Texas State Exam Questions and Answers (Certified Solutions)

Texas State Exam Questions and Answers (Certified Solutions) By what date must the current year's real estate taxes be paid in order to avoid a penalty and interest on the taxes? By January 31st of the next year Arthur was a Texas licensed Real Estate Sales agent for a long time. He then chose to become inactive and TREC has been holding his license in inactive status. He now wants to activate the license. What does he need to do? Apply through a broker, pay $200 and take an 18-hour continuing education course Prior to issuance of an inspector's license, a newly approved inspector must remit what amount to the Real Estate Inspection Recovery Fund? $10 A broker has a verbal listing agreement with a seller. The seller has agreed to sign a written listing agreement but has not done so yet. What is true? The brokers' status at this time is that of a volunteer Written permission is required to place a sign on the property. A verbal real estate agreement is not enforceable against the client. A promise to sign is not a signature. The agreement must be signed to be enforceable. When is it NOT mandatory for the seller to provide a copy of the "Seller's Disclosure of Property Condition" to prospective buyers? When the property is a commercial property -- it is required in a FSBO When a sponsoring broker is unaware that a salesperson is violating the Texas real estate ode through activities such as blockbusting, discrimination, and commingling funds, which of the following is true of the sponsoring broker's responsibility? If the sponsoring broker is deemed to be completely unaware of the salesperson's illegal activities, the broker will be absolved of responsibility. Which of the following licensees is subject to the provisions of the Texas Real Estate License Act? One whose job entails recruiting qualified renters and buyers for real estate Broker Joe has a listing contract and a buyer's representation agreement, and so is acting as an intermediary in a transaction. The buyer tells Joes that if he is successful in purchasing the property, he plans to buy all the surrounding property too. What should Joe tell the seller? Nothing, as this is confidential information from the buyer. Patty rents a storefront in downtown Arlington for her day spa, Boundless Beauty. She pays $1,500 a month in rent, plus a portion of the landlord's taxes, maintenance, and insurance (which fluctuates). Which type of lease does Patty have? Net lease Patty has a triple net lease because she is paying for a portion of all three of the landlords operating costs (taxes, maintenance, and insurance) on a regular basis -- in addition to her monthly rent. A net lease is one that requires a tenant to contribute to some of the landlord's operating costs. Both types of leases are favorable for the landlord because they allow rising costs to be passed along to tenants. Net leases an include caps on costs. A gross lease, in contrast is most similar to the typical residential lease that stipulates a fixed monthly rent regardless of the landlord's fluctuating operating costs. A gross lease with stops is a lease that allows the landlord to pass along some of the operating costs when they reach a certain level. Ash Mason owns a home with an expansive lawn in the Dallas suburbs and has decided to install an in ground pool for recreational and health purposes. She has chosen non-slip pavers for the perimeter of the pool (to reduce risk of falls and, thereby, her liability as property owner) and plans to add a deck at one end of the pool for lounging. Which of the following factors should she consider most carefully in deciding whether or not to erect a fence around part or all of her backyard? possibility that the pool might be an attractive nuisance an unfenced pool may be considered an attractive nuisance because it appeals to children but presents safety risks. Which of the following statements is true of a security deposit? a security deposit must be returned to the tenant within 30 days of the end of the lease unless the property has been damaged What is required for a broker to act as an intermediary? The broker must