Download Texas Real Estate Principles 1 Exam 2024: Questions and Answers and more Exams Real Estate Management in PDF only on Docsity!
TEXAS REAL ESTATE PRINCIPLES 1 EXAM 2024
QUESTIONS WITH 100% CORRECT ANSWERS
"An appeal can be made on a decision by the commission - CORRECT ANSWER it must be
taken to the district court in the county where the administrative hearing was held."
"When dealing with a client it is mandatory to give them - CORRECT ANSWER A copy of the
"Information about brokerage services" form"
"The three Canons for professional ethics and conduct for Real Estate Licensees - CORRECT
ANSWER Fidelity, Integrity, Competency"
"Under what circumstances can a person be called a "Realtor?" - CORRECT ANSWER That
agent has to join the "NAR" National Association of Realtors to be called a "Realtor""
"If a seller asks agent to discriminate - CORRECT ANSWER agent must refuse to take the
listing"
"ADA Americans with Disabilities Act - CORRECT ANSWER enacted in 1992 deals with
commercial property only"
"Personal Property - CORRECT ANSWER Things not attached to the land"
"Chattel - CORRECT ANSWER also known as Personal Property"
"How is Personal Property sold - CORRECT ANSWER Bill of Sale"
"Classification of plants (Annual or fructus industrials or emblements) - CORRECT ANSWER
Personal Property"
"Appurtenances - CORRECT ANSWER right or privilidge to land that goes with the land when
ownership changes such as parking lot spaces, easements, right or ways"
"Fixture - CORRECT ANSWER was personal property but then became real estate because it
has been attached to the land"
"Physical Characteristics of land - CORRECT ANSWER immobility
indestructibility
nonhomogeneity"
"economic characteristics of land - CORRECT ANSWER scarcity, modification,
improvements, permanence of investment, area preference."
"Situs - CORRECT ANSWER Area Preference"
"Four types of legal descriptions of land - CORRECT ANSWER Metes and Bounds
Rectangular survey system recorded plats reference to documents other than maps"
"metes and bounds - CORRECT ANSWER legal land description most used in the US using
distance and direction to define and describe the boundaries of a property"
"Bundle of Rights or Bundle of Sticks - CORRECT ANSWER the many rights the Fee Simple
gives to owners of property-bundles or sticks can be removed but the owner still owns the Fee Simple"
"Encumbrance - CORRECT ANSWER When under Fee Simple one of the sticks or bundles has
been removed. Ie. mineral rights, lien, encroachment, easement etc"
"freehold estate - CORRECT ANSWER An estate in land, fee simple, the most common
ownership"
"Dower rights - CORRECT ANSWER right a wife has to her husbands estate upon his death"
"curtsey rights - CORRECT ANSWER right a husband has to his wifes estate upon her death"
"fee simple defeasable - CORRECT ANSWER a gift of land by a person or GRANTOR"
"Life Estate - CORRECT ANSWER an estate in land for the duration of someones life (always a
gift of land/ real estate)"
"Homestead - CORRECT ANSWER Texas is a Homestead State. The property that you own and
live in. It is a constitutional right that cannot be waived."
"Urban homestead - CORRECT ANSWER homestead limited to 10 acres"
"The deed - CORRECT ANSWER must be delivered and accepted for tilte to transfer"
"Types of deeds - CORRECT ANSWER General Warrenty-best deed in Texas (grantor gives no
defects to title) Special Warrenty-used in commercial trans saying owner has done nothing to encumber the title during ownership bargain/sale-no warrenties against encumbrances quitclaim-in divorce gives rights to the property to the other spouse"
"Deed in trust - CORRECT ANSWER delivers ownership of property at another date"
"Two ways to record a Deed - CORRECT ANSWER occupying/using the land
recording docs pertaining to property with county clerks office"
"constructive - CORRECT ANSWER recording deed with county clerks office"
"actual notice of anothers interest in property - CORRECT ANSWER what heard, seen and
read"
"all documents concerning real estate - CORRECT ANSWER must be recorded at county
clerks office in the county where the property is located"
"Lis penden index - CORRECT ANSWER list any lawssuits on property and gives any
attachements to theproperty"
"Marketable title - CORRECT ANSWER title that is free from doubt as to who owns
theproperty"
"good and indefeasable title - CORRECT ANSWER a title that cannot be defeated by a superior
claim"
"chain of title - CORRECT ANSWER everyone who has ever owned that property"
"abstract title - CORRECT ANSWER condensed history of all docs that have been recorded
affecting the title of the property"
"title insurance - CORRECT ANSWER policy that will insure against losses from title defects
and against errors in title examination"
"title commitment - CORRECT ANSWER states what the title covers and does not cover"
"quiet title suit - CORRECT ANSWER court holds hearings on ownership of propertyand any
invalid claims or disputes will be removed by the court"
"mortgagees title police - CORRECT ANSWER lenders policy and loan policy"
"Texas Board of Insurance - CORRECT ANSWER set insurance premiums based on the sale
price of property and is paid at closing of property"
"Alienation - CORRECT ANSWER transfer of ownership of property"
"type of alientation - CORRECT ANSWER voluntary and involuntary"
"Adverse Possession - CORRECT ANSWER when one person takes possession of anothers
land and holds that possession for a long enough period of time tobe able to make it theirs and take ownership of it"
"bilateral contract - CORRECT ANSWER promised for a promise (real estate contract)"
"unilateral contract - CORRECT ANSWER a promise in exchange for an act (option paragraph
in a sales contract)"
"executor contract - CORRECT ANSWER contract in the process of being performed"
"contracts are - CORRECT ANSWER valid,
void (made for illegal purposes) voidable (binding against one party but not the other) unenforceable (oral listing agreement)"
"Five elements that make a contract valid - CORRECT ANSWER competent parties, legal
objective, offer andacceptance, contract in writing and signed"
"the only contract that does not have to be in writing to be enforceable - CORRECT ANSWER a
lease for one year or less"
"a person holding a power of attorney - CORRECT ANSWER Attorney in Fact"
"Novation - CORRECT ANSWER substitution of a contract with another contract ie.
counteroffer"
"Civil Rights Act of 1988 - CORRECT ANSWER Amended to include Handicap and Familial
status"
"Define Handicapped - CORRECT ANSWER having a physical or mental disability (including
hearing, mobility, visual impairment, chronic mental illness and AIDS) that substantially limits one or more major life activities."
"Steering - CORRECT ANSWER Illigal practice of directing home seekers to a particular
neighborhood based on fair housing protected classes. An agent cannot steer even if asked to by their client."
"Tests of a fixture - CORRECT ANSWER method of attachment (annexation)
Fitness or adaptation to property Intention of the parties"
"Trade fixture - CORRECT ANSWER attached to the property under a commercial lease"
"Riparian Rights - CORRECT ANSWER rights to anothers land who borders a stream or river"
"Littoral Rights - CORRECT ANSWER rights to anothers land who borders a lake"
"Accretion - CORRECT ANSWER land is increased in size because of natural deposit of rock
and soil usually caused by water movement"
"Alluvion - CORRECT ANSWER the land that has been created by Accretion"
"Reliction - CORRECT ANSWER dry land that results when water withdraws from the land"
"Avulsion - CORRECT ANSWER suddent removal of land by water"
"Erosion - CORRECT ANSWER the gradual wearing away of land and rock by water"
"Rectangular survey system - CORRECT ANSWER legal land description using latitude,
longitude lines, standard parallels and base lines to divide the earth into ares"
"How many acres in each square mile - CORRECT ANSWER 640"
"How many square feet in an acre - CORRECT ANSWER 43560 square feet"
"Recorded plat - CORRECT ANSWER Legal land description which divides larger plats into
smaller plots. When land is divided in lots."
"Police Power - CORRECT ANSWER in real estate applies to planning laws, building codes,
fire codes, rent control and health codes."
"Eminent Domain - CORRECT ANSWER government can take privately owned real estate for
public use"
"condemnation - CORRECT ANSWER the process of eminent domain"
"Escheat - CORRECT ANSWER When one dies without a will or heirs the government takes it
as it no longer has an owner basically going back to the state."
"Fee Simple - CORRECT ANSWER highest and greatest type of ownership interest (Title) that
can be held in real property."
"Liens - CORRECT ANSWER legal claim on someones property as a security for a debt"
"Types of liens - CORRECT ANSWER mortgage, property tax lien, mechanics lien, judgement
and can be voluntary or involuntary and are either specific or general"
"License - CORRECT ANSWER personal priviledge given to someone to use land-not an estate
or right to land"
"Estate of Severalty - CORRECT ANSWER sole ownership of property-not part of community
property"
"Tenents in common - CORRECT ANSWER two or more people acquire property but
ownersship is not equal"
"Joint tenancy - CORRECT ANSWER ownership in property where owners own equal shares
and has right of suvivorship-cannot be passed on to others upon their death, cannot be sold or given away either-last surviving owner takes property in severalty"
"right of suvivorship - CORRECT ANSWER in joint tenancy if one partner dies his share goes
to the remaining partners"
"conditions upon which a joint tenancy can be made - CORRECT ANSWER there must be
unity in time, title, interest and possession time-acquire ownership at the same time tile-acquire title from same source interest-equal interest in property possession-all owners have right to possess property"
"codicil - CORRECT ANSWER a written addition to a will the replaces or revokes what was
written in that persons previous will"
"All contracts - CORRECT ANSWER expressed-writing or oral OR
implied-understanding"
