competent to do commercial sales?

A

Real estate financing principles

22
Q

Doug Jones is a real estate sales agent. He has been licensed for three years and has focused his work entirely in residential sales and leasing. Doug would probably beMOSTcompetent to do which of the following?

a. Property management
b. REO sales
c. Commercial leasing
d. Commercial sales

A

b. REO sales

23
Q

Which of the following real estate‒related disciplines doesNOTrequire licensing (of any type)?

a. Petroleum landman
b. Abstract and title agent
c. Appraiser
d. Home inspector

A

a. Petroleum landman

24
Q

What does a sales agent who specializes in REOs need to have knowledge of?

A

That an REO is a lender-owned property that failed to sell at foreclosure for at least the amount owed by the borrower

25
Q

Expertise in which of the following disciplines is necessary to specialize in property development?

a. None of these
b. Community layout and planning
c. Architecture
d. Property sales

A

a. None of these

26
Q

Brian Belson is a licensed sales agent sponsored by Gulf Realty, a licensed brokerage firm in Galveston. Brian has been licensed for six years. He has handled all kinds of real estate transactions, but for the last 3 years has only done residential sales. Jenna Lewis is the designated broker for Gulf. Jenna has informed Brian that he can only do residential sales. Brian has decided to advertise on his website that he is available to do property management for vacation rentals, as well as residential sales and leasing. Is Gulf responsible for Brian’s actions if one of his property management clients files a complaint against him with TREC?

A

No, Jenna has limited Brian’s authorized activities to residential sales.

27
Q

What aspect of real estate involves giving courses or seminars to real estate professionals and the general public?

A

Education

28
Q

What is a basic requirement to legally participate in property auctions?

A

Must be licensed as an auctioneer

29
Q

Heather Galvez is a licensed sales agent sponsored by Gulf Coast Realty, a licensed brokerage firm in Houston, Texas. Heather is a new licensee, but she knows she want to focus solely on commercial sales and leasing. Justin Romer is the designated broker for Gulf Coast Realty. The firm advertises that its agents are experts in residential and commercial sales. Justin informed Heather in writing that she is authorized to do residential sales until she takes a class that focuses on commercial brokerage. Six months later, Heather takes a commercial sales class and asks Justin to authorize her to do commercial sales. Justin has not yet made a decision, but Heather signs on a new commercial listing with Greenlawn Industrial Development anyway. Justin reviews the listing contract through the normal course of business. Is Gulf Coast Realty responsible for Heather’s actions if Greenlawn files a complaint against her with TREC?

A

Yes, because Justin is aware of the commercial listing contract with Greenlawn

30
Q

A professional estimate of a property’s market value or opinion of value, based on established methods and using trained, professional judgment, is performed by

A

a real estate appraiser.

31
Q

Which of the following real estate specializations matches landlords and tenants?

a. Home builder
b. Rental locator
c. Property management
d. Property developer

A

b. Rental locator

32
Q

Which of the following is aFALSEstatement?

a. Time-share resellers must be licensed if such interests are sold within the state for someone else for a fee.
b. A time-share developer must register a time-share plan with TREC if the plan is located in the state.
c. Time-share sellers do not need to be licensed as a sales agent or a broker if such interests are sold within the state for someone else for a fee.
d. A real estate license is not required if a time-share interest is sold directly by a developer.

A

c. Time-share sellers do not need to be licensed as a sales agent or a broker if such interests are sold within the state for someone else for a fee.

33
Q

In what kind of business does a landman engage?

A

Conducting business activities related to oil exploration

34
Q

Don Martin is a licensed sales agent sponsored by Border Realty, a licensed brokerage firm in El Paso, Texas. Don has been licensed for three years, primarily focusing on residential sales and leasing. He has no experience doing commercial sales, but he wants to do it because he thinks there is more money to be made. Don has informed some of his contacts that he is broadening his base and is available to do commercial brokerage. Dolores Green is the designated broker for Border Realty. The firm advertises that its agents are experts in residential and commercial sales. Dolores originally informed Don in writing that he is authorized to do residential and commercial sales. Six months later, she informs Don that he can no longer do commercial sales because he has found no commercial listings since it started sponsoring him. Is Border Realty responsible for Don’s actions if someone files a complaint against him with TREC?

A

No, Dolores has revoked Don’s authority to do commercial sales.

35
Q

What was the primary specialty of Texas REALTORS®in 2016?

A

Residential sales

36
Q

A sales agent wants to become competent in commercial leasing. Knowledge of which of the following is important?

A

Local zoning laws

37
Q

Daryll Jones is a sales agent sponsored by Diamond Homes Realty, Inc. a licensed real estate broker. Jones procured a listing with the Simpsons to sell their ranch in Boerne, Texas. Gloria Simms, another agent sponsored by Diamond Homes, found a buyer for the ranch, the Davises, who live in Venice Beach, California, and intend to move in before closing if possible. Which of the following isNOTrelevant in this transaction?

A

Trade fixtures

38
Q

Sylvia Gomez is a licensed sales agent sponsored by West Texas Realty, a licensed brokerage firm in Midland, Texas. Sylvia is a new licensee, but she knows she want to focus solely on commercial sales and leasing. Jeannette Thomas is the designated broker for West Texas Realty. The firm advertises that its agents are experts in residential and commercial sales. Jeanette informed Sylvia in writing that she is authorized to do residential sales only for the first year. Six months later, Sylvia takes a commercial sales class and decides that she is now competent to do commercial sales. Although she asks Jeanette to revisit her authorized activity, Jeanette has not yet made a decision. Is West Texas Realty responsible for Sylvia’s actions if a commercial buyer files a complaint against her with TREC?

A

No, Jeanette has limited Sylvia’s to residential sales.

39
Q

Property inspection involves

A

giving an opinion as to the condition of the structural, electrical, mechanical, and plumbing systems and equipment for a parcel of real estate.

40
Q

A real estate agent who is most interested in working with the owners of shopping centers or large office complexes might work in which specialization within the real estate industry?

A

Commercial

41
Q

Which governmental agency regulates escrow officers?

A

The Texas Department of Insurance

42
Q

In Texas, what organization issues the license to become a landman?

A

None because no license is required.

modern real estate principles 2 (12 decks)

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