Texas Real Estate Exam with Verified
Solutions
A lender's title policy will protect the: ✔️✔️lender against existing, undiscovered title
defects
The provision in a mortgage or deed of trust that gives the lender the rights to call the
entire balance due upon a default in any payment is called a(n): ✔️✔️acceleration
clause
In order for a property manager to determine net operating income on a property, which
of the following fees is subtracted from the effective gross income? ✔️✔️Operating
expenses
The value placed on land and buildings by a governmental unit for use in levying annual
real estate taxes is called the: ✔️✔️assessed value
If a buyer makes a 20% down payment and obtains a $75,000 mortgage, what is the
sales price of the property? ✔️✔️$93,750
A special warranty deed provides: ✔️✔️protection against defects that occurred while
the grantor held title
Which of the following acts is illegal under Federal Fair Housing law? ✔️✔️Advertising
property for sale only to members of a specific national origin
A loan that provides for increases and decreases in the interest rate during its term is
known as a(n): ✔️✔️adjustable-rate mortgage
The right of local government officials to acquire title to real estate for public purposes
by condemnation is based on the power of: ✔️✔️eminent domain
The price for which a property will sell if offered openly under normal conditions is
known as: ✔️✔️market value
The condition which allows a property owner to convey a right to another party while
retaining full legal title is a(n): ✔️✔️easement
The acquisition of another's title to real property by means of open, notorious, and
continuous use is known as an: ✔️✔️adverse possession
, The commission earned by a listing broker on a sale of property is established by:
✔️✔️Agreement between the seller and the broker
Ifafree-standingapplianceissoldseparatelyfromareal estate transaction, the seller should
furnish the buyer with a: ✔️✔️bill of sale
In order for a brokerage to be able to represent both the buyer and seller in a real estate
transaction, the brokerage needs to have the permission of: ✔️✔️both parties
G borrowed $15,000 to buy a business. The interest
rate was 11%. If G paid all the interest and the amount borrowed with a single payment
at the end of 16 months, what is the amount of this payment? ✔️✔️$17,200
Which of the following types of developments allows fee ownership of individual units
with joint ownership of common areas? ✔️✔️Condominiums
An unimproved lot is located in the service area of a water supply corporation. The
seller is subject to the notice requirements relating to a service provider. What is the
buyer's statutory remedy if the seller fails to give the written notice REQUIRED by law?
✔️✔️Terminate the purchase contract with the seller.
To be eligible for a real estate license, an individual MUST: ✔️✔️satisfy the
Commission as to the individual's integrity
Who can pay money to a licensed salesperson to perform sales activities for a house a
broker has listed for sale? ✔️✔️The salesperson's sponsoring broker and no one else.
According to The Real Estate License Act of Texas, which one of the following actions
is a fair and impartial act for an intermediary? ✔️✔️Appointing associated licensees to
work with the parties.
As a marketing promotion, a real estate salesperson offers property for sale by lottery.
This practice is: ✔️✔️grounds for suspension or revocation of license
When the association of a salesperson with the sponsoring broker is terminated, the
broker MUST: ✔️✔️immediately return the salesperson's license to the Commission
When negotiating contracts binding the sale or lease of property, a real estate licensee
MUST use an appropriate Texas Real Estate Commission-promulgated form
unless another contract form has been prepared and is REQUIRED by the:
✔️✔️owner of the property
An individual is exempt from real estate licensure in Texas when performing which one
of the following activities? ✔️✔️Offering an employer's property for rent.
Solutions
A lender's title policy will protect the: ✔️✔️lender against existing, undiscovered title
defects
The provision in a mortgage or deed of trust that gives the lender the rights to call the
entire balance due upon a default in any payment is called a(n): ✔️✔️acceleration
clause
In order for a property manager to determine net operating income on a property, which
of the following fees is subtracted from the effective gross income? ✔️✔️Operating
expenses
The value placed on land and buildings by a governmental unit for use in levying annual
real estate taxes is called the: ✔️✔️assessed value
If a buyer makes a 20% down payment and obtains a $75,000 mortgage, what is the
sales price of the property? ✔️✔️$93,750
A special warranty deed provides: ✔️✔️protection against defects that occurred while
the grantor held title
Which of the following acts is illegal under Federal Fair Housing law? ✔️✔️Advertising
property for sale only to members of a specific national origin
A loan that provides for increases and decreases in the interest rate during its term is
known as a(n): ✔️✔️adjustable-rate mortgage
The right of local government officials to acquire title to real estate for public purposes
by condemnation is based on the power of: ✔️✔️eminent domain
The price for which a property will sell if offered openly under normal conditions is
known as: ✔️✔️market value
The condition which allows a property owner to convey a right to another party while
retaining full legal title is a(n): ✔️✔️easement
The acquisition of another's title to real property by means of open, notorious, and
continuous use is known as an: ✔️✔️adverse possession
, The commission earned by a listing broker on a sale of property is established by:
✔️✔️Agreement between the seller and the broker
Ifafree-standingapplianceissoldseparatelyfromareal estate transaction, the seller should
furnish the buyer with a: ✔️✔️bill of sale
In order for a brokerage to be able to represent both the buyer and seller in a real estate
transaction, the brokerage needs to have the permission of: ✔️✔️both parties
G borrowed $15,000 to buy a business. The interest
rate was 11%. If G paid all the interest and the amount borrowed with a single payment
at the end of 16 months, what is the amount of this payment? ✔️✔️$17,200
Which of the following types of developments allows fee ownership of individual units
with joint ownership of common areas? ✔️✔️Condominiums
An unimproved lot is located in the service area of a water supply corporation. The
seller is subject to the notice requirements relating to a service provider. What is the
buyer's statutory remedy if the seller fails to give the written notice REQUIRED by law?
✔️✔️Terminate the purchase contract with the seller.
To be eligible for a real estate license, an individual MUST: ✔️✔️satisfy the
Commission as to the individual's integrity
Who can pay money to a licensed salesperson to perform sales activities for a house a
broker has listed for sale? ✔️✔️The salesperson's sponsoring broker and no one else.
According to The Real Estate License Act of Texas, which one of the following actions
is a fair and impartial act for an intermediary? ✔️✔️Appointing associated licensees to
work with the parties.
As a marketing promotion, a real estate salesperson offers property for sale by lottery.
This practice is: ✔️✔️grounds for suspension or revocation of license
When the association of a salesperson with the sponsoring broker is terminated, the
broker MUST: ✔️✔️immediately return the salesperson's license to the Commission
When negotiating contracts binding the sale or lease of property, a real estate licensee
MUST use an appropriate Texas Real Estate Commission-promulgated form
unless another contract form has been prepared and is REQUIRED by the:
✔️✔️owner of the property
An individual is exempt from real estate licensure in Texas when performing which one
of the following activities? ✔️✔️Offering an employer's property for rent.
