TEXAS PRINCIPLES OF REAL ESTATE 1 FINAL
EXAM, PRACTICE EXAM AND STUDY GUIDE
NEWEST 2024 ALL IN ONE DOCUMENT
COMPLETE COURSE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS|ALREADY
GRADED A+.
If a salesperson has no interest in opening their own brokerage, why
might they still want to get a broker's license? - ANSWER>>> for
marketing purposes
How often must a real estate license be renewed? - ANSWER>>> A
real estate license must be renewed every two years.
What is the name given to the duties owed by agents to their clients? -
ANSWER>>> The duties owed by agents to their clients are known as
fiduciary duties.
OLD CAR - ANSWER>>> Obedience (if legal)
Loyalty (100%) - ANSWER>>>
Disclosure (full) - ANSWER>>>
Confidentiality (forever) - ANSWER>>>
Accounting (forever) - ANSWER>>>
Reasonable care - ANSWER>>>
In an agency relationship, the agent owes the principal the fiduciary
duties of loyalty, obedience, accounting, confidentiality, reasonable
care, and what else? - ANSWER>>> Disclosure
,Obedience - ANSWER>>> -is only required if legal
-the principal is the ultimate decision-maker - ANSWER>>>
Loyalty - ANSWER>>> -the buyer's agent should get the lowest price
possible, even if it means less commission
-the principal's best interests come before the agent's interests -
ANSWER>>>
Disclosure - ANSWER>>> -if it will help the client, the agent should
share it
-including sharing of material facts about a property - ANSWER>>>
Reasonable Care - ANSWER>>> -standard is based on what most
agents would do
-assumes agent expertise will be used in handling client's concerns -
ANSWER>>>
Which of the following is an example of misrepresentation? -
ANSWER>>> An agent thinks there are hardwood floors beneath the
carpet of a property and implies to the buyer that there are, when in
fact, there are not.
Fraud vs. Misrepresentation - ANSWER>>> Fraud is intentional;
misrepresentation is not. Fraud generally includes both affirmative
misrepresentations and affirmative concealment, and the person
making the misrepresentation is aware of the true facts.
Does misrepresentation require malicious or deceptive intent? -
ANSWER>>> No, the seller, broker, or agent may be liable for
misrepresentation even without malicious or deceptive intent.
,Which one of the following actions is most likely to be a violation of the
Texas Deceptive Trade Practices-Consumer Protection Act? -
ANSWER>>> The Deceptive Trade Practices Act prohibits the license
holder from knowingly and/or intentionally deceiving the consumer in
the selling or leasing of any real property. Providing a list of
professionals to choose from does not violate the law.
Continue - ANSWER>>>
DTPA - ANSWER>>> Texas Deceptive Trade Practices-Consumer
Protection Act?
What is the BEST way to avoid giving misinformation (and
consequently, violating the Texas Deceptive Trade Practices-
Consumer Protection Act)? - ANSWER>>> Cite a source for any
information you give a client about a property
Which of the following is NOT true regarding a license holder's
obligation to disclose a property defect: - ANSWER>>> -Only if the
Buyer asks
-A license holder is required to disclose a property defect if the seller
has disclosed the defect at all. - ANSWER>>>
Why should real estate agents refrain from giving legal advice to
clients? - ANSWER>>> Agents aren't licensed to give legal advice
and if they do, they could be held liable
Special Agency - ANSWER>>> Broker & Client
General Agency - ANSWER>>> Broker & Sales Agent
Universal Agency - ANSWER>>> Child & Parent or Executor of will
IABS - ANSWER>>> Information About Brokerage Services
, What is the definition of misrepresentation? - ANSWER>>>
Misrepresentation is an unintentional mistake, written or spoken.
Using the general terms of agency law, which party is represented by
another party? - ANSWER>>> Principal
Which parties need to be told if an agent is representing anyone? -
ANSWER>>> A license holder must disclose orally or in writing to
others of their representation of a party to a real estate transaction at
the first contact.
Was Tom right in discouraging his clients from taking the closing
documents to an attorney? - ANSWER>>> No, you should never
discourage clients from seeking the advice from an attorney
Which statement is NOT true regarding death on a property? -
ANSWER>>> Agents are able to disclose deaths at their discretion
Was it a violation for Tom to agree to inquire about the previous
owner's death? - ANSWER>>> Yes, Tom's inquiry was in violation of
Fair Housing Laws
When asked to inquire about the previous owner's death, how should
Tom have responded? - ANSWER>>> He should tell his clients he's
legally not allowed to inquire about the death
Which of the following is NOT one of the unethical or illegal activities
performed by Ulysses? - ANSWER>>> Acting as a real estate agent
without a license
Since Ulysses said he would take care of closing, did he technically do
anything wrong with Sam's money? - ANSWER>>> Yes, agents
should never hold onto money that does not belong to them.
Ulysses did nothing wrong in instructing the mortgage company to
take money out of Sam's account. - ANSWER>>> FALSE
EXAM, PRACTICE EXAM AND STUDY GUIDE
NEWEST 2024 ALL IN ONE DOCUMENT
COMPLETE COURSE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS|ALREADY
GRADED A+.
If a salesperson has no interest in opening their own brokerage, why
might they still want to get a broker's license? - ANSWER>>> for
marketing purposes
How often must a real estate license be renewed? - ANSWER>>> A
real estate license must be renewed every two years.
What is the name given to the duties owed by agents to their clients? -
ANSWER>>> The duties owed by agents to their clients are known as
fiduciary duties.
OLD CAR - ANSWER>>> Obedience (if legal)
Loyalty (100%) - ANSWER>>>
Disclosure (full) - ANSWER>>>
Confidentiality (forever) - ANSWER>>>
Accounting (forever) - ANSWER>>>
Reasonable care - ANSWER>>>
In an agency relationship, the agent owes the principal the fiduciary
duties of loyalty, obedience, accounting, confidentiality, reasonable
care, and what else? - ANSWER>>> Disclosure
,Obedience - ANSWER>>> -is only required if legal
-the principal is the ultimate decision-maker - ANSWER>>>
Loyalty - ANSWER>>> -the buyer's agent should get the lowest price
possible, even if it means less commission
-the principal's best interests come before the agent's interests -
ANSWER>>>
Disclosure - ANSWER>>> -if it will help the client, the agent should
share it
-including sharing of material facts about a property - ANSWER>>>
Reasonable Care - ANSWER>>> -standard is based on what most
agents would do
-assumes agent expertise will be used in handling client's concerns -
ANSWER>>>
Which of the following is an example of misrepresentation? -
ANSWER>>> An agent thinks there are hardwood floors beneath the
carpet of a property and implies to the buyer that there are, when in
fact, there are not.
Fraud vs. Misrepresentation - ANSWER>>> Fraud is intentional;
misrepresentation is not. Fraud generally includes both affirmative
misrepresentations and affirmative concealment, and the person
making the misrepresentation is aware of the true facts.
Does misrepresentation require malicious or deceptive intent? -
ANSWER>>> No, the seller, broker, or agent may be liable for
misrepresentation even without malicious or deceptive intent.
,Which one of the following actions is most likely to be a violation of the
Texas Deceptive Trade Practices-Consumer Protection Act? -
ANSWER>>> The Deceptive Trade Practices Act prohibits the license
holder from knowingly and/or intentionally deceiving the consumer in
the selling or leasing of any real property. Providing a list of
professionals to choose from does not violate the law.
Continue - ANSWER>>>
DTPA - ANSWER>>> Texas Deceptive Trade Practices-Consumer
Protection Act?
What is the BEST way to avoid giving misinformation (and
consequently, violating the Texas Deceptive Trade Practices-
Consumer Protection Act)? - ANSWER>>> Cite a source for any
information you give a client about a property
Which of the following is NOT true regarding a license holder's
obligation to disclose a property defect: - ANSWER>>> -Only if the
Buyer asks
-A license holder is required to disclose a property defect if the seller
has disclosed the defect at all. - ANSWER>>>
Why should real estate agents refrain from giving legal advice to
clients? - ANSWER>>> Agents aren't licensed to give legal advice
and if they do, they could be held liable
Special Agency - ANSWER>>> Broker & Client
General Agency - ANSWER>>> Broker & Sales Agent
Universal Agency - ANSWER>>> Child & Parent or Executor of will
IABS - ANSWER>>> Information About Brokerage Services
, What is the definition of misrepresentation? - ANSWER>>>
Misrepresentation is an unintentional mistake, written or spoken.
Using the general terms of agency law, which party is represented by
another party? - ANSWER>>> Principal
Which parties need to be told if an agent is representing anyone? -
ANSWER>>> A license holder must disclose orally or in writing to
others of their representation of a party to a real estate transaction at
the first contact.
Was Tom right in discouraging his clients from taking the closing
documents to an attorney? - ANSWER>>> No, you should never
discourage clients from seeking the advice from an attorney
Which statement is NOT true regarding death on a property? -
ANSWER>>> Agents are able to disclose deaths at their discretion
Was it a violation for Tom to agree to inquire about the previous
owner's death? - ANSWER>>> Yes, Tom's inquiry was in violation of
Fair Housing Laws
When asked to inquire about the previous owner's death, how should
Tom have responded? - ANSWER>>> He should tell his clients he's
legally not allowed to inquire about the death
Which of the following is NOT one of the unethical or illegal activities
performed by Ulysses? - ANSWER>>> Acting as a real estate agent
without a license
Since Ulysses said he would take care of closing, did he technically do
anything wrong with Sam's money? - ANSWER>>> Yes, agents
should never hold onto money that does not belong to them.
Ulysses did nothing wrong in instructing the mortgage company to
take money out of Sam's account. - ANSWER>>> FALSE
