Allied Real Estate Principles 1 Final Exam with complete solutions

Equal Credit Opportunity Act (ECOA) The law that ensures all consumers an equal chance to obtain credit is: street address is an informal reference and is not sufficient for a legal description client/broker One of the significant factors in any agency relationship is the liability that the agent or the principal may create for the other. Therefore, the broker's actions may create liability for the ___ and sometimes the client's actions may create liability for the _____. an encumbrance What is a claim, charge, or liability that attaches to and is binding on real property? Title VIII of Civil Rights Act of 1968 and the Fair Housing Amendments Act of 1988 The two pieces of legislation that comprise the Fair Housing Act are: commission agreement A contract between a client and a broker in which the broker agrees to accept valuable consideration from the client is an example of: B - Mortgage Non-financial encumbrances affect the physical use of condition of the property, which of the following is not an example: A. Easement B. A Mortgage C. A profit-a-prendres D. A Restriction Community Property What type of concurrent ownership exists between married individuals? Net Listing What type of listing agreement takes place when the broker receives all the money from the sale of the property that is in excess of the net proceeds to the seller? Exclusive Right to Sell Listing listing agreement in which the broker retained by the seller is the only broker authorized to act on behalf of that particular seller. a. all of the choices The primary purpose of the DTPA is to protect consumer against: a. all of the choices b. breaches of warranties c. unconscionable actions c. false, misleading, and decepive business or insurance practices Errors and Omissions Insurance The policy that covers various claims for errors, mistakes, neglect, or carelessness during the normal course of business is: Four Corners Doctrine principle stating that the whole document rather than its individual parts convey the purpose or meaning of a contractual document Statute of Limitations A federal or state statute setting the maximum time period during which a certain action can be brought or certain rights enforced. Texas Fair Housing Act The Texas law that established the Texas Workforce Commission Civil Rights Division to investigate violations of fair housing laws is: Underwriting client's mortgage loan A real estate agent's activities can be divided into all the following areas except: a. previewing properties b. underwriting a client's mortgage loan c. prospecting for listings d. matching prospective buyers with properties A fiduciary relationship What is created between an agent and principal in an agency relationship? Exclusive Right to Sell Listing A listing agreement in which the broker retained by the seller is the only broker authorized to act on behalf of that particular seller is an a. describe the land with estimated boundaries (Note: It describes the land with EXACT boundaries) A boundary description and survey does all the following, except: a. describe the land with estimated boundaries b. provide the legal description of the property c. determine the length and direction of landlines d. establish the position of landlines on the ground Personal Umbrella Policy a _____ covers the amount of loss above the limits of a basic homeowners policy. This type of policy can significantly expand liability coverage by providing a liability limit about that contained in the homeowner's policy. Texas Real Estate Broker-Lawyer Committee What was created in 1983 as an advisory body that develops and recommends various contract forms to TREC for the use by licensees? Encroaching grasses According to the rule of _____, when a grass spreads across boundary lines and takes root, it becomes the neighbor's property. D. Trade Fixtures All of the following are examples of personal property except: a. money b. movable goods c. condominiums d. trade fixtures information about special flood hazard areas ____ form published by TAR addresses whether or not the property is subject to flooding and if flood insurance is needed. The Median home price What economic metric is used by economists to compare home sale prices and measure increases and decreases? d. profit As fiduciary, the real estate licensee is bound by law to show all the flowing, except: a. performance b. loyalty c. full disclosure d. profit Planned Unit Development (PUD) Which type of common interest development (CID_ is characterized by fee ownership of the dwelling along with the lot underneath it? The recorded Plat system What type of system identifies property via the registered lot and block on a recorded subdivision plat or survey? d. a written agreement. All of the following are required to have a contract that is legally binding and enforceable, except: a. mutual consent between the parties b. lawful objective c. legally competent parties d. a written agreement small independent firms __ usually have one or two office locations with an office environment that may be more personal branch office license If a broker maintains more than one place of business to meet the public to transact business, the broker must obtain a: Partition Action Property owned as tenancy in common or joint tenancy can be sold or partitioned under a: