Principles of Real Estate 1- Champions School of Real Estate

a freeway has made commuting to a distant suburban neighborhood easier, resulting in an increase in new home sales. This increase in sales is an example of the economic characteristic of
A.) scarcity
B.) Fixity
C.) Situs
D.) Modification

a freeway has made commuting to a distant suburban neighborhood easier, resulting in an increase in new home sales. This increase in sales is an example of the economic characteristic of
A.) scarcity
B.) Fixity
C.) Situs
D.) Modification

D.) Modification

The supply of Real Estate is affected by
A.) Land cost
B.) Building codes
C.) Government regulations
D.) All of these

D.) All of these

The least important factor affecting demand for real estate is:
A.) Population Growth
B.) Personal Preference
C.) Availability of Credit
D.) Transportation Systems

B.) Personal Preference

A lawsuit was tried on a real estate matter. The judge ruled in the case, citing the decision of a judge in a similar case that was tried ten years ago. The judges decision in the case was most likely based upon:
A.) Statutory Law
B.) Civil Law
C.) Common Law
D.) Local ordinance

C.) Common Law

A license holder was tried in a state district court on a complaint arising from a real estate transaction. The court ruled that, among other transgressions, the defendant had violated the Texas Real Estate License Act. This decision of the judge was based upon:
A.) Statutory law
B.) Civil Law
C.) Common Law
D.) Local Ordinance

A.) Statutory Law

RMLOs in Texas are licensed through:
A.) Texas Real Estate Commission
B.) National Mortgage Bankers Association
C.) Texas Department of Savings and Mortgage Lending
D.) Texas savings and loan board

C.) Texas Department of Savings and Mortgage Lending

A Freeway has made commuting to a distant suburban neighborhood easier, resulting in an increase in new home sales. This increase in sales is an example of the economic characteristics of:
A.) Scarcity
B.) Fixity
C.) Situs
D.) Modification

D.) Modification

Air Rights are commonly leased or conveyed in:
A.) Cell tower leases
B.) Condominiums
C.) Outdoor Advertising
D.) All of these are correct

D) all of these

Building, roads and fences are all examples of:
A.) Personal Property
B.) Private Property
C.) Improvements
D.) Public Property

C.) Improvements

If a tenant fails to remove trade fixtures from the leased premises, the fixtures become the property of the landlord through:
A.) Remediation
B.) Adverse Possession
C.) Accession
D.) Descent

C.) Accession

Effective in 1976, manufactured homes have been built according to a building code administered by:
A.) Local building departments
B.) State code enforcement
C.) HUD
D.) FHA

C.) HUD

Homes that are built in sections according to local building codes and assembled on the job site are known as:
A.) Trailers
B.) Mobile Homes
C.) Modular Homes
D.) Site built Homes

C.) Modular Homes

Manufactured home dealers and sales people in Texas are licensed by:
A.) TREC
B.) The TDHCA
C.) The TALCB
D.) TRELA

B.) The TDHCA

Which of the following are considered personal property and may be harvested by the owner of the crop?
A.) Trade Fixtures
B.) Fixtures
C.) Severances
D.) Emblements

D.) Emblements

Lenders require _____ naming the lender as a ______ to protect their interest in the property.
A.) Insurance coverage, loss payee
B.) Coinsurance, trustor
C.) A Lien, Creditor
D.) Wind Insurance, Guarantor

A.) Insurance coverage, loss payee

By failing to maintain sufficient ______, the reduction of the payout of a claim may be reduced due to the coinsurance clause.
A.) fee simple ownership
B.) Capital gains tax
C.) Insurance coverage
D.) Personal liability

B.) Capital Gains Tax

Most standard homeowners insurance policies do not generally cover damage from ______
A.) Hailstorms
B.) Flooding
C.) Fire
D.) Theft

B. Flooding

Most windstorm insurance in Texas is unwritten by________.
A.) TWIA
B.) TDHCA
C.) TREC
D.) HUD

A.) TWIA

The NFIP offers _____ to homeowners, renters and business owners whose property is situated in a community that ordinances that meet or exceed FEMA requirements
A.) Fire and Smoke insurance
B.) Theft or vandalism insurance
C.) Flood insurance
D.) Electrical damage insurance

C.) Flood insurance

The _____ used by the insurance industry is the CLUE
A.) Claims history database
B.) Contents coverage database
C.) MLS state-wide rating system
D.) MLS

A.) Claims history database

By failing to maintain sufficient ______, the reduction of the payout of a claim may be reduced due to the coinsurance clause
A.) fee simple ownership
B.) Capital gains tax
C.) Insurance coverage
D.) Personal liability

C.) Insurance Coverage

A _____ relationship exists when one person acts on behalf of another person from whom he has derived authority.
A.) Agency
B.) Principal
C.) Client
D.) Broker

A.) Agency

The duties of a broker in a fiduciary relationships includes...
A.) budgeting
B.) Security
C.) Loyalty
D.) Trust

C.) Loyalty

The_____ is used to provide agency information to consumers
A.) Sellers Listing Agreement
B.) IABS form
C.) Employment Contract
D.) Buyer representation agreement

B.) IABS form

Whether it be a phone call, fax, email or in person, it is important to remember that____ must be disclosed at first contact
A.) Representations
B.) a signed sales contract
C.) the IABS form
D.) All of these

A.) Representation

The agency that is responsible for the enforcement of the federal consumer financial law is :
A.) CFPB
B.) TILA
C.) Federal Reserve
D.) HUD

D.) HUD

The _____ was passed to ensure that banks would serve the needs of a community in which they were chartered to do business.
A.) ADA
B.) ECOA
C.) CRA
D.) None of the above

C.) CRA

The ______ of 1968 does not offer protection for discrimination based on occupation.
A.) National Origin Act
B.) Federal Housing Civil Law
C.) Religious Persecution Act
D.) Civil Rights Act

D.) Civil Rights Act

Of the following building, which is not exempt from the ADA?
A.) School
B.) A private club
C.) historic building
D.) A single family home

A.) School

In housing discrimination based upon _____ has been violation of federal law since 1866.
A.) Economic status
B.) Race or color
C.) Gender
D.) Any of the Above

B. Race or Color

Advertisements that specify a gender preference are acceptable:
A.) Never
B.) Always
C.) When renting a single family residence
D.) When renting a shared living space

D.) When renting a shared living space

Attending designation courses such as the Accredited Buyers Representative course is a good way to demonstrate
A.) Integrity
B.) Fidelity
C.) Competency
D.) Perseverance

A.) Integrity

_______ decribes the obligation of a license holder to be knowledgeable as a real estate brokerage practitioner.
A.) Fidelity
B.) Competency
C.) Discriminatory practices
D.) Consumer information

B.) Competency

When it comes to competency, it is best described as the duty of a license holdeer to ______.
A.) represent the best interests of his client
B.) exercise skill and judgment in the performance of his work
C.) avoid misrepresentation
D.) All of the above

B.) Exercise skill and judgment in the performance of his work 7

The ____ is the largest trade organization in the United States
A.) BOMA
B.) NAR
C.) TREC
D.) AIA

B.) NAR

Which of the following statements regarding the National association of Realtors is FALSE?
A.) The term Realtors is a registered trademark
B.) NAR is Americas largest trade organization
C.) All real estate holders are Realtors
D.) All of these are False

C.) All real estate holders are Realtors

All real estate brokers and inspectors must display, In a prominent location the:
A.) TILA disclosure
B.) Consumer protection notice CN 1-2
C.) Information about Brokerage Services
D.) License Act

B.) Consumer protection notice CN 1-2

To obtain a Texas real estate license it is not a requirement to ____.
A.) be a US citizen
B.) submit fingerprints to TREC
C.) be 18 years or older
D.) comply with legal residency requirements

A.) Be a US citizen

In TREC's real estate recovery trust account there is a transaction maximum of _______ on behalf of any one license holder
A.)$100 Million
B.) $50,000
C.) $3.5 Million
D.) $100,000

D.) $100,000

TREC may suspend or revoke a license for any of the following reasons EXCEPT:
A.) Commingling broker funds with client funds
B.) Selling real property by lottery
C.) Placing a sign offering property for sale of lease with written consent of the owner
D.) Acting in the undisclosed dual capacity of broker and seller within a single transaction

C.) Placing a sign offering property for sale of lease with written consent of the owner

TREC may assess an administrative penalty of up to $5,000 per day for violation of the License Act by:
A.) only license holders who violate the rules of TREC
B.) only brokers who violate the rules of TREC
C.) Any person in Texas, licensed or unlicensed, who violated the rules of TREC
D.) Any license holder, if a consumer complaint has been filed in writing

C.) Any person in Texas, licensed or unlicensed, who violates the rules of TREC

A ______ determines legal property boundaries for property ownership
A.) Land survey
B.) Topographic survey
C.) Seismic survey
D.) Green survey

A.) Land Survey

A legal description that contains the words "beginning at a point"is a:
A.) Lot and Block Description
B.) Metes and bounds description
C.) Informal reference
D.) PLSS Description

B.) Metes and bounds description

Which of the following is not an acceptable legal description used in a deed?
A.) Lot and Block
B.) Metes and Bounds
C.) Street address
D.) Rectangular survey system

C.) Street address

A ______ might be required in a division of property between multiple owners.
A.) Bilateral contract
B.) monument
C.) unilateral contract
D.) survey

D.) survey

Which of the following is required for a lot and block description of a property?
A.) a point of beginning
B.) compass directions
C.) a recorded plat
D.) townships and sections

C.) a recorded plat

The concept behind the government survey system is the _______ of a grid on top of the land
A.) Overlay
B.) metes and bounds
C.) coordinates
D.) leaps and bounds

A.) overlay

Which of the following is not a requirement for a valid and enforceable contract?
A.) consideration
B.)Recording
C.) Mutual consent
D.) Competent Parties

B.) Recording

Which of the following is often referred to the "meeting of minds" ?
A.) Competent parties
B.) Consideration
C.) Specific performance
D.) Mutual consent

D.) Mutual consent

The Statues of Frauds is applicable to:
A.) contracts for the sale of real estate
B.) Listing agreement
C.) Buyer representation agreements
D.) All of the above

D.) All of the above

A consideration is defined as ____
A.) An offer
B.) a counteroffer
C.) a bribe
D.) something given in exchange for a promise

D.) something given in exchange for a promise

You can use the acronym _____ to remember the five essential elements of a valid and enforceable contract.
A.) COLIC
B.) COLLIE
C.) EOVEC
D.) OLDCAR

A.) COLIC

Which of the following is not one of the categories of estates?
A.) Freehold
B.) Executory
C.) Statutory
D.) Leasehold

B.) Executory

The right of redemption for homestead property sold at a tax auction in Texas is ____Years
A.) One
B.) Two
C.) Three
D.) Four

B.) Two

Fee simple ownership is:
A.) Always an estate of inheritance
B.) is ownership for the duration of someones life
C.) Voided if a condition is not met
D.) Not common in Texas

A.) Always an estate of inheritance

Which of the following is created when a lease expires and tenant remains on the premises?
A.) Holdout tenancy
B.) illegal tenancy
C.) Tenancy at sufferance
D.) periodic tenancy

C.) Tenancy at sufferance

Tree Limbs from your neighbors property that intrude onto yours are an example of:
A.) Encroachment
B.) Easement
C.) Appurtenance
D.) Encumbrance

A.) Encroachment

A form of corporation that is taxed much like a partnerships is the _____.
A.) C Corporation
B.) S Corporation
C.) Limited Corporation
D.) CS Corporation

B.) S corporation

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.) Separate property
B.) joint property
C.) Community property
D.) Tenants in common

C.) community property

The easiest form of organization that gives one individual the greatest control over a business is the _____.
A.) Partnerships
B.) Sole proprietorship
C.) S corporation
D.) C Corporation

b. sole proprietorship

When dealing with community property, which of the following statements is true?
A.) The signature of either spouse is required to sell it
B.) When one spouse dies, the surviving spouse immediately owns all the property of the deceased.
C.) property inherited by one spouse can remain the separate property of that spouse.
D.) Community property is a concept of English law.

B.) When one spouse dies, the surviving spouse immediately owns all the property of the deceased.

A property is owned by two unmarried individuals without right of survivorship. The form of ownership is most likely:
A.) Community property
B.) Ownership in severalty
C.) Joint Tenancy
D.) Tenancy in common

D.) Tenancy in common

Three co- owners wish to divide their undivided interests in a property into individually owned tracts of land. This process is known as an______
A.) Alienation
B.) Lawsuit
C.) Waiver
D.) Partition

D.) Partition

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 Beths death, her interest in the land passes to:
A.) Jason, because he was named in the will
B.) Jason, because he is her brother
C.) Dwayne, because he is a joint tenant
D.) None of these

C.) Dwayne. because he is a joint tenant

A trust that is created during the lifetime of the trustor is an ___.
A.) Testamentary trust
B.) Inter vivos trust
C.) business trust
D.) None of the above

B.) Inter vivos trust

Seller steve listed his property with City Realty, Acme Realty and countryside 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 various companies is a :
A.) Exclusive Right to sell
B.) Exclusive Agency Agreement
C.) Open Listing
D.) Net Listing

C.) Open Listing

In order to successfully sue for commission:
A.) The broker must have an active real estate license
B.) the broker must be the procuring cause of sale
C.) The broker must have an employment agreement signed by the party to be charged
D.) All of these are correct

D.) All of these are correct

The Federal law that requires that states make available online information related to known sex offenders is :
A.) Sex offender disclosure act
B.) Megans Law
C.) RESPA
D.) Dangerous offenders law

B.) Megans Law