Texas Real Estate Practice Exam Questions and Answers Texas Real Property Characteristics and Legal Descriptions
- The Smiths found a home they love and asked their agent to write an offer. Their agent informs them that the
sellers are taking a fixture from the dining room and moving it to their new home. What are the sellers removing from the home?
- The chandelier
- A large, heavy potted plant
- The teak dining room set
- The swinging door between the kitchen and the dining room
- A single-family home being considered by the Powers Family has two parts which are joined by a breezeway
that has no HVAC. The bedroom wing has five bedrooms and two bathrooms and is 40' wide and 40' long. The breezeway is 6' wide and 5' long. The living area wing has a living room, dining room, kitchen and laundry room. It is 30' wide and 40' long. What is the gross living area (GLA) of the home?
- 2,830 square feet
- 2,800 square feet
- 2,000 square feet
- 2,770 square feet
Texas Forms of Ownership, Transfers and Recording of Title
- Which of the following forms of ownership is best described as "individual ownership"?
- joint tenancy
- ownership in severalty
- tenancy in common
- tenancy by the entirety
- Harry Blackwell owned ten acres on Leaf Creek Dr. The local animal shelter was in need of land to build a new
facility for their growing menagerie. Mr. Blackwell, an animal lover, granted his property to the shelter with the condition that it revert back to him or his estate if the shelter ever opted out of its "no kill" policy. What type of estate did Mr. Blackwell create?
- fee simple estate
- life estate
- fee simple defeasible estate
- fee simple subject to a condition precedent
Texas Property Value and Appraisal
- The economic concept of scarcity is best explained by which example?
- A retail developer asks his agent to find a two-acre tract downtown and the agent reports back that there are no
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listings that meet his request.
- A storeowner decides to convert the second floor of his building into an apartment because there is a rental
apartment shortage in the downtown area.
- A couple decides to move to the next town because housing is more plentiful and more reasonably priced.
- All of the above.
- A local developer saw a two-story office building with a "For Sale" sign. He called the listing agent and asked
him to find out the annual net operating income (NOI). Which of the following expresses NOI?
- NOI = gross rents - operating expense - capital improvements
- NOI = gross rents - operating expenses
- NOI = gross rent + depreciation - utilities
- The NOI is the same as annual gross rents.
- What does it mean if an appraisal states that a
property is not currently at its "highest and best use"?
- The air space is not being properly utilized.
- The property is not being used in a manner that
will produce its highest current value.
- The property is not zoned correctly.
- The structure on the property is not constructed
to its maximum height.
- Which of the following is used by real estate agents
to determine the value of a property by comparing similar listed and sold properties?
- a market assessment
- a comparative market analysis
- a written opinion of value
- a tax assessment
Texas Real Estate Contracts and Agency
- What type of listing reserves the right for an exclusive agent to find a buyer and receive a commission and also
allows the seller to find a buyer herself without having to pay a commission?
- Open Listing
- Exclusive Right to Sell Listing
- Net Listing
- Exclusive Agency Listing
- Pearl wanted to buy her first home in Texas. Her neighbor referred her to his favorite real estate agent, Paula.
Pearl and Paula met on Saturday and Paula advised Pearl on local market conditions and then offered to show her a few properties. Next Paula asked Pearl to sign an agreement to establish their working relationship.Which of the following is the agreement Paula used?
- buyer representation agreement
- dual agency agreement
- intermediary agreement
- exclusive agency listing
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