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ACEABLE REAL ESTATE PRINCIPALS 1 EXAM PRACTICE TEST 2024
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ACEABLE REAL ESTATE PRINCIPALS 1 EXAM PRACTICE TEST
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ACEABLE REAL ESTATE PRINCIPALS 1 EXAM PRACTICE TESTA married couple purchased a primary residence for $600,000 in 2015. They lived there for seven years. In 2022, they sold the property for $1,000,000. How much profit will they owe capital gains tax on? - Answer- 0
What is a REALTOR®? - Answer- a member of the National Association of Realtors®.
Which of the following is NOT a category of the NAR® Code of Ethics? - Answer- Duties
to lenders
Select the statement that describes why trade fixtures are considered personal property.
- Answer- Trade fixtures are items that a tenant uses in their business that will be removed at the end of the lease.
What is the word used to describe something valuable that each party exchanges in order to demonstrate that they agree to the contract's terms? - Answer- consideration
In which type of residential property does a resident hold no actual ownership in the property, but instead holds a proprietary lease as a stockholder? - Answer- co-op
Where do the funds in the Real Estate Recovery Trust Account come from? - Answer- license holders
When a broker signs a listing agreement with a seller, under what classification of agency are they operating? - Answer- special agency
What does the ADA do? - Answer- Prohibits discrimination against people with disabilities
For which of following things can an agent NOT discriminate? - Answer- national origin
According to the Equal Credit Opportunity Act (ECOA), which of these factors can a lender NOT take into consideration when approving or denying a loan? - Answer- whether or not a person uses public assistance
According the Rectangular Survey system, what is the acreage of an area of land identified as the N 1/2 of the S/W 1/4 of the NE 1/4? - Answer- 20 acres
In Texas, mandatory membership to an HOA must be: - Answer- disclosed Which of the following best describes when a broker might act as an intermediary in Texas? - Answer- when both the seller and the buyer are clients of the same broker
What is the term for a rejection of an offer to buy or sell made with the simultaneous substitution of a new offer? - Answer- counteroffer
The primary difference between an executory and an executed contract has to do with : - Answer- whether or not the terms of the contract have been completely fulfilled by all parties
When land is in short supply and in high demand: - Answer- it will be more valuable
What is required for a broker to act as an intermediary in a real estate transaction? - Answer- written consent from both parties
Which of these events is least likely to be covered by standard hazard (homeowners) insurance? - Answer- Jason's basement flooded in a hurricane
What type of property rights are limited to 10 acres of contiguous parcels (for urban property) or up to 200 acres of rural property? - Answer- homestead rights
Which of these would create constructive notice that you owned a property? - Answer- recording the deed with the county
Who does a listing agent usually represent? - Answer- seller
Molly is part of a limited partnership. She does not handle the day-to-day business of the partnership, and she is liable only for the money she has invested in the partnership.
Based on this description, what kind of partner is Molly most likely to be? - Answer- limited partner
The starting point for a metes and bounds legal description is called a: - Answer- point of beginning
Oswald's home was foreclosed on. A contractor put a $5,000 mechanic's lien on the property on January 22, 2019. He owed $187,000 on his mortgage, originally taken out on May 1, 2015. He also owed $18,000 on a second mortgage, taken out September 13, 2017. He also owed $12,000 in property taxes. When the house is sold, in what order will these debts most likely be paid? - Answer- taxes, mortgage, second mortgage, mechanic's lien
How does a condo differ from a PUD? - Answer- PUD buyers purchase both the building AND the land it sits on while condo buyers do NOT purchase land Which of the following is NOT a duty an agent owes a customer or third party? - Answer- loyalty
Buyer Nancy has asked her agent, Brad, which of the homeowner's insurance policies she has examined are best for her. Brad's best course of action would be to: - Answer- inform Nancy that this advice should come from an insurance professional
Within what larger law can you find the law governing real estate occupations known as TRELA? - Answer- Texas Occupations Code
What should agents use as a basis for advising a prospect? - Answer- market information
Net listings and open listings are the same thing. - Answer- FALSE - An open listing allows multiple real estate brokers (and the owners themselves) the right to sell a property. A net listing, on the other hand, dictates the broker's commission based on the
difference between the listing price and sales price.
Which one of these is NOT one of the three basic forms of ownership? - Answer- community ownership
Fructus naturales are: - Answer- Trees, persistent decorative plantings (such as perennial landscape plants), and uncultivated plants
Gabby and Daniel agree to replace their existing contract with a new one and to allow Kelsey to take Daniel's place in the new contract as a party to the agreement with Gabby. Kelsey now has all of Daniel's rights and obligations in the contract. This is an example of: - Answer- novation
Which two rights refer to waterfront properties? - Answer- Riparian and littoral
If an applicant fulfills all requirements for licensure but hasn't found a sponsoring broker yet, are they able to get licensed? - Answer- Yes, the applicant can receive an inactive license from the commission.
Barry owned a piece of property. To ensure that it can easily be passed on to his heirs when he dies, he transferred ownership of the property to someone else, who manages it for his future heirs. What kind of ownership is this describing? - Answer- ownership in trust
Can the original offer be reconsidered and accepted by a party after they have already extended a counteroffer? - Answer- No. A counteroffer is a rejection of the original offer,
therefore, the original offer can no longer be accepted.
A condensed history of title to a tract of land that summarizes the transfers of ownership
and encumbrances is known as: - Answer- an abstract of title
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