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RELE 1301 (F2 F3) Flashcards | StudBud
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RELE 1301 (F2 F3)
RELE 1301 (F2 F3)
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1
The methods use primarily in Texas to describe real estate are
metes and bounds and recorded subdivision plat
metes and bounds and reference to a previously recorded document
metes and bounds and rectangular survey
rectangular survey and recorded subdivision plat
2
A contract that may be disaffirmed by the party who might be injured if enforced, even if it appears valid, is known
as a defaulted contract
as a voidable contract
as a void contract
as an unenforceable contract
3
Property owned before marriage, under community property laws, is considered
community property
jointly owned
none of these
separate property
4
___ are homes constructed with large factory-built walls and roof components.
Townhomes
Manufactured homes
Modular homes
Mobile homes
5
Surface rights and subsurface rights are sold separately when the
mineral interest is considered dominant over surface interest
surface interest is considered dominant over mineral interest
owner of mineral interest may not legally enter property of surface owner
rights include iron ore, limestone, and gravel
6
James & Jon own adjacent properties. James give Jon an easement to cross his land. James' property is
the servient tenement
a dominant tenement
none of these
the adjacent tenement
7
The debtor should receive ____ after a property is sold to satisfy a judgment lien.
a release of judgment
a writ of execution
a writ of attachment
a deficiency judgment
8
An exception to destroying joint tenancy is
bankruptcy
foreclosure sale proceedings
marriage of one of the joint tenants
termination of one of the four essential unities
9
When something remains to be done by one or both parties, which type of contract exists?
Executory
Bilateral
Unilateral
Executed
10
A land grant to a college "on the condition that" the property be used only for educational purposes is
a determinable fee estate
A fee simple subject to a condition subsequent
an indeterminable fee estate
a fee simple subject to a condition precendent
11
____ are profits realized from the sale or exchange of real property.
Income tax deductions
Capital gains
Equity
Investments
12
When is a real estate broker a party to the contract?
when the broker is employed under a special agency agreement
when broker given power of attorney or acting under management agreement
when the broker is a Texas licensed attorney
when the broker is also the escrow agent
13
An association formed by persons who operate a business as co-owners and share in the profits and losses are known as
a partnership
a corporation
a franchise
a sole proprietorship
14
Specific, involuntary lien giving security to persons or companies performing labor or furnishing materials
a mechanic's lien
a judgment lien
a vendor's lien
a vendee's lien
15
To sell a property in Texas, must a broker or sales agent have a written listing agreement?
Yes, only a written listing agreement can be used to transfer property
No, many properties do not involve listing agreements & change hands ea yr
No, written listing agreement not necessary unless to assure commission
Yes listing agreement & purchase contract are the only two documents needed
16
_____ allows a specific time period for a party of a contract to bring legal suit to enforce their rights.
The breach of contract right
The statute of limitations
The statute of frauds
The discharge of a contract right
17
Should listing agents accept the sellers' word when they give information about their property?
It is always best to verify from independent sources
Checking details is a buyer chore, not a listing agent chore
Listing agent must challenge every detail provided by seller
It is important seller complete property information & agent remain silent
18
A client refuses to pay builder for work done on lake house. Can the builder file a lien on both lake house & main home?
No, builder may only file a lien against the main homestead
Yes, the builder may place a lien on all properties owned by customer
No, the builder may only file a specific lien against the lake house
No, a lake house is considered personal property, not real estate
19
___ prohibit monopolies & contracts, combinations, & conspiracies that unreasonably restrain trade.
Tort reform laws
Texas Deceptive Trade Practices laws
Antitrust laws
Compensation laws
20
A role a real estate broker may play in the event a homeowner seeks to overturn a property appraisal may be
to offer the attorney for the local board of REALTORS to prepare a case
to testify about current market conditions and direction of home prices
to leverage local lenders who have an interest in keeping taxes low
to offer actual appraisals and sales prices of comparable homes
21
The terms
datums
and
benchmarks
are used to exclusively describe
the originating point of a circle & the originating point of a distance
headwaters of a river
the originating point of an oil or gas pipeline
an elevation point for the purpose of establishing air rights
22
The following take priority over all other liens
Mortgage liens
Real estate taxes and special assessments
Mechanics' liens
IRS tax liens
23
Which form of agency is created when a seller and a broker sign a listing agreement?
Agency by ratification
Agency by estoppel
Express agency
Qualified agency
24
With the exception of ___, loan discount points can be deducted in the year of purchase.
the mortgage secured by the taxpayer's principal residence
the points paid in cash at closing
the discount points are fees, not interest
a charge for the use of money
25
As though they were a fee owner, a party who can enjoy both possession & ordinary use & profits arising from ownership.
The holder of a remainder interest
The license tenant
The life tenant
The holder of a reversionary interest
26
An agent's responsibility is
only to the principal and customers
only to the principal
to the principal, the customers, and third parties
only to principals and third parties
27
A non-judicial foreclosure sale is a public sale that is
a legal action instituted by a prosecutor
conducted under the supervision of a court
a legal action instituted by a sheriff
not conducted under the supervision of any court
28
Sole ownership is the same as
ownership in severalty
joint tenancy
tenancy in common
tenancy at sufferance
29
Is it permissible to blend pieces of sections together in a land transaction?
Yes, but only if pieces are at least one-quarter of a section each
No, sections must always maintain their boundary integrity
Pieces may be combined as long as the legal description is accurate
As long as the population exceeds 1.5 million
30
Discharging a contract because of impossibility of performance can be demonstrated as
when the principals agree to fraudently move boundaries to claim more land
when the seller does not legally own the property being sold
when the buyer conceals that he does not have funds to buy a property
when one principal or the other dies before the contract can be signed
31
Explaining seller representation, subagency, buyer representation, and intermediary position can be found on the form
Disclosure of Representation form
Information About Representation form
Information About Agency form
Information About Brokerage Services form
32
A contract where parties show their intentions by words (oral or written) is
bilateral
implied
unilateral
express
33
The buyer and seller have agreed to meet specific obligations. This is called
a non-voidable agreement
an executed agreement
an anticipatory agreement
an executory agreement
34
After the effective date of the contract, notifications between the parties
may be made orally
must be in writing
are none of these
must be both of these
35
A long standing encroachment may result in an easement by
necessity
prescription
implication
adverse possession
36
A real estate license applicant must possess certain personal and educational qualifications and pass an examination to
be able to understand continuing education course material
be able to follow certain prescribed standards of business conduct
qualify for license renewal
prove adequate knowledge of the business
37
Which kind of legal description is permitted in states bordering Texas (Louisiana, Arkansas, Oklahoma, New Mexico)?
Texas Department of Interior map
Recorded subdivision
Rectangular survey system
Metes and bounds
38
For a sole proprietor to set up a real estate brokerage, they must first
file a territorial application with TREC
have a brokerage license after the 10th real estate sale
register with the Texas Association of REALTORS
have a valid broker's license
39
The five essential elements of a contract for the sale of real estate under the Texas statute of frauds are legal object
competent parties, offer & acceptance, earnest money, signed
competent parties, offer & acceptance, consideration, in writing & signed
competent parties, offer & acceptance, consideration, signed by broker
competent parties, offer & acceptance, earnest money, signed by broker
40
Included in a limited partnership is
both general and limited partners
special partners only
general partners only
limited partners only
41
Unless __, judgement liens do not attach to homestead property in Texas.
homestead community property is owned in the sole name of the husband
mechanics lien has been perfected or an exemption from forced sale applies
a child support lien is involved
a lis pendens has been filed
42
A syndicate is
a legal entity where individuals participate by purchasing stock
a legal entity where participants are not liable for debts of other parties
two or more people or firms join together to make & operate a RE investment
an entity with characteristics & benefits of ltd partnerships & S corp
43
The location and dimensions of a parcel of land can be found in
an improvement survey
a location survey
a dimension survey
a survey sketch
44
Which type of estate is the highest type recognized by law?
reversionary estate
defeasible fee estate
fee simple estate
life estate
45
People's choices and preferences for a given area refers to the economic characteristic of
relative scarcity
permanence of investment
situs
improvements
46
__ gives a purchaser an irrevocable right to buy a present owners real estate at a certain price within a limited time.
An escrow contract
An installment contract
An option contract
A land contract
47
Is a real estate license required for a salesperson working for builders or developers?
Anyone working for a builder needs a special license
Yes, anyone involved in property sales in Texas must be licensed
Paid employees of builders or developers do not need to be licensed
Rules change from county to county
48
Why are specific forms used in real estate transactions approved or promulgated, or both by TREC?
So they can collect a royalty each time a form is used
A vast majority are similar and standardized forms protect all parties
Federal Consumer Financial Protection Bureau ordered TREC to provide forms
Lenders require transactions be recorded via computers
49
The process of developing an opinion of value for a parcel of real estate is called
an assessment
an appraisal
a broker's opinion
a valuation
50
How many years is a federal judgment lien effective?
twenty
ten
twelve
fifteen
51
___ when dwellings are designed specifically for persons with a handicap.
The law does not prohibit restricting occupancy exclusively to handicapped
Landlords may deny permission to make reasonable modifications
The law prohibits restricting occupancy exclusively to handicapped
Persons with a drug addiction must be accepted as tenants
52
Homeowners insurance policy providing the MOST extensive coverage is
HO-C
HO-B
HO-A
Approved alternative policies sold with approval of insurance commissioner
53
A property owner increases ___ when paying off debt.
desire
resale value
price
equity
54
What kind of relationship is between a broker and the broker's sales agent (as an agent)?
Dual agency
General agency
Special agency
Single agency
55
The buyer acquires an interest in land once both the buyer and seller have signed a sales contract, known as
equitable title
legal title
executory title
partial title
56
Is is possible to place a judgment lien on both real and personal property?
Yes, against both real and personal property
No, only against real property, not possessions
Yes, with exemptions for commercial property
No, only against personal property
57
Aggrieved parties may file an original complaint against discriminatory practices via any of the following EXCEPT
administrative proceedings
the court of appeals
private litigation
attorney general litigation
58
What kind of lien is a mortgage lien?
Specific, voluntary
General, involuntary
Specific, involuntary
General, voluntary
59
Taxes, maintenance expenses, and mortgage liens of a cooperative are placed against
the building
the individual units
the individual tenants
the cooperative
60
An application for a real estate license has ___ to satisfy examination requirements.
60 days
three months
one year
six months
61
Four forms of listing agreements generally used are
exclusive right to sell, exclusive agency, open, and net listing
exclusive right to list, exclusive agency, open and net listing
exclusive right to list, exclusive representation, open and net listing
exclusive representation, exclusive agency, open, and net listing
62
A contract is considered _____ between the signing of a real estate sales contract and actually passing title.
an executed contract
an executory contract
an implied contract
a voidable contract
63
Consent must be received from __ if a broker intends to receive a commission from someone other than the broker's client
the local association of REALTORS
the client
the Real Estate Commission
all parties to the transaction
64
Generally, a manufactured home is considered
a fixture
personal property
real property
real estate
65
A selling broker must meet all requirements to be entitled to a sales commission EXCEPT
buyer advised in writing to obtain title insurance or abstract before close
the person advertised the property for sale
the agreement to pay was in writing and signed by the party to be charged
the person held a valid real estate broker's license
66
The study and description of a population is referred to as
population review
situs
non-homogeneity
demographics
67
Can a property be sold in Texas to someone who is NOT a U.S. citizen?
Yes, but non-citizens must prove intent to remain in US for at least 7 yrs
Citizenship is not listed as a required element for a valid contract.
No, anyone buying property in Texas must be able to prove citizenship.
Only if Texas Dept of Financial Responsibility approves the sale
68
Delinquent taxes owed by a homeowner aged 65 or older who lives in the home
must pay all accumulated taxes & interest within 90 days of sale of home
may defer the payment of taxes for as long as they own or live in the home
continue to have penalties accrue on tax due after deferral affidavit filed
have the tax liability cancelled
69
MOST sections in Texas are
larger than 640 acres
smaller than 640 acres
exactly 640 acres
smaller than 1 square mile
70
Under TRELA, a broker who represents a party in a real estate transaction is
that party's agent
a dual agent
a principal
a buyer's agent
71
Texas open-beach laws
deny the right to require removal of a structure located on a public beach
permit a new home to be built within a public beach easement
forbid construction on individually owned property on Texas Gulf Coast
reserve for the public the perpetual right to use the public beaches
72
What kind of estate is
pur autre vie
?
Ordinary
For the life of another
For the life of the grantor
For the life of the person in possession
73
A sole proprietorship owner is obligated to file as a business with the secretary of state's office (yes or no, and why)
Need not file until after completing first year of business
No, but must file with Dept of Business Licensing & Texas Dept of Revenue
No, sole proprietorship need not file with the secretary of state's office
Yes, sold proprietorship must file with the secretary of state's office
74
Cultivated annual crops is included in which classification of property?
Commercial
Real
Fixtures
Personal
75
When a five-acre piece of property is offered at $4 per square foot, what is the asking price?
$871.200
None of these
$624,860
$522,720
76
A ___ allows property owners to provide their own financial care during their lifetime and permits subsequent changes.
a land trust
a revocable living trust
a testamentary trust
an irrevocable living trust
77
In Texas, at LEAST how many years must real estate be reappraised for tax purposes?
One
Five
Two
Three
78
Sale of a homestead may be forced when loan proceeds are used for which of the following?
Refinance the residence
Purchase the residence
All of these
Improve the residence
79
A(n) __ is a person who sells, buys, leases, or transfers an easement or right-of-way for another for compensation.
leasing agent
transfer agent
intermediary agent
right-of-way agent
80
The requirement for a definite termination date in a real estate contract
does not apply to property management agreements
applies to leases
applies to all real estate transactions
does not apply to listings
81
Working with other parties to negotiate the sale, rental, or purchase of real estate is referred to as
brokerage
appraisal
consulting
development
82
Debts of deceased persons are considered
general, statutory, voluntary liens
specific, equitable, involuntary liens
general, statutory, involuntary liens
specific, equitable, voluntary liens
83
A real estate agent may find a home sellers tax bills useful because they give
a listing agent an idea of commission the seller can afford
agents for both seller & buyers an idea of the direction of property values
a listing agent a target for setting the home price
potential home buyers a negotiating strategy
84
The following are true EXCEPT __ regarding police power.
a state's police power is passed to cities through enabling acts
police power is vested to establish state legislation to preserve order
police power originates at the federal level
use & enjoyment of property is subject to restrictions by enabling acts
85
In a cooperative unit, the title holder owns
the cooperative unit and a proportionate share of undivided common areas
share of stock in the cooperative
a proportionate share of the entire cooperative complex
the land under the cooperative unit
86
Is a property disclosure required when HUD or a municipality transfer ownership of a home?
Government entities are not required to provide disclosures
Yes, Texas law requires full disclosure
No disclosures will be provided on HUD homes, but must be given on others
Disclosures required if property is wholly or partially destroyed by fire
87
How many partners must sign the agreement of legal partnership, as tenants in common holding land in name of partnership
Just the attorney representing the partnersip
Just the senior partner
One signature of any partner
All the partners
88
Statutory agency who performs periodic review of each state agency, commission & board to evaluate purpose & efficiency
The Sunset Commission
The Sunrise Commission
The Real Estate Commission
The Broker-Lawyer Commission
89
Multiple purchasers buy undivided interest in same real estate with right to use facility for fixed or variable time
community property ownership
time-sharing
cooperative ownership
syndicating
90
No exemptions apply under the Fair Housing Act
for club-owned lodgings rented to members, as long as operated commercially
for the rental of a single-family home when not more than four homes owned
when a real estate license holder is involved in a transaction
for the rental of rooms in an owner-occupied, one-to-four family dwelling
91
Unless a property is held by ___, it can be owned in severalty.
a limited liability company
a tenancy in common
a sole proprietorship
a corporation
92
Real estate license holders use standard contract forms drafted and revised by
The Texas Real Estate Contract Revision Committet
the Texas Fair Housing Commission
the Texas Real Estate Commission
the Texas Real Estate Broker-Lawyer Committee
93
In a rectangular survey system, a township contains
1 square mile
6 sections
36 sections
640 acres
94
Ad valorem taxes are paid
in advance monthly
monthly
in arrears
quarterly
95
Unless a riparian owner can prove otherwise, water in every river, stream, lake, canyon, etc is the property of
the State of Texas
the municipality where it is located
the remainderman
the fee estate owner
96
A term describing anything that affects the title to or use of the property?
Encumbrance
Encroachment
Lien
Easement
97
Notification of availability of payment from the real estate recovery trust account is made to the public by
all license and certificate holders
only real estate brokers
all mortgage lenders
only certified general appraisers
98
An individual on the do-not-call list may be contacted if the person
had a business relationship with affiliated company in past 6 months
fits a statistical profile suggesting likelihood of being interested
had a business relationship with the company in past 18 months
had a business relationship with competitor
99
The license laws primary purpose is do all the following EXCEPT
to protect the public from dishonest or incompetent brokers or sales people
to prescribe minimum standards & qualifications for brokers & sales agents
to maintain high standards in the real estate profession
to protect licensed brokers from competition
100
A type of community where common property is owned by HOA with mandatory membership and assessments for each unit owner
a mixed-use development
a converted-use property
a planned unit development (PUD)
a retirement community
