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Texas Principles 1 Q & A - Champions School of Real Estate, Exams of Business Administration

Texas Principles 1 Q & A - Champions School of Real Estate

Typology: Exams

2022/2023

Available from 03/02/2023

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Texas Principles 1 Q & A - Champions School of Real

Estate

  1. A commission may suspend or revoke a license for...? acting negligently or incompetently, commingling money and soliciting or selling offers for the sale of real estate by means of a lottery:
  2. Enacted in 1992 and deals with commercial property only? ADA Americans with Disabilities Act
  3. person who administers the wishes of a will assigned by the court in the event the executor is not will to perform? administrator
  4. Taxing "according to value”? Ad Valorem
  5. When one person takes possession of another's land and holds that possession for a long enough period of time to be able to make it theirs and take ownership of it? Adverse Possession
  6. Loyalty is a duty of the...? agent
  7. Transfer of ownership of property - Alienation
  8. Land that has been created by Accretion - Alluvion
  9. 100% + appreciation % x original cost = appreciated value
  1. Right or privilege to land that goes with the land when ownership changes such as parking lot spaces, easements, right or ways? Appurtenances
  2. percentage (%) x market value= assessed value
  3. a person holding a power of attorney? Attorney in Fact
  4. Sudden removal of land by water? Avulsion
  5. No warranties against encumbrances? bargain/sale
  6. How much is the largest fine for any single violation of the Fair Housing Act? $110,
  7. What is a point? 1% of the loan amount
  8. If you believe you are a victim of discrimination under the Federal Fair Housing laws, how long do you have to file a complaint? 1 year
  9. What is the sentence that is used to remember how many sq. ft. are in one acre? 4 nuns driving 35 in a 60 mph
  10. How long does a consumer have to file a complaint with TREC against a licensee? 4 years
  11. interest rate x loan amount = yearly interest
  1. TREC Commission members serve year terms. 6 year staggered
  2. The TREC Commission consists of how many members? How many of them are brokers? How many of them are public? 9, 6, 3
  3. The Texas Real Estate Broker-Lawyer Committee consists of how many members? How many of them are brokers? How many of them are lawyers? How many of them are public? 13, 6, 6, 1
  4. What are the general Eligibility Requirements to be Licensed by TREC? 18 years old, a US citizen or lawfully admitted alien resident of the state
  5. 1 acre= how many sq ft? 43,
  6. How do you calculate Appreciated Value? 13. 100% - commission rate x sales price: How do you calculate Seller's Net? 100% + appreciation % x original cost
  7. How do you calculate Depreciated Value? 100% - depreciation % x original cost:
  8. A contract that can be canceled by one of the parties is called? voidable:
  9. A complete history of the title of a piece of property is called an? abstract
  10. Condensed history of all docs that have been recorded affecting the title of the property? abstract title
  1. What is it called when land is increased in size because of natural deposit of rock and soil usually caused by water movement? Accretion
  2. What is required to obtain a license in Texas? 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
  3. promised for a promise (real estate contract) - bilateral contract
  4. How is Personal Property sold? Bill of Sale
  5. When one of the parties of the contract dies, the contract is...? binding on the heirs if possible
  6. A loan that covers two or more pieces of property on one note is called a(n)...? blanket loan
  7. is when one party fails to perform the duties of the contract. -they can be asked by judge to partially perform or substantially perform? breached
  8. Who promulgates real estate contract forms in Texas? the broker lawyer committee
  9. When a lender collects principal, interest, taxes, and insurance (PITI) as part of a monthly payment, this is called a(n)...? budget loan

40.The many rights that Fee Simple gives to owners of property-bundles or sticks can be removed but the owner still owns the Fee Simple. This is called...? Bundle of Rights or Bundle of Sticks 41.A certificate is required separate of the license when...? buying, selling or leasing an easement pertaining to telecommunication, utility, railroad or pipeline services 42.Centralized agency established in each county to appraise each property in the county for ad valorem taxes? CAD (Central Appraisal District)

  1. How do you calculate Net Income? capitalization rate x market value
  2. lists everyone who has ever owned that property? chain of title 45.also known as Personal Property? Chattel
  3. What amended the Civil Rights Act of 1866 to include race, color, national origin, and religion? Civil Rights Act of 1968 47.What amended to include Sex (Male or Female)? Civil Rights Act of 1974 48.What amended to include Handicap and Familial status? Civil Rights Act of 1988
  4. a written addition to a will the replaces or revokes what was written in that persons previous will? codicil
  5. commission rate x sales price = commission
  6. Easement in gross is a(n) easement.? utility
  1. how do you calculate Commission? commission rate x sales price
  2. Property inherited by one spouse can remain separate property of that spouse. This is true about what type of property? community
  3. Texas is a property state? community
  4. The five elements that make a contract valid are...? competent parties, legal objective, offer and acceptance, contract in writing and signed
  5. the process of eminent domain is called...? condemnation
  6. There must be unity in time, title, interest and possession. -acquire ownership at the same time, title-acquire title from same source, interest-equal interest in property possession,-all owners have right to possess property? conditions upon which a joint tenancy can be made
  7. Loans that meet FMNA guidelines are called? conforming loans
  8. Something of value (dollar amount)? consideration
  9. Something of value given to one to induce another to enter into a contract is called...? consideration
  10. recording deed with county clerks office? constructive
  11. Seller financing where the seller retains title until the final payment is

called...? contract for deed

  1. seller financing and buyer does not get deed until the property has been paid for in full? contract for deed/installment contract
  2. A(n) is owned by a group of people-owned by stockholders? corporation
  3. The appraiser calculates the following using what approach? (land value) + (building replacement cost) - (depreciation)? cost approach
  4. right a husband has to his wife’s estate upon her death? curtsey rights
  5. Used to mark elevation? datum
  6. gifted private property to the public (land to city that is to be used as a park)? dedicaton
  7. a written document that transfers real estate from one owner to another? Deed
  8. The must be delivered and accepted for title to transfer? deed
  9. delivers ownership of property at another date? Deed in trust
  10. Title to real property transfers when...? the deed is delivered
  1. are put into place by developer and are a private control of property? deed restrictions/covenants
  2. 100% - depreciation % x original cost = depreciated value
  3. real estate left in a will? devise
  4. In order for an appeal to be made on a decision by the commission, it must be taken to...? the district court in the county where the administrative hearing was held
  5. Right a wife has to her husband’s estate upon his death? Dower rights
  6. money offered to seller to entice seller to go under contract? earnest money
  7. right of one person to use the property that belongs to another? easement
  8. The legal right to use another's land for a specific limited purpose. when someone is granted a(n), he is granted the legal right to use the property, but the legal title to the land itself remains with the owner of the land? easement
  9. used between two lots to allow the owner of one lot to cross the others property? Easement appurtenant
  10. easement given when one property is landlocked and needs to be given access to from someone else land? easement by necessity
  1. easement granted after dominant estate has used the property in a constant continuous and open manner for a prescribed number of years? easement by prescription
  2. scarcity, modification, improvements, permanence of investment, area preference? economic characteristics of land
  3. What is it called when government can take privately owned real estate for public use? Eminent Domain
  4. Something that extends across a property line onto the property of another? Encroachments
  5. is when under Fee Simple, one of the sticks or bundles has been removed. (Ie. mineral rights, lien, encroachment, easement etc.)? Encumbrance
  6. The neighbor's fence is on your land. This is an example of a(n) ? Encroachment
  7. Prohibits discrimination based on race color, etc. and receipt of income from a public assistance program? Equal Credit Opportunity Act of 1974
  8. gives buyer the right to demand legal title to the property when the purchase price is paid? equitable title
  9. the gradual wearing away of land and rock by water? Erosion
  10. is when one dies without a will or heirs the government takes it as

it no longer has an owner basically going back to the state? Escheat

  1. A lease with a specific starting and ending date is called? an estate for years or tenancy for years
  2. sole ownership of property-not part of community property? Estate of Severalty
  3. Contracts that are signed and carried out are called? executed
  4. contract in the process of being performed? executor contract
  5. All contracts are either or? expressed, implied expressed: in writing or oral implied: understanding
  6. What was the Fair Housing Laws or Civil Rights Act of 1866? FEDERAL LAW where the only protected class was Race. No one can discriminate because of RACE.
  7. highest and greatest type of ownership interest (Title) that can be held in real property? Fee Simple
  8. The type of ownership in which the person has the most rights is called? fee simple
  9. a gift of land by a person or GRANTOR? fee simple defeasible
  1. The three Canons for professional ethics and conduct for Real Estate Licensees are...? Fidelity, Integrity, Competency
  2. The fact that improvements to the land will take a long time to pay for them? Fixity or Permanence of Investment
  3. was personal property but then became real estate because it has been attached to the land? Fixture
  4. Four types of legal descriptions of land? Metes and Bounds, Rectangular survey system, recorded plats, and reference to documents other than maps are all...
  5. is a(n) estate in land, fee simple, and the most common ownership? freehold estate
  6. Partnerships are and? General and Limited
  7. best deed in Texas (grantor gives no defects to title)? General Warranty
  8. The deed that gives the buyer the greatest protection is called the...? general warranty deed
  9. What are the types of Deeds? General Warranty, Special Warranty, bargain/sale, quitclaim
  10. a title that cannot be defeated by a superior claim? good and indefeasible title
  1. the governments rights in land? what is 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)
  2. Deeds require the signature of? the grantor
  3. person giving up ownership? grantor
  4. When the landlord pays all of the expenses of the property and then tenant pays only the rent, this is called a(n)...? gross lease
  5. What are the types of easements? gross, necessity, prescription, and appurtenant
  6. Fee Simple, Life Estate, Defeasable Fee are all included in the. (begins with to have and to hold)? habendum clause
  7. having a physical or mental disability (including hearing, mobility, visual impairment, chronic mental illness and AIDS) that substantially limits one or more major life activities is defined as...? Handicapped
  8. Actual notice of another's interest in property is either , , or ? heard, seen, read
  9. What is Progression? higher value properties cause an increase in the value of the subject property
  1. A handwritten will is called a(n)...? holographic will
  2. holographic will is? handwritten will
  3. Texas is a State. It is a constitutional right that cannot be waived. AKA The property that you own and live in? Homestead
  4. What are the physical characteristics of land? immobility , indestructibility, non- homogeneity
  5. not a legal description? informal reference
  6. When dealing with a client it is mandatory to give them a copy of the...? "Information about brokerage services" form
  7. What is often considered the most important test of a fixture? intentions of the parties
  8. How do you calculate Yearly Interest? interest rate x loan amount
  9. person who dies without a will? intestate
  10. When an owner asks to be condemned due to their land value lowering because of negative changes made by neighboring land by the government? Inverse Condemnation
  11. Property held by two or more owners with rights of survivorship is? joint tenacy
  1. Ownership in property where owners own equal shares and has right of survivorship. - cannot be passed on to others upon their death -cannot be sold or given away either -last surviving owner takes property in severalty? Joint tenancy
  2. is the person signing the document that states that the info in the document is true. (notary public)? Jurat
  3. Using the Cost Approach, the appraiser will calculate using this equation... ? land value + building replacement cost - depreciation
  4. Inheritance of real property without a will is called? laws of descent
  5. the only contract that does not have to be in writing to be enforceable? a lease for one year or less
  6. personal priviledge given to someone to use land-not an estate or right to land? License
  7. -18 years old -a US citizen or lawfully admitted alien resident of the state Above are general Eligibility Requirements to be...? Licensed by TREC
  8. legal claim on someones property as a security for a debt? Liens
  1. an estate in land for the duration of someones life (always a gift of land/ real estate)? Life Estate
  2. lists any lawsuits on property and gives any attachments to the property? Lis penden index
  3. What are rights to another's land who borders a lake? Littoral Rights
  4. blends partnership and corp? LLC Limited Liability Corp
  5. What is Regression? lower value properties in an area cause a decline in the value of the subject property
  6. TREC promulgated forms are...? mandatory for licensees
  7. title that is free from doubt as to who owns the property? Marketable title
  8. The most common approach for the appraisal of residential properties is the...? market data approach
  9. An easement can be terminated by a(n)...? merger
  10. legal land description most used in the US using distance and direction to define and describe the boundaries of a property? metes and bounds
  11. Metes and Bounds, Rectangular survey system, recorded plats, and reference to documents other than maps: Name four types of legal

descriptions of land?

  1. Taxes charged per unit. Texas taxes per hundred dollars of value 196. monthly PITI: qualifying ratio x gross monthly income = mill rate
  2. The pledge of real property as security for a debt is called a(n) 198. mortgagees title police: lenders policy and loan policy? mortgage
  3. What are types of Liens? -mortgage, property tax lien, mechanics lien, judgement -can be voluntary or involuntary -are either specific or general:
  4. If the parties of a contract agree to terminate the contract, it is called.? mutual recission
  5. capitalization rate x market value = net income
  6. Does the grantee need to sign the deed? no
  7. The document that is evidence of a borrower's promise to repay a loan is called a(n)? note
  1. substitution of a contract with another contract (ie. counteroffer)? Novation
  2. the substitution of a new contract in place of the old one is called? novation
  3. The Civil Rights Act of 1968 does NOT offer protection against discrimination based on? occupation
  4. What are two ways to record a Deed? occupying/using the land, recording docs pertaining to property with county clerks office
  5. percentage (%) x total = part
  6. How do you calculate the Total? Part / the percentage
  7. ensures the availability of a sufficient amount to pay on anticipated claims on the trust account? Payments into Trust Account
  8. A license can be revoked or suspended by the TREC 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
  9. Part / the total = percentage
  10. How do you calculate Sales Price? percentage x list price
  11. How do you calculate Assessed Value? percentage x market value
  1. How do you calculate Profit? percentage x original cost
  2. How do you calculate Part? percentage x total
  3. How do you calculate usable area? percent x total area
  4. Plants (Annual or fructus industrials or emblements) are classified as...? Personal Property
  5. Things not attached to the land are considered...? Personal Property
  6. What is the acronym for the governments rights in 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)
  7. immobility, indestructibility, and non-homogeneity are all...? Physical Characteristics of land
  8. 1% of the loan amount is called a(n)? point
  9. in real estate applies to planning laws, building codes, fire codes, rent control and health codes? Police Power
  10. The major advantage of a Deed of Trust to a lender is? power of sale
  11. Where individuals go to borrow money is called the...? primary market
  12. Performance is a duty of the? principal
  1. determines if the will meets the requirement of the law? probate court
  2. percentage(%) x original cost = profit
  3. What is it called when higher value properties cause an increase in the value of the subject property? progression
  4. TREC are mandatory for licensees. promulgated forms
  5. What is true about community property? Property inherited by one spouse can remain separate property of that spouse.: Texas is a community property state.
  6. The highest priority lien against real property is.? property tax
  7. The purpose of the TRELA is to? protect the public against unscrupulous brokers and salespersons
  8. How do you calculate Monthly PITI? qualifying ratio x gross monthly income
  9. is when court holds hearings on ownership of property and any invalid claims or disputes will be removed by the court? quiet title suit
  10. in divorce gives rights to the property to the other spouse? quitclaim
  1. All documents concerning must be recorded at county clerks office in the county where the property is located? real estate
  2. A mortgage becomes a lien when it is.? recorded
  3. Legal land description which divides larger plats into smaller plots when land is divided in lots? Recorded plat
  4. When land is divided into plots? recorded plat
  5. legal land description using latitude, longitude lines, standard parallels and base lines to divide the earth into ares? Rectangular survey system
  6. If a seller asks agent to discriminate, the agent must...? refuse to take the listing
  7. What is it called when lower value properties in an area cause a decline in the value of the subject property? regression
  8. many people can come together and invest in real estate -investors are the beneficiaries who buy shares in the company (beneficial interest) -income tax is only paid at the beneficiaries level? REIT Real Estate Investment Trust
  9. dry land that results when water withdraws from the land? Reliction
  10. When a grantor transfers a title but retains some rights it is called...? reservation
  1. regulates closings on 1-4 residential properties with federally related financing? RESPA
  2. is where in joint tenancy if one partner dies, his share goes to the remaining partners? right of survivorship
  3. What are rights to another's land who borders a stream or river? Riparian Rights
  4. A landowner with a well is allowed to pump water from under his property? rule capture
  5. limited to 200 acres for a married couple, 100 for a single person? rural homestead
  6. percentage(%) x list price = sales price
  7. What are the economic characteristics of land? scarcity, modification, improvements, permanence of investment, area preference
  8. 100% - commission rate x sales price = seller's net
  9. When property has only one owner it is called? severalty
  10. What the owner receives through Eminent Domain? Severance Damages
  1. Area Preference is called? Situs
  2. Which economic characteristic of land describes location preference from an economic point of view? situs
  3. Used in commercial trans saying owner has done nothing to encumber the title during ownership? Special Warranty
  4. The law requiring real estate contracts to be in writing is called the...? statue of frauds
  5. Statute of Frauds: law that requires some documents (deeds included) to be in writing and signed in order to be enforceable by law
  6. Illegal practice of directing home seekers to a particular neighborhood based on fair housing protected classes? Steering
  7. Taking buyers to or away from a particular area based on any of the protected categories under Fair Housing Laws is called...? steering or channeling
  8. When a buyer purchases a property and takes over the payments and liability on an existing loan it is called a(n)...? straight assumption
  9. A property description that is considered an informal reference is. tax: tax rate x assessed value = a street address
  1. Which of the following is not a characteristic of value of land? (type out the answer) -Demand -Utility -Scarcity -Taxes -Transferability? taxes
  2. How do you calculate Tax? tax rate x assessed value
  3. form of ownership used by married couples who do not live in a state with community property-has downer and curtesy rights? Tenancy by entirety
  4. two or more people acquire property but ownership is not equal? Tenants in common
  5. person who dies leaving a will? testate
  6. method of attachment (annexation) Fitness or adaptation to property Intention of the parties? Tests of a fixture
  7. sets insurance premiums based on the sale price of property and is paid at closing of property? Texas Board of Insurance
  8. has 13 Members (6 brokers, 6 lawyers, 1 public)? Texas Real Estate Borker Lawyer Committee
  9. Under what circumstances can a person be called a "Realtor?" That agent has to join the "NAR" National Association of Realtors
  1. Under Federal Law, if a property was built before 1978 the seller must disclose...? that the property may contain lead based paint
  2. states what the title covers and does not cover? title commitment
  3. policy that will insure against losses from title defects and against errors in title examination? title insurance
  4. Part / the percentage(%) = total
  5. Areas of earth = 36 Sq. Miles? townships
  6. claimant can track the time they had possessed the property onto the time the prior claimant possessed the property? Tracking
  7. attached to the property under a commercial lease? Trade fixture
  8. has 9 Members (6 brokers, 3 public) appointed by governor. They serve 6 year staggered term? Trec Commision Membership
  9. gross, necessity, prescription, and appurtenant are all...? types of easements
  10. -mortgage, property tax lien, mechanics lien, judgement -can be voluntary or involuntary -are either specific or general? Types of liens
  1. a promise in exchange for an act (option paragraph in a sales contract)? unilateral contract
  2. 1 sq. mile or 640 acres = unit
  3. When an agent has unlimited authority to act on behalf of the client it is called...? universal authority
  4. homestead limited to 10 acres? Urban homestead
  5. percent (%) x total area = usable area
  6. Easement in gross is a(n) easement? utility