Principles of Real Estate 1 Study Guide: Exam Questions and Answers, Exams of Real Estate Management

Download Principles of Real Estate 1 Study Guide: Exam Questions and Answers and more Exams Real Estate Management in PDF only on Docsity! Principles of Real Estate 1 Principles of Real Estate 1 Study Guide Exam Questions with Certified Answers Newly Updated. The purpose of the TRELA is to... - Answer: protect the public against unscrupulous brokers and salespersons. 1 | P a g e Principles of Real Estate 1 What is required to obtain a license in Texas? - Answer: 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.... - Answer: 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? - Answer: Four years Who promulgates real estate contract forms in Texas? - Answer: The Broker Lawyer Committee Which economic characteristic of land describes location preference from an economic point of view? - Answer: situs What is often considered the most important test of a fixture? - Answer: Intentions of the parties Which of the following is an example of an encroachment? - Answer: The neighbor's fence is on your land. 2 | P a g e Principles of Real Estate 1 The duties of the principal include - Answer: performance When an agent has unlimited authority to act on behalf of the client it is called - Answer: universal authority The duties of the agent include - Answer: loyalty A contract that meets all of the requirements of the law is called - Answer: valid A contract that can be canceled by one of the parties is called - Answer: voidable Something of value given to one to induce another to enter into a contract is called - Answer: consideration The law requiring real estate contracts to be in writing is called - Answer: The Statute of Frauds Contracts that are signed and carried out are called - Answer: executed When one of the parties of the contract dies, the contract is... - Answer: binding on the heirs if possible If the parties of a contract agree to terminate the contract, it is called - Answer: mutual rescission 5 | P a g e Principles of Real Estate 1 TREC promulgated forms are - Answer: mandatory for licensees Where do individuals go to borrow money? - Answer: The Primary Market Loans that meet FMNA guidelines are called - Answer: conforming loans What is a point? - Answer: 1% of the loan amount The pledge of real property as security for a debt is called - Answer: a mortgage The major advantage of a Deed of Trust to a lender is - Answer: power of sale A mortgage becomes a lien when it is - Answer: recorded The document that is evidence of a borrower's promise to repay a loan is called a - Answer: note When a lender collects principal, interest, taxes, and insurance (PITI) as part of a monthly payment, this is called - Answer: a budget loan When a buyer purchases a property and takes over the payments and liability on an existing loan it is called - Answer: a straight assumption A loan that covers two or more pieces of property on one note is called - Answer: a blanket loan 6 | P a g e Principles of Real Estate 1 The most common approach for the appraisal of residential properties is the - Answer: Market Data Approach The characteristics of value of land include demand, utility, scarcity, and transferability but not this... - Answer: taxes Using the Cost Approach, the appraiser will calculate - Answer: land value+ building replacement cost- depreciation Regulates closings on 1-4 residential properties with federally related financing - Answer: RESPA When lower value properties in an area cause a decline in the value of the subject property this is called - Answer: Regression Higher value properties cause an increase in the value of the subject property is called - Answer: Progression 1 acre= how many sq ft? - Answer: 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 - Answer: steering or channeling 7 | P a g e