PRINCIPLES 1 REAL ESTATE CHAMPION SCHOOLING EXAM WITH COMPLETE SOLUTIONS

PRINCIPLES 1 REAL ESTATE b b b




b CHAMPION SCHOOLING EXAM WITH b b b




b COMPLETE SOLUTIONS | 100% PASS b b b b




What are the 4 economic Characteristics of land - correct answer- 1,Scarcity, 2,
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Modification, 3,Fixity 4, Situs
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Scarcity - correct answer- Supply and demand, When there is shortage of
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something that and individual wants the price goes up.
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Situs - correct answer- The location of the property or land from an economic not
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geographic viewpoint. Preference people have based on location. Location
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Location Location....
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Ad Valorem Taxes - correct answer- Taxes on real properties (according to value)
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TRELA Texas Real Estate License Act - correct answer- The purpose is to
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bprotect the public against unscrupulous brokers.
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, TREC Texas Real Estate Commission - correct answer- Created in 1949 Can
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bassess administrative penalties of up to $5000 per day against offending licensed
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band unlicensed individuals
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Improvement - correct answer- Any man made addition to the land that is b B b B bB b B B
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bpermanent and is considered to become part of the land. Building, landscaping, b B B
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Fixture - correct answer- Personal property that has become attached to the land
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bin such a way as to become real property
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Severance - correct answer- Removing fixtures by detaching them from real
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bproperty or uninstalling them B
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(should be removed prior to listing)..or 'does not convey'
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Intention of the Parties - correct answer- When an item was installed .. most
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Method of Attachment - correct answer- How the item was attached to the
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property
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Adaptation to the property - correct answer- How the item fits the property
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Emblements - correct answer- Annual crops produced with labor B
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Even though attached to the land the crop is personal property. Tenant will still be
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allowed to harvest annual crop even if not in possession of the land
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Townhomes - correct answer- Sold as distinct living unit individual lot share B
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bcommon walls. Owner of the townhome owns the property beneath the structure.
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Homeowners Insurance - correct answer- A contract between the insurance b B b B B bB
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company and policyholder protection fire, wind, hail, theft, flood, vandalism, loss
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or damage to contents, and personal liability (Hazards such as flood or
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windstorms are additional)
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Factors that affect insurance premiums - correct answer- 1;Age and Condition 2;
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bThe home replacement cost 3; Location 4; Availability of local fire protection 5;
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bThe policy claims history 6; The policyholder credit score
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Agency - correct answer- An agency relationship exists when one person (the
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agent) acts for, or on-behalf of another person (the principal is known as the
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client). The principal is one who hires the agent and gives authority to the agent.
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This relationship is a fiduciary (trust) relationship
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Universal Agency - correct answer- Has full authority to conduct business on
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behalf of the client. (power of Attorney
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General Agency - correct answer- Broker has agents that work for them. A
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general agent may bind the principal, meaning that the agent may sign certain
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