TX 30 Hour Principles of Real Estate I
Exam Questions With Complete Solution
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 Answers-Easement
Several brokerages in a certain area agree to stop running advertisements in a local
publication. What type of antitrust violation is this? - correct Answers-Group boycotting
Homestead exemptions ______ property taxes for all homeowners by protecting a
certain amount of a Texas home's value from tax. - correct Answers-Decrease
What is the length of the statute of limitations to file a fair housing complaint with HUD?
- correct Answers-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 Answers-Subchapter S corporation
Which of the following is a true statement about the Texas seller's disclosure of property
condition law? - correct Answers-It requires sellers of single-family residential properties
to disclose material facts to buyers.
Novation is... - correct Answers-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 Answers-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 Answers-When supply is high and
demand is low
Assignment of a contract is... - correct Answers-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 Answers-Market allocation
,Which of the following is a possible outcome if a brokerage is found guilty of violating
antitrust law? - correct Answers-The brokerage may have to undergo court-ordered
supervision for up to 10 years.
Net listings are... - correct Answers-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 Answers-Demand
will go up, creating a seller's market.
Which ownership type is defined by four unities: time, title, interest, and possession? -
correct Answers-Joint tenancy
Which of these statements best represents what happens after a federal fair housing
complaint is made? - correct Answers-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 Answers-Origination fee
How many forms of ID are required when appearing for your Texas licensing exam? -
correct Answers-Two
CAN-SPAM Act of 2003 - correct Answers-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 Answers-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 Answers-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 Answers-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 Answers-An option fee
Which of the following expenses of home ownership may be a tax deduction? - correct
Answers-Prepaid interest
, blockbusting - correct Answers-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 Answers-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 Answers-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 Answers-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 Answers-Estate/inheritance lien
Carl is a sales agent who works under the supervision of a broker. Which of the
following is true? - correct Answers-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 Answers-Civil Rights Act of 1866
In which of these situations would a listing be most likely to terminate due to listing
agreement expiration? - correct Answers-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 Answers-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
Answers-MLS Profile Sheet
What's inverse condemnation? - correct Answers-It occurs when government actions
deprive a property owner of the value of the property without offering just compensation.
Hal and Sara own a 212-acre farm. Their property is landlocked, but they have
permitted water rights to use the stream located six miles away for irrigation purposes.
What kind of water rights do they hold? - correct Answers-Prior appropriation
Exam Questions With Complete Solution
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 Answers-Easement
Several brokerages in a certain area agree to stop running advertisements in a local
publication. What type of antitrust violation is this? - correct Answers-Group boycotting
Homestead exemptions ______ property taxes for all homeowners by protecting a
certain amount of a Texas home's value from tax. - correct Answers-Decrease
What is the length of the statute of limitations to file a fair housing complaint with HUD?
- correct Answers-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 Answers-Subchapter S corporation
Which of the following is a true statement about the Texas seller's disclosure of property
condition law? - correct Answers-It requires sellers of single-family residential properties
to disclose material facts to buyers.
Novation is... - correct Answers-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 Answers-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 Answers-When supply is high and
demand is low
Assignment of a contract is... - correct Answers-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 Answers-Market allocation
,Which of the following is a possible outcome if a brokerage is found guilty of violating
antitrust law? - correct Answers-The brokerage may have to undergo court-ordered
supervision for up to 10 years.
Net listings are... - correct Answers-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 Answers-Demand
will go up, creating a seller's market.
Which ownership type is defined by four unities: time, title, interest, and possession? -
correct Answers-Joint tenancy
Which of these statements best represents what happens after a federal fair housing
complaint is made? - correct Answers-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 Answers-Origination fee
How many forms of ID are required when appearing for your Texas licensing exam? -
correct Answers-Two
CAN-SPAM Act of 2003 - correct Answers-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 Answers-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 Answers-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 Answers-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 Answers-An option fee
Which of the following expenses of home ownership may be a tax deduction? - correct
Answers-Prepaid interest
, blockbusting - correct Answers-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 Answers-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 Answers-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 Answers-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 Answers-Estate/inheritance lien
Carl is a sales agent who works under the supervision of a broker. Which of the
following is true? - correct Answers-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 Answers-Civil Rights Act of 1866
In which of these situations would a listing be most likely to terminate due to listing
agreement expiration? - correct Answers-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 Answers-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
Answers-MLS Profile Sheet
What's inverse condemnation? - correct Answers-It occurs when government actions
deprive a property owner of the value of the property without offering just compensation.
Hal and Sara own a 212-acre farm. Their property is landlocked, but they have
permitted water rights to use the stream located six miles away for irrigation purposes.
What kind of water rights do they hold? - correct Answers-Prior appropriation
