Real Estate Principles 1 Practice Exam

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• Contracts for the sale or transfer of real estate must be in writing due to which legal concept?
• To learn the history of insurance claims on a property, what can a buyer request?
• How much capital gains tax exemption is a married couple that has lived in their home for the past three years eligible for?
• Does TREC regulate new home builders? Why or why not?
• What term describes the practice of encouraging panic selling of homes at below market value?
• When are there no exemptions to the applicability of the federal fair housing law?
• The first nine articles of the NAR Code of Ethics are known as the:
• Under TRELA, which activity, done with the expectation of valuable consideration, would NOT qualify as practicing brokerage?
• Which entity enforces penalties for license violations in real estate in Texas?
• Which of the following is NOT a required disclosure that real estate license holder must provide to consumers?
• Which statement about the Community Reinvestment Act is true?
• Which term refers to the fact that no two tracts of land are the same?
• Wesley’s right to use water from a creek along his boundary is described by which set of rights?
• What information does a benchmark provide that a monument does not?
• Severance means what in real property terms?
• What is redlining?
• Which factor is cited as the sole determinant of economic scarcity in real estate?
• Staggered six-year terms are served by members of:
• When land is in short supply and in high demand:
• A client is only owed fiduciary duties from their agent.
• There are 13 members on:
• Which of the following is a method of disclosing agency?
• Which statement best summarizes the NAR Code of Ethics Article 16: Respect Existing Agreements?
• Can the original offer be reconsidered and accepted by a party after they have already extended a counteroffer?
• Sales agents may accept commissions from:
• A plat is divided into what units?
• What describes eligibility for a Texas real estate license regarding citizenship?
• Real property does NOT include which of the following?
• A detailed description that uniquely identifies the property in a way that a surveyor could locate it is called
• The limit on a rural homestead is currently:
• Which of these is NOT one of the things license-holders must do, according to TREC?
• All of the following are grounds for disciplinary action, including revocation or suspension of a license, EXCEPT
• According to the Canons of Professional Ethics, what must every broker do with Consumer Protection Notice TREC No. CN 1-2?
• What are the possible consequences if a licensee attempts to lure away the already represented client of another broker in Texas?
• What is the name of the law that requires agencies to be reviewed periodically to determine continued necessity (every 12 years)?
• Which of the following best describes a fixture?
• Which of the following is NOT an obligation of a real estate brokerage practitioner?
• The Broker-Lawyer Committee is made up of:
• Where will you find the main laws governing real estate license holders?
• Which canon emphasizes representing the client's interests and disclosing positions clearly?
• Which of the following is an example of emblements?
• What is the name of the ethical guidelines used by the National Association of Realtors?
• Before a new license holder can engage in the practice of real estate, who must receive a copy of that sales agent's license?
• In a plat, who numbers the lots and blocks?
• If a tenant buys and installs new kitchen cabinets, who will own them upon expiration of the lease?
• By what time must licensees notify TREC of any change in address?
• Is it permissible for a real estate salesperson licensee to act as an appraiser?
• In Texas, when might a broker act as an intermediary?
• Regarding agency agreements in Texas, which statement is true?
• Which document lists all transfers of ownership and encumbrances affecting a property?
• The Information About Brokerage Services form should be presented to clients according to which ethical framework?
• In a condominium, who owns the common areas?
• Under fair housing regulation, an agent cannot discriminate based on which characteristic?
• Which TREC contract form applies to farm and ranch properties?
• According to the Rectangular Survey system, what is the acreage of the N 1/2 of the S/W 1/4 of the NE 1/4?
• Which agency term describes the arrangement where the broker represents the seller under a listing?
• Treating everyone fairly is a good way to:
• What are the primary duties of the Broker-Lawyer Committee?
• Which term describes property that remains with the land and passes with ownership?
• A buyer designates his sales agent to sign documents on his behalf. This arrangement is called:
• Exemptions for licensure and compliance under Sec. 1101.005 include which of the following EXCEPT?
• Which of the following is NOT listed as an exemption under Sec. 1101.005?
• Which statement about fixtures is true?
• Which term describes substituting a new contract for an old one while keeping the same parties?
• Fixity in real estate refers to which property characteristic?
• According to Article 12 of the NAR Code of Ethics, where is one place that NAR members must include the word 'REALTOR®'?
• Individual lots combined to form a block are called?
• The Fair Housing Act does not cover which of the following?
• The Code of Ethics that begins with Duties to Clients and Customers is published by which organization?
• Three conditions for compensation eligibility include:
• What serves as the basis of all real estate law in the United States?
• If demand for real estate falls, then:
• Which of the following is NOT one of the primary objectives of the Texas Real Estate License Act?
• The term describing no two land parcels are identical is:
• In a breach of contract scenario, which option would allow the wronged party to keep earnest money?
• Which canon or principle is associated with placing the client’s interests before the agent’s own interests?
• The ECOA addresses which type of discrimination?
• Can an agent act as an appraiser with their real estate salesperson license?
• Real property includes the land, improvements, and what?
• What distinguishes personal property from real property?
• The agency type most commonly created by a listing agreement is which?
• Which of the following is NOT a TREC-promulgated contract form?
• Which statement about rural homestead acreage is true?
• A prospective agent has up to one year after filing their license application to do what?
• According to the canon of fidelity, the primary duty of the real estate agent is to represent the interests of which party?
• In a trust arrangement, who administers the trust and controls the property?
• Mutual assent, legally competent parties, consideration, lawful objective, and adherence to the statute of frauds are:
• If an applicant fulfills all requirements for licensure but hasn't found a sponsoring broker yet, are they able to get licensed?
• The land description N 1/2 of the S/W 1/4 of the NE 1/4 uses which survey system?
• The standard that exceeds ethical laws is:
• Which best describes the purpose of a plat?
• The goal of the Community Reinvestment Act is to ensure credit availability in all communities regardless of wealth. Which option best completes this statement?
• Which of the following is NOT a category of the NAR Code of Ethics?
• Chattel refers to which type of property?
• Which of the following is TRUE about agency agreements?
• In a net listing, the broker's commission is based on the difference between listing price and sale price.
• Which of these will NEVER be included with homeowners insurance?
• Which term identifies an economic preference for a certain location?
• Which TREC form would be used for a new home contract when construction is incomplete?
• Which TREC form is used for the resale of a residential condominium?
• In what year was the National Association of Realtors' Code of Ethics first adopted?
• A limited partner is usually NOT involved in:
• Broker Anna has helped her client negotiate the purchase of a single family home. The week before close, the sellers back out of the sale without any explanation. The clients have all the options below EXCEPT:
• A limited partner is typically not involved in:
• Which statement best describes assignment?
• In contract law, what term refers to transferring contractual obligations from one party to another?
• Under the Taxpayer Relief Act of 1997, how often can homeowners take the capital gains exemption?
• Which professional is primarily responsible for establishing the plat's dimensions?
• If a couple owns property as community property and one spouse dies testate and the spouse who died had children outside of this marriage, how will the community property be distributed?
• Which is NOT a required element of a valid contract?
• A condensed history of title that summarizes transfers of ownership and encumbrances is known as?
• License holders have how many days to request a hearing after receiving a penalization notification?
• Which article of the NAR Code of Ethics addresses respecting existing agreements?
• Which scenario best illustrates real estate fraud by an agent?
• Open listings allow which of the following?
• A dining room table is generally considered which type of property?
• Under the ECOA, it is illegal for lenders to discriminate on the basis of:
• What provides the BEST definition for addenda?
• What should agents use as a basis for advising a prospect?
• Homestead rights do not offer protections from which of the following?
• What is a contour map used for?
• An agent has an agency relationship with their customers.
• Which statement about Chapter 1101 and 1102 of the Texas Occupations Code is correct?
• In contracts, which option BEST defines assignment?
• Who does a listing agent usually represent?
• Which of these is NOT a function of a special agent?
• Novation differs from assignment in that it replaces one contract with another between the same parties. Which statement describes this difference?
• Which of these is NOT a physical characteristic of land?
• Who determines the topics and hours of continuing education for license renewal?
• Surface, Subsurface, and Air Rights Are All Parts Of:
• What is a plat and who uses it most often?
• After a lease expires in a unit where the landlord made modifications for the tenant's disability, what may the landlord require?
• Sales agents may receive commissions from:
• An acre equals how many square feet?
• Which agency is primarily responsible for protecting and expanding affordable housing in Texas?
• Which land description is used for elevated areas such as in a condo?
• Which of the following would most directly influence a property's value due to its location-based desirability?
• Within what larger law can you find TRELA?
• The penalty amount per violation or per day that may be levied by the Texas Real Estate Commission is?
• If the seller has accepted the prospective buyer's offer but has not informed the buyer of acceptance yet, can the buyer revoke their offer?
• Individual lots combined to make a block are called?
• Which of these is a definition for general agency?
• In Texas, mandatory membership to an HOA must be disclosed.
• A plat is used in which method of land description?
• Which of the following is not a protected class under the Fair Housing Act?
• Fixity refers to the fact that:
• In a general agency relationship, which party bears responsibility for the agent's actions?
• The statute of frauds requires that real estate contracts be in writing to be:
• Which canon states to treat all parties honestly and fairly, and to represent the client's interests clearly?
• Which of these requires a higher standard than ethical laws?
• Which statement best describes fixtures in real estate?
• Who holds title and manages the property in a trust?
• Which of these is a characteristic of land?
• A newly installed built-in bookshelf is most likely considered a:
• In a condominium, owners hold title to what?
• Which type of legal land description uses natural landmarks and measurement directions to describe a property's boundaries?
• The Fair Housing Act does not cover:
• Which term describes the policy aimed at discouraging lending in certain neighborhoods, contributing to disinvestment?
• A dining room table is NOT an example of which of the following?
• A legal description of land can be acquired by:
• When a broker signs a listing agreement with a seller, what type of agency is most commonly created?
• Which of the following is an example of co-ownership?
• Addenda are attached to a contract to provide which of the following?
• Which of the following is an example of an agent committing fraud?
• The Fair Housing Act includes protected classes of?
• Why can't brokers draft their own contracts for transfers of real property?
• A married couple buys a home for $130,000 in 2001. In 2017, they sell it for $290,000. How much capital gains tax will they pay on the gain?
• Which option best defines assignment in contract law?
• Texas homestead laws would protect a primary residence from being seized and used as collateral by which type of creditor?
• In Texas, mandatory HOA membership must be disclosed.
• Which organization administers penalties for real estate license violations?
• Which article of the Code of Ethics requires that a NAR member include the word REALTOR® in advertisements?
• Which article requires that REALTOR® be included in advertisements?
• Emblements belong to the party who cultivated them, typically the
• Which is not an obligation of a real estate agent as a real estate brokerage practitioner?
• According to The Canons of Professional Ethics, which form must be displayed in a prominent location in each place of business the broker or inspector maintains?
• A landlocked parcel after surrounding property is sold; which scenario is MOST likely?
• Real property refers to what?
• Which statement describes the rectangular survey system?
• Which statement correctly describes land as a real estate asset?
• The difference between fraud and misrepresentation is mainly in:
• An owner lives in a single family dwelling but HOA owns and maintains the grounds and shared facilities. What does the owner live in?
• Which statement about fixtures is correct?
• Which term describes the legal remedy that grants access to landlocked property when there is no other legal access?
• Net listings and open listings are the same thing.
• In general, what is the purpose of the Texas Department of Housing and Community Affairs?
• Which Texas real estate bodies are composed of nine members and thirteen members respectively?
• How many TREC promulgated contract forms are there?
• What is the term for a rejection of an offer to buy or sell made with a simultaneous substitute new offer?
• What organization determines a Texas real estate license applicant's competency?
• What is required of lease contracts with a lease period of one year or more that is not required for leases of less than a year?
• A significant difference between Texas brokers licensed before and after October 31, 1991 is that:
• TRELA is within which broader code of Texas law?