TX 30 HOUR PRINCIPLES OF REAL
ESTATE I EXAM QUESTIONS &
ANSWERS PASSED ALREADY
GRADED A+
A portion of Lance's property can be used by the local utility company to maintain its
power lines. What is this an example of? - Correct Answer ✔✔ Easement
Several brokerages in a certain area agree to stop running advertisements in a local
publication. What type of antitrust violation is this? - Correct Answer ✔✔ Group
boycotting
Homestead exemptions ______ property taxes for all homeowners by protecting a
certain amount of a Texas home's value from tax. - Correct Answer ✔✔ Decrease
What is the length of the statute of limitations to file a fair housing complaint with HUD?
- Correct Answer ✔✔ One year
Lewis and Elliot started a real estate investment business together. After much
discussion with their attorney, they decided to incorporate, but in such a way that they
are treated like a partnership and don't have to pay corporate taxes. What form of
business do they have? - Correct Answer ✔✔ Subchapter S corporation
Which of the following is a true statement about the Texas seller's disclosure of property
condition law? - Correct Answer ✔✔ It requires sellers of single-family residential
properties to disclose material facts to buyers.
Novation is... - Correct Answer ✔✔ the substitution of one or more of the parties to a
contract, creating a new contract.
Rickie is a real estate licensee. She makes regular calls to customers and past clients
to market her services. If someone she calls asks to be put on her internal "do not call"
list, what is Rickie required to do? - Correct Answer ✔✔ Immediately place the
customer's number on her internal do not call list, and avoid making unsolicited calls
from that point forward
When does a buyer's market occur? - Correct Answer ✔✔ When supply is high and
demand is low
Assignment of a contract is... - Correct Answer ✔✔ the substitution of one party for
another, with the original party still being obligated under the terms of the contract.
,Which type of antitrust violation occurs when real estate firms agree to divide their
market so they don't compete with one another? - Correct Answer ✔✔ Market allocation
Which of the following is a possible outcome if a brokerage is found guilty of violating
antitrust law? - Correct Answer ✔✔ The brokerage may have to undergo court-ordered
supervision for up to 10 years.
Net listings are... - Correct Answer ✔✔ prohibited in several states, and there's no
guarantee of commission
A new business moves into town, significantly increasing the availability of good paying
jobs. How is this likely to affect the town's housing market? - Correct Answer ✔✔
Demand will go up, creating a seller's market.
Which ownership type is defined by four unities: time, title, interest, and possession? -
Correct Answer ✔✔ Joint tenancy
Which of these statements best represents what happens after a federal fair housing
complaint is made? - Correct Answer ✔✔ A fair housing specialist will review the
complaint.
Which of the following is a charge you would pay to your lender to arrange the financing
for your home loan? - Correct Answer ✔✔ Origination fee
How many forms of ID are required when appearing for your Texas licensing exam? -
Correct Answer ✔✔ Two
CAN-SPAM Act of 2003 - Correct Answer ✔✔ Regulates the distribution and content of
unsolicited commercial e-mail
Kelo v. City of New London was a court case that focused on the power of
____________. - Correct Answer ✔✔ Eminent domain
Richard is interested in purchasing some rural land and included outbuildings. When
reviewing the legal description, he sees the name of a principal meridian. What type of
legal description is this? - Correct Answer ✔✔ Rectangular government survey
Anastasia wants to get her real estate license and bring together buyers and sellers.
This means she will be involved in which of the following? - Correct Answer ✔✔
Brokerage
Gloria has an option to purchase the cottage she leases from her landlord. She can
exercise the option within the next two years. To gain that right, Gloria paid the landlord
$5,000. This is called ______. - Correct Answer ✔✔ An option fee
, Which of the following expenses of home ownership may be a tax deduction? - Correct
Answer ✔✔ Prepaid interest
blockbusting - Correct Answer ✔✔ Any attempt to convince property owners that
property values are set to decline or sales will be difficult because of a specific
protected group moving into the area
Where can an agent report an antitrust violation? - Correct Answer ✔✔ Citizens
Complaint Center of the DOJ's Antitrust Division
Texas broker Clark has grown sick of the assumed business name he's been using for
the past few years. What, if anything, must Clark do if he's decided to stop using it? -
Correct Answer ✔✔ He must notify the commission in writing by the 10th day after the
date the broker stops using the assumed business name.
Is a license holder required to disclose information surrounding a death at a property if
that death were a result of a defect on the property? - Correct Answer ✔✔ Yes. If a
death occurred because of a defect on the property, a licensee must disclose this
information when listing or selling that property.
What type of lien is defined as an involuntary lien placed on all of the property received
by a deceased person's heirs? - Correct Answer ✔✔ Estate/inheritance lien
Carl is a sales agent who works under the supervision of a broker. Which of the
following is true? - Correct Answer ✔✔ Carl can be either an employee or an
independent contractor.
Renae moved to the U.S. from Nigeria and became a citizen. Which act specifically
provides Renae with the right to buy, sell, convey, inherit, and possess property? -
Correct Answer ✔✔ Civil Rights Act of 1866
In which of these situations would a listing be most likely to terminate due to listing
agreement expiration? - Correct Answer ✔✔ A market with high inventory and low
demand
In which type of listing agreement does a seller contract with one listing agent but
reserve the right to locate the buyer and only pay the listing agent if an agent locates
the buyer? - Correct Answer ✔✔ Exclusive agency
Which of the following forms is the listing agent responsible for having sellers complete
and sign or initial before uploading the property information to the Internet? - Correct
Answer ✔✔ MLS Profile Sheet
What's inverse condemnation? - Correct Answer ✔✔ It occurs when government
actions deprive a property owner of the value of the property without offering just
compensation.
ESTATE I EXAM QUESTIONS &
ANSWERS PASSED ALREADY
GRADED A+
A portion of Lance's property can be used by the local utility company to maintain its
power lines. What is this an example of? - Correct Answer ✔✔ Easement
Several brokerages in a certain area agree to stop running advertisements in a local
publication. What type of antitrust violation is this? - Correct Answer ✔✔ Group
boycotting
Homestead exemptions ______ property taxes for all homeowners by protecting a
certain amount of a Texas home's value from tax. - Correct Answer ✔✔ Decrease
What is the length of the statute of limitations to file a fair housing complaint with HUD?
- Correct Answer ✔✔ One year
Lewis and Elliot started a real estate investment business together. After much
discussion with their attorney, they decided to incorporate, but in such a way that they
are treated like a partnership and don't have to pay corporate taxes. What form of
business do they have? - Correct Answer ✔✔ Subchapter S corporation
Which of the following is a true statement about the Texas seller's disclosure of property
condition law? - Correct Answer ✔✔ It requires sellers of single-family residential
properties to disclose material facts to buyers.
Novation is... - Correct Answer ✔✔ the substitution of one or more of the parties to a
contract, creating a new contract.
Rickie is a real estate licensee. She makes regular calls to customers and past clients
to market her services. If someone she calls asks to be put on her internal "do not call"
list, what is Rickie required to do? - Correct Answer ✔✔ Immediately place the
customer's number on her internal do not call list, and avoid making unsolicited calls
from that point forward
When does a buyer's market occur? - Correct Answer ✔✔ When supply is high and
demand is low
Assignment of a contract is... - Correct Answer ✔✔ the substitution of one party for
another, with the original party still being obligated under the terms of the contract.
,Which type of antitrust violation occurs when real estate firms agree to divide their
market so they don't compete with one another? - Correct Answer ✔✔ Market allocation
Which of the following is a possible outcome if a brokerage is found guilty of violating
antitrust law? - Correct Answer ✔✔ The brokerage may have to undergo court-ordered
supervision for up to 10 years.
Net listings are... - Correct Answer ✔✔ prohibited in several states, and there's no
guarantee of commission
A new business moves into town, significantly increasing the availability of good paying
jobs. How is this likely to affect the town's housing market? - Correct Answer ✔✔
Demand will go up, creating a seller's market.
Which ownership type is defined by four unities: time, title, interest, and possession? -
Correct Answer ✔✔ Joint tenancy
Which of these statements best represents what happens after a federal fair housing
complaint is made? - Correct Answer ✔✔ A fair housing specialist will review the
complaint.
Which of the following is a charge you would pay to your lender to arrange the financing
for your home loan? - Correct Answer ✔✔ Origination fee
How many forms of ID are required when appearing for your Texas licensing exam? -
Correct Answer ✔✔ Two
CAN-SPAM Act of 2003 - Correct Answer ✔✔ Regulates the distribution and content of
unsolicited commercial e-mail
Kelo v. City of New London was a court case that focused on the power of
____________. - Correct Answer ✔✔ Eminent domain
Richard is interested in purchasing some rural land and included outbuildings. When
reviewing the legal description, he sees the name of a principal meridian. What type of
legal description is this? - Correct Answer ✔✔ Rectangular government survey
Anastasia wants to get her real estate license and bring together buyers and sellers.
This means she will be involved in which of the following? - Correct Answer ✔✔
Brokerage
Gloria has an option to purchase the cottage she leases from her landlord. She can
exercise the option within the next two years. To gain that right, Gloria paid the landlord
$5,000. This is called ______. - Correct Answer ✔✔ An option fee
, Which of the following expenses of home ownership may be a tax deduction? - Correct
Answer ✔✔ Prepaid interest
blockbusting - Correct Answer ✔✔ Any attempt to convince property owners that
property values are set to decline or sales will be difficult because of a specific
protected group moving into the area
Where can an agent report an antitrust violation? - Correct Answer ✔✔ Citizens
Complaint Center of the DOJ's Antitrust Division
Texas broker Clark has grown sick of the assumed business name he's been using for
the past few years. What, if anything, must Clark do if he's decided to stop using it? -
Correct Answer ✔✔ He must notify the commission in writing by the 10th day after the
date the broker stops using the assumed business name.
Is a license holder required to disclose information surrounding a death at a property if
that death were a result of a defect on the property? - Correct Answer ✔✔ Yes. If a
death occurred because of a defect on the property, a licensee must disclose this
information when listing or selling that property.
What type of lien is defined as an involuntary lien placed on all of the property received
by a deceased person's heirs? - Correct Answer ✔✔ Estate/inheritance lien
Carl is a sales agent who works under the supervision of a broker. Which of the
following is true? - Correct Answer ✔✔ Carl can be either an employee or an
independent contractor.
Renae moved to the U.S. from Nigeria and became a citizen. Which act specifically
provides Renae with the right to buy, sell, convey, inherit, and possess property? -
Correct Answer ✔✔ Civil Rights Act of 1866
In which of these situations would a listing be most likely to terminate due to listing
agreement expiration? - Correct Answer ✔✔ A market with high inventory and low
demand
In which type of listing agreement does a seller contract with one listing agent but
reserve the right to locate the buyer and only pay the listing agent if an agent locates
the buyer? - Correct Answer ✔✔ Exclusive agency
Which of the following forms is the listing agent responsible for having sellers complete
and sign or initial before uploading the property information to the Internet? - Correct
Answer ✔✔ MLS Profile Sheet
What's inverse condemnation? - Correct Answer ✔✔ It occurs when government
actions deprive a property owner of the value of the property without offering just
compensation.
