TEXAS PRINCIPLES OF REAL ESTATE 1 EXAM LATEST , PRACTICE
QUESTIONS AND CORRECT ANSWERS
Under what conditions can a supervising broker appoint a license holder associated
with the broker to represent one party to a real estate transaction? - ANSWER: With
written consent of all parties
When must a seller's agent provide a written statement about brokerage services to
a party? - ANSWER: At the time of the first substantive dialogue with the party
When must a buyer's agent provide a written statement about brokerage services to
a party? - ANSWER: At first contact with the seller, landlord, or either party's agent
What principles govern an agency relationship? - ANSWER: Both parties must
consent to the relationship.
Both parties must agree to form the relationship.
The relationship is fiduciary - meaning the agent owes certain duties to the
principal
Implied Agency - ANSWER: when the actions of the parties indicate that they have
mutually consented to an agency. The persons involved may not have consciously
planned to form an agency relationship. However, their actions may
unintentionally, inadvertently or accidentally form the relationship.
In order to generate business, in what four skill areas must a broker be proficient? -
ANSWER: Obtaining a client listing,
Marketing a listing,
Facilitating the closing of a transaction &
Managing market information
What is a salesperson not allowed to do? - ANSWER: Bind a client to any contract
Receive compensation directly from a client
Accept a listing or deposit that is not in the name of the broker
What is an agent's foremost duty following acceptance of an offer? - ANSWER: To
submit the contract and the earnest money to the employing broker without delay
What's the penalty for violating the Sherman Antitrust Act? - ANSWER: Individual
violators of the Sherman Act can be fined up to $350,000 and sentenced to up to 3
years in federal prison for each offense; corporations can be fined up to $10 million
for each offense.
However, the Criminal Antitrust Penalty Enhancement and Reform Act of 2004
increased the maximum criminal penalty for individuals to 10 years' imprisonment
, and a $1 million fine, and the maximum penalty for corporations to a $100 million
fine.
Broker Jed tells buyer Sam that when he signs his purchase agreement he must also
purchase a subscription to Jed's monthly newsletter. What would you say about this?
- ANSWER: This is a tie-in arrangement which is prohibited by the Sherman
Antitrust Act.
How did the courts make changes to the caveat emptor principle to better protect
consumers? - ANSWER: By making it a requirement for sellers to provide buyers
with a Sellers Disclosure Notice prior to the effective date of a contract and by
obligating licensees to disclose any known or latent defects in a property.
The Texas Deceptive Trade Practices-Consumer Protection Act applies to what
aspects of real estate? - ANSWER: Advertising, offering for sale, selling, or leasing of
any real or personal property
How long does a consumer have to bring a DTPA suit? - ANSWER: within two (2)
years after the deceptive act occurred (or within two (2) years after the consumer
discovered, or should have discovered, the deceptive act.
What is significant about the Fair Housing Amendments Act of 1988? - ANSWER: It
added handicap and familial status to the list of protected classes.
If a person feels like he or she has been discriminated against, how long does that
person have to file a complaint? - ANSWER: With HUD - within one year of the
alleged act
In state or federal court - within two years of the alleged act
What was the significance of the Plessy v. Ferguson Supreme Court decision of 1896?
- ANSWER: Allowed the use of "separate but equal" racially-segregated
accommodations and facilities. In other words, as long as separate housing for
blacks and whites were judged to be equal, they were legal.
Why is it important for licensees to understand the Americans with Disabilities Act? -
ANSWER: Brokers need to evaluate whether they need to make physical changes
to their office space to comply with the law.
Licensees should inform their commercial and investor clients of the need to have
their leases professionally evaluated and their offices inspected for compliance.
What is the definition of discriminatory advertising? - ANSWER: Advertising that
indicates a preference, limitation or discrimination based on race, color, religion,
handicap, sex, familial status or national origin.
With what agency can discrimination complaints be filed in Texas? - ANSWER: Texas
Workforce Commission Civil Rights Division
QUESTIONS AND CORRECT ANSWERS
Under what conditions can a supervising broker appoint a license holder associated
with the broker to represent one party to a real estate transaction? - ANSWER: With
written consent of all parties
When must a seller's agent provide a written statement about brokerage services to
a party? - ANSWER: At the time of the first substantive dialogue with the party
When must a buyer's agent provide a written statement about brokerage services to
a party? - ANSWER: At first contact with the seller, landlord, or either party's agent
What principles govern an agency relationship? - ANSWER: Both parties must
consent to the relationship.
Both parties must agree to form the relationship.
The relationship is fiduciary - meaning the agent owes certain duties to the
principal
Implied Agency - ANSWER: when the actions of the parties indicate that they have
mutually consented to an agency. The persons involved may not have consciously
planned to form an agency relationship. However, their actions may
unintentionally, inadvertently or accidentally form the relationship.
In order to generate business, in what four skill areas must a broker be proficient? -
ANSWER: Obtaining a client listing,
Marketing a listing,
Facilitating the closing of a transaction &
Managing market information
What is a salesperson not allowed to do? - ANSWER: Bind a client to any contract
Receive compensation directly from a client
Accept a listing or deposit that is not in the name of the broker
What is an agent's foremost duty following acceptance of an offer? - ANSWER: To
submit the contract and the earnest money to the employing broker without delay
What's the penalty for violating the Sherman Antitrust Act? - ANSWER: Individual
violators of the Sherman Act can be fined up to $350,000 and sentenced to up to 3
years in federal prison for each offense; corporations can be fined up to $10 million
for each offense.
However, the Criminal Antitrust Penalty Enhancement and Reform Act of 2004
increased the maximum criminal penalty for individuals to 10 years' imprisonment
, and a $1 million fine, and the maximum penalty for corporations to a $100 million
fine.
Broker Jed tells buyer Sam that when he signs his purchase agreement he must also
purchase a subscription to Jed's monthly newsletter. What would you say about this?
- ANSWER: This is a tie-in arrangement which is prohibited by the Sherman
Antitrust Act.
How did the courts make changes to the caveat emptor principle to better protect
consumers? - ANSWER: By making it a requirement for sellers to provide buyers
with a Sellers Disclosure Notice prior to the effective date of a contract and by
obligating licensees to disclose any known or latent defects in a property.
The Texas Deceptive Trade Practices-Consumer Protection Act applies to what
aspects of real estate? - ANSWER: Advertising, offering for sale, selling, or leasing of
any real or personal property
How long does a consumer have to bring a DTPA suit? - ANSWER: within two (2)
years after the deceptive act occurred (or within two (2) years after the consumer
discovered, or should have discovered, the deceptive act.
What is significant about the Fair Housing Amendments Act of 1988? - ANSWER: It
added handicap and familial status to the list of protected classes.
If a person feels like he or she has been discriminated against, how long does that
person have to file a complaint? - ANSWER: With HUD - within one year of the
alleged act
In state or federal court - within two years of the alleged act
What was the significance of the Plessy v. Ferguson Supreme Court decision of 1896?
- ANSWER: Allowed the use of "separate but equal" racially-segregated
accommodations and facilities. In other words, as long as separate housing for
blacks and whites were judged to be equal, they were legal.
Why is it important for licensees to understand the Americans with Disabilities Act? -
ANSWER: Brokers need to evaluate whether they need to make physical changes
to their office space to comply with the law.
Licensees should inform their commercial and investor clients of the need to have
their leases professionally evaluated and their offices inspected for compliance.
What is the definition of discriminatory advertising? - ANSWER: Advertising that
indicates a preference, limitation or discrimination based on race, color, religion,
handicap, sex, familial status or national origin.
With what agency can discrimination complaints be filed in Texas? - ANSWER: Texas
Workforce Commission Civil Rights Division
