Download Texas Real Estate State Exam Questions And Answers Correct Graded A+ Latest 2025 and more Exams Agricultural economics in PDF only on Docsity!
Texas Real Estate State Exam Questions
And Answers Correct Graded A+ Latest
Real Property - correct answerland, Improvements attached to the land, and the rights to use them Personal Property - correct answerright or interest in things of a temporary or movable nature chattel personalty. Ownership transferred by a BILL OF SALE Fixture - correct answerPersonal Property attached in such a way to make it real property. Annexation - correct answerProcess of attaching personal property to real property making it a fixture Severed or Severance - correct answerReal property being removed becoming personal property Trade Fixtures - correct answerrequired to carry out a business example would be commercial cooking equipment in a restaurant Accesion - correct answerAcquiring trade fixtures by non removal prior to termination of lease Land 3 physical characteristics - correct answernonhomogeneity, immobility, indestructibility Nonhomogeneity - correct answerno to pieces are exactly alike immobility - correct answerland cannot be moved - a person must go to the land indestructibility - correct answerdurability - it will always be there Land 4 economic characteristics - correct answerscarcity, modification, fixity, situs scarcity - correct answershort supply where demand is great example lot in Manhattan v. a lot in upstate NY
modification - correct answerland use and value are greatly influenced by improvements made by man to land and to surrounding parcels of land fixity - correct answerland and buildings and other improvements to land are consideration fixed or permanent investments- they are not liquid assets Situs - correct answerlocation preference location,location,location Metes and Bounds - correct answerlegal description of land that always has a point of beginning that is also the end. The oldest used in 13 original colonies Lot,Block, and Subdivision - correct answerrecorded map or plat, it is the most common description in residential listing agreements Monuments - correct answerpermanent surveyors markers often starting point for metes and bounds example Iron pipe, oak tree Rectangular/ Government Survey - correct answertakes into consideration base lines, meridians, townships and sections.Townships and Sections are located in Ranges. Example S7T3R2 means Section 7 Townships 3 Range 2 Township - correct answer36 Sections Section - correct answer640 Acres 1 square mile Acre - correct answer43,560 square feet Plat - correct answermap of a town, section, or subdivision Plot - correct answermap or layout of improvements on a property site. The property site is also called a lot or parcel Encumbrance - correct answerlimitation on your rights. It may also called cloud on a title. Voluntary lein - correct answercreated by the borrowers actions such as taking out a mortgage Involuntary lein - correct answercreated by law ie. ad valorem tax lein Specific lein - correct answerattaches to one or more specific properties ex mortgage General lein - correct answerattaches to all property of the debtor example tax lien Lein - correct answercreated by recording a judgement
Tenancy in common - correct answerOwnership by two or more without rights of survivorship goes to your heirs not the other owners Joint Tenancy - correct answerOwnership by two or more with rights of survivorship goes to other owners overrides a will Trust - correct answerif a property is held by one party for the benefit of another Syndicate - correct answerwhen two or more parties join together to create and operate a real estate investment 4 leasehold estates - correct answerEstate for years, periodic Tenancy, Estate at will, tenancy at sufferance Estate for years - correct answerlease with specific starting and ending date EX. Month lease on a Apt. Periodic Tenancy - correct answerfixed period of time that automatically renewed EX. Month to Month Estate at will - correct answerLease can be terminated by either party at will without notice Tenancy at Sufferance - correct answerLease expires and tenant refuses to move out Holdover Tenancy - correct answerholdover tenant pays rent and it is accepted Statutory Estate - correct answercreated by law,vary from state to state, in TX community property and homestead are statutory estate Government rights in land (PETE) - correct answerPolice Power, Eminent Domain,Taxation, Escheat Police Power - correct answerPower given to a municipality to regulate and control the character and use of property for the health,safety,and general welfare of the public Zoning - correct answerCommon example of Police Power, non conforming use still grandfathered in, Example Old Apartment building in a now all residential neighborhood Variance - correct answerif you violate zoning you can request this in order to fix or prevent a violation Buffer zone - correct answerarea of land separating one land use for another Eminent Domain - correct answerThe right of the government to take private property for public use through the action of condemnation
Inverse Condemnation - correct answerWhen an individual forces the govt to buy his property Taxation - correct answerProperty taxes are the highest priority lein on real property Assessed Value - correct answervalue of property for tax purposes Special assessment tax - correct answerEx. Govt provides new side walk in neighborhood can charge the owner's of neighborhood this tax Escheat - correct answerProperty reverts to the state dies with no will,no heirs, no kindred. Also property is abandoned Riparian rights - correct answerrights for rivers,streams, small bodies of water Littoral rights - correct answerLakes, Oceans, large bodies of water Prior Appropriation Theory - correct answerfirst landowner to claim riparian rights exclusive rights Market Value - correct answerprice a willing seller will sell for, and price willing buyer will pay 4 Characteristics of Value (DUST) - correct answerDemand, Utility,Scarcity,Transferability CMA Comparative Market Analysis - correct answera tool licensee use to determine price for their property using current listings,recent sales and expired listings 3 Basic approaches to Appraisals - correct answermarket data or sales comparison,income or capitalization method, and replacement cost or summation approach Market data approach - correct answermostly residential properties compares sales to similar properties in the area 3-5 sales no more than 6 months old Income approach - correct answeror capitalization method used for income producing properties GRM x rent = Price or use GIM Cost approach - correct answeralso know as summation approach how much it would cost to reproduce or build examples are churches or govt buildings,new construction 3 types of depreciation in cost approach - correct answerPhysical deterioration,Functional obsolescence, Economic obsolescence
straight assumption - correct answernew buyer responsible, can not impact seller's credit score subject to assumption - correct answerbuyer not liable for loan can impact seller's credit score FHA Loan - correct answerrequire occupancy, assumable, insures the loan, the insurance on a FHA loan MIP- mtg ins. Premium VA Loan - correct answerGuarantees repayment of loan, The guarantee is for the top 25% of the loan, assumable, require occupancy Qualifications for VA - correct answerobtain certificate of Eligibility from VA,VA loan interest rates are set by mkt conditions, O down payment Blanket loan - correct answerCovers one than one piece of property Package loan - correct answerIncludes real and personal property ex. furnished condo Budget loan - correct answerincludes PITI examples are FHA,VA, and most amortized fixed rate loans are budget mortgages Escrow acct - correct answertaxes and insurance placed also called impound, trust, or reserve acct GPM Graduated pmt loan - correct answerpayments rise over years and then level off remaining term Conforming loans - correct answerLoans qualified to be purchased in the secondary market Truth in Lending Regulation Z - correct answerallow consumers understand the true cost of borrowing, must be giving within 3 business days ECOA Equal Credit Opportunity ACT - correct answerLenders can deny traditional financing if income is commission based.Child support is most likely reason for denial. FCRA Fair Credit Reporting ACT - correct answeran individual who has been denied credit is entitled to a free credit report to determine reason for denial Redlining - correct answerthe refusal to lend in a particular geographic area only lenders can be guilty of this Mtg Brokers - correct answeracts as intermediary between the borrower and lender
Mtg Banker - correct answerperson or firm not otherwise in banking that normally provides his/its own funds for mortgage Usury - correct answercharging an interest rate higher than the legal limit protects consumers Predatory lending - correct answerlender takes advantage of a consumers lack of knowledge regarding lending practices Lien Theory state - correct answerTX the lender has a lien and the borrower has title Principals duties (CRIP) - correct answerCompensation, Reimbursement, Indemnification, Performance Agents duties (OLD CAR) - correct answerObedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care *Trust is not a duty Blockbusting - correct answerpanic selling Exclusive Agency - correct answerbroker exclusive agent but owner can sell Exclusive Right to sell - correct answerbroker exclusive agent receives commission no matter who sells the property Ratification - correct answeragent acts w/o permission Estoppel - correct answercourt prevents the principal from denying that agency, agency by estoppel To be a Valid and enforceable (COLIC) - correct answercompetent parties, Offer and Acceptance, Legal Purpose, In writing, Consideration Sherman Anti-Trust Act - correct answerprohibits monopolies Radon mitigation - correct answerterm used to describe methods used to lower levels of radon in homes and other buildings HUD does not require radon testing for FHA loans Unilateral contract - correct answerbinds only one party example an option Bilateral contract - correct answerexchange promises which binds two birds ex sales contract Effective date - correct answercontract is the date on which the last party signs Chain of title - correct answerlist of all owners of the property
Unenforceable - correct answerex oral contract Express contract - correct answerwritten or stated implied contract - correct answeractions or evidence REAL ESTATE TRUST ACCT - correct answerbelow 1,000,000 access a fee 10.00 to bring balance to 1,700,000 invest in Treasury bills or notes,exceeds 3.5 million goes to state's general fund Paid out by the RE Trust Acct - correct answer100,000 per license and 50,000 per transaction Salesman education requirements - correct answer180 hrs w/min 180 core real estate courses, 60 hrs prin, 60 hrs contracts, 30 hrs law of agency,30 hrs finance Brokers edu requirements - correct answer900 classroom hrs 30hrs in RE Brokerage 4yrs active sales licensee Renewal Sae - correct answer90 core hrs in the nxt 2 years Conversion - correct answerspending commingled funds Senate Bill 489 - correct answerallows broker to act as intermediary, must give IABS at first substantive dialogue, must disclose representation oral or written Seller's Disclosure - correct answermust be given to a buyer before he signs an offer, not given has 7 days to terminate his offer MLS - correct answera licensee has 5 days to enter new listing into MLS Rule P53 - correct answerTitle companies are not permitted to provided food and beverages for a picnic or party for a single firm may have annual party
