Principles of Real Estate 1 Actual Exam
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1. All of the following violate the Texas Real Estate License Act, EXCEPT: -
ANSWER Disclosing all known facts pertaining to a property to a client
2. The aspect of the real estate business that is concerned with bringing
together the parties and completing the transactions is: - ANSWER
brokerage
3. An attorney from another state must have a Texas real estate license to
receive a commission for a real estate transaction in Texas. - ANSWER true
4. The easement created by the continued use of land without the permission of
the owner is: - ANSWER an easement by prescription
5. which of the following is true about tenancy in common? - ANSWER
ownership passes to heirs at probate
6. Texas is a community property state. What is true about community
property? - ANSWER Property inherited by one spouse can remain the
separate property of that spouse
7. When a contract is cancelled and a new contract replaces it, this is called: -
ANSWER novation
,8. Agency agreements such as listings and buyer representation agreements: -
ANSWER Are employment contracts, Should be in writing, Establish the
principal-client relationship
9. All of these are factors which can affect insurance premiums, EXCEPT: -
ANSWER policyholder's age
10.redlining is: - ANSWER The refusal to lend money in a particular area
because of location
11.How long does a consumer have to file a complaint with TREC against a
licensee? - ANSWER 4 years from the date of an incident
12.A broker in Texas who represents both the seller and the buyer in a
transaction with the written consent of both parties is a(n): - ANSWER
intermediary
13.what is often considered the most important test of a fixture? - ANSWER
intention of the parties
14.ownership with the most rights in land is called: - ANSWER fee simple
15.an easement can be terminated by: - ANSWER merger
16.something given in exchange for a promise is: - ANSWER consideration
17.All of the following methods of describing land qualify as legal descriptions
in a deed, EXCEPT: - ANSWER street address
,18.When an agent is authorized to carry out the affairs of a business for another,
this is: - ANSWER general agency
19.the listing that helps the broker avoid procuring cause lawsuits is: -
ANSWER The Exclusive Right to Sell Listing
20.which of the following is an example of an encroachment? - ANSWER a
neighbor's fence is on your land
21.TREC may assess an administrative penalty of up to $5000 per day for
violation of the License Act by: - ANSWER Any person in Texas, licensed
or unlicensed, who violates the Act
22.all of the following are true about a Texas homestead, except: - ANSWER
homestead protection can be waived in writing
23.ad valorem taxes: - ANSWER Are according to value, Create the highest
priority lien on real property, Are always paid first at a foreclosure sale
24.Which real estate contract is the exception to the Statute of Frauds? -
ANSWER a lease for one year or less
25.Factors that affect homeowners insurance premiums can include which of
the following? - ANSWER age and condition of the home, location, the
policyholder's claims history
26.Which of the following is required for a lot and block description of a
property? - ANSWER a recorded plat
, 27.integrity is best described as: - ANSWER The duty of a licensee to employ
prudence and caution so as to avoid misrepresentation in any way
28.When a holdover tenant refuses to leave and is not paying rent his interest in
the property is called: - ANSWER tenancy at sufferance
29.steering is: - ANSWER Directing buyers to or away from a particular
neighborhood based on protected categories
30.crops are: - ANSWER emblements
31.when a Texas real estate licensee is in inactive status: - ANSWER he is
responsible for renewal fees
32.permanent additions to land are called: - ANSWER improvements
33.When a property owner has the right to use water from a river or stream that
borders his land he is said to have: - ANSWER riparian rights
34.the recovery trust acount: - ANSWER (a) Protects consumers who suffer a
loss due to the illegal acts of licensees, Has two maximum payment
amounts: $50,000 per transaction and $100,000 per licensee, Must transfer
any amount in excess of $3.5 million to the State's General Fund
35.Which of the following terms describes the process of real property
becoming personal property? - ANSWER severance
Study Guide with 100% Correct Answers
Already Graded A+
1. All of the following violate the Texas Real Estate License Act, EXCEPT: -
ANSWER Disclosing all known facts pertaining to a property to a client
2. The aspect of the real estate business that is concerned with bringing
together the parties and completing the transactions is: - ANSWER
brokerage
3. An attorney from another state must have a Texas real estate license to
receive a commission for a real estate transaction in Texas. - ANSWER true
4. The easement created by the continued use of land without the permission of
the owner is: - ANSWER an easement by prescription
5. which of the following is true about tenancy in common? - ANSWER
ownership passes to heirs at probate
6. Texas is a community property state. What is true about community
property? - ANSWER Property inherited by one spouse can remain the
separate property of that spouse
7. When a contract is cancelled and a new contract replaces it, this is called: -
ANSWER novation
,8. Agency agreements such as listings and buyer representation agreements: -
ANSWER Are employment contracts, Should be in writing, Establish the
principal-client relationship
9. All of these are factors which can affect insurance premiums, EXCEPT: -
ANSWER policyholder's age
10.redlining is: - ANSWER The refusal to lend money in a particular area
because of location
11.How long does a consumer have to file a complaint with TREC against a
licensee? - ANSWER 4 years from the date of an incident
12.A broker in Texas who represents both the seller and the buyer in a
transaction with the written consent of both parties is a(n): - ANSWER
intermediary
13.what is often considered the most important test of a fixture? - ANSWER
intention of the parties
14.ownership with the most rights in land is called: - ANSWER fee simple
15.an easement can be terminated by: - ANSWER merger
16.something given in exchange for a promise is: - ANSWER consideration
17.All of the following methods of describing land qualify as legal descriptions
in a deed, EXCEPT: - ANSWER street address
,18.When an agent is authorized to carry out the affairs of a business for another,
this is: - ANSWER general agency
19.the listing that helps the broker avoid procuring cause lawsuits is: -
ANSWER The Exclusive Right to Sell Listing
20.which of the following is an example of an encroachment? - ANSWER a
neighbor's fence is on your land
21.TREC may assess an administrative penalty of up to $5000 per day for
violation of the License Act by: - ANSWER Any person in Texas, licensed
or unlicensed, who violates the Act
22.all of the following are true about a Texas homestead, except: - ANSWER
homestead protection can be waived in writing
23.ad valorem taxes: - ANSWER Are according to value, Create the highest
priority lien on real property, Are always paid first at a foreclosure sale
24.Which real estate contract is the exception to the Statute of Frauds? -
ANSWER a lease for one year or less
25.Factors that affect homeowners insurance premiums can include which of
the following? - ANSWER age and condition of the home, location, the
policyholder's claims history
26.Which of the following is required for a lot and block description of a
property? - ANSWER a recorded plat
, 27.integrity is best described as: - ANSWER The duty of a licensee to employ
prudence and caution so as to avoid misrepresentation in any way
28.When a holdover tenant refuses to leave and is not paying rent his interest in
the property is called: - ANSWER tenancy at sufferance
29.steering is: - ANSWER Directing buyers to or away from a particular
neighborhood based on protected categories
30.crops are: - ANSWER emblements
31.when a Texas real estate licensee is in inactive status: - ANSWER he is
responsible for renewal fees
32.permanent additions to land are called: - ANSWER improvements
33.When a property owner has the right to use water from a river or stream that
borders his land he is said to have: - ANSWER riparian rights
34.the recovery trust acount: - ANSWER (a) Protects consumers who suffer a
loss due to the illegal acts of licensees, Has two maximum payment
amounts: $50,000 per transaction and $100,000 per licensee, Must transfer
any amount in excess of $3.5 million to the State's General Fund
35.Which of the following terms describes the process of real property
becoming personal property? - ANSWER severance
