AYPO - Texas - Principles of Real Estate 1
AYPO - Texas - Principles of Real Estate 1
Exam Questions and Answers
Question 1
What is the name of the governing body for real estate in Texas?
A. Texas Real Estate Constitution (TREC)
B. Texas Real Estate Counselors (TREC)
C. Texas Real Estate Council (TREC)
D. Texas Real Estate Commission (TREC)
Correct Answer
D) Texas Real Estate Commission (TREC)
Question 2
TREC has the authority under TRELA to suspend or even revoke a broker's license if:
A) they conduct the unauthorized practice of negotiation.
B) they conduct the unlicensed practice of property management.
C) they conduct the unlicensed practice of property development.
D) they conduct the unlawful practice of Law.
Correct Answer
D) they conduct the unlawful practice of Law
Question 3
ESAC stands for:
A) Education Systems Assistance Corporation
B) Education Standards Advisory Committee
C) Employment Standards Advisory Committee
D) Employment Standards Advisory Committee
Correct Answer
B) Education Standards Advisory Committee
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, AYPO - Texas - Principles of Real Estate 1
Question 4
What refers to a location from an economic rather than a geographic standpoint?
A) Situs
B) Homogeneity
C) Immobility
D) Topography
Correct Answer
A) Situs
Question 5
Which amendment guarantees that a citizen will not be deprived of property without
due process of law?
A) 14th Amendment
B) 2nd Amendment.
C) 5th Amendment.
D) No amendment covers this eventuality.
Correct Answer
C) 5th Amendment.
Question 6
The CFPB is the:
A) Consumer Financial Protection Bureau
B) Customer Financial Protection Bureau
C) Consumer Fiscal Protection Bureau
D) Client Financial Protection Bureau
Correct Answer
A) Consumer Financial Protection Bureau
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, AYPO - Texas - Principles of Real Estate 1
Question 7
A professional organization or association is usually a not-for-profit organization that
seeks to:
A) find new revenue sources to grow the organization.
B) further a particular profession and the interests of individuals engaged in that
profession.
C) allow like-minded individuals to exclusively meet to discuss business issues with
each other.
D) hold educational seminars for the public to make them aware of the organization.
Correct Answer
B) further a particular profession and the interests of individuals engaged in that
profession.
Question 8
Which of these IS NOT a type of real property value?
A) Assessed value
B) Estimated sales value
C) Replacement value
D) Future estimated value
Correct Answer
D) Future estimated value
Question 9
A contraction or generally slowing down of the economy is a:
A) Recession.
B) Expansion.
C) Depression.
D) Revival.
Correct Answer
A) Recession.
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, AYPO - Texas - Principles of Real Estate 1
Question 10
What is the primary purpose for real estate licensing laws?
A) To protect the general public during real estate transactions from dishonest or
incompetent brokers and sales agents.
B) To set out minimum standards and qualifications for licensing brokers and sales
agents.
C) To protect licensed brokers and sales agents from unfair or improper competition.
D) All of these answers are correct.
Correct Answer
D) All of these answers are correct.
Question 11
Per 1101.2051(b), information or material prepared or compiled by the commission in
connection with a complaint, investigation, or audit may be disclosed:
A) it may not be disclosed under any circumstances.
B) to the respondent of the complaint.
C) to a legal representative of the complainant.
D) to a citizen writing in a complaint against a licensee.
Correct Answer
B) to the respondent of the complaint.
Question 12
According to Sec. 1101.159, the commission must ensure that the public is able to
interact with the commission:
A) in the Texas Legislature.
B) in TREC meetings.
C) on the Internet.
D) in person.
Correct Answer
C) on the Internet.
Page 4 of 62
AYPO - Texas - Principles of Real Estate 1
Exam Questions and Answers
Question 1
What is the name of the governing body for real estate in Texas?
A. Texas Real Estate Constitution (TREC)
B. Texas Real Estate Counselors (TREC)
C. Texas Real Estate Council (TREC)
D. Texas Real Estate Commission (TREC)
Correct Answer
D) Texas Real Estate Commission (TREC)
Question 2
TREC has the authority under TRELA to suspend or even revoke a broker's license if:
A) they conduct the unauthorized practice of negotiation.
B) they conduct the unlicensed practice of property management.
C) they conduct the unlicensed practice of property development.
D) they conduct the unlawful practice of Law.
Correct Answer
D) they conduct the unlawful practice of Law
Question 3
ESAC stands for:
A) Education Systems Assistance Corporation
B) Education Standards Advisory Committee
C) Employment Standards Advisory Committee
D) Employment Standards Advisory Committee
Correct Answer
B) Education Standards Advisory Committee
Page 1 of 62
, AYPO - Texas - Principles of Real Estate 1
Question 4
What refers to a location from an economic rather than a geographic standpoint?
A) Situs
B) Homogeneity
C) Immobility
D) Topography
Correct Answer
A) Situs
Question 5
Which amendment guarantees that a citizen will not be deprived of property without
due process of law?
A) 14th Amendment
B) 2nd Amendment.
C) 5th Amendment.
D) No amendment covers this eventuality.
Correct Answer
C) 5th Amendment.
Question 6
The CFPB is the:
A) Consumer Financial Protection Bureau
B) Customer Financial Protection Bureau
C) Consumer Fiscal Protection Bureau
D) Client Financial Protection Bureau
Correct Answer
A) Consumer Financial Protection Bureau
Page 2 of 62
, AYPO - Texas - Principles of Real Estate 1
Question 7
A professional organization or association is usually a not-for-profit organization that
seeks to:
A) find new revenue sources to grow the organization.
B) further a particular profession and the interests of individuals engaged in that
profession.
C) allow like-minded individuals to exclusively meet to discuss business issues with
each other.
D) hold educational seminars for the public to make them aware of the organization.
Correct Answer
B) further a particular profession and the interests of individuals engaged in that
profession.
Question 8
Which of these IS NOT a type of real property value?
A) Assessed value
B) Estimated sales value
C) Replacement value
D) Future estimated value
Correct Answer
D) Future estimated value
Question 9
A contraction or generally slowing down of the economy is a:
A) Recession.
B) Expansion.
C) Depression.
D) Revival.
Correct Answer
A) Recession.
Page 3 of 62
, AYPO - Texas - Principles of Real Estate 1
Question 10
What is the primary purpose for real estate licensing laws?
A) To protect the general public during real estate transactions from dishonest or
incompetent brokers and sales agents.
B) To set out minimum standards and qualifications for licensing brokers and sales
agents.
C) To protect licensed brokers and sales agents from unfair or improper competition.
D) All of these answers are correct.
Correct Answer
D) All of these answers are correct.
Question 11
Per 1101.2051(b), information or material prepared or compiled by the commission in
connection with a complaint, investigation, or audit may be disclosed:
A) it may not be disclosed under any circumstances.
B) to the respondent of the complaint.
C) to a legal representative of the complainant.
D) to a citizen writing in a complaint against a licensee.
Correct Answer
B) to the respondent of the complaint.
Question 12
According to Sec. 1101.159, the commission must ensure that the public is able to
interact with the commission:
A) in the Texas Legislature.
B) in TREC meetings.
C) on the Internet.
D) in person.
Correct Answer
C) on the Internet.
Page 4 of 62
