TEXAS PRINCIPLES OF REAL ESTATE
1 EXAM QUESTIONS & UPDATED
SOLUTIONS PASSED 100%
market equilibrium - Correct Answer ✔✔ supply equals demand, and price, cost, and
value are identical
Absorption - Correct Answer ✔✔ the amount of available property that becomes
occupied over a period of time. E
Members of the commission - Correct Answer ✔✔ consists of 9 members appointed by
the governor with the advice and consent of the senate. 6 members are brokers and 3
members represent the public.
Physical Characteristics of Land - Correct Answer ✔✔ Land has three unique physical
characteristics: immobility, indestructibility, and heterogeneity.
Education Standards Advisory Committee is made up of # members? - Correct Answer
✔✔ 12 members
Real Property Rights - Correct Answer ✔✔ These consist of the bundle of rights
associated with owning a parcel of real estate. Foremost of these rights is the right of
possession.
In an ordinary lease - Correct Answer ✔✔ the transfer of a portion of one's bundle of
rights.
condominium - Correct Answer ✔✔ usually in a large building or group of buildings.
They can look like apartment buildings, townhouses or duplex and condominium is a
hybrid form of ownership of multi-unit residential or commercial property
cooperative - Correct Answer ✔✔ the units are owned by a corporation that sells shares
of stock to the owners
A time-share - Correct Answer ✔✔ A form of ownership interest that may include an
estate interest in property and that allows use of the property for a fixed or variable time
period. A time-share is shared ownership of one home or unit by multiple owners.
Planned Unit Development (PUD) - Correct Answer ✔✔ housing concept is designed to
produce a high density of dwellings with maximum use of open spaces - typically for
parks and recreation areas.
, Converted use property - Correct Answer ✔✔ These are factories, schools, churches,
garages, hotels, etc. that have been renovated for other uses
retirement community - Correct Answer ✔✔ often provides recreational facilities,
shopping and healthcare facilities to its residents.
high-rise building - Correct Answer ✔✔ is typically higher than six floors and often
combines shopping, entertainment and offices in the same building.
In a universal agency - Correct Answer ✔✔ the principal empowers the agent to
perform any and all actions that may be legally delegated to an agency representative
In a general agency - Correct Answer ✔✔ the principal delegates to the agent ongoing
tasks and duties within a particular business or enterprise. Such delegation may include
the authority to enter into contracts.
Special Agent - Correct Answer ✔✔ the principal delegates authority to conduct a
specific activity, after which the agency relationship terminates. In most cases, the
special agent may not bind the principal to a contract. In most instances, real estate
brokerage is based on a special agency.
the licensee does NOT owe any further duties to the principal, except - Correct Answer
✔✔ Accounting and Confidentiality
Dual Agency - Correct Answer ✔✔ (represent both parties) is not permitted in Texas;
what are generally not considered brokerage. - Correct Answer ✔✔ buying, selling, and
leasing real estate for one's own account or for one's company
Commingling - Correct Answer ✔✔ mixing the broker's personal or business funds with
escrow funds
Conversion - Correct Answer ✔✔ the act of misappropriation of escrow funds for the
broker's business or personal use an cause license revocation.
Clayton Antitrust Act (1914) - Correct Answer ✔✔ defines unethical business practices,
such as price fixing and monopolies, and upholds various rights of labor
Sherman Antitrust Act (1890) - Correct Answer ✔✔ is the principal federal statute that
covers competition and is one of the most important pieces of antitrust legislation
antitrust laws - Correct Answer ✔✔ .Antitrust laws also referred to as competition laws,
are statutes developed by the U.S. government to protect consumers from predatory
business practices. They ensure that fair competition exists in an open-market
economy. .
1 EXAM QUESTIONS & UPDATED
SOLUTIONS PASSED 100%
market equilibrium - Correct Answer ✔✔ supply equals demand, and price, cost, and
value are identical
Absorption - Correct Answer ✔✔ the amount of available property that becomes
occupied over a period of time. E
Members of the commission - Correct Answer ✔✔ consists of 9 members appointed by
the governor with the advice and consent of the senate. 6 members are brokers and 3
members represent the public.
Physical Characteristics of Land - Correct Answer ✔✔ Land has three unique physical
characteristics: immobility, indestructibility, and heterogeneity.
Education Standards Advisory Committee is made up of # members? - Correct Answer
✔✔ 12 members
Real Property Rights - Correct Answer ✔✔ These consist of the bundle of rights
associated with owning a parcel of real estate. Foremost of these rights is the right of
possession.
In an ordinary lease - Correct Answer ✔✔ the transfer of a portion of one's bundle of
rights.
condominium - Correct Answer ✔✔ usually in a large building or group of buildings.
They can look like apartment buildings, townhouses or duplex and condominium is a
hybrid form of ownership of multi-unit residential or commercial property
cooperative - Correct Answer ✔✔ the units are owned by a corporation that sells shares
of stock to the owners
A time-share - Correct Answer ✔✔ A form of ownership interest that may include an
estate interest in property and that allows use of the property for a fixed or variable time
period. A time-share is shared ownership of one home or unit by multiple owners.
Planned Unit Development (PUD) - Correct Answer ✔✔ housing concept is designed to
produce a high density of dwellings with maximum use of open spaces - typically for
parks and recreation areas.
, Converted use property - Correct Answer ✔✔ These are factories, schools, churches,
garages, hotels, etc. that have been renovated for other uses
retirement community - Correct Answer ✔✔ often provides recreational facilities,
shopping and healthcare facilities to its residents.
high-rise building - Correct Answer ✔✔ is typically higher than six floors and often
combines shopping, entertainment and offices in the same building.
In a universal agency - Correct Answer ✔✔ the principal empowers the agent to
perform any and all actions that may be legally delegated to an agency representative
In a general agency - Correct Answer ✔✔ the principal delegates to the agent ongoing
tasks and duties within a particular business or enterprise. Such delegation may include
the authority to enter into contracts.
Special Agent - Correct Answer ✔✔ the principal delegates authority to conduct a
specific activity, after which the agency relationship terminates. In most cases, the
special agent may not bind the principal to a contract. In most instances, real estate
brokerage is based on a special agency.
the licensee does NOT owe any further duties to the principal, except - Correct Answer
✔✔ Accounting and Confidentiality
Dual Agency - Correct Answer ✔✔ (represent both parties) is not permitted in Texas;
what are generally not considered brokerage. - Correct Answer ✔✔ buying, selling, and
leasing real estate for one's own account or for one's company
Commingling - Correct Answer ✔✔ mixing the broker's personal or business funds with
escrow funds
Conversion - Correct Answer ✔✔ the act of misappropriation of escrow funds for the
broker's business or personal use an cause license revocation.
Clayton Antitrust Act (1914) - Correct Answer ✔✔ defines unethical business practices,
such as price fixing and monopolies, and upholds various rights of labor
Sherman Antitrust Act (1890) - Correct Answer ✔✔ is the principal federal statute that
covers competition and is one of the most important pieces of antitrust legislation
antitrust laws - Correct Answer ✔✔ .Antitrust laws also referred to as competition laws,
are statutes developed by the U.S. government to protect consumers from predatory
business practices. They ensure that fair competition exists in an open-market
economy. .
