TEXAS PRINCIPLES OF REAL ESTATE EXAM 1 2024 AND STUDY
GUIDE 450 QUESTIONS WITH DETAILED VERIFIED SOLUTIONS
(100% CORRECT) A+!!!
What kind of professionals manage the legal aspects of a development project? -
(correct answer) Real Estate attorneys, title companies, surveyors, property
insurance companies and government regulatory officials
What types of professionals are involved in the transfer of rights and interest in Real
Estate? - (correct answer) Titles companies, Real Estate Brokers/ Sales Persons,
Mortgage Brokers, Mortgage Bankers, Appraisers, Insurers
Property is classified into what three types? - (correct answer) Residential,
Commercial, and Investment properties
Real Estate Agents in Texas would benefit from belonging to which two trade
organizations? - (correct answer) NAR - National Association of Realtors
Texas Assoc. of Realtors
If a broker chooses to specialize by geographic area, how might the area be defined? -
(correct answer) Natural Barriers, Streets/ Highways, By a certain set of Sub
Divisions
What are some of the individual brokerage services that one might perform for a pre-
set fee? - (correct answer) Comparative price analysis, prospect screening, site
analysis, Database search
The laws most relevant to agents and brokers relate to what topics? - (correct
answer) Agency, Contracts, Disclosure, Environmental, Impact, Fair housing,
What are the four sources of real estate law? - (correct answer)
FederalGovernment, State Government, Local Government, Courts
Members of NAR (National Association of Realtors) Are Known as?? - (correct
answer) Realtors
What are the two types of Real Estate Managers? - (correct answer) Property
Managers and Asset Managers
Which action is often used to define specific aspects of newly created law? - (correct
answer) Court Decision
Market Equilibrium: - (correct answer) a market tends toward a state of
equilibrium in which 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.
What is the definition of value as it applies to real estate? - (correct answer) The
present worth of future benefits that would be gained from owning real property
How do elements of supply, demand and price interact in the market? - (correct
answer) In a continuous manner
What type of Real Estate User would be interested in the level of trade area
competition? - (correct answer) Retail User
If Price Decreases? - (correct answer) Demand is declining in relation to supply
Types of Real Estate Users - (correct answer) Residential, Retail Industrial, office
Residential User:
Retail User:
Office:
Industrial User: - (correct answer) 1) Quality of life, neighborhood, amenities,price
2) Trade, area, sales, competition
3)Efficiency, costs of Occupancy, Functionality
4) Labor pool, availability, supplies, Distribution Channels
How Many members in TREC ( Texas Real Estate Commission) - (correct answer)
Nine members - six licensed brokers and 3 members of the public
How long are the terms of TREC commission Members? - (correct answer)
Staggerd 6 Year Terms,
How long does the term of a commission member last and when does a term expire? -
(correct answer) Commission members serve staggered six-year terms with the
terms of three members expiring January 31 of each odd-numbered year.
When will a court order a payment to an aggrieved party from the Recovery Fund? -
(correct answer) If a licensee cannot pay the full amount of the judgment ordered by
the court, the party may apply to the court in which the judgment was rendered for an
order to pay the balance due from the real estate recovery fund.
Three parties that don't need a license to sell Real Estate - (correct answer)
Attorneys at law, An Auctioneer, Receivers/ trustees of Bankruptcy working under
court order
Which of these persons would need a real estate license?
, • A college graduate advertises he will sell properties of other students to raise tuition
money for college.
• A person receives and delivers a $500,000 deposit to her principal broker from a
buyer.
• A company vice president leases one of the company's warehouses to a storage firm
- (correct answer) A college graduate advertises he will sell properties of other
students to raise tuition money for college.
Which of these persons would need a real estate license?
• A homeowner advertises to lease his improved basement to a college student.
• A senior citizen charges an advance fee for referring an individual to her son who
owns a leasing office in town.
• An attorney licensed in Texas advises a client about how to minimize liability in an
upcoming Texas real estate transaction. - (correct answer) A senior citizen
charges an advance fee for referring an individual to her son who owns a leasing office
in town
What is the experience requirement for an applicant for a broker's license? -
(correct answer) At least four years of active experience in Texas as a license holder
during the 60 months preceding the date the application is filed
How many members in TREC Commission? - (correct answer) 9 board members: 6
members from real estate industry, 3 members from general public
• Appointed by governor
6 year terms
Payments from the Trust Account may not exceed?
(For claims arising out of a single transaction)/ (Against a single Licensee) -
(correct answer) 50,000 and 100,000
broker - (correct answer) an individual who performs certain real estate services
for another party for compensation. The broker is
The Education Standards advisory committee has how many members? - (correct
answer) 12, (appointed by the commission) Serve 2 year terms
Payments from the trust account for claims based on judgements against a single
licensee may not exceed a total of what amount? - (correct answer) $100,000
A licensee applicant must provide fingerprints to the DPS within? - (correct answer)
6 months of filing
The TREC consists of? - (correct answer) 9 members
GUIDE 450 QUESTIONS WITH DETAILED VERIFIED SOLUTIONS
(100% CORRECT) A+!!!
What kind of professionals manage the legal aspects of a development project? -
(correct answer) Real Estate attorneys, title companies, surveyors, property
insurance companies and government regulatory officials
What types of professionals are involved in the transfer of rights and interest in Real
Estate? - (correct answer) Titles companies, Real Estate Brokers/ Sales Persons,
Mortgage Brokers, Mortgage Bankers, Appraisers, Insurers
Property is classified into what three types? - (correct answer) Residential,
Commercial, and Investment properties
Real Estate Agents in Texas would benefit from belonging to which two trade
organizations? - (correct answer) NAR - National Association of Realtors
Texas Assoc. of Realtors
If a broker chooses to specialize by geographic area, how might the area be defined? -
(correct answer) Natural Barriers, Streets/ Highways, By a certain set of Sub
Divisions
What are some of the individual brokerage services that one might perform for a pre-
set fee? - (correct answer) Comparative price analysis, prospect screening, site
analysis, Database search
The laws most relevant to agents and brokers relate to what topics? - (correct
answer) Agency, Contracts, Disclosure, Environmental, Impact, Fair housing,
What are the four sources of real estate law? - (correct answer)
FederalGovernment, State Government, Local Government, Courts
Members of NAR (National Association of Realtors) Are Known as?? - (correct
answer) Realtors
What are the two types of Real Estate Managers? - (correct answer) Property
Managers and Asset Managers
Which action is often used to define specific aspects of newly created law? - (correct
answer) Court Decision
Market Equilibrium: - (correct answer) a market tends toward a state of
equilibrium in which 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.
What is the definition of value as it applies to real estate? - (correct answer) The
present worth of future benefits that would be gained from owning real property
How do elements of supply, demand and price interact in the market? - (correct
answer) In a continuous manner
What type of Real Estate User would be interested in the level of trade area
competition? - (correct answer) Retail User
If Price Decreases? - (correct answer) Demand is declining in relation to supply
Types of Real Estate Users - (correct answer) Residential, Retail Industrial, office
Residential User:
Retail User:
Office:
Industrial User: - (correct answer) 1) Quality of life, neighborhood, amenities,price
2) Trade, area, sales, competition
3)Efficiency, costs of Occupancy, Functionality
4) Labor pool, availability, supplies, Distribution Channels
How Many members in TREC ( Texas Real Estate Commission) - (correct answer)
Nine members - six licensed brokers and 3 members of the public
How long are the terms of TREC commission Members? - (correct answer)
Staggerd 6 Year Terms,
How long does the term of a commission member last and when does a term expire? -
(correct answer) Commission members serve staggered six-year terms with the
terms of three members expiring January 31 of each odd-numbered year.
When will a court order a payment to an aggrieved party from the Recovery Fund? -
(correct answer) If a licensee cannot pay the full amount of the judgment ordered by
the court, the party may apply to the court in which the judgment was rendered for an
order to pay the balance due from the real estate recovery fund.
Three parties that don't need a license to sell Real Estate - (correct answer)
Attorneys at law, An Auctioneer, Receivers/ trustees of Bankruptcy working under
court order
Which of these persons would need a real estate license?
, • A college graduate advertises he will sell properties of other students to raise tuition
money for college.
• A person receives and delivers a $500,000 deposit to her principal broker from a
buyer.
• A company vice president leases one of the company's warehouses to a storage firm
- (correct answer) A college graduate advertises he will sell properties of other
students to raise tuition money for college.
Which of these persons would need a real estate license?
• A homeowner advertises to lease his improved basement to a college student.
• A senior citizen charges an advance fee for referring an individual to her son who
owns a leasing office in town.
• An attorney licensed in Texas advises a client about how to minimize liability in an
upcoming Texas real estate transaction. - (correct answer) A senior citizen
charges an advance fee for referring an individual to her son who owns a leasing office
in town
What is the experience requirement for an applicant for a broker's license? -
(correct answer) At least four years of active experience in Texas as a license holder
during the 60 months preceding the date the application is filed
How many members in TREC Commission? - (correct answer) 9 board members: 6
members from real estate industry, 3 members from general public
• Appointed by governor
6 year terms
Payments from the Trust Account may not exceed?
(For claims arising out of a single transaction)/ (Against a single Licensee) -
(correct answer) 50,000 and 100,000
broker - (correct answer) an individual who performs certain real estate services
for another party for compensation. The broker is
The Education Standards advisory committee has how many members? - (correct
answer) 12, (appointed by the commission) Serve 2 year terms
Payments from the trust account for claims based on judgements against a single
licensee may not exceed a total of what amount? - (correct answer) $100,000
A licensee applicant must provide fingerprints to the DPS within? - (correct answer)
6 months of filing
The TREC consists of? - (correct answer) 9 members
