Gold Coast School Real Estate Exam – 2025
Actual Exam Questions and Correct Answers
Brokerage - answers The aspect of the real estate business that pertains to overseeing
the needs of the parties and completing a transaction
Property Managers are generally responsible for the following - answers Day to Day
operations, Maintenance and Tenant Relations
RMLO - answers Mortgage Brokers are known as
NAR - answers The largest trade organization representing real estate professionals is
Value - answers A fair return or equivalent in goods, services, or money for something
exchanged
BOMA - answers Building Owners & Managers Association (oldest organization)
Benefits of home ownership - answers Occupancy, Tax Benefits, Pride, Security,
Investment
Federal Housing Administration - answers In 1934 the US Government's first major
direct involvement in the residential finance market
Physical Characteristic of Land: Indestructibility or Durability - answers Land cannot be
destroyed
Physical Characteristic of Land: Immobility - answers Land cannot be moved
Physical Characteristic of Land: Nonhomogeneity - answers No two parcels of land are
the same
Economic Characteristic of Land: Scarcity - answers The theory of Supply & Demand
Economic Characteristic of Land: Modification - answers Value is affected by man made
changes to the land
Economic Characteristic of Land: Fixity - answers Land, and additions to the land such
as buildings, take long periods of time to pay for themselves
Economic Characteristic of Land: Situs - answers Location of the property or land from
an economic, not a geographic viewpoint
,Supply & Demand - answers When the demand is high and the supply is low, the prices
go up. Likewise, prices decline when the supply is high and the demand is low
Supply can be restricted by a number of factors including: - answers Land costs,
Construction, Taxation, Economics and Local government building codes and zoning
ordanances
Demand is affected by factors including: - answers Growth in employment,
Transportation systems, Personal preference, Availability of credit and Federal
government policy
Size of the Employment Market - answers The single most important determinant of
value in residential real estate
Common Law - answers Body of law developed in England and is based on "common
sense" and local customs
Statutory Law - answers Body of laws and regulations enacted by federal and state
legislative bodies - law based on legislation
TRELA - answers The Texas Legislature passed the Texas Real Estate License Act in
1939
The purpose of TRELA is to - answers Protect the public against unscrupulous brokers
and sales agents
TREC - answers The Texas Real Estate Commission was created by the legislature in
1949
Nine members commission (TREC) - answers Six members are mortgage brokers and
three public members
Appraisal - answers An opinion of value
Agency agreement - answers The level of service provided to a buyer, seller, landlord or
tenant is determined by the presence or lack of an ___________ with the broker
Residential Subdivisions - answers As job opportunities expand, raw land is developed
into __________
SIOR - answers Designees can hold the following specialty designations: industrial,
office, sales manager, executive manager, or advisory service
Long-term mortgages - answers During periods of high inflation, lenders are less willing
to commit to _________ with the fear that holding a portfolio of below market mortgages
is a risky business for them
,Municipality - answers The authority that local government has to pass and enforce
building and zoning codes has a profound impact on the type of and location of
development with a __________
Appraisal is the business of: - answers Providing a professional opinion of the value of
real property
NAR - answers A professional association whose local affiliates own and operate MLS
systems throughout the US
RMLOs in Texas are licensed through the: - answers Texas Department of Savings and
Mortgage Lending
Subsurface rights - answers Rights that include ownership of oil, gas and other minerals
Rights that are conveyed in a cell tower lease include: - answers Surface and Air
Improvement - answers Any man made addition to the land that is permanent is known
as __________
Personal Property - answers Things that are of a temporary or movable nature are
known as
Modular Homes - answers Factory built housing that is built to local building codes
include:
Air Rights - answers Extend above the surface without limitation - include, cell tower
leases, condominiums, outdoor advertising
The Texas Railroad Commission - answers Controls all drilling for oil and gas in the
state and regulates all drilling activity in the state
Riparian rights - answers Rights that an owner has to use water from a river or a stream
on or next to a property
Littoral rights - answers Rights to use water from a lake, ocean or sea on or next to a
property
Accretion - answers addition to the land by the action of water
Alluvion - answers soil added to the land by accretion
Avulsion - answers water washes away the land from one property and deposits it on
another
, Reliction - answers water recedes and dry land appears
Personality or Chattel - answers Also known as personal property
Fixture - answers Personal property that has become attached to the land in such a way
as to become real property
Annexation - answers The process of attaching personal property so that it becomes
real property
Severance - answers Removing fixtures by detaching or uninstalling them to create
personal property
Emblement - answers Annual crops produced with labor fall into this special category.
Even though they are attached to the land, they are personal property.
TDHCA - answers Texas Department of Housing and Community Affairs - regulates
manufactured homes
Accession - answers If trade fixtures are not removed prior to lease expiration, they
become the property of the landlord
Prior Appropriation - answers Theory of water law based on the idea that "first in time is
first in right"
Manufactured Home - answers A home built in a factory according to a federal building
code administered by the US Department of Housing and Urban Development (HUD)
Surface Waiver - answers Could be used if there is no present lease in place and the
seller owns the Mineral Estate
Real Property - answers Broader term that goes beyond the physical real estate and
includes the rights that a person has in the land
Real Estate includes: - answers All that is encompassed in land, with the addition of all
man made additions to the land (improvements) such as roads, houses and commercial
buildings
Bundle of Rights - answers Rights associated with the ownership of real property are
often referred to as the owners __________
Severable - answers Surface, subsurface, and air rights are said to be
Capital Gain - answers The gain on the sale of an asset for the seller
Single Family Home - answers Embodies the "American Dream" of home ownership
Actual Exam Questions and Correct Answers
Brokerage - answers The aspect of the real estate business that pertains to overseeing
the needs of the parties and completing a transaction
Property Managers are generally responsible for the following - answers Day to Day
operations, Maintenance and Tenant Relations
RMLO - answers Mortgage Brokers are known as
NAR - answers The largest trade organization representing real estate professionals is
Value - answers A fair return or equivalent in goods, services, or money for something
exchanged
BOMA - answers Building Owners & Managers Association (oldest organization)
Benefits of home ownership - answers Occupancy, Tax Benefits, Pride, Security,
Investment
Federal Housing Administration - answers In 1934 the US Government's first major
direct involvement in the residential finance market
Physical Characteristic of Land: Indestructibility or Durability - answers Land cannot be
destroyed
Physical Characteristic of Land: Immobility - answers Land cannot be moved
Physical Characteristic of Land: Nonhomogeneity - answers No two parcels of land are
the same
Economic Characteristic of Land: Scarcity - answers The theory of Supply & Demand
Economic Characteristic of Land: Modification - answers Value is affected by man made
changes to the land
Economic Characteristic of Land: Fixity - answers Land, and additions to the land such
as buildings, take long periods of time to pay for themselves
Economic Characteristic of Land: Situs - answers Location of the property or land from
an economic, not a geographic viewpoint
,Supply & Demand - answers When the demand is high and the supply is low, the prices
go up. Likewise, prices decline when the supply is high and the demand is low
Supply can be restricted by a number of factors including: - answers Land costs,
Construction, Taxation, Economics and Local government building codes and zoning
ordanances
Demand is affected by factors including: - answers Growth in employment,
Transportation systems, Personal preference, Availability of credit and Federal
government policy
Size of the Employment Market - answers The single most important determinant of
value in residential real estate
Common Law - answers Body of law developed in England and is based on "common
sense" and local customs
Statutory Law - answers Body of laws and regulations enacted by federal and state
legislative bodies - law based on legislation
TRELA - answers The Texas Legislature passed the Texas Real Estate License Act in
1939
The purpose of TRELA is to - answers Protect the public against unscrupulous brokers
and sales agents
TREC - answers The Texas Real Estate Commission was created by the legislature in
1949
Nine members commission (TREC) - answers Six members are mortgage brokers and
three public members
Appraisal - answers An opinion of value
Agency agreement - answers The level of service provided to a buyer, seller, landlord or
tenant is determined by the presence or lack of an ___________ with the broker
Residential Subdivisions - answers As job opportunities expand, raw land is developed
into __________
SIOR - answers Designees can hold the following specialty designations: industrial,
office, sales manager, executive manager, or advisory service
Long-term mortgages - answers During periods of high inflation, lenders are less willing
to commit to _________ with the fear that holding a portfolio of below market mortgages
is a risky business for them
,Municipality - answers The authority that local government has to pass and enforce
building and zoning codes has a profound impact on the type of and location of
development with a __________
Appraisal is the business of: - answers Providing a professional opinion of the value of
real property
NAR - answers A professional association whose local affiliates own and operate MLS
systems throughout the US
RMLOs in Texas are licensed through the: - answers Texas Department of Savings and
Mortgage Lending
Subsurface rights - answers Rights that include ownership of oil, gas and other minerals
Rights that are conveyed in a cell tower lease include: - answers Surface and Air
Improvement - answers Any man made addition to the land that is permanent is known
as __________
Personal Property - answers Things that are of a temporary or movable nature are
known as
Modular Homes - answers Factory built housing that is built to local building codes
include:
Air Rights - answers Extend above the surface without limitation - include, cell tower
leases, condominiums, outdoor advertising
The Texas Railroad Commission - answers Controls all drilling for oil and gas in the
state and regulates all drilling activity in the state
Riparian rights - answers Rights that an owner has to use water from a river or a stream
on or next to a property
Littoral rights - answers Rights to use water from a lake, ocean or sea on or next to a
property
Accretion - answers addition to the land by the action of water
Alluvion - answers soil added to the land by accretion
Avulsion - answers water washes away the land from one property and deposits it on
another
, Reliction - answers water recedes and dry land appears
Personality or Chattel - answers Also known as personal property
Fixture - answers Personal property that has become attached to the land in such a way
as to become real property
Annexation - answers The process of attaching personal property so that it becomes
real property
Severance - answers Removing fixtures by detaching or uninstalling them to create
personal property
Emblement - answers Annual crops produced with labor fall into this special category.
Even though they are attached to the land, they are personal property.
TDHCA - answers Texas Department of Housing and Community Affairs - regulates
manufactured homes
Accession - answers If trade fixtures are not removed prior to lease expiration, they
become the property of the landlord
Prior Appropriation - answers Theory of water law based on the idea that "first in time is
first in right"
Manufactured Home - answers A home built in a factory according to a federal building
code administered by the US Department of Housing and Urban Development (HUD)
Surface Waiver - answers Could be used if there is no present lease in place and the
seller owns the Mineral Estate
Real Property - answers Broader term that goes beyond the physical real estate and
includes the rights that a person has in the land
Real Estate includes: - answers All that is encompassed in land, with the addition of all
man made additions to the land (improvements) such as roads, houses and commercial
buildings
Bundle of Rights - answers Rights associated with the ownership of real property are
often referred to as the owners __________
Severable - answers Surface, subsurface, and air rights are said to be
Capital Gain - answers The gain on the sale of an asset for the seller
Single Family Home - answers Embodies the "American Dream" of home ownership
