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Principles of Real Estate Practice Exam 1 questions with
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Which of the following does not need a license? CORRECT ANSWER a person who offers to sell her own property The Texas Real Estate Commission consists of ______. The commission members serve for _______ terms CORRECT ANSWER 9 members --- 6 year When a broker discharges a salesperson, he should: CORRECT ANSWER return the license to the Texas Real Estate Commission A real estate salesperson may elect to remain inactive for: CORRECT ANSWER indefinitely TRELA states: An applicant must satisfy the examination requirements not later than one year after the date the license application is filed. CORRECT ANSWER True The Texas Real Estate Recovery Fund is funded CORRECT ANSWER by real estate license fees The Texas Real Estate Commission may suspend or revoke a license or take other disciplinary action authorized by Chapter 1101 if the license holder, while acting as a broker or salesperson: CORRECT ANSWER all of the above The term "Realtor" applies to any CORRECT ANSWER member of the National Association of REALTORS® The owner of a single-family house in which he lives wants to sell. If he does not use discriminatory language in advertising, has not sold any other house within the past two years, and does not employ an agent, may he discriminate on the basis of race in
selecting a purchaser? CORRECT ANSWER No, because this would be prohibited by the Civil Rights Act of 1866. All of the following are prohibited by the Fair Housing Act of 1968, as amended, EXCEPT CORRECT ANSWER discrimination on the basis of age The practice of directing home seekers to particular neighborhoods based on race, color, religion, sex, or national origin CORRECT ANSWER is known as steering A licensed real estate agent is offered a listing by an owner who stipulates that she will not sell to any person of a certain national origin. The agent should: CORRECT ANSWER refuse the listing The Americans with Disabilities Act deals primarily with: CORRECT ANSWER commercial property Which of the following are not classified as real property? CORRECT ANSWER emblements Easements, rights-of-way, and condominium parking stalls are examples of CORRECT ANSWER appurtenances Which of the following would be considered to be a fixture because of the manner of its attachment to the property? CORRECT ANSWER water heater The tests of a fixture include the method of annexation to the real estate, adaptation to a particular use of the premises, and CORRECT ANSWER the intention of the parties Which of the following is NOT a physical characteristic of land? CORRECT ANSWER fungibility
When does ownership in severalty occur? CORRECT ANSWER property is owned by one person If two or more persons are named as owners and there is no specific indication as to how they are taking title, what are they presumed to be? CORRECT ANSWER tenants in common What are the four unities needed to create a joint tenancy? CORRECT ANSWER Each will receive a separate deed for his share. Who is the management of the partnership performed by? CORRECT ANSWER the general partners he day-to-day operation of a corporation is the responsibility of whom? CORRECT ANSWER management How is income taxed in regard to a real estate investment trust? CORRECT ANSWER Income is taxed at the level of the trust, rather than as income to the beneficiaries. What is a contract based upon a promise exchanged for a promise? CORRECT ANSWER bilateral contract Jane agreed to purchase real estate from Grant, and gave her earnest money deposit at the time the agreement was made. What constituted the consideration in this contract? CORRECT ANSWER the promise for a promise From where does an attorney-in-fact derive his powers? CORRECT ANSWER a power of attorney
What is the amount of earnest money deposit paid by the purchaser called? CORRECT ANSWER determined by negotiation What does the phrase "time is of the essence" in a sales contract mean? CORRECT ANSWER the time limits set by the contract must by faithfully observed or the contract is voidable When does the seller retain the title? CORRECT ANSWER seller retains title What is the purchaser's right to acquire legal title to real property under the terms of a valid agreement? CORRECT ANSWER equitable title When is the seller's lead-based paint disclosure notice required? CORRECT ANSWER 1978 Where is the amount of commission to be paid to the broker for selling a property stated? CORRECT ANSWER stated in the listing contract Under the terms of an exclusive agency listing, may the owner sell the property and not owe a commission to the listing broker? CORRECT ANSWER True Under the terms of an exclusive agency listing, is a commission due to the listing broker if a buyer is found by the owner? CORRECT ANSWER the owner, through her own efforts How can an exclusive listing contract be terminated? CORRECT ANSWER death of the listing salesperson Sally is selling her home and has listed it with a broker. She is required to give a Seller's Disclosure Notice form to the buyer. Who is the most likely person to fill out this
After Jan has been an active salesperson for 4 years, she becomes a broker and has several sponsored salespersons. She must do CE. Subchapter I requires CORRECT ANSWER Her to have at least six classroom hours of broker responsibility education Laura will take ownership in severalty because she is CORRECT ANSWER Single Tommy and Carol are married and will own their house as CORRECT ANSWER Community property Will Laura have a deed to her condo and will she have to pay property tax on her condo? CORRECT ANSWER Both A and B Tommy is Laura's son. As her son will he be part owner of the condo? CORRECT ANSWER All of the above are correct When Carol rents the house she owned before she married, the income will be CORRECT ANSWER Community property The house was built in 1975. Jim made sure the sellers disclosed CORRECT ANSWER That the house could contain lead-based paint Jim explained that the land description that uses distance and direction to define the shape and boundaries of the property is CORRECT ANSWER Metes and Bounds Jim asks the Semas to sign a buyer's representation agreement, and they did. They became Jim's clients, and Jim could give them CORRECT ANSWER Advice and opinions
Jim explained that the home was on 2 acres. This means the land has CORRECT ANSWER 87, sq. ft. Mr. and Mrs. Sema thought 1115 South 61st Street was the legal description of their property, but Jim explained CORRECT ANSWER It was an informal reference
