PRINCIPLES OF REAL ESTATE 1 FINAL EXAM PREP 2025/2026 ACCURATE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS <RECENT VERSION>

PRINCIPLES OF REAL ESTATE 1 FINAL EXAM PREP 2025/2026 ACCURATE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS &lt;RECENT VERSION&gt; 1. What is the difference between ethics and the law? - ANSWER Laws are legally enforceable. Ethics aren't legally enforceable until they become law. 2. A ______ gives the purchaser the right to possess the property at given times for a given duration but doesn't convey ownership. - ANSWER Timeshare use 3. Which of the following is included in HMDA data? - ANSWER HMDA data does not report specific information like property address, or borrower names and Social Security numbers. It does include census tract information that's used in place of the property address to give a general idea of the property's location. 4. Which federal act makes it illegal to send unsolicited commercial solicitations via fax without the recipient's permission or an established relationship? - ANSWER Junk Fax Prevention Act of 2005 5. Where can an agent report an antitrust violation? - ANSWER Citizens Complaint Center of the Antitrust Division 6. What form of ownership is inheritable and includes the entire bundle of rights, not subject to any conditions or qualifications? - ANSWER Fee absolute 7. The National ______ Housing Alliance has made recommendations for promoting diverse neighborhoods. - ANSWER Fair 8. What type of real estate agency relationship usually exists when a licensee has the broad responsibility of handling all of the details of a specific transaction? - ANSWER General 9. Which of these actions violates the NAR Code of Ethics? - ANSWER Preparing a written agreement that falsely states a purchase price 10. If the court determines that someone who violated Texas antitrust laws did so willfully, the injured person(s) or entity is entitled to recover ______ times the damages and the cost of the lawsuit. - ANSWER Three 11. Dexter engaged a general contractor to build an addition to his house. The general contractor failed to pay the electrical subcontractor for work that was subcontracted to him. May the subcontractor secure a mechanic's lien on Dexter's house? A) Yes, because the work was done on Dexter's property. B) Yes, because a mechanic's lien is a general lien that attaches to all property of the lienee. C) No, because Dexter did not attach to real property of the general contractor. D) No, because the lien would attach to real property of the general contractor. - ANSWER A) Yes, because the work was done on Dexter's property. - Answer given 12. All of the following are true of a quiet title suit EXCEPT that it: A) is a judicial proceeding B) removes all claims to title other than the owner's C) quiets those without a genuine interest in the property D) can be used to clear up a disputed title - ANSWER B) removes all claims to title other than the owner's - Answer given 13. Protection against incomplete or defective records of the title to land can best be obtained by securing: A) an abstract of title B) title insurance C) an attorney's opinion D) a title searcher's opinion - ANSWER B) title insurance - Answer given 14. The statute of frauds established the requirement that: A) written deeds be used to show transfers of ownership B) all deeds be recorded in the public records C) a system of public records be established D) anyone claiming ownership of land visibly occupy the land - ANSWER A) written deeds be used to show transfers of ownership - Answer given 15. The practice of directing homeseekers to particular neighborhoods based on race, color, religion, sex, or national origin: A) is known as steering B) is prohibited by the Civil Rights Act of 1866 C) constitutes blockbusting D) is called familial status - ANSWER A) is known as steering - Answer given 16. The Texas Real Estate Recovery Fund is funded: A) solely by real estate license fees B) by real estate license fees and general revenue funds C) by taxes and real estate license fees D) by real estate application fees and legislative appropriations - ANSWER A) solely by real estate license fees - Correct answer 17. Once a person is aware of another's rights or interest in property, that person is said to have: A) constructive notice B) legal notice C) inquiry notice D) actual notice - ANSWER D) actual notice - Answer given 18. When a person assumes, through adverse possession or assignment, the rights of a previous adverse possessor, it is known as: A) tacking on B) prescription C) adversity D) probate - ANSWER A) tacking on - Answer given 19. A licensee locates what seems like a ready, willing, and able buyer. However, the deal falls through at closing because the buyer can't obtain necessary financing. At the same time, though, the seller turns out to be unable to provide marketable title. Does the seller still owe a commission to the listing agent in this case? A. No, because the sale didn't close B. No, because there was no ready, willing, and able buyer C. Yes, because the licensee saw the transaction through to the closing date D. Yes, because the seller has an absolute duty to provide marketable title at closing - ANSWER B. No, because there was no ready, willing, and able buyer 20. Buyer Bob and Seller Sam decide to wait until Sam's listing agreement with XYZ Real Estate has expired, to avoid paying a commission. Does the listing agent have any legal recourse? A. Yes, the listing agent can pursue criminal charges B. Yes, the listing agent can sue Bob under the listing agreement C. Yes, the listing agent can sue Sam under the listing agreement D. No, the listing agent has no further recourse - ANSWER D. No, the listing agent has no further recourse 21. Bronson agreed to sell his house to the Hatchers. Closing is scheduled for May 15. Bronson already paid the taxes for the entire year, but the Hatchers are assuming responsibility for the taxes as of the closing date. The settlement statement will prorate the taxes as a: A. credit to the buyer, and debit to the seller B. debit to the buyer, and credit to the seller C. debit to the seller D. credit to the buyer - ANSWER B. debit to the buyer, and credit to the seller 22. To be entitled to sue for a commission, a person must be able to prove that at the time the real estate activities were performed, she: A. was licensed B. had passed the real estate exam C. had at least a verbal promise of compensation D. was under the supervision of a mentor - ANSWER A. was licensed 23. Q falls behind on his child support payments. The matter is forwarded to the Director of the Department of Licensing. What action is available to the Director? She can: A. suspend Q's license B. revoke Q's license C. fine Q up to $5,000 D. issue a cease and desist order - ANSWER A. suspend Q's license 24. A legal action brought in court to compel a party to fulfill the terms of a contract because the land is unique and money damages would not adequately compensate the party victimized by a breach is called a/an: A. partition action B. suit for specific performance C. quiet title action D. injunction - ANSWER B. suit for specific performance 25. When demand increases, real estate prices - ANSWER increase 26. When supply increases, real estate prices usually - ANSWER decrease 27. When supply decreases and demand decreases, real estate prices - ANSWER remain stable