TEXAS PRINCIPLES 1 EXAM PRACTICE QUESTIONS WITH CORRECT & VERIFIED ANSWERS - CHAMPIONS SCHOOL OF REAL ESTATE. UPDATED

TEXAS PRINCIPLES 1 EXAM PRACTICE QUESTIONS WITH CORRECT & VERIFIED ANSWERS - CHAMPIONS SCHOOL OF REAL ESTATE. UPDATED If a real estate salesperson closes on a transaction, who pays the salesperson their commission? - Correct Answer The salesperson's sponsoring broker" "A means of comparing similar type properties, which have recently sold, to the subject property is known as the? - Correct Answer Market Comparison Approach" "The market comparison approach is commonly used for this property type? - Correct Answer Residential" "A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property is known as a? - Correct Answer Condominium" "A mortgage payment typically includes? - Correct Answer Interest Principal Insurance" "The amount of goods offered for sale within a given market at a given price during a given time period is known as? - Correct Answer Supply" "A real estate agent is an example of what type of agent? - Correct Answer Special agent" "A refrigerator is typically considered? - Correct Answer Personal Property" "Mobile homes not permanently attached to the land are generally considered? - Correct Answer Personal Property" "Which of the following is considered a legal test for determining if an item is a fixture or not? - Correct Answer Mode and permanence of how the item was attached Adaptation of the item Intention of the parties All of the above" "The right of exclusion, which allows a landowner to prevent others from entering or occupying their property, is included in the? - Correct Answer Bundle of rights" "Which of the following is an example of a fixture? - Correct Answer Kitchen cabinets" "Which of the following is an advantage to owning a home? - Correct Answer Potential for asset appreciation Tax benefits Pride of ownership All of the above" "An individual who has not owned real property for at least the previous two years is known as a? - Correct Answer First-time homebuyer" "Which of the following is NOT a form of real property? - Correct Answer Cooperative" "Real estate brokers have a ...... relationship with the principal? - Correct Answer Fiduciary" "The 'L' in the acronym C.O.A.L.D. stands for which fiduciary duty? - Correct Answer Loyalty" "When a real estate broker represents a buyer in a transaction, the broker and buyer are bound by which of the following contracts? - Correct Answer buyer representation agreement" "An agency relationship created by oral or written agreement between the principal and the agent is known as? - Correct Answer Express agency" "The Deceptive Trade Practices Act discourages agent from which of the following acts? - Correct Answer Puffing- usually a exaggeration made by a salesperson or found in an ad regarding the quality of the item or the service offered." "The prohibition of fair housing discrimination by a licensee is described in which of the following Acts? - Correct Answer Texas Real Estate License Act" "The laws governing fair housing are also referred to as? - Correct Answer equal housing opportunities" "Under the Equal Credit Opportunity Act, lenders must provide financing based on which of the following criteria? - Correct Answer Income" "Blockbusting is also known as? - Correct Answer panic selling" "Any medical disorder, condition, disfigurement or loss affecting one of the body systems is known as a...? - Correct Answer Physical impairment" "HUD fair housing complaints can be filed in which of the following ways/ - Correct Answer Online Mail Phone" "Which of the following is considered illegal under the Fair Housing Act...? - Correct Answer Refusing to sell to a protected class Refusing to show properties in neighborhoods based on racial criteria Refusing to show properties in neighborhoods based on religious criteria" "How is ownership in a community property between a husband and wife divided...? - Correct Answer Ownership is divided equally among the owners" "The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant is known as...? - Correct Answer right of survivorship" "A joint tenancy is terminated when which of the following ceases to exist...? - Correct Answer Interest, Title, Posession" "Property owned by one person only is referred to as? - Correct Answer Severalty Ownership" "A division of real or personal property or the proceeds therefrom among co-owners is known as? - Correct Answer partition" "This type of listing provides that the agent may retain as compensation for the agent's services all sums received over and above a net price to the owner...? - Correct Answer Net Listing" "Which entity produces the most commonly used Exclusive Right to Sell agreement in Texas...? - Correct Answer Texas Association of Realtors" "A broker's compensation is - Correct Answer Negotiable" "Which of the following is a type of contract used between brokers and sellers...? - Correct Answer Exclusive Agency Agreement Exclusive Right to Sell Agreement Open Listing" "Which of the following is an example of an addendum found in a listing contract...? - Correct Answer Seller Disclosure Notice Request for Information from an Owner's Association Lead Based Paint Disclosure" "The intricacies in marketing properties for others involves...? - Correct Answer Competency" "An agent must be honest and truthful. This is an example of...? - Correct Answer integrity" "Which of the following is one of the TREC canons of professional ethics...? - Correct Answer Fidelity Integrity Competency" "If an agent does not abide by the TREC canons of professional ethics, which of the following may occur...? - Correct Answer The agent's license can be revoked The agent's license can be suspended The agent may be placed on probation" "Fidelity, on TRECs canons of professional ethics, implies? - Correct Answer Loyalty" "In addition to the TREC canons of professional ethics, this organization also publishes a code of ethics that must be followed by its members...? - Correct Answer National Association of Realtors" "Who is legally entitled to receive a commission from a principal for a sale or rental of the principal's property...? - Correct Answer real estate broker" "A real estate broker is authorized to perform which of the following acts...? - Correct Answer Identify properties for purchase or lease Deal or sell options on real estate Auction off real estate" "If an administrative penalty is not paid, who is responsible for collecting the payment...? - Correct Answer Attorney General" "Which of the following is exempt from holding a real estate license...? - Correct Answer A homeowner looking to sell their house on their own" "Who determines the standards for real estate licensing courses in Texas...? - Correct Answer Texas Real Estate Commision" "The subdivision plat method of describing property includes which of the following...? - Correct Answer Lots and Blocks" "When using the metes and bounds method to describe property, the origin point is also the...? - Correct Answer End Point" "If an individual uses sections to help describe a property, they are most likely using which of the following methods...? - Correct Answer Government Survey" "Metes and bounds is an example of a...? - Correct Answer Legal description" "Which of the following property descriptions is not used in the State of Texas? - Correct Answer Government Survey" "Until a purchase contract is closed upon, it is considered a/an...? - Correct Answer Executory contract" "If one of the parties in a real estate transaction are not considered competent, the contract between the parties is considered a/an...? - Correct Answer voidable contract" "To mingle or mix, for example, a client's funds in the broker's personal or general account is known as...? - Correct Answer commingling" "Which of the following real estate contracts must be in writing...? - Correct Answer Purchase contract for a multi-family property Lease contract for greater than 1 year Sales contract" "Oral listing agreements between a seller and a broker are...? - Correct Answer Unenforceable" "A fee simple estate is an example of which of the following estates...? - Correct Answer Freehold estate" "A lien imposed against property without consent of an owner is referred to as a/an...? - Correct Answer involuntary lien" "A right acquired by one party to use the land of another party for a special purpose is known as a...? - Correct Answer Easement" "Which of the following acronyms can be used to describe government powers with regards to real property...? - Correct Answer PETE" "The land that is encumbered by an easement is referred to as the...? - Correct Answer Servient tenement"