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1. a: Townhomes and single-family homes differ in that a common wall. (a) townhomes share (b) single-family homes are sold as distinct living units within (c) owners of townhomes do not own the land because of (d) townhomes are retro-commissioned and share 2. a: Rights that are associated with the ownership of real property are often referred to as the owner's: (a) Bundle of rights (b) Constitutional rights (c) Statutory rights (d) Civil rights 3. a: The agreement between a broker and a client is most often a(n) agency relationship. (a) Special (b) General (c) Universal (d) Sub
Typology: Exams
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Texas Principles 1 Exam Practice Questions - Champions School of Real Estate
the state mental hospital in Rusk. Given Julie's unfortunate status, what is the effect on the listing with Seller Sam?
(a) The listing agreement is unaffected because it is an agency agreement between Seller Sam and the broker. (b) The listing agreement is terminated because Julie is mentally impaired. (c) The listing agreement is unaffected because mental impairment is never an issue in agency agreements. (d) The listing agreement is terminated because Seller Sam would not want to have an agent that no longer lives in the local market area.
(a) economic status (b) race or color (c) gender (d) any of the above
A real estate agent is an example of what type of agent...?
Universal Agent General Agent Special Agent Specific Agent - Correct answer-Special Agent
A means of comparing similar type properties, which have recently sold, to the subject property is known as the...?
Cost Approach Assessment Approach Income Approach
Market Comparison Approach - Correct answer-Market Comparison Approach
A contract in which a property owner employs a real estate broker to market the property described in the contract is known as the...
Agency Disclosure Contract Purchase and Sales Contract Closing Contract Listing Contract - Correct answer-Listing Contract
Properties with five or more dwelling units are considered...?
Special Purpose Property Commercial Property Industrial Property Residential Property - Correct answer-Commercial Property
The amount of goods offered for sale within a given market at a given price during a given time period is known as...
Demand GDP Supply None of the above - Correct answer-Supply
The general uses of real property include which of the following...?
Residential Industrial Commercial All of the above - Correct answer-All of the Above
If a real estate salesperson closes on a transaction, who pays the salesperson their commission...?
The Buyer The salesperson's sponsoring broker Whatever is stated in the listing agreement The Seller - Correct answer-The Salesperson's Sponsoring Broker
A property manager is an example of what type of agent...?
Universal Agent Specific Agent General Agent Special Agent - Correct answer-General Agent
The employer of an agent is known as the...?
Principal All of the above Customer Escrow - Correct answer-Principal
The market comparison approach is commonly used for this property type...?
Mixed-use Industrial Residential Commercial - Correct answer-Residential
Land and everything permanently attached to land is defined as...?
Bundle of Rights Real Property Fixture Real Estate - Correct answer-Real Estate
A refrigerator is typically considered...?
Fixture Real Property Personal Property Emblements - Correct answer-Personal Property
All property that is not land and is not permanently attached to land is known as...?
Personal Property Real Property Real Estate Fixture - Correct answer-Personal Property
Mineral rights are typically considered dominant to which of the following rights...?
Sub-surface rights None of the above Air rights Surface rights - Correct answer-Surface Rights
Which of the following is considered a legal test for determining if an item is a fixture or not...?
Intention of the parties Mode and permanence of how the item was attached Adaptation of the item All of the above - Correct answer-All of the Above
The right of exclusion, which allows a landowner to prevent others from entering or occupying their property, is included in the...?
Riparian Rights Littoral Rights Air Rights Bundle of Rights - Correct answer-Bundle of Rights
The landowner's ability to take minerals from the earth or to sell or lease this right to others is known as...?
Bundle of Rights Land Rights Mineral rights Air Rights - Correct answer-Mineral Rights
The transfer of personal property is typically done using a...?
Deed Purchase Contract All of the above Bill of Sale - Correct answer-Bill of Sale
Which of the following is an example of a fixture...? Curtains Removable bookshelves Rugs Kitchen cabinets - Correct answer-Kitchen Cabinets
Mobile homes not permanently attached to the land are generally considered...?
Trade Fixtures Fixtures Real Property Personal Property - Correct answer-Personal Property
A mortgage payment typically includes...?
Principal Interest Insurance
All of the above - Correct answer-All of the Above
A local real estate developer bought an abandoned school building with the intention of converting it to residential units. This is an example of a...?
Planned Unit Development Converted-use property All of the above Cooperative - Correct answer-Converted-Use Property
A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property is known as a...?
Cooperative PUD Condominium Townhouse - Correct answer-Condominium
Which of the following is NOT a form of real property...?
Cooperative Condominium Townhouse Single family house - Correct answer-Cooperative
Owners of a cooperative apartment hold which of the following...?
Proprietary lease All of the above Deed Deed of Trust - Correct answer-Proprietary Lease
When an insured homeowner is covered and reimbursed for the actual cost of replacing the damaged property, these costs are known as...?
Replacement Costs Title Costs Estimated Costs Insurance Costs - Correct answer-Replacement Costs
An insurance policy protecting against a variety of hazards is referred to as a...?
Homestead Policy Individual Policy Homeowners Policy
Package Policy - Correct answer-Homeowners Policy
Which of the following is an advantage to owning a home...?
Tax benefits Pride of ownership Potential for asset appreciation All of the above - Correct answer-All of the Above
An individual is exempt from paying taxes on capital gains for up to how much in profit if he/she lived in the house for at least 2 of the last 5 years...?
$100, $250, $500, $1,000,000 - Correct answer-$250,
An individual who has not owned real property for at least the previous two years is known as a...?
First-time homebuyer Conventional homebuyer Exempt homebuyer Vacant homebuyer - Correct answer-First-Time Homebuyer
When a real estate broker represents a buyer in a transaction, the broker and buyer are bound by which of the following contracts...?
Buyer Representation Agreement Listing Agreement All of the above Purchase Agreement - Correct answer-Buyer Representation Agreement
A contract in which a property owner employs a real estate broker to market the property described in the contract is referred to as the....?
Exclusive Contract Purchase Contract Listing Contract Agency Contract - Correct answer-Listing Contract
The 'L' in the acronym C.O.A.L.D. stands for which fiduciary duty...?
Loyalty Litigation Listing
License - Correct answer-Loyalty
The employer of an agent is referred to as the...?
Principal Partner Customer Fiduciary - Correct answer-Principal
An agency relationship created by oral or written agreement between the principal and the agent is known as...?
General Agency Brokerage Implied Agency Express Agency - Correct answer-Express Agency
Which of the following acronyms summarizes the fiduciary duties a broker owes to his/her principal...?
C.O.A.L.D. O.L.D.C.A W.B.V.A. C.A.T.T.L. - Correct answer-C.O.A.L.D.
The Deceptive Trade Practices Act discourages agent from which of the following acts...?
Puffing Exclusive agency Indemnification All of the above - Correct answer-Puffing
Real estate brokers have a ................... relationship with the principal?
Universal Fiduciary Special General - Correct answer-Fiduciary
As a seller's agent in a transaction, the agent is required to do which of the following...?
Answer to the seller Present all offers to the seller Inform the seller of any material information All of the above - Correct answer-All of the Above
The listing agreement is a contract between the real estate broker and the...?
Customer Seller Buyer Agent - Correct answer-Seller
Under the Equal Credit Opportunity Act, lenders must provide financing based on which of the following criteria...?
Income Age National origin Race - Correct answer-Income
Blockbusting is also known as...?
Panic buying Panic selling Panic lending Panic brokerage - Correct answer-Panic Selling
This federal law requires all federally regulated lenders to describe the geographic market area that they serve...?
Community Reinvestment Act ADA Civil Rights Act of 1968 Housing and Urban Development Act - Correct answer-Community Reinvestment Act
Which of the following is considered illegal under the Fair Housing Act...?
Refusing to show properties in neighborhoods based on racial criteria Refusing to sell to a protected class Refusing to show properties in neighborhoods based on religious criteria All of the above - Correct answer-Refusing to Sell to a Protected Class
HUD fair housing complaints can be filed in which of the following ways...?
Mail Phone Online All of the above - Correct answer-All of the Above
The laws governing fair housing are also referred to as...?
Federal Housing Equal Opportunity Housing Free Housing Civil Rights Housing - Correct answer-Equal Opportunity Housing
Which of the following is a means to prevent steering...?
Ask the client to describe where they want to live based on the racial make-up of the neighborhood Ask the client to describe where they want to live based on geographical boundaries Ask the client to describe where they want to live based on the religious make-up of the neighborhood All of the above - Correct answer-Ask the client to describe where they want to live based on geographical boundaries
Advertising that suggests that a particular home is not suited for couples with children is considered a violation of this protected class...?
Gender Race Familial Status Religion - Correct answer-Familial Status
The prohibition of fair housing discrimination by a licensee is described in which of the following Acts...?
Texas Civil Rights Act Texas Fair Housing Act Texas Real Estate License Act Texas Discrimination Act - Correct answer-Texas Real Estate License Act
Any medical disorder, condition, disfigurement or loss affecting one of the body systems is known as a...?
Physical Impairment Mental Impairment Disorder Handicap - Correct answer-Physical Impairment
If an agent does not abide by the TREC canons of professional ethics, which of the following may occur...?
The agent may be placed on probation The agent's license can be suspended The agent's license can be revoked All of the above - Correct answer-All of the Above
This form must be posted in brokerage offices...?
Purchase Agreement Form HUD-1 Form Consumer Information Form 1- All of the above - Correct answer-Consumer Information Form 1-
Exercising judgment and skill in the performance of an agent's practice is also known as...?
Obedience Loyalty Fidelity Competency - Correct answer-Competency
The intricacies in marketing properties for others involves...?
Competency Fidelity Obedience Loyalty - Correct answer-Competency
Abby is a real estate agent. She knows that she must place her client's interests above her own. This is an example of...?
Fidelity Competency Accounting Confidentiality - Correct answer-Fidelity
Fidelity, on TRECs canons of professional ethics, implies...?
Loyalty Reasonable Care Obedience All of the above - Correct answer-Loyalty
In addition to the loyalty owed by an agent to his/her client, the agent must also act fairly to other customers in the transaction. This is an example of...?
Obedience Integrity Fidelity Competency - Correct answer-Fidelity
An agent should be informed on market conditions affecting the real estate business. This is
an example of...?
Fidelity Competency Loyalty All of the above - Correct answer-Competency
Which of the following is one of the TREC canons of professional ethics...?
Fidelity Competency Integrity All of the above - Correct answer-All of the Above
An agent must be honest and truthful. This is an example of...?
All of the above Competency Integrity Fidelity - Correct answer-Integrity
A licensee may have their license suspended or revoked for which of the following actions...?
Failing to close a transaction within 2 calendar years Changing brokers Unlawful practice of law All of the above - Correct answer-Unlawful Practice of Law
Which of the following is exempt from holding a real estate license...?
Real estate salesperson Real estate broker Associate broker Licensed Texas attorneys - Correct answer-Licensed Texas Attorneys
Which of the following must hold a real estate license...?
Real estate salesperson Real estate appraiser Real estate attorney All of the above - Correct answer-Real Estate Salesperson
Who determines the standards for real estate licensing courses in Texas...?
Texas Association of Realtors National Association of Realtors Arello Texas Real Estate Commission - Correct answer-Texas Real Estate Commission
A real estate broker is authorized to perform which of the following acts...?
Auction off real estate Identify properties for purchase or lease Deal or sell options on real estate All of the above - Correct answer-All of the Above
Who is legally entitled to receive a commission from a principal for a sale or rental of the principal's property...?
Associate real estate salesperson Real estate broker Real estate salesperson All of the above - Correct answer-Real Estate Broker
Which of the following is exempt from holding a real estate license...?
A homeowner looking to sell their house on their own Real estate broker Real estate salesperson Associate broker - Correct answer-A Homeowner Looking to Sell Their House on Their Own
If an administrative penalty is not paid, who is responsible for collecting the payment...?
Texas Association of Realtors Attorney General State Governor State Judge - Correct answer-Attorney General
After an applicant submits their real estate salesperson application, their license will be mailed to which of the following...?
Both the applicant and the applicant's sponsoring broker The applicant Department of State The applicant's sponsoring broker - Correct answer-The Applicant's Sponsoring Broker
Real estate salespersons should not provide which of the following to their clients...?
Market updates Marketing advice
Legal advice Full disclosure - Correct answer-Legal Advice
If an individual uses sections to help describe a property, they are most likely using which of the following methods...?
Metes and Bounds Government Survey Lot and Block All of the above - Correct answer-Government Survey
The imaginary north-south lines used in a government survey are referred to as...?
Survey Lines Principal Meridians Reference Lines Base Lines - Correct answer-Principal Meridians
A territorial subdivision six miles long, six miles wide and containing 36 sections, located between two range lines and two township lines is known as a...?
County Plat Township Range - Correct answer-Township
When using the metes and bounds method to describe property, the origin point is also the...?
Datum End point Reference point Base point - Correct answer-End Point
Which of the following property descriptions is not used in the State of Texas...?
Metes and Bounds All of the above Lot and Block Government Survey - Correct answer-Government Survey
Metes and bounds is an example of a...?
Key Plan Township Site Plan
Legal Description - Correct answer-Legal Description
The point of origin in a metes and bounds survey is also known as a...?
Principal Point Point of Commencement Base Point Marker - Correct answer-Point of Commencement
This refers to a term used in describing the boundary lines of land, setting forth all the boundary lines together with their terminal points and angles...?
Plot Map Lot and Block Metes and Bounds Government Survey - Correct answer-Metes and Bounds
1 square foot is equal to...?
100 square inches 144 square inches 640 square inches 1,000 square inches - Correct answer-144 square inches
The subdivision plat method of describing property includes which of the following...?
Townships Monuments Lot and Blocks Sections - Correct answer-Lot and Blocks
Until a purchase contract is closed upon, it is considered a/an...?
Implied contract Void contract Executed contract Executory contract - Correct answer-Executory Contract
A listing contract is an example of a/an...?
Bilateral contract Unilateral contract Implied contract Void contract - Correct answer-Bilateral Contract
To mingle or mix, for example, a client's funds in the broker's personal or general account is
known as...?
Redlining Commingling Steering Conversion - Correct answer-Commingling
The sale of a property as an alternative to damages is an example of...?
Executed performance Special performance Specific performance General performance - Correct answer-Specific Performance
If one of the parties in a real estate transaction are not considered competent, the contract between the parties is considered a/an...?
Executed contract Executory contract Voidable contract Enforceable contract - Correct answer-Voidable Contract
When a contract is fully performed, the contract is considered...?
Assigned Converted Acknowledged Discharged - Correct answer-Discharged
Which of the following real estate contracts must be in writing...?
Sales contract Lease contract for greater than 1 year Purchase contract for a multi-family property All of the above - Correct answer-All of the Above
Which of the following contracts is NOT required to be in writing...?
Lease for more than 1 year Lease under 1 year Sales contract for a single family home Sale contract for a multi-family property - Correct answer-Lease Under 1 Year
Oral listing agreements between a seller and a broker are...?
Void
Unenforceable Express Executed - Correct answer-Unenforceable
If a contract is not for a legal purpose, it is considered a/an...?
Void contract Enforceable contract Executed contract Executory contract - Correct answer-Void Contract
When a fee simple determinable ends, the interest will revert to the...?
Grantee Grantor Trustor Life Tenant - Correct answer-Grantor
A fee simple estate is an example of which of the following estates...?
Freehold Estate Leasehold Estate All of the above Land Estate - Correct answer-Freehold Estate
A right of the government to acquire property for necessary public use by condemnation is known as...?
Escheat Novation Eminent Domain Police Power - Correct answer-Eminent Domain
Which of the following easements is commonly used by utility companies...?
Easement by necessity Easement by prescription Easement in gross Easement appurtenance - Correct answer-Easement in Gross
The land benefiting from an easement is referred to as the...?
Servient tenement Devisor Dominant tenement Devisee - Correct answer-Dominant tenement
The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public is known as...?
Eminent Domain Police Power Condemnation Escheat - Correct answer-Police Power
Which of the following acronyms can be used to describe government powers with regards to real property...?
OLD CAR PETE CATTL RESPA - Correct answer-PETE
The land that is encumbered by an easement is referred to as the...?
Dominant tenement Devisor Devisee Servient tenement - Correct answer-Servient Tenement
A right acquired by one party to use the land of another party for a special purpose is known as a...?
Acknowledgment Lien Grant Easement - Correct answer-Easement
A lien imposed against property without consent of an owner is referred to as a/an...? Voluntary lien Subject lien Subordinate lien Involuntary lien - Correct answer-Involuntary Lien
How is ownership in a community property between a husband and wife divided...?
Based on the amount of down payment by each owner Based on the credit score of each owner Ownership is divided equally among the owners None of the above - Correct answer-Ownership is Divided Equally Among the Owners
An ownership of realty by two or more persons, each of whom has an undivided interest,
without the "right of survivorship" is known as...?
Joint Tenancy Tenancy in Common Severalty Ownership Community Property - Correct answer-Tenancy in Common
A joint tenancy is terminated when which of the following ceases to exist...?
Possession Title Interest All of the above - Correct answer-All of the Above
Property owned by one person only is referred to as...?
Community Property Joint Tenancy Tenancy in Common Severalty Ownership - Correct answer-Severalty Ownership
This business structure combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation...?
Limited Partnership S-Corp Limited Liability Partnership Limited Liability Company - Correct answer-Limited Liability Company
Co-ownership in a property can be terminated by which of the following...?
Purchase of a new property Disagreement among co-owners Foreclosure All of the above - Correct answer-Foreclosure
Which of the following unities is required to create a joint tenancy...?
Title Interest Time All of the above - Correct answer-All of the Above
A division of real or personal property or the proceeds therefrom among co-owners is known as...?
Partition Right of survivorship Separation Termination - Correct answer-Partition
The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant is known as...?
Right of survivorship Testamentary trust Tenancy in common Living trust - Correct answer-Right of Survivorship
Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse is known as...?
Joint tenancy Severalty ownership Community Property Tenancy in common - Correct answer-Community Property
A listing contract exists between the real estate broker and the...?
Real estate salesperson Client Customer All of the above - Correct answer-Client
A broker's compensation is...?
Variable Controlled Negotiable Fixed - Correct answer-Negotiable
Which of the following is a type of contract used between brokers and sellers...?
Open Listing Exclusive Agency Agreement Exclusive Right to Sell Agreement All of the above - Correct answer-All of the Above
Which entity produces the most commonly used Exclusive Right to Sell agreement in Texas...?
Real Estate Commission
Texas Association of Realtors Texas Bar Association National Association of Realtors - Correct answer-Texas Association of Realtors
A broker is entitled to a commission after they...?
Find a ready, willing, and able buyer All of the above Show the property to a prospective buyer Market the property - Correct answer-Find a Ready, Willing, and Able Buyer
Which of the following is an example of an addendum found in a listing contract...?
Seller Disclosure Notice Lead Based Paint Disclosure Request for Information from an Owner's Association All of the above - Correct answer-All of the Above
Which of the following listing contracts is discouraged throughout the State of Texas...?
Exclusive Agency Agreement Exclusive Right to Sell Agreement Net Listing Open Listing - Correct answer-Net Listing
This type of contract gives the broker the greatest chance at receiving a commission...?
Exclusive Agency Agreement Net Listing Contract Open Listing Contract Exclusive Right to Sell Agreement - Correct answer-Exclusive Right to Sell Agreement
This type of listing provides that the agent may retain as compensation for the agent's services all sums received over and above a net price to the owner...?
Open Listing Exclusive Right to Sell Agreement Exclusive Agency Agreement Net Listing - Correct answer-Net Listing
If an additional contract item does not belong in the contract Addendum, it will most likely get listed in the...?
Special Provisions Contract bulletin Contract notice form