Term
An unimproved lot is located in teh service area of a water supply corporation. The seller is sugject to the notice requirements relating to a service provider. What is the buyer's statutory remedy if the seller fails to give the written notice REQUIRED by law?
a. Sue for specific performance of the notice requirements.
b. Terminate the purchase contract with the seller.
c. Seek an award of damages in court not to exceed $10,000 plus attorney fees.
d. Sue the seller and title company for punitive damages. |
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Definition
| b. Terminate the purchase contract with the seller. |
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Term
To be eligible for a real estate license, an individual MUST
a. be at least 21 years of age.
b. prove competence by completing a number of core courses.
c. satify the Commission as to the individual's integrity.
d. be a resident of Texas for at least 60 days. |
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Definition
| c. satify the Commission as to the individual's integrity. |
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Term
Who can pay money to a licensed salesperson to perform sales activities for a house a broker has listed for sale?
a. The seller under the listing.
b. Any licensed broker involved in the transaction.
c. The salesperson's sponsoring broker and no one else.
d. The related entities in the sale, the title company, or the or the mortgage company. |
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Definition
| c. The salesperson's sponsoring broker and no one else. |
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Term
According to The Real Estate License Act of Texas which one of the following actions is a fair and impartial act for an intermediary?
a. Appointing associated licenses to work with the parties.
b. Appointing subagents to work with the parties.
c. Agreeing to represent an owner.
d. Agreeing to represent a buyer. |
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Definition
| a. Appointing associated licenses to work with the parties. |
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Term
As marketing promotion, a real estate salesperson offers property for sale by lottery. This practice is
a. Lawful since the adoption of the Texas State Lottery.
b. Prohibited unless authorized by the owner in writing.
c. Grounds for suspension or revocation of license.
d. Lawful if a rea estate lotter license has been issued. |
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Definition
| c. Grounds for suspension or revocation of license. |
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Term
When the association of a salesperson with the sponsoring broker is terminated, the broker MUST
a. Immediately return the salesperson's license to the Commission.
b. Return the salesperon's license to the Commission within 10 days.
c. Return the salesperson's license to the Commission within 30 days.
d. Have the salesperson apply for an inactive license. |
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Definition
| a. Immediately return the salesperson's license to the Commission. |
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Term
When negotiating contracts binding the sale or lease of property, a real estate license MUST use an appropriate Texas Real Estate Commission promulgated form unless another contract form has been prepared and is REQUIRED by the
a. Lender's appraiser.
b. Owner of the property.
c. Property surveyor.
d. Title company's attorney. |
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Definition
| b. Owner of the property. |
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Term
An individual is exempt from real estate licensure in Texas when performing which on of he following activities?
a. Selling real estate for another person.
b. Offering an employer's property for rent.
c. Procuring prospects for hte purpose of renting particular properties.
d. Locating apartment units for a tenant. |
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Definition
| b. Offering an employer's property for rent. |
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Term
bsent an agreement, spouse's rental income from separate property is
a. Community property.
b. That spouse's separate property.
c. Not subject to reimbursement by the other spouse on divorce.
d. Not income to the community. |
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Definition
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Term
Who is responsilbe to the Texas Real Estate Commission, the public, and the clients for the acts of a salesperson?
a. Only the salesperson.
b. Salesperson's sponsoring broker.
c. Texas Association of Realtors.
d. Attorney general. |
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Definition
| b. Salesperson's sponsoring broker. |
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Term
A buyer contracts to purchase a previously occupied single-family residence. Teh buyer did NOT receive a copy of the Seller's Disclosure Notice before signing the contract. According to the Texas Property Code, the buyer has a right to
a. Sue for three times the amount of the earnest money.
b. File a complaint with the Texas Real Estate Commission.
c. Terminate the contract withing 7 days after receiving notice.
d. Reduce the sales price by the necessary repair costs. |
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Definition
| c. Terminate the contract withing 7 days after receiving notice. |
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Term
Combining a principal's funds with the licensee's prersonal funds is
a. Considered to be commingling.
b. Establishing escrow account.
c. Necessary in real estate speculation.
d. Standard practice to ensure a commission. |
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Definition
| a. Considered to be commingling. |
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Term
When MUST an existing agency relationship be disclosed to another party to a proposed transaction?
a. During a substantive discussion.
b. Before submitting an offer.
c. At no time during negotiations.
d. At the time of licensee's first contact. |
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Definition
| d. At the time of licensee's first contact. |
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Term
A standard contract form has been deeloped for
a. Sale of Single-family residences.
b. Sale of Multi-family (five or more) residences.
c. Commercial conventional sales, leases, and options.
d. Industrial conventional sales, leases, and options. |
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Definition
| a. Sale of Single-family residences. |
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Term
What information is in the writen statutory statement that a licensee MUST provide for a consumer at their first face-to-face meeting?
a. Duties of the broker representing on of the parties or acting as an intermediary.
b. Disclosure by the seller of defects in the property.
c. Rights of hte consumer filing a complaint with the Texas Real Estate Commission.
d. Rights of the consumer filing a suit to be paid out of the recovery fund. |
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Definition
| a. Duties of the broker representing one of the parties or acting as an intermediary. |
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Term
A single woman dies intestate. In regards to her surviving heirs, her property will
a. Escheat to the State of Texas.
b. Be distributed according to her will.
c. Go to her parents, if they have survived her.
d. Be distributed according to the law of descent and distribution. |
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Definition
| d. Be distributed according to the law of descent and distribution. |
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Term
A husband and wife live in one unit of a duplex that they own with title held as joint tenants. The husband's will leaves all his possessions to a son by a former marriage. If he husband were t odie, which of the following statements would BEST describe the son's rights to the duplex?
a. As an heir, the son will get nothing of the duplex.
b. Because the couple have lived in one of the units, the son will inherit the second unit.
c. The son will have a one-half interest with the current wife as a joint tenant.
d. The son will have a one-half interest with the current wife as tenants-in-common. |
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Definition
| a. As an heir, the son will get nothing of the duplex. |
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Term
Which of the following estates represents teh BEST type of ownership in real estate?
a. Fee simple absolute.
b. Life.
c. Defeasible Fee.
d. Remainder. |
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Definition
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Term
Usury laws were enacted to protect the
a. Lender.
b. Broker.
c. Seller.
d. Borrower. |
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Definition
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Term
The owner of condominium A has grounds to file a lawsuit for encroachment against the owner of a neighboring unit if the neighbor
a. Constructs an addition on her garage without a building permit.
b. Leaves her bicycle in the driveway of condominium A for over a year.
c. Presents the owern of condomiuium A with a bill to cover the costs of repairing water damage to their common wall.
d. Permanently installs a satellite dish that extends over teh fence into the patio of condominium A. |
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Definition
| d. Permanently installs a satellite dish that extends over teh fence into the patio of condominium A. |
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Term
A variance allows an individual landowner to deviate from
a. Deed restrictions.
b. Zoning requirements.
c. Restrictive covenants.
d. Building codes. |
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Definition
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Term
A competitive market analysis, or CMA, is a variation of which approach to estimating the value of a property?
a. Supply and demand.
b. Sales comparison.
c. Cost.
d. Income capitalization. |
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Definition
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Term
A homeowner wants to add a second bathroom to his home. He lives in a deteriorating neighborhood. Which principle of valuation should the homeowner use to determine whether the addition will increase or decrease the value of his property?
a. Contribution.
b. Plottage.
c. Balance.
d. Anticipation. |
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Definition
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Term
Two parties orally promise one thing, but write and sign something else. Which contract will prevail?
a. The oral contract.
b. The written contract.
c. The contract first agreed to.
d. Either contract, depending on individual circumstances. |
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Definition
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Term
In the cost approach to valuation, which of the following formulas is used to estimate value?
a. Reproduction or replacement cost less depreciation plus land.
b. Reproduction or replacement cost plus depreciation plus land.
c. Cost of land depreciated plus cost of improvements.
d. Cost of replacement plus accrual for depreciation. |
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Definition
| a. Reproduction or replacement cost less depreciation plus land. |
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Term
The right of a borrower to redeem property during foreclosure proceedings, before the property is sold, is know as
a. Repossession.
b. Equitable redemption.
c. Statutory redemption.
d. Defeasance. |
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Definition
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Term
An investment property returns 20% of its value or $35,000 annually. What is the value of the property?
a. $175,000
b. $700,000
c. $840,000
d. None of the above. |
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Definition
a. $175,000
$175,000 x 20% = $35,000 |
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Term
A provider of construction materials may give constructive notice of his unpaid invoices by
a. Filing a judgement with the court in the residence jurisdiction of the builder.
b. Taking an ad in the legal notices section of teh local newspaper.
c. Obtaining a mechanic's lien against the subject property.
d. Advising potential buyers of the debts of hte builder. |
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Definition
| c. Obtaining a mechanic's lien against the subject property. |
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Term
What type of loan allows the lender to receive a portion of the profit when the property is sold?
a. Adjustable rate mortgage.
b. Graduated payment mortgage.
c. Shared appreciation mortgage.
d. Reverse annuity mortgage. |
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Definition
| c. Shared appreciation mortgage. |
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Term
If you advertise the simple interest for a loan, which of the following items need NOT be included in the advertisement to comply with Regulation Z?
a. Down payment.
b. Finance chares.
c. Annual percentage rate.
d. Principal, Interest, Taxes and Insurance |
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Definition
| d. PITI - Principal, Interest, Taxes and Insurance |
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Term
Points are figured on the
a. Negotiated sale price.
b. Sale price less commission.
c. Loan amount.
d. Mortgage amount plus closing costs. |
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Definition
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Term
The agent owes care, accounting, confidentiality, and disclosure to the
a. Client.
b. Buyer.
c. Broker.
d. Public. |
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Definition
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Term
A deed conveying land to two parties on a 1/3 and 2/3 share basis establishes a
a. tenancy by the entirety.
b. Joint tenancy.
c. Long term lease.
d. Tenacy in common. |
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Definition
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Term
Two competing brokers privately agree that they will NOT list residential property at less than a certain commission rate. What laws have the violated?
a. Fair housing laws.
b. Laws of agency.
c. Antitrust laws.
d. Agency disclosure laws. |
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Definition
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Term
An owner sold a property for $125,000. She paid an existing loan balance of $53,000 and closing costs of $2,000. The commission to the broker was 7% of he sales price. To the nearest dollar, how much did the owner receive from the sale of her house?
a. $61,250
b. $65,100
c. $78,750
d. None of the above. |
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Definition
a. $61,250
$125,000 x 7% = $8,750.000 + $2,000 + $53,000 = $63,750 - $125,000 = $61,250 |
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Term
Which of the following elements is necessary for a valid deed?
a. Signature of the grantee.
b. Full dollar amount of purchase price.
c. Recording the document.
d. Delivery and acceptance. |
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Definition
| d. Delivery and acceptance. |
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Term
An FHA loan is one which is
a. Funded by the Federal Housing Administration.
b. Insured by the Federal Housing Administration.
c. Arranged by the Federal Housing Administration.
d. Available only to low income families. |
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Definition
| b. Insured by the Federal Housing Administration. |
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Term
A broker manages a small apartment complex. Under the management contract the broker arranges for maintenance, advertising and bookkeeping, and signs all of he leases with the tenants as agent for the owners. In this scenario, the broker is a
a. General agent.
b. Special agent.
c. Subagent.
d. Dual agent. |
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Definition
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Term
Private controls on land use typically are in the form of
a. Building codes.
b. Restrictive deed convenants.
c. Zoning laws.
d. Floodplain management regulations. |
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Definition
| b. Restrictive deed convenants. |
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Term
Which of the following pieces of information MUST a listing agent reveal to a prospective buyer?
a. Similar properties nearby are priced lower.
b. The seller has been transferred to another city and is eager to sell.
c. The property has recently been rezoned.
d. The teenagers who live next door seem to be gang members. |
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Definition
| c. The property has recently been rezoned. |
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Term
A broker's fee is generally earned when
a. A ready, willing and able buyer has entered into a binding contract.
b. The first prospect has been shown the property.
c. The buyer has taken possession of the listed property.
d. The seller withdraws the property from the market. |
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Definition
| a. A ready, willing and able buyer has entered into a binding contract. |
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Term
A real estate sales contract is void if
a. Either party dies before title passes.
b. It is unilateral.
c. It is for an illegal purpose.
d. It is breached by either party. |
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Definition
| c. It is for an illegal purpose. |
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Term
Which of he following listing agreements tends to create competition between the principal and the agent in the selling a property?
a. Exclusive right-to-sell listing.
b. Exclusive agency listing.
c. Option listing.
d. Multiple listing. |
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Definition
| b. Exclusive agency listing. |
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Term
A listing broker is about to present an offer and discovers that the prospective buyer is acting for someone else. The broker should
a. Assess the buyer's legal authorization to make the offer.
b. Immediately present the offer without mentioning the undisclosed buyer.
c. Inform the seller that the buyer is acting for another.
d. Insist that the offer be amended to show the name of the actual buyer before presenting it. |
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Definition
| c. Inform the seller that the buyer is acting for another. |
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Term
A counteroffer on a home was made to a couple. They signed it and the real estate agent delivered their acceptance to the seller. Meanwhile, the couple found another house that they liked better and made an offer on it, which was accepted. Which of the following is TRUE?
a. The offer on the first house is not enforceable.
b. Neither offer is enforceable.
c. Only the first offer is valid.
d. Both offer are valid. |
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Definition
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Term
Fee necessary to clear all defects to finish a marketable title are customarily shown on the closing statement as
a. A credit to buyer; a debit to seller.
b. No entry to buyer; a credit to seller.
c. No entry to buyer; a debit to seller.
d. A debit to buyer; a credit to seller. |
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Definition
| c. No entry to buyer; a debit to seller. |
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Term
The owner of a 50-unit apartment building that is occupied mainly by young professionals has advertised that apartments in the building are for adults only. Is the owner in violation of Federal Fair Housing laws, and why or why not?
a. Yes, because Fair Housing laws prohibit familial status discrimination.
b. Yes, because Fair Housing laws prohibit steering.
c. Yes, becasue Fair Housing laws prohibit blockbusting.
d. No, because the owner is not discriminating on the basis of race, color, gender, religion, or national origin. |
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Definition
| a. Yes, because Fair Housing laws prohibit familial status discrimination. |
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Term
When one party to a contract sues the other party for specific performance, the suing party wants
a. The other party to comply with the agreement.
b. The other party to change the terms of the agreement.
c. To recover damages.
d. To void the agreement. |
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Definition
| a. The other party to comply with the agreement. |
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Term
A potential buyer is financially sound and has excellent credit, but was turned down for a mortgage loan by the lender because of the location of the property. This is an example of
a. Blockbusting
b. Sexual discrimination.
c. Familial discrimination.
d. Redlining. |
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Definition
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Term
The closing on a property is on the 5th of June. Last year's taxes of $1098 were paid in arrears on January 1. Taxes are to be proprated based on last year's taxes. Who owes whom and how much? The buyer pays for hte day of closing. Use the actual number of days method of prorating and 365 days in the year. Round to the nearest cent.
a. The buyer owes the seller $466.27
b. The buyer owes the seller $631.73
c. The seller owes the buyer $466.27
d. The seller owes the buyer $631.73 |
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Definition
| c. The seller owes the buyer $466.27 |
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