TEXAS PRINCIPLES OF REAL ESTATE 1 FINAL LATEST 2023-2024 ACTUAL EXAM 220 QUESTIONS AND
CORRECT DETAILED ANSWERS
By law, which of the following people is required to have a real estate license? - (answer) Serena
helping her cousin sell her home for a percentage of the sale
The Texas Occupations Code houses: - (answer) the Texas Real Estate License Act (TRELA)
Industrial Real Estate does NOT include: - (answer) a triplex
What would be considered an embalmment? - (answer) and plants that are cultivated and harvested
Which of the following is NOT an ownership right? - (answer) Easements
-Ownership rights include surface rights, subsurface rights, water rights, and air rights
Real Property does NOT include: - (answer) vehicles on the property
What is the difference between land and real estate? - (answer) Land is a tract of earth plus the
resources above and below; real estate is land plus human-made improvements
Which of these best describes a CLUE report? - (answer) A report that identifies any insurance claims
made on a parcel of real estate in the past five years.
Homeowners insurance policies are usually paid - (answer) in advance
What is TRUE about capital gains in taxes? - (answer) They are taxes on the profit a person makes
when they sell their principal residence
What do Texas homestead rights do? - (answer) protect the home from creditors that do not have
specific or tax liens
, TEXAS PRINCIPLES OF REAL ESTATE 1 FINAL LATEST 2023-2024 ACTUAL EXAM 220 QUESTIONS AND
CORRECT DETAILED ANSWERS
Which of the below is true regarding condominiums and cooperatives? - (answer) A condo owner
owns a unit, and a co-op owner owns stock in a corporation
Which one of the following actions is NOT likely to be a violation of the Deceptive Trade Practices-
Consumer Protection Act? - (answer) providing a list of inspectors, plumbers, electricians, or other
professionals to assist your seller client
What is the definition of an unconscionable action? - (answer) to take advantage of the lack of
knowledge, ability, experience, or capacity of a person to a grossly unfair degree
Agent Owen entered into an agency relationship with Neave, who wants to sell her home. In this
scenario, Neave is the: - (answer) principal
Which of the following is a requirement in disclosing agency? - (answer) Agents must give the written
IABS notice at the first substantive discussion about a specific property
An elderly couple is going to rent their vacant basement for extra income. The couple does not want a
family with children. The couple asks their granddaughter, who is a real estate agent, to help them with
finding tenants.
Is this legal? Why or why not? - (answer) No, the couple is not allowed to discriminate against families
with children if they are helped by their granddaughter because she is a license holder.
Landlords are required to allow tenants to make modifications to their property in order to
accommodate their disability. Who is responsible for paying for these modifications? - (answer) The
tenant
The introduction to the National Association of REALTORS® Code of Ethics is called the: - (answer)
Preamble
TREC's Canons of Professional Ethics and Conduct are: - (answer) Rules of Conduct
CORRECT DETAILED ANSWERS
By law, which of the following people is required to have a real estate license? - (answer) Serena
helping her cousin sell her home for a percentage of the sale
The Texas Occupations Code houses: - (answer) the Texas Real Estate License Act (TRELA)
Industrial Real Estate does NOT include: - (answer) a triplex
What would be considered an embalmment? - (answer) and plants that are cultivated and harvested
Which of the following is NOT an ownership right? - (answer) Easements
-Ownership rights include surface rights, subsurface rights, water rights, and air rights
Real Property does NOT include: - (answer) vehicles on the property
What is the difference between land and real estate? - (answer) Land is a tract of earth plus the
resources above and below; real estate is land plus human-made improvements
Which of these best describes a CLUE report? - (answer) A report that identifies any insurance claims
made on a parcel of real estate in the past five years.
Homeowners insurance policies are usually paid - (answer) in advance
What is TRUE about capital gains in taxes? - (answer) They are taxes on the profit a person makes
when they sell their principal residence
What do Texas homestead rights do? - (answer) protect the home from creditors that do not have
specific or tax liens
, TEXAS PRINCIPLES OF REAL ESTATE 1 FINAL LATEST 2023-2024 ACTUAL EXAM 220 QUESTIONS AND
CORRECT DETAILED ANSWERS
Which of the below is true regarding condominiums and cooperatives? - (answer) A condo owner
owns a unit, and a co-op owner owns stock in a corporation
Which one of the following actions is NOT likely to be a violation of the Deceptive Trade Practices-
Consumer Protection Act? - (answer) providing a list of inspectors, plumbers, electricians, or other
professionals to assist your seller client
What is the definition of an unconscionable action? - (answer) to take advantage of the lack of
knowledge, ability, experience, or capacity of a person to a grossly unfair degree
Agent Owen entered into an agency relationship with Neave, who wants to sell her home. In this
scenario, Neave is the: - (answer) principal
Which of the following is a requirement in disclosing agency? - (answer) Agents must give the written
IABS notice at the first substantive discussion about a specific property
An elderly couple is going to rent their vacant basement for extra income. The couple does not want a
family with children. The couple asks their granddaughter, who is a real estate agent, to help them with
finding tenants.
Is this legal? Why or why not? - (answer) No, the couple is not allowed to discriminate against families
with children if they are helped by their granddaughter because she is a license holder.
Landlords are required to allow tenants to make modifications to their property in order to
accommodate their disability. Who is responsible for paying for these modifications? - (answer) The
tenant
The introduction to the National Association of REALTORS® Code of Ethics is called the: - (answer)
Preamble
TREC's Canons of Professional Ethics and Conduct are: - (answer) Rules of Conduct
