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Texas Principles of Real Estate 1 questions with actual right answers.
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Texas Principles of Real Estate 1 questions with actual right answers.
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Texas Principles of Real Estate 1questions with actual right answers.
Under what conditions can a supervising broker appoint a license holder associated with the broker to
represent one party to a real estate transaction? ANS -With written consent of all parties
When must a seller's agent provide a written statement about brokerage services to a party? ANS -At
the time of the first substantive dialogue with the party
When must a buyer's agent provide a written statement about brokerage services to a party? ANS -At
first contact with the seller, landlord, or either party's agent
What principles govern an agency relationship? ANS -Both parties must consent to the relationship.
Both parties must agree to form the relationship.
The relationship is fiduciary - meaning the agent owes certain duties to the principal
Implied Agency ANS -when the actions of the parties indicate that they have mutually consented to an
agency. The persons involved may not have consciously planned to form an agency relationship.
However, their actions may unintentionally, inadvertently or accidentally form the relationship.
In order to generate business, in what four skill areas must a broker be proficient? ANS -Obtaining a
client listing,
Marketing a listing,
Facilitating the closing of a transaction &
Managing market information
What is a salesperson not allowed to do? ANS -Bind a client to any contract
Receive compensation directly from a client
Accept a listing or deposit that is not in the name of the broker
,What is an agent's foremost duty following acceptance of an offer? ANS -To submit the contract and the
earnest money to the employing broker without delay
What's the penalty for violating the Sherman Antitrust Act? ANS -Individual violators of the Sherman Act
can be fined up to $350,000 and sentenced to up to 3 years in federal prison for each offense;
corporations can be fined up to $10 million for each offense.
However, the Criminal Antitrust Penalty Enhancement and Reform Act of 2004 increased the maximum
criminal penalty for individuals to 10 years' imprisonment and a $1 million fine, and the maximum
penalty for corporations to a $100 million fine.
Broker Jed tells buyer Sam that when he signs his purchase agreement he must also purchase a
subscription to Jed's monthly newsletter. What would you say about this? ANS -This is a tie-in
arrangement which is prohibited by the Sherman Antitrust Act.
How did the courts make changes to the caveat emptor principle to better protect consumers? ANS -By
making it a requirement for sellers to provide buyers with a Sellers Disclosure Notice prior to the
effective date of a contract and by obligating licensees to disclose any known or latent defects in a
property.
The Texas Deceptive Trade Practices-Consumer Protection Act applies to what aspects of real estate?
ANS -Advertising, offering for sale, selling, or leasing of any real or personal property
How long does a consumer have to bring a DTPA suit? ANS -within two (2) years after the deceptive act
occurred (or within two (2) years after the consumer discovered, or should have discovered, the
deceptive act.
What is significant about the Fair Housing Amendments Act of 1988? ANS -It added handicap and
familial status to the list of protected classes.
If a person feels like he or she has been discriminated against, how long does that person have to file a
complaint? ANS -With HUD - within one year of the alleged act
In state or federal court - within two years of the alleged act
, What was the significance of the Plessy v. Ferguson Supreme Court decision of 1896? ANS -Allowed the
use of "separate but equal" racially-segregated accommodations and facilities. In other words, as long as
separate housing for blacks and whites were judged to be equal, they were legal.
Why is it important for licensees to understand the Americans with Disabilities Act? ANS -Brokers need
to evaluate whether they need to make physical changes to their office space to comply with the law.
Licensees should inform their commercial and investor clients of the need to have their leases
professionally evaluated and their offices inspected for compliance.
What is the definition of discriminatory advertising? ANS -Advertising that indicates a preference,
limitation or discrimination based on race, color, religion, handicap, sex, familial status or national
origin.
With what agency can discrimination complaints be filed in Texas? ANS -Texas Workforce Commission
Civil Rights Division
What does ECOA prohibit? ANS -Discrimination against applicants on the basis of race, color, religion,
national origin, sex, marital status, age or dependency on public assistance
Why was the Community Reinvestment Act passed? ANS -To prevent redlining and to encourage banks
and thrifts to help meet the credit needs of all segments of their communities, including low- and
moderate-income neighborhoods
What does the Home Mortgage Disclosure Act require? ANS -That lenders report statistical information
each year to insure that lenders are not restricting loans to certain individuals or neighborhoods to
exclude them from obtaining a mortgage
What is testing? ANS -A simulated housing transaction designed to obtain evidence of differential
treatment based on an individual's protected class status.
What are the five canons contained in the Canons of Professional Ethics and Conduct? ANS -Fidelity
Integrity
Competency
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