Mini Quizes Flashcards by Erin Banna

The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate is known as…?
▫️Agency
▫️Brokerage
▫️Trading
▫️Appraising

Brokerage

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Property that produces rental income or that is used in business is known as…?
▫️Commercial Property
▫️Residential Property
▫️Mixed-Use Property
▫️Special Purpose Property

Commercial Property

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Government held properties include which of the following…?
▫️Ranches
▫️Churches
▫️Office buildings
▫️Public parks

Public parks

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These real estate brokers specialize in the sale and lease of shopping centers and office buildings…?
▫️Residential brokerage
▫️Apartment brokerage
▫️Commercial brokerage
▫️Special use brokerage

Commercial brokerage

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Property inspections must be licensed by the Texas Real Estate Commission…?
▫️True
▫️False

True

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A type of property that includes one to four dwelling units is known as…?
▫️Commercial Property
▫️Mixed-Use Property
▫️Residential Property
▫️Special Purpose Property

Residential Property

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Which of the following is an example of a special purpose property…?
▫️Church
▫️High-rise office tower
▫️Shopping Center
▫️Self storage facility

Church

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Which of the following courses are taken after you obtain your real estate license…?
▫️Continuing education courses
▫️Pre-licensing courses
▫️Real Estate Practice courses
▫️Real Estate Principles courses

Continuing education courses

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The qualifying Real Estate Principles course consists of how many classroom hours in total…?
▫️15
▫️30
▫️45
▫️60

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How many points must an applicant earn in order to obtain their real estate broker’s license…?
▫️270
▫️1200
▫️2500
▫️3600

3600

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The mission of the Education Standard Advisory Committee (ESAC) is to regularly review and revise the curriculum standards, course content requirements, and instructor certification requirements for qualifying and continuing education courses…?
▫️T (True)
▫️F (False)

True

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The pre-licensing courses needed to obtain your real estate license are considered what type of courses…?
▫️Continuing education courses
▫️Elective courses
▫️Qualifying education courses
▫️All of the above

Qualifying education courses

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Which of the following factors can impact the value of real estate…?
▫️Topography
▫️Prevailing winds
▫️Proximity to transportation
▫️All of the above

All of the above

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Value is the same as price…?
▫️True
▫️False

False

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Which of the following affects supply…?
▫️Employment
▫️Cost of labor
▫️Population
▫️All of the above

Cost of labor

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Real estate prices are directly related to supply and demand…?
▫️True
▫️False

True

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Changes or additions made to a property, such as walls and roads are known as…?
▫️Improvements
▫️Fixtures
▫️Features
▫️Emblements

Improvements

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The present worth of future benefits is referred to as…?
▫️Supply
▫️Yield
▫️Value
▫️Investment

Value

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Which of the following is a fiduciary duty owed by an agent to their client…?
▫️Indemnification
▫️Disclosure
▫️Compensation
▫️All of the above

Disclosure

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This Act established the real estate licensing requirements in Texas in 1939…?
▫️Fair Housing Act
▫️Texas Real Estate Commission Act
▫️Texas Real Estate Dealers Act
▫️U.S. Real Estate Licensing Act

Texas Real Estate Dealers Act

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Which of the following is exempt from having to obtain a real estate license to buy or sell real estate on someone else’s behalf…?
▫️Someone acting under a power of attorney
▫️Architects
▫️Appraisers
▫️All of the above

Someone acting under a power of attorney

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A person authorized to act on behalf of another is known as a/an…?
▫️Principal
▫️Agent
▫️Customer
▫️Attorney

Agent

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The party the agent brings to the principal as seller or buyer of the property is known as the…?
▫️Customer
▫️Broker
▫️Intermediary
▫️All of the above

Customer

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A person in a position of trust and confidence, as between principal and broker, is known as a…?
▫️Customer
▫️Principal
▫️Client
▫️Fiduciary

Fiduciary

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``` Mark is looking to purchase a commercial office building. An appraiser was hired to assess the value of the building. What appraisal method did the appraiser use…? ▫️Market Comparison Approach ▫️Income Approach ▫️Cost Approach ▫️All of the above ```

Income Approach

``` A non-profit organization in looking to purchase a church. An appraiser was hired to assess the value of the church. What appraisal method did the appraiser use…? ▫️Market Comparison Approach ▫️Income Approach ▫️Cost Approach ▫️All of the above ```

Cost Approach

``` Improvements typically ………... in value? ▫️Rescind ▫️Escalate ▫️Appreciate ▫️Depreciate ```

Depreciate

Price is typically equal to the cost of the property…? ▫️True ▫️False

False

A licensee’s license may be suspended or revoked if which of the following occurs…? ▫️The licensee changes brokerages ▫️The licensee is convicted of a felony ▫️The licensee does not close a transaction within one calendar year ▫️The licensee negotiates on behalf of his/her client

The licensee is convicted of a felony

Real estate agents and brokers must be careful not to provide legal advice to their clients…? ▫️True ▫️False

True

``` Who holds the real estate license of an agent…? ▫️The agent’s sponsoring broker ▫️The agent themselves ▫️The Texas Real Estate Commission ▫️All of the above ```

The agent’s sponsoring broker

``` In order to obtain a real estate license, an applicant must be at least how many years of age…? ▫️18 ▫️20 ▫️21 ▫️22 ```

``` If a real estate salesperson terminates their employment with their sponsoring broker, the salesperson's license is considered what…? ▫️Active ▫️Inactive ▫️Revoked ▫️Suspended ```

Inactive

``` Real estate licenses are issued for a period not to exceed how many years…? ▫️1 ▫️2 ▫️3 ▫️4 ```

If a person’s license has been expired for more than 6 months, they are required to do which of the following in order to re-activate their license…? ▫️Satisfy the education requirements and retake the State exam ▫️Pay a renewal fee ▫️Pay 2x the renewal fee ▫️They are not allowed to re-apply for a license

Satisfy the education requirements and retake the State exam

``` The surface of the earth, the area above and below the surface, and everything permanently attached thereto is known as…? ▫️Land ▫️Real Property ▫️Real Estate ▫️Bundle of Rights ```

Real Estate

``` The rights in real property to the reasonable use of the air space above the surface of the land is known as…? ▫️Mineral Rights ▫️Air Rights ▫️Land Rights ▫️Riparian Rights ```

Air Rights

``` Which of the following is considered a permanent man-made improvement to land…? ▫️Fences ▫️Sheds ▫️Wells ▫️All of the above ```

All of the above

``` Items that are installed by a commercial tenant and are removable upon termination of the tenancy are known as…? ▫️Emblements ▫️Trade Fixtures ▫️Chattel ▫️Real Property ```

Trade Fixtures

``` Trees and shrubbery that are not cultivated annually are considered…? ▫️Personal property ▫️Chattel ▫️Real property ▫️Emblements ```

Real Property

``` Personal property that has become real property by having been permanently attached or adapted to real property is known as a/an…? ▫️Fixture ▫️Trade Fixture ▫️Emblements ▫️Chattel ```

Fixture

``` A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease is known as a…? ▫️Cooperative ▫️Condominium ▫️Townhouse ▫️PUD ```

Cooperative

``` Who is responsible for selling newly constructed mobile homes…? ▫️Manufactured home dealerships ▫️Real estate brokers ▫️Real estate agents ▫️Mobile home owners ```

Manufactured home dealerships

Modular homes can typically be built quicker and at a lower cost as compare to homes constructed on-site…? ▫️True ▫️False

True

``` A cooperative owner owns ……………………. in the cooperative? ▫️Shares of stock ▫️A deed ▫️Title ▫️All of the above ```

Shares of stock

For tax purposes, real estate taxes can be deducted from personal income…? ▫️True ▫️False

True

``` Which of the following is a tax deduction a homeowner can take advantage of…? ▫️Mortgage interest payments ▫️Real estate taxes ▫️Loan origination fees ▫️All of the above ```

All of the above

``` Tax benefits for homeowners are provided in part to…? ▫️Discourage homeownership ▫️Encourage homeownership ▫️Reduce the length of homeownership ▫️Decrease mortgage payments ```

Encourage homeownership

``` The profit realized from the sale of real estate or other investment is known as…? ▫️Capital Gains ▫️Debits ▫️Credits ▫️Deductibles ```

Capital Gains

``` A married couple is exempt from paying taxes on capital gains for up to how much in profit if they lived in their house for at least 2 of the last 5 years…? ▫️$100,000 ▫️$250,000 ▫️$500,000 ▫️$1,000,000 ```

$500,000

``` What is typically covered in a homeowners policy…? ▫️Personal property within the house ▫️The house itself ▫️Liability ▫️All of the above ```

All of the above

``` What is the most common homeowners policy found in Texas…? ▫️HOA ▫️HOB ▫️HOC ▫️HOD ```

HOB

``` If the replacement cost of an item with a 5 year life span is $100, and it is 4 years old, what is the actual cash value of the item…? ▫️$20 ▫️$50 ▫️$80 ▫️$100 ```

$20

``` Most homeowners policies do NOT cover which of the following…? ▫️Flood damage ▫️Smoke damage ▫️Fire damage ▫️All of the above ```

Flood damage

``` The replacement cost minus depreciation is referred to as…? ▫️Net cash value ▫️Actual cash value ▫️Gross cash value ▫️Effective cash value ```

Actual cash value

``` This refers to the party the agent brings to the principal as seller or buyer of the property…? ▫️Client ▫️Customer ▫️Partner ▫️Principle ```

Customer

``` An agent with full authority over one property of the principal is known as a…? ▫️General Agent ▫️Special Agent ▫️Specific Agent ▫️Real Estate Agent ```

General Agent

``` An agent with limited authority to act on behalf of the principal is referred to as a…? ▫️General Agent ▫️Universal Agent ▫️Special Agent ▫️Specific Agent ```

Special Agent

``` Agency that exists as a result of actions of the parties is known as…? ▫️Implied Agency ▫️Express Agency ▫️General Agency ▫️Special Agency ```

Implied Agency

``` The real estate agent in a transaction is considered a ………... to his/her broker? ▫️Principal ▫️Client ▫️Customer ▫️Sub-agent ```

Sub-Agent

The sale of the property results in the ………………………. of the agency relationship? ▫️Beginning ▫️Creation ▫️Termination ▫️The agency relationship is not contingent on the sale of the property

Termination

A seller’s agent is entitled to a commission after…? ▫️The agent finds a buyer who is ready, willing, and able to purchase the property ▫️The buyer closes on the transaction ▫️The seller agrees to pay the commission ▫️All of the above

The Agent finds a buyer who is ready, willing, and able to purchase the property

``` An agency relationship may be terminated by which of the following…? ▫️Destruction of the property ▫️Expiration of the term of an agency ▫️Mutual agreement of the parties ▫️All of the above ```

All of the above

``` A broker will work for a client and with a…? ▫️Principal ▫️Customer ▫️Agent ▫️None of the above ```

Customer

A broker as a fiduciary owes certain loyalty, which cannot be breached under the rules of agency…? ▫️True ▫️False

True

``` The ‘C’ in the acronym C.O.A.L.D. stands for which fiduciary duty…? ▫️Consideration ▫️Co-sign ▫️Care ▫️Conditional ```

Care

The fiduciary duty of care when representing a buyer includes which of the following services…? ▫️Assisting with counter offers ▫️Evaluating terms and conditions from any offers on the property ▫️Disclosing information learned from the seller’s broker ▫️All of the above

Assisting with counter offers

``` A broker must always place his/her client’s interests above their own. This is an example of what fiduciary duty…? ▫️Disclosure ▫️Loyalty ▫️Care ▫️Accounting ```

Loyalty

``` A broker must inform their clients of all known facts related to a transaction. This is an example of what fiduciary duty…? ▫️Disclosure ▫️Loyalty ▫️Care ▫️Accounting ```

Disclosure

``` A buyer’s earnest money should be deposited in which of the following…? ▫️The broker’s account ▫️The seller’s account ▫️An escrow account ▫️Any of the above ```

An escrow account

``` A seller’s broker is required to tell their client any relationship they may have with the buyer. This is an example of which fiduciary duty…? ▫️Loyalty ▫️Disclosure ▫️Care ▫️Accounting ```

Disclosure

``` This reimbursement or compensation paid to someone for a loss already suffered is known as…? ▫️Indemnification ▫️Consideration ▫️Arbitration ▫️Conversion ```

Indemnification

``` The exaggeration of the good points of a product, or real property, and the prospects for future rise in value, profits, and growth is known as…? ▫️Redlining ▫️Novation ▫️Puffing ▫️Steering ```

Puffing

``` The ‘C’ in the acronym C.I.I.A. stands for…? ▫️Care ▫️Consideration ▫️Confidentiality ▫️Compensation ```

Compensation

``` The seller must allow their agent to show the property to prospective buyers. This is an example of what responsibility owed by the seller to the agent…? ▫️Availability ▫️Care ▫️Disclosure ▫️Accounting ```

Availability

``` Which of the following is owed to a customer by an agent…? ▫️Reasonable care and skill ▫️Honesty ▫️Disclosure of any known material facts ▫️All of the above ```

All of the above

``` Which of the following is owed to a customer by an agent…? ▫️Honesty ▫️Accounting ▫️Availability ▫️Indemnification ```

Honesty

``` According to this responsibility, the seller must always provide any known material facts about the property…? ▫️Care ▫️Information ▫️Loyalty ▫️Accounting ```

Information

``` A defect known to the seller but not to the buyer, and is not discoverable by ordinary inspections is referred to as a/an…? ▫️Latent Defect ▫️Non-structural Defect ▫️Structural Defect ▫️Insignificant Defect ```

Latent Defect

``` This Act protects consumers against false, misleading, or deceptive acts…? ▫️Deceptive Trade Practices Act ▫️Consumer Protection Act ▫️Fair Trade Act ▫️Texas Consumer Act ```

Deceptive Trade Practices Act

``` The seller is required to provide buyers with which of the following documents…? ▫️Survey ▫️Property Inspection Report ▫️Seller's Disclosure Notice ▫️Property Condition Report ```

Seller’s Disclosure Notice

Real estate agents cannot be held liable for any false or misleading information about a property…? ▫️True ▫️False

False

``` The Texas Deceptive Trade Practices Act defines this individual as someone who seeks, or acquires, by purchase or lease, any goods or services…? ▫️Agent ▫️Principal ▫️Client ▫️Consumer ```

Consumer

``` According to the Texas Deceptive Trade Practices Act, businesses with assets exceeding ………….. are not considered consumers? ▫️$1,000,000 ▫️$5,000,000 ▫️$10,000,000 ▫️$25,000,000 ```

$25,000,000

``` When a buyer is required to examine the property and buy at his/her own risk, it is referred to as…? ▫️Caveat Emptor ▫️Indemnification ▫️Fraud ▫️Calculated Risk ```

Caveat Emptor

Which of the following is considered misleading under the Texas Deceptive Trade Practices Act…? ▫️Representing that something is new when in fact it is not ▫️Advertising a property when the agent has no intention of actually selling the property ▫️Making false statements about reasons for a sale ▫️All of the above

All of the above

``` This federal law prohibits all discrimination on the basis of race only…? ▫️Civil Rights Act of 1866 ▫️Civil Rights Act of 1964 ▫️Civil Rights Act of 1968 ▫️Civil Rights Act of 1988 ```

Civil Rights Act of 1866

``` The channeling of home seekers to a particular area, or areas, on the basis of race, religion, country of origin, or other protected class either to maintain the homogeneity of an area, or to change the character of an area in order to create a speculative situation is known as…? ▫️Redlining ▫️Blockbusting ▫️Steering ▫️Testing ```

Steering

``` The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry, or prospective entry of minority persons into the neighborhood is known as…? ▫️Blockbusting ▫️Steering ▫️Redlining ▫️Testing ```

Blockbusting

``` The practice of refusing to make loans or otherwise denying financial assistance for housing in a particular area is known as…? ▫️Testing ▫️Blockbusting ▫️Redlining ▫️Steering ```

Redlining

``` This federal law prohibits discrimination in sale, rental, financing, or appraisal of housing on the basis of race, color, religion, gender, national origin, handicap, or familial status…? ▫️Civil Rights Act of 1866 ▫️Civil Rights Act of 1964 ▫️Civil Rights Act of 1968 ▫️Civil Rights Act of 1988 ```

Civil Rights Act of 1968

``` This federal law protects the rights of individuals with physical or mental impairments…? ▫️Americans with Disabilities Act ▫️Civil Rights Act of 1964 ▫️Fair Housing Act of 1968 ▫️Civil Rights Act of 1968 ```

Americans with Disabilities Act

The Federal Fair Housing Act of 1968 was generally ineffective in combating housing discrimination…? ▫️T (True) ▫️F (False)

True

``` The Housing and Community Development Act was enacted in…? ▫️1964 ▫️1968 ▫️1974 ▫️1988 ```

1974

``` A fair housing complaint should be filed within …………………………... months of the incident? ▫️12 ▫️24 ▫️36 ▫️48 ```

``` Based on the Texas Fair Housing Act of 1989, the Texas Workforce Commission has …………………….. days to investigate a fair housing complaint? ▫️30 ▫️45 ▫️60 ▫️100 ```

100

``` Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers are known as…? ▫️Redliners ▫️Testers ▫️Detectives ▫️Private Enforcement Officers ```

Testers

``` The following cities have ordinances that are equivalent to the federal fair housing laws…? ▫️Austin ▫️Dallas ▫️San Antonio ▫️All of the above ```

All of the above

``` Which of the following is a Texas statute that deals with fair housing and discrimination…? ▫️Texas Fair Housing Act ▫️Texas Real Estate License Act ▫️Texas Discrimination Act ▫️Texas Civil Rights Act ```

Texas Real Estate License Act

``` HUD prohibits which of the following words in advertising…? ▫️Adults ▫️Singles ▫️Children ▫️All of the above ```

All of the above

``` The Equal Credit Opportunity Act was enacted in…? ▫️1964 ▫️1968 ▫️1974 ▫️1988 ```

1974

``` The Equal Credit Opportunity Act does not apply to…? ▫️Seller financing ▫️Conventional mortgages ▫️FHA mortgages ▫️Balloon mortgages ```

Seller financing

``` This department is charged with the regulatory responsibility of the Equal Credit Opportunity Act…? ▫️HUD ▫️Department of State ▫️Consumer Financial Protection Bureau ▫️Attorney General ```

Consumer Financial Protection Bureau

Under the Community Reinvestment Act, financial institutions must post annual statements, which include…? ▫️Definition of the geographical boundaries of its community ▫️Identify the type of reinvestment credit offered to the community ▫️Comments from the public about the institution's performance in meeting the community's needs ▫️All of the above

All of the above

``` The Community Reinvestment Act was passed in…? ▫️1964 ▫️1968 ▫️1977 ▫️1988 ```

1977

``` Fair housing complaints cannot be filed through the Texas Workforce Commission in which of the following cities…? ▫️Austin ▫️Corpus Christi ▫️Dallas ▫️All of the above ```

All of the above

``` The Texas Workforce Commission cannot take fair housing discrimination complaints if the same complaint is also filed with….? ▫️HUD ▫️US Attorney General ▫️Department of State ▫️TREC ```

HUD

``` All buildings built after March 31, 1991 must comply with the design and construction requirements of the…? ▫️International Building Code ▫️US Fire Code ▫️Texas Fair Housing Act ▫️All of the above ```

Texas Fair Housing Act

``` Those who file a fair housing complaint with HUD are referred to as…? ▫️Defendants ▫️Prosecutors ▫️Respondents ▫️Complainants ```

Complainants

``` Those who HUD fair housing complaints are filed against are referred to as…? ▫️Complainants ▫️Prosecutors ▫️Respondents ▫️Defendants ```

Respondents

``` A respondent of a HUD fair housing complaint has how many days to submit a response…? ▫️5 ▫️10 ▫️15 ▫️30 ```

What is the primary purpose of real estate licensing laws…? ▫️Protect the public from incompetent or dishonest salespersons and brokers ▫️Raise revenue ▫️Help licensees earn higher commissions ▫️Increase property values

Protect the public from incompetent or dishonest salespersons and brokers

``` Who administers the Texas Real Estate License Act…? ▫️U.S. Attorney General ▫️National Association of Realtors ▫️Texas Real Estate Commission ▫️Texas Association of Realtors ```

Texas Real Estate Commission

``` The Texas Real Estate Commission consists of how many members…? ▫️5 ▫️6 ▫️7 ▫️9 ```

``` How many members of the Texas Real Estate Commission are real estate brokers…? ▫️3 ▫️5 ▫️6 ▫️9 ```

``` The Texas Real Estate Commission is periodically reviewed under this Act…? ▫️Sunset Act ▫️Fair Housing Act ▫️ADA ▫️Texas Licensing Act ```

Sunset Act

``` The Texas Real Estate Commission consists of how many non-licensed public members…? ▫️0 ▫️3 ▫️6 ▫️9 ```

What is the primary purpose of real estate licensing laws…? ▫️Define minimum standards and qualifications for salespersons and brokers ▫️Raise revenue ▫️Help licensees earn higher commissions ▫️Increase property values

Define minimum standards and qualifications for salespersons and brokers

Which of the following warrants a fee under the Texas Real Estate License Act…? ▫️Real estate salesperson application ▫️Real estate salesperson license renewal ▫️Real estate salesperson State examination ▫️All of the above

All of the above

``` Any complaints issued to TREC must be submitted within ………... years of the incident? ▫️2 ▫️3 ▫️4 ▫️7 ```

``` The Texas Real Estate Broker Lawyer Committee consists of how many members…? ▫️6 ▫️7 ▫️11 ▫️13 ```

``` Educational institutions that offer real estate licensing courses in Texas must hold a…? ▫️Grant ▫️Certificate of Compliance ▫️Surety Bond ▫️Real estate license ```

Surety Bond

``` What is an applicant required to submit as part of the licensing application process…? ▫️Three forms of valid government IDs ▫️Fingerprints ▫️Surety Bond ▫️All of the above ```

Fingerprints

Which of the following is NOT legally capable of obtaining a real estate license…? ▫️Individuals living in Texas under a Visa ▫️Individuals with a Green Card ▫️Permanent residents of the U.S. ▫️None of the above

Individuals living in Texas under a Visa

``` If an applicant holds a broker’s license in another state, how many years of active experience must the applicant have in the other state in order to satisfy the experience requirement in Texas…? ▫️1 ▫️2 ▫️3 ▫️4 ```

``` The education requirements for a broker’s application may be waived if the applicant held a broker’s license in the State of Texas within the preceding…? ▫️6 months ▫️1 year ▫️2 years ▫️4 years ```

6 months

``` The following exam must be less stringent than the Texas real estate broker’s exam…? ▫️Texas appraisal exam ▫️Texas real estate inspector exam ▫️Texas real estate salesperson exam ▫️All of the above ```

Texas real estate salesperson exam

``` The Commission shall notify examinees of their results within how many days after the exam is taken…? ▫️7 ▫️30 ▫️45 ▫️60 ```

``` TREC may renew a real estate license for no more than…? ▫️1 year ▫️2 years ▫️3 years ▫️4 years ```

2 years

``` If an individual’s license has been expired for greater than 90 days, but less than 6 months, they may renew their license by paying a fee to the Commission equal to…? ▫️1.5x the required renewal fee ▫️2x the required renewal fee ▫️3x the required renewal fee ▫️The required renewal fee ```

2x the required renewal fee

``` A seller may be reimbursed for damages caused by their real estate agent or broker from which of the following…? ▫️The Texas Association of Realtors ▫️The Real Estate Recovery Trust Account ▫️The Texas Escrow Account ▫️The U.S. Recovery Trust Account ```

The Real Estate Recovery Trust Account

``` An action for judgment for order of payment from the Real Estate Recovery Trust Account must be made within ………. years of the cause of action? ▫️2 ▫️3 ▫️4 ▫️7 ```

``` As a real estate salesperson, all commissions must be paid to them by the…? ▫️Principal ▫️Client ▫️Sponsoring broker ▫️Customer ```

Sponsoring broker

``` A broker who acts as an intermediary in a transaction operates as a…? ▫️Universal agent ▫️General agent ▫️Single agent ▫️Dual agent ```

Dual agent

``` Payments into the Real Estate Recovery Trust Account are provided by which of the following…? ▫️License application fees ▫️Certificate of Registration fees ▫️Administrative penalty fees ▫️All of the above ```

All of the above

``` David is a real estate agent who referred a client to Andrew, another agent in the office. Andrew agreed to give David a 25% referral fee. Who must pay the referral fee to David…? ▫️David’s sponsoring broker ▫️Andrew ▫️ Client ▫️The Principal ```

David’s sponsoring broker

``` A license holder may have their license suspended or revoked if they obtained their license through which of the following means…? ▫️Fraud ▫️Deceit ▫️Misrepresentation ▫️All of the above ```

All of the above

A licensee may have their license suspended or revoked for which of the following actions…? ▫️Failing to close a transaction within 2 calendar years ▫️Commingling ▫️Changing brokers ▫️ of the above

Commingling

``` A Certificate of Registration may be suspended or revoked for which of the following actions…? ▫️Unlawful discrimination ▫️Misrepresentation ▫️Fraud ▫️All of the above ```

All of the above

``` As an alternative to paying an administrative penalty, the Commission may have a licensee pay which of the following…..? ▫️Refund ▫️Rebate ▫️Commission ▫️Extra renewal fee ```

Refund

A licensee may have their license suspended or revoked for which of the following actions…? ▫️Acting as a dual agent without full disclosure to all parties involved ▫️Failing to close a transaction within 2 calendar years ▫️Changing brokers ▫️All of the above

Acting as a dual agent without full disclosure to all parties involved

The amount of an administrative penalty is determined by which of the following…? ▫️The seriousness of the violation ▫️ history of previous violations of the licensee ▫️The amount necessary to deter similar future acts ▫️All of the above

All of the above

``` A legal description is typically ascertained through a…? ▫️Key Plan ▫️Site Map ▫️Survey ▫️All of the above ```

Survey

``` Which of the following is a method used to describe property in the United States…? ▫️Government Survey ▫️Metes and Bounds ▫️Lot and Block ▫️All of the above ```

All of the above

``` An exact way of describing real estate in a contract, deed, mortgage, or any other document that will be accepted by a court of law is known as a…? ▫️Legal Description ▫️Site Description ▫️Plot Description ▫️Bench Mark ```

Legal Description

``` A monument used to establish the elevation of the point, usually relative to Mean Sea Level, is known as a…? ▫️Meridian ▫️Base Line ▫️Bench Mark ▫️Range ```

Bench Mark

``` A method of specifying the location of a parcel of land using prime meridians, base lines, standard parallels, guide meridians, townships and sections is known as the…? ▫️GPS System ▫️Metes and Bounds System ▫️Government Survey System ▫️Lot and Block System ```

Government Survey System

``` A strip or column of land six miles wide, determined by a government survey, running in a north-south direction, lying east or west of a principal meridian is known as a…? ▫️Plat ▫️Block and Lot ▫️Township ▫️Range ```

Range

``` A series of government survey lines running north and south at six-mile intervals starting with the principal meridian and forming the east and west boundaries of townships are known as…? ▫️Range Lines ▫️Bench Lines ▫️Datum Lines ▫️Plot Lines ```

Range Lines

``` Land in Texas was originally identified by…? ▫️Metes and Bounds ▫️Lot and Block ▫️Government Survey ▫️Townships ```

Metes and bounds

``` Which of the following is an example of a monument…? ▫️A tree ▫️A post ▫️A stream ▫️All of the above ```

All of the above

``` The Mean Sea Level at New York Harbor is known as a…? ▫️Monument ▫️Datum ▫️Bench Mark ▫️Reference Point ```

Datum

``` 1 acre is equal to…? ▫️1,000 sq.ft. ▫️5,280 sq.ft. ▫️23,040 sq.ft. ▫️43,560 sq.ft. ```

43,560 sq. ft.

``` ½ of a section is equal to how many acres…? ▫️100 ▫️320 ▫️500 ▫️640 ```

320

``` Which of the following is shown on an improvement survey…? ▫️Sidewalks ▫️Fences ▫️Buildings ▫️All of the above ```

All of the above

``` A township consists of how many sections…? ▫️6 ▫️36 ▫️100 ▫️140 ```

``` When a survey describes the structures on a property in addition to the land itself, it is known as a…? ▫️Improvement Survey ▫️Site Plan ▫️Dimensional Survey ▫️Plot Map ```

Improvement Survey

``` A contract that has been put into words, either spoken or written is known as a/an…? ▫️Express Contract ▫️Implied Contract ▫️Note ▫️Deed ```

Express Contract

``` Real estate agents use which of the following contracts…? ▫️Express Contracts ▫️Listing Contracts ▫️Buyer Representation Agreements ▫️All of the above ```

All of the above

``` When you give your keys to a valet, you assume that the valet will park your car in exchange for a fee. This is because a/an ………………. contract was created between you and the valet? ▫️Express ▫️Voidable ▫️Implied ▫️Exclusive ```

Implied

``` An agreement that has not been put into words, but is implied by the actions of the parties is known as a/an…? ▫️Implied Contract ▫️Express Contract ▫️Deed ▫️Note ```

Implied Contract

``` A contract in which each party promises to do something is referred to as a…? ▫️Unilateral Contract ▫️Bilateral Contract ▫️Executed Contract ▫️Voided Contract ```

Bilateral Contract

``` This contract is formed only if another party performs the requested act…? ▫️Bilateral Contract ▫️Executed Contract ▫️Unilateral Contract ▫️Voided Contract ```

Unilateral Contract

``` A contract that has no force or effect is referred to as a/an…? ▫️Void Contract ▫️Valid Contract ▫️Executory Contract ▫️Executed Contract ```

Void Contract

``` A listing contract exists between a seller and the…? ▫️Real estate broker ▫️Real estate salesperson ▫️Customer ▫️Any of the above ```

Real Estate Broker

``` Anything given or promised by a party to induce another to enter into a contract is known as…? ▫️Conversion ▫️Consideration ▫️Novation ▫️Assignment ```

Consideration

``` This is a condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time…? ▫️Assignment ▫️Acceleration ▫️Time is of the Essence ▫️Novation ```

Time is of the Essence

``` A meeting of the minds between two parties is also known as…? ▫️Conversion ▫️Novation ▫️Consideration ▫️Offer and acceptance ```

Offer and acceptance

In addition to the essential elements of a valid contract, real estate contracts must include which of the following…? ▫️An accurate legal description of the property ▫️Proof of funds ▫️The signature of the real estate brokers involved in the transaction ▫️All of the above

An accurate legal description of the property

``` A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a/an…? ▫️Assignment ▫️Novation ▫️Conversion ▫️Offer and acceptance ```

Assignment

``` If one of the parties to a contract wants to withdraw without terminating the contract, which of the following can be used…? ▫️Novation ▫️Acknowledgement ▫️Assignment ▫️Conversion ```

Assignment

``` Those to whom property or interests therein shall have been transferred are known as…? ▫️Trustors ▫️Trustees ▫️Assignees ▫️Assignors ```

Assignees

``` One who assigns or transfers property is known as a/an…? ▫️Assignor ▫️Assignee ▫️Trustor ▫️Trustee ```

Assignor

``` A violation of the terms or conditions of a contract without a legal excuse is known as a…? ▫️Discharge ▫️Conversion ▫️Breach ▫️All of the above ```

Breach

``` Damages benefiting the non-defaulting party as a result of a default of a contract are known as…? ▫️Liquidated Damages ▫️Consideration ▫️Novation ▫️Punitive Damages ```

Liquidated Damages

``` A contract by which a buyer and seller agree to the terms of a sale is known as a…? ▫️Listing contract ▫️Sales contract ▫️Bill of Sale contract ▫️Listing agreement ```

Sales Contract

``` An interest in real estate such that a court will take notice and protect the owner’s rights is known as…? ▫️Legal Title ▫️Secured Title ▫️Protected Title ▫️Equitable Title ```

Equitable Title

``` A down payment made by a purchaser of real estate as evidence of good faith is known as…? ▫️Earnest money deposit ▫️Escrow money ▫️Interest payment ▫️Binding deposit ```

Earnest money deposit

``` The unlawful appropriation of another’s property or earnest money deposit is known as…? ▫️Commingling ▫️Conversion ▫️Steering ▫️Redlining ```

Conversion

``` Building codes are an example of…? ▫️Police Power ▫️Novation ▫️Escheat ▫️Eminent Domain ```

Police Power

``` The taking of private property for public use, with fair compensation to the owner is known as…? ▫️Escheat ▫️Novation ▫️Condemnation ▫️Police Power ```

Condemnation

``` Real property ownership rights in the United States are based on this legal system…? ▫️Feudal system ▫️Allodial system ▫️Spanish system ▫️European system ```

Allodial system

When the government exercises its power of eminent domain, the owner…? ▫️Will not be compensated ▫️Must be fairly compensated ▫️Will not be notified ▫️Must forfeit the property within 14 days

Must be fairly compensated

``` An estate of indeterminable duration is known as a…? ▫️Leasehold Estate ▫️Freehold Estate ▫️Land Estate ▫️All of the above ```

Freehold Estate

``` Absolute ownership of real property is considered this type of estate…? ▫️Leasehold estate ▫️Land Estate ▫️Fee simple estate ▫️Estate in reversion ```

Fee simple estate

``` An inheritable estate in land providing the greatest interest of any form of title is known as a/an…? ▫️Leasehold estate ▫️Estate in Remainder ▫️Fee simple absolute ▫️Fee simple determinable ```

Fee simple absolute

``` A freehold estate created for the duration of the life, or lives, of certain named persons is known as a…? ▫️Life estate ▫️Leasehold estate ▫️Fee simple estate ▫️Land estate ```

Life estate

``` A legal life estate in land that is owned and occupied as a family home is known as a…? ▫️Easement ▫️Reversionary interest ▫️Homestead ▫️Fee simple determinable ```

Homestead

``` In Texas, what is the limitation on homesteads in urban areas…? ▫️10 acres ▫️15 acres ▫️50 acres ▫️100 acres ```

10 acres

``` In Texas, what is the limitation on homesteads of a family in rural areas…? ▫️10 acres ▫️50 acres ▫️100 acres ▫️200 acres ```

200 acres

``` A claim, charge, or liability that attaches to, and is binding on real estate is known as a…? ▫️Prescription ▫️Rescission ▫️Encumbrance ▫️Novation ```

Encumbrance

``` A limitation on the use of real property is known as a…? ▫️Restriction ▫️Prescription ▫️Rescission ▫️Novation ```

Restriction

``` A claim against a property that provides security for the repayment of a debt or an obligation of the property owner is known as a/an…? ▫️Easement ▫️Grant ▫️Prescription ▫️Lien ```

Lien

``` This type of easement exists when a landowner has no access to roads and is landlocked…? ▫️Easement by necessity ▫️Easement appurtenance ▫️Easement in gross ▫️Easement by prescription ```

Easement by necessity

``` Restrictive covenants are typically found in which of the following documents…? ▫️Mortgage ▫️Plot map ▫️Deed ▫️All of the above ```

Deed

``` A lien on all the property of a debtor is referred to as a…? ▫️Specific lien ▫️General lien ▫️Universal lien ▫️Special lien ```

General lien

``` A lien that attaches to one specific property only is referred to as a…? ▫️General lien ▫️Universal lien ▫️Specific lien ▫️Special lien ```

Specific lien

``` The order in which liens are given legal precedence or preference is known as…? ▫️Assessment of liens ▫️Lien ladder ▫️Rank of liens ▫️Priority of liens ```

Priority of liens

``` Which of the following acronyms describes the various ways a lien can be created…? ▫️VISE ▫️CATTL ▫️PETE ▫️OLD CAR ```

VISE

``` Any lien placed on property with consent of, or as a result of, the voluntary act of the owner is referred to as a/an…? ▫️Voluntary lien ▫️Involuntary lien ▫️Subordinate lien ▫️Owner lien ```

Voluntary lien

``` A form of action taken to impose a tax is known as a…? ▫️Tax lien ▫️Tax proposal ▫️Tax levy ▫️Eminent domain ```

Tax Levy

``` The amount of money needed by a municipality to meet budgetary requirements divided by the taxable assessed and nonexempt value of all real property within that jurisdiction is known as the…? ▫️Tax levy ▫️Yield rate ▫️Cap rate ▫️Tax rate ```

Tax Rate

``` Which of the following is an example of a taxing entity…? ▫️Water districts ▫️Hospital districts ▫️School districts ▫️All of the above ```

All of the above

``` If a property is assessed at $100,000, what would be the amount of taxes owed assuming a tax rate of $1.50 per 100 dollars of value…? ▫️$150 ▫️$1,500 ▫️$15,000 ▫️$100,000 ```

$1,500

``` A specific lien that gives security to persons or companies who perform labor or furnish material to improve real property is known as a…? ▫️Judgment lien ▫️General lien ▫️Mechanic’s lien ▫️Voluntary lien ```

Mechanic’s Lien

``` A legal claim on all of the property of a judgment debtor which enables the judgment creditor to have the property sold for payment of the amount of the judgment is known as a…? ▫️Mechanic’s lien ▫️Voluntary lien ▫️Judgment lien ▫️Tax lien ```

Judgment lien

``` Mortgage lenders typically require a…? ▫️Involuntary lien ▫️General lien ▫️Tax lien ▫️Preferred lien ```

Preferred lien

``` An addition to property through the efforts of man or by natural forces is known as…? ▫️Accretion ▫️Accession ▫️Erosion ▫️Avulsion ```

Accession

``` The increasing in land area resulting from the deposit of soil by the natural action of the water is known as…? ▫️Accretion ▫️Avulsion ▫️Erosion ▫️Accession ```

Accretion

``` The gradual increase of earth on a shore of an ocean or bank of a stream resulting from the action of the water is known as…? ▫️Accretion ▫️Erosion ▫️Avulsion ▫️Alluvium ```

Alluvium

``` When someone is the sole owner of a property, they are said to have this type of ownership…? ▫️Joint Tenancy ▫️Community Property ▫️Severalty Ownership ▫️Tenancy in Common ```

Severalty Ownership

``` Real property can be owned in which of the following forms…? ▫️Severalty ▫️Co-ownership ▫️In trust ▫️All of the above ```

All of the above

``` Which of the following is an example of co-ownership…? ▫️Tenancy in common ▫️Joint tenancy ▫️Community property ▫️All of the above ```

All of the above

``` Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship is known as…? ▫️Joint tenancy ▫️Tenancy in common ▫️Community property ▫️Severalty ownership ```

Joint tenancy

``` One entitled to the benefit of a trust is referred to as the…? ▫️Devisee ▫️Beneficiary ▫️Trustor ▫️Primary owner ```

Beneficiary

``` An agreement where the trustee holds legal possession of a fund or assets that belong to another person, the beneficiary, and it is created while the person is alive is referred to as a/an…? ▫️Living partition ▫️Escheat ▫️Living escrow ▫️Living trust ```

Living Trust

``` An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it is referred to as a…? ▫️Corporation ▫️Partnership ▫️LLC ▫️Limited Partnership ```

Corporation

``` In this type of arrangement, partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership’s obligations…? ▫️LLP ▫️Corporation ▫️General partnership ▫️LLC ```

General Partnership

``` This type of listing is given to only one broker who is entitled to the commission if the broker or any agent of the listing broker effects a sale but imposes no commission obligation on the owner who sells the property to a person who was not interested in the property by efforts of the listing broker or an agent of the listing broker…? ▫️Non-Exclusive Agreement ▫️Net Listing ▫️Exclusive Agency Agreement ▫️Open Listing ```

Exclusive Agency Agreement

A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is referred to as this type of listing…? ▫️Net Listing ▫️Open Listing ▫️Non-Exclusive Listing ▫️Exclusive Right to Sell Listing Agreement

Exclusive Right to Sell Listing Agreement

``` An open listing is also referred to as a/an…? ▫️Non-Exclusive Listing ▫️Net Listing ▫️Exclusive Agency Agreement ▫️Exclusive Right to Sell Agreement ```

Non-Exclusive Listing

``` What is the name of the employment contract between a client and an agent…? ▫️Listing Contract ▫️Purchase Contract ▫️Sales Contract ▫️Escrow Contract ```

Listing Contract

``` Which of the following listing contracts serves as a unilateral contract…? ▫️Open listing ▫️Exclusive Agency Agreement ▫️Exclusive Right to Sell Agreement ▫️All of the above ```

Open listing

Which of the following will most likely make it more difficult to market a property…? ▫️Listing the property on the MLS ▫️Notifying other agents in the office about the property ▫️Using a ‘For Sale’ sign in the front yard ▫️Not listing the property on the MLS

Not listing the property on the MLS

``` Sub-agents in a transaction are typically compensated by which of the following means…? ▫️A percentage of the sales price ▫️A percentage of the listing price ▫️A percentage of the appraised value ▫️A percentage of the assessed value ```

A percentage of the sales price

``` If a broker acts as an intermediary in a transaction, they also serve as a…? ▫️Single agent ▫️Dual agent ▫️General agent ▫️Universal agent ```

Dual agent

When is a broker entitled to a commission…? ▫️After they find a buyer who is willing and capable of paying all cash ▫️After they find a ready, willing, and able buyer ▫️After they find a buyer who is willing to buy and qualified to obtain a mortgage ▫️All of the above

All of the above

What is a listing broker allowed to disclose to a buyer…? ▫️Confidential information about the seller ▫️The lowest price the seller is willing to accept ▫️Material facts about the property ▫️All of the above

Material facts about the property

Insurance companies may deny coverage on a property if which of the following occurs…? ▫️The property is occupied full-time ▫️The property will remain vacant ▫️The property is mortgaged ▫️The property is burdened by an easement

The property will remain vacant

``` If an additional contract item does not belong in the Special Provisions, it will most likely get listed in the…? ▫️Contract addendum ▫️Contract bulletin ▫️Contract notice form ▫️HUD-1 form ```

Contract addendum

``` If a seller breaches the contract, and the sales price is not determinable, the broker’s compensation should be based on which of the following…? ▫️A percentage of the assessed value ▫️A percentage of the market value ▫️A percentage of the listing price ▫️A percentage of the investment value ```

A percentage of the listing price

``` If a dispute between the seller and the agent cannot be resolved through negotiations, the dispute should be resolved using the following method…? ▫️Civil Action ▫️Litigation ▫️Arbitration ▫️Mediation ```

Mediation

``` Which of the following may appear on a survey…? ▫️Improvements ▫️Driveways ▫️Fences ▫️All of the above ```

All of the above

``` Lead based paint can be found in buildings built prior to…? ▫️1964 ▫️1978 ▫️1988 ▫️1991 ```

1978

``` This document gets completed by the seller and lists the condition of various items and appliances in the house…? ▫️HUD-1 Form ▫️Seller Disclosure Notice ▫️Property Condition Disclosure ▫️Personal Property Notice ```

Seller Disclosure Notice

``` The T-47 Residential Real Property Affidavit verifies that which of the following documents is up to date…? ▫️Property survey ▫️Seller Disclosure Notice ▫️Floor plans ▫️Site Map ```

Property survey

``` Sarah is in the process of selling her house. What must Sarah complete, which states the condition of various items and appliances in the house…? ▫️Seller Disclosure Notice ▫️HUD-1 Form ▫️Property Condition Disclosure ▫️Personal Property Notice ```

Seller Disclosure Notice