Font size
WorksheetsReal Estate Exam Prep
Total questions: 56
Worksheet time: 32mins
Application Questions in the exam require applying theoretical knowledge to practical scenarios.
They require applying theoretical knowledge in practical scenarios.
They are based on rote memorization.
They involve only recalling information.
They consist solely of multiple-choice questions.
What is the term used to describe rights, privileges, or improvements that belong to and pass with the land?
appurtenances
encumbrances
easements
fixtures
The purpose of a legal description in real estate is to accurately define and locate property boundaries.
To accurately define and locate property boundaries
To provide mortgage loan rates
To ensure proper property taxation
To improve interior design
Fill in the blank: An easement in gross belongs to a person or _______.
corporation
government
individual
organization
How could an individual get title to real property without a deed?
By adverse possession
Through inheritance
By using a quitclaim deed
By court order
The four unities required for joint tenancy are:
Time, Title, Interest, and Possession
Time, Title, and Possession
Time, Interest, Possession, and Liability
Title, Interest, Possession, and Mortgaging
What is a time share?
A lease that is automatically renewed unless the tenant or landlord acts to terminate it is known as a ____.
periodic tenancy.
fixed-term tenancy.
lifetime tenancy.
sub-tenancy.
Which type of lease gives a tenant the right to purchase at a future date?
Lease with an option to buy
Ground Lease
Net Lease
Gross Lease
What is the penalty for practicing real estate without an active license in Texas?
Jail time for up to one year and a fine of up to $4,000, plus the potential for administrative penalties.
A fine of $5,000 for the first violation and $6,000 for each subsequent violation
The individual is required to reimburse any compensation received for performing real estate activities.
Jail time of up to five years and a fine for each incident of up to $10,000.
Which of these is a minimum duty that a real estate agent must provide to a client?
Put the interests of the client above all others, including the broker’s own interests.
Meet the client's expectations for finding a buyer or locating a property.
Provide quality services that are worthy of the compensation earned
Negotiate an offer to ensure the highest price paid for a seller and the lowest possible offer accepted for a buyer.
Harry is a new sales agent associated with sponsoring broker Marvin. What does TREC require Marvin to give Harry?
A written statement describing the scope of Harry's authorized activities under TRELA.
Appointment as a licensee to at least three seller clients within the first month of Harry's employment.
An assigned mentor who can guide Harry through the first six months of his role as sales agent.
An independent contractor agreement that defines how Harry and Marvin will work together.
Unlicensed personnel at the brokerage office may perform all of the following duties EXCEPT:
Show a property to a prospective buyer.
Confirm previously advertised information about a particular property in response to a consumer’s inquiry.
Call a client and schedule an appointment for the agent to bring a potential buyer to see the home.
Assist in arranging financing for a consumer under the direction of a licensee.
What's NOT true about TREC-approved forms for use in real estate transactions?
The available contracts include purchase agreements, listing agreements, and buyer brokerage agreements
They're available for anyone to use.
Licensees are required to use them in most situations.
Licensees are not considered to be practicing law when they fill in the blanks in an approved contract form.
Sales agent Dixie's buyer client refuses to use the TREC-approved contract to make her offer. She insists on using a form she prepared herself. What can Dixie do?
Accept the client's decision to use her own form
Terminate her listing agreement on the basis of the client's breach of contract.
Hire an attorney to draft the purchase offer on the client's behalf
Ask the seller's agent to draft a counter offer.
Which of these licensees should use the Amendment to Contract form?
George needs to change the executed contract to reflect the repairs to the electrical system his seller client has agreed to make.
Randy's buyer made an offer on a property that is already under contract.
Linda's client wants to extend their listing agreement.
Don's seller client has decided not to sell the property after all, and wants to terminate the purchase contract.
Which of these transfers of residential property requires the Seller's Disclosure Notice?
Riana buys a fixer-upper that's been sitting vacant since the owner moved out six months ago.
Tim transfers his share of the property to Dana as part of their divorce settlement.
The Smiths transfer their home to a local government agency for use as a halfway house.
Sam purchases a house at a foreclosure auction.
Which of these seller disclosures appears in the TREC-approved One to Four Family Residential Contract (Resale) form?
The possibility of annexation if the property is located outside the limits of a municipality
The possibility of condemnation if the property is located within an incorporated town or city.
The possibility of property damage or destruction from natural forces such as floods, wind, and earthquakes.
The possibility of environmental degradation resulting from the effects of climate change.
Drew and Stella just bought their first house as a married couple. How will they most likely hold title to the property?
Community Property
Tenancy in common
tenancy by entirety
joint tenancy
What's the purpose of the TREC-approved Short Sale Addendum?
To create provisions related to the lienholder's consent to the sale.
To disclose to the buyer that the property is a foreclosure and the title has no warranty.
To notify the buyer that the seller has a right of redemption for six months after closing.
To disclose to the mortgagee that the price of the property will not satisfy the full mortgage debt remaining on the property.
Which of these statements does NOT describe the Texas Veteran's Land Program?
It's a low-interest loan that requires no down payment.
It's administered by the Veteran's Land Board.
It's available only to eligible veterans.
It offers loans for property of at least one acre.
Beatrice's billboard ads proclaim "I'm one of the top five agents in the entire metropolitan area!" What makes her statement legal?
She includes a footnote that her ranking is based on data collected by a local marketing organization.
It's not something a reasonable person would be persuaded by, so it's considered legal puffery.
She includes her broker's name on the ad.
The statement is factual and she can provide the source for the information if asked to do so by a consumer.
Josh is a sponsoring broker acting as an intermediary in a transaction. He appoints two licensees to work with the parties to the transaction. What are the duties of the appointed licensees?
To work with and advise the party to whom that licensee is appointed.
To be an intermediary between Josh and the party to whom the licensee is assigned.
To negotiate the transaction with the other appointed licensee without giving either party to the transaction advice or opinions.
To perform ministerial duties, but not fiduciary duties, for their appointed clients.
Sales agent Irving pays his unlicensed assistant Tiana to show a property while Irving is assisting another client. Is this an appropriate use of Irving's assitant?
No, Tiana may not show a home and both Irving and Tiana may be disciplined by TREC.
o, although Tiana is not liable for performing activities requiring a license since she was directed by a licensee
Yes, this an acceptable use of an unlicensed assistant under the direction of a licensed person.
Yes, an unlicensed person is allowed to show a property to a person who made the appointment through a licensee.
Where in the TREC-approved purchase contracts will you identify any addenda that are included with the contract?
In the "Agreement of parties" provision.
In the "Notices" provision.
In the "Representations" provision.
In the "Special provisions" provision.
Buyer Norm has a single-family home under contract. He hasn't yet received the Seller's Disclosure Form. What are his rights in this situation?
If he receives the disclosure now, he can terminate the contract within seven days.
He can terminate the contract at any time prior to closing, even if the seller delivers the disclosure now.
He can terminate the contract, but he will lose his earnest money.
He's obligated to perform under the contract, but he may file suit to recover the sale price after closing.
What's NOT true about a foreclosure in Texas?
The homeowner has a right of redemption for six months after the property transfers to the new owner.
The property is sold at auction to the highest bidder.
If proceeds from the sale are insufficient to pay all lienholders, the liens are extinguished.
Creditors have a right to pursue a deficiency judgment after the foreclosure sale.
As an associated sales agent, what is your responsibility when handling an earnest money deposit?
You must give the client's earnest money to your broker immediately.
You must give the client's earnest money to your broker within two business days of receipt.
You must deposit the client's earnest money in the brokerage trust account immediatel
You must hold the client's earnest money securely until the transaction closes.
Texas sales agent Dan wins a new listing after a former client gives his name to the seller. When the transaction closes, Dan shares a percentage of his commission with the former client as a thank you. What's true about this situation?
Dan has violated the standards of conduct by sharing his commission with an unlicensed person.
Dan should have asked his sponsoring broker to give the earnings to his former client instead of paying him directly.
Dan is required to disclose any commission-sharing to all parties to the transaction.
Dan must document the compensation on the appropriate TREC-approved form.
Buyer's agent Pru tells her clients that she'll give them a cash rebate if they successfully close on the $200,000 home they offered for. What must happen to make Pru's action legal?
She must obtain written consent for the rebate from her client and her sponsoring broker.
Her rebate may not have a value higher than 1% of the sale price.
Her rebate may not have a value higher than 1% of the sale price.
Rebates are never legal in Texas.
Which of the following is a lien on real estate?
Recorded easement
Recorded mortgage
Encroachment
Deed restriction
A sales contract was signed by a minor. Which term describes this contract?
Voidable
Breached
Discharged
Void
A real estate professional receives a check for earnest money from a buyer & deposits the money in the real estate professional's personal interest-bearing checking account over the weekend. This action exposes the real estate professional to a charge of
commingling.
novation.
subrogation.
accretion.
A borrower takes out a mortgage loan that requires monthly payments of $875.70 for 20 years & a final payment of $24,095. This is what type of loan?
Wraparound
Accelerated
Balloon
Variable
If a borrower computed the interest charge for the previous month on a $260,000 loan balance at $1,300, what is the borrower's interest rate to the nearest half percent?
6%
6½%
5%
5½%
A real estate professional signs a contract with a buyer. Under the contract, the real estate professional agrees to help the buyer find a suitable property & to represent the buyer in negotiations with the seller. The buyer may not sign an agreement with any other real estate professional. What kind of agreement has this real estate professional signed?
Exclusive buyer listing agreement
Exclusive buyer representation agreement
Open buyer agency agreement
Option contract
A grantor conveys property by delivering a deed. The deed contains five covenants. This is MOST likely
a general warranty deed.
a quitclaim deed.
a bargain & sale deed.
a deed in trust.
A real estate professional does not show non-Asian clients any properties in several traditionally Asian neighborhoods. The real estate professional bases this practice on the need to preserve the valuable cultural integrity of Asian immigrant communities. Which statement is TRUE regarding the real estate professional's policy?
The real estate professional's policy is steering & violates federal & state fair housing laws regardless of motivation.
Because the real estate professional is not attempting to restrict the rights of any single minority group, the practice does not constitute steering.
The real estate professional's policy is steering, but it does not violate the fair housing laws because cultural preservation is the motive, not exclusion or discrimination.
The real estate professional's policy has the effect, but not the intent, of steering.
A women grants a life estate to her son-in-law & stipulates that, upon his death, the title to the property will pass to her grandson. The grandson's interest is known as
a remainder.
a reversion.
an estate at sufferance.
an estate for years.
A primary benefit of property held in joint tenancy is
ownership by a maximum of two people.
the fractional interest of the owners, which can be different.
the fact that additional owners may be added later.
the right of survivorship.
A licensed real estate sales associate has a written contract with the employing broker that specified that the sales associate will not be treated as an employee for federal tax purposes. The sales associate's entire income is from sales commissions rather than an hourly wage. Based on these facts, the sales associate will be treated by the IRS as
a real estate assistant.
an employee.
a subagent.
a qualified real estate agent.
The states in which the owner gives up legal title of mortgage real estate are known as
title theory states.
lien theory states.
statutory title states.
strict title forfeiture states.
The form of tenancy that will expire on a specific date is
a joint tenancy.
a tenancy for years.
a tenancy at sufferance.
a tenancy by the entirety.
A large home that lacks sufficient indoor plumbing suffers from which condition?
Functional obsolescence
Curable physical deterioration
Incurable physical deterioration
External obsolescence
A developer built a structure that has six stories. Several years later, an ordinance was passed in that area banning any building six stories or higher. This building is
a nonconforming
a situation in which the structure would have to be demolished.
a conditional use.
a violation of the zoning laws.
Assuming that the listing agent & the selling agent in a transaction split their commission equally, what was the sales price of the property if the commission rate was 5.5% & the listing agent received $12,584?
$228,800
$242,871
$457,600
$692,120
A real estate broker specializes in helping both buyers & sellers with the necessary paperwork involved in transferring property. Although not an agent of either party, the broker may not disclose either of either party's confidential information to the other. The broker is BEST described as
a buyer's broker.
an independent contractor.
a dual agent
a transaction broker.
Three women owned a house as joint tenants. In the year 2009, one died. Last month, another died. Based on these facts, which of the following correctly describes the remaining women's ownership interest in the house?
Joint tenancy
Tenancy in common with the deceased owner's heirs
Severalty
Partitioned tenancy by the entirety
The listing & selling broker's agree to split a 7% commission 50-50 on a $295,900 land sale. The listing broker gives the listing sales associate 50% of the listing broker's share, & the selling broker gives the selling sales associate 65% of that share. How much does the selling sales associate earn from the sale after deducting expenses of $1,300? Round your answer to the nearest cent.
$5,178.00
$5,431.73
$6,731.73
$10,356.50
Police powers include all of the following EXCEPT
zoning.
deed restrictions.
building codes.
density requirements.
A seller wants to net $165,000 from the sale of a house after paying the broker's fee of 6% & other closing cost of $2,635. The seller's gross sales price will be
$152,465.
$152,623.
$174,900.
$178,335.
Three acres equals how many square feet?
43,560
130,680
156,840
27,878,400
A buyer is purchasing a condominium uni in a subdivision & obtains financing from a local bank. In this situation, which term BEST describes the buyer?
Vendor
Mortgagor
Grantor
Lessor
The current value of a property is $140,000. The property is assessed at 40% of its current value for real estate tax purposes, with an equalization factor of 1.5
1
1
The airspace above the land is also the part of real estate.
True
False
Which of the following can be a real estate?
Land
Apartment Building
Shopping Mall
All of the above
