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WorksheetsReal Estate Practice Exam Questions 1
Total questions: 100
Worksheet time: 50mins
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
In Texas, which of the following is a true statement?
Only sub-surface rights may be sold.
Only surface rights may be sold.
Surface rights and sub-surface rights can be sold separately.
Surface rights and sub-surface rights cannot be sold separately.
Why do ethics matter in real estate?
Ethical people make more money.
Ethics are enforced by statute.
Ethics are the law
Ethics uphold the profession
Terri just bought her first home! She’s so excited to be living the American Dream. She owns her home’s interior, including the walls, but not the land on which it sits. What type of home does Terri own?
Apartment
Condominium
Cooperative
Townhouse
Whats a datum?
An iron pin or other permanent marker used in metes and bounds descriptions
A point indicating a location is at sea level
A point, surface, or line used as a reference for measuring elevations
The center of a township
Which of these policies is an example of discrimination based on familial status?
A landlord charges an extra $100 security deposit for each child living in a property.
All residents must show a U.S. birth certificate as part of the application process.
No barbecue grills are allowed on balconies.
No skateboards, bicycles, wheelchairs, or anything else that could scuff the historic hardwood floors are allowed in the building.
In the real estate business, whose primary role is it to provide clients with the information they need to make informed decisions about their own specific real estate interests?
home inspector
lender
real estate counselor
real estate educator
Which of the following is a true statement about the MLS and sellers?
For most sellers, listing on the MLS is not cost effective.
It's rare for sellers to decline advertising their property on the MLS.
Most sellers dislike advertising their property on an MLS.
Sellers are required to list their properties on the MLS if they're working with a real estate licensee.
Ron’s company leased a building so that it could build an escape room experience. After operating for two years, attendance (and thus its profits) started to drop significantly, so it decided to close the location. When the workers started taking down the installation, they realized that some of the structures would damage the walls if they were to try to remove them. Which of these is true about these trade fixtures?
If Ron leaves them in place and the lease expires, he has three months to remove them.
Ron is required to leave the fixtures if they're attached.
Ron is required to take the fixtures and return the premises to its original condition.
Ron may take the fixtures as long as he repairs any damage caused by removal.
When does partial performance of a contract occur?
Both parties fully meet the terms of the contract.
Due to circumstances out of their control, the parties cannot legally or practically do what they’ve agreed to do.
One or both parties have completed only a portion of the terms agreed to in the contract.
One party did not meet the terms of the contract in the specified timeframe and is being required to do exactly what was agreed to in the contract.
Kellan and Stacy are in the midst of a property dispute. Each party has a legal description and survey that show conflicting boundaries between their properties. What may be the best way to resolve this dispute?
One property owner can sell their property to the other.
They must agree between themselves where the true boundary lies.
They must take the dispute to court.
They should each hire a land surveyor to determine the boundary.
Although Ophelia hasn’t signed a buyer agency agreement with Randall, she continues to ask him to show her homes, and Randall does. What type of agency is this considered?
agency by action
agency by default
agency by proxy
agency by fatification
In many areas of the country, Marcellus Shale has become a hot commodity. This type of rock produces gas, which can be mined, stored, and sold. Abe learned that his family farmstead sat over a rich deposit of Marcellus Shale. What type of rights does Abe have relative to this shale?
air rights
sub-surface rights
surface rights
water rights
Which of these is usually a brass marker that is used to mark a datum?
base line
benchmark
mounment
principal merdian
Martha made an offer to buy Drake’s home, and he accepted it. Under the terms of the agreement, Martha was supposed to make an earnest money deposit of $10,000, but she only put down $5,000. Drake accepted the lesser deposit, and the sale was ultimately finalized. This is an example of ______.
Accepting partial performance
Rescinding the contract unilaterally
Suing for damages
Suing for specific performance
Which option describes a real property tax lien?
General and involuntary
General and voluntary
Specific and involuntary
Specific and voluntary
What is the source of law for real estate license laws?
Case law
Federal laws
State laws and regulations
US Constitutional law
Which of the following best describes a lease agreement?
A legally binding, written contract between a landlord and a listing licensee
A legally binding, written contract between a landlord and a tenant
A legally binding, written contract between a tenant and a buyer licensee
A legally binding, written contract between a tenant and a listing licensee
Apartment buildings are an example of what type of property?
commerical
industrial
residential
special purpose
Which of the following is the defining characteristic of a per se antitrust violation?
Boycotting
Collusion among the parties
No intent needs to be proven
Price fixing
If a party to a contract lacks legal capacity but enters into a contract anyway, which party may void the contract?
both parties
the broker
the party lacking legal capacity
the party possessing legal capcatiy
In Texas, the commission is responsible for preparing information outlining its purpose and duties. It must then make this information available to whom?
The longest-serving senator in Texas
The public
The U.S. Congress
The U.S. president
Rhonda is an unrepresented buyer who's purchasing Tony's townhome. Gary represents Tony in the sale of his property. What's Rhonda's relationship to Gary?
A client and fiduciary
A customer
A customer and client
A fiduciary
Which of the following could a listing agreement be considered?
A contract between a seller and a buyer
A cooperative agreement between two brokerage firms
An employment contract between a brokerage firm and a licensee
An employment contract between a licensee representing the brokerage company and a seller
Churches, schools, and cemeteries are examples of what kind of property?
Commercial
Industrial
Industrial
Special purpose
Which legal description method is regulated by the U.S. Department of the Interior's Bureau of Land Management?
Governmental
Lot and block
Metes and bounds
Metes and bounds
Which of the following would be something that could be improved by using funds from a special assessment tax?
Adding a new pool
Bathroom renovation
Kitchen remodel
Road repaving
Which of these might bring a charge of illegal steering against a licensee?
Benny screens the properties he shows his clients based on the clients' preferences.
Johnny is working with a client who has a disability. At the client's request, Johnny refrains from showing the client listings that aren't ADA accessible.
Norton encourages his clients to contact local agencies to learn more about a neighborhood's schools, crime rates, and religious institutions.
When working with single female clients, Cassandra is careful to promote properties in neighborhoods she considers safe.
Sean had been showing homes to potential clients, Amy and Chris Williams, for weeks before the couple finally agreed to sign a buyer agency agreement with him and acknowledge him as their agent. What type of agency is this considered?
Agency by acknowledgement
Agency by delay
Agency by proxy
Agency by ratification
What age does a person become eligible for real estate licensure in Texas?
16 years
18 years
20 years
21 years
Datums and benchmarks are used for ______.
Calculating area
Determining land acquisition costs
Measuring distance
Measuring elevations
What pre-licensing education must an applicant for an initial sales agent license in Texas complete?
Six 30-hour courses of qualifying education
Three 30-hour courses and two 4-hour legal update courses
Three 30-hour courses of qualifying education
Two 90-hour courses of qualifying education
What type of water rights are granted to landowners whose land borders closed bodies of water, such as lakes or the ocean?
Doctrine of appropriation
Groundwater
Littoral
Riparian
If the land is described as “Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds,” what type of legal description is being used?
Lot and block
Metes and bounds
Monument system
Rectangular government survey system
James is a real estate licensee in Texas. A complaint has been filed through the TWCCRD against James for a fair housing violation. Which of the following is true?
James could be fined, but will definitely keep his license.
James could be sanctioned by both the TWCCRD and the Real Estate Commission.
The TWCCRD cannot impose monetary penalties for fair housing violations.
The TWCCRD could revoke James’ real estate license.
The ESAC does which of the following?
Administers real estate licensing exams.
Implements rules for real estate education.
Implements rules for the Texas Real Estate Commission.
Makes recommendations for improvements to real estate education.
Which of the following statements is true regarding community property rights and property ownership?
All property purchased before the marriage and owned individually must be sold. The profits are divided equally between the partners.
All property purchased before the marriage automatically comes under the community property rights requirement.
Any property purchased before the marriage must have the spouse as the beneficiary should the owning partner die.
Both partners may own other properties purchased before the marriage separately (in severalty), but any properties purchased during their marriage are owned equally.
What type of buyer would be most attracted to a single-family dwelling?
An older retired person
A traveling salesperson
A young couple planning a family
Middle-age empty nesters
Jenna's closing agent has asked her to get a spot survey of the property she's purchasing. What will this accomplish for Jenna and the closing agent?
It decides the location of the point of beginning.
It notes the location of major appliances and features inside a home.
It notes the location, size, and shape of any improvements on a property.
It’s provides a sketch based upon driving by the property.
Jayne was tired of waiting for her subcontractor to get his part of the deal done. The agreed-upon deadlines came and went, and Jayne lost money waiting for the subcontractor to come through. She decided that if the subcontractor weren’t going to honor his commitments, neither was she, so Jayne consulted with her attorney and then terminated the contract. This is an example of ______.
Accepting partial performance
Mutually rescinding the contract
Rescinding the contract unilaterally
Suing for damages
Homestead exemptions ______ property taxes for all homeowners by protecting a certain amount of a Texas home’s value from tax.
Credit
Decrease
Increase
Nullify
In Texas, when is a licensee required to provide an agency disclosure to the party they are not representing in a transaction?
When delivering an offer for a specific property
When determining a listing price for a specific property
When engaging in substantive dialogue about a specific property
When entering into an agency agreement
Joshua won his lawsuit against Savannah. The judge awarded him $30,000. Savannah was unable to pay, so the court placed a ______ on her home.
Foreclosure action
Judgment lien
Lis pendens
Mortgage lien
What are deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision called?
Developer standards
New build standards
Restrictive covenants
Restrictive standards
Justin decided to build a privacy fence around his yard. He thought the fence was along the property line, but it turns out he built it one foot inside his neighbor’s property. What will an inspector document as existing on the neighboring property?
Easement
Eminent domain
Encroachment
Necessity
Can sales agents defer their continuing education (CE) requirements if they don't complete their continuing education prior to renewal?
No, sales agents must complete their CE prior to renewal.
No, sales agents must take additional education once their license expires.
Yes, sales agents may defer completion of CE for 60 days.
Yes, sales agents may defer completion of CE for 6 months.
What are the duties, such as confidentiality, obedience, and reasonable skill and care, owed by an agent to clients?
Consumer
Customer
Fiduciary
Universal
The duty of ______ requires licensees to provide both clients and customers with quality, knowledgeable, and prudent service, and live up to the trust placed in them.
Confidentiality
Loyalty
Obedience
Reasonable skill and care
Which of the following actions can licensees take related to signs?
They can only place signs on property they own.
They can place signs on an owner's property with the owner's written consent.
They can place signs on properties for which they are the listing agent, with or without the owner's permission.
They can't place signs anywhere.
Which of the following is NOT recommended during a downcycle?
Increase your advertising.
Spend your commission checks.
Use money that you’ve set aside.
Work on other projects.
DeeAnna thought she purchased an investment property, but the seller refused to deliver the title to her. DeeAnna met all of her obligations per the written contract she and the seller signed. She decided to take the seller to court in an effort to force him to hand over the title. This is an example of ______.
Accepting partial performance
Rescinding the contract unilaterally
Suing for damages
Suing for specific performance
What is a special flood hazard area?
A basement
An area where flood insurance is mandatory
Areas that have flooded in the last two years
A sloped property
Jared, a seller, has found his own buyer and wants to terminate his exclusive right-to-sell listing agreement with Sue, his listing broker. Can he do so without penalty?
No, because listing agreements may not be terminated until they expire.
No, because sellers may not sell their own listings.
No, because the listing agreement is contractually binding.
No, because this would be a conflict of interest.
Clarisse, your client, is a traveling salesperson. What type of housing would she likely prefer?
Condominium, for its easy living
Condominium, for its higher cost
Single-family, because it costs less
Single-family, for its flexibility
What does the registration of an assumed business name with the secretary of state or county clerk's office in Texas show?
That the broker has copyright protection for the assumed business name
That the broker has passed a background check for the assumed business name
That the broker has the legal authority to use that name
That TREC has approved the assumed business name for use in Texas
When does a seller’s market occur?
When both supply and demand are high
When both supply and demand are low
When supply is high and demand is low
When supply is low and demand is high
What's the purpose of testing for discrimination?
To create revenue through fines
To educate the public
To punish blatant discrimination
To uncover hidden discrimination
To what properties does the Texas seller’s disclosure of property condition law apply?
All properties
All property transfers
All residential properties
All single-family residential properties
Early in its history, the Federal Housing Administration officially supported keeping “incompatible” racial groups out of the newly developed white suburbs. What is this practice known as?
Blockbusting
Consolidating
Redlining
Steering
When both supply and demand increase, what does price do?
Decreases
Exceeds demand
Increases
Stays the same
Mike and his buddy Daryl own a business together. They are jointly and separately liable for any debts the business may incur. What type of partnership do Mike and Daryl have?
Dual partnership
General partnership
Joint liability partnership
Limited partnership
How should you respond if your buyer says the following? “We’re looking for a three-bedroom, two-bathroom home. We have young children, so we want to make sure we’re in a good neighborhood—somewhere safe, where we’ll find a lot of good families and neighbor kids that we’d want our children to play with."
“I can screen neighborhoods based on good school districts for you. That usually means you’ll end up in the kind of neighborhood you want.”
“If you provide me with specific kinds of people you want to avoid, I can screen the properties more closely.”
“If you provide me with specific neighborhood names, I can certainly look for homes in those areas. You can learn about the different neighborhoods in the area at neighborhoodscout.com.”
“Let’s keep this off the record. We just need to make sure it all looks legitimate from the outside.”
Jarod bought a home in which he has all the rights of ownership, including the right to sell and to convey the property to heirs at his death. What type of fee simple estate is this?
Fee simple absolute
Fee simple defeasible
Fee simple determinable
Fee simple subject to a condition
To calculate property taxes, multiply the ______ by the tax rate.
Amount of mortgage interest
Assessed value
Market value
Square footage of the property
Office buildings, shopping centers, and hotels are examples of ____________ properties.
Commercial
Industrial
Residential
Special purpose
The mixing or combining of escrow funds and non-escrow funds is called ______.
A savings account
Commingling
Fund combination
Responsible accounting
Layla, a licensee, has had a few casual meetings with a potential client, Marcus. Marcus has told Layla the type of home and locations he's interested in. Layla has mentioned a few homes that she thinks Marcus might be interested in. Although Layla hasn’t said that she will continue to look for homes for Marcus, Marcus believes she'll do just that. Which of these statements about this situation is correct?
Because Layla doesn't know if Marcus is working with another agent, she's just inadvertently created a dual agency situation.
Because Layla has performed some agency tasks for Marcus, she has an express agency agreement with him.
Layla and Marcus have no agency agreement, either express or implied, until Layla begins showing Marcus homes.
Layla's actions may have created an implied agency agreement with Marcus.
The examination requirement for an applicant for a broker or sales agent license in Texas is waived if:
The applicant completes the education requirement.
The applicant meets the experience requirement.
The applicant submits to a criminal background check.
The applicant was previously licensed in Texas as a broker or sales agent (and the license expired less than six months previously).
What is a sketch that shows the location, size, and shape of any improvements on a property being surveyed?
Building plan
Legal description
Plat reference map
Spot survey
Which of the following best describes a listing agreement?
A legally binding, oral contract between a property seller and a listing agent
A legally binding, oral contract between a property seller and a listing broker
A legally binding, written contract between a property seller and a buyer broker
A legally binding, written contract between a property seller and a listing broker
How is equity calculated?
Add home value to loan balance
Divide loan balance by home value
Multiply home value by loan balance
Subtract loan balance from home value
Both the buyer and the seller have to sign the purchase and sale agreement in order to demonstrate that ______.
An attorney has reviewed the contract
Their agents have agreed to the terms and conditions
The very first offer was accepted
They understand the terms
Lance purchased a home, but he won’t own any real estate—just shares in a corporation. This is because his new home is ______.
A condominium
A cooperative
A townhouse
A triplex
The ESAC makes recommendations for improvements to real estate education to the ______, which is tasked with implementing the new standards.
National Association of REALTORS®
Texas Legislature
Texas Real Estate Commission
U.S. Congress
Which area of real estate law covers what's required of a licensee when performing real estate activities within the state, including license law, continuing education requirements, supervisory requirements, and prohibited conduct?
General property law
Law of agency
Real estate license law
The law of contracts
Which of the following is an example of price fixing?
A brokerage requires all licensees to offer a fair cooperative brokerage fee.
Three brokerages agree to purchase office supplies together to obtain a bulk discount.
Three brokerages determine a standard commission rate.
Three brokerages discuss the compensation of associated independent contractor licensees.
Police power is the government’s authority at what level(s)?
At any level
Federal only
Local only
State only
Which of the following is an example of special purpose real estate?
Church
Office building
Orchard
Shopping center
What must be submitted with a real estate license application in Texas so a criminal background check can be performed?
Credit report
Fingerprints
Passport
State ID
Real estate sales contracts must be valid, express, bilateral, ______, and executed or executory.
Enforceable
Oral
Unenforceable
Voidable
The residents of Blair Avenue are a close-knit bunch. They’re all young couples with small children, and they don’t want this dynamic to change when two of the couples have to move. Those couples sign an agreement promising not to sell to anyone without kids or to anyone over the age of 50. The contract can't be enforced because it's missing ______.
Consideration
Legally competent parties
Legal purpose
Offer and acceptance
Generally speaking, all Texas brokers have a responsibility to _____ trust funds.
Accept
Handle
Hold
Safeguard
Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided?
Barbie and Midge each own 50%.
Barbie and Skipper each own 50%.
Barbie, Midge, and Ken’s heirs each own one-third.
Barbie owns two-thirds, and Midge owns one-third.
What is the maximum payment amount for a claim from the Recovery Trust Account for a single transaction?
$10,000
$100,000
$5,000
$50,000
The Simpsons are buying a five-acre lot that was part of a much larger tract of acreage. When the owners of the large acreage decided to subdivide it, they needed to have a legal description created for the five-acre lot. What was used as the starting point for creating that legal description?
A benchmark
A plat map
A survey
Metes
Because of the topography of Elsie’s and Lawrence’s respective yards, Elsie had to install her fence at the top of a hill, which is actually two feet over Lawrence’s property line. What word or phrase best describes Elsie’s fence?
Easement in gross
Encroachment
Servient estate
Visible easement
Eva, Stella, and Lynn owned a vacation home two blocks from the beach. Sadly, Stella passed away over the winter, so when summer arrived, Eva and Lynn shared the home with Stella’s nephew Drew, to whom Stella willed her share of the property. What type of ownership is this?
Estate in severalty
Joint tenancy
Tenancy by the entirety
Tenancy in common
For the benefit of whom does the Recovery Trust Account exist?
The account is established for the benefit of agents who didn’t sell any properties in the previous year to assist them with business expenses for the following year.
The account is established for the benefit of brokers and their commission payments.
The account is established for the benefit of the public.
The account is established to pay the members of TREC annual compensation.
What phrase do many real estate contracts contain that reminds the parties to avoid unnecessary delays to the transaction, and to adhere to all contract dates?
Haste makes waste
Patience is a virtue
Seek the advice of an attorney
Time is of the essence
Which of the following constitutes fraud in real estate according to the Fraud in Real Estate and Stock Transactions Statute?
A buyer agent speculates as to the condition and age of a roof on a home her clients are interested in.
A listing agent forgets to post a copy of the seller’s disclosure notice on the MLS.
A listing agent purposely fails to mention the structural damage caused by a recent electrical fire in the wall.
A seller promises to leave certain personal items, and then changes her mind prior to closing.
Regular mortgage financing is available for this type of housing.
Manufactured home
Mobile home
Modular home
Triple wide
