TEXAS PRINCIPLES OF REAL ESTATE
1 EXAM PREP QUESTIONS &
VERIFIED COMPLETE SOLUTIONS
What is found in nearly every kind of listing agreement? - Correct Answer ✔✔ Broker's
commission and commission fees
What is NOT one of the five canons of ethics? - Correct Answer ✔✔ Cooperation
Which in NOT a recoverable damage under the DTPA - Correct Answer ✔✔ punitive
damages
Situs refers to a location from which of these points of view? - Correct Answer ✔✔
Economic-based rather than a geographical standpoint
brokers that will post on MLS for a small fee but are not associated with the seller -
Correct Answer ✔✔ limited service brokers
How long does a chapter 13 debtor have to reinvest the proceeds of his or her home
sale in a new homestead or lose their homestead tax exemption status? - Correct
Answer ✔✔ 6 months
Which on of these is NOT one of the five duties owed by a fiduciary - Correct Answer
✔✔ Infidelity
the seller must provide the buyer with a disclosure statement in the statutorily required
form, which includes disclosure of all the except - Correct Answer ✔✔ history of any
HIV/AIDS infected individuals
The AIBS form is required to be given to all of these prospective participants in a
transaction except - Correct Answer ✔✔ other brokers
In the rectangular survey system, what a straight, imaginary lines running north and
south and parallel to the principal meridian? - Correct Answer ✔✔ range lines
which of the following are common law fiduciary duties? - Correct Answer ✔✔ care,
obedience, accounting, loyalty, disclosure
How much money can a first time home buyer withdraw from their IRA without being
penalized? - Correct Answer ✔✔ $10,000
, What is the difference between a class c and class s corporation? - Correct Answer ✔✔
Class C corporation does not have pass through taxation
Mrs. Murphy Exemption does not allow for this type of discrimination? - Correct Answer
✔✔ Racial
What is the name of the governing body for real estate in texas? - Correct Answer ✔✔
Texas Real Estate Commission
A C.L.U.E. report advises a customer on: - Correct Answer ✔✔ up to seven years of
claims history on a property
Mortgages are a common type of ____ lien - Correct Answer ✔✔ consensual
According to sec. 1101.159, the commission must ensure that the public is able to
interact with the commission in which of the following matters? - Correct Answer ✔✔ On
the internet
the executive director shall give notice or the commission's order to the party under
investigation. The notice must do which of the following? - Correct Answer ✔✔ Inform
the person of their right of judicial review
State the amount of any penalty imposed
Include the findings of fact and conclusions of law, separately stated.
ALL OF THE ABOVE
CFPB stands for - Correct Answer ✔✔ Consumer Financial Protection Bureau
A professional organization or association is usually a not-for- profit organization that
seeks to do what of the following? - Correct Answer ✔✔ Further a particular profession
and the interests of individuals engaged in that profession
A tenancy by the entirety between legally marries spouses differs from joint tenancy
because? - Correct Answer ✔✔ A spouse cannot dispose of their interest without the
consent of the other spouse
Which one of these is most likely a piece of information that needs to be disclosed in a
real estate sales transaction of a residential property? - Correct Answer ✔✔ Someone
was murdered on the property
The first multiple listing service in the U.S began in which city? - Correct Answer ✔✔
Baltimore
A licensee is liable for a misrepresentation or concealment of a material fact made by a
party to a real estate transaction in which of these circumstances? - Correct Answer ✔✔
The licensee knew of the concealment or misrepresentation and failed to disclose their
knowledge of it.
1 EXAM PREP QUESTIONS &
VERIFIED COMPLETE SOLUTIONS
What is found in nearly every kind of listing agreement? - Correct Answer ✔✔ Broker's
commission and commission fees
What is NOT one of the five canons of ethics? - Correct Answer ✔✔ Cooperation
Which in NOT a recoverable damage under the DTPA - Correct Answer ✔✔ punitive
damages
Situs refers to a location from which of these points of view? - Correct Answer ✔✔
Economic-based rather than a geographical standpoint
brokers that will post on MLS for a small fee but are not associated with the seller -
Correct Answer ✔✔ limited service brokers
How long does a chapter 13 debtor have to reinvest the proceeds of his or her home
sale in a new homestead or lose their homestead tax exemption status? - Correct
Answer ✔✔ 6 months
Which on of these is NOT one of the five duties owed by a fiduciary - Correct Answer
✔✔ Infidelity
the seller must provide the buyer with a disclosure statement in the statutorily required
form, which includes disclosure of all the except - Correct Answer ✔✔ history of any
HIV/AIDS infected individuals
The AIBS form is required to be given to all of these prospective participants in a
transaction except - Correct Answer ✔✔ other brokers
In the rectangular survey system, what a straight, imaginary lines running north and
south and parallel to the principal meridian? - Correct Answer ✔✔ range lines
which of the following are common law fiduciary duties? - Correct Answer ✔✔ care,
obedience, accounting, loyalty, disclosure
How much money can a first time home buyer withdraw from their IRA without being
penalized? - Correct Answer ✔✔ $10,000
, What is the difference between a class c and class s corporation? - Correct Answer ✔✔
Class C corporation does not have pass through taxation
Mrs. Murphy Exemption does not allow for this type of discrimination? - Correct Answer
✔✔ Racial
What is the name of the governing body for real estate in texas? - Correct Answer ✔✔
Texas Real Estate Commission
A C.L.U.E. report advises a customer on: - Correct Answer ✔✔ up to seven years of
claims history on a property
Mortgages are a common type of ____ lien - Correct Answer ✔✔ consensual
According to sec. 1101.159, the commission must ensure that the public is able to
interact with the commission in which of the following matters? - Correct Answer ✔✔ On
the internet
the executive director shall give notice or the commission's order to the party under
investigation. The notice must do which of the following? - Correct Answer ✔✔ Inform
the person of their right of judicial review
State the amount of any penalty imposed
Include the findings of fact and conclusions of law, separately stated.
ALL OF THE ABOVE
CFPB stands for - Correct Answer ✔✔ Consumer Financial Protection Bureau
A professional organization or association is usually a not-for- profit organization that
seeks to do what of the following? - Correct Answer ✔✔ Further a particular profession
and the interests of individuals engaged in that profession
A tenancy by the entirety between legally marries spouses differs from joint tenancy
because? - Correct Answer ✔✔ A spouse cannot dispose of their interest without the
consent of the other spouse
Which one of these is most likely a piece of information that needs to be disclosed in a
real estate sales transaction of a residential property? - Correct Answer ✔✔ Someone
was murdered on the property
The first multiple listing service in the U.S began in which city? - Correct Answer ✔✔
Baltimore
A licensee is liable for a misrepresentation or concealment of a material fact made by a
party to a real estate transaction in which of these circumstances? - Correct Answer ✔✔
The licensee knew of the concealment or misrepresentation and failed to disclose their
knowledge of it.
