TEXAS PRINCIPLES OF REAL ESTATE 1
FINAL EXAM QUESTIONS & DETAILED
CORRECT ANSWERS PASSED 100%
Which choice describes “rubber hits the road” education that meets the education
requirements for license renewal?
REALTORS Land Institute
What is the only scenario in which you do NOT need a real estate license to sell or lease a
property?
If you are not receiving commission from the sale.
TRUE or FALSE: Employees working for a commercial firm do not have to have a real estate
license if they are selling property owned by their firm.
True
Which of the following actions does NOT require a real estate license?
Selling a portion of a joint ownership in a property
When does an inactive license become active?
When the license holder joins a brokerage
The following circumstances would make the license of a salesperson inactive EXCEPT:
Having a Recovery Fund payment as a result of an improper transaction.
The average number of months it will take to sell a house in a buyer's market is:
6 months or more
When an appraisal report is not available, which of the following provides the BEST data for
setting a listing price?
The Price willing buyers have recently paid similar properties in the area
Which of the following actions is NOT grounds for disciplinary action, including revocation or
suspension of a license?
Failing to obey a clients unlawful instruction
,Commingling happens when:
A license holder mixes their own money with a client's money.
Which of the following acts is NOT necessarily wrong?
The Buyer and Seller both pay the commission.
Who requires sponsorship to practice real estate?
sales agent
What is the difference between land and real estate?
Land is a tract of earth plus the resources above and below; real estate is land plus human-
made improvements.
The bundle of right associated with property ownership include quiet enjoyment, possession,
disposition, and:
Exclusion
Ownership rights include surface rights (mineral rights), subsurface rights, air rights, and:
Water Rights
When an individual owns the mineral rights, they own:
Subsurface Rights
Can an agent assure a purchaser that they will acquire mineral rights with their sale?
No, questions about mineral rights are best left to an oil and gas attorney
What is the name for water rights that govern the use of flowing water, like a stream or river?
Riparian Rights
Buyer Alex is looking at a lakefront property. He has questions about whether he would be
allowed to access and use the lake. What kind of rights is Alex wondering about?
Littoral Rights
What is another term for personalty?
Chattel
Which of the these is transferred through a bill of sale rather than a conveyance instrument
such as a deed or will?
, Chattel
If an owner cuts down a tree, it becomes personal property by the act of:
Severance
Seller Mandy has decided she's taking her hot tub with her when she sells the house. She
unbolts the tub from the deck and has it moved to her new home. What did this act of
severance do?
Turned real property into personal property
What is the definition of a fixture?
Personal property that has been permanently attached to real estate
Ricky bought a ceiling fan. When he brought it home, it was personal property. Then, he
permanently installed it into his ceiling. Now it has become real property. What is this process
called?
Affixing
Which of the following is a fixture?
A ceiling fan attached to the ceiling
What is the definition of a trade fixture?
Personal Property attached to real property that is owned by and needed for a tenant’s business
Plants that are cultivated and harvested annually are considered personal property. These are
called:
Emblements
Plants that are NOT cultivated or harvested are considered real property and referred to as:
Fractus Naturals
If a salesperson has no interest in opening their own brokerage, why might they still want to
get a broker's license?
For Marketing purpose
Which of the following features in a condominium complex is the BEST example of a common
element?
The Swimming pool
FINAL EXAM QUESTIONS & DETAILED
CORRECT ANSWERS PASSED 100%
Which choice describes “rubber hits the road” education that meets the education
requirements for license renewal?
REALTORS Land Institute
What is the only scenario in which you do NOT need a real estate license to sell or lease a
property?
If you are not receiving commission from the sale.
TRUE or FALSE: Employees working for a commercial firm do not have to have a real estate
license if they are selling property owned by their firm.
True
Which of the following actions does NOT require a real estate license?
Selling a portion of a joint ownership in a property
When does an inactive license become active?
When the license holder joins a brokerage
The following circumstances would make the license of a salesperson inactive EXCEPT:
Having a Recovery Fund payment as a result of an improper transaction.
The average number of months it will take to sell a house in a buyer's market is:
6 months or more
When an appraisal report is not available, which of the following provides the BEST data for
setting a listing price?
The Price willing buyers have recently paid similar properties in the area
Which of the following actions is NOT grounds for disciplinary action, including revocation or
suspension of a license?
Failing to obey a clients unlawful instruction
,Commingling happens when:
A license holder mixes their own money with a client's money.
Which of the following acts is NOT necessarily wrong?
The Buyer and Seller both pay the commission.
Who requires sponsorship to practice real estate?
sales agent
What is the difference between land and real estate?
Land is a tract of earth plus the resources above and below; real estate is land plus human-
made improvements.
The bundle of right associated with property ownership include quiet enjoyment, possession,
disposition, and:
Exclusion
Ownership rights include surface rights (mineral rights), subsurface rights, air rights, and:
Water Rights
When an individual owns the mineral rights, they own:
Subsurface Rights
Can an agent assure a purchaser that they will acquire mineral rights with their sale?
No, questions about mineral rights are best left to an oil and gas attorney
What is the name for water rights that govern the use of flowing water, like a stream or river?
Riparian Rights
Buyer Alex is looking at a lakefront property. He has questions about whether he would be
allowed to access and use the lake. What kind of rights is Alex wondering about?
Littoral Rights
What is another term for personalty?
Chattel
Which of the these is transferred through a bill of sale rather than a conveyance instrument
such as a deed or will?
, Chattel
If an owner cuts down a tree, it becomes personal property by the act of:
Severance
Seller Mandy has decided she's taking her hot tub with her when she sells the house. She
unbolts the tub from the deck and has it moved to her new home. What did this act of
severance do?
Turned real property into personal property
What is the definition of a fixture?
Personal property that has been permanently attached to real estate
Ricky bought a ceiling fan. When he brought it home, it was personal property. Then, he
permanently installed it into his ceiling. Now it has become real property. What is this process
called?
Affixing
Which of the following is a fixture?
A ceiling fan attached to the ceiling
What is the definition of a trade fixture?
Personal Property attached to real property that is owned by and needed for a tenant’s business
Plants that are cultivated and harvested annually are considered personal property. These are
called:
Emblements
Plants that are NOT cultivated or harvested are considered real property and referred to as:
Fractus Naturals
If a salesperson has no interest in opening their own brokerage, why might they still want to
get a broker's license?
For Marketing purpose
Which of the following features in a condominium complex is the BEST example of a common
element?
The Swimming pool
