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Introduction to Modern Real Estate Practice:
Texas Laws, Market Dynamics, and Licensing Correct and Verified Answers Graded A
- What is required to obtain a real estate license in Texas?
a) A law degree and 2 years of experience
b) Completion of approved education and passing a written exam
c) A sponsorship from a broker and a $1,000 fee
d) Being a resident of Texas for 5 years
Correct Answer: b) Completion of approved education and passing a written exam
- What is the role of a real estate broker?
a) To oversee real estate transactions and sponsor sales agents
b) To act as a mortgage lender for buyers
c) To provide legal counsel in court for property disputes
d) To inspect properties for structural damage
Correct Answer: a) To oversee real estate transactions and sponsor sales agents
- Who does TREC regulate?
a) Homeowners and landlords
b) Construction companies and developers
c) Real estate brokers, sales agents, and certain real estate-related professionals
d) Mortgage lenders and banks
Correct Answer: c) Real estate brokers, sales agents, and certain real estate-related professionals
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- Who is exempt from obtaining a real estate license?
a) Individuals managing their own property or certain government employees
b) Anyone selling commercial real estate
c) Apartment locators working for a complex
d) Real estate assistants who show homes
Correct Answer: a) Individuals managing their own property or certain government employees
- What are the seven activities that require a real estate license?
a) Building, painting, roofing, plumbing, electrical, landscaping, and designing
b) Buying, selling, leasing, renting, managing, appraising, and counseling
c) Financing, underwriting, auditing, banking, insuring, taxing, and notarizing
d) Marketing, advertising, staging, photographing, cleaning, repairing, and moving
Correct Answer: b) Buying, selling, leasing, renting, managing, appraising, and
counseling
- What are the three approaches to appraisal?
a) Market approach, Tax approach, and Value approach
b) Supply approach, Demand approach, and Equilibrium approach
c) Cost approach, Sales comparison approach, and Income approach
d) Land approach, Building approach, and Asset approach
Correct Answer: c) Cost approach, Sales comparison approach, and Income approach
- What are the three physical characteristics of land?
a) Scarcity, Improvements, and Situs
b) Immobility, Indestructibility, and Uniqueness
c) Demand, Utility, and Transferability
d) Permanence, Value, and Location
Correct Answer: b) Immobility, Indestructibility, and Uniqueness
- What are the four economic characteristics of land?
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a) Immobility, Indestructibility, Uniqueness, and Utility
b) Supply, Demand, Price, and Cost
c) Scarcity, Improvements, Permanence of investment, and Situs
d) Zoning, Taxation, Eminent Domain, and Escheat
Correct Answer: c) Scarcity, Improvements, Permanence of investment, and Situs
- What does the Education Standards Advisory Committee (ESAC) do?
a) Issues real estate licenses to new applicants
b) Arbitrates disputes between brokers and agents
c) Establishes education standards for real estate licensing
d) Sets the commission rates for real estate transactions
Correct Answer: c) Establishes education standards for real estate licensing
- What are the three sources of law in real estate?
a) Statutory law, case law, and administrative law
b) Criminal law, civil law, and corporate law
c) Federal law, international law, and maritime law
d) Contract law, tort law, and family law
Correct Answer: a) Statutory law, case law, and administrative law
- What are the two types of real estate licenses?
a) Agent’s license and Manager’s license
b) Residential license and Commercial license
c) Broker's license and salesperson's license
d) Buyer’s license and Seller’s license
Correct Answer: c) Broker's license and salesperson's license
- What is the primary focus of most real estate licensees?
a) Commercial real estate transactions
b) Industrial real estate transactions
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c) Agricultural real estate transactions
d) Residential real estate transactions
Correct Answer: d) Residential real estate transactions
- What are the advantages of a career in real estate?
a) Guaranteed salary and paid time off
b) Flexibility, high earning potential, autonomy, and personal satisfaction
c) Low stress and minimal education requirements
d) Fixed working hours and employer-provided benefits
Correct Answer: b) Flexibility, high earning potential, autonomy, and personal
satisfaction
- What is the significance of continuing education in real estate?
a) To increase the cost of maintaining a license
b) To socialize with other real estate professionals
c) To stay updated on laws, market trends, and improve professional skills
d) To meet the requirements for a law degree
Correct Answer: c) To stay updated on laws, market trends, and improve professional skills
- What is the compensation structure for real estate salespeople?
a) Hourly wage paid by the broker
b) Fixed annual salary
c) Commission based on a percentage of the sales price of the property
d) Tips from clients
Correct Answer: c) Commission based on a percentage of the sales price of the
property
- What is the importance of financial education for real estate professionals?
