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Principles of Real Estate 1- Champions School of
Real Estate
1. a freeway has made commuting to a distant suburban neighborhood easier, resulting in an increase in new
home sales. This increase in sales is an example of the economic characteristic of
A.) scarcity
B.) Fixity
C.) Situs
D.) Modification: D.) Modification
2. The supply of Real Estate is affected by
A.) Land cost
B.) Building codes
C.) Government regulations
D.) All of these: D.) All of these
3. The least important factor affecting demand for real estate is:
A.) Population Growth
B.) Personal Preference
C.) Availability of Credit
D.) Transportation Systems: B.) Personal Preference
4. A lawsuit was tried on a real estate matter. The judge ruled in the case, citing the decision of a judge in a
similar case that was tried ten years ago. The judges decision in the case was most likely based upon:
A.) Statutory Law
B.) Civil Law
C.) Common Law
D.) Local ordinance: C.) Common Law
5. A license holder was tried in a state district court on a complaint arising from a real estate transaction. The
court ruled that, among other transgres- sions, the defendant had violated the Texas Real Estate License Act. This decision of the judge was based upon:
A.) Statutory law
B.) Civil Law
C.) Common Law
D.) Local Ordinance: A.) Statutory Law
6. RMLOs in Texas are licensed through:
A.) Texas Real Estate Commission
B.) National Mortgage Bankers Association
C.) Texas Department of Savings and Mortgage Lending
D.) Texas savings and loan board: C.) Texas Department of Savings and Mortgage Lending
7. A Freeway has made commuting to a distant suburban neighborhood easier, resulting in an increase in new
C.) Accession
D.) Descent: C.) Accession
11. Effective in 1976, manufactured homes have been built according to a building code administered by:
A.) Local building departments
B.) State code enforcement
C.) HUD
D.) FHA: C.) HUD
12. Homes that are built in sections according to local building codes and assembled on the job site are
known as:
A.) Trailers
B.) Mobile Homes
C.) Modular Homes
D.) Site built Homes: C.) Modular Homes
13. Manufactured home dealers and sales people in Texas are licensed by:
A.) TREC
B.) The TDHCA
C.) The TALCB
D.) TRELA: B.) The TDHCA
14. Which of the following are considered personal property and may be harvested by the owner of the
crop?
A.) Trade Fixtures
B.) Fixtures
C.) Severances
D.) Emblements: D.) Emblements
15. Lenders require naming the lender as a to protect their
interest in the property.
A.) Insurance coverage, loss payee
B.) Coinsurance, trustor
C.) A Lien, Creditor
D.) Wind Insurance, Guarantor: A.) Insurance coverage, loss payee
16. By failing to maintain sufficient , the reduction of the payout of a claim may be
reduced due to the coinsurance clause.
A.) fee simple ownership
B.) Capital gains tax
C.) Insurance coverage
D.) Personal liability: B.) Capital Gains Tax
17. Most standard homeowners insurance policies do not generally cover damage from
A.) Hailstorms
D.) MLS: A.) Claims history database
21. By failing to maintain sufficient , the reduction of the payout of a claim may be
reduced due to the coinsurance clause
A.) fee simple ownership
B.) Capital gains tax
C.) Insurance coverage
D.) Personal liability: C.) Insurance Coverage
22. A relationship exists when one person acts on behalf of another person from whom he has
derived authority.
A.) Agency
B.) Principal
C.) Client
D.) Broker: A.) Agency
23. The duties of a broker in a fiduciary relationships includes...
A.) budgeting
B.) Security
C.) Loyalty
D.) Trust: C.) Loyalty
24. The is used to provide agency information to consumers
A.) Sellers Listing Agreement
B.) IABS form
C.) Employment Contract
D.) Buyer representation agreement: B.) IABS form
25. Whether it be a phone call, fax, email or in person, it is important to remember that must be
disclosed at first contact
A.) Representations
B.) a signed sales contract
C.) the IABS form
D.) All of these: A.) Representation
26. The agency that is responsible for the enforcement of the federal consumer financial law is :
A.) CFPB
B.) TILA
C.) Federal Reserve
D.) HUD: D.) HUD
27. The was passed to ensure that banks would serve the needs of a community in which they
were chartered to do business.
A.) ADA
B.) ECOA
A.) Never
B.) Always
C.) When renting a single family residence
D.) When renting a shared living space: D.) When renting a shared living space
32. Attending designation courses such as the Accredited Buyers Represen- tative course is a good way to
demonstrate
A.) Integrity
B.) Fidelity
C.) Competency
D.) Perseverance: A.) Integrity
33. decribes the obligation of a license holder to be knowledgeable as a real estate brokerage
practitioner.
A.) Fidelity
B.) Competency
C.) Discriminatory practices
D.) Consumer information: B.) Competency
34. When it comes to competency, it is best described as the duty of a license holdeer to.
A.) represent the best interests of his client
B.) exercise skill and judgment in the performance of his work
C.) avoid misrepresentation
D.) All of the above: B.) Exercise skill and judgment in the performance of his work 7
35. The is the largest trade organization in the United States
A.) BOMA
B.) NAR
C.) TREC
D.) AIA: B.) NAR
36. Which of the following statements regarding the National association of Realtors is FALSE?
A.) The term Realtors is a registered trademark
B.) NAR is Americas largest trade organization
C.) All real estate holders are Realtors
D.) All of these are False: C.) All real estate holders are Realtors
37. All real estate brokers and inspectors must display, In a prominent location the:
A.) TILA disclosure
B.) Consumer protection notice CN 1- 2
C.) Information about Brokerage Services
D.) License Act: B.) Consumer protection notice CN 1- 2
38. To obtain a Texas real estate license it is not a requirement to.
C.) Any person in Texas, licensed or unlicensed, who violated the rules of TREC
D.) Any license holder, if a consumer complaint has been filed in writing: C.) Any person in Texas, licensed or
unlicensed, who violates the rules of TREC
42. A determines legal property boundaries for property ownership
A.) Land survey
B.) Topographic survey
C.) Seismic survey
D.) Green survey: A.) Land Survey
43. A legal description that contains the words "beginning at a point"is a:
A.) Lot and Block Description
B.) Metes and bounds description
C.) Informal reference
D.) PLSS Description: B.) Metes and bounds description
44. Which of the following is not an acceptable legal description used in a deed?
A.) Lot and Block
B.) Metes and Bounds
C.) Street address
D.) Rectangular survey system: C.) Street address
45. A might be required in a division of property between multiple owners.
A.) Bilateral contract
B.) monument
C.) unilateral contract
D.) survey: D.) survey
46. Which of the following is required for a lot and block description of a property?
A.) a point of beginning
B.) compass directions
C.) a recorded plat
D.) townships and sections: C.) a recorded plat
47. The concept behind the government survey system is the of a grid on
top of the land
A.) Overlay
B.) metes and bounds
C.) coordinates
D.) leaps and bounds: A.) overlay
48. Which of the following is not a requirement for a valid and enforceable contract?
A.) consideration
B.)Recording
C.) Mutual consent
B.) COLLIE
C.) EOVEC
D.) OLDCAR: A.) COLIC
53. Which of the following is not one of the categories of estates?
A.) Freehold
B.) Executory
C.) Statutory
D.) Leasehold: B.) Executory
54. The right of redemption for homestead property sold at a tax auction in Texas is Years
A.) One
B.) Two
C.) Three
D.) Four: B.) Two
55. Fee simple ownership is:
A.) Always an estate of inheritance
B.) is ownership for the duration of someones life
C.) Voided if a condition is not met
D.) Not common in Texas: A.) Always an estate of inheritance
56. Which of the following is created when a lease expires and tenant remains on the premises?
A.) Holdout tenancy
B.) illegal tenancy
C.) Tenancy at sufferance
D.) periodic tenancy: C.) Tenancy at sufferance
57. Tree Limbs from your neighbors property that intrude onto yours are an example of:
A.) Encroachment
B.) Easement
C.) Appurtenance
D.) Encumbrance: A.) Encroachment
58. A form of corporation that is taxed much like a partnerships is the.
A.) C Corporation
B.) S Corporation
C.) Limited Corporation
D.) CS Corporation: B.) S corporation
59. Jill and Adkins are married and live in Texas. They saved for a number of years and purchased a home. In
this case, the form of ownership is most likely to be:
A.) Separate property
B.) joint property
D.) Tenancy in common: D.) Tenancy in common
63. Three co- owners wish to divide their undivided interests in a property into individually owned tracts of
land. This process is known as an
A.) Alienation
B.) Lawsuit
C.) Waiver
D.) Partition: D.) Partition
64. Dwayne and Beth, each single persons, own a parcel of land as joint tenants. Beth has a will leaving her
entire estate to her brother, Jason. Upon Beths death, her interest in the land passes to:
A.) Jason, because he was named in the will
B.) Jason, because he is her brother
C.) Dwayne, because he is a joint tenant
D.) None of these: C.) Dwayne. because he is a joint tenant
65. A trust that is created during the lifetime of the trustor is an.
A.) Testamentary trust
B.) Inter vivos trust
C.) business trust
D.) None of the above: B.) Inter vivos trust
66. Seller steve listed his property with City Realty, Acme Realty and country- side realty all at the same time.
After signing the listing agreements, steve continued to run for sale by owner ads on Craigslist. The type of listing agreement Steve signed with various companies is a :
A.) Exclusive Right to sell
B.) Exclusive Agency Agreement
C.) Open Listing
D.) Net Listing: C.) Open Listing
67. In order to successfully sue for commission:
A.) The broker must have an active real estate license
B.) the broker must be the procuring cause of sale
C.) The broker must have an employment agreement signed by the party to be charged
D.) All of these are correct: D.) All of these are correct
68. The Federal law that requires that states make available online information related to known sex offenders is
A.) Sex offender disclosure act
B.) Megans Law
C.) RESPA
D.) Dangerous offenders law: B.) Megans Law
