TEXAS REAL ESTATE PRINCIPLES 2024 ACTUAL FINAL EXAM AND PRACTICE QUESTIONS 250 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+

A local real estate developer bought an abandoned school building with the intention of converting it to residential units. This is an example of... - ....ANSWER...Converted use property An individual is exempt from paying taxes on capital gains for up to how much in profit if he/she lived in the house for at least 2 of the last 5 years. - ....ANSWER...$250,000 The employer of an agent is referred to as the... - ....ANSWER...principal An agency relationship created by oral or written agreement between principal and the agent is known as... - ....ANSWER...Express Agency A contract whereby a property owner employs a real estate broker to market the property described in the contract is referred to as the... - ....ANSWER...Listing Contract When a real estate broker represents a buyer in a transaction, the broker and buyer are bound by which of the following contracts? - ....ANSWER...Buyer Representation Agreement As a seller's agent in a transaction, the agent is required to do which of the following? - ....ANSWER...Inform the seller of any material information, present all offers to the seller, and answer to the seller. The "L" in the acronym COALD stands for which fiduciary duty? - ....ANSWER...loyalty The Deceptive Trade Practices Act discourages agents from which of the following acts? - ....ANSWER...Puffing This federal law requires all federally regulated lender to describe the geographic market area that they serve. - ....ANSWER...Community Reinvestment Act Which of the following is a means to prevent steering? - ....ANSWER...Ask the client to describe where they want to live based on geographical boundaries. Any medical disorder, condition, disfigurement or loss affecting one of the body systems is known as... - ....ANSWER...physical impairment Blockbusting is also called _______________. - ....ANSWER...panic selling The laws governing fair housing are also referred to as... - ....ANSWER...Equal opportunity housing Which of the following is considered illegal under the Fair Housing Act? - ....ANSWER...Refusing to sell to a protected class, refusing to show properties in neighborhoods based on racial criteria, or refusing to show properties based on religious criteria The prohibition of fair housing discrimination by a licensee is described as which of the following... - ....ANSWER...Texas Real Estate License Act Fidelity on TRECs canons of professional ethics implies... - ....ANSWER...loyalty In addition to the loyalty owed by an agent to his/her client, the agent must also act fairly to other customers in the transaction. This is an example of... - ....ANSWER...fidelity The intricacies in marketing property for others involves... - ....ANSWER...Competency The form must be posted in brokerage offices. - ....ANSWER...Consumer information form 1-1 Libby is a real estate agent. She knows that she must place her clients interests above her own. This is an example of... - ....ANSWER...fidelity An agent must be honest and truthful. This is an example of... - ....ANSWER...integrity In addition to the TREC canons of professional ethics, this organization also publishes a code of ethics that must be followed by its members... - ....ANSWER...National association of realtors After the applicant submit their real estate sale persons application, their license will be mailed to which of the following... - ....ANSWER...The applicants sponsoring broker Who is legally entitled to receive commission from a principal for a sale or rental of the principal's property? - ....ANSWER...Real Estate Broker If an administrative penalty is not paid, who is responsible for collecting the payment? - ....ANSWER...The Attorney General Which of the following is exempt from holding a real estate license? - ....ANSWER...A homeowner looking to sell their house on their own. A real estate broker is authorized to perform which of the following? - ....ANSWER...Deal or sell options on real estate; identify properties for purchase or lease; auction off real estate. Who determines the standards for real estate licensing courses in Texas? - ....ANSWER...Texas Real Estate Commission