REALESTATEU - TEXAS PRINCIPLES
OF REAL ESTATE - PART 1
QUESTIONS AND ANSWERS RATED
100% CORRECT
Salesperson's Sponsoring Broker - Correct Answer ✔✔ a real estate salesperson
closes on a transaction, who pays the salespersons commission?
General Agent - Correct Answer ✔✔ An agent with full authority over one property of
the principle. EX: Property Manager.
Supply - Correct Answer ✔✔ Te amount of goods offered for sale within a given market
at a given price during a given period.
Specific Agent - Correct Answer ✔✔ Agent with limited authority to act on behalf of the
principal, such as a listing. EX real estate agent.
Market Comparison Approach - Correct Answer ✔✔ A means of comparing similar type
properties, which have recently sold, to the subject property. Commonly used in
comparing residential properties.
General Uses of Real Property - Correct Answer ✔✔ 1. Residential, Commercial, &
Industrial.
Principal - Correct Answer ✔✔ The employer of an agent; one of the main parties in a
real estate transaction, such as a buyer, borrower, seller, or lessor.
Commercial Property - Correct Answer ✔✔ Properties with 5 or more dwelling units.
Property that produces rental income or that is used in business
Personal Property - Correct Answer ✔✔ All property that isn't land & not permanently
attached to land. (MOVABLE)
Which of the following is considered a legal test for determining if an item is a fixture or
not...? - Correct Answer ✔✔ Intention of the parties, adaption of the item, & Mode and
permanence of how the item was attached
The transfer of personal property is typically done using a...? - Correct Answer ✔✔ Bill
of Sale
, Mineral rights are typically considered dominant to which of the following rights...? -
Correct Answer ✔✔ Surface rights
Mobile homes not permanently attached to the land are generally considered...? -
Correct Answer ✔✔ Personal Property
Which of the following is an advantage to owning a home...? - Correct Answer ✔✔ Tax
benefits
Pride of ownership
Potential for asset appreciation
Which of the following is NOT a form of real property...? - Correct Answer ✔✔
Cooperative
Owners of a cooperative apartment hold which of the following...? - Correct Answer ✔✔
Proprietary lease
An individual who has not owned real property for at least the previous two years is
known as a...? - Correct Answer ✔✔ First-time homebuyer
An insurance policy protecting against a variety of hazards is referred to as a...? -
Correct Answer ✔✔ Homeowners Policy
A form of ownership of real property recognized in all states that consists of individual
ownership of some aspects and co-ownership in other aspects of the property is known
as a...? - Correct Answer ✔✔ Condo
An individual is exempt from paying taxes on capital gains for up to how much in profit if
he/she lived in the house for at least 2 of the last 5 years...? - Correct Answer ✔✔
$250,000
A local real estate developer bought an abandoned school building with the intention of
converting it to residential units. This is an example of a... - Correct Answer ✔✔
Converted-use property
An agency relationship created by oral or written agreement between the principal and
the agent is known as...? - Correct Answer ✔✔ Express Agency
Real estate brokers have a ................... relationship with the principal? - Correct Answer
✔✔ Fiduciary
The listing agreement is a contract between the real estate broker and the...? - Correct
Answer ✔✔ Seller
As a seller's agent in a transaction, the agent is required to do which of the following...?
- Correct Answer ✔✔ Inform the seller of any material information
OF REAL ESTATE - PART 1
QUESTIONS AND ANSWERS RATED
100% CORRECT
Salesperson's Sponsoring Broker - Correct Answer ✔✔ a real estate salesperson
closes on a transaction, who pays the salespersons commission?
General Agent - Correct Answer ✔✔ An agent with full authority over one property of
the principle. EX: Property Manager.
Supply - Correct Answer ✔✔ Te amount of goods offered for sale within a given market
at a given price during a given period.
Specific Agent - Correct Answer ✔✔ Agent with limited authority to act on behalf of the
principal, such as a listing. EX real estate agent.
Market Comparison Approach - Correct Answer ✔✔ A means of comparing similar type
properties, which have recently sold, to the subject property. Commonly used in
comparing residential properties.
General Uses of Real Property - Correct Answer ✔✔ 1. Residential, Commercial, &
Industrial.
Principal - Correct Answer ✔✔ The employer of an agent; one of the main parties in a
real estate transaction, such as a buyer, borrower, seller, or lessor.
Commercial Property - Correct Answer ✔✔ Properties with 5 or more dwelling units.
Property that produces rental income or that is used in business
Personal Property - Correct Answer ✔✔ All property that isn't land & not permanently
attached to land. (MOVABLE)
Which of the following is considered a legal test for determining if an item is a fixture or
not...? - Correct Answer ✔✔ Intention of the parties, adaption of the item, & Mode and
permanence of how the item was attached
The transfer of personal property is typically done using a...? - Correct Answer ✔✔ Bill
of Sale
, Mineral rights are typically considered dominant to which of the following rights...? -
Correct Answer ✔✔ Surface rights
Mobile homes not permanently attached to the land are generally considered...? -
Correct Answer ✔✔ Personal Property
Which of the following is an advantage to owning a home...? - Correct Answer ✔✔ Tax
benefits
Pride of ownership
Potential for asset appreciation
Which of the following is NOT a form of real property...? - Correct Answer ✔✔
Cooperative
Owners of a cooperative apartment hold which of the following...? - Correct Answer ✔✔
Proprietary lease
An individual who has not owned real property for at least the previous two years is
known as a...? - Correct Answer ✔✔ First-time homebuyer
An insurance policy protecting against a variety of hazards is referred to as a...? -
Correct Answer ✔✔ Homeowners Policy
A form of ownership of real property recognized in all states that consists of individual
ownership of some aspects and co-ownership in other aspects of the property is known
as a...? - Correct Answer ✔✔ Condo
An individual is exempt from paying taxes on capital gains for up to how much in profit if
he/she lived in the house for at least 2 of the last 5 years...? - Correct Answer ✔✔
$250,000
A local real estate developer bought an abandoned school building with the intention of
converting it to residential units. This is an example of a... - Correct Answer ✔✔
Converted-use property
An agency relationship created by oral or written agreement between the principal and
the agent is known as...? - Correct Answer ✔✔ Express Agency
Real estate brokers have a ................... relationship with the principal? - Correct Answer
✔✔ Fiduciary
The listing agreement is a contract between the real estate broker and the...? - Correct
Answer ✔✔ Seller
As a seller's agent in a transaction, the agent is required to do which of the following...?
- Correct Answer ✔✔ Inform the seller of any material information
