TEXAS PRINCIPLES FINAL Exam Questions and Verified Answers, Exams of Real Estate Management

Download TEXAS PRINCIPLES FINAL Exam Questions and Verified Answers and more Exams Real Estate Management in PDF only on Docsity! 1 TEXAS PRINCIPLES FINAL Exam Questions and Verified Answers Latest Updates 2024 1. How much is the largest fine for any single violation of the Fair Housing Act? $110,000 2. What is a point? 1% of the loan amount 3. 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 4. 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 5. How long does a consumer have to file a complaint with TREC against a licensee? 4 years 6. interest rate x loan amount = yearly interest 7. TREC Commission members serve year terms. 6 year staggered 8. The TREC Commission consists of how many members? How many of them are brokers? How many of them are public? 9, 6, 3 9. 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 10. 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 11. 1 acre= how many sq ft? 43,560 12. 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 13. How do you calculate Depreciated Value? 100% - depreciation % x original cost: 14. A contract that can be canceled by one of the parties is called? voidable: 15. A complete history of the title of a piece of property is called an? abstract 16. Condensed history of all docs that have been recorded affecting the title of the property? abstract title 4 54. Texas is a property state? community 55. The five elements that make a contract valid are...? competent parties, legal objective, offer and acceptance, contract in writing and signed 56. the process of eminent domain is called...? condemnation 57. 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 58. Loans that meet FMNA guidelines are called? conforming loans 59. Something of value (dollar amount)? consideration 60. Something of value given to one to induce another to enter into a contract is called...? consideration 61. recording deed with county clerks office? constructive 62. Seller financing where the seller retains title until the final payment is called...? contract for deed 63. seller financing and buyer does not get deed until the property has been paid for in full ? contract for deed/installment contract 64. A(n) is owned by a group of people-owned by stockholders? corporation 65. The appraiser calculates the following using what approach? (land value) + (building replacement cost) - (depreciation)? cost approach 66. right a husband has to his wife’s estate upon her death? curtsey rights 71. Used to mark elevation? datum 72. gifted private property to the public (land to city that is to be used as a park) ? dedicaton 73. a written document that transfers real estate from one owner to another? Deed 74. The must be delivered and accepted for title to transfer? deed 75. delivers ownership of property at another date? Deed in trust 76. Title to real property transfers when...? the deed is delivered 5 77. are put into place by developer and are a private control of property? deed restrictions/covenants 78. 100% - depreciation % x original cost = depreciated value 79. real estate left in a will? devise 80. 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 81. Right a wife has to her husband’s estate upon his death? Dower rights 82. money offered to seller to entice seller to go under contract? earnest money 83. right of one person to use the property that belongs to another? easement 84. 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 85. used between two lots to allow the owner of one lot to cross the others property? Easement appurtenant 86. easement given when one property is landlocked and needs to be given access to from someone else land? easement by necessity 87. 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 88. scarcity, modification, improvements, permanence of investment, area preference? economic characteristics of land 89. What is it called when government can take privately owned real estate for public use? Eminent Domain 90. Something that extends across a property line onto the property of another? Encroachments 91. is when under Fee Simple, one of the sticks or bundles has been removed. (Ie. mineral rights, lien, encroachment, easement etc.) ? Encumbrance 92. The neighbor's fence is on your land. This is an example of a(n) ? Encroachment 6 93. Prohibits discrimination based on race color, etc. and receipt of income from a public assistance program? Equal Credit Opportunity Act of 1974 94. gives buyer the right to demand legal title to the property when the purchase price is paid? equitable title 95. the gradual wearing away of land and rock by water? Erosion 96. 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 97. A lease with a specific starting and ending date is called ? an estate for years or tenancy for years 98. sole ownership of property-not part of community property? Estate of Severalty 99. Contracts that are signed and carried out are called? executed 100. contract in the process of being performed? executor contract 101. All contracts are either or ? expressed, implied expressed: in writing or oral implied: understanding 102. 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. 103. highest and greatest type of ownership interest (Title) that can be held in real property? Fee Simple 104. The type of ownership in which the person has the most rights is called? fee simple 145. a gift of land by a person or GRANTOR? fee simple defeasible 146. The three Canons for professional ethics and conduct for Real Estate Licensees are...? Fidelity, Integrity, Competency 147. The fact that improvements to the land will take a long time to pay for them? Fixity or Permanence of Investment 148. was personal property but then became real estate because it has been attached to the land? Fixture 149. Four types of legal descriptions of land? Metes and Bounds, Rectangular survey system, recorded plats, and reference to documents other than maps are all... 9 184. an estate in land for the duration of someones life (always a gift of land/ real estate)? Life Estate 185. lists any lawsuits on property and gives any attachments to the property? Lis penden index 186. What are rights to another's land who borders a lake? Littoral Rights 187. blends partnership and corp? LLC Limited Liability Corp 188. What is Regression? lower value properties in an area cause a decline in the value of the subject property 189. TREC promulgated forms are...? mandatory for licensees 190. title that is free from doubt as to who owns the property? Marketable title 191. The most common approach for the appraisal of residential properties is the...? market data approach 192. An easement can be terminated by a(n)...? merger 193. legal land description most used in the US using distance and direction to define and describe the boundaries of a property? metes and bounds 194. Metes and Bounds, Rectangular survey system, recorded plats, and reference to documents other than maps: Name four types of legal descriptions of land? 195. Taxes charged per unit. Texas taxes per hundred dollars of value 196. monthly PITI: qualifying ratio x gross monthly income = mill rate 197. The pledge of real property as security for a debt is called a(n).... 198. mortgagees title police: lenders policy and loan policy ? mortgage 199. What are types of Liens? -mortgage, property tax lien, mechanics lien, judgement -can be voluntary or involuntary -are either specific or general: 200. If the parties of a contract agree to terminate the contract, it is called. ? mutual recission 201. capitalization rate x market value = net income 202. Does the grantee need to sign the deed? no 203. The document that is evidence of a borrower's promise to repay a loan is called a(n)? note 10 204. substitution of a contract with another contract (ie. counteroffer)? Novation 205. the substitution of a new contract in place of the old one is called? novation 206. The Civil Rights Act of 1968 does NOT offer protection against discrimination based on? occupation 207. What are two ways to record a Deed? occupying/using the land, recording docs pertaining to property with county clerks office 208. percentage (%) x total = part 209. How do you calculate the Total? Part / the percentage 210. ensures the availability of a sufficient amount to pay on anticipated claims on the trust account ? Payments into Trust Account 211. 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 212. Part / the total = percentage 213. How do you calculate Sales Price? percentage x list price 214. How do you calculate Assessed Value? percentage x market value 215. How do you calculate Profit? percentage x original cost 216. How do you calculate Part? percentage x total 217. How do you calculate usable area? percent x total area 218. Plants (Annual or fructus industrials or emblements) are classified as... ? Personal Property 219. Things not attached to the land are considered...? Personal Property 220. 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) 221. immobility, indestructibility, and non-homogeneity are all... ? Physical Characteristics of land 11 222. 1% of the loan amount is called a(n) ? point 223. in real estate applies to planning laws, building codes, fire codes, rent control and health codes? Police Power 224. The major advantage of a Deed of Trust to a lender is? power of sale 225. Where individuals go to borrow money is called the...? primary market 226. Performance is a duty of the .... ? principal 227. determines if the will meets the requirement of the law? probate court 228. percentage(%) x original cost = profit 229. What is it called when higher value properties cause an increase in the value of the subject property? progression 230. TREC are mandatory for licensees. promulgated forms 231. What is true about community property? Property inherited by one spouse can remain separate property of that spouse.: Texas is a community property state. 232. The highest priority lien against real property is .. ? property tax 233. The purpose of the TRELA is to .. ? protect the public against unscrupulous brokers and salespersons 234. How do you calculate Monthly PITI? qualifying ratio x gross monthly income 235. is when court holds hearings on ownership of property and any invalid claims or disputes will be removed by the court? quiet title suit 236. in divorce gives rights to the property to the other spouse? quitclaim 237. All documents concerning must be recorded at county clerks office in the county where the property is located? real estate 238. A mortgage becomes a lien when it is. ? recorded 239. Legal land description which divides larger plats into smaller plots when land is divided in lots? Recorded plat 240. When land is divided into plots? recorded plat