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Principles of Real Estate 1 Final Exam

Terms in this set (63)

If a real estate salesperson closes on a transaction, who pays the salesperson their commission?
The salesperson's sponsoring broker
A means of comparing similar type properties, which have recently sold, to the subject property is known as the?
Market Comparison Approach
The market comparison approach is commonly used for this property type?
Residential
The amount of goods offered for sale within a given market at a given price during a given time period is known as?
Supply
A real estate agent is an example of what type of agent?
Special agent
A refrigerator is typically considered?
Personal Property
Mobile homes not permanently attached to the land are generally considered?
Personal Property
Which of the following is considered a legal test for determining if an item is a fixture or not?
Mode and permanence of how the item was attached
Adaptation of the item
Intention of the parties
All of the above
The right of exclusion, which allows a landowner to prevent others from entering or occupying their property, is included in the?
Bundle of rights
Which of the following is an example of a fixture?
Kitchen cabinets
Which of the following is an advantage to owning a home?
Potential for asset appreciation
Tax benefits
Pride of ownership
All of the above
An individual who has not owned real property for at least the previous two years is known as a?
First-time homebuyer
Which of the following is NOT a form of real property?
Cooperative
A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property is known as a?
Condominium
A mortgage payment typically includes?
Interest
Principal
Insurance
Real estate brokers have a ...... relationship with the principal?
Fiduciary
The 'L' in the acronym C.O.A.L.D. stands for which fiduciary duty?
Loyalty
When a real estate broker represents a buyer in a transaction, the broker and buyer are bound by which of the following contracts?
buyer representation agreement
An agency relationship created by oral or written agreement between the principal and the agent is known as?
Express agency
The Deceptive Trade Practices Act discourages agent from which of the following acts?
Puffing- usually a exaggeration made by a salesperson or found in an ad regarding the quality of the item or the service offered.
The prohibition of fair housing discrimination by a licensee is described in which of the following Acts?
Texas Real Estate License Act
The laws governing fair housing are also referred to as?
equal housing opportunities
Under the Equal Credit Opportunity Act, lenders must provide financing based on which of the following criteria?
Income
Blockbusting is also known as?
panic selling
Any medical disorder, condition, disfigurement or loss affecting one of the body systems is known as a...?
Physical impairment
HUD fair housing complaints can be filed in which of the following ways/
Online
Mail
Phone
Which of the following is considered illegal under the Fair Housing Act...?
Refusing to sell to a protected class
Refusing to show properties in neighborhoods based on racial criteria
Refusing to show properties in neighborhoods based on religious criteria
The intricacies in marketing properties for others involves...?
Competency
An agent must be honest and truthful. This is an example of...?
integrity
Which of the following is one of the TREC canons of professional ethics...?
Fidelity
Integrity
Competency
If an agent does not abide by the TREC canons of professional ethics, which of the following may occur...?
The agent's license can be revoked
The agent's license can be suspended
The agent may be placed on probation
Fidelity, on TRECs canons of professional ethics, implies?
Loyalty
In addition to the TREC canons of professional ethics, this organization also publishes a code of ethics that must be followed by its members...?
National Association of Realtors
Who is legally entitled to receive a commission from a principal for a sale or rental of the principal's property...?
real estate broker
A real estate broker is authorized to perform which of the following acts...?
Identify properties for purchase or lease
Deal or sell options on real estate
Auction off real estate
If an administrative penalty is not paid, who is responsible for collecting the payment...?
Attorney General
Which of the following is exempt from holding a real estate license...?
A homeowner looking to sell their house on their own
Who determines the standards for real estate licensing courses in Texas...?
Texas Real Estate Commision
The subdivision plat method of describing property includes which of the following...?
Lots and Blocks
When using the metes and bounds method to describe property, the origin point is also the...?
End Point
If an individual uses sections to help describe a property, they are most likely using which of the following methods...?
Government Survey
Metes and bounds is an example of a...?
Legal description
Which of the following property descriptions is not used in the State of Texas?
Government Survey
Until a purchase contract is closed upon, it is considered a/an...?
Executory contract
If one of the parties in a real estate transaction are not considered competent, the contract between the parties is considered a/an...?
voidable contract
To mingle or mix, for example, a client's funds in the broker's personal or general account is known as...?
commingling
Which of the following real estate contracts must be in writing...?
Purchase contract for a multi-family property
Lease contract for greater than 1 year
Sales contract
Oral listing agreements between a seller and a broker are...?
Unenforceable
A fee simple estate is an example of which of the following estates...?
Freehold estate
A lien imposed against property without consent of an owner is referred to as a/an...?
involuntary lien
A right acquired by one party to use the land of another party for a special purpose is known as a...?
Easement
Which of the following acronyms can be used to describe government powers with regards to real property...?
PETE
The land that is encumbered by an easement is referred to as the...?
Servient tenement
How is ownership in a community property between a husband and wife divided...?
Ownership is divided equally among the owners
The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant is known as...?
right of survivorship
A joint tenancy is terminated when which of the following ceases to exist...?
Interest, Title, Posession
Property owned by one person only is referred to as?
Severalty Ownership
A division of real or personal property or the proceeds therefrom among co-owners is known as?
partition
This type of listing provides that the agent may retain as compensation for the agent's services all sums received over and above a net price to the owner...?
Net Listing
Which entity produces the most commonly used Exclusive Right to Sell agreement in Texas...?
Texas Association of Realtors
A broker's compensation is
Negotiable
Which of the following is a type of contract used between brokers and sellers...?
Exclusive Agency Agreement
Exclusive Right to Sell Agreement
Open Listing
Which of the following is an example of an addendum found in a listing contract...?
Seller Disclosure Notice
Request for Information from an Owner's Association
Lead Based Paint Disclosure
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