TX 30 HOUR PRINCIPLES OF REAL ESTATE I EXAM
QUESTIONS UPDATED QUESTIONS AND
CORRECT ANSWERS
Question:
1. A portion of Lance's property can be used by the local utility company to maintain its power lines. What
is this an example of?
Answer:
Easement
Question:
2. Several brokerages in a certain area agree to stop running advertisements in a local publication. What
type of antitrust violation is this?
Answer:
Group boycotting
Question:
3. Homestead exemptions ______ property taxes for all homeowners by protecting a certain amount of a
Texas home's value from tax.
Answer:
Decrease
Question:
4. What is the length of the statute of limitations to file a fair housing complaint with HUD?
Answer:
One year
Question:
5. Lewis and Elliot started a real estate investment business together. After much discussion with their
attorney, they decided to incorporate, but in such a way that they are treated like a partnership and don't
have to pay corporate taxes. What form of business do they have?
Answer:
Subchapter S corporation
Question:
6. Which of the following is a true statement about the Texas seller's disclosure of property condition law?
Answer:
It requires sellers of single-family residential properties to disclose material facts to buyers.
Question:
7. Novation is...
Answer:
the substitution of one or more of the parties to a contract, creating a new contract.
,Question:
8. Rickie is a real estate licensee. She makes regular calls to customers and past clients to market her
services. If someone she calls asks to be put on her internal "do not call" list, what is Rickie required to do?
Answer:
Immediately place the customer's number on her internal do not call list, and avoid making unsolicited
calls from that point forward
Question:
9. When does a buyer's market occur?
Answer:
When supply is high and demand is low
Question:
10. Assignment of a contract is...
Answer:
the substitution of one party for another, with the original party still being obligated under the terms of the
contract.
Question:
11. Which type of antitrust violation occurs when real estate firms agree to divide their market so they
don't compete with one another?
Answer:
Market allocation
Question:
12. Which of the following is a possible outcome if a brokerage is found guilty of violating antitrust law?
Answer:
The brokerage may have to undergo court-ordered supervision for up to 10 years.
Question:
13. Net listings are...
Answer:
prohibited in several states, and there's no guarantee of commission
Question:
14. A new business moves into town, significantly increasing the availability of good paying jobs. How is
this likely to affect the town's housing market?
Answer:
Demand will go up, creating a seller's market.
Question:
15. Which ownership type is defined by four unities: time, title, interest, and possession?
Answer:
Joint tenancy
Question:
16. Which of these statements best represents what happens after a federal fair housing complaint is made?
,Answer:
A fair housing specialist will review the complaint.
Question:
17. Which of the following is a charge you would pay to your lender to arrange the financing for your
home loan?
Answer:
Origination fee
Question:
18. How many forms of ID are required when appearing for your Texas licensing exam?
Answer:
Two
Question:
19. CAN-SPAM Act of 2003
Answer:
Regulates the distribution and content of unsolicited commercial e-mail
Question:
20. Kelo v. City of New London was a court case that focused on the power of ____________.
Answer:
Eminent domain
Question:
21. Richard is interested in purchasing some rural land and included outbuildings. When reviewing the
legal description, he sees the name of a principal meridian. What type of legal description is this?
Answer:
Rectangular government survey
Question:
22. Anastasia wants to get her real estate license and bring together buyers and sellers. This means she will
be involved in which of the following?
Answer:
Brokerage
Question:
23. Gloria has an option to purchase the cottage she leases from her landlord. She can exercise the option
within the next two years. To gain that right, Gloria paid the landlord $5,000. This is called ______.
Answer:
An option fee
Question:
24. Which of the following expenses of home ownership may be a tax deduction?
Answer:
Prepaid interest
, Question:
25. blockbusting
Answer:
Any attempt to convince property owners that property values are set to decline or sales will be difficult
because of a specific protected group moving into the area
Question:
26. Where can an agent report an antitrust violation?
Answer:
Citizens Complaint Center of the DOJ's Antitrust Division
Question:
27. Texas broker Clark has grown sick of the assumed business name he's been using for the past few
years. What, if anything, must Clark do if he's decided to stop using it?
Answer:
He must notify the commission in writing by the 10th day after the date the broker stops using the assumed
business name.
Question:
28. Is a license holder required to disclose information surrounding a death at a property if that death were
a result of a defect on the property?
Answer:
Yes. If a death occurred because of a defect on the property, a licensee must disclose this information when
listing or selling that property.
Question:
29. What type of lien is defined as an involuntary lien placed on all of the property received by a deceased
person's heirs?
Answer:
Estate/inheritance lien
Question:
30. Carl is a sales agent who works under the supervision of a broker. Which of the following is true?
Answer:
Carl can be either an employee or an independent contractor.
Question:
31. Renae moved to the U.S. from Nigeria and became a citizen. Which act specifically provides Renae
with the right to buy, sell, convey, inherit, and possess property?
Answer:
Civil Rights Act of 1866
Question:
32. In which of these situations would a listing be most likely to terminate due to listing agreement
expiration?
Answer:
A market with high inventory and low demand
QUESTIONS UPDATED QUESTIONS AND
CORRECT ANSWERS
Question:
1. A portion of Lance's property can be used by the local utility company to maintain its power lines. What
is this an example of?
Answer:
Easement
Question:
2. Several brokerages in a certain area agree to stop running advertisements in a local publication. What
type of antitrust violation is this?
Answer:
Group boycotting
Question:
3. Homestead exemptions ______ property taxes for all homeowners by protecting a certain amount of a
Texas home's value from tax.
Answer:
Decrease
Question:
4. What is the length of the statute of limitations to file a fair housing complaint with HUD?
Answer:
One year
Question:
5. Lewis and Elliot started a real estate investment business together. After much discussion with their
attorney, they decided to incorporate, but in such a way that they are treated like a partnership and don't
have to pay corporate taxes. What form of business do they have?
Answer:
Subchapter S corporation
Question:
6. Which of the following is a true statement about the Texas seller's disclosure of property condition law?
Answer:
It requires sellers of single-family residential properties to disclose material facts to buyers.
Question:
7. Novation is...
Answer:
the substitution of one or more of the parties to a contract, creating a new contract.
,Question:
8. Rickie is a real estate licensee. She makes regular calls to customers and past clients to market her
services. If someone she calls asks to be put on her internal "do not call" list, what is Rickie required to do?
Answer:
Immediately place the customer's number on her internal do not call list, and avoid making unsolicited
calls from that point forward
Question:
9. When does a buyer's market occur?
Answer:
When supply is high and demand is low
Question:
10. Assignment of a contract is...
Answer:
the substitution of one party for another, with the original party still being obligated under the terms of the
contract.
Question:
11. Which type of antitrust violation occurs when real estate firms agree to divide their market so they
don't compete with one another?
Answer:
Market allocation
Question:
12. Which of the following is a possible outcome if a brokerage is found guilty of violating antitrust law?
Answer:
The brokerage may have to undergo court-ordered supervision for up to 10 years.
Question:
13. Net listings are...
Answer:
prohibited in several states, and there's no guarantee of commission
Question:
14. A new business moves into town, significantly increasing the availability of good paying jobs. How is
this likely to affect the town's housing market?
Answer:
Demand will go up, creating a seller's market.
Question:
15. Which ownership type is defined by four unities: time, title, interest, and possession?
Answer:
Joint tenancy
Question:
16. Which of these statements best represents what happens after a federal fair housing complaint is made?
,Answer:
A fair housing specialist will review the complaint.
Question:
17. Which of the following is a charge you would pay to your lender to arrange the financing for your
home loan?
Answer:
Origination fee
Question:
18. How many forms of ID are required when appearing for your Texas licensing exam?
Answer:
Two
Question:
19. CAN-SPAM Act of 2003
Answer:
Regulates the distribution and content of unsolicited commercial e-mail
Question:
20. Kelo v. City of New London was a court case that focused on the power of ____________.
Answer:
Eminent domain
Question:
21. Richard is interested in purchasing some rural land and included outbuildings. When reviewing the
legal description, he sees the name of a principal meridian. What type of legal description is this?
Answer:
Rectangular government survey
Question:
22. Anastasia wants to get her real estate license and bring together buyers and sellers. This means she will
be involved in which of the following?
Answer:
Brokerage
Question:
23. Gloria has an option to purchase the cottage she leases from her landlord. She can exercise the option
within the next two years. To gain that right, Gloria paid the landlord $5,000. This is called ______.
Answer:
An option fee
Question:
24. Which of the following expenses of home ownership may be a tax deduction?
Answer:
Prepaid interest
, Question:
25. blockbusting
Answer:
Any attempt to convince property owners that property values are set to decline or sales will be difficult
because of a specific protected group moving into the area
Question:
26. Where can an agent report an antitrust violation?
Answer:
Citizens Complaint Center of the DOJ's Antitrust Division
Question:
27. Texas broker Clark has grown sick of the assumed business name he's been using for the past few
years. What, if anything, must Clark do if he's decided to stop using it?
Answer:
He must notify the commission in writing by the 10th day after the date the broker stops using the assumed
business name.
Question:
28. Is a license holder required to disclose information surrounding a death at a property if that death were
a result of a defect on the property?
Answer:
Yes. If a death occurred because of a defect on the property, a licensee must disclose this information when
listing or selling that property.
Question:
29. What type of lien is defined as an involuntary lien placed on all of the property received by a deceased
person's heirs?
Answer:
Estate/inheritance lien
Question:
30. Carl is a sales agent who works under the supervision of a broker. Which of the following is true?
Answer:
Carl can be either an employee or an independent contractor.
Question:
31. Renae moved to the U.S. from Nigeria and became a citizen. Which act specifically provides Renae
with the right to buy, sell, convey, inherit, and possess property?
Answer:
Civil Rights Act of 1866
Question:
32. In which of these situations would a listing be most likely to terminate due to listing agreement
expiration?
Answer:
A market with high inventory and low demand
