Texas Real Estate Principles 1 (Practice Exam) Correct and Verified Answers Graded A

• | P a g e

Texas Real Estate Principles 1 (Practice Exam) Correct and Verified Answers Graded A

• Which equals one square mile or 640 acres?

Answer: Section

• The method used to describe real estate by distance, direction, and boundaries is

Answer: Metes-and-bounds method

• An urban homestead is limited to a lot or lots NOT to exceed how many acres?

Answer: 10

• If a condition of ownership is violated, title to the subject property automatically reverts

to the original owner in

Answer: A determinable fee estate

• What type of estate is complete ownership and exists for an unlimited time?

Answer: Fee simple

• If the court learns that the seller placed a sign that said "Not Included" on the stove every

time a buyer looked at the property, the court will consider which of the following in determining whether the stove is a fixture, absent a written agreement?

Answer: Intention of the parties

• Which of the following terms refers not only to the surface of the earth but also below to

the center of the earth, above to infinity, and natural things permanently attached but does NOT refer to artificial things permanently attached?

Answer: Land

• Which is owned by the tenant?

Answer: A trade fixture

• | P a g e

• What is the maximum amount that the Commission will pay from the real estate

recovery trust account for claims against any one license holder, until the account has been repaid in full by the license holder?

Answer: $100,000

• Courses for the renewal of an active real estate broker or sales agent license are called

Answer: Continuing education (CE)

• Under the federal Fair Housing Act, real estate organizations, such as multiple listing

services, may NOT do which because someone is in a protected group?

Answer: Refuse membership or put conditions on participation

• Which aspect of the Canons of Professional Ethics and Conduct requires the broker or

sales agent to be informed on market conditions and national, state, and local developments affecting the real estate business?

Answer: Competency

• A complaint of discrimination brought under the Texas Fair Housing Act can be filed

with the U.S. Department of Housing and Urban Development or with

Answer: The Texas Workforce Commission Civil Rights Division

• An aggrieved person who believes illegal discrimination has occurred may file a

complaint within what time frame following the alleged discriminatory act?

Answer: ONE YEAR

• Appurtenant easement rights transfer with

Answer: The dominant tenement

• An owner sells part of his land that has no access to a public road but does have

access over his remaining land. This creates an easement by

Answer: Necessity

• When there are two or more liens on a property, the order in which the liens will be

satisfied when the property is sold will be determined by

Answer: The priority of the liens

• Which of the following may be a natural object, such as a tree or a boulder, or an

artificial object, such as a steel rod or a stake driven into the ground?

• | P a g e

Answer: Monument

• It is unlawful for a person to act in the capacity of or claim to be a real estate broker

without first

Answer: Obtaining a license from the Texas Real Estate Commission

• A real estate broker's license is NOT required of persons who

Answer: Advertise and lease their own properties

• The Texas Real Estate Commission is composed of

Answer: Nine members, six of whom are brokers and three of whom are lay members, each appointed by the governor with senate approval

• Before people can act in the capacity of or represent themselves as real estate brokers,

they must first

Answer: Obtain a license from the Texas Real Estate Commission

• A license holder must use the earnest money contract forms promulgated by the

Commission unless Answer: An attorney prepares the forms and the property owner requires their use

• Which of the following is NOT a violation for which the Texas Real Estate Commission

(TREC) may suspend or revoke a license or take other disciplinary action?Answer: Failing to advise a buyer or a seller regarding the validity of title to real estate

• A licensed real estate broker is not authorized to practice law unless the broker also is a

licensed attorney. Which activity is permitted to be performed by a real estate license holder?Answer: Filling in the blanks of a contract form promulgated or approved for that use by the Texas Real Estate Commission (TREC)

• Which would NOT be considered a violation of antitrust laws?

Answer: Brokers throughout the city set their commission rates unilaterally without consulting with competitors

• It is the duty of an agent to disclose to the principal every step taken in the transaction

of the principal's business because

Answer: The agent has a fiduciary obligation to the principal

• | P a g e

• Misleading or deceptive practices according to the Deceptive Trade Practices Act

(DTPA) include all of the following EXCEPT

Answer: Stating that a property is being sold "as is."

• The Deceptive Trade Practices Act (DTPA) does NOT apply to the actions of real estate

agents when an agent Answer: Makes an exaggerated or unsubstantiated statement of value given as advice, judgment, or opinion when selling real estate

• A real estate agent tells a seller during a listing presentation that the firm's real estate

commission is in line with those of other real estate firms in the area. The broker may

Answer: Be guilty of price-fixing

• A sales agent has which agency relationship with the sponsoring broker?

Answer: A general agency relationship

• A consumer has sent a complaint to the Texas Real Estate Commission (TREC) against

a real estate agent, claiming a violation of the Canon of Integrity. The agent is accused of Answer: Misrepresenting the condition of the property by omitting pertinent facts

• Which action is permitted under the federal Fair Housing Act?

Answer: Refusing to sell a home to a minority individual because of a poor credit history

• Which law prohibits all discrimination based on race in any real estate transaction

without exception?

Answer: Civil Rights Act of 1866

• The federal Fair Housing Act of 1968

Answer: Prohibits discrimination in residential housing based on race, color, national origin, and religion

• Which family is NOT protected under the familial status provisions of the Fair Housing

Act?Answer: A 55-year-old father, 40-year-old mother, and 17-year-old son who want to purchase a home in an age-restricted adults-only community

• "I hear they're moving in. There goes the neighborhood! Better put your house on the

market before values drop!" This is an example of