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Principles of Real Estate 1-
Champions School of Real Estate
Questions With Correct Answers.
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 Answer- D.) Modification The supply of Real Estate is affected by A.) Land cost B.) Building codes C.) Government regulations D.) All of these Answer- D.) All of these The least important factor affecting demand for real estate is: A.) Population Growth B.) Personal Preference C.) Availability of Credit D.) Transportation Systems Answer- B.) Personal Preference 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 Answer- C.) Common Law 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 transgressions, 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 Answer- A.) Statutory Law 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 Answer- C.) Texas Department of Savings and Mortgage Lending 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 characteristics of: A.) Scarcity B.) Fixity C.) Situs D.) Modification Answer- D.) Modification Air Rights are commonly leased or conveyed in: A.) Cell tower leases B.) Condominiums C.) Outdoor Advertising D.) All of these are correct Answer- D) all of these Building, roads and fences are all examples of: A.) Personal Property B.) Private Property C.) Improvements D.) Public Property Answer- C.) Improvements If a tenant fails to remove trade fixtures from the leased premises, the fixtures become the property of the landlord through: A.) Remediation B.) Adverse Possession C.) Accession D.) Descent Answer- C.) Accession 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 Answer- C.) HUD 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 Answer- C.) Modular Homes Manufactured home dealers and sales people in Texas are licensed by: A.) TREC B.) The TDHCA C.) The TALCB D.) TRELA Answer- B.) The TDHCA
D.) MLS Answer- A.) Claims history database 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 Answer- C.) Insurance Coverage 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 Answer- A.) Agency The duties of a broker in a fiduciary relationships includes... A.) budgeting B.) Security C.) Loyalty D.) Trust Answer- C.) Loyalty The is used to provide agency information to consumers A.) Sellers Listing Agreement B.) IABS form C.) Employment Contract D.) Buyer representation agreement Answer- B.) IABS form 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 Answer- A.) Representation The agency that is responsible for the enforcement of the federal consumer financial law is : A.) CFPB B.) TILA C.) Federal Reserve D.) HUD Answer- D.) HUD 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 C.) CRA D.) None of the above Answer- C.) CRA The of 1968 does not offer protection for discrimination based on occupation. A.) National Origin Act
D.) Civil Rights Act Answer- D.) Civil Rights Act Of the following building, which is not exempt from the ADA? A.) School B.) A private club C.) historic building D.) A single family home Answer- A.) School In housing discrimination based upon has been violation of federal law since 1866. A.) Economic status B.) Race or color C.) Gender D.) Any of the Above Answer- B. Race or Color Advertisements that specify a gender preference are acceptable: A.) Never B.) Always C.) When renting a single family residence D.) When renting a shared living space Answer- D.) When renting a shared living space Attending designation courses such as the Accredited Buyers Representative course is a good way to demonstrate A.) Integrity B.) Fidelity C.) Competency D.) Perseverance Answer- A.) Integrity 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 Answer- B.) Competency 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 Answer- B.) Exercise skill and judgment in the performance of his work 7 The is the largest trade organization in the United States A.) BOMA B.) NAR C.) TREC D.) AIA Answer- B.) NAR
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 Answer- C.) All real estate holders are Realtors 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 Answer- B.) Consumer protection notice CN 1- To obtain a Texas real estate license it is not a requirement to
. A.) be a US citizen B.) submit fingerprints to TREC C.) be 18 years or older D.) comply with legal residency requirements Answer- A.) Be a US citizen In TREC's real estate recovery trust account there is a transaction maximum of on behalf of any one license holder A.)$100 Million B.) $50, C.) $3.5 Million D.) $100,000 Answer- D.) $100, TREC may suspend or revoke a license for any of the following reasons EXCEPT: A.) Commingling broker funds with client funds B.) Selling real property by lottery C.) Placing a sign offering property for sale of lease with written consent of the owner D.) Acting in the undisclosed dual capacity of broker and seller within a single transaction Answer- C.) Placing a sign offering property for sale of lease with written consent of the owner TREC may assess an administrative penalty of up to $5,000 per day for violation of the License Act by: A.) only license holders who violate the rules of TREC B.) only brokers who violate the rules of TREC 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 Answer- C.) Any person in Texas, licensed or unlicensed, who violates the rules of TREC A determines legal property boundaries for property ownership A.) Land survey B.) Topographic
B.) Metes and bounds description C.) Informal reference D.) PLSS Description Answer- B.) Metes and bounds description 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 Answer- C.) Street address A might be required in a division of property between multiple owners. A.) Bilateral contract B.) monument C.) unilateral contract D.) survey Answer- D.) survey 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 Answer- C.) a recorded plat 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 Answer- A.) overlay Which of the following is not a requirement for a valid and enforceable contract? A.) consideration B.)Recording C.) Mutual consent D.) Competent Parties Answer- B.) Recording Which of the following is often referred to the "meeting of minds"? A.) Competent parties B.) Consideration C.) Specific performance D.) Mutual consent Answer- D.) Mutual consent The Statues of Frauds is applicable to: A.) contracts for the sale of real estate B.) Listing agreement C.) Buyer representation agreements D.) All of the above Answer- D.) All of the above A consideration is defined as A.) An offer
B.) a counteroffer
the
. A.) C Corporation B.) S Corporation C.) Limited Corporation D.) CS Corporation Answer- B.) S corporation
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 C.) Community property D.) Tenants in common Answer- C.) community property The easiest form of organization that gives one individual the greatest control over a business is the. A.) Partnerships B.) Sole proprietorship C.) S corporation D.) C Corporation Answer- b. sole proprietorship When dealing with community property, which of the following statements is true? A.) The signature of either spouse is required to sell it B.) When one spouse dies, the surviving spouse immediately owns all the property of the deceased. C.) property inherited by one spouse can remain the separate property of that spouse. D.) Community property is a concept of English law. Answer- B.) When one spouse dies, the surviving spouse immediately owns all the property of the deceased. A property is owned by two unmarried individuals without right of survivorship. The form of ownership is most likely: A.) Community property B.) Ownership in severalty C.) Joint Tenancy D.) Tenancy in common Answer- D.) Tenancy in common 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 Answer- D.) Partition 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 Answer- C.) Dwayne. because he is a joint tenant
Seller steve listed his property with City Realty, Acme Realty and countryside 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 Answer- C.) Open Listing 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 Answer- D.) All of these are correct 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 Answer- B.) Megans Law
