121 PRINCIPLES OF REAL ESTATE I
QUESTIONS & ANSWERS PASSED
ALREADY GRADED A+
13. _________ plants may live only a few years or many years and are considered real
estate. - Correct Answer ✔✔ perennial
1. What does the Texas Real Estate Commission regulate? - Correct Answer ✔✔ • Real
Estate Brokers and Sales Agents • Real Estate Inspectors
• Education Providers for Real Estate and Inspection Courses
• Residential Service Companies
• Timeshare Developers
• Easement or Right-of-Way (ERW) agents
Who are participants in the "market"? - Correct Answer ✔✔ • Owner/user: These people
are both owners and tenants. They purchase houses or commercial property as an
investment and also to live in or utilize as a business.
• Owner: These people are pure investors. They do not consume the real estate that
they purchase. Typically, they rent out or lease the property to someone else.
• Renter: These people are pure consumers.
• Developers: These people prepare raw land for building, which results in new products
for the market.
• Renovators: These people supply refurbished buildings to the market.
• Facilitators: This group includes banks, real estate brokers, lawyers, and others that
facilitate the purchase and sale of real estate
characteristics of the real estate market - Correct Answer ✔✔ • Durability
• Heterogeneity
• High transaction costs
• Long time delays
• Both an investment good and a consumption good
• Immobility
TREC is the state's regulatory agency for the following - Correct Answer ✔✔ • Real
Estate Brokers and Sales Agents
• Real Estate Inspectors
• Education Providers for Real Estate and Inspection Courses
• Residential Service Companies
• Timeshare Developers
• Easement or Right-of-Way (ERW) agents
,Texas Real Estate Commission (TREC) administers four laws: - Correct Answer ✔✔ -
Texas Occupations Code, Chapter 1101
- The Real Estate License Act Texas Occupations Code, Chapter 1102
- Real Estate Inspectors Texas Occupations Code, Chapter 1303
- The Residential Service Company Act Texas Property Code, Chapter 221
- The Texas Timeshare Act
Commercial brokers must be aware of the following EXCEPT:
A. Growth possibilities
B. Income tax regulations
C. Purchasing arrangements
D. Residential building codes - Correct Answer ✔✔ D. Residential building codes
The largest number of real estate transactions closed in Texas are from:
A. The sale of business buildings
B. The sale of residential homes
C. The sale of farms and ranches
D. The sale of individual vacant lots in a city - Correct Answer ✔✔ B. The sale of
residential homes
Which of the following are federal laws?
A. Agency laws
B. Contract laws
C. Fair Housing laws
D. Real estate license laws - Correct Answer ✔✔ C. Fair Housing laws
Which one of the following is NOT a part of the demand side of the market?
A. Owner-user
B. Renovator
C. User
D. Renter - Correct Answer ✔✔ B. Renovator
Which one of the following is NOT a physical characteristic of land?
A. Location on Earth
B. Indestructability
C. Immobility
D. Preference - Correct Answer ✔✔ D. Preference
Which of the following instances requires a real estate license?
A. Buyer or seller acting as principal
B. On-site manager of apartment complex
C. Managers of condos or townhomes
,D. Employee of a new home builder - Correct Answer ✔✔ C. Managers of condos or
townhomes
The responsibilities of the Texas Real Estate Commission include all the following
EXCEPT:
A. Granting licenses to applicants
B. Regulating brokerage fees
C. Protecting the public interest
D. Regulating the activities of licensees - Correct Answer ✔✔ B. Regulating brokerage
fees
What is an independent contractor?
A. A self-employed taxpayer
B. An employee
C. Performs services directly controlled by employer
D. Someone who receives employee benefits from a broke - Correct Answer ✔✔ A. A
self-employed taxpayer
What is civil law?
A. When private citizens create arbitration agreements
B. When the legislature or other central body codifies and consolidates their laws and
deals with the resolution of lawsuits
C. Where judge-made precedent is accepted as binding law
D. Deals with the conduct that is considered harmful to social order - Correct Answer
✔✔ B. When the legislature or other central body codifies and consolidates their laws
and deals with the resolution of lawsuits
What is the MOST common form of real estate transaction that does not require a real
estate license?
A. Lawyers authorized to handle real estate sales
B. When a buyer or seller is acting as a principal
C. An on-site manager of a property complex
D. Selling a builder's new house - Correct Answer ✔✔ B. When a buyer or seller is
acting as a principal
What is ESAC?
A. A branch of TREC dealing with educational courses
B. A committee made up of 13 members
C. A committee created by TRELA in 2011 under Senate Bill 747
D. A committee appointed by the governor. - Correct Answer ✔✔ C. A committee
created by TRELA in 2011 under Senate Bill 747
What is the relationship between a salesperson and a sponsoring broker?
A. A salesperson must have a sponsoring broker before they have an active license.
B. A salesperson gets their active license then finds a sponsoring broker.
, C. A salesperson can be independent of any broker.
D. A salesperson relies on sponsoring broker for listing. - Correct Answer ✔✔ A. A
salesperson must have a sponsoring broker before they have an active license.
1. A sales agent needs a license to sell real estate. - Correct Answer ✔✔ TRUE
2. An apartment manager who manages for a sole owner needs a real estate license to
practice real estate. - Correct Answer ✔✔ FALSE
3. A homeowner needs a license to sell his personal real estate. - Correct Answer ✔✔
FALSE
4. Most licensed agents practice commercial real estate. - Correct Answer ✔✔ FALSE
5. Durability is a characteristic of the real estate market. - Correct Answer ✔✔ TRUE
6. The National Association of REALTORS® requires all licensees to sign a pledge to
uphold the Code of Ethics. - Correct Answer ✔✔ TRUE
7. The Texas Real Estate Commission does not license real estate schools. - Correct
Answer ✔✔ FALSE
8. TREC regulates mortgage brokers. - Correct Answer ✔✔ FALSE
9. The relationship between supply and demand is a fundamental concept of
economics. - Correct Answer ✔✔ TRUE
1. Most real estate agents go into _____ real estate. - Correct Answer ✔✔ residential
2. _____ members make a quorum for the ESAC Committee. - Correct Answer ✔✔ 7
3. The two levels of licensure are the ________ license and the ______ license. -
Correct Answer ✔✔ _salesperson_ , _broker_
4. If you were interested in learning how to professionally value property, you may want
to consider becoming a(n) ________. - Correct Answer ✔✔ appraiser
5. Agents called __________ specialize in finding apartments for tenants to lease. -
Correct Answer ✔✔ apartment locaters
6. The ESAC Committee is made up of ______members. - Correct Answer ✔✔ 12
7. All members of the ESAC Committee are appointed by ______ - Correct Answer ✔✔
__TREC
QUESTIONS & ANSWERS PASSED
ALREADY GRADED A+
13. _________ plants may live only a few years or many years and are considered real
estate. - Correct Answer ✔✔ perennial
1. What does the Texas Real Estate Commission regulate? - Correct Answer ✔✔ • Real
Estate Brokers and Sales Agents • Real Estate Inspectors
• Education Providers for Real Estate and Inspection Courses
• Residential Service Companies
• Timeshare Developers
• Easement or Right-of-Way (ERW) agents
Who are participants in the "market"? - Correct Answer ✔✔ • Owner/user: These people
are both owners and tenants. They purchase houses or commercial property as an
investment and also to live in or utilize as a business.
• Owner: These people are pure investors. They do not consume the real estate that
they purchase. Typically, they rent out or lease the property to someone else.
• Renter: These people are pure consumers.
• Developers: These people prepare raw land for building, which results in new products
for the market.
• Renovators: These people supply refurbished buildings to the market.
• Facilitators: This group includes banks, real estate brokers, lawyers, and others that
facilitate the purchase and sale of real estate
characteristics of the real estate market - Correct Answer ✔✔ • Durability
• Heterogeneity
• High transaction costs
• Long time delays
• Both an investment good and a consumption good
• Immobility
TREC is the state's regulatory agency for the following - Correct Answer ✔✔ • Real
Estate Brokers and Sales Agents
• Real Estate Inspectors
• Education Providers for Real Estate and Inspection Courses
• Residential Service Companies
• Timeshare Developers
• Easement or Right-of-Way (ERW) agents
,Texas Real Estate Commission (TREC) administers four laws: - Correct Answer ✔✔ -
Texas Occupations Code, Chapter 1101
- The Real Estate License Act Texas Occupations Code, Chapter 1102
- Real Estate Inspectors Texas Occupations Code, Chapter 1303
- The Residential Service Company Act Texas Property Code, Chapter 221
- The Texas Timeshare Act
Commercial brokers must be aware of the following EXCEPT:
A. Growth possibilities
B. Income tax regulations
C. Purchasing arrangements
D. Residential building codes - Correct Answer ✔✔ D. Residential building codes
The largest number of real estate transactions closed in Texas are from:
A. The sale of business buildings
B. The sale of residential homes
C. The sale of farms and ranches
D. The sale of individual vacant lots in a city - Correct Answer ✔✔ B. The sale of
residential homes
Which of the following are federal laws?
A. Agency laws
B. Contract laws
C. Fair Housing laws
D. Real estate license laws - Correct Answer ✔✔ C. Fair Housing laws
Which one of the following is NOT a part of the demand side of the market?
A. Owner-user
B. Renovator
C. User
D. Renter - Correct Answer ✔✔ B. Renovator
Which one of the following is NOT a physical characteristic of land?
A. Location on Earth
B. Indestructability
C. Immobility
D. Preference - Correct Answer ✔✔ D. Preference
Which of the following instances requires a real estate license?
A. Buyer or seller acting as principal
B. On-site manager of apartment complex
C. Managers of condos or townhomes
,D. Employee of a new home builder - Correct Answer ✔✔ C. Managers of condos or
townhomes
The responsibilities of the Texas Real Estate Commission include all the following
EXCEPT:
A. Granting licenses to applicants
B. Regulating brokerage fees
C. Protecting the public interest
D. Regulating the activities of licensees - Correct Answer ✔✔ B. Regulating brokerage
fees
What is an independent contractor?
A. A self-employed taxpayer
B. An employee
C. Performs services directly controlled by employer
D. Someone who receives employee benefits from a broke - Correct Answer ✔✔ A. A
self-employed taxpayer
What is civil law?
A. When private citizens create arbitration agreements
B. When the legislature or other central body codifies and consolidates their laws and
deals with the resolution of lawsuits
C. Where judge-made precedent is accepted as binding law
D. Deals with the conduct that is considered harmful to social order - Correct Answer
✔✔ B. When the legislature or other central body codifies and consolidates their laws
and deals with the resolution of lawsuits
What is the MOST common form of real estate transaction that does not require a real
estate license?
A. Lawyers authorized to handle real estate sales
B. When a buyer or seller is acting as a principal
C. An on-site manager of a property complex
D. Selling a builder's new house - Correct Answer ✔✔ B. When a buyer or seller is
acting as a principal
What is ESAC?
A. A branch of TREC dealing with educational courses
B. A committee made up of 13 members
C. A committee created by TRELA in 2011 under Senate Bill 747
D. A committee appointed by the governor. - Correct Answer ✔✔ C. A committee
created by TRELA in 2011 under Senate Bill 747
What is the relationship between a salesperson and a sponsoring broker?
A. A salesperson must have a sponsoring broker before they have an active license.
B. A salesperson gets their active license then finds a sponsoring broker.
, C. A salesperson can be independent of any broker.
D. A salesperson relies on sponsoring broker for listing. - Correct Answer ✔✔ A. A
salesperson must have a sponsoring broker before they have an active license.
1. A sales agent needs a license to sell real estate. - Correct Answer ✔✔ TRUE
2. An apartment manager who manages for a sole owner needs a real estate license to
practice real estate. - Correct Answer ✔✔ FALSE
3. A homeowner needs a license to sell his personal real estate. - Correct Answer ✔✔
FALSE
4. Most licensed agents practice commercial real estate. - Correct Answer ✔✔ FALSE
5. Durability is a characteristic of the real estate market. - Correct Answer ✔✔ TRUE
6. The National Association of REALTORS® requires all licensees to sign a pledge to
uphold the Code of Ethics. - Correct Answer ✔✔ TRUE
7. The Texas Real Estate Commission does not license real estate schools. - Correct
Answer ✔✔ FALSE
8. TREC regulates mortgage brokers. - Correct Answer ✔✔ FALSE
9. The relationship between supply and demand is a fundamental concept of
economics. - Correct Answer ✔✔ TRUE
1. Most real estate agents go into _____ real estate. - Correct Answer ✔✔ residential
2. _____ members make a quorum for the ESAC Committee. - Correct Answer ✔✔ 7
3. The two levels of licensure are the ________ license and the ______ license. -
Correct Answer ✔✔ _salesperson_ , _broker_
4. If you were interested in learning how to professionally value property, you may want
to consider becoming a(n) ________. - Correct Answer ✔✔ appraiser
5. Agents called __________ specialize in finding apartments for tenants to lease. -
Correct Answer ✔✔ apartment locaters
6. The ESAC Committee is made up of ______members. - Correct Answer ✔✔ 12
7. All members of the ESAC Committee are appointed by ______ - Correct Answer ✔✔
__TREC
