Principals Exam (version 2)

An agent works on behalf of

• a customer.
• a client.
• both a customer and a client.
• neither a customer not a client.

TRELA

• enforces the License Act.

• may appoint an administrator for the TREC.

• is a primary law that regulates the conduct of the real estate licence holders.

• is the law established by the TREC in the rule-making authority.

The Texas Real Estate Commission

• does not hold the broker accountable for the actions of sponsored associates.
• holds the broker accountable for the professional actions of sponsored associates.
• holds buyers or sellers accountable for the acts of their real estate brokers and sales agents.

A person who engages an agent to represent her interests in a transaction is called a client, or

• a customer of the agent.
• a seller.
• a buyer.
• the agent's principal.

A listing agent tells a buyer-customer that the seller is under pressure to sell because of a recent contract to purchase another house in Idaho. Such disclosure is

• acceptable if it results in a sale.
• acceptable if no details of the move to Idaho are disclosed.
• unacceptable because of the fiduciary duty owed the owner.
• unacceptable because the listing broker is the agent of the buyer.

A material fact is one that

• the client considers important.
• the customer considers important.
• a reasonable person might feel is important.
• the listing broker considers important.

Two people own a house, each having an undivided equal interest. Which of the following best describes what they own?

• Each own fifty percent of the physical house and the land it rests on.
• Each own one hundred percent of the physical house and the land it rests on.
• Each owns fifty percent of the estate represented by the real property, but no physical portion of the real property.
• Each owns one hundred percent of the estate represented by the real property and fifty percent of the physical house and the land it rests on.

An interest in real estate that includes the right to possess is considered

• an estate in land.
• a freehold estate.
• a fee simple estate.
• an encumbrance.

If the duration of an owner's rights in an estate cannot be determined, the owner possesses

• an indeterminate legal estate.
• a leased fee simple estate.
• a freehold estate.
• a leasehold estate.

In what kind of estate does ownership revert to the grantor of the estate if usage fails to conform to a stated condition in the grant?

• Fee simple absolute.
• Life estate with reversion.
• Life estate with condition subsequent.
• Fee simple defeasible.