Principles of Real Estate 1 Study Guide: Exam Questions and Answers, Exams of Real Estate Management

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Principles of Real Estate 1 Study Guide

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The purpose of the TRELA is to... - Answer: protect the public against unscrupulous brokers and salespersons.

What is required to obtain a license in Texas? - Answer: be a resident of Texas at least 18 yrs. of age at the time of application, be of good moral character, must show competency by passing the exam If the licensee pays a commission to any unlicensed person, places a sign offering a property without the written permission of the owner, sells real estate by lottery this can happen.... - Answer: A license can be revoked or suspended by the TREC How long does a consumer have to file a complaint with TREC against a licensee? - Answer: Four years Who promulgates real estate contract forms in Texas? - Answer: The Broker Lawyer Committee Which economic characteristic of land describes location preference from an economic point of view? - Answer: situs What is often considered the most important test of a fixture? - Answer: Intentions of the parties Which of the following is an example of an encroachment? - Answer: The neighbor's fence is on your land.

PETE: police power, eminent domain (gvt.takes private land for public use), Taxation, Escheat (gvt. Takes title of land where owner has no heirs or will) - Answer: The government's rights in land A property description that is considered an informal reference is - Answer: a street address. The highest priority lien against real property is - Answer: property tax The type of ownership in which the person has the most rights is called - Answer: fee simple Texas is a community property state. What is true about community property? - Answer: Property inherited by one spouse can remain separate property of that spouse. When property has only one owner it is called - Answer: severalty Property held by two or more owners with rights of survivorship is - Answer: joint tenancy A lease with a specific starting and ending date is called - Answer: an estate for years or tenancy for years.

When the landlord pays all of the expenses of the property and then tenant pays only the rent, this is called - Answer: a gross lease An easement can be terminated by - Answer: merger Deeds require the signature of - Answer: the grantor The deed that gives the buyer the greatest protection is called - Answer: the general warranty deed Title to real property transfers when - Answer: the deed is delivered When a grantor transfers a title but retains some rights it is called - Answer: reservation A complete history of the title of a piece of property is called an - Answer: abstract A handwritten will is called a - Answer: holographic will Inheritance of real property without a will is called - Answer: laws of descent Seller financing where the seller retains title until the final payment is called - Answer: contract for deed

The duties of the principal include - Answer: performance When an agent has unlimited authority to act on behalf of the client it is called - Answer: universal authority The duties of the agent include - Answer: loyalty A contract that meets all of the requirements of the law is called - Answer: valid A contract that can be canceled by one of the parties is called - Answer: voidable Something of value given to one to induce another to enter into a contract is called - Answer: consideration The law requiring real estate contracts to be in writing is called - Answer: The Statute of Frauds Contracts that are signed and carried out are called - Answer: executed When one of the parties of the contract dies, the contract is... - Answer: binding on the heirs if possible If the parties of a contract agree to terminate the contract, it is called - Answer: mutual rescission

TREC promulgated forms are - Answer: mandatory for licensees Where do individuals go to borrow money? - Answer: The Primary Market Loans that meet FMNA guidelines are called - Answer: conforming loans What is a point? - Answer: 1% of the loan amount The pledge of real property as security for a debt is called - Answer: a mortgage The major advantage of a Deed of Trust to a lender is - Answer: power of sale A mortgage becomes a lien when it is - Answer: recorded The document that is evidence of a borrower's promise to repay a loan is called a - Answer: note When a lender collects principal, interest, taxes, and insurance (PITI) as part of a monthly payment, this is called - Answer: a budget loan When a buyer purchases a property and takes over the payments and liability on an existing loan it is called - Answer: a straight assumption A loan that covers two or more pieces of property on one note is called - Answer: a blanket loan

The most common approach for the appraisal of residential properties is the - Answer: Market Data Approach The characteristics of value of land include demand, utility, scarcity, and transferability but not this... - Answer: taxes Using the Cost Approach, the appraiser will calculate - Answer: land value+ building replacement cost- depreciation Regulates closings on 1-4 residential properties with federally related financing - Answer: RESPA When lower value properties in an area cause a decline in the value of the subject property this is called - Answer: Regression Higher value properties cause an increase in the value of the subject property is called - Answer: Progression 1 acre= how many sq ft? - Answer: 43,560 sq. ft Taking buyers to or away from a particular area based on any of the protected categories under Fair Housing Laws is called - Answer: steering or channeling

The largest fine for any single violation of the Fair Housing Act is - Answer: $110, The Civil Rights Act of 1968 does NOT offer protection against discrimination based on... - Answer: occupation If you believe you are a victim of discrimination under the Federal Fair Housing laws, how long do you have to file a complaint? - Answer: 1year commission rate x sales price= - Answer: Commission 100% - commission rate x sales price= - Answer: Seller's net % x total area= - Answer: Usable area 100% + appreciation % x original cost= - Answer: Appreciated value 100% - depreciation % x original cost= - Answer: Depreciated value % x original cost= - Answer: Profit interest rate x loan amount= - Answer: Yearly interest % x list price= - Answer: Sales price

% x market value= - Answer: Assessed value tax rate x assessed value= - Answer: Tax qualifying ratio x gross monthly income= - Answer: Monthly PITI capitalization rate x market value= - Answer: Net income % x total= - Answer: Part Part divided by the total = - Answer: % Part divided by the % = - Answer: total