Principles of Real Estate 1- Champions Quiz

Contracts with a person who lacks mental capacity can be

Contracts with a person who lacks mental capacity can be

either void or voidable

Community property is a concept of

Spanish law, and marriage is regarded as a partnership.

Intermediary Without Appointments.

an agent will have the opportunity to sell their own listing.

Oil and gas companies employ

a large number of individuals with a real estate background.

The NFIP

offers flood insurance

The NFIP offers flood insurance to

homeowners, renters, and business owners

The vast majority of homes built in the United States are

site built.

When a condominium is sold, three interests are created:

fee simple ownership of the unit, fee simple ownership in an undivided interest in the common areas, and an easement to the airspace occupied by the unit.

The Bureau [CFPB] is responsible for enforcing

federal consumer financial law

To convert 152,460 square feet of land:

152,460 / 43,560 = 3.5

Exclusive agency agreements

list their properties with a broker, primarily to expose their properties through the multiple listing service

Easements may be created by

grant, reservation, implied grant, prescription, necessity, condemnation.

The Texas Real Estate Commission consists of

of nine members and three members who represent the public.

cooperative sale with single buyer representation

If the buyer purchases a property listed by another firm

If the buyer purchases a property listed by another firm,

The listing firm represents the seller, and the selling firm represents the buyer

Community property

marriage is regarded as a partnership.

Mutual Consent

Offer and Acceptance

An estate in severalty

involves ownership of real estate by one individual or entity.

Real estate brokers recommend this listing

grants an exclusive right to sell the property during the listing term.

exclusive right to sell

A commission is paid even if the property is sold by the owner

TREC has promulgated sales contract forms for most residential properties including

One-to-Four Family Residential Contract (Resale), New Home Contract (Incomplete Construction), New Home Contract (Completed Construction), Unimproved Property Contract, Residential Condominium Contract (Resale), Farm and Ranch Contract.

Liens can be

specific or general

Violation of the law is

a civil offense

Passed in 1973

DTPA allows an aggrieved consumer to sue a seller of goods for damages

Units in a cooperative

are most often owned by a corporation

Indestructibility, a physical characteristic of land, is also known as:

Durability

A professional association whose local affiliates own and operate MLS systems throughout the United States is the:

NAR

Appraisal is the business of:

Providing a professional opinion of the value of real property

The least important factor affecting demand for real estate is

Personal preference

Air rights are commonly leased or conveyed in

Cell tower leases, Condominiums, Outdoor advertising

Rights that are associated with the ownership of real property are often referred to as the owner's:

Bundle of rights

Surface, subsurface and air rights are said to be

Severable

If a tenant fails to remove trade fixtures from the leased premises, the fixtures become the property of the landlord through:

Accession

Effective in 1976, manufactured homes have been built according to a building code administered by:

HUD

Townhomes and single-family homes differ in that ______a common wall

townhomes share

Homeowners insurance can protect the policyholders from unexpected losses, including:_______.

fire, vandalism, and personal liability

Which of the following is not a factor that can affect insurance premiums

Policyholder's age

Most standard homeowners insurance policies do not generally cover damage from _________

Flooding

Most windstorm insurance in Texas is underwritten by ___________.

TWIA

In real estate, a buyer or seller is considered an agent's customer until he or she becomes a(n) ______.

client

The agreement between a broker and a client is most often a(n) __________ agency relationship.

Special

The broker and his or her associates are most often in a(n) __________ agency relationship

General

A(n) ______ relationship exists when one person acts on behalf of another person from whom he has derived authority.

Agency

The _____ is used to provide agency information to consumers.

IABS forms

The practice of directing buyers or renters to or away from a particular area based upon a protected class is known as:

Steering

Attempting to induce panic selling in a neighborhood for financial gain is known as

Blockbusting

When it comes to a building having a "no pets" policy, allowing a visually impaired tenant to keep a guide dog is ____.

legal because allowing a guide dog is a reasonable accommodation

The outcome of a complaint investigation by TREC may result in probation and/or

A fine, A reprimand, License suspension or revocation

The primary duty of a license holder is to represent the interests of __________

The client

Competency

_________describes the obligation of a license holder to be knowledgeable as a real estate brokerage practitioner.

When it comes to competency, it is best described as the duty of a license holder to ______

exercise skill and judgment in the performance of his work

Consumer Protection Notice CN 1-2

All real estate brokers and inspectors must display, in a prominent location the:

Competence is the obligation of a real estate agent to:

Be informed on conditions affecting the real estate market, Be involved in continuing education courses in topics regarding real estate, Exercise judgment and skill in the performance of his or her work

Which of the following is required to obtain a real estate license in Texas?

An applicant must show competency by passing the exam, An applicant must be a resident of Texas at the time of application, and An applicant must be of good moral character

When filing a complaint against a license holder, a consumer has ______ from the date of the incident to file a complaint with TREC.

4 years

The commission shall maintain a recovery trust account that _____.

protects consumers who suffer a loss due to illegal acts of license holders, has two maximum payment amounts - $50,000 and $100,000 and is funded by license holders and applicants

A ___________ determines legal property boundaries for property ownership.

Land Survey

A legal description that contains the words "Beginning at a point" is a

Metes and bounds description

One acre of land contains

43,560 square feet

A contract for the purpose of performing an illegal act is ___________.

Void

A contract has been signed and acceptance has been communicated. Prior to closing, the contract is a(n) ___________contract.

Executory

A contract created by behavior is known as a/an

Implied contract

Which of the following is often referred to as a "meeting of the minds"

Mutual consent

In order to be valid, a lease must have which of the following requirements?

Competent parties (lessor and lessee), Consideration (rent), Legal purpose

Eminent domain

The right of the government to take privately owned land for public use is called ________

easements

Releases can terminate ________

Executory

Which of the following is not one of the categories of estates

Always an estate of inheritance

Fee simple ownership is:

S Corporation

A form of corporation that is taxed much like a partnership is the ___________.

Community property

Jill and Adkins are married and live in Texas. They saved for a number of years and purchased a home. In this case, the form of ownership is most likely to be:

A trust that is created under the terms of a will is a(n) _____________ .

Testamentary trust

Tenancy in common

A property is owned by two unmarried individuals without right of survivorship. The form of ownership is most likely:

Dwayne, because he is a joint tenant

Dwayne and Beth, each single persons, own a parcel of land as joint tenants. Beth has a will leaving her entire estate to her brother, Jason. Upon Beth's death, her interest in the land passes to:

Open Listing

Seller Steve listed his property with City Realty, Acme Realty and Countrywide Realty all at the same time. After signing the listing agreements, Steve continued to run for sale by owner ads on Craigslist. The type of listing agreement Steve signed with the various companies is a(n):

There is no standard rate. Different brokers charge different fees. Our fees are based upon the following services...

While listing the property with you, the seller asks "Who sets real estate commission rates?" The correct response would be:

The listing agreement is unaffected because it is an agency agreement between Seller Sam and the broker.

Julie, a salesperson at Acme Realty, obtained a listing on Seller Sam's property on Oak Street. The following week, Julie was found to be mentally incompetent and was admitted to the state mental hospital in Rusk. Given Julie's unfortunate status, what is the effect on the listing with Seller Sam?

Exclusive Right to Sell

The type of listing agreement that affords the broker the greatest protection is the

Sherman Anti-Trust Act

Any attempt by competing brokers to fix commission rates in a given market area would be a violation of:

Listing agreements are terminated on the termination date.

Which of the following statements about listing agreements is TRUE?