Real Estate Exam Questions
A prospect for the lease of a commercial property feels the need for adversarial representation and hires a broker to negotiate the lease on his behalf. The contract entered into between the prospect and the broker is called
What is commonly used is the TAR form "Buyer/tenant representation agreement" Giving the broker the right to represent the client in both the lease and purchase of a property
Which is true of an administrator of an estate
When someone dies without (intestate) a will the court will appoint an administrator to take care of their affairs after ones death. If someone died having a will (testate) there would have be someone named in the will to take care of their affairs after their death, call an executor which would be approved by the courts.
Which of the following statements is true with regard to the "Seller's Disclosure Of Property Condition" approved and published by the Texas Real Estate Commission?
Although the form is for voluntary use, all sellers of single family homes must provide a seller disclosure. This may be one from a local board or any disclosure approved by the parties of the contract
A Real Estate salesperson may receive compensation from
Only the sponsoring broker may pay the salesperson. All compensation must be paid by the sponsoring broker as of the date that the agent earned the compensation
The Real Estate Center at Texas A&M University is funded by
Texas A & M University is funded by each broker and salesperson each and every time that they renew their license. $20 brokers and $17.50 salesperson
The Texas Real Estate Commission is not empowered to
The commission is funded by the state and any increase of licensing fees must be approved by the state
According to the provisions of Texas Real Estate Licensing Act, which of the following must be included in every listing agreement with a Texas Licensed Broker?
ALL listing agreements must have a termination date that are not subject to prior notice
Which of the following is NOT registered, licensed, certified or regulated by the Texas Real Estate Commission?
Appraisers are not regulated by the Texas Real Estate Commission
The obligation of protecting any deposits entrusted to an agent is an example of the fiduciary duty of
It is the agents responsibility to account for all monies entrusted to him/her
Which of the following is the Texas Real Estate Commission NOT empowered to do?
The recovery fund can only pay the aggrieved person who receives a judgement from a licensee in a court of law
Each active real estate broker licensed by the Texas Real Estate Commission shall display in a prominent location in their place of business a
This informs persons that the broker and agents are licensed by the Texas Real Estate Commission and give the consumer information as to where they can file a complaint if need be
If a seller insist that you not disclose a "latent defect" in the property, what should you do
If a seller does not want to disclose a "latent defect" in the property you have no choice but to withdraw from the transaction or not take the listing
A married couple is selling its homestead, owned as community property. For the deed conveying the property to be valid, who must sign it?
Both husband and wife are the owners of the property under community property laws and therefore both must sign the deed conveying the property to another
A contract which states that one promise is given in exchange for another can best be described as a:
A bilateral contract is a contract where all parties to the contract must perform. Thus one promise is exchanged for another.
A violation of a provision of the Texas Real Estate License Act constitutes what type of legal violation?
A violation of the TRELA is a class A misdemeanor and can result in jail time and or fines. A class A misdemeanor is the highest misdemeanor and is just below a felony
Your seller says that he doesn't want to accept any offers from buyers who are represented by a buyer's agent. What should you do when a buyer's agent brings an offer on the listing on behalf of his/her client?
You must present ALL offers to your client. The seller may reconsider once an offer is presented from the buyer agent.
When does the seller agree or disagree to allow sub-agency
The seller must agree to sub-agency at the time the listing agreement is signed
When you assign a contract you transfer all benefits and obligations
Encroachment - When a structure extends beyond the bounds of the property. In this case the fence is extending into the property of another and therefore Dan is encroaching upon the property of another.
What is the continuing education requirement for brokers to renew their license
A broker MUST complete 15 hours of Mandatory Continuing Education every two years to renew their license
Can a broker act as a dual agent in a real estate transaction
A broker must always move to the intermediary position if they are to represent both the seller and buyer
No Federal Fair Housing laws are violated if a landlord refuses to rent to
Students are not a protected class by the Federal Fair Housing laws. You should always check with local law in your area.
When you assign a contract you are transferring
When you assign a contract you transfer all benefits and obligations
A licensee should make no changes to the promulgated contracts except a change which is:
The broker is not a part of the contract. The contract is between the purchaser and the seller. Therefore the broker can only make changes to the contract if so desired by the parties of the contract (the principles)
Which of the following is an appropriate action for an intermediary
When the broker enters into an intermediary position; if he/she appoints an associated licensee to work for one party he/she must appoint an associated licensee to work for the other party as not to favor one party over the other. The broker must not help either associated licensee with the negotiations
Which one of the following is authorized by statute to promulgate forms for mandatory use by real estate brokers and sales persons?
The Broker Lawyer Committee draws and updates the forms that are approved by the Texas Real Estate Commission for mandatory use
A father conveys ownership of his residence to his son but reserves for himself a life estate in the residence. The interest the son owns during the father's lifetime is
The father has the right to use the property as though it is his property. The son will receive the property after his father death. The son is said to be the remainderman.
In a listing agreement, if the property is under contract with a buyer and the listing expires, is the broker still entitled to a commission
The seller has hired you to find them a buyer for their property and you have done just that, therefore you do NOT have to extend the listing agreement. You have earned your commission, you just will not received the commission until closing of the sell. Remember listing agreement can not have automatic extension agreements
A novation is BEST defined as:
Substitution of a new contract for an existing agreement with the intent of extinguishing the old contract. Such as a counteroffer made by one party when the receive an offer from another. This voids the first offer and now a new offer is being offered to the other party
If a licensed Real Estate broker is an agent in a transaction in which real property is sold by lottery, his or her action is
A real estate broker may not sell real property by lottery.
Parties can be compelled to take dispute to mediation prior to being able to initiate litigation by
A judge may order the parties to seek mediation prior to hearing any legal action by either party