PEARSON VUE UPDATED END OF COURSE QUESTIONS AND
SOLUTIONS RATED A+
✔✔The acts and conduct of a real estate salesperson, associated with (or acting for) a
broker, are the responsibility of the
a. real estate broker.
b. Texas Broker-Lawyer Committee.
c. real estate salesperson.
d. TREC. - ✔✔
✔✔Which of the following is NOT regulated by TREC?
a. Easements or Right of Way (ERW) Agents
b. Residential Service Companies
c. Appraisers
d. Property inspectors - ✔✔c. appraisers
✔✔An out-of-state prospect asks an agent to locate a diverse neighborhood for him.
The agent should:
Research the population trends in the neighborhoods
Show the prospect a diverse neighborhood
Not take the prospect
Explain that research of this nature is beyond the agent's scope of authority - ✔✔
✔✔Mary signs a two-year lease for an apartment owned by Sally. One year later, Mary
decides to move out. Sally
can enforce the lease only if she and Mary signed it.
can enforce the lease against Mary, since she lived in the apartment for more than six
months.
cannot enforce the lease if Mary gave 30 days' notice.
cannot enforce the lease, since Mary lived in the apartment for more than six months. -
✔✔
✔✔What is market value?
a. The replacement cost of the property
b. The price the property actually sold for
c. How much the lender is risking
d. The price the property is likely to bring in an "arm's length" transaction - ✔✔d. The
price the property is likely to bring in an "arm's length" transaction
✔✔Which could be considered a fixtures to Real Property?
a. A couch on the patio
b. A remote control for the properties garage, or a set of front door keys to the property
c. A bouquet of flowers cut from the back yard
d. A barbecue grill - ✔✔
, ✔✔"The subject property" best describes:
The property currently on the market
The property surrounding the base
The property compared to the base
The property for which the value is sought - ✔✔d.
✔✔A broker holds an earnest money check in his safe and then tells the seller the
check bounced. The broker is guilty of
commingling.
None of the answers.
fraud.
conversion. - ✔✔
✔✔How would you best describe Mortgage Pools?
a. A pool built with a home mortgage used for collateral
b. One mortgage held in a trust as collateral
c. A group of mortgages held in a trust as collateral for the issuance of a mortgage
backed security
d. Mortgage pools are the most complicated forms of mortgage backed securities - ✔✔
✔✔The role of a broker as the agent of the principal is a fiduciary relationship; the
broker does NOT owe the principal what duty?
Accountability
Loyalty
Availability
Obedience - ✔✔
✔✔Which of the following businesses operating as a broker would require a real estate
license?
General Partnership
Limited Partnership
Corporation
Sole proprietor - ✔✔Limited Partnership
✔✔A property management account:
Can earn interest that gets paid to the broker
Can earn interest that gets paid to the tenant
Must be non-interest bearing
Can earn interest - ✔✔
✔✔A person may act as a salesperson
once they have passed the exam and the sponsoring broker has requested his license.
once he has passed the exam.
SOLUTIONS RATED A+
✔✔The acts and conduct of a real estate salesperson, associated with (or acting for) a
broker, are the responsibility of the
a. real estate broker.
b. Texas Broker-Lawyer Committee.
c. real estate salesperson.
d. TREC. - ✔✔
✔✔Which of the following is NOT regulated by TREC?
a. Easements or Right of Way (ERW) Agents
b. Residential Service Companies
c. Appraisers
d. Property inspectors - ✔✔c. appraisers
✔✔An out-of-state prospect asks an agent to locate a diverse neighborhood for him.
The agent should:
Research the population trends in the neighborhoods
Show the prospect a diverse neighborhood
Not take the prospect
Explain that research of this nature is beyond the agent's scope of authority - ✔✔
✔✔Mary signs a two-year lease for an apartment owned by Sally. One year later, Mary
decides to move out. Sally
can enforce the lease only if she and Mary signed it.
can enforce the lease against Mary, since she lived in the apartment for more than six
months.
cannot enforce the lease if Mary gave 30 days' notice.
cannot enforce the lease, since Mary lived in the apartment for more than six months. -
✔✔
✔✔What is market value?
a. The replacement cost of the property
b. The price the property actually sold for
c. How much the lender is risking
d. The price the property is likely to bring in an "arm's length" transaction - ✔✔d. The
price the property is likely to bring in an "arm's length" transaction
✔✔Which could be considered a fixtures to Real Property?
a. A couch on the patio
b. A remote control for the properties garage, or a set of front door keys to the property
c. A bouquet of flowers cut from the back yard
d. A barbecue grill - ✔✔
, ✔✔"The subject property" best describes:
The property currently on the market
The property surrounding the base
The property compared to the base
The property for which the value is sought - ✔✔d.
✔✔A broker holds an earnest money check in his safe and then tells the seller the
check bounced. The broker is guilty of
commingling.
None of the answers.
fraud.
conversion. - ✔✔
✔✔How would you best describe Mortgage Pools?
a. A pool built with a home mortgage used for collateral
b. One mortgage held in a trust as collateral
c. A group of mortgages held in a trust as collateral for the issuance of a mortgage
backed security
d. Mortgage pools are the most complicated forms of mortgage backed securities - ✔✔
✔✔The role of a broker as the agent of the principal is a fiduciary relationship; the
broker does NOT owe the principal what duty?
Accountability
Loyalty
Availability
Obedience - ✔✔
✔✔Which of the following businesses operating as a broker would require a real estate
license?
General Partnership
Limited Partnership
Corporation
Sole proprietor - ✔✔Limited Partnership
✔✔A property management account:
Can earn interest that gets paid to the broker
Can earn interest that gets paid to the tenant
Must be non-interest bearing
Can earn interest - ✔✔
✔✔A person may act as a salesperson
once they have passed the exam and the sponsoring broker has requested his license.
once he has passed the exam.
