Fidelity, Integrity and Competency
The Canons of Professional Ethics and Conduct provide for
file suit to enforce the subpoena
TREC has subpoena power. If a licensee fails to respond to a subpoena , TREC may
TREC will investigate the actions of a licensee if
they receive any written and signed complaint received no later than the fourth anniversary of the date of the incident.
The Broker Lawyer Committee
Who writes TREC promulgated contract forms.
TREC has a real estate recovery trust account. What is true about this account?
Every applicant for a real estate license in Texas pays $10.00 for the account, Money in the account can be invested , If the balance in the account goes over $3.5 million, the excess goes to the general revenue fund.
Payments out of the real estate recovery trust account are limited to:
$50,000 per transaction regardless of the number of claimants and $100,000 per licensee.
TREC may suspend or revoke a license if
the licensee Comingles broker funds with client's funds, sells real property by lottery, places a sign offering a property for sale or lease without a written consent from the owner.
The TREC may assess an administrative penalty
of up to 5,000 per violation on any person in Texas who violates the rules of the TREC.
an agent
One who represents another from whom he has derived authority is called
A licensee who represents a party must disclose this representation
at first contact.
The duties of a broker in a fiduciary relationship do NOT include
compensation, but DO include PLC (Performance, Loyalty and Care)
The principal's duties to an agent include
CRIP: compensation, reimbursement, indemnification, and performance.
Exclusive Right to Sell
The listing most commonly found on the MLS is the
an intermediary
When a broker in Texas is representing the buyer and seller in a single transaction he is
Listing agreements can be terminated by
death of either party, abandonment, mutual agreement.
intermediary with appointments
When a Texas broker appoints associates to the parties in a transaction this is called
Appointed associates under an intermediary may
give advice and opinions to their respective parties.
The intermediary relationship notice
names the appointed associates.
An example of involuntary alienation is property transfered by
adverse possession.
The deed that contains no warranties of ownership is the
quitclaim deed.
The Federal law that prohibits kickbacks or non-disclosures in a real estate closing is
RESPA
RESPA
Applies to 1-4 family residential properties
Competent parties for a real estate transaction include
a person 18 years of age or older.
A contract that binds one party but not the other is called
unilateral
These are annually cultivated crops, attached to the land, and are personal property.
Emblements
When real property is sold
fixtures remain with the property
Loss of value due to lack of modernization is called
functional obsolescence
When an appraiser is using the Market Data approach, comps should be
no more than 6 months old
The appraisal approach used for rental properties is the
income approach
The appraiser will use the cost approach to value for
a church
When preparing an appraisal, the appraiser will
define the problem, apply the correct approach, and prepare his report
The appraisal principle that tells the owner that he should not over improve his property is the .
principle of increasing and decreasing returns
Official property value for tax purposes is called
assessment value
The appraisal principle that says there is maximum value in with sameness or similarity is
the principle of conformity
The economic characteristic of real property that describes the impact of improvements is
modification
A lien to secure payment for work or materials is called an
M& M lien
A pledge or real property as security for a debt is called a
mortgage
In a deed of trust the lender is called a
beneficiary
The primary purpose of the FHA is to
insure loans
Loans that are not FHA or VA guaranteed are called
Conventional
Another name for Contract for deed is
Land Contract or Installment Land Contract.
A lease that automatically renews itself is
periodic tenancy.
A loan has a PITI payment is called a
budget loan
A person who brings a lender and a borrower together for a fee is called a
Mortgage Broker
Legal possession of real property without ownership is a
leasehold estate
Rent stated in a lease agreement is called
contract rent
A lease with a specific starting and ending date is called
estate for years
The TREC's buyer's/seller's temporary lease agreement is for
periods of 90 days or less
The law requiring the removal of barriers and ease of access is
Americans with Disabilities Act
Requirements of the ADA include
wheelchair access, Braille markings on elevator control keys, flashing alarm lights for the hearing impaired
Causing panic selling in a neighborhood is called
Blockbusting
Which building is exempt from ADA?
A private club
An example of compliance with Federal Fair Housing Act is
practicing fair housing, placing the equal housing sign in the office window, signing VAMA, (Voluntary Affirmative marketing Agreement) having a standard having a standard office procedure for working with customers, and regular office meetings on fair ho
The Federal Fair Housing Act prohibits discrimination of
race, religion, and sex
The Equal Housing Poster mentions discrimination in the .
sale or leasing of residential housing
A house sold for $100,000. The loan amount was $80,000. The borrower paid 3 points. How much did the borrower pay for points?
80,000X.03= $2,400
The assessed value of a property is $90,000. The tax rate is $3.42 per hundred. What are the annual taxes?
90,000 divided by 100= 900X3.42= 3,078
A yearly tax bill is $8788. The property has sold and closing is on May 30th. How much will be owed for taxes? (Use 30 day months and round to the nearest dollar)
$8,788 Divided by 12= $732 month X 5 = 3,660 Debit Seller Credit Buyer
The listing broker's half of commission was $4392. The commission rate was 5%. What was the sale price of the property?
4392 X 2= 8784 Divided by .05= $175,680
assemblage
The process of combining two parcels of land into one larger parcel that is worth more than the total value of the individual parcels it is called:
six months
In the market approach, a real estate appraiser looks for data on sales of comparable properties which have occurred within the last:
estate for years
A lease for a definite period of time, which terminates when that time has expired, is a(n):
land only
A ground lease is a lease of:
a three-year commercial lease
Which of the following leases would be unenforceable in court, unless it was in writing?
borrowing money to buy an asset with a higher return than the interest on the debt
Leverage is:
taxes
interest
rents
At closing the following are prorated:
kickbacks and/or fees for services not actually performed during the closing process
RESPA prohibits, among other things:
True
The real estate exam consists of 110 questions, 80 on the national portion of the test and 30 on the Texas portion of the test.
owner
The term lessor is MOST likely to be used to describe a(n):
Regulation Z
The regulations that implement the enforcement of the Truth in Lending act are known as:
economic obsolescence
Which of the following results from factors outside the property?
periodic estate
A lease that automatically renews itself is a:
False
When the TAR Residential Leasing and Property Management Agreement is used the broker becomes an employee of the owner.
consumers
Truth-in-lending laws were created primarily to protect:
Cultivate the property
Use or enjoy the property
Take possession of the property
The 10-year statute of adverse passion requires that the claimant:
True
The Statute of Frauds is a law that requires some documents, including deeds, be in writing and signed in order to be enforceable in a court of law.
The sales price of property.
The title insurance premium is set by the Texas State Board of Insurance and is based on:
The rezoning constituted downzoning.
The zoning of a parcel of land was changed from apartment zoning to single-family residential use only. Which of the following statements is true?
net lease
A lease under which the tenant pays a fixed rent and pays all the operating expenses is a:
The buyer does not have to disclose to the public the amount that was paid for the property.
Texas does not have a disclosure law. This means:
easements
encroachments
deed restrictions
Encumbrances include:
insured
An FHA loan is a loan that is _______________ by the Federal Housing Administration.
the comparable property
Adjustments for differences between the subject property and the comparable property are made to:
1908
The National Association of Realtors (NAR) was founded in:
a market in which mortgage loans can be sold to investors
The secondary mortgage market is:
police power
The basic authority for zoning laws is derived from a state's:
3
The right of rescission in credit transactions for home refinancing is _______________ business days.
Freddie Mac
The Federal Home Loan Mortgage Corporation is known as:
redlining
A lender's refusal to make loans in certain neighborhoods or areas regardless of the quality of the structures or the ability of the borrower to repay is known as
gross rent multiplier
Which of the following estimates of value is most likely to provide only a rough estimate of the value of the rental property?
hypothecation
A borrower's property serves as collateral while the borrower retains the rights of possession and use of it by the process of:
condominium
Ownership of the interior space of your home and an undivided interest in the building structures, common areas, and land area of the entire project describes a:
square foot method
The most widely used approach for estimating construction costs is:
True
An abstractor is the person who searches the public records for all the documents concerning the property including deeds, wills, mortgages, divorces, marriages. This information is used to create an abstract of title
deed restrictions
All of the following are examples of public land-use controls EXCEPT:
VA loan
A borrower bought a $125,000 house with no down payment through a mortgage broker. The loan was probably a(n):
the closing
Proration of items in a real estate transaction are made usually as of the date of:
real estate agent
A competitive Market Analysis (CMA) is most often prepared by a/an:
all unit owners who hold undivided interests in the elements
Within a condominium development, common elements are owned by:
the deed to the property
At the closing, the seller will sign which of the following instruments?
1
A point is ________% of the loan amount.
zoning laws
Which of the following are public restrictions on the use of real property?
$75,000
The market value on John's home is $180,000. He owes $105,000 on the property. What is his equity in the home?
perform all normal maintenance
A grandfather clause in a zoning ordinance will permit the owner of a building that is in nonconforming use to do which of the following?
board of directors
The governing body of a cooperative is called a:
plottage
If two parcels are combined into one larger parcel that is worth more than the total value of the individual parcels, that added value is called:
acceleration clause
When a borrower gets behind on his loan payments, the lender could call for the entire balance due immediately based on the:
nonconforming use
A use of property that is not in agreement with present zoning laws:
expiration date
An estate for years will always have an:
due-on-sale clause
alienation clause
The clause that gives the lender the right to call in the note if the mortgaged property is sold or otherwise conveyed by the borrower is known as the:
assignment
In a lease the total transfer of the tenant's rights to another person is an:
occupancy
Before a newly constructed building may be utilized by tenants, the owner must secure a certificate of:
deed of trust
The type of mortgage most often used in Texas is:
subordination
When the holder of a mortgage agrees to accept a position of lower lien priority and to allow another mortgage to advance in priority, the process is known as:
borrowed funds cost more than they produce in benefits
Negative leverage occurs when:
a mortgage that covers more than one property.
A blanket mortgage is:
RESPA
When the property is a residential property with a federally related loan, the property will be closed under:
variance
The use of property could be changed without changing the zoning by using a:
usury laws
Laws that limit the amount of interest that can be charged to borrowers are called:
a loan payment including principal, interest, taxes and insurance
PITI is the acronym for:
redlining
The practice of some lenders not making loans on properties in certain neighborhoods is known as:
the equity
The difference between the market value of a property and the sum of the liens against it is called:
highest and best use
The use of a property that will give it its greatest current value is its:
Karl
Karl signed a one-year lease on an apartment with a rental agency. He sublet the apartment to Kurt, who defaulted on the sublease. Any action entered by the landlord would be against:
income approach
A method of valuing a property based on the monetary returns it can be expected to produce is the:
a nonconforming use
A small corner grocery store existed before the land was zoned residential by a new zoning ordinance. The grocery store is an example of:
a deficiency judgment
When the amount received from a foreclosure sale is insufficient to pay off the mortgage loan and the other expenses of the sale, the lender may sometimes secure:
operating expenses and mortgage payments
A positive cash flow occurs when a property generates income in excess of:
guaranteed by the U.S. Department of Veterans Affairs
A VA loan is loan that is: