TREC Final Exam Chapter 1 Questions &
Answers
What do littoral rights govern? - ANSWERSlakefront or oceanfront property rights
Karen bought a house. What is the best way she can protect her title from ownership claims? -
ANSWERSGet title insurance.
Homeowners can take advantage of the capital gains exemption under the Taxpayer Relief Act
of 1997 every - ANSWERSTwo Years
In Texas, mandatory membership to an HOA must be: - ANSWERSdisclosed
Which of these is a unilateral contract?
A car dealership offers a $1,000 bonus to any salesperson who can sell 10 vehicles in a month.
Lesley and Andrew sign a contract for the sale of Lesley's home to Andrew.
Sarah and Jeff sign a contract for the sale of Sarah's car to Jeff.
Amari gets in Loren's taxi. Loren drives her to her destination, and Amari pays Loren the stated
rate. - ANSWERSA car dealership offers a $1,000 bonus to any salesperson who can sell 10
vehicles in a month.
Which of the following provides the BEST definition for addenda?
, an agreement in which both parties give consideration and promise to perform the actions
specified in a contract
a contract that creates an agency relationship between a buyer and an agent
documents containing additional terms, information, or obligations that are attached to a
contract
a contract that is not completely executed or performed. - ANSWERSdocuments containing
additional terms, information, or obligations that are attached to a contract
Before a new license holder can engage in the practice of real estate, who must receive a copy
of that sales agent's license? - ANSWERSthe broker that is sponsoring the sales agent
Who manages and holds the legal title to a property on behalf of the beneficiary in a trust? -
ANSWERSTrustee
What are the primary duties of the Broker-Lawyer Committee? - ANSWERSto draft and revise
contract forms for the approval and adoption by TREC
Who can a salesperson accept payment from? - ANSWERSTheir sponsoring broker only.
What is the standard capital gains exclusion for someone selling a primary residence? -
ANSWERS$500,000 for joint filers, $250,000 for single filers
Which of these is a method of disclosing agency? - ANSWERSgiving a party the IABS notice
Answers
What do littoral rights govern? - ANSWERSlakefront or oceanfront property rights
Karen bought a house. What is the best way she can protect her title from ownership claims? -
ANSWERSGet title insurance.
Homeowners can take advantage of the capital gains exemption under the Taxpayer Relief Act
of 1997 every - ANSWERSTwo Years
In Texas, mandatory membership to an HOA must be: - ANSWERSdisclosed
Which of these is a unilateral contract?
A car dealership offers a $1,000 bonus to any salesperson who can sell 10 vehicles in a month.
Lesley and Andrew sign a contract for the sale of Lesley's home to Andrew.
Sarah and Jeff sign a contract for the sale of Sarah's car to Jeff.
Amari gets in Loren's taxi. Loren drives her to her destination, and Amari pays Loren the stated
rate. - ANSWERSA car dealership offers a $1,000 bonus to any salesperson who can sell 10
vehicles in a month.
Which of the following provides the BEST definition for addenda?
, an agreement in which both parties give consideration and promise to perform the actions
specified in a contract
a contract that creates an agency relationship between a buyer and an agent
documents containing additional terms, information, or obligations that are attached to a
contract
a contract that is not completely executed or performed. - ANSWERSdocuments containing
additional terms, information, or obligations that are attached to a contract
Before a new license holder can engage in the practice of real estate, who must receive a copy
of that sales agent's license? - ANSWERSthe broker that is sponsoring the sales agent
Who manages and holds the legal title to a property on behalf of the beneficiary in a trust? -
ANSWERSTrustee
What are the primary duties of the Broker-Lawyer Committee? - ANSWERSto draft and revise
contract forms for the approval and adoption by TREC
Who can a salesperson accept payment from? - ANSWERSTheir sponsoring broker only.
What is the standard capital gains exclusion for someone selling a primary residence? -
ANSWERS$500,000 for joint filers, $250,000 for single filers
Which of these is a method of disclosing agency? - ANSWERSgiving a party the IABS notice
