Principles of Real Estate Exam Questions with Complete Answers Latest Update (Already Passed)
What are ownership rights to all that is found beneath the surface of the tract of land owned, extending
downward to the center of the earth? - Answers Subsurface rights
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? - Answers They must be in writing
What does the ADA do? - Answers Prohibits discrimination against people with disabilities
Which of these groups of people would not need a real estate license to perform real estate actions
under Sec. 1101.005 of TRELA? - Answers an onsite apartment manger and licensed lawyer in Texas
An agreement that gives one broker and the owner the right to sell the property is called a(n): - Answers
exclusive agency listing
What is the correct term or phrase for encouraging the panic selling of homes at below their market
value? - Answers Blockbusting
What is the primary tenet of the NAR Code of Ethics? - Answers Real estate professionals must treat all
parties transactions fairly and honest.
What will a CLUE report tell you about a parcel of real estate? - Answers Whether there has been an
insurance claim on it in the last five years.
All partners assume unlimited personal liability in what type of business organization? - Answers General
partnership
Which of these statements about the Equal Credit Opportunity Act is TRUE? - Answers A lender can ask
whether you are married or unmarried under certain conditions.
After receiving a penalization notification, how many days does a licensee have to request a hearing? -
Answers 20
What is unique about an exclusive right-to-sell listing agreement? - Answers The broker gets
compensation regardless of who sells the property.
The Golden Rule says to treat others like: - Answers you would want to be treated
Which of the following best defines the rectangular survey system? - Answers A system of legal land
description that uses the globe lines of longitude and latitude to create a surveyed grid of meridians.
Requirements to become a Texas real estate license holder include: - Answers taking required education
classes, passing the exam, being of legal age.
Which of these would create constructive notice that you owned a property? - Answers recording the
deed with the county.
, Which of the TREC canons prevents license holders from making disclosures about race, color, religion,
sex, national origin, ancestry, familial status, or disability? - Answers discriminatory practices
The difference between fraud and misrepresentation is mainly in: - Answers intent
What does a quitclaim deed do? - Answers terminates a person's claim to a property.
What is the name of the piece of legislation that created the capital gains tax exclusion for
homeowners? - Answers taxpayer relief act of 1997
What is chattel? - Answers personal property
The act of severance is the most common way to convert: - Answers real property into personal
property
Which of these terms refers to the desirability of a location? - Answers situs
The act of converting real property into personal property is called: - Answers Severance
The Fair Housing Act includes the protected classes of: - Answers race, color, religion, national origin,
sex, disability , family status.
What is the term for a rejection of an offer to buy or sell made with the simultaneous substitution of a
new offer? - Answers counteroffer
What kind of ownership is ownership by a single person or entity? - Answers ownership in severalty
A listing agreement is an agency agreement between whom? - Answers A seller and a broker
Net listings and open listings are the same thing. - Answers FALSE - An open listing allows multiple real
estate brokers (and the owners themselves) the right to sell a property. A net listing, on the other hand,
dictates the broker's commission based on the difference between the listing price and sales price.
Homeowners can take advantage of the capital gains exemption under the Taxpayer Relief Act of 1997
every: - Answers 2 years
In which type of residential property does a resident hold no actual ownership in the property, but
instead holds a proprietary lease as a stockholder? - Answers co-op
Which of these should always be disclosed? - Answers material defects
A limited partner is usually NOT involved in: - Answers The day to day activities of the business
Which of these is the increase in the value of an asset? - Answers capital gain
A listing agreement creates a(n): - Answers agency relationship
Who determines the amount a cooperating broker will be compensated? - Answers the listing broker
What are ownership rights to all that is found beneath the surface of the tract of land owned, extending
downward to the center of the earth? - Answers Subsurface rights
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? - Answers They must be in writing
What does the ADA do? - Answers Prohibits discrimination against people with disabilities
Which of these groups of people would not need a real estate license to perform real estate actions
under Sec. 1101.005 of TRELA? - Answers an onsite apartment manger and licensed lawyer in Texas
An agreement that gives one broker and the owner the right to sell the property is called a(n): - Answers
exclusive agency listing
What is the correct term or phrase for encouraging the panic selling of homes at below their market
value? - Answers Blockbusting
What is the primary tenet of the NAR Code of Ethics? - Answers Real estate professionals must treat all
parties transactions fairly and honest.
What will a CLUE report tell you about a parcel of real estate? - Answers Whether there has been an
insurance claim on it in the last five years.
All partners assume unlimited personal liability in what type of business organization? - Answers General
partnership
Which of these statements about the Equal Credit Opportunity Act is TRUE? - Answers A lender can ask
whether you are married or unmarried under certain conditions.
After receiving a penalization notification, how many days does a licensee have to request a hearing? -
Answers 20
What is unique about an exclusive right-to-sell listing agreement? - Answers The broker gets
compensation regardless of who sells the property.
The Golden Rule says to treat others like: - Answers you would want to be treated
Which of the following best defines the rectangular survey system? - Answers A system of legal land
description that uses the globe lines of longitude and latitude to create a surveyed grid of meridians.
Requirements to become a Texas real estate license holder include: - Answers taking required education
classes, passing the exam, being of legal age.
Which of these would create constructive notice that you owned a property? - Answers recording the
deed with the county.
, Which of the TREC canons prevents license holders from making disclosures about race, color, religion,
sex, national origin, ancestry, familial status, or disability? - Answers discriminatory practices
The difference between fraud and misrepresentation is mainly in: - Answers intent
What does a quitclaim deed do? - Answers terminates a person's claim to a property.
What is the name of the piece of legislation that created the capital gains tax exclusion for
homeowners? - Answers taxpayer relief act of 1997
What is chattel? - Answers personal property
The act of severance is the most common way to convert: - Answers real property into personal
property
Which of these terms refers to the desirability of a location? - Answers situs
The act of converting real property into personal property is called: - Answers Severance
The Fair Housing Act includes the protected classes of: - Answers race, color, religion, national origin,
sex, disability , family status.
What is the term for a rejection of an offer to buy or sell made with the simultaneous substitution of a
new offer? - Answers counteroffer
What kind of ownership is ownership by a single person or entity? - Answers ownership in severalty
A listing agreement is an agency agreement between whom? - Answers A seller and a broker
Net listings and open listings are the same thing. - Answers FALSE - An open listing allows multiple real
estate brokers (and the owners themselves) the right to sell a property. A net listing, on the other hand,
dictates the broker's commission based on the difference between the listing price and sales price.
Homeowners can take advantage of the capital gains exemption under the Taxpayer Relief Act of 1997
every: - Answers 2 years
In which type of residential property does a resident hold no actual ownership in the property, but
instead holds a proprietary lease as a stockholder? - Answers co-op
Which of these should always be disclosed? - Answers material defects
A limited partner is usually NOT involved in: - Answers The day to day activities of the business
Which of these is the increase in the value of an asset? - Answers capital gain
A listing agreement creates a(n): - Answers agency relationship
Who determines the amount a cooperating broker will be compensated? - Answers the listing broker
