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A collection of questions and answers related to the texas real estate exam. It covers various topics relevant to real estate principles, practices, and laws. The document can be a valuable resource for individuals preparing for the exam, offering insights into common exam questions and their correct answers.
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"When an easement allows the use of a neighboring property which automatically transfers upon
"Linda purchased a fee simple interest for the private use of a residential property for one week
"What is the highest form of land ownership which includes the full and complete bundle of
"What type of ownership would allow two or more owners to have various unequal percentages
Intestate"
require a minimum level of construction standards"
the prime rate" "Paul owns an older residential property in an area now zoned for commercial use. Paul decides to renovate the home into a laundry mat. The change in the properties functionality for Paul's
"Jon's Tire Store is being built across the street from Big Bob's Tires. What appraisal principle
"Buyer Sam purchased a run down residential home in a neighborhood with many nice well kept properties. Sam intends to renovate the home and resell it for a profit. Considering the nicer homes in the neighborhood help raise his property value, what appraisal principle is Sam
"While working on an appraisal report, appraiser Jake finds that the comparable property is superior to the subject property with more amenities. How will Jake make adjustments to arrive
"Discount points are a way lenders are able to charge prepaid interest in order to lower the
"Mark is not able to make his entire mortgage payment on time each month and has fallen behind on payments. Because of his failure to pay, his lender, ABC Home Loans, sent him notice that they are calling for the remaining mortgage balance to be pid in full in one lump sum immediately. This
"Some loans are structured where the Lender places a portion of each payment the borrower makes into a special account to pay the property taxes at the end of each year. What is the
"Agent Anna has a home listed for sale and shows the home to the Quinns whom she does not
"What duty requires a licensee to follow the principal's orders and requests as long as they are
"Disclosure law specifics vary by state, however, in which type of transaction would the seller's
agency"
"All parties entering into a real estate contract must be doing so on their own free will and not
something clearly offered for something else in exchange" "In order for a contract to convey ownership in a property transaction the contract must include:
"In a real estate transaction, when someone is forced into a contract by intimidation or some
void" "LeAnn entered into a contract that called for $1,000 in monetary damages if the contract was
damages" "Once all terms of a contract have been fulfilled and the transaction has closed the contract status
"John signs a six-month lease on an apartment beginning January 1st and ending June 30th. His lease does not automatically renew and no notice is required on his part to vacate on the
"Sally wants to transfer the title of her property to her granddaughter. Which of the following are
testate" "A title search revealed a lien on a property which creates a cloud on the title. How may the
stratification of judgment"
warranty deed"
"When agents get together and have a discussion on regarding setting a fixed commission rate so
"Steve tells Listing Agent Shelly his basement leaks but ONLY when it rains hard for a long periods of time so no need to mention it to buyers. He insists it's really no big deal. Which of the following
"Sharon purchased a home for $100,000 with an 6% annual interest rate. Her payments are $
“An insurance policy which combines personal liability insurance and hazard insurance coverage
"What is the status of a contract when all of the terms have been fulfilled and the transaction has
"Surface Rights, Air Rights, and Subsurface Rights are all rights that can be sold by a property
severable rights" "The city of Brownwood plans to build a new water treatment facility but the land that is required
the land against the owner's wishes, yet the owner must be compensated"
Comparable sales" "Agent Brook is preparing for a listing appointment and has gathered information to prepare a report of recent market data for the seller to review. The report agents reconcile to obtain a reasonable list price for a property based on current listings, recent sales, and expireds would be
"The beautiful town of Big Bear is experiencing a fast influx of new residents. There are few homes on the market and no new construction developments in the works. What will this do to
"Homeowner Paul is selling his home without a real estate agent. He places an advertisement stating "Owner Financing 3% down payment" is Paul's advertisement in violation of the Truth in
requirements" "FHA loans require that borrowers provide protection to the lender in case of loan default. What
mortgage insurance premium" "Fair housing regulations apply not only to real estate agents but also lenders. When a lender denies a mortgage application solely based on the racial demographics of the neighborhood the
"Terry received a conventional 30 year loan to purchase his home. Thanks to some large extra payments Terry will have his home paid for in only 17 years. Which of the following loan terms
prepayment penalty" "Mortgages that are escrowed break down the monthly payment four ways. Each payment pays a
Insurance" "Melissa went on a listing appointment and the sellers were asking legal questions. Questions she
they seek legal counsel" "Agent Terry convinces an owner to list his property way under market value. Terry sells the property to his brother Mark without disclosing the relationship to the buyer in writing. Mark
"Agent Paula found a buyer for her listing, the seller accepted the buyer's offer, and both parties received copies of the contract documents. The seller decides one week prior to closing they no
commission" "New agent Matt is listing a home for sale which was built in 1965. What disclosure should Matt
disclosure" "Part of agent Connie's listing packet includes a form for the seller to complete that covers the components of the home for sale and the seller's knowledge of the condition of such items. This
"Mary and Mark are buying their first home, which was built just 3 years ago. After touring the property which seems to be in good repair, they waive their right to a home inspection not anticipating any issues. After closing, and moving in they find that some of the duct work in the crawl space has fallen and is no longer attached causing all the air to be released under the home. They are upset that the seller did not mention the issue, and when asked the seller states they
"In compliance with fair housing regulations any deed restriction or covenant that would prohibit
legal, considered void, and unenforceable"
"A hispanic man called a landlord regarding a home for rent online. The landlord tells him the property is already rented. His white friend then called the landlord to inquire about the property
"Broker Ben has E&O Insurance and is selling an investment property that he owns. He has made a few false statements and misrepresentations, but he really needs to sell the property fast. What
insurance will not cover negligence of a Broker selling property he owns" "Karen recently sold a home for 6% commission. If her commission was $20,700, how much did
"Agent Amanda just closed on a home that sold for $525,000. Her commission rate was 5% with a 50/50 co-broker with the selling broker, and a 60% split with her broker. How much did Amanda
"A new roof costs $7,500 and the economic life of the roof is 30 years. Using the straight line
"David, a broker, has recently finalized a deal for the purchase of one of his listings. The buyer has