Texas Real Estate Principles 1 Exam – With Correct and Verified Answers

Texas Real Estate Principles 1 Exam – With Correct and Verified Answers Courses for the renewal of an active real estate broker or sales agent license are called - Correct answer continuing education (CE)" "What is the maximum amount that the Commission will pay from the real estate recovery trust account for claims against any one license holder, until the account has been repaid in full by the license holder? - Correct answer $100,000" "Which is owned by the tenant? - Correct answer a trade fixture" "Which of the following terms refers not only to the surface of the earth but also below to the center of the earth, above to infinity, and natural things permanently attached but does NOT refer to artificial things permanently attached? - Correct answer land" "If the court learns that the seller placed a sign that said "Not Included" on the stove every time a buyer looked at the property, the court will consider which of the following in determining whether the stove is a fixture, absent a written agreement? - Correct answer Intention of the parties" "What type of estate is complete ownership and exists for an unlimited time? - Correct answer fee simple" "If a condition of ownership is violated, title to the subject property automatically reverts to the original owner in - Correct answer a determinable fee estate" "An urban homestead is limited to a lot or lots NOT to exceed how many acres? - Correct answer 10" "The method used to describe real estate by distance, direction, and boundaries is - Correct answer metes-and-bounds method" "Which equals one square mile or 640 acres? - Correct answer section" "Under the federal Fair Housing Act, real estate organizations, such as multiple listing services, may NOT do which because someone is in a protected group? - Correct answer refuse membership or put conditions on participation" "Which aspect of the Canons of Professional Ethics and Conduct requires the broker or sales agent to be informed on market conditions and national, state, and local developments affecting the real estate business? - Correct answer competency." "A complaint of discrimination brought under the Texas Fair Housing Act can be filed with the U.S. Department of Housing and Urban Development or with - Correct answer the Texas Workforce Commission Civil Rights Division" "An aggrieved person who believes illegal discrimination has occurred may file a complaint within what time frame following the alleged discriminatory act? - Correct answer ONE YEAR" "Appurtenant easement rights transfer with - Correct answer the dominant tenement" "An owner sells part of his land that has no access to a public road but does have access over his remaining land. This creates an easement by - Correct answer necessity" "When there are two or more liens on a property, the order in which the liens will be satisfied when the property is sold will be determined by - Correct answer the priority of the liens" "Which of the following may be a natural object, such as a tree or a boulder, or an artificial object, such as a steel rod or a stake driven into the ground? - Correct answer Monument" "It is unlawful for a person to act in the capacity of or claim to be a real estate broker without first - Correct answer obtaining a license from the Texas Real Estate Commission" "A real estate broker's license is NOT required of persons who - Correct answer advertise and lease their own properties" "The Texas Real Estate Commission is composed of - Correct answer nine members, six of whom are brokers and three of whom are lay members, each appointed by the governor with senate approval" "Before people can act in the capacity of or represent themselves as real estate brokers, they must first - Correct answer obtain a license from the Texas Real Estate Commission" "A license holder must use the earnest money contract forms promulgated by the Commission unless - Correct answer an attorney prepares the forms and the property owner requires their use" "Which of the following is NOT a violation for which the Texas Real Estate Commission (TREC) may suspend or revoke a license or take other disciplinary action? - Correct answer Failing to advise a buyer or a seller regarding the validity of title to real estate" "A licensed real estate broker is not authorized to practice law unless the broker also is a licensed attorney. Which activity is permitted to be performed by a real estate license holder? - Correct answer Filling in the blanks of a contract form promulgated or approved for that use by the Texas Real Estate Commission (TREC)" "Which would NOT be considered a violation of antitrust laws? - Correct answer Brokers throughout the city set their commission rates unilaterally without consulting with competitors" "It is the duty of an agent to disclose to the principal every step taken in the transaction of the principal's business because - Correct answer the agent has a fiduciary obligation to the principal" "Misleading or deceptive practices according to the Deceptive Trade Practices Act (DTPA) include all of the following EXCEPT - Correct answer stating that a property is being sold "as is."" "The Deceptive Trade Practices Act (DTPA) does NOT apply to the actions of real estate agents when an agent - Correct answer makes an exaggerated or unsubstantiated statement of value given as advice, judgment, or opinion when selling real estate" "A real estate agent tells a seller during a listing presentation that the firm's real estate commission is in line with those of other real estate firms in the area. The broker may - Correct answer be guilty of price-fixing" "A sales agent has which agency relationship with the sponsoring broker? - Correct answer A general agency relationship" "A consumer has sent a complaint to the Texas Real Estate Commission (TREC) against a real estate agent, claiming a violation of the Canon of Integrity. The agent is accused of - Correct answer misrepresenting the condition of the property by omitting pertinent facts" "Which action is permitted under the federal Fair Housing Act? - Correct answer Refusing to sell a home to a minority individual because of a poor credit history" "Which law prohibits all discrimination based on race in any real estate transaction without exception? - Correct answer Civil Rights Act of 1866" "The federal Fair Housing Act of 1968 - Correct answer prohibits discrimination in residential housing based on race, color, national origin, and religion" "Which family is NOT protected under the familial status provisions of the Fair Housing Act? - Correct answer A 55-year-old father, 40-year-old mother, and 17-year-old son who want to purchase a home in an age-restricted adults-only community" ""I hear they're moving in. There goes the neighborhood! Better put your house on the market before values drop!" This is an example of - Correct answer blockbusting" "Where are subdivision plats filed? - Correct answer In the county clerk's office of the county in which the land is located" "The act of channeling homeseekers to a particular area either to maintain or to change the character of a neighborhood is - Correct answer steering" "The priority of a mechanic's lien is established from the date - Correct answer work was begun or materials were delivered, in whole or in part" "Randy has constructed a fence that extends 1 foot over his lot line onto the property of a neighbor. The fence is an example of - Correct answer an encroachment" "Encumbrances on real estate - Correct answer may include liens, easements, and deed restrictions" "Which of the following BEST refers to the type of lien that affects all real and personal property of a debtor? - Correct answer General lien" "The right of defaulted taxpayers to recover their property before its sale for unpaid taxes is the - Correct answer equitable right of redemption" "Which of the following is (are) considered a lien on real estate? - Correct answer Unpaid mortgage loans" "Which of the following is NOT included in the bundle of legal rights regarding real property? - Correct answer Right of first refusal" "What is a section of land? - Correct answer 640 acres" "An acre consists of how many square feet? - Correct answer 43,560"