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TEXAS REAL ESTATE PRINCIPLES EXAM BANK
ACCURATE AND FREQUENTLY TESTED QUESTIONS
AND 100% CORRECT ANSWERS|| LATEST AND
COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS|| SURE PASS
If a property is located in a flood zone, which of the following types of insurance
does a real estate lender NOT require?
Group of answer choices
Property coverage
Fire coverage
Flood Coverage
None of the above - ANSWER: None of the Above
The guest of a unit owner was injured by stepping on broken glass in the
swimming pool at a Luxurious condominium. Liability for this injury would
probably initially fall upon:
Group of answer choices
The developers
The unit owner
The management company
The condominium association - ANSWER: The condominium association
Capital gains tax is:
Group of answer choices
The difference between the amount realized and the basis
a tax charged against corporations
A tax on the sale of all property
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A tax on the profits from the sale of a capital asset - ANSWER: Tax on the profits
from the sale of a capital asset
John, a single man plans to sell his primary residence. The estimated amount of
gain is $252,000. Which of the following is true?
Group of answer choices
John can exclude the gain from the sale of the property since it's his primary
residence
The IRS has to be notified of the gain
John has to reduce the sale amount of the property
None of the above - ANSWER: The IRS has to be notified of the gain
In a limited partnership, the limited partner
Group of answer choices
Offers financial backing
Is not involved in the daily activities of the partnership
Has liability limited by the amount of their investment
All of the above - ANSWER: All of the above
A business entity owned by stockholders who possess shares of stock as evidence
of their ownership is a(n):
Group of answer choices
General partnership
Association
Corporation
Limited liability company - ANSWER: Corporation
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If any unity of joint tenancy is broken, the law will regard the estate as:
Group of answer choices
Tenancy by the entirety
Tenancy in common
Community property
Estate in severalty - ANSWER: Tenancy in common
Which of the following takes effects during the life of the creator?
Group of answer choices
Inter vivos trust
Testamentary trust
Land trust
Joint venture - ANSWER: Inter vivos trust
Community Property is owned by:
Group of answer choices
The city or community
The church
Parent and child if the child is over 21
Husband and wife - ANSWER: Husband and wife
A partnership is formed when two or more people unite all of the following as a
business except:
Group of answer choices
Skill
Debt
TEXAS REAL ESTATE PRINCIPLES EXAM BANK
ACCURATE AND FREQUENTLY TESTED QUESTIONS
AND 100% CORRECT ANSWERS|| LATEST AND
COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS|| SURE PASS
If a property is located in a flood zone, which of the following types of insurance
does a real estate lender NOT require?
Group of answer choices
Property coverage
Fire coverage
Flood Coverage
None of the above - ANSWER: None of the Above
The guest of a unit owner was injured by stepping on broken glass in the
swimming pool at a Luxurious condominium. Liability for this injury would
probably initially fall upon:
Group of answer choices
The developers
The unit owner
The management company
The condominium association - ANSWER: The condominium association
Capital gains tax is:
Group of answer choices
The difference between the amount realized and the basis
a tax charged against corporations
A tax on the sale of all property
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A tax on the profits from the sale of a capital asset - ANSWER: Tax on the profits
from the sale of a capital asset
John, a single man plans to sell his primary residence. The estimated amount of
gain is $252,000. Which of the following is true?
Group of answer choices
John can exclude the gain from the sale of the property since it's his primary
residence
The IRS has to be notified of the gain
John has to reduce the sale amount of the property
None of the above - ANSWER: The IRS has to be notified of the gain
In a limited partnership, the limited partner
Group of answer choices
Offers financial backing
Is not involved in the daily activities of the partnership
Has liability limited by the amount of their investment
All of the above - ANSWER: All of the above
A business entity owned by stockholders who possess shares of stock as evidence
of their ownership is a(n):
Group of answer choices
General partnership
Association
Corporation
Limited liability company - ANSWER: Corporation
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If any unity of joint tenancy is broken, the law will regard the estate as:
Group of answer choices
Tenancy by the entirety
Tenancy in common
Community property
Estate in severalty - ANSWER: Tenancy in common
Which of the following takes effects during the life of the creator?
Group of answer choices
Inter vivos trust
Testamentary trust
Land trust
Joint venture - ANSWER: Inter vivos trust
Community Property is owned by:
Group of answer choices
The city or community
The church
Parent and child if the child is over 21
Husband and wife - ANSWER: Husband and wife
A partnership is formed when two or more people unite all of the following as a
business except:
Group of answer choices
Skill
Debt
