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Principles Of Real Estate I Study Guide Flashcards | StudBud
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Principles Of Real Estate I Study Guide
Principles Of Real Estate I Study Guide
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Study guide for the TREC pre license course Principles of Real Estate I
Flashcards
100 cards
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Practice quiz
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Questions
100
Answers
1
In a cooperative, any taxes, maintenance expenses, and mortgage liens are placed against
the building
the individual units
the individual tenants
the cooperative
2
How many acres would be contained in the following parcel of land: N1/2 of SW1/4 of NE1/4 of Section 3?
20
160
320
10
3
Can a judgment lien be placed on both a real and personal property?
Yes, with exemptions for commercial properties
No, only against personal property
No, only against real property, not possessions
Yes, against both real and personal property
4
The reason a real estate license applicant must possess certain stated personal & educational qualifacations/pass a test
is to qualify for the license renewal
is to be able to follow cert4ain prescribed standards of business conduct
is to prove adequate knowledge of the business
is to be able to understand continuing education course material
5
Which term refers to the study and description of a population?
Nonhomogeneity
Population review
Demographics
Situs
6
Which prohibits discrimination based on color, race, national origin, religion, gender, familial status?
Fair Housing Act of 1968
Civil Rights Act of 1866
Americans with Disabilities Act of 1990
Civil Rights Act of 1964
7
Homes that are constructed with a large factory built wall and roof componets are known as
mobile homes
manufactured homes
townhomes
modular homes
8
A broker who intends to receive a commission from someone other that the broker's client must first obtain consent of
the Real Estate Commission
the client
all parties to the transaction
the local association of REALTORS
9
Why does TREC approve or promulgate specific forms to be used by licensees?
The vast majority of transactions are similiar & it protects all parties
the federal Consumer Financial Protection Bureau ordered it
So that it can collect a royalty each time a form is used
Lenders require transactions to be recorded via computer
10
When a government entity transfers ownership of a home is a property disclosure required?
Government entities are not required to provide disclosures
Disclosure is only required if destroyed by fire
Yes, Texas law requires full disclosure
Federal regulation is no disclosre for HUD properties, city owned yes
11
What is an example of discharge a contract because of impossibility of performance?
When one principal or the other dies before the contract can be signed
Whe the buyer conceals the fact that he does not have the funds to buy it
When the seller actually does not legally own the proprty being sold
When the principals agree to fraudulently move boundries to claim more land
12
Even if the owner sells the property without the help of the broker, the broker gets credit for the sale in
a net listing
an exclusive agency listing
an exclusive right to sell listing
an open listing
13
Pur autre vie life estates are what kind of life estates?
For the life of another
Ordinary
For the life of the person in possession
For the life of the grantor
14
The federal rules concerning lead-based paint require
disclosure
testing
abatement
removal
15
A builder does work on a client's lake house & isn't paid, can he file a lien against that property & his home?
No, a lake house is considered personal property, not real estate
No, the builer may only file a specific lien against the lake house
Yes, On all of the client's properties
No, only against the client's main homestead
16
The laws prohibiting monopolies, contracts or conspiracies that unreasonably restrain trade are
antitrust laws
the Texas Deceptive Trade Practices laws
compensation laws
tort reform laws
17
When a complaint against a license holder is received, an investigation is conducted by
the Texas Association of REALTORS
the Texas Bar Association
the Texas Real Estate Commission (TREC)
the Texas attorney general
18
The Fair Housing Act provides for certain exemptions, but no exemptions apply when
a single family home rental when it is 1 of only 4 owned by a person
commercially operated club-owned lodgings rented to its members
a real estate license holder is involved in a transaction
the rental of rooms in an owner occupied 1-4 family dwelling
19
When dwellings are designed specifically for persons with a handicap
the law does not prohibit occupancy exclusively to handicaped tenants
persons with a drug addiction must be accepted as tenants
landlords may deny handicaped persons to make reasonable accomodations
the law prohibits restricting occupancy exclusively to handicaped tenants
20
Rules and regulations adopted by government agencies
are considered a precedent for future rules and regulations
are used to implement and enforce legislative acts
may not preescribel penalties for violatiions
do not have the force and effect of legislative acts
21
A federal judgment lien is effective for how many years?
10
15
20
12
22
The relationship between a broker and the broker's sales agent is usually that of
a single agency relationship
a dual agency relationship
a special agency relationship
a general agency relationship
23
When demand decreases, real estate prices
none of these
increase
decrease
remain stable
24
Is the owner of a sole proprietorship obligaged to file as a business with the secretary of state's office?
Many sole proprietorships go out of business in 1 year so not till year 2
No but a sole proprietorship must file with the Dept. of Business Licensing
Yes, a sole prioprietorship must file
No, a sole proprietorship need not file
25
A limited partnership includes
limited partners only
both general and limited partners
general partners only
special partners only
26
After a property is sold to satisfy a judgment lein, the debor should receive
a release of judgment
a writ of execution
a writ of attachment
a deficiency judgment
27
When subsurface rights are sold seperately from surface rights
the surface interest is considered dominant over the mineral interest
the mineral interest is considered dominant over the surface interest
the mineral rights owner isn't normally entitled to enter the property
the rights typically include minerals such as iron ore, limestone & gravel
28
A homeowner has a property insurance policy with a coinsurance clause, what's the LEAST percentage of replacement cost?
80
75
100
50
29
When a four-acre piece of property is offered at $3 per square foot, what is the asking price?
none of these
$624,860
$436,360
$522,720
30
A period of renewed growth after a depression represents which stage of the business cycle?
REcession
Depression
Expansion
Revival
31
A homeseller's tax bills are especially useful for real estate agents because
they give a listing agent a target for setting the home price
they give both sellers & buyers agents an idea of the direction of value
they give a listing agent an idea of how much commission the seller can pay
they give potential homebuyers a negotiating strategy
32
Wich shows only the location and dimensions of a parcel of land?
Dimension survey
Improvement survey
Survey sketch
Loacation survey
33
For a specified amount of money, an owner agrees to give a prospective buyer the right to buy. This is
an escrow contract
an option contract
an installment contract
a land contract
34
The asking price for a property a broker has listed is now too low. Which duty requires them to inform the principal?
Disclosure
Accounting
Loyalty
Obedience
35
For an entrepreneur to set up a real estate brokerage as a sole proprietorship, they must first
register with the Texas Association of REALTORS
have a valid broker's license
There are no preliminary regulations only after the 10th real estate sale
file an application with TREC so it can determine if more are needed there.
36
If Bill & John own adjacent properties, and Bill gives John an easement to cross Bill's land Bill's property is
the servient tenement
none of these
the dominant tenement
the adjacent tenement
37
What might be the role of a real estate broker if a homeowner seeks to overturn a property appraisal?
A broker may offer actual appraisals & sales prices of comparable homes
A broker may leverage local lenders in keeping taxes low
A broker may testify about the current market conditions
A broker may offer the attorney from the local board of REALTORS assistance
38
All are tests for determining a fixture EXCEPT
intention of the parties
method and permanence of attachment of the item
adaptation of the item to the real estate
size of the item
39
Which statement BEST describes the relationship of supply and demand in the real estate market?
Supply and price move in opposite directions
When supply goes up, price goes up
Demand and price move in opposite directions
When both supply and demand increase, real estate prices rise
40
The Texas law allowing a specific time limit during which parties to a contract may bring legal suit is
the statute of limitations
the statute of frauds
the discharge of a contract right
the breach of contract right
41
Loan discount points can be deducted in the year of the purchase if all of the following conditions are met EXCEPT
if the mortgage is secured by the taxpayer's principal residence
if the discount points are fees, not interest
if they are a charge for the use of the money
if the points are paid in cash at closing
42
Which action of a real estate license holder does NOT violate antitrust laws?
Arranging with another broker for each office to operate in only one area.
Telling prospects the commissions are in line with other brokers
Telling prospects the commissions charged are based on the services offered
Agreeing with another broker to deny access to listings to discount brokers
43
Must a broker or sales agent have a written listing agreement to sell a property in Texas?
No not necessary unless the license holder wants to assure a commission
Yes, only a written listing agreement can be used to transfer property
No, many properties that do not involve listing agrements sell each year
Yes, the listing & sales agreement are the only two documents needed
44
Which of the following is TRUE?
TREC may suspend or revoke a licensee who discriminates
TREC may suspend but not revoke a licensee who discriminates
TREC may make a licensee pay punitive damages who discriminates
TREC may only place on probabation a licensee who discriminates
45
What kind of estate establishes complete ownership and my be inherited, given away, or sold by the owner?
Conventional life
Legal life
Fee simple
Defeasiblefee estate
46
The economic characteristic that refers to people's choices and preferences for a given area is
permanence of investment
improvements
situs
relative scarcity
47
What is a net listing?
None of these
One that specifies the amount the seller is to receive from the sale
One that specifies the amount of the commission to be paid to the broker
One that specifies the total amount of the sale & the commission paid
48
Which is a misleading or deceptive practice according to the DTPA?
Advertsing a property with no intention of selling the property as such
All of these
Claiming that repairs have been made when they have not
Claiming that something is new when it is not
49
A mortgage lien is what kind of a lien?
Specific, voluntary
General, involuntary
Specific, involuntary
General, voluntary
50
An owner of a cooperative unit owns
the land under the cooperative unit
shares of stock in the cooperative
a proportionate share of the entire cooperative complex
the cooperative unit & a proportionate share of the undivided common areas
51
The term used for the process of developing an opinion of value for a parcel of real estate is
broker's opinion
assessment
valuation
appraisal
52
What describes the surface, below to the center, above to infinity, natural things permanently attached & legal rights?
Land
Real Estate
Real Property
Property
53
Naturally growing plants and trees that do NOT require cultivation are classified as which kind of property?
Personal
Fruits of industry
Fruits of labor
Real
54
Even if a name and number are on the do-not-call list, the individual may be contacted if
a person has had an affiliated business relationship within 6 months
a person fits a statistical profile of a likelihood of being interested
a person has had a business relationship with the company within 18 months
a person has had a business relationship with a competing company
55
If a partnership, as tenants in common, holding land in the partnership's name sells, how many partners must sign?
Just the attorney representing the partnership
One signature by any of the partners
All the partners
Just the senior partner
56
Which is co-ownership with right of survivorship?
Joint Tenancy
Community Property
Tenancy in common
All of these
57
Which is the same as sole ownership?
Tenancy in common
Joint tenancy
Tenancy at sufferance
Ownership in severalty
58
Which is a physical characteristic of land?
Relative scarcity
Area preference
Permanence of Investment
Nonhomogeneity
59
A grant from an owner to a school "on the condition that" the property be used only for educational purposes is
an indeterminable fee estate
a fee simple subject to a condition precedent
a determinable fee estate
a fee simple subject to a condition subsequent
60
Datums and Benchmarks are terms exclusively used to describe
the headwaters of a river
An elevation point for the purpose of establishing air rights
the originating point of an oil or gas pipeline
the originating point of a circle or the originating point of a distance
61
An agreement in which the buyer and seller have agreed to meet specific obligations is called
an executory agreement
an anticipatory agreement
an executed agreement
a nonvoidable agreement
62
The License Act is administered by
the Texas Bar Association
the Texas Sunset Commission
the Texas Legislature
the Texas Real Estate Commission
63
An agent's responsibility is
only to the principal and customers
only to principals and third parties
only to the principal
to the principal, the customers, and third parties
64
Which is generally NOT subject to ad valorem real estate taxes?
Farms
Banks
Senior Citizens
City Park Lands
65
Real estate must be reappraised for tax purposes at LEAST every how many years in Texas?
One
Three
Two
Five
66
Which of the following is TRUE of a licensee who commits an act of housing discrimination?
They are not subject to potential civil action or TREC disciplinary action
None of these
They are subject to potential civil action but not TREC disciplinary action
They are subject to potential civil action, and TREC disciplinary action
67
A homestead may suffer a forced sale for payment of mortgages where the loan proceeds were used to do which?
All of these
Improe the residence
Purchase the residence
Refinance the residence
68
A neighbors child is hurt when a non-maintained swing set breaks in your yard, which kind of insurance will cover this?
Personal property
Homeowners' warranty
Liability
Property
69
Under community property laws, property owned before marriage is considered
seperate property
jointly owned
community property
none of these
70
The sum to be paid an aggrieved party from the real estate recovery trust account is determined by
the local association of REALTORS
the Court
the Texas Real Estate Commission
the Broker-Lawyer Committee
71
All would affect supply EXCEPT
population
construction costs
the labor force
government controls
72
A manufactured home is generally considered
personal property
real estate
a fixture
real property
73
States bordering Texas all permit which kind of legal description that Texas does NOT permit?
REcorded subdivision
Metes and bounds
Texas Department of Interior map
Rectangular survey system
74
While it is permissible to sell off pieces of a section, is it permissible to blend pieces of a section together?
Adjoining sections may be combined if the legal description is accurate
Yes, but only if the abutting pieces are at least 1/4 of a section each
In urban areas with populations over 1.5 million it is permissible
No, under Texas law, sections must always maintain their boundary integrity
75
A homeowner's right to live in a newly purchased house is the right of
enjoyment
possession
control
disposition
76
Which type of homeowners insurance policy provides the MOST extensive covrage?
HO-C
HO-A
HO-B
Alternative policies sold with the approval of the Insurance commissioner
77
Must salespersons working for builders or developers have a real estate license?
Yes, anyone involved in property sales in Texas must be licensed
Rules change from county to county so check with the county court
Paid employees of builders or developers do not need to be licensed
Anyone working for a builder needs a special license that's different
78
Fixtures are:
chattels
emblements
removable by a tenant before the expiration of the lease
real property
79
To avoid liability, should listing agents simply accept the sellers' word when they provide info about their property?
The listing agent must challenge, for the record, every detail provided
Checking details of the listing agreement is a buyer chore
It is important to have the seller fill out property info & agent not to
It's always best to verify from an independent source what a seller says
80
When a four acre piece of property is offered at $3 per square foot, what is the asking price?
None of these
$522,720
$624,860
$436,360
81
All are categories of the uses of real property EXCEPT
developmental
agricultural
residential
industrial
82
Under the federal Fair Housing Act, real estate organizations, (MLS) may NOT do which if someone is in a protected class
All of the above
Discriminate in the listing or sale of commercial properties
Refuse membership or put conditions on participation
As the age of prospective clients
83
The three requirements for a selling broker to be entitled to a sales commission include all of the following EXCEPT
advise the buyer in writing they should obtain title insurance/abstrast
the person advertised the property for sale
the person held a valid real estate broker's license
the agreement to pay was in writing and signed by the party to be charged
84
Which of the following is TRUE?
Regulations by Gov. agencies expand on law & have the effect of law
Regulations by Gov. agencies expand on law & don't have the effect of law
None of the above
Regulations by Gov. agencies are merely advisory & have no effect of law
85
All of the following would be considered improvements to land EXCEPT
utilities
annual crops
sewers
roads
86
A broker representing a seller would be what kind of agent?
Formal
Special
General
Informal
87
Notifications between the parties after the effective date of the contract
are none of these
must be in writing
must be both of these
may be made orally
88
The profits realized from the sale or exchange of real property are
equity
income tax deductions
capital gains
investments
89
During the time between the signing of a real estate sales contract and the actual passing of the title, the contract is
a voidable contract
an executed contract
an executory contract
an implied contract
90
In what kind of contract do the parties show their intentions by words (either oral or written words)?
Unilateral
Express
Bilateral
Implied
91
Under the Texas Real Estate License Act, a broker who represents a party in a real estate transaction is
a dual agent
a principal
a buyer's agent
that party's agent
92
Under Texas law, can a property be sold to someone who is NOT a U.S. citizen?
No, anyone buying a property in Texas must be able to prove citizenship
Citizenship is not listed as a required element for a valid contract
Noncitizens may purchase property only if the TDFR approves the sale
Yes, but noncitizens must prove their intent to remain in the United States
93
The economic term demand is defined as:
the amount of meoney people are willing to borrow
the pent up consumer demand for specific goods in the marketplace
the amount of money people are willing to pay
the amount of goods people are willing and able to buy at a given price
94
Of the 13 members of the Texas Real Estate Broker Lawyer Committee how many must be appointed by TREC?
10
6
All
8
95
The Texas Real Estate License Act was first passed in
1947
1949
1919
1939
96
An encroachment of long standing may result in an easement by
necessity
adverse possession
prescription
implication
97
The method used to describe real estate by distance and direction is:
the metes-and-bounds method
the rectangular survey method
the recorded subdivision plat method
the lot-block-tract method
98
A purpose of the US & individual state constitutions is to establish citizens rights & delineate goverments authority's
limits
privileges
advantages
rights
99
Fair housing laws allow any aggrieved party to file a discriminatory practices complaint any of the following EXCEPT
private litigation
in the court of appeals
attorney general litigation
in administrative proceedings
100
Which is considered personal property?
Permanently attached bathtub
Trade Fixture
Fixture
None of these
