AYPO Real Estate Principles of Real
Estate I Exam Study Guide
A contraction or generally slowing down of the economy is a: - CORRECT ANSWER-
Recession.
What is the primary purpose for real estate licensing laws? - CORRECT ANSWER-1.
To protect the general public during real estate transactions from dishonest or
incompetent brokers and sales agents.
2. To set out minimum standards and qualifications for licensing brokers and sales
agents.
3. To protect licensed brokers and sales agents from unfair or improper competition.
Per 1101.2051(b), information or material prepared or compiled by the commission in
connection with a complaint, investigation, or audit may be disclosed: - CORRECT
ANSWER-to the respondent of the complaint.
What type of property category includes churches, other places of worship, schools and
colleges, cemeteries and certain government-held properties? - CORRECT ANSWER-
Special-purpose.
Emblements are best described by which of the following? - CORRECT ANSWER-
Harvestable plants, trees, and uncultivated vegetation.
A manufactured home can be considered real property if: - CORRECT ANSWER-1.
both the Texas Department of Housing and Community Affairs and the home's county's
chief tax appraiser have been notified of the filing
2. a certified copy of the "Statement of ownership and location" for the home has been
filed by the owner in the real property records of the county where the home is located
3. the owner of the home has elected to treat the home as their real property
The number one reason that people move is: - CORRECT ANSWER-Employment
opportunity
How much money can a first time homebuyer draw from his or her own IRA without tax
penalty for the purchase? - CORRECT ANSWER-$10,000
According to the Texas Department of Insurance, most homeowners policies in Texas
include which of the following coverages? - CORRECT ANSWER-1. Loss of use.
2. Medical payments.
3. Dwelling.
, A C.L.U.E. report advises a consumer on: - CORRECT ANSWER-up to seven years of
claims history on a property
Prior to the introduction of the condominium concept, property ownership had been
limited to ownership of... - CORRECT ANSWER-Land.
All the meanings of agent and agency refer to someone who does which of the
following? (Best answer.) - CORRECT ANSWER-Acts on behalf of someone else to
perform a task or range of tasks.
An appointed licensee must do which of the following? - CORRECT ANSWER-Not
disclose that an owner would accept a price lower than the asking price
Which of the following fulfills Section 1101.806 of TRELA requirements for
compensation? - CORRECT ANSWER-The agreement to pay was in writing and signed
by the party to be charged
Multiple real estate brokerages establishing an across-the-board 6% commission for
their agents would be guilty of... - CORRECT ANSWER-price fixing.
Which of the following are common law fiduciary duties? - CORRECT ANSWER-Care,
disclosure, loyalty, accounting, & obedience
Which of the following is not used as a test to determine whether a statement is mere
"puffing"? - CORRECT ANSWER-The cost of the good or service
TREC has the authority under TRELA to suspend or even revoke a broker's license if: -
CORRECT ANSWER-They conduct the unlawful practice of law
ESAC stands for: - CORRECT ANSWER-Education Standards Advisory Committee
What refers to a location from an economic rather than a geographic standpoint? -
CORRECT ANSWER-Situs.
Which amendment guarantees that a citizen will not be deprived of property without due
process of law? - CORRECT ANSWER-5th Amendment.
The CFPB is the: - CORRECT ANSWER-Consumer Financial Protection Bureau
A professional organization or association is usually a not-for-profit organization that
seeks to: - CORRECT ANSWER-further a particular profession and the interests of
individuals engaged in that profession.
Estate I Exam Study Guide
A contraction or generally slowing down of the economy is a: - CORRECT ANSWER-
Recession.
What is the primary purpose for real estate licensing laws? - CORRECT ANSWER-1.
To protect the general public during real estate transactions from dishonest or
incompetent brokers and sales agents.
2. To set out minimum standards and qualifications for licensing brokers and sales
agents.
3. To protect licensed brokers and sales agents from unfair or improper competition.
Per 1101.2051(b), information or material prepared or compiled by the commission in
connection with a complaint, investigation, or audit may be disclosed: - CORRECT
ANSWER-to the respondent of the complaint.
What type of property category includes churches, other places of worship, schools and
colleges, cemeteries and certain government-held properties? - CORRECT ANSWER-
Special-purpose.
Emblements are best described by which of the following? - CORRECT ANSWER-
Harvestable plants, trees, and uncultivated vegetation.
A manufactured home can be considered real property if: - CORRECT ANSWER-1.
both the Texas Department of Housing and Community Affairs and the home's county's
chief tax appraiser have been notified of the filing
2. a certified copy of the "Statement of ownership and location" for the home has been
filed by the owner in the real property records of the county where the home is located
3. the owner of the home has elected to treat the home as their real property
The number one reason that people move is: - CORRECT ANSWER-Employment
opportunity
How much money can a first time homebuyer draw from his or her own IRA without tax
penalty for the purchase? - CORRECT ANSWER-$10,000
According to the Texas Department of Insurance, most homeowners policies in Texas
include which of the following coverages? - CORRECT ANSWER-1. Loss of use.
2. Medical payments.
3. Dwelling.
, A C.L.U.E. report advises a consumer on: - CORRECT ANSWER-up to seven years of
claims history on a property
Prior to the introduction of the condominium concept, property ownership had been
limited to ownership of... - CORRECT ANSWER-Land.
All the meanings of agent and agency refer to someone who does which of the
following? (Best answer.) - CORRECT ANSWER-Acts on behalf of someone else to
perform a task or range of tasks.
An appointed licensee must do which of the following? - CORRECT ANSWER-Not
disclose that an owner would accept a price lower than the asking price
Which of the following fulfills Section 1101.806 of TRELA requirements for
compensation? - CORRECT ANSWER-The agreement to pay was in writing and signed
by the party to be charged
Multiple real estate brokerages establishing an across-the-board 6% commission for
their agents would be guilty of... - CORRECT ANSWER-price fixing.
Which of the following are common law fiduciary duties? - CORRECT ANSWER-Care,
disclosure, loyalty, accounting, & obedience
Which of the following is not used as a test to determine whether a statement is mere
"puffing"? - CORRECT ANSWER-The cost of the good or service
TREC has the authority under TRELA to suspend or even revoke a broker's license if: -
CORRECT ANSWER-They conduct the unlawful practice of law
ESAC stands for: - CORRECT ANSWER-Education Standards Advisory Committee
What refers to a location from an economic rather than a geographic standpoint? -
CORRECT ANSWER-Situs.
Which amendment guarantees that a citizen will not be deprived of property without due
process of law? - CORRECT ANSWER-5th Amendment.
The CFPB is the: - CORRECT ANSWER-Consumer Financial Protection Bureau
A professional organization or association is usually a not-for-profit organization that
seeks to: - CORRECT ANSWER-further a particular profession and the interests of
individuals engaged in that profession.
