Texas Real Estate Salesperson Exam Practice Questions with Complete Solutions

Texas Real Estate Salesperson Exam Practice Questions with Complete Solutions The fact that an individual must go to the land describes which of the characteristics of land? IMMOBILITY John and Mary are co-owners of a property. John has 60% interest in the property and Mary has a 40% interest. What type of freehold estate do they have? TENANCY IN COMMON A property is surveyed to determine a legal description. The surveyor works from a point of beginning, and measures terminal points and angles. What method of land description is he using? METES AND BOUNDS John leased space in a building and installed bookcases and ceiling fans in that space. His lease will soon expire. What will happen to the bookcases and fans? BECAUSE THEY HAVE BEEN INSTALLED, THE BOOKCASES AND FANS ARE FIXTURES AND HAVE BECOME PART OF THE PROPERTY. HE MUST LEAVE THEM BEHIND. Which of the following is an example of an involuntary, statutory specific lien? AD VALOREM TAX LIEN A buyers agent has helped her buyers find a property. The sellers have installed a fountain in the courtyard and the buyers have stressed to their agent that they want the fountain to be included in their purchase. What should the buyers agent do to ensure that her clients get the fountain? THE AGENT CAN INCLUDE WORDING IN THE BUYERS OFFER THAT INDICATES THAT THE FOUNTAIN IS INCLUDED IN THE SALE. All of the following are fixtures except: A GARDEN BENCH Mary and John are married with grown children. Both are intestate. If John dies and Mary becomes the owner of their home, what type of ownership did they have? TENANCY BY THE ENTIRETY A one half acre parcel of land in Manhattan, NY is worth considerably more that a one half acre parcel in White Plains, NY. This is an example of: SCARCITY What is the difference between and easement and a lien? AN EASEMENT IS A RIGHT IN LAND AND A LIEN IS NOT. A seller shows his property with ceiling fans. After closing when the buyer enters the house the ceiling fans have been removed and the wires are hanging from the ceiling. Which statement best describes this situation; THE SELLER CANNOT TAKE THE FANS BECAUSE BECAUSE THEY ARE FIXTURES. A married couple purchases property and takes title as Tenants by the Entirety. All of the following are true except: WHEN ONE SPOUSE DIES THEIR SHARE WILL PASS TO THEIR HEIRS INCLUDING BUT NOT LIMITED TO THE SURVIVING SPOUSE. The local government needs your land to build a new high school. They have the right to take your land for the public good. This is called: THE RIGHT OF EMINENT DOMAN You have recently purchased property in an area regulated by zoning. It has come to your attention that you have a zoning violation on the property. What should you do? REQUEST A VARIANCE FROM THE ZONING BOARD. One of the property owners in a subdivision is violating the deed restrictions. What can the other property owners do to get him to comply? SEEK AN INJUNCTION FROM THE COURTS Your property borders a non-navigable waterway and you have riparian rights. You have built a 10 foot pier at the water's edge. How do measure your property? TO THE MIDDLE OF THE WATERWAY Mary, a single woman, has no children. She owns real property and dies intestate. What happens to her real property? THE COURT WILL APPOINT AN ADMINISTRATOR AND IT WILL BE DISTRIBUTED TO HER HEIRS BY THE LAW OF DESCENT. Which of the following is the best example of a buffer zone? GARDEN APARTMENTS BETWEEN SINGLE FAMILY HOMES AND RETAIL SHOPS All of the following terms refer to water rights except: PRIOR APPROPRIATION What is the main difference between Zoning and Master Planning? ZONING LAWS ARE IMPLEMENTATION AND MASTER PLANNING IS A PROCESS. A property owner has a gas station on his land. The zoning committee changes the zoning to R-1. What must the property owner do? NOTHING-HIS PROPERTY IS AUTOMATICALLY CONSIDERED A NON-CONFORMING USE. A property owner receives a notice that his land is in an improvement district. What does this mean? HE WILL RECEIVE AN ADDITIONAL TAX BILL A property owner has installed a chain link fence on his property. He has received an official notice requiring the removal of this type of fence.This fence is most likely a violation of: DEED RESTRICTIONS OR DEED COVENANTS A single property is regulated by building codes, zoning and deed restrictions. The rules are in conflict with one another. Which must the property owner obey? THE PROPERTY OWNERS MUST OBEY WHICHEVER RULES ARE THE STRICTEST OR MOST LIMITING. M.A.I. refers to which professional group? REAL ESTATE APPRAISERS A builder is using inferior siding and paint in an effort to construct affordable housing. This would be an example of: FUNCTIONAL OBSOLESCENSE An appraiser has been asked to determine the market value of a home significantly older than all the other homes in the neighborhood. What approach should he use? COST APPROACH USING REPLACEMENT COST A builder is very successful and active in a new subdivision. Homes in the subdivision are selling well, and the builder is making a good profit on the sales. Two new builders arrive and begin to sell in the same subdivision. All experience a lower level of profit. This demonstrates which principle of appraisal? THE PRINCIPLE OF COMPETITION When measuring the gross area the appraiser measures the: UNDER ROOF, INCLUDING UNFINISHED SPACES Which of the following is the best definition of market value? MOST PROBABLE PRICE In preparing an appraisal, which of the following would have the least impact on the appraisers estimate of value? PHYSICAL DETERIORATION An appraiser has been asked to determine the value of an old house in an up and coming neighborhood. What method would he be most likely to use to provide the most accurate and reliable result? MARKET DATA APPROACH What is the least important factor for licensee preparing a CMA? THE INFORMATION FROM EXPIRED LISTINGS OF UNSOLD PROPERTY IN THE AREA. What does the term "modular" refer to? PREFABRICATED HOUSING An appraiser is using the Market Data Approach to determine the value of a residential property. All of the following are true except: HIS COMPARABLES SHOULD NOT BE MORE THAN ONE YEAR OLD An appraiser has been hired to appraise a commercial office building that is fully leased. What approach to appraisal will he have to use to determine his opinions of value? INCOME APPROACH A clause allowing a lender to move to or take a lower lien position is called: A SUBORDINATION CLAUSE A veteran has received a certificate of eligibility for $40,000. He signed a contract to purchase a home for $155,000. The CRV on the property is $153,000. The bank wants a 75/25 ratio. How much cash does the buyer need to purchase the property? $2,000 Which of the following actions on the part of the Federal Reserve would tighten the money supply? AN INCREASE IN THE RESERVE REQUIREMENT All of the following pledge property as security except: NOTE Which of the following instruments is the promise to repay a debt? NOTE What is the advantage to the borrower of a VA loan? THE GUARANTEE ON THE VA LOAN IS FREE Regulation Z regulates all of the following except: NON REAL ESTATE LOANS GREATER THAN $25,000 John has a loan with equal regular payments of principal and interest. Long before the debt is satisfied, the balance is due in a payment substantially larger than all the others. This is best described as a: PARTIAL AMORTIZED LOAN For what group of buyers would the ARM be the least desirable? THOSE ON A FIXED INCOME Where can you expect to find PMI? ON A HIGH LTV CONVENTIONAL LOAN Who could be considered an intermediary between the borrower and the lender? MORTGAGE BROKER What is a point? 1% OF THE LOAN AMOUNT A broker owes customers: HONESTY AND FAIRNESS A broker has a listing on a property. The seller has accepted an offer from the buyer, but the transaction fails to close. Under which of the following conditions would the broker be eligible for a commission? THE SELLER HAS REFUSED TO CLEAR UP A CLOUD ON THE TITLE AND THE PROPERTY CAN NOT BE TRANSFERRED TO A BUYER. At a recent social gathering several real estate brokers from the neighborhood were overheard discussing commission rates and attempting to come to an agreement on a way to communicate their rates to one another. What is true about this conversation and any resulting action on their part? THE BROKERS ARE IN VIOLATION OF THE SHERMAN ANTI-TRUST ACT What are an agents duties to his principal? CARE, OBEDIENCE, LOYALTY, DISCLOSURE, ACCOUNTING AND CONFIDENTIALITY An agent has acted without authority to do so. His principal has found out about the actions and accepted them. What kind of agency does this describe? AGENCY BY RATIFICATION Broker B has signed a Buyer Representation Agreement with his clients. As a Buyer's agent he must disclose all of the following except: HIS BUYERS ABILITY TO MAKE A HIGHER OFFER A broker has written permission to represent both the seller and the buyer as a dual agent. Under these circumstances, which of the following duties of an agent would be the easiest for him to fulfill? ACCOUNTING A property at 123 Main Street has been listed by Mary, a sales licensee at ABC Realty for several weeks. Last week, Mary died. What effect will Mary's death have on the listing agreement? NOTHING Which of the following is not a violation of the Sherman Anti-Trust Law? A BROKER SETTING A FIXED COMMISSION RATE THAT HE WILL CHARGE TO ALL OF HIS CLIENTS. Which of the following is not a duty of an agent? TRUST A broker has listed a seller's property. The seller travels extensively and would like the broker to have the authority to accept a full price offer if he receives one. The seller's lawyer prepares a limited power of attorney authorizing the broker to accept any offer for at least list price. Once the broker has the authority to accept a full price or better offer for the seller, what is his agency role with the seller? HE IS A GENERAL AGENT A signed employment agreement is necessary to: SUE FOR COMMISSION All of the following must be disclosed when listing a property except: DEATH ON THE PROPERTY DUE TO NATURAL CAUSES When participating in interstate land sales a broker must provide the buyer with: A property report Which of the following deaths on a property should never be disclosed? DEATH DUE TO HIV/AIDS What is the purpose of an Environmental Impact Statement? TO DETERMINE THE EFFECT OF A PROPOSED PROJECT ON THE COMMUNITY A commercial property is sold for cash without inspections. After closing the buyer discovers environmental problems on the property. Who would be liable for the cleanup? THE BUYER, THE SELLER, THE BROKER AND ALL IN THE CHAIN OF TITLE WHO CONTRIBUTED TO THE PROBLEMS. All of the following are hazardous substances that a licensee should be aware of except: ACRYLIC PAINT Which of the following is the best example of puffing? I THINK THIS IS THE BEST FLOOR PLAN AVAILABLE FROM THIS BUILDER. A buyers agent has helped a buyer find a home. The buyer has expressed concern about the possible presence of radon. What should the buyers agent recommend to the buyer in this case? RECOMMEND AN INSPECTION FOR HAZARDOUS MATERIALS A chemical manufacturing company purchases a plant. After closing they discover that the previous owners had spilled hazardous materials on the land. According to CERCLA, who is liable for the cost of the cleanup? BOTH THE NEW AND THE PREVIOUS OWNERS. A property has lead paint in the interior and on the exterior. Which of the following statements is true? THE SELLER HAS NOT DUTY TO REMEDIATE LEAD, SIMPLY TO DISCLOSE IT. Who is responsible for providing a lead paint disclosure? THE SELLER Which of following is an example of puffing? This house has the most beautiful decor of all my current listings.