Real Estate Practice Exam Questions 1

A group of 26 different families have shared ownership of a vacation condominium. Each family spends two weeks annually at the condominium. Legally, the condominium is considered a ______.

• Co-op

• Foreclosure unit

• Rental property

• Timeshare property

Does an on-site manager of an apartment complex in Texas need a real estate license?

•   No, a real estate license is not required.

• No, but certification is required.

• Yes, a broker license is required.

• Yes, a sales agent license is required.

What is the education requirement for first time renewals for sales agents in Texas?

•   18 hours of approved continuing education courses

•   8 hours of TREC's legal updates

•   90 hours of sales apprentice education (SAE)

•   90 hours of sales apprentice education (SAE) and 8 hours of TREC's legal updates

The ESAC makes recommendations to which agency?

•   National Association of REALTORS®

  
  

•   Texas Legislature

  
  

•   Texas Real Estate Commission

•   U.S. Congress

What’s the name of the act that requires public accommodation areas to be accessible?

•   Americans with Disabilities Act

•   Civil Rights Act

•   Federal Fair Housing Act

•   Housing for Older Persons Act

Which physical characteristic of land addresses the concept that land isn't interchangeable, and one piece of land isn't exactly like another?

•   Immobility

•   Indestructibility

•   Permanence of investment

  
  

•   Uniqueness

What kind of tax could be levied on property owners for a public project that benefited the property owners only in that district?

• income tax

• sales tax

• special assessment tax

• transfer tax

What signifies that a survey is certified and represents a guarantee of accuracy?

• spot survey

• survey legend

• surveyor's stamp

• title insurance policy

Dwight tells his buyer Jamie that a nearby stream could possibly flood the basement, though it’s never happened to him. After signing the contract, Jamie’s home inspector shows proof that the basement flooded last year, when Dwight was still living in the home. What’s true about this situation?

• Dwight has committed fraud, which has invalidated Jamie’s consent.

• Jamie can’t invalidate the contract; his only course of action is to sue Dwight.

• Jamie can’t invalidate the contract, since this information was discovered after the contract was signed.

•   This is a clear case of misrepresentation by the home inspector.

Martin placed all of his real estate investments in a trust, and the proceeds are distributed through the trust to his son Nathan. Martin still manages the properties indirectly, and Nathan currently benefits, as he’s past the required beneficiary age of 18. What type of trust is this?

• Indirect trust

• Living trust

• Probate trust

• Testamentary trust