Texas Real Estate National Exam Test Prep Multiple Choice Questions with Verified Answers, Exams of Nursing

Download Texas Real Estate National Exam Test Prep Multiple Choice Questions with Verified Answers and more Exams Nursing in PDF only on Docsity! Texas Real Estate National Exam Test Prep Multiple Choice Questions with Verified Answers Latest Update 2024 1. A property owner has decided to do some landscaping work on his yard. He has planted a tree surrounded by some flowering shrubs. The tree and shrubs are an example of: a. encroachments b. improvements c. surface rights d. emblements - Correct Answer B 2. A property owner has a waterfront lot on a stream. He has the right to use the water from the stream. What is this right called? a. riparian b. littoral c. appropriative d. appropriation - Correct Answer A 3. A tenant is aware that his lease will expire at the end of the month. He has begun to disassemble his display cabinets and shelves. Which of the following statements about this is true? a. he cannot take them without first obtaining written permission from the landlord b. if the landlord wants them, he can pay the tenant and the tenant must leave them c. the tenant can take these as they are trade fixtures d. he must disclose to the landlord that he plans to take them - Correct Answer C 4. A seller is attending the closing on his property. The title company has discovered an unsatisfied M&M lien on the property. Which of the following is the most likely reason for the lien? a. a workman on the property left tools behind b. unpaid personal property taxes c. plumbing work that was completed but never paid for d. a judgment - Correct Answer C 5. A listing agent went to inspect a seller's property hoping to list it for sale. The seller told the listing agent that his neighbor's satellite dish trespasses on his property. This is an example of: a. annexation b. encroachment c. appurtenance d. license - Correct Answer B 6. A father gives his son a life estate on a property. The son leases the property. The tenant dies. What happens to the property? a. it reverts to the father b. it goes to the remainderman c. it goes back to the son until he dies d. it goes to the son's heirs - Correct Answer C 7. A man leaves his second wife a life estate in their home after which the property goes to his children from his first marriage. The children: a. are remaindermen b. have fee simple determinable c. have a life estate d. have a dominant interest in the property - Correct Answer A 8. Which of the following statements about an easement is true? a. an easement is a benefit to the servient property owner b. an easement is an encroachment c. an easement is a benefit to the dominant property owner d. an easement in gross belongs to or passes with the land - Correct Answer C 9. P, Q and R are joint tenants. P wants to sell the property, but Q and R do not. What can P do? a. file an injunction against the other owners b. seek a writ of execution c. file a suit for partition d. get a release - Correct Answer C 10.A, B and C are joint tenants. C dies. B sells his share to D. What type of ownership do A and D have? a. joint tenants b. tenants by the entirety c. tenants in common d. tenants in severalty - Correct Answer C consumer debt. They have found a property that they would like to purchase now. What type of agreement can they enter into with a seller that will allow them to occupy the property now and purchase it within the six months? a. sale and leaseback b. right of first refusal c. lease with an option to buy d. graduated lease - Correct Answer C 23.Tenants have signed a 3-year lease on a property. In the second year the owner dies and his heirs inherit the property. They give the tenants notice to vacate. What is true? a. the tenants can stay until the end of the lease b. the tenants have to move if the new owners give them 30 days notice c. the tenants must move immediately d. the tenants can stay until the new owner has them evicted - Correct Answer A 24.A developer decides to build a commercial property in the middle of a residential subdivision. What is required? a. approval from surrounding property owners b. a variance c. a non-conforming use designation d. this would violate deed restrictions and cannot be done - Correct Answer B 25.A zoning ordinance would affect which of the following? a. a buffer zone b. traffic at certain hours of the day c. the concentration of housing in a residential area d. the style and appearance of construction - Correct Answer C 26. If a person dies without a will, who receives their estate: a. spouse and children b. siblings c. escheat to state d. parents - Correct Answer A 27.What are the requirements/criteria for real estate to have value? a. Demand, Utility, Scarcity, Transferability b. Demand, Utility, Supply, Taxability c. Demand, Usury, Scarcity, Taxability d. Deed, Usury, Supply, Transferability - Correct Answer A 28.What principle of value defines the most important factor for appraisal? a. Conformity b. Competition c. Highest and Best Use d. Substitution - Correct Answer C 29.What approach would an appraiser most likely use to value a residential rent house in a neighborhood where a majority of the homes are leased? a. market data approach b. GRM c. cost approach d. income approach - Correct Answer D 30.A licensed broker is advertising that he will perform a free appraisal if you contact him for a listing appointment. He is not in violation of the law: a. if he is a licensed appraiser b. since he is not charging anything for the appraisal c. as long as the seller doesn't intend to use the appraisal to secure financing d. as long as the property is used for residential purposes only - Correct Answer A 31.Which of the following is NOT an example of functional obsolescence? a. an unpopular floorplan b. a property that lacks updating for modern technology c. curb appeal d. deferred maintenance - Correct Answer D 32.According to the Statute of Frauds, which of the following leases must be in writing? a. a lease for one year or less b. a lease for more than 6 months c. a lease for more than 1 year d. all leases must be in writing to comply with the Statute of Frauds - Correct Answer C 33.Your client is an investor who would like to have the right to purchase a commercial tract for $5 million for the next six months. What type of contract should he enter into with the seller? a. an earnest money contract b. an option contract c. a bilateral contract d. a right of first refusal - Correct Answer B 34.A signed sales contract that has not yet gone to closing is: a. fully executed b. executory c. unilateral d. voidable - Correct Answer B 35.When does an offer become a contract? a. when it is accepted and acceptance is communicated b. when it is accepted c. when it is closed d. at closing and funding - Correct Answer A 36.Which of the following statements is true about the duties of an agent according to the common law of agency? a. an agent must disclose all facts to clients and customers b. an agent must treat both clients and customers with honesty and fairness c. an agent supports and defends the position of all customers d. an agent has a fiduciary duty to clients and customers - Correct Answer B 37.A property manager is hired and signs a management agreement with the owner. At this time, the property manager is: a. a special agent b. a universal agent c. a general agent d. a limited agent - Correct Answer C 38.A buyer and seller have negotiated a contract on the seller's property with a closing set for June 14th, time is of the essence. On June 12th the listing agent calls the buyer's agent and tells him the seller will be unable to close on the 14th. The seller can close on the 16th. At this time, what is true? a. the contract is terminated b. the contract is void c. the contract is voidable by the buyer d. the contract is voidable by either party - Correct Answer C a. 1968 b. 1972 c. 1978 d. 1995 - Correct Answer C 50.Which of the following statements about lead is NOT true? a. the lead paint disclosure is required for all properties built before 1978 b. the lead paint disclosure allows an inspection for 10 days after the date of the contract c. the lead paint disclosure allows a buyer to waive the right to an inspection d. the property owner must remediate the presence of lead - Correct Answer D 51.CERCLA is administered by: a. the EPA b. the CFPB c. HUD d. the superfund - Correct Answer A 52.Which of the following used in 1978 is both extremely hazardous and friable? a. lead b. asbestos c. radon d. EMFs - Correct Answer B 53.Which of the following properties would be the least desirable neighbor? a. a landfill b. greenfields c. brownfields d. blackfields - Correct Answer C 54.A seller must keep a copy of the lead paint disclosure he provided to the buyer for: a. 1 year b. 2 years c. 3 years d. The seller does not have to keep a copy after her provides it to the buyer. - Correct Answer C 55. It has been found that mold can develop due to: a. installing gutters on a house b. using blown in insulation c. air tight windows and doors found in newer construction d. using recycled building materials - Correct Answer C 56.General liability insurance will: a. protect a company's assets if someone is injured on company property b. shield a broker for liability for the actions of sales license holders he sponsors c. protect for property damage caused by flooding d. replace E&O insurance if a broker is incorporated. - Correct Answer A 57.A condominium owner's policy will most likely cover the owner if: a. someone drowns in the condominium pool b. there is a fire in the elevator c. a guest slips in the kitchen d. someone gets hurt in the hallway - Correct Answer C 58.A condominium complex has liability insurance. This is least likely to cover: a. a unit owner's carpet damaged by a broken water pipe b. faulty equipment in the gym results in an injury to a resident c. a car accident in the parking lot hurts a visitor to the complex d. a resident has a heart attack in the lobby - Correct Answer A 59.Accurate record keeping is the responsibility of all brokers. If a broker's computers are stolen, what steps could have been taken to protect records? a. Offsite or cloud storage b. data encryption c. an alarm system d. an armed security guard - Correct Answer A 60.A license holder has just attended a training seminar about technology in real estate and is excited about using social media with her clients. Which of the following statements about social media in real estate is NOT true? a. an agent advertising client property on social media needs written permission from the client b. an agent advertising on social media must comply with all te same laws and rules as print and broadcast advertising c. an agent with permission to advertise a property on social media does not have to worry about protecting confidential information about the client d. the use of social media in real estate advertising is growing - Correct Answer C 61.A sales agent is showing a property. He trips in the house causes major damage to property of the owner. What type of insurance will cover this accident? a. broker E&O insurance b. liability insurance c. title insurance d. a FEMA policy - Correct Answer B 62.Prior to its amendments, the Civil Rights Act of 1968 prohibited discrimination based on: a. AIDS b. national origin c. sexual preference d. age - Correct Answer B 63.An agent working with immigrant buyers must be careful: a. because the buyers might not speak English well b. because the agent may not speak the buyer's language c. not to steer the buyers to a neighborhood based on the language they speak d. because the buyers might want to use contracts in their own language - Correct Answer C 64.An agent is accused of discrimination. What will HUD do? a. fine the agent $50,000 b. try mediation followed by a lawsuit if mediation fails c. revoke the agent's license d. send the agent to jail for one year - Correct Answer B 65.A mobility impaired tenant has leased an apartment in a complex with unassigned parking. He has requested an assigned reserved space near to his unit. What is true? a. the landlord does not have to provide a special space for this tenant b. the landlord only has to provide an assigned space if the tenant requests it before leasing the apartment c. the landlord must provide an assigned reserved space for the tenant d. the landlord must provide an assigned reserved space 76.When did the second amendment of the Federal Fair Housing Act go into effect? a. January 1, 1988 b. January 1, 1989 c. March 12, 1988 d. March 12, 1989 - Correct Answer D 77.What is the purpose of a property management trust account? a. to hold collected rents b. to hold reserve funds for maintenance and repairs c. to hold tenant security deposits d. to hold funds escrowed for taxes and insurance - Correct Answer C 78.Regulation Z applies to: a. all real estate loans b. a $26,000 loan c. all luxury car loans d. real estate loans on residential property only - Correct Answer A 79.The main purpose of Regulation Z is: a. to equalize credit b. to notify borrowers of the true cost of credit c. to punish bad mortgage brokers d. to create zoning rules - Correct Answer B 80.What is a requirement of the CFPB? a. Lenders must provide borrowers with the LE form at the time of or within three business days of application b. Lender's must provide borrowers with a good faith estimate of closing costs c. Lender's must provide borrowers with a CD form at the time of loan application or within three days of application d. The updated CD must be made available to the borrower at least one business day before closing. - Correct Answer A 81.Which of the following closings would be covered by RESPA? a. a mobile home b. a retail shopping center c. an apartment complex d. a condominium - Correct Answer D 82.When does the buyer under contract for deed get title to the property? a. when the contracts are signed and delivered b. when the final loan payment is made c. when the buyer takes occupancy of the property d. when the seller dies - Correct Answer B 83.What is another name for Contract for Deed? a. installment contract b. real estate sales contract c. deed of trust d. non-conforming loan - Correct Answer A 84.What department of the government oversees the FHA insurance program? a. HUD b. CFPB c. EPA d. VA - Correct Answer A 85.A buyer is aware that interest rates should go down over the next few months. What type of loan should he get to enable him to buy now and take advantage of declining rates in the future? a. term loan b. Reverse Annuity Mortgage c. ARM d. balloon loan - Correct Answer C 86.Which of the following is unlikely to have a negative impact on a seller's credit score? a. a short sale b. a foreclosure c. a straight assumption d. an assumption subject to - Correct Answer C 87. In rental properties, increased demand can be the result of: a. a shortage of renters b. high mortgage interest rates c. low bond interest d. functional obsolescence - Correct Answer B 88.Which of the following would not be eligible for a VA loan? a. a disabled veteran b. the parents or siblings of a veteran c. an active duty veteran d. a retired veteran - Correct Answer B 89.What is required of a loan servicer before foreclosing on a VA loan? a. the VA must be notified before the foreclosure b. the lender must have proof that the borrower received the foreclosure notice c. the lender must advertise the foreclosure in the local newspaper d. there are no extra lender requirements for foreclosure of a VA loan - Correct Answer A 90.Who must be notified to take money out of the trust account in a real estate transaction? a. the buyer b. the seller c. both buyer and seller d. all parties associated with the transaction - Correct Answer C 91.How is earnest money recorded on the closing disclosure? a. Debit to the seller b. Debit to the buyer c. Credit to the seller d. Credit to the buyer - Correct Answer D 92.What type of mortgage loan would allow the property owners to borrow additional funds at future dates? a. An HELOC b. An ARM c. A package mortgage d. A participation loan - Correct Answer A 93.A seller has received $225,000.00 for the sale of his home. This represents a 20% profit. What did he pay for the house when he purchased it? a. $180,000 b. $187,500 c. $175,000 d. $205,000 - Correct Answer B