- | Page
TEXAS PRINCIPLES OF REAL ESTATE 1 FINAL
EXAM If a real estate salesperson closes on a transaction, who pays the salesperson their commission?
ANSWER: The salesperson's sponsoring broker
A means of comparing similar type properties, which have recently sold, to the subject property is known as the?
ANSWER: Market Comparison Approach
The market comparison approach is commonly used for this property type?
ANSWER: Residential
The amount of goods offered for sale within a given market at a given price during a given time period is known as?
ANSWER: Supply
A real estate agent is an example of what type of agent?
ANSWER: Special agent
- | Page
A refrigerator is typically considered?
ANSWER: Personal Property
Mobile homes not permanently attached to the land are generally considered?
ANSWER: Personal Property
Which of the following is considered a legal test for determining if an item is a fixture or not?
ANSWER: All of the above (Mode and permanence of how the
item was attached, Adaptation of the item, Intention of the parties)
The right of exclusion, which allows a landowner to prevent others from entering or occupying their property, is included in the?
ANSWER: Bundle of rights
Which of the following is an example of a fixture?
ANSWER: Kitchen cabinets
- | Page
Which of the following is an advantage to owning a home?
ANSWER: All of the above (Potential for asset appreciation,
Tax benefits, Pride of ownership)
An individual who has not owned real property for at least the previous two years is known as a?
ANSWER: First-time homebuyer
Which of the following is NOT a form of real property?
ANSWER: Cooperative
A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co- ownership in other aspects of the property is known as a?
ANSWER: Condominium
A mortgage payment typically includes?
ANSWER: Interest, Principal, Insurance
Real estate brokers have a ...... relationship with the principal?
ANSWER: Fiduciary
- | Page
The 'L' in the acronym C.O.A.L.D. stands for which fiduciary duty?
ANSWER: Loyalty
When a real estate broker represents a buyer in a transaction, the broker and buyer are bound by which of the following contracts?
ANSWER: Buyer representation agreement
An agency relationship created by oral or written agreement between the principal and the agent is known as?
ANSWER: Express agency
The Deceptive Trade Practices Act discourages agents from which of the following acts?
ANSWER: Puffing - usually an exaggeration made by a
salesperson or found in an ad regarding the quality of the item or the service offered