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82 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What is the continuing education requirement for real estate licensees |
18 hours for each licensed term |
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During what time of the year are people least likely to want to move? |
Over the winter holidays |
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Which of the following statements regarding the Texas broker examination is true? |
A broker’s exam is more difficult than a sales agent’s exam. |
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Can you perform any actions a licensed real estate agent performs with out a license? |
Before you can legally perform any activities that licensed real estate professionals perform, you must have your real estate license. |
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Which type of power gives the government the authority to do what’s right for the public good and the owner may or may not be compensated? |
Police power |
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Which law source provides a way to implement and enforce laws, establishes illegal practices, and penalties for violations? |
Administrative law and ordinances |
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How many members of the ESAC committee are real estate professionals? |
Seven |
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Least effective way of describing a property |
Street address |
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Which act created an agency to investigate antitrust practices? |
Federal Trade Commission Act |
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Before using a showing service to automate the scheduling and showing of the property to prospective buyers, the listing agent must have the sellers review and sign the _______ form. |
Showing Service Information |
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Which of the following best describes a lease agreement? |
A legally binding, written contract between a landlord and a tenant |
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Darnell is disappointed when he receives written notification from TREC that his broker license application has been rejected. He plans to file a notice for a hearing, but he misses the deadline by two days. Which of the following is true of this situation? |
Because he didn’t file the notice in time, TREC’s decision to deny his license is final. |
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Once Greg and Caitlin were married, they decided to purchase a home together. Since it was a shotgun wedding after a weekend in Vegas, they made sure that their ownership included the right of survivorship as well as protection from the other spouse attempting to sell the house from under them. Though not recognized in all states, the most likely form of co-ownership under which they would make this purchase is ______. |
Tenancy by the entirety |
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Lucas, Ivan, Chad, and Trace own a property as joint tenants. After a few years, Ivan sells his interest to Tom (with permission from Lucas, Chad, and Trace). Chad dies intestate but is survived by a wife, Amy. Trace also then passes away but wills his property to Monique. Who owns the property after Trace’s death? |
Lucas and Tom |
Joint tenants are allowed to sell their interests, so Tom became a property owner when Ivan sold his interest. However, joint tenancy is not inheritable but instead includes the right of survivorship. Trace's and Chad's interests passed to Lucas and Tom. |
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Homeowners policies are comprised of ....... types of insurance. |
several |
While several types of insurance are included, flooding and earthquake coverage are rarely part of a standard policy. |
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Texas broker Max has registered his assumed business name with TREC. He’s about to run an ad using the business name. Has he met the requirements to do so? |
No. Max must also provide written evidence of his legal authority to use the assumed business name in Texas. |
Before a broker can start using his assumed business name in an advertisement, he must register the name with TREC and provide written proof of legal authority to use the assumed business name in Texas, such as registration of the name with the secretary of state or county clerk's office. |
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What's an antitrust violation's central element? |
Conspiracy |
Antitrust involves a conspiracy among competitors. |
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The Canons of Professional Ethics and Conduct are divided into five sections: ________, integrity, competency, consumer information, and discriminatory practices. |
Fidelity |
The code is divided into fidelity, integrity, competency, consumer information, and discriminatory practices. |
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When is an elevation certificate required? |
When attempting to obtain flood insurance in some areas |
An elevation certificate provides documented proof that all new buildings and improvements are properly elevated to minimize flood damage, thereby allowing homeowners to obtain flood insurance. |
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The commission can impose up to a maximum of how much per violation of TRELA? |
5,000 |
The commission has the ability to impose up to $5,000 per violation. Each day the violation occurs is considered another violation (and that means another fine). |
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Someone whose license has been expired for between 91 days and six months may renew the license by paying TREC a fee. How much is the renewal fee in these instances? |
Double the regular required renewal fee |
Someone whose license has been expired for between 91 days and six months may renew the license by paying TREC a fee of double the regular required renewal fee. |
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Ken signed a contract to purchase Debra’s condo. Ken signed the contract two weeks prior to turning 18, which is the age of majority in his state. Debra found out about his age prior to the closing but honored the contract, and they closed on the condo a month after Ken’s birthday. What was the status of the contract when Ken and Debra entered into it? |
Voidable |
Because Ken was a minor when he entered into the contract, he had the option to cancel it (making it a voidable contract). However, the parties to a voidable contract may choose to execute it, which is what happened here. |
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The _______ value affects a property’s income tax basis. |
Depreciated |
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Which of the following fiduciary duties is owed to both clients and customers? |
Prompt presentation of all written offers and counter-offers |
A licensee owes the fiduciary duty of promptly presenting all written offers and counter-offers to both clients and customers. |
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Texas licensee Daniel is showing a home to his buyer client, Kathy. As they enter the kitchen, she notices some yellow spots on the ceiling. She asks if Daniel thinks that means the house needs a new roof. What should Daniel do? |
Suggest contacting a roofing expert to make this determination. |
Daniel should not offer his opinion on the roof because he is not an expert in this field. He should suggest contacting a roofing expert |
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What makes an income tax lien different from a property tax lien? |
An income tax lien is a general lien and a property tax lien is a specific lien. |
An income tax lien is an example of a general lien because it’s a lien against all of the person's assets, while the property tax lien is a lien on the real property for which the tax was assessed. |
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______ rights mean real estate acquired by either spouse during the marriage (with a few exceptions) is considered community property. |
Community property |
This is community property. It’s similar to joint tenancy in that it has the right of survivorship and includes unity of time, title, interest, and possession, but with marriage added. |
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Which federal disclosure required under Title X requires the sellers of residential dwellings built before 1978 to disclose any known information about the existence of lead-based paint on their property? |
Lead-Based Paint and Lead-Based Hazards Disclosure of Information |
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What’s the name of the act that requires public accommodation areas to be accessible? |
Americans with Disabilities Act |
The ADA requires that individuals with physical and/or mental disabilities be provided with reasonable accommodations in public sites. |
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What HMDA data is available about loans? |
Mortgage applications, loan amount, type of loan, and loan purpose |
HMDA data includes mortgage applications, loan amount, type of loan, loan purpose, and sometimes reason for denial. |
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Which option best defines a statutory lien? |
Created by law and gives right of possession |
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Sunshine Surveyors Inc. created a lot and block survey for a new residential development, Happy Acres. The first thing the surveyor did when he surveyed the new neighborhood was to reference what type of description? |
Metes and bounds description |
The lot and block system always begins with one of two types of land descriptions as a reference point: either a metes and bounds description or an rectangular government survey system (RGSS) description. |
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In Texas, when HUD receives a discrimination complaint, it forwards this complaint to what organization? |
Texas Workforce Commission Civil Rights Division |
These complaints are forwarded to the Texas Workforce Commission Civil Rights Division, which enforces fair housing laws. |
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All real estate licensees in Texas must abide by the Canons of Professional Ethics and Conduct enforced by ______. |
The Texas Real Estate Commission |
All real estate licensees in Texas are bound by the Canons of Professional Ethics and Conduct enforced by the Texas Real Estate Commission. |
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Apartment buildings are an example of what type of property? |
Residential |
Apartment buildings are residential properties. |
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Under the Texas anti-spam law, businesses have ______ days to remove a consumer’s email address from their mailing list. |
Three |
The Texas anti-spam law gives a business up to three days to remove a consumer’s email address from its mailing list after the date on which the sender receives a request for removal. |
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If someone has a complaint alleging an antitrust violation in Texas, how long do they have to file the complaint? |
Within four years of the occurrence |
Complaints must be made within four years of the occurrence or within one year after any action is brought by the state regarding that conduct has been concluded, whichever is longer. |
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Which of the following states that the person who committed the fraud, as well as anyone who knew about the fraud, failed to disclose it, and benefited from it, can be held liable for actual damages? |
Fraud in Real Estate and Stock Transactions |
According to the Fraud in Real Estate and Stock Transactions Statute, the person who committed the fraud, as well as anyone who knew about the fraud, failed to disclose it, and benefited from it, are liable. |
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Elizabeth’s property is encumbered by an easement in gross with which of these entities? |
The utility company that needs to access the power line that crosses a corner of Elizabeth’s land |
An easement in gross benefits an individual or entity rather than another property, and is typically used by utility companies. Permission to use another’s property doesn’t always require an easement, and the fence is an encroachment, not an easement. |
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How does the Office of Fair Housing and Equal Opportunity support real estate consumers? |
The FHEO provides support for protected classes through the fair housing complaint process. |
The FHEO guides consumers through the complaint process as well as conducting an investigation. |
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What makes an income tax lien different from a property tax lien? |
An income tax lien is a general lien and a property tax lien is a specific lien. |
An income tax lien is an example of a general lien because it’s a lien against all of the person's assets, while the property tax lien is a lien on the real property for which the tax was assessed. |
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______ rights mean real estate acquired by either spouse during the marriage (with a few exceptions) is considered community property. |
Community property |
This is community property. It’s similar to joint tenancy in that it has the right of survivorship and includes unity of time, title, interest, and possession, but with marriage added. |
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Which federal disclosure required under Title X requires the sellers of residential dwellings built before 1978 to disclose any known information about the existence of lead-based paint on their property? |
Lead-Based Paint and Lead-Based Hazards Disclosure of Information |
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What’s the name of the act that requires public accommodation areas to be accessible? |
Americans with Disabilities Act |
The ADA requires that individuals with physical and/or mental disabilities be provided with reasonable accommodations in public sites. |
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What HMDA data is available about loans? |
Mortgage applications, loan amount, type of loan, and loan purpose |
HMDA data includes mortgage applications, loan amount, type of loan, loan purpose, and sometimes reason for denial. |
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Which option best defines a statutory lien? |
Created by law and gives right of possession |
A statutory lien is created by law and gives right of possession. |
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Question 41 Ken, Dale, and James are brothers who own more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result is that the court gave each brother a designated set of acres to own. What was granted by the court? |
Partition |
Partition is the term used to describe a specific, divided portion of property that's created as part of a co-ownership termination. |
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Sunshine Surveyors Inc. created a lot and block survey for a new residential development, Happy Acres. The first thing the surveyor did when he surveyed the new neighborhood was to reference what type of description? |
Metes and bounds description |
The lot and block system always begins with one of two types of land descriptions as a reference point: either a metes and bounds description or an rectangular government survey system (RGSS) description. |
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In Texas, when HUD receives a discrimination complaint, it forwards this complaint to what organization? |
Texas Workforce Commission Civil Rights Division |
These complaints are forwarded to the Texas Workforce Commission Civil Rights Division, which enforces fair housing laws. |
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All real estate licensees in Texas must abide by the Canons of Professional Ethics and Conduct enforced by ______. |
The Texas Real Estate Commission |
All real estate licensees in Texas are bound by the Canons of Professional Ethics and Conduct enforced by the Texas Real Estate Commission. |
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Apartment buildings are an example of what type of property? |
Residential |
Apartment buildings are residential properties. |
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Under the Texas anti-spam law, businesses have ______ days to remove a consumer’s email address from their mailing list. |
Three |
The Texas anti-spam law gives a business up to three days to remove a consumer’s email address from its mailing list after the date on which the sender receives a request for removal. |
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If someone has a complaint alleging an antitrust violation in Texas, how long do they have to file the complaint? |
Within four years of the occurrence |
Complaints must be made within four years of the occurrence or within one year after any action is brought by the state regarding that conduct has been concluded, whichever is longer. |
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Which of the following states that the person who committed the fraud, as well as anyone who knew about the fraud, failed to disclose it, and benefited from it, can be held liable for actual damages? |
Fraud in Real Estate and Stock Transactions |
According to the Fraud in Real Estate and Stock Transactions Statute, the person who committed the fraud, as well as anyone who knew about the fraud, failed to disclose it, and benefited from it, are liable. |
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Elizabeth’s property is encumbered by an easement in gross with which of these entities? |
The utility company that needs to access the power line that crosses a corner of Elizabeth’s land |
An easement in gross benefits an individual or entity rather than another property, and is typically used by utility companies. Permission to use another’s property doesn’t always require an easement, and the fence is an encroachment, not an easement. |
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How does the Office of Fair Housing and Equal Opportunity support real estate consumers? |
The FHEO provides support for protected classes through the fair housing complaint process. |
The FHEO guides consumers through the complaint process as well as conducting an investigation. |
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An .....,, is granted to a specific individual or company—in this case, the gas utility company. |
easement in gross |
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What's market allocation? |
Agreeing with a competing firm on how to split a market |
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After location, which is commonly the second biggest factor in a buyer’s selection of a home? |
Housing type |
The housing type is the second biggest factor in a buyer’s selection of a home. Sometimes this is due to affordability, but other factors may include maintenance issues, lifestyle, or nostalgia. |
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Widget Corporation just bought land on which it plans to build a new manufacturing facility. How is the land owned? |
It’s owned as an estate in severalty. |
Corporations are legal entities and hold property similar to the way a sole proprietor or an individual does: in severalty. |
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Which area of real estate law covers what's required of a licensee when performing real estate activities within the state, including license law, continuing education requirements, supervisory requirements, and prohibited conduct? |
Real estate license law |
Real estate law covers the requirements of a licensee when performing real estate activities within the state, including license law, continuing education requirements, supervisory requirements, and prohibited conduct. |
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Shannon is reading through paperwork related to her upcoming home purchase, and she comes across the following: "Southwest quarter of Southwest quarter (SW ¼ of SW ¼) and West Half of Southeast quarter of Southwest quarter (W½ SE¼ SW¼) of Section Eleven (11), Township Four (4) North of Range Eight (8) West." What did Shannon just find? |
Legal description |
This is a legal description, which provides a more complete description of a property than a street or postal address. This particular legal description uses the rectangular government survey system. |
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Which written notice must the seller of unimproved real property that is to be used for residential purposes provide to the purchaser of the property, on or before the effective date of a sales contract for the property? |
Conditions Under Surface |
The Conditions Under Surface notice must disclose the location of any transportation pipeline under the ground’s surface. |
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Which written notice must the seller of unimproved real property that is to be used for residential purposes provide to the purchaser of the property, on or before the effective date of a sales contract for the property? |
Conditions Under Surface |
The Conditions Under Surface notice must disclose the location of any transportation pipeline under the ground’s surface. |
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What happens when a municipality completes an "in rem" foreclosure? |
The municipality obtains title to the property. |
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Which of the following statements about licensees cooperating with other licensees is true? |
Licensees must cooperate with other licensees, but only if it’s in their client’s best interest. There is no obligation to compensate cooperating licensees. |
Licensees must cooperate with other licensees, even if it's not in their client’s best interest. |
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Which of the following statements about licensees cooperating with other licensees is true? |
Licensees must cooperate with other licensees, but only if it’s in their client’s best interest. There is no obligation to compensate cooperating licensees. |
Licensees must cooperate with other licensees, even if it's not in their client’s best interest. |
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In the real estate business, whose primary role is it to provide clients with the information they need to make informed decisions about their own specific real estate interests? |
Real estate counselor |
This is the area in which real estate counselors excel by using their real estate experience and interest in data to provide their clients with in-depth studies, reports, and evaluations about the client’s specific property. |
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What type of timeshare involves a buyer agreeing to pay a one-time purchase price and an annual maintenance fee, and in return selecting an accommodation time and having the right to use the unit for a specified number of years? Lifelong Permanent Renewable Vacation |
Vacation |
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When members of the Education Standards Advisory Committee are appointed, how many years do they serve? |
2 years |
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When members of the Education Standards Advisory Committee are appointed, how many years do they serve? |
2 years |
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Ricky is working for Matt, a buyer client, who is interested in a property at which the listing agent offers compensation to cooperating agents. The listing agent has offered Ricky or any cooperating agent additional compensation if the transaction closes within 40 days. Is this ethical? |
Yes, but only if all of the involved parties have full knowledge and provide consent. |
Licensees can only accept compensation from more than one party with the full knowledge and consent of all involved parties. That compensation must also go through the brokerage firm. |
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When accepting compensation, which of the following statements is most accurate, according to the NAR Code of Ethics? |
A licensee shall not accept compensation from more than one party to a transaction without the consent of all parties. |
Licensees may only accept compensation from more than one party with the full knowledge and consent of all involved parties. As a reminder, compensation goes through the broker and isn't given directly to the licensee by the parties involved. |
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How many acres are in a square mile |
640 |
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How many acres are in a square mile |
640 |
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Leon and Beth own 1/13 of a timeshare estate. They own weeks 20 and 21, and also weeks 40 and 41. These weeks are inheritable. What type of ownership is this?
Estate for life Fee simple Leasehold estate Periodic estate |
Fee simple |
Timeshare estates are owned as fee simple estates. They convey all rights of ownership and can be sold or passed down to heirs. |
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Which type of value is used to calculate property taxes?
Assessed value Depreciated value List price Market value
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Assessed |
Property taxes are calculated using the assessed value. |
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Question 52 Gregory has been bombarded with emails from a local real estate licensee. He keeps opting out of these emails, but they just keep coming. What federal law is the licensee possibly violating? |
Can spam act 2003 |
The CAN-SPAM Act of 2003 protects consumers against unwanted email solicitations |
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What's the relationship between townships and sections in the rectangular government survey system? |
Townships are divided into sections. |
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What's the relationship between townships and sections in the rectangular government survey system? |
Townships are divided into sections. |
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Which source of law establishes legal precedent? Administrative law Case law Constitutional law Statutory law |
Case law |
When judges rule on the facts of a particular case, they create case laws, which clarify and interpret other sources of law. In case law, lower courts are bound by decisions made by higher courts in the same jurisdiction. |
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How many days after you get the sellers disclosure in a listing do you have for option period. |
The buyer has 7 days after they have received sellers disclosure. |
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