Real Estate Exam: Principles of Real Estate 1 (Latest 2024/2025)

Real Estate Exam: Principles of Real Estate 1 The purpose of the TRELA is to... - ✔-protect the public against unscrupulous brokers and salespersons.

What is required to obtain a license in Texas? - ✔-be a resident of Texas at least 18 yrs of age at the time of application, be of good moral character, must show competency by passing the exam If the licensee pays a commission to any unlicensed person, places a sign offering a property without the written permission of the owner, sells real estate by lottery this can happen.... - ✔-A license can be revoked or suspended by the TREC How long does a consumer have to file a complaint with TREC against a licensee? - ✔Four years Who promulgates real estate contract forms in Texas? - ✔-The Broker Lawyer Committee Which economic characteristic of land describes location preference from an economic point of view? - ✔-situs What is often considered the most important test of a fixture? - ✔-Intentions of the parties Which of the following is an example of an encroachment? - ✔-The neighbor's fence is on your land.

PETE: police power, eminent domain (gvt.takes private land for public use), Taxation, Escheat (gvt. Takes title of land where owner has no heirs or will) - ✔-The government's rights in land A property description that is considered an informal reference is - ✔-a street address.

The highest priority lien against real property is - ✔-property tax The type of ownership in which the person has the most rights is called - ✔-fee simple Texas is a community property state. What is true about community property? - ✔Property inherited by one spouse can remain separate property of that spouse.

When property has only one owner it is called - ✔-severalty

Property held by two or more owners with rights of survivorship is - ✔-joint tenancy A lease with a specific starting and ending date is called - ✔-an estate for years or tenancy for years.

When the landlord pays all of the expenses of the property and then tenant pays only the rent, this is called - ✔-a gross lease An easement can be terminated by - ✔-merger Deeds require the signature of - ✔-the grantor The deed that gives the buyer the greatest protection is called - ✔-the general warranty deed Title to real property transfers when - ✔-the deed is delivered When a grantor transfers a title but retains some rights it is called - ✔-reservation A complete history of the title of a piece of property is called an - ✔-abstract A handwritten will is called a - ✔-holographic will Inheritance of real property without a will is called - ✔-laws of descent Seller financing where the seller retains title until the final payment is called - ✔-contract for deed The duties of the principal include - ✔-performance When an agent has unlimited authority to act on behalf of the client it is called - ✔universal authority The duties of the agent include - ✔-loyalty A contract that meets all of the requirements of the law is called - ✔-valid A contract that can be canceled by one of the parties is called - ✔-voidable Something of value given to one to induce another to enter into a contract is called - ✔consideration

The law requiring real estate contracts to be in writing is called - ✔-The Statute of Frauds Contracts that are signed and carried out are called - ✔-executed When one of the parties of the contract dies, the contract is... - ✔-binding on the heirs if possible If the parties of a contract agree to terminate the contract, it is called - ✔-mutual rescission TREC promulgated forms are - ✔-mandatory for licensees Where do individuals go to borrow money? - ✔-The Primary Market Loans that meet FMNA guidelines are called - ✔-conforming loans What is a point? - ✔-1% of the loan amount The pledge of real property as security for a debt is called - ✔-a mortgage The major advantage of a Deed of Trust to a lender is - ✔-power of sale A mortgage becomes a lien when it is - ✔-recorded The document that is evidence of a borrower's promise to repay a loan is called a - ✔note When a lender collects principal, interest, taxes, and insurance (PITI) as part of a monthly payment, this is called - ✔-a budget loan When a buyer purchases a property and takes over the payments and liability on an existing loan it is called - ✔-a straight assumption A loan that covers two or more pieces of property on one note is called - ✔-a blanket loan The most common approach for the appraisal of residential properties is the - ✔-Market Data Approach The characteristics of value of land include demand, utility, scarcity, and transferability but not this... - ✔-taxes

Using the Cost Approach, the appraiser will calculate - ✔-land value+ building replacement cost- depreciation Regulates closings on 1-4 residential properties with federally related financing - ✔RESPA When lower value properties in an area cause a decline in the value of the subject property this is called - ✔-Regression Higher value properties cause an increase in the value of the subject property is called ✔-Progression 1 acre= how many sq ft? - ✔-43,560 sq. ft Taking buyers to or away from a particular area based on any of the protected categories under Fair Housing Laws is called - ✔-steering or channeling The largest fine for any single violation of the Fair Housing Act is - ✔-$110,000 The Civil Rights Act of 1968 does NOT offer protection against discrimination based on... - ✔-occupation If you believe you are a victim of discrimination under the Federal Fair Housing laws, how long do you have to file a complaint? - ✔-1year commission rate x sales price= - ✔-Commission 100% - commission rate x sales price= - ✔-Seller's net % x total area= - ✔-Usable area 100% + appreciation % x original cost= - ✔-Appreciated value 100% - depreciation % x original cost= - ✔-Depreciated value % x original cost= - ✔-Profit interest rate x loan amount= - ✔-Yearly interest % x list price= - ✔-Sales price % x market value= - ✔-Assessed value

tax rate x assessed value= - ✔-Tax qualifying ratio x gross monthly income= - ✔-Monthly PITI capitalization rate x market value= - ✔-Net income % x total= - ✔-Part Part divided by the total = - ✔-% Part divided by the % = - ✔-total