Texas Sales License Review You Tube 2018 Practice

Texas Real Property Characteristics and Legal Descriptions

ane.	The Smiths found a abode 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?
		a. The chandelier
		b. A large, heavy potted plant
		c. The teak dining room ready
		d. The swinging door between the kitchen and the dining room
Personal property that is attached, or fixed, to real estate is typically considered existent property and is referred to every bit "fixtures". In this situation, the seller is choosing to detach the fixture and retain it every bit personal property. The plant is in a pot which is a personal item that is not attached to the holding. Effects, in general, are considered personal holding. The swinging door is attached to the home and was installed when the home was built. Information technology is considered real holding. Incorrect answer. Please choose another answer.

2.	A unmarried-family dwelling being considered by the Powers Family has ii parts which are joined by a breezeway that has no HVAC. The bedroom wing has five bedrooms and 2 bathrooms and is forty' broad and xl' long. The breezeway is half dozen' wide and 5' long. The living area wing has a living room, dining room, kitchen and laundry room. It is thirty' wide and 40' long. What is the gross living area (GLA) of the home?
		a. 2,830 square feet
		b. 2,800 square feet
		c. ii,000 foursquare feet
		d. 2,770 square feet
For an area to exist included in the GLA it must meet 3 criteria: (one) it must be heated or have air; (2) it must be finished; and (3) the living area must be straight accessible from the other living areas. In this scenario, the breezeway does non take rut or air, so is not considered role of the GLA and is not counted. Pace 1: Multiply 40'x40' to arrive at 1600 south.f. Step 2: Multiply thirty'x40' to arrive at 1200 southward.f. Step 3: 1600 s.f. + 1200 due south.f. = 2800 s.f. GLA Wrong reply. Delight choose some other answer.

Texas Forms of Buying, Transfers and Recording of Championship

three.	Which of the following forms of ownership is best described as "individual ownership"?
		a. joint tenancy
		b. ownership in severalty
		c. tenancy in common
		d. tenancy by the entirety
Information technology is important to sympathize the unlike forms of real holding ownership. Ownership in severalty is a form of buying where there is one owner. The ownership is "several", meaning separate, distinct or sole. Under ownership in severalty, the possessor has sole control over the employ and possession of the belongings. Joint tenancy, on the other mitt, means that there is more than ane owner and all owners accept equal share in the whole property. It is distinguished past the right of survivorship. If 1 possessor dies, his involvement passes to the surviving owner(due south). Tenancy in common is wrong because a tenancy in common by definition requires ii or more owners. In a tenancy in common, the interest of an possessor passes to his descendants or heirs upon his passing and not to the other owners. Tenancy by the entirety is basically a articulation tenancy for married couples. It is a form of ownership where a married couple own equal shares in the real estate. It has a right of survivorship. Incorrect reply. Please choose some other answer.

4.	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 belongings to the shelter with the condition that it revert back to him or his estate if the shelter e'er opted out of its "no kill" policy. What type of estate did Mr. Blackwell create?
		a. fee elementary estate
		b. life manor
		c. fee simple defeasible estate
		d. fee simple subject to a condition precedent
A fee unproblematic defeasible is a fee simple with a condition placed on it. The holder of the fee simple defeasible possess the property subject area to the condition. If the condition is violated or met, the property either automatically goes dorsum to the granter (fee simple determinable) or a designated 3rd party, or the grantor has the option to sue to take the property back (fee simple with a condition subsequent). A life estate is an incorrect answer because it is one in which the grantee has rights of ownership only for the duration of his life or the life of another. This is a limited manor based on the elapsing of a person'southward life. A fee simple bailiwick to a status precedent is an incorrect answer considering it establishes an manor for a political party upon the time to come occurrence of some status. Incorrect answer. Please choose another answer.

Texas Property Value and Appraisal

five.	The economical concept of scarcity is best explained by which case?
		a. A retail developer asks his agent to find a 2-acre tract downtown and the amanuensis reports back that at that place are no listings that meet his asking.
		b. A storeowner decides to convert the 2d flooring of his edifice into an apartment because there is a rental apartment shortage in the downtown area.
		c. A couple decides to motility to the next town because housing is more plentiful and more reasonably priced.
		d. All of the higher up.
Scarcity means that there is a shortage of land in a market where at that place is a high demand. In answer A, in that location is a need for land and the land for the developer's employ is scarce. In reply B, apartments are scarce in the downtown expanse, therefore the store possessor decides to modify his building to take advantage of the state of affairs. Answer C is a practiced example of scarcity. Housing is deficient in the couple's current town and more plentiful in the next town, enticing the couple to move. Incorrect answer. Delight choose some other respond.

six.	A local developer saw a two-story office building with a "For Sale" sign. He called the listing agent and asked him to notice out the annual cyberspace operating income (NOI). Which of the following expresses NOI?
		a. NOI = gross rents - operating expense - capital improvements
		b. NOI = gross rents - operating expenses
		c. NOI = gross rent + depreciation - utilities
		d. The NOI is the same equally annual gross rents.
Internet operating income (NOI) is one style for an investor to analyze the value of an income producing property. NOI is calculated by adding all the revenue generated past the property and then subtracting all of the reasonably necessary operating expenses, like rent, utilities, inventory costs, payroll and insurance. The NOI does not take into account such things every bit debt payments, costs for uppercase improvements or depreciation and amortization. Wrong answer. Please choose another respond.

7.	What does information technology mean if an appraisement states that a belongings is not currently at its "highest and best use"?
		a. The air space is not existence properly utilized.
		b. The property is non being used in a mode that will produce its highest current value.
		c. The property is not zoned correctly.
		d. The construction on the property is non synthetic to its maximum height.
There are many principles of value that help decide a marketplace toll. "Highest and best use" ways that a holding is being used in a way that will produce the highest current value. The appraisal industry more often than not considers that a property is at it's highest and best utilise when it meets four criteria: that information technology is physically possible (ex. An aerodrome on plenty country for a runway), legally permissible (ex. Zoned properly), financially feasible (ex. land value exceeds the value of the improved property); and that it is maximally productive (the current use is the almost assisting in a set of possible uses). Incorrect answer. Please cull another answer.

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eight.	Which of the following is used by real manor agents to determine the value of a belongings by comparing similar listed and sold properties?
		a. a market assessment
		b. a comparative market analysis
		c. a written opinion of value
		d. a revenue enhancement assessment
Value of real estate tin can exist adamant by various methods for different purposes. A comparative market analysis is commonly performed past a real estate agent to determine market value by comparing a minimum of 3 agile listed properties and three recent sold properties. A marketplace cess is shut only not the right answer. A written opinion of value is non the name of a valuation method. A tax assessment is used to provide value for a taxing entity but non performed past a existent estate agent. Incorrect respond. Delight choose another answer.

Texas Real Manor Contracts and Agency

9.	What type of list reserves the right for an exclusive agent to find a buyer and receive a commission and also allows the seller to observe a buyer herself without having to pay a commission?
		a. Open Listing
		b. Exclusive Right to Sell List
		c. Cyberspace Listing
		d. Exclusive Bureau List
There are four common list types. An Exclusive Agency Listing allows the seller to notice a heir-apparent and excuses him from paying a real estate committee while allowing an sectional agent to also look for a buyer and receive a committee. The Exclusive Correct to Sell Listing disallows anyone but the broker named in the understanding to procure a buyer and receive a commission. An Open Listing gives the most liberty to the seller and allows anyone, including the seller, to procure a buyer and receive a commission. A cyberspace listing is illegal in nigh states and allows the broker to procure a buyer at a set up price, determined by seller and broker, and allows the broker to keep the difference in the set toll and the contract price, pocketing any money over and above the set price. Incorrect answer. Please choose some other reply.

ten.	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 and so offered to evidence her a few backdrop. Next Paula asked Pearl to sign an understanding to institute their working human relationship. Which of the post-obit is the agreement Paula used?
		a. buyer representation agreement
		b. dual agency agreement
		c. intermediary agreement
		d. exclusive agency listing
A buyer representation agreement is used to establish the agency relationship betwixt the agent and the heir-apparent. Information technology is used to spell out what the amanuensis will do for the client and how the agent will exist compensated for her functioning. Incorrect respond. Delight choose another answer.

11.	Mi Wu, a landlord, was standing in the front k of her new holding, a duplex in Texas. She saw that Apex Lawncare was mowing next door and when they took a intermission, she asked one of the workers if they had time to mow her lawn. He answered that they would be delighted to mow her yard too and thirty minutes later they began working at Mi'due south place. This is an instance of:
		a. an express contract
		b. an option contract
		c. a unilateral contract
		d. an unsaid contract
People brand agreements, or contracts, every mean solar day. When time is curt, agreements are sometimes made by implication. An implied contract is made because it is commonly known and understood that certain actions will outcome in payment. Mi invited Noon to mow and information technology is ordinarily expected that she would pay for that piece of work when information technology is completed. If she refuses to pay, or the amount of payment is disputed, a small-scale claims court would employ a reasonable, customary amount accustomed in the lawncare industry. An express contract is a exact or written contract in which the parties go far clear what they volition practise and what essential terms are part of the agreement. Mi did not say, "I will pay you $50 after you mow my g", thus an express contract did non ascend. Wrong answer. Delight choose another reply.

12.	All of the following are a part of Paragraph v: Earnest Money and Termination Option in the TREC promulgated One to Four Family Residential Contract (Resale), pertaining to the buyer'due south option to finish, except:
		a. The buyer can terminate the contract for any reason during the option period.
		b. A fee must be paid by the heir-apparent to the seller for the right to terminate.
		c. The heir-apparent has three (3) days to deliver the choice fee to the escrow amanuensis.
		d. The buyer has x (x) days for the selection catamenia.
According to paragraph v of TREC's One to Four Family unit Residential Contract (Resale), the buyer shall have a right to terminate the contract for whatever reason equally long as he or she: 1. delivers the option fee to the escrow agent inside iii (3) days; and two. gives detect of termination to the seller within the negotiated "pick period".  The option menstruum is non a fix or standard timeframe and must be negotiated between the parties. The buyer can terminate the contract for any reason during the option period. Incorrect answer. Delight choose another answer.

Texas Real Manor Practice

13.	You lot receive a phone phone call from a prospect you spoke with weeks agone and they are at present set up to list their home located in Texas. You lot list the holding the adjacent nighttime and before you put up your sign, the neighbors, Mr. and Mrs. Adams, call and ask y'all to correspond them to make an offer on the house. What is your side by side step?
		a. You lot ask both buyer and seller to sign a Find of Intermediary Relationship, disclosing that you are representing both parties and will now be an intermediary.
		b. Yous show the home to Mr. and Mrs. Adams and wait to tell them you are the listing amanuensis until you see if they are actually interested.
		c. You lot must tell Mr. and Mrs. Adams that you cannot represent them since you represent the seller.
		d. You prove the home to the Adams and then write an offer. When y'all present it to the seller, you mention at the stop of the presentation that you represent the Adams also.
Texas police force is articulate about how agents should handle representation of multiple parties in a transaction. The role of Intermediary is the established practice requiring agents to disclose their agency relationship to more one party in a transaction. Upon discovery that an agent represents more than one party, he must immediately send both parties a Notice of Intermediary Human relationship and have both parties sign the observe to document their acknowledgement. An agent should always disclose his position and human relationship to the parties BEFORE working for both parties simultaneously. He should never proceed that fact to himself while inducing activeness from one of the parties. Incorrect answer. Please choose some other reply.

14.	A typical Buyer Representation Agreement was signed by a buyer and his agent. The amanuensis found a habitation the heir-apparent wants to purchase but the seller is refusing to pay the buyer's agent a committee. According to the Buyer Representation Agreement, who will ultimately pay the buyer's amanuensis if the buyer proceeds with that house?
		a. the seller's amanuensis
		b. the heir-apparent agent'due south broker
		c. the title visitor
		d. the buyer
A typical Buyer's Representation Understanding will spell out the responsibility of the agent to his client and vice versa. It too addresses how the broker/agent will be paid for his work. In the instance where a seller refuses to pay a heir-apparent'south broker/agent, the Heir-apparent'south Representation Agreement usually establishes payment to the broker/agent by the buyer. A seller'south amanuensis will not normally concord to split his side of a commission. It is possible but not likely. The heir-apparent agent'due south broker will not commonly pay an agent without a commission coming into the brokerage. The title visitor does not owe an agent a commission. Incorrect answer. Please cull another answer.

Texas Standards of Conduct

15.	Ernie, a licensed realtor, signed a heir-apparent representation agreement with Nelda. They began looking at homes. Nelda found 1 home online and asked Ernie to show her the property. Ernie realized that the listing was one that he had turned downwards because the seller would not disclose that the property had flooded during the final tempest. The weather was beautiful, dry out and sunny the day he showed it to Nelda and so Ernie did not mention the flood. What rule of ethics, if any, did Ernie violate?
		a. Ernie did not violate any rules.
		b. TREC's ethical rule of Competency
		c. TREC's ethical rule of Integrity
		d. TREC's ethical dominion of Confidentiality
The Texas REALTOR®'S Canons of Professional person Ethics and Conduct establishes rules that all licensees must follow. (Championship 22. Examining Boards Part 23. Texas Real Estate Commission Affiliate 531.) Ernie violated the rule of integrity because he did not use circumspection to represent the property accurately to Nelda. He must disembalm whatever material defect to her. By act of omission, Ernie misrepresented the property to her. The rule of Competency does not employ in this situation, although it is a valid rule. The rule of Confidentiality is not a stated Canon in the TREC rules but is included in NAR's Code of Ideals. In this example, Ernie does not represent the seller and does not accept a duty of confidentiality to the seller. Wrong answer. Please choose another answer.

16.	Which of the following is on the "laundry list" of the Texas Deceptive Trade Practise Human activity (DTPA)?
		a. representing that used goods are new
		b. letting a real estate license lapse
		c. non putting a contract between parties in writing
		d. All of the to a higher place
The Texas DTPA ensures that salespersons act ethically and honestly in their dealings. They should non represent the thing they are selling or induce a consumer to buy something by using deceptive practices. Representing something that is used as "new" is i of the most common violations of the DTPA. The other answers do not pertain to DTPA. Incorrect reply. Please choose some other answer.

Texas Holding Disclosure and Environmental Issues

17.	What yr represents the last year that a dwelling may take been constructed using paint containing lead?
		a. 1979
		b. 1969
		c. 1977
		d. 1955
Federal law banned the sale of lead-based paint for household apply in 1978. The law now requires that sellers and landlords notify a heir-apparent or tenant under contract or lease that lead-based paint may exist present in a home and give them a ten day period to do an cess if they and so want. This applies for any existent holding with a residence congenital prior to 1978. 1977 is the correct respond. Wrong answer. Please choose another reply.

eighteen.	All of the following are chancy conditions that may affect the wellness or safety of a residential property owner and must exist disclosed if known by a seller in Texas, except:
		a. location in a flood zone
		b. presence of oak trees well-nigh the firm
		c. mold in the basement
		d. asbestos siding
In that location are various atmospheric condition that can cause a take chances for property owners, almost of which require disclosure by a seller. The presence of copse are not typically considered a risk. Overflowing water, mold and asbestos are all mutual ecology weather or substances which can negatively impact residential belongings owners and must be disclosed by sellers that accept knowledge of their presence. Incorrect answer. Delight choose another answer.

Texas Financing and Settlement

19.	The best explanation for the significant of "conventional loan":
		a. a loan that is backed past the government
		b. a loan that goes through underwriting
		c. a loan that is not guaranteed by the government
		d. a loan that does non require mortgage insurance
A conventional loan is originated and serviced by private mortgage lenders, similar banks, and is not back by a governmental bureau. A non-conventional loan is one in which FHA, VA, or USDA insures the lender thereby resulting in less risk to them. If a conventional loan adheres to the standards of Fannie Mae and Freddie Mac, they are said to be befitting conventional loans. Conventional and non-conventional loans become through underwriting. Underwriting is the process where the lender verifies the borrower's income, debt and the property details in order to get terminal approval for the loan. Although some loans may not require mortgage insurance, most mortgages require mortgage insurance until a specific loan to value is reached. Incorrect respond. Please choose another respond.

20.	In mortgage lending jargon, a monthly mortgage payment consists of PITI. Which of the following is Non a component of PITI?
		a. insurance
		b. utilities
		c. interest
		d. taxes
PITI stands for principle, interest, taxes and insurance, the four components of a mortgage payment with escrow. Utilities is non a component of PITI. Incorrect answer. Please choose another answer.

21.	Esther and Mike owned their home in Texas for ten (10) years. They both lost their jobs and were unable to make their mortgage payments for more than a year. Their agent assisted them with completing a short auction. What did the agent do?
		a. The agent listed the dwelling house and sold information technology quickly.
		b. The agent listed and sold the home to someone who assumed the mortgage, releasing Esther and Mike from their obligation to pay it.
		c. The agent worked with them and their lender to sell the domicile to a buyer that purchased the home "short" of or less than what was owed by Esther and Mike.
		d. The agent sold the dwelling house for a price less than, or "short" of what Esther and Mike wanted for the house but enough to comprehend the mortgage debt.
When a homeowner with a mortgage debt, or mortgagor, falls behind and cannot pay their debt, the lender, or mortgagee, will sometimes approve a short sale if the market value is deemed to be less than the amount even so owed on the loan. If the homeowner has a history of interim in good faith and has good payment history but has had a recent crisis such as layoff or divorce, and so a depository financial institution will sometimes approve a brusk auction. They agree to have a payoff of the balance of the mortgage that is "short" of or less than the electric current balance. Incorrect answer. Please cull some other answer.

Texas Commission Duties and Powers and Licensing

22.	Which of the following are NOT duties or powers of the Texas Existent Estate Committee (TREC)?
		a. criminal adjudication
		b. revocation of a license
		c. holding a hearing
		d. enforcing rules and regulations
Equally a state administrative bureau, TREC is empowered to make and enforce rules and regulations and enjoin any violation of the Texas Existent Estate Licensing Act (TRELA). Information technology has the duty to hear complaints and administer consequences for violations such a pause and revocation of a license. It does not have jurisdiction to adjudicate the criminal code. Incorrect answer. Please choose another reply.

23.	A person needs a Texas real estate license to perform all of the following acts, except:
		a. sending out letters to come across if he can notice a buyer for his own house
		b. offering to list a neighbor'southward home for a 3% commission
		c. preparing a marketplace assay for a coworker for a fee
		d. agreeing to help observe a tenant for his friend'southward duplex if the friend lets him charter another unit for free
A real manor license is required for anyone that for compensation, negotiates, offers, buys or sells, leases or lists real estate, or procures properties or clients for existent estate transactions. A license is not needed to sell 1's own holding. Offering to help a friend sell their property for a fee or commission requires a license. Doing a market analysis for someone for a fee is practicing real manor and requires a license. Helping someone find a tenant in commutation for gratuitous rent (something of value) requires a license. Incorrect reply. Delight choose another answer.

Texas Special Topics

24.	What does information technology mean if a person dies "testate" nether the Texas Estates Lawmaking?
		a. He did not go out a will.
		b. His heirs will competition his will.
		c. He forgot to sign his will.
		d. He left a will.
A person that dies leaving a will is said to have died "testate". A person that dies not having a will is said to have died "intestate". If a person dies testate, a court will probate their will. If a person dies intestate, their property will be distributed by the court co-ordinate to the Texas Estates Code, law of descent and distribution. Incorrect reply. Please choose another answer.

25.	Which of the following is a true statement about Texas Homestead Protection law?
		a. A court must formally entitle someone with a homestead correct.
		b. A homeowner can lose his home to a creditor for non paying medical bills.
		c. A homeowner can lose his home if he defaults on his mortgage.
		d. An urban homestead can exist up to 15 acres.
The Texas Constitution endows Texas homeowners with an automatic homestead right. The homeowner must occupy the property and employ it every bit their residence to create the right. A courtroom does not formally give someone a homestead right. A homeowner cannot lose his home to a creditor, in general, with some exceptions. A mortgage is 1 of the exceptions. A rural homestead can be up to 100 acres for an individual or 200 acres for a couple. An urban homestead can be up to 10 acres. Incorrect answer. Please choose some other answer.

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Source: https://tests.com/practice/Texas-Real-Estate-Practice-Exam

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