Texas Principles of Real Estate Express Exam
Questions & Answers 100% Correct!!
What kind of professionals manage the legal aspects of a development project? - ANSWER Real Estate attorneys, title companies, surveyors, property
insurance companies and government regulatory officials
What types of professionals are involved in the transfer of rights and interest in Real Estate? - ANSWER Titles companies, Real Estate Brokers/ Sales Persons,
Mortgage Brokers, Mortgage Bankers, Appraisers, Insurers
Property is classified into what three types? - ANSWER Residential, Commercial, and Investment properties
Real Estate Agents in Texas would benefit from belonging to which two trade organizations? - ANSWER NAR - National Association of Realtors
Texas Assoc. of Realtors
If a broker chooses to specialize by geographic area, how might the area be defined? - ANSWER Natural Barriers, Streets/ Highways, By a certain set of Sub
Divisions
What are some of the individual brokerage services that one might perform for a pre-set fee? - ANSWER Comparative price analysis, prospect screening, site
analysis, Database search
,The laws most relevant to agents and brokers relate to what topics? - ANSWER Agency, Contracts, Disclosure, Environmental, Impact, Fair housing,
What are the four sources of real estate law? - ANSWER FederalGovernment, State Government, Local Government, Courts
Members of NAR (National Association of Realtors) Are Known as?? - ANSWER Realtors
What are the two types of Real Estate Managers? - ANSWER Property Managers and Asset Managers
Which action is often used to define specific aspects of newly created law? - ANSWER Court Decision
Market Equilibrium: - ANSWER a market tends toward a state of equilibrium in which supply equals demand, and price, cost, and value are identical.
Absorption - ANSWER the amount of available property that becomes occupied over a period of time.
What is the definition of value as it applies to real estate? - ANSWER The present worth of future benefits that would be gained from owning real property
How do elements of supply, demand and price interact in the market? - ANSWER In a continuous manner
What type of Real Estate User would be interested in the level of trade area competition? - ANSWER Retail User
,If Price Decreases? - ANSWER Demand is declining in relation to supply
Types of Real Estate Users - ANSWER Residential, Retail Industrial, office
Residential User:
Retail User:
Office:
Industrial User: - ANSWER 1) Quality of life, neighborhood, amenities,price
2) Trade, area, sales, competition
3)Efficiency, costs of Occupancy, Functionality
4) Labor pool, availability, supplies, Distribution Channels
How Many members in TREC ( Texas Real Estate Commission) - ANSWER Nine members - six licensed brokers and 3 members of the public
How long are the terms of TREC commission Members? - ANSWER Staggerd 6 Year Terms,
How long does the term of a commission member last and when does a term expire? - ANSWER Commission members serve staggered six-year terms with
the terms of three members expiring January 31 of each odd-numbered year.
, When will a court order a payment to an aggrieved party from the Recovery Fund? - ANSWER If a licensee cannot pay the full amount of the judgment
ordered by the court, the party may apply to the court in which the judgment was rendered for an order to pay the balance due from the real estate
recovery fund.
Three parties that don't need a license to sell Real Estate - ANSWER Attorneys at law, An Auctioneer, Receivers/ trustees of Bankruptcy working under court
order
Which of these persons would need a real estate license?
• A college graduate advertises he will sell properties of other students to raise tuition money for college.
• A person receives and delivers a $500,000 deposit to her principal broker from a buyer.
• A company vice president leases one of the company's warehouses to a storage firm - ANSWER A college graduate advertises he will sell properties of
other students to raise tuition money for college.
Which of these persons would need a real estate license?
• A homeowner advertises to lease his improved basement to a college student.
• A senior citizen charges an advance fee for referring an individual to her son who owns a leasing office in town.
• An attorney licensed in Texas advises a client about how to minimize liability in an upcoming Texas real estate transaction. - ANSWER A senior citizen
charges an advance fee for referring an individual to her son who owns a leasing office in town
What is the experience requirement for an applicant for a broker's license? - ANSWER At least four years of active experience in Texas as a license holder
during the 60 months preceding the date the application is filed
