pg. 1 Test Bank for Texas Principles of Real Estate 1 and 2 Exams Questions with Correct Answers/ Updated 2024.
Under what conditions can a supervising broker appoint a license holder associated with the broker to represent one party to a real estate transaction? - Correct Answer - With written consent of all parties
When must a seller's agent provide a written statement about brokerage services to a party? - Correct Answer - At the time of the first substantive dialogue with the party
When must a buyer's agent provide a written statement about brokerage services to a party? - Correct Answer - At first contact with the seller, landlord, or either party's agent
What principles govern an agency relationship? - Correct Answer - Both parties must consent to the relationship.Both parties must agree to form the relationship.The relationship is fiduciary - meaning the agent owes certain duties to the principal
Implied Agency - Correct Answer - when the actions of the parties indicate that they have mutually consented to an agency. The persons involved may not have consciously planned to form an agency relationship. However, their actions may unintentionally, inadvertently or accidentally form the relationship.
In order to generate business, in what four skill areas must a broker be proficient? - Correct Answer - Obtaining a client listing, Marketing a listing, Facilitating the closing of a transaction & Managing market information
What is a salesperson not allowed to do? - Correct Answer - Bind a client to any contract 1 / 4
pg. 2 Receive compensation directly from a client Accept a listing or deposit that is not in the name of the broker
What is an agent's foremost duty following acceptance of an offer? - Correct Answer - To submit the contract and the earnest money to the employing broker without delay
What's the penalty for violating the Sherman Antitrust Act? - Correct Answer - Individual violators of the Sherman Act can be fined up to $350,000 and sentenced to up to 3 years in federal prison for each offense; corporations can be fined up to $10 million for each offense.
However, the Criminal Antitrust Penalty Enhancement and Reform Act of 2004 increased the maximum criminal penalty for individuals to 10 years' imprisonment and a $1 million fine, and the maximum penalty for corporations to a $100 million fine.
Broker Jed tells buyer Sam that when he signs his purchase agreement he must also purchase a subscription to Jed's monthly newsletter. What would you say about this? - Correct Answer - This is a tie- in arrangement which is prohibited by the Sherman Antitrust Act.
How did the courts make changes to the caveat emptor principle to better protect consumers? - Correct Answer - By making it a requirement for sellers to provide buyers with a Sellers Disclosure Notice prior to the effective date of a contract and by obligating licensees to disclose any known or latent defects in a property.
The Texas Deceptive Trade Practices-Consumer Protection Act applies to what aspects of real estate? - Correct Answer - Advertising, offering for sale, selling, or leasing of any real or personal property
How long does a consumer have to bring a DTPA suit? - Correct Answer - within two (2) years after the deceptive act occurred (or within two (2) years after the consumer discovered, or should have discovered, the deceptive act.
What is significant about the Fair Housing Amendments Act of 1988? - Correct Answer - It added handicap and familial status to the list of protected classes.
- / 4
pg. 3 If a person feels like he or she has been discriminated against, how long does that person have to file a complaint? - Correct Answer - With HUD - within one year of the alleged act In state or federal court - within two years of the alleged act
What was the significance of the Plessy v. Ferguson Supreme Court decision of 1896? - Correct Answer - Allowed the use of "separate but equal" racially-segregated accommodations and facilities. In other words, as long as separate housing for blacks and whites were judged to be equal, they were legal.
Why is it important for licensees to understand the Americans with Disabilities Act? - Correct Answer - Brokers need to evaluate whether they need to make physical changes to their office space to comply with the law.Licensees should inform their commercial and investor clients of the need to have their leases professionally evaluated and their offices inspected for compliance.
What is the definition of discriminatory advertising? - Correct Answer - Advertising that indicates a preference, limitation or discrimination based on race, color, religion, handicap, sex, familial status or national origin.
With what agency can discrimination complaints be filed in Texas? - Correct Answer - Texas Workforce Commission Civil Rights Division
What does ECOA prohibit? - Correct Answer - Discrimination against applicants on the basis of race, color, religion, national origin, sex, marital status, age or dependency on public assistance
Why was the Community Reinvestment Act passed? - Correct Answer - To prevent redlining and to encourage banks and thrifts to help meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods
What does the Home Mortgage Disclosure Act require? - Correct Answer - That lenders report statistical information each year to insure that lenders are not restricting loans to certain individuals or neighborhoods to exclude them from obtaining a mortgage
What is testing? - Correct Answer - A simulated housing transaction designed to obtain evidence of differential treatment based on an individual's protected class status. 3 / 4
pg. 4
What are the five canons contained in the Canons of Professional Ethics and Conduct? - Correct Answer - Fidelity Integrity Competency Consumer Information Form 1-1 Discriminatory Practices
What are the three main forms of ownership? - Correct Answer - In severalty - Held by only one owner In co-ownership - Held by two or more people In trust - Held by a third party for the benefit of someone else
What three types of co-ownership does Texas recognize? - Correct Answer - Tenancy in common Joint tenancy Community property
What does a living trust do? - Correct Answer - Allows the trustor, during his or her lifetime, to convey title to a trustee for the benefit of a third party
tenancy in common, also known as the estate in common, is the most common form of co-ownership when the owners are not married. The defining characteristics are: - Correct Answer - Two or more owners Identical rights Interests individually owned Electable ownership shares No survivorship No unity of time
joint tenancy - Correct Answer - two or more persons collectively own a property as if they were a single person. Rights and interests are indivisible and equal. Each has a shared interest in the whole property which cannot be divided up.
- / 4