Texas Real Estate Exam
1,501+ Practice Questions & Answers
Every question includes a detailed explanation. Organized by the 12 topics on the Texas real estate salesperson exam.
Finance
171 questions- Texas is a community property state. This means that property acquired during marriage:
- Under Texas community property law, for a married person to convey real property, generally:
- A Texas homestead is protected from forced sale for all of the following EXCEPT:
- Under the Texas Home Equity law, a homeowner may borrow against their home equity provided the total debt against the homestead does not exceed:
- An FHA loan differs from a conventional loan primarily because FHA loans are:
- In Texas, the primary security instrument used in residential real estate lending is a:
- Under a Texas deed of trust, foreclosure is typically handled as a:
- Texas non-judicial foreclosure sales take place on:
- Texas homestead laws protect a homeowner's primary residence from forced sale by creditors EXCEPT for:
- Texas home equity loans are governed by strict constitutional limits. The total debt secured against a Texas homestead cannot exceed:
- The Truth in Lending Act (TILA) requires lenders to disclose the Annual Percentage Rate (APR) to borrowers. The APR differs from the interest rate because it:
- A Texas borrower obtains an FHA loan with a 3.5% down payment. The purchase price is $280,000. What is the loan amount?
- Discount points paid at closing on a Texas mortgage loan are used to:
- Under the SAFE Act, mortgage loan originators (MLOs) in Texas must be licensed through:
- A VA loan in Texas guarantees a portion of the loan for eligible veterans. This guarantee eliminates the need for:
- A Texas adjustable-rate mortgage (ARM) with a 2/6 cap means:
- Private Mortgage Insurance (PMI) is typically required on a conventional Texas mortgage when the loan-to-value (LTV) ratio exceeds:
- In Texas, a wraparound mortgage (wrap) involves:
- Under the Equal Credit Opportunity Act (ECOA), a Texas lender may NOT deny a loan based on:
- The Texas Veterans Land Board (VLB) provides home loan programs for qualifying Texas veterans. The VLB is unique in that it:
- A Texas buyer qualifies for a USDA Rural Development guaranteed loan. This type of loan is available for properties:
- A Texas borrower's debt-to-income ratio (DTI) for a conventional loan typically should not exceed:
- A Texas seller offers to 'carry back' part of the purchase price as a second lien. This type of financing is called:
- The Community Reinvestment Act (CRA) requires Texas financial institutions to:
- A Texas property has an existing assumable VA loan at 3.5% interest. A new buyer who is not a veteran:
- Under the Dodd-Frank Act, a Qualified Mortgage (QM) generally prohibits:
- A Texas FHA loan requires both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP). Currently, the UFMIP is approximately:
- A Texas borrower receives a Loan Estimate (LE) within 3 business days of applying for a mortgage. The LE must include:
- The Home Mortgage Disclosure Act (HMDA) requires Texas lenders to:
- In Texas, a home equity line of credit (HELOC) secured by the homestead can be used for:
- A Texas property owner transfers their home to their adult child using a deed while still retaining a life estate. The parent's estate plan benefit is that:
- Texas law requires that a Notice of Right to Cancel (right of rescission) be given to borrowers in which of the following transactions?
- A Texas conventional conforming loan must stay within the loan limits set by:
- A Texas borrower with a 720 credit score and 5% down payment on a $300,000 home will most likely need:
- An amortizing Texas mortgage loan has a fixed payment. Over time, the portion of each payment going to interest:
- A Texas borrower is considering a 15-year mortgage versus a 30-year mortgage at the same interest rate. Which statement is TRUE?
- A Texas reverse mortgage allows homeowners aged 62 or older to:
- A Texas construction loan is converted to a permanent mortgage upon completion of construction. This conversion is called:
- Texas law allows seller financing using a Contract for Deed (also called Land Contract). A key risk for Texas buyers in a Contract for Deed is:
- Under the Dodd-Frank Act, a seller who provides financing for more than three properties per year in Texas must comply with:
- A Texas home appraisal comes in $15,000 below the contract price. The buyer has an appraisal contingency. The MOST LIKELY outcome if the parties cannot negotiate a solution is:
- A Texas borrower has a gross monthly income of $7,500. Their proposed PITI (principal, interest, taxes, insurance) payment is $2,100 and other monthly debts total $750. What is their back-end (total) DTI ratio?
- When a Texas lender issues a commitment letter, it means:
- A Texas FHA loan requires the property to meet minimum property standards (MPS). If an appraiser notes that the roof has less than two years of remaining life, the lender will likely require:
- In Texas, a purchase-money mortgage given to the seller to finance all or part of the purchase price has priority over:
- A Texas 'blanket mortgage' is used primarily in:
- The primary purpose of PMI (Private Mortgage Insurance) in Texas is to:
- A Texas borrower with a 680 FICO score qualifies for a conventional loan at 5% down but will pay a higher PMI premium than a borrower with a 780 score. This difference reflects:
- A Texas mortgage with a due-on-sale clause means:
- Texas courts have held that a homestead property cannot be mortgaged for a home equity loan unless a specific waiting period has passed from the date the property is designated as homestead. This waiting period is:
- Under the Texas Constitution, a home equity loan or HELOC cannot be made to a homestead owner more than:
- The Texas Home Equity Loan/HELOC rules require that at least 12 days must pass between:
- A Texas lender offers a 5/1 ARM with a 2/2/5 cap structure. This means the rate can increase by how much at the first adjustment?
- Texas Housing Finance Corporation (TDHCA) bond programs provide which benefit to qualifying Texas homebuyers?
- A Texas 'piggyback' loan structure (80/10/10) means:
- Under Texas law, a lender who fails to release a paid-off deed of trust lien within the required timeframe can be subject to:
- In Texas, the foreclosure process under a deed of trust requires the trustee to send written notice to the borrower at least how many days before the foreclosure sale?
- A Texas borrower applies for a $500,000 mortgage in 2024. This loan likely exceeds the conforming loan limit and would be classified as:
- A Texas mortgage loan officer asks a borrower for their most recent two years of tax returns. This is typically required for borrowers who are:
- Texas law requires a 3-day right of rescission for certain home equity transactions. This right allows the homeowner to cancel the loan within 3 business days of:
- A Texas assumption of a seller's existing mortgage requires:
- The Texas Bootstrap Loan Program provides:
- A Texas property is being purchased in a 1031 tax-deferred exchange. To qualify, the replacement property must be identified within how many days of the relinquished property closing?
- A Texas seller who carries back a second lien to help a buyer complete a transaction should understand that their second lien is:
- A Texas borrower's lender requires a debt-service coverage ratio (DSCR) of at least 1.25 for a commercial loan. If the property's NOI is $125,000, what is the maximum annual debt service allowed?
- In Texas, the homestead ad valorem tax cap for school taxes (ceiling) means a senior homeowner who qualified in 2010 at $3,500 tax will pay in 2024:
- Under the TRID (TILA-RESPA Integrated Disclosure) rules, which fee cannot increase at all between the Loan Estimate and Closing Disclosure (Zero Tolerance)?
- A Texas buyer is purchasing a home using an FHA 203(k) loan. This loan is used for:
- An amortization schedule for a Texas mortgage shows the allocation of each payment between principal and interest. In an early payment, the interest component is larger because:
- A Texas buyer qualifies for the TDHCA My First Texas Home program. This program provides:
- Under the Homeowners Protection Act (1998), PMI on a conventional mortgage must be automatically terminated when the LTV reaches:
- A Texas lender requires flood insurance for a property in a Special Flood Hazard Area (SFHA). This is required by:
- A Texas lender charges an origination fee of 1% of the loan amount plus $500. On a $300,000 loan, the total origination fee is:
- A Texas lender requires the buyer to purchase 'lender's title insurance' but not the owner's policy. This protects:
- In Texas, the usury laws set maximum interest rates on loans. For most consumer loans, the maximum rate is governed by:
- A Texas homeowner refinances and receives a new first mortgage. The existing second mortgage (a home equity line) is:
- A Texas mortgage statement shows an escrow impound account. This account is used to:
- Under RESPA, a Texas lender must provide the borrower with a Loan Estimate within how many business days of receiving a complete loan application?
- Under Texas law, a deficiency judgment after foreclosure allows a lender to:
- A Texas lender who uses 'yield spread premium' (YSP) is receiving compensation for:
- A Texas bank provides a construction-to-permanent loan. During the construction phase, interest is typically calculated on:
- A Texas homebuyer signs a rate lock agreement for 30 days. If the loan doesn't close within 30 days:
- In Texas, a borrower can reduce their mortgage payment by making extra principal payments. This strategy is beneficial primarily because:
- A Texas seller offers to pay the buyer's 'closing costs' as part of the contract negotiation. From a lender's perspective, these seller concessions are:
- A Texas property owner refinancing their mortgage pays off their existing $250,000 balance and gets a new $280,000 mortgage. The $30,000 difference is:
- The Texas Mortgage Credit Certificate (MCC) program provides qualifying homebuyers with:
- Under Texas law, the foreclosure deed (trustee's deed) conveys title to the highest bidder at the foreclosure sale. The title conveyed is:
- A Texas commercial borrower's lender requires personal guaranty. This means:
- In Texas, a 'hard money' loan is characterized by:
- A Texas real estate investor uses the debt coverage ratio (DCR) to evaluate a purchase. A DCR of 1.0 means:
- Under the Texas Veterans Land Board (VLB) Land Loan program, eligible Texas veterans can purchase:
- A Texas home seller who finances part of the purchase with a second lien 'seller carry back' should be aware that:
- A Texas lender 'charges off' a non-performing loan. This means the lender has:
- A Texas borrower who received a Predatory Lending TILA violation (like inadequate disclosure) may have the right to rescind the loan for up to:
- A Texas USDA Guaranteed loan has a maximum income limit. This limit is based on:
- Under Texas law, a lender must provide a final Closing Disclosure at least 3 business days before closing. A 'business day' under TRID is defined as:
- A Texas FHA loan allows a seller to contribute up to 6% of the sales price toward the buyer's closing costs. These are called:
- Under the Texas Home Equity Loan rules, if a homeowner fails to make payments and the lender seeks to foreclose, the foreclosure must be through:
- A Texas property owner's mortgage is sold to another servicer. Under RESPA, the owner must be notified:
- Texas law regulates 'prepayment penalties' on home loans. For home equity loans under Texas Constitution Article XVI, prepayment penalties are:
- A Texas buyer's lender requires a 'title report' before funding. This is because the lender wants to ensure:
- A Texas 'stated income' or 'no-income verification' mortgage loan is generally:
- In a Texas real estate transaction, 'earnest money' serves what primary function?
- A Texas buyer qualifies for a Conventional 97 program. This means they can put down:
- Under the Equal Credit Opportunity Act (ECOA), Texas lenders must notify applicants of a credit decision within:
- A Texas HELOC (Home Equity Line of Credit) is a:
- When a Texas mortgage lender 'qualifies' a borrower, they are primarily evaluating:
- A Texas borrower's VA loan 'entitlement' refers to:
- A Texas mortgage broker differs from a mortgage banker in that a mortgage broker:
- Under TRID, a 'changed circumstance' that allows a lender to issue a revised Loan Estimate includes:
- A Texas property is appraised at $450,000 with a $400,000 first mortgage. A second lien is being considered. The combined LTV (CLTV) would be:
- A Texas lender who originates, holds, and services loans in their own portfolio (not selling them to Fannie/Freddie) is known as a:
- In Texas, the 'prepayment penalty' provision of a conventional mortgage must be disclosed:
- The Texas Constitution Article XVI Section 50 limits home equity loans to a maximum loan-to-value ratio of:
- A Texas veteran using a Texas Veterans Land Board (VLB) home loan must:
- The Truth in Lending Act (TILA) requires lenders to disclose the Annual Percentage Rate (APR) to borrowers. The APR differs from the interest rate because it includes:
- When a Texas lender 'calls' a loan, this means:
- In Texas, what is the primary purpose of private mortgage insurance (PMI)?
- In Texas, a 'wraparound mortgage' involves:
- The Home Mortgage Disclosure Act (HMDA) requires lenders to collect and report data on mortgage applications, including the race, ethnicity, and gender of applicants. The primary purpose of HMDA is to:
- In Texas, a 'seller carryback' or seller financing arrangement where the seller accepts a promissory note from the buyer means:
- Under Texas law, a home equity loan (Section 50(a)(6) loan) can be refinanced no more than once per:
- A Texas borrower obtains an FHA loan. FHA mortgage insurance premium (MIP) differs from conventional PMI because:
- A 'bridge loan' in Texas real estate is typically used when:
- A 'graduated payment mortgage' (GPM) is a loan that:
- Under the Equal Credit Opportunity Act (ECOA), a lender may NOT use which factor in making a credit decision?
- When an FHA loan is assumed by a new buyer in Texas, the new buyer must:
- Texas's 'Homestead Act' limits the ability to foreclose on a primary residence. This protection, combined with Texas's lack of a state income tax, makes Texas unique because:
- A Texas lender originates a mortgage and then sells it to Fannie Mae on the secondary market. The lender continues to collect payments from the borrower. This arrangement is called:
- An 'adjustable-rate mortgage' (ARM) in Texas typically has a lower initial interest rate than a fixed-rate mortgage because:
- The Texas Department of Housing and Community Affairs (TDHCA) administers the 'My First Texas Home' program, which provides:
- Under RESPA, a 'kickback' or unearned fee arrangement where a settlement service provider pays a referral fee to someone for steering business to them is:
- A Texas homebuyer applies for a USDA Rural Development Guaranteed Home Loan. This loan program is designed for:
- A 'VA loan' for eligible Texas veterans has which of the following unique benefits compared to conventional loans?
- A 'balloon mortgage' in Texas requires the borrower to:
- In Texas, a 'purchase money mortgage' refers to:
- Under the Dodd-Frank Act, a 'qualified mortgage' (QM) is designed to protect borrowers by ensuring lenders have verified the borrower's:
- Texas is unique in that it did not adopt home equity lending until 1998. Under the Texas Constitution, which provision governs home equity loans?
- In Texas real estate finance, a 'participation mortgage' involves:
- Under TRID, the Loan Estimate provided to a Texas homebuyer within three business days of application includes which of the following key disclosures?
- In Texas, a 'reverse mortgage' allows elderly homeowners (typically 62+) to:
- Texas usury laws prohibit charging interest rates that exceed the legal maximum. Under Texas Finance Code, most real estate loans are subject to:
- In Texas, a 'prepayment penalty' on a mortgage loan:
- In Texas, the concept of 'lender liability' in real estate transactions includes scenarios where a lender may be liable for:
- A Texas buyer qualifies for a conventional loan with a 10% down payment. The lender requires PMI. The annual PMI premium is 0.7% of the loan amount. On a $300,000 purchase, what is the monthly PMI cost?
- A 'home equity line of credit' (HELOC) in Texas differs from a traditional home equity loan in that:
- In Texas, a 'permanent buydown' of an interest rate using discount points means the buyer pays money at closing to:
- Under Texas law, a 'deed of trust' must contain which essential elements?
- In Texas, 'seller concessions' in a real estate transaction (where the seller pays closing costs on the buyer's behalf) are limited by:
- In Texas, a 'survey fee' at closing is paid for by the:
- In Texas, a 'wraparound deed of trust' involves a seller who:
- Texas's 'Homestead Preservation District' (HPD) program is designed to:
- A Texas homebuyer uses a mortgage credit certificate (MCC) from TDHCA. The MCC allows the buyer to claim a federal tax credit equal to 20% of the mortgage interest paid annually. If the buyer pays $12,000 in annual mortgage interest, the tax credit is:
- A Texas homebuyer's debt-to-income (DTI) ratio is calculated by dividing:
- Under Texas Finance Code, the maximum legal interest rate for most loans (unless pre-empted by federal law or contracted otherwise) is:
- In Texas, 'construction-to-permanent' (C2P) financing combines which two loans into one process?
- Texas homestead laws protect a primary residence from most forced sales. However, which of the following liens CAN result in forced sale of a Texas homestead?
- In Texas, lenders are prohibited from charging more in fees than what was disclosed on the Loan Estimate, with certain exceptions. This protection comes from:
- In Texas, a 'home equity line of credit' (HELOC) established under Article XVI Section 50(t) must:
- A Texas borrower with an FHA loan has paid their mortgage for 11 years and the loan balance is now at 78% of the original purchase price. The FHA MIP (mortgage insurance premium) on this loan:
- In Texas, a 'junior lien' means:
- Texas's Article XVI Section 50(a)(6) home equity rules include a '12-day cooling off period' which means:
- Texas's 'Save Our Homes' (SOH) cap limits the annual increase in the appraised value of a homestead for tax purposes to:
- Under the Homeowners Protection Act, conventional PMI must be automatically canceled by the lender when the principal balance reaches:
- A Texas homebuyer's loan is sold to Fannie Mae after closing. The buyer's monthly payments now go to the loan servicer, who in turn remits the principal and interest to Fannie Mae. This process describes:
- In Texas, a 'purchase money mortgage' that a seller takes back as part of the sale price typically:
- A Texas lender who makes a predatory loan to an elderly homeowner—charging excessive fees, misrepresenting terms, and using high-pressure tactics—may be liable under all of the following EXCEPT:
- In Texas, a 'conforming loan' is one that meets the loan limits and underwriting guidelines established by:
- In Texas, a 'Texas Vet' home loan through the VLB (Veterans Land Board) offers eligible veterans:
- In Texas, the 'Homeownership Across Texas' (HAT) program is a TDHCA initiative that provides:
- In Texas, the 'Truth in Lending Act' (TILA) requires lenders to provide the Annual Percentage Rate (APR) to borrowers so they can:
Contracts
165 questions- The TREC One to Four Family Residential Contract is:
- In a Texas residential contract, the option period gives the buyer the right to:
- Under the Texas TREC contract, if the buyer fails to timely deposit the earnest money, the seller may:
- In Texas, the effective date of a real estate contract is:
- A Texas contract addendum for property subject to mandatory membership in a Property Owners Association (POA) is used to:
- Which of the following is considered a 'material fact' that must be disclosed in a Texas real estate transaction?
- The Texas One to Four Family Residential Contract (Resale) is a TREC-promulgated form. 'Promulgated' means:
- Under the Texas One to Four Family Residential Contract, the Third Party Financing Addendum is used when:
- In a Texas residential contract, the option period grants the buyer the right to:
- Under the Texas TREC contract, earnest money is held by:
- The Texas Farm and Ranch Contract differs from the One to Four Family Contract primarily because it includes provisions for:
- If a Texas residential contract has no closing date specified and both parties cannot agree on one, what is the likely result?
- Under the Texas One to Four Family contract, the seller's failure to deliver title by the closing date without good cause gives the buyer the right to:
- A Texas real estate sales contract becomes binding when:
- In Texas, which addendum is used when a buyer's purchase is contingent on the sale of their current home?
- The Texas TREC Seller's Disclosure Notice (OP-H) is required to be delivered by the seller to:
- The Texas Deceptive Trade Practices Act (DTPA) gives consumers the right to sue for damages when a seller makes a false, misleading, or deceptive representation. Which of the following best describes a DTPA violation in real estate?
- Under the Texas One to Four Family Residential Contract, the default number of days for the title company to deliver title commitment after the effective date is:
- The Texas Residential Construction Liability Act (RCLA) affects real estate contracts involving new construction by:
- A Texas buyer in a new home purchase signs a sales contract directly with the builder. Texas licensees in new home sales are:
- In Texas, a contract for the sale of real estate must be in writing to be enforceable under the:
- The TREC Addendum for Property Located Seaward of the Gulf Intracoastal Waterway is required for properties in certain coastal areas of Texas. This form primarily addresses:
- Under the TREC residential contract, if the seller makes repairs that are not completed satisfactorily, the buyer's primary remedy before closing is to:
- A Texas contract provision stating that 'time is of the essence' means:
- In a Texas real estate transaction, earnest money that is not in dispute is released when:
- Under the TREC One to Four Family Contract, which of the following items is typically considered real property that conveys with the sale unless excluded?
- When a Texas seller counters a buyer's offer, the original offer is:
- The TREC Addendum for Reservation of Oil, Gas, and Other Minerals is used in Texas when:
- The TREC One to Four Family Contract requires the buyer to deposit earnest money no later than:
- In a Texas transaction, the 'effective date' of a real estate contract is defined as:
- A Texas TREC-promulgated lease form (Residential Lease) is used for:
- The Seller's Disclosure Notice (TREC OP-H) is NOT required for which type of Texas sale?
- Under the TREC Residential Condominium Contract, the buyer has the right to review which condominium document(s) during their review period?
- Texas contract law holds that a contract for the sale of real estate must have four essential elements. Which of the following is NOT one of them?
- A Texas buyer makes an offer with an option period. The seller accepts. Before the option expires, the buyer terminates using the option. The seller is entitled to:
- In Texas, a real estate contract that is 'void' differs from one that is 'voidable' in that:
- The TREC Addendum for Coastal Area Property is required for properties located:
- In a Texas real estate transaction, 'specific performance' as a remedy means:
- Which TREC addendum would a Texas buyer use to address a property located in a municipal utility district (MUD)?
- Under the Texas One to Four Family Contract, the Survey section requires the seller to provide:
- A Texas buyer terminates a contract after the option period using the Third Party Financing Addendum's financing contingency. The buyer is entitled to:
- Under the Texas One to Four Family contract, the default for who pays the escrow fee is:
- The Texas TREC 'Addendum for Property Subject to Mandatory Membership in a Property Owners Association' is required when:
- In a Texas buyer's offer, consideration for the contract is provided by:
- Under the TREC contract, if the title commitment reveals an unacceptable exception (such as an undisclosed easement), the buyer may:
- In Texas, the TREC-required contract form for a condominium purchase is:
- A Texas real estate purchase contract is considered 'executed' when:
- In Texas, the TREC contract's 'Acceptance of Property Condition' clause means the buyer is agreeing to:
- A Texas seller counteroffers the buyer's offer with a higher price. The buyer then accepts the counteroffer with minor changes. This creates a:
- Under the Texas TREC contract, a buyer's failure to close due to default (no financing or inspection contingency protection remaining) entitles the seller to:
- Under Texas law, novation in a real estate contract means:
- A Texas seller accepts the buyer's offer but crosses out and initials one clause before signing. This action creates:
- Under the TREC One to Four Family Contract, if the property does not pass the buyer's inspection and the buyer and seller cannot agree on repairs during the option period, the buyer's right is to:
- In Texas real estate, a 'listing' agreement authorizes the broker to act as the seller's agent. Which type of listing gives the broker the most protection (exclusive right to a commission)?
- A Texas net listing is:
- The TREC Back-Up Contract Addendum is used when a buyer wants to:
- The Texas Residential Buyer/Tenant Representation Agreement (TREC/TAR form) is typically a(n):
- In Texas, an option contract differs from a purchase contract in that:
- Under the TREC contract's property condition paragraph, the seller agrees to maintain the property in its present condition. If the seller fails to maintain the property before closing, the buyer may:
- A Texas buyer and seller enter into a contract with a 14-day option period. The buyer wants to extend the option period by 7 more days. This requires:
- The Addendum for Property Located Seaward of the Gulf Intracoastal Waterway informs buyers about all of the following EXCEPT:
- Under Texas law, a real estate sales contract that violates the Statute of Frauds because it is not in writing is:
- The TREC Seller Financing Addendum is used when:
- The TREC contract's Third Party Financing Addendum allows the buyer to terminate if they are unable to obtain financing approval within a specified period. The buyer must notify the seller of the inability to obtain financing:
- In Texas, a 'backup offer' is useful because:
- Texas TREC contracts provide for which type of notice to be effective upon receipt by the other party?
- In Texas, a real estate agent who drafts contract language not found in TREC promulgated forms is:
- The TREC Residential Lease requires the landlord to provide the tenant with a copy of the lease:
- In Texas, a 'material breach' of a real estate contract gives the non-breaching party the right to:
- Under the TREC contract's environmental paragraph, the seller represents that they have no knowledge of conditions on the property that would violate laws. If this representation proves false, the buyer's remedy is:
- The TREC contract form provides that the survey used must show certain items. Which is NOT typically shown on a Texas survey used at closing?
- A Texas buyer has signed a purchase contract. Before closing, the seller notifies the buyer that they have received a higher offer. The seller cannot accept the higher offer because:
- Which TREC addendum allows a buyer to terminate a contract if the property's lender-ordered appraisal comes in below the contract price?
- The TREC residential contract's financing deadline is the date by which the buyer must receive written financing approval. If this date passes without approval, the buyer must notify the seller in writing or:
- A Texas buyer in a new construction contract uses a builder's contract rather than a TREC promulgated form. The buyer's agent should advise the buyer to:
- In Texas, when a contract for sale is executed and all conditions have been satisfied but the closing has not yet occurred, the legal relationship of the parties is:
- A Texas listing agreement specifies that the broker is entitled to a commission if the property is sold to 'any buyer procured by the broker.' This language creates a(n):
- The 'merger doctrine' in Texas real estate means that:
- Under Texas law, a provision in a residential lease that exempts the landlord from liability for negligence in maintaining the property is generally:
- When a Texas buyer enters into an option contract for a property, the 'consideration' for the option itself is:
- The TREC Texas Residential Lease Addendum for Oral Lease is:
- A Texas contract contains an 'escalation clause' that allows the buyer to offer more than competing offers up to a maximum amount. TREC rules regarding such clauses are:
- The TREC 'Non-Realty Items Addendum' is used to include in the sale:
- In a Texas real estate transaction, the 'closing' refers to:
- Under the TREC contract, if the buyer fails to deposit the earnest money within the required timeframe, the seller may:
- A Texas home under contract is damaged by a storm before closing. Under the TREC contract's property condition provisions, who bears the risk of loss?
- In Texas, the 'parole evidence rule' in contract law means that:
- A Texas seller's agent receives an offer well below the listing price while the seller is traveling. The agent should:
- The TREC contract requires that notice of termination during the option period be delivered to the seller by:
- The TREC contract's 'paragraph 4' addresses the license holder disclosure required when a real estate agent has a personal interest in the property. This disclosure:
- In Texas, a 'purchase option' agreement (not a simple option period) requires the optionor (seller) to hold the property available for purchase. During the option period:
- A Texas contract states 'time is of the essence' for all deadlines. The buyer misses the financing deadline by one day. The seller:
- In Texas, the TREC commercial contract (Unimproved Property) is used for:
- A Texas buyer who cannot close due to a lender-required appraisal coming in below contract price uses the 'Addendum Concerning Right to Terminate Due to Lender's Appraisal.' If they elect to terminate, they receive:
- The Texas TREC 'Information About Brokerage Services' (IABS) notice is required to be given by:
- In Texas, the TREC Promulgated Addendum 'Seller's Temporary Residential Lease' allows:
- The TREC 'Buyer's Temporary Residential Lease' (also called a pre-closing occupancy agreement) allows the buyer to:
- Under the TREC contract, property tax prorations at closing are typically based on:
- A Texas buyer makes a full-price offer with no contingencies. The seller rejects it because they want to wait for a higher offer. The buyer's agent should advise the buyer that:
- The TREC contract's 'Amendment' form is used to:
- In Texas, the 'doctrine of equitable conversion' holds that after a real estate contract is signed but before closing:
- A Texas real estate contract is subject to 'rescission' when:
- Under the TREC contract, who is responsible for maintaining the property between the effective date and closing?
- A Texas seller agrees to sell their property 'subject to' an existing mortgage. This means:
- Under the Texas TREC residential contract, the closing date can be extended by mutual agreement. If only the buyer requests an extension:
- In Texas real estate, 'contingent' means a contract is:
- A Texas buyer who has signed a contract with an option period wants to hire a home inspector. The buyer should hire the inspector:
- In a TREC One to Four Family Residential Contract, the option fee gives the buyer the right to:
- In a TREC contract, earnest money is typically held by:
- In a TREC residential contract, if the buyer's lender-required repairs exceed the seller's agreed repair limit and the parties cannot agree, the buyer's remedy is typically:
- In Texas, a contract for the sale of real estate must be in writing to be enforceable under:
- A Texas buyer makes an offer and the seller responds with a counteroffer changing the price. The buyer's original offer is now:
- Under a TREC contract, 'time is of the essence' means:
- TREC's Addendum for Sale of Other Property by Buyer allows the buyer to make the purchase contingent on the sale of their current home. If the seller receives another acceptable offer during this contingency period, the buyer typically has:
- In Texas, what happens to earnest money if the buyer terminates under the option period (before the option expires)?
- In Texas, a 'backup contract' on a property already under contract means:
- A TREC Farm and Ranch Contract is used when the property includes:
- Under the TREC Condominium Contract, the buyer has a right to review the condominium documents. If the buyer does not approve the condominium documents, they may:
- In a TREC contract, 'possession' of the property typically transfers to the buyer:
- In Texas, a 'contract for deed' (installment land contract) is potentially problematic for buyers because:
- A TREC contract provision requiring the buyer to obtain approval for a specific loan (e.g., conventional at 80% LTV) is called:
- The 'merger doctrine' in Texas real estate law means that once a deed is delivered and accepted at closing:
- The TREC contract requires the buyer to deliver the earnest money to the escrow agent within a specified number of days. If the buyer fails to deliver earnest money on time:
- Under Texas law, the 'buyer's right to terminate' in a TREC residential contract without an option period exists primarily when:
- TREC's Addendum for Property Subject to Mandatory Membership in an Owners Association (HOA Addendum) requires the seller to:
- In a Texas real estate contract, 'specific performance' is a remedy where:
- Under a TREC contract, the 'closing date' is:
- In Texas, a real estate contract that contains an illegal provision is:
- In Texas, a residential lease with an option to purchase is treated as:
- In a TREC contract, the 'survey period' gives the buyer time to review the survey and object to survey exceptions. If the buyer timely objects to a survey matter the seller cannot or will not cure, the buyer may:
- An 'as-is' addendum in a Texas real estate contract means the buyer agrees to:
- In a Texas real estate transaction, the 'effective date' of a contract is:
- When a TREC Residential Addendum for Seller's Disclosure of Information on Lead-Based Paint is required, it applies to:
- Under Texas law, a seller who has signed a listing agreement and then receives an acceptable offer is obligated to:
- Under Texas contract law, 'consideration' for a real estate contract means:
- In Texas, an 'addendum' to a real estate contract is:
- The TREC contract's 'prorations' paragraph specifies how ongoing costs are allocated between buyer and seller. If taxes are prorated to the date of closing and closing occurs October 31, the seller is responsible for how many months of taxes?
- The TREC One to Four Family Residential Contract includes a paragraph on 'title' that requires the seller to provide:
- In a Texas real estate transaction, when a buyer defaults and the seller elects to terminate the contract and retain the earnest money, this is generally treated as:
- In Texas, when a buyer uses the TREC Financing Addendum and fails to obtain loan approval by the deadline despite good faith efforts, the buyer may:
- Under the TREC Residential Contract, if both buyer and seller default, the resolution of the earnest money requires:
- In Texas, a 'counter-offer' letter marked as counter-offer #3 indicates:
- Under a TREC contract, if the seller makes modifications to the buyer's offer by changing terms and signing and returning it to the buyer, this constitutes:
- In Texas, a lease that is NOT in writing is:
- The TREC contract's provision allowing the seller to terminate if the buyer's earnest money is not delivered on time means the seller has:
- In Texas, a 'contingency' in a real estate contract is a condition that must be met for the contract to remain binding. If a contingency is NOT met, the general consequence is:
- In a Texas transaction, when the seller accepts the buyer's offer, acceptance must be communicated to the buyer. Under contract law, the offer is accepted when:
- In the TREC One to Four Family Contract, 'fixtures' are defined as items that:
- A Texas buyer who has signed a contract and paid an option fee decides to exercise their right to terminate on the last day of the option period. To validly exercise the right, the buyer must:
- In a Texas residential purchase, the buyer hires an inspector who discovers the HVAC system has a defective heat exchanger. The buyer notifies the seller. Under the TREC contract (without a specific repair term agreed), the buyer may:
- In Texas, the 'parol evidence rule' in real estate contracts means that:
- In a Texas residential contract, which clause protects the buyer if the property's appraised value comes in below the contract price?
- Under the TREC residential contract, if the property is damaged by fire before closing, the risk of loss is typically on:
- In Texas, 'specific performance' is more readily available in real estate disputes than in most other contract disputes because:
- Under the TREC contract, the 'inspection period' and the 'option period' are:
- Under Texas contract law, 'mutual assent' in a real estate contract requires:
- In Texas, the TREC contract's 'survey' provision requires the seller to:
- Under the TREC contract, if the property is condemned by a government agency before closing, the buyer typically has the right to:
- Under Texas law, if both a deed and a subsequent written contract address the same property but conflict, courts generally give priority to:
- In Texas, a real estate contract involving a minor (person under 18) is generally:
- In Texas, a 'lease-purchase' agreement differs from a simple lease with an option because in a lease-purchase:
- In Texas, 'specific performance' as a remedy for breach of a real estate contract requires the plaintiff to prove:
- In Texas real estate, a contract can be 'rescinded' (undone) by mutual agreement, which means:
- The TREC promulgated form for 'Amendment' to a contract is used when:
- Under Texas real estate law, a 'novation' of a mortgage occurs when:
Texas License Law
151 questions- Which agency regulates real estate licenses in Texas?
- How many hours of pre-license education are required to obtain a Texas real estate sales agent license?
- The Texas real estate sales agent licensing exam consists of how many questions?
- What is the minimum passing score on the Texas real estate sales agent exam?
- In Texas, a real estate sales agent license must be sponsored by:
- Which form must Texas licensees provide to unrepresented consumers at the first substantive dialogue?
- Texas real estate licenses are renewed every:
- How many hours of continuing education are required for Texas sales agent license renewal?
- The TREC Real Estate Recovery Fund was established to:
- In Texas, the Seller's Disclosure Notice is required to be provided by the seller in all of the following transactions EXCEPT:
- Under TREC rules, a Texas license holder who engages in a real estate transaction involving their own property must:
- TREC has authority to take which of the following actions against a Texas licensee?
- Under Texas Occupations Code Chapter 1101, which of the following acts requires a real estate license?
- How many hours of continuing education must a Texas sales agent complete during each two-year license renewal period?
- The six required pre-license courses for a Texas sales agent include Principles of Real Estate I and II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and:
- A Texas real estate sales agent license is valid for how long after initial issuance?
- A TREC-licensed sales agent who wishes to become a broker in Texas must have at least:
- Which of the following individuals is EXEMPT from Texas real estate licensing requirements?
- The Texas Real Estate Commission is composed of how many members appointed by the governor?
- Under TREC rules, a sales agent who receives an earnest money check must deliver it to their sponsoring broker within:
- The Texas Real Estate Recovery Trust Account protects consumers who suffer financial harm due to the act or omission of a licensed agent. What is the maximum recovery per transaction?
- When a Texas sales agent's sponsoring broker dies or has their license revoked, the sales agent's license automatically becomes:
- Which of the following is a TREC-promulgated addendum used when purchasing property in a Texas groundwater conservation district?
- A Texas real estate broker who fails to maintain required trust account records may face which TREC penalty?
- A Texas real estate licensee who is found to have engaged in dishonest dealing or misrepresentation may have their license:
- A Texas sales agent who advertises a property must include in the advertisement:
- The Texas Broker-Lawyer Committee creates promulgated contract forms for TREC. This committee is composed of:
- Under Texas law, a real estate license is NOT required to:
- A Texas broker's license is issued in an inactive status when:
- A Texas real estate broker who wishes to operate under a name other than their own name must:
- Under TREC rules, a licensed real estate inspector in Texas is regulated by:
- TREC's Standards of Practice (SOPs) for real estate inspectors require inspectors to:
- A Texas real estate licensee who represents a buyer in a transaction where the seller is paying the commission is representing:
- TREC rules require a Texas sales agent to place the name of their sponsoring broker in all advertising. This rule is designed to:
- A Texas real estate license may be placed on inactive status. While on inactive status, the licensee:
- Under TREC rules, which of the following is considered an 'act' requiring a real estate license in Texas?
- A person who holds a Texas real estate license and acts as a buyer in a transaction they are personally purchasing must:
- TREC's Real Estate Recovery Trust Account can be accessed by a consumer who obtains a final judgment against a Texas licensee. To access the fund, the consumer must:
- Texas law allows a foreign (out-of-state) broker to cooperate with a Texas broker on a transaction. In this arrangement, the out-of-state broker:
- Under Texas Occupations Code § 1101.652, the following conduct subjects a Texas licensee to disciplinary action by TREC EXCEPT:
- A licensed Texas real estate agent who is also employed full-time in another profession may hold a real estate license:
- Texas real estate continuing education courses must be approved by:
- A Texas real estate broker who operates a sole proprietorship must conduct business under:
- Under TREC rules, who is responsible for supervising the activities of a sponsored sales agent?
- A Texas sales agent who receives a referral fee from a title company for sending clients to them is:
- TREC's required Legal Update I and Legal Update II courses each consist of:
- Under TREC rules, a Texas licensee who represents a party in a transaction where their close relative is on the other side must:
- A Texas brokerage entity (corporation, LLC, or partnership) must have a TREC-licensed broker who:
- A Texas real estate licensee's obligation to account for all money received in a transaction means:
- A Texas sales agent switches sponsoring brokers. What must happen for the agent's license to become active with the new broker?
- Under Texas law, a person who violates Texas Occupations Code Chapter 1101 by performing real estate acts without a license may be subject to:
- The Texas Real Estate Inspector licensing program under TREC requires real estate inspectors to carry which type of insurance?
- TREC rules require that a Texas brokerage maintain a written policy describing how the broker will handle:
- A Texas broker who allows their license to expire and continues to operate must know that:
- A new TREC rule requires that buyer's representation agreements used by Texas licensees must include a written disclosure of the compensation the buyer's agent will receive. This requirement stems from:
- Under updated TREC and NAR rules effective 2024, a Texas buyer's agent must have a signed buyer representation agreement BEFORE:
- A Texas real estate agent who is also a licensed auctioneer and conducts a real estate auction:
- TREC's Sunset Review occurs approximately every:
- Under TREC Rule 535.2, a Texas broker must maintain a positive physical or electronic presence in all transactions to ensure:
- A Texas agent who receives a commission check made payable to the agent personally (not to the broker) should:
- TREC's disciplinary process begins with a complaint. Which of the following can file a complaint against a Texas licensee with TREC?
- Under TREC guidelines, a Texas licensee's online advertising must include:
- The principal purpose of the Texas Occupations Code Chapter 1101 is to:
- A Texas broker who wishes to operate as a business entity (LLC or corporation) must:
- TREC's Inspector committee is responsible for:
- A Texas sales agent who changes their mailing address must notify TREC within:
- Which of the following actions by a Texas licensee constitutes 'commingling' of funds?
- Under Texas law, which of the following is a TREC-promulgated form that licensees MUST use?
- A Texas agent's license has been revoked by TREC. The agent may appeal the revocation to:
- Under TREC rules, a licensed Texas salesperson who moves from one sponsoring broker to another must:
- TREC promulgated forms may be used by which of the following parties?
- The Texas Real Estate License Act (now codified in Occupations Code Chapter 1101) was first enacted in:
- TREC's 'Broker Responsibility' rules require designated brokers to:
- A Texas broker who forms an independent contractor relationship with their sales agents must ensure that:
- Under Texas law, a real estate brokerage's 'trade name' must be:
- A Texas licensee convicted of a felony involving fraud or misrepresentation may have their license:
- When a Texas real estate broker closes their brokerage, their sponsored agents must:
- A Texas 'referral agent' license allows the holder to:
- Texas TREC's enforcement division investigates complaints. Upon completing an investigation, TREC may take which of the following actions?
- A Texas broker who receives a client's earnest money must deposit it into a trust account within:
- The Texas REALTOR® Code of Ethics is maintained by:
- Under Texas Occupations Code § 1101.556, a licensee must notify TREC of a criminal conviction or deferred adjudication within:
- A Texas real estate licensee who is also an attorney must:
- TREC's 'Inspector Standards of Practice' (SOPs) require inspectors to report as 'Deficient' items that:
- A Texas broker must maintain a written policy for each of the following EXCEPT:
- Under TREC rules, a Texas real estate agent's advertising must NOT do which of the following?
- A Texas real estate agent who operates a team under a broker must ensure that the team name:
- When TREC issues a formal Disciplinary Action against a Texas licensee, the licensee has the right to:
- A Texas real estate license renewal fee is paid to:
- Texas Occupations Code § 1101.155 grants TREC the authority to:
- A TREC-licensed Texas real estate agent who moves to another state may:
- A Texas sales agent's license expires and the agent continues to perform real estate activities for 30 days without renewing. Under TREC rules, this agent is:
- TREC's statutory authority to regulate real estate license holders in Texas is derived from:
- A real estate license holder in Texas who is found guilty of making a false promise to induce a sale may face TREC disciplinary action including:
- A Texas real estate broker who wants to operate as a single-member LLC must:
- TREC's Real Estate Recovery Trust Account provides funds to compensate consumers who have been harmed by a licensed Texas real estate agent when:
- A Texas real estate license holder who commits fraud, misrepresentation, or dishonest dealing in a transaction may be reported to TREC by:
- In Texas, a 'designated broker' for a business entity is personally responsible for:
- A Texas real estate agent who receives a referral fee from a home warranty company for each client referred must:
- Texas Occupations Code requires that a real estate license holder complete how many hours of continuing education every two years to renew their license?
- Under TREC rules, a real estate sales agent in Texas must have their license sponsored by:
- TREC may take disciplinary action against a license holder for which of the following?
- TREC's charge to regulate real estate inspectors in Texas comes from:
- When TREC receives a complaint against a license holder, the complaint process typically begins with:
- In Texas, real estate advertisements by agents must include:
- TREC requires that the Seller's Disclosure Notice (SDN) be provided to the buyer by the seller in most residential transactions. The SDN is required under:
- Texas Occupations Code Chapter 1101 defines 'real estate' to include all of the following EXCEPT:
- TREC requires a real estate brokerage to have a written policy addressing which topics?
- Under TREC rules, a Texas broker who receives trust funds from a client must deposit them:
- TREC rules prohibit a Texas real estate license holder from doing which of the following?
- TREC license applicants in Texas with a felony conviction must:
- A Texas real estate license holder who is placed on inactive status by TREC:
- A Texas real estate sales agent who wants to change sponsoring brokers must:
- A TREC-licensed real estate inspector in Texas is required to provide which document to their client before the inspection?
- Under Texas Occupations Code, a person who acts as an unlicensed real estate broker may be subject to:
- Under TREC rules, a real estate broker who closes their office or ceases operations must:
- Under TREC rules, which of the following is a prohibited real estate activity for a Texas license holder?
- TREC's 'Standards of Practice' for real estate inspectors define the minimum requirements for home inspections. When an inspector observes a condition beyond the scope of their inspection, they should:
- In Texas, the pre-licensing education requirement for a sales agent applicant is:
- TREC's Canons of Professional Ethics and Conduct apply to all Texas real estate license holders and include principles of:
- Texas Occupations Code requires license holders to notify TREC within 30 days of certain events. Which event requires notification?
- TREC requires that real estate advertisements for properties must be:
- TREC requires that a real estate brokerage maintain transaction records for a minimum of:
- In Texas, a real estate broker who performs real estate brokerage under an assumed name (DBA) must:
- A Texas real estate agent who accepts a listing must provide the seller with:
- A Texas real estate broker who terminates their license must:
- Texas Occupations Code Section 1101.556 requires that license holders provide a copy of any written contract to the parties when:
- Under TREC rules, a Texas real estate license holder who acts as the seller or buyer in a real estate transaction must disclose their license status because:
- Texas real estate license holders are required to use TREC-promulgated forms when applicable. A license holder may use a different contract form only when:
- A Texas sales agent who fails to complete required continuing education before their license renewal date will:
- A Texas real estate broker who sponsors agents must keep which of the following records for each sponsored agent?
- A Texas real estate broker may NOT pay compensation to a sales agent from another brokerage for referral of a listing or buyer. Instead, the payment must be made to:
- When TREC audits a Texas broker's trust account and finds that client funds have been commingled with the broker's personal or operating funds, TREC may:
- TREC's Enforcement Division may pursue disciplinary action based on findings from all of the following EXCEPT:
- A Texas real estate license applicant who is not a U.S. citizen may still obtain a Texas license if they:
- When a Texas real estate agent terminates their relationship with their sponsoring broker, the agent's license:
- TREC's 'moral turpitude' standard for license eligibility relates to criminal convictions involving:
- The Texas Real Estate License Act (Texas Occupations Code Chapter 1101) requires license holders to have 'competency' in the transactions they undertake. A competency standard means:
- In Texas, a real estate appraiser and a real estate agent are different types of license holders. The key distinction is that appraisers:
- In Texas, the 'Real Estate Inspection Recovery Fund' functions similarly to TREC's Real Estate Recovery Trust Account, but specifically for:
- Under TREC rules, a real estate license holder who receives funds must safeguard them as:
- TREC's oversight of Texas real estate licensees is funded primarily through:
- TREC's complaint investigation process generally proceeds in which order?
- TREC has jurisdiction over all license holders in which types of transactions?
- In Texas, real estate license holders are required to use TREC's promulgated Seller's Disclosure Notice form. The primary purpose of this requirement is to:
- Under Texas Occupations Code Chapter 1101, a person who receives compensation for auctioning real property must have a Texas real estate license UNLESS they:
- TREC's 'inactive' license status means the holder cannot:
- The Texas Legislature can change TREC's authority by amending Texas Occupations Code. This legislative oversight means that:
- TREC requires that a broker maintain adequate supervision over their sponsored agents. This includes all of the following EXCEPT:
- A TREC-licensed real estate agent in Texas who wants to become a broker must meet all of the following requirements EXCEPT:
- The Texas Real Estate Commission (TREC) requires salesperson applicants to complete how many total hours of qualifying education?
Real Estate Math
136 questions- A Texas property has a market value of $425,000. The assessed value is 100% of market value. The school district tax rate is $1.10 per $100, the city rate is $0.65 per $100, and the county rate is $0.45 per $100. What is the total annual property tax before any exemptions?
- A Texas homeowner receives a $100,000 homestead exemption on their $350,000 home. If the combined tax rate is $2.50 per $100, what is the annual tax bill?
- A broker earns a 6% commission on a $390,000 sale and splits the total commission 50/50 with the cooperating broker. The listing agent receives 60% of their broker's half. What does the listing agent earn?
- A rectangular commercial lot is 200 feet wide and 400 feet deep. It sells for $12 per square foot. What is the total sale price?
- A Texas property has an appraised value of $420,000. The county appraisal district applies an exemption of $25,000 for a homestead exemption. The tax rate is $2.20 per $100 of taxable value. What is the annual property tax?
- A listing agent earns a 3% commission on the sale of a $475,000 home. How much does the agent earn?
- A buyer needs to borrow $240,000. Their lender quotes an annual interest rate of 6%. What is the monthly interest for the first payment (interest-only calculation)?
- A property in Texas was purchased for $180,000 five years ago and now sells for $225,000. What is the percentage of appreciation?
- A Texas commercial building generates gross annual rents of $120,000. The operating expense ratio is 40%. What is the net operating income (NOI)?
- A Texas investor purchases a rental property for $350,000 with a 25% down payment. What is the loan amount?
- A Texas sales agent sold a home for $520,000. The total commission was 6%, split 50/50 between listing and buyer's broker. If the listing agent receives 55% of their broker's portion, how much does the listing agent earn?
- A property's net operating income is $45,000 and it was purchased for $600,000. What is the capitalization rate?
- A Texas property sold for $285,000. The seller paid a 6% commission and $4,200 in closing costs. The seller's original purchase price was $220,000. What is the seller's net profit?
- Using the income approach, a Texas duplex rents both units for $1,100/month each. The vacancy rate is 5% and annual operating expenses are $9,000. What is the NOI?
- A Texas broker lists a property for $380,000. After 60 days, the seller reduces the price by 5%. What is the new list price?
- A Texas property has a loan balance of $210,000 at 5% annual interest. What is the interest portion of the next monthly payment?
- An investor buys a Texas property for $400,000, makes $50,000 in improvements, and sells it for $530,000. Ignoring taxes and selling costs, what is the return on investment?
- A Texas landlord charges $1,500/month rent. The tenant pays a two-month security deposit. How much is the security deposit?
- A Texas listing expires after 6 months with no sale. The broker spent $2,400 in marketing costs. The seller owes the broker:
- A Texas property is assessed at $490,000 with a homestead exemption of $40,000. The tax rate is $2.15 per $100 of taxable value. What is the annual tax bill?
- A Texas investor purchases a 4-unit apartment complex for $640,000. Each unit rents for $900/month. What is the gross rent multiplier (GRM)?
- An agent lists a Texas home with a 6% commission. The home sells for $415,000. The listing and selling brokers split the commission 50/50. The listing agent receives 60% of the listing broker's share. How much does the listing agent earn?
- A buyer in Texas is purchasing a $330,000 home with a 20% down payment. Points cost 1% of the loan amount each. If the buyer buys 2 points, what is the total cost of the points?
- A Texas commercial property has a potential gross income (PGI) of $180,000. Vacancy and collection loss is 8%. What is the effective gross income (EGI)?
- A Texas building has 15,000 rentable square feet. It is 90% occupied at $18/SF/year. What is the annual rent collected?
- A Texas broker charges a management fee of 8% of collected rent. Monthly rent collected is $12,500. What is the monthly management fee?
- A Texas home sold for $445,000. The seller's closing costs were 1.5% of the sales price, and the commission was 5.5%. The seller's total closing expenses were:
- A Texas investor paid $500,000 for a commercial property and wants a 9% return on their investment. What minimum annual NOI does the investor require?
- A Texas home under contract lists $3,200 in prorated property taxes at closing. If taxes for the full year are $7,680, how many days of the year has the seller owned the property until closing?
- A 20-acre Texas ranch is selling for $3,500 per acre. What is the total purchase price?
- A Texas borrower with a $320,000 mortgage at 6.5% annual interest has a monthly P&I payment of $2,023. After making one payment, approximately how much of that first payment went to interest?
- A Texas commercial property generates an annual NOI of $60,000. Comparable properties are selling at a 7.5% cap rate. What is the indicated value?
- A Texas agent received a referral fee of $1,500 for sending a client to another brokerage. The agent's regular commission from a $375,000 sale at 3% was also earned. What is the agent's total compensation?
- A Texas property owner has a loan balance of $180,000. They sell the home for $290,000. After paying a 6% commission and $3,500 in closing costs, and paying off the loan, how much do they net?
- A Texas property purchased for $250,000 two years ago is now worth $280,000. The annual appreciation rate (simple) is approximately:
- A Texas agent lists a property at $425,000. After 45 days, the agent suggests reducing the price by 4%. What is the new list price?
- A Texas property generates monthly rents of $4,800. Operating expenses are $1,920 per month. What is the annual NOI?
- A Texas buyer obtains a $280,000 mortgage at 7% annual interest for 30 years. Using a factor of $6.65 per $1,000 borrowed, what is the approximate monthly P&I payment?
- A Texas commercial property has a gross rent of $240,000 and a GRM of 8.5. What is the estimated value?
- A Texas property manager collected $45,000 in rent in March. The management fee is 9%. How much is the management fee for March?
- A Texas buyer makes an offer of $285,000 with $5,000 earnest money and a $250 option fee for a 10-day option period. If the buyer terminates on day 7, they receive back:
- A 15-unit Texas apartment complex has potential gross income of $216,000/year. Vacancy is 6% and operating expenses are $65,000/year. What is the NOI?
- A Texas buyer purchases a $375,000 home with a 10% down payment. The lender charges 1.5 points. What is the total cost of the points?
- A Texas commercial building has 8,000 SF. It is leased at $22/SF/year. The operating expense ratio is 35%. What is the NOI?
- A Texas duplex has a GRM of 12. If each unit rents for $950/month, what is the estimated value?
- A Texas broker charges 7% on the first $100,000 and 4% on the balance of the sale price. If a property sells for $350,000, what is the total commission?
- A Texas property sold for $310,000. The buyer financed $248,000. What is the loan-to-value ratio?
- A Texas home is listed for $395,000. The buyer offers $380,000 and the seller counters at $389,000. The parties settle at $385,000. At 5.5% commission split equally, how much does the listing agent's broker receive?
- A Texas investor collects $3,600/month rent on a property purchased for $480,000. What is the annual gross rent yield?
- A Texas investor paid $550,000 for a property and sold it 3 years later for $660,000. Ignoring all costs, what was the total percentage gain?
- A Texas building rents for $2,200/month. The owner wants a 10% annual return on their investment. What is the maximum price the investor should pay?
- A Texas commercial property has an asking price of $1,200,000. NOI is $84,000/year. What is the cap rate being asked?
- A Texas home sold for $460,000. The buyer paid $23,000 down (5%). The PMI rate is 0.85% of the loan amount per year. What is the monthly PMI?
- A 5,000 SF Texas office is leased at $18/SF/year NNN. Annual property taxes are $12,000, insurance is $4,000, and maintenance is $8,000. What does the tenant pay annually?
- A Texas apartment building has 20 units renting at $850/month each. Vacancy is 5%. Annual operating expenses are $85,000. What is the annual NOI?
- A Texas property is under contract at $275,000. The buyer's lender requires the property to appraise at or above the purchase price for a 90% LTV loan. What is the minimum appraised value needed?
- A Texas commercial tenant signs a 5-year lease on 2,500 SF at $20/SF/year for Year 1, with annual escalations of 3%. What is the Year 2 annual rent?
- A Texas home sale closes on March 15. Annual property taxes are $6,000 and the tax year runs January–December. How much does the buyer owe in prorated property taxes (buyer's share from March 15 to December 31)?
- A Texas investor needs a property to generate $50,000 annual NOI with a 7% cap rate. What is the maximum price they should pay?
- A Texas property generates $7,500/month rent. The operating expense ratio is 42%. What is the monthly NOI?
- A Texas house was purchased for $165,000 and the owner made $22,000 in improvements. The owner later sells it for $210,000. What is the gain?
- A Texas broker manages a property and collects 9% of monthly gross rents. For February, gross rent collected was $18,500. What is the management fee?
- A Texas sales agent receives 60% of their broker's commission split. The total commission was $18,000 (split 60/40 between listing and selling broker). If this agent is the selling agent, how much does the agent earn?
- A Texas property has a potential gross income of $96,000, vacancy of 8%, and operating expenses of $28,000. If the cap rate is 8.5%, what is the estimated value?
- A Texas broker earned a total commission of $24,500. The broker's office split is 60% to the agent and 40% to the broker. How much does the broker keep?
- A Texas commercial building with 10,000 SF rents for $25/SF annually. Vacancy is 10% and total annual operating expenses are $95,000. At a 7% cap rate, what is the value?
- A Texas home is listed at $349,000. It sells for 97% of list price. What is the sale price?
- A Texas loan requires the borrower to pay 2 discount points. On a $265,000 loan, the cost is:
- A Texas rental property generates $2,400/month rent. Annual taxes are $4,800, insurance is $1,200, maintenance is $2,400, management is $2,160, and vacancy is $1,440. What is the NOI?
- A Texas property sold for $512,000 with a 6% commission. The commission was split equally between the listing and selling broker. If the listing agent receives 50% of the listing broker's split, how much does the listing agent earn?
- A Texas buyer puts 15% down on a $320,000 home. What is the loan amount and what PMI rate (0.75%) results in?
- A Texas property is taxed at $2.40 per $100. The owner files a homestead exemption of $50,000 reducing the appraised value from $380,000 to $330,000. Annual tax is:
- A Texas commercial building has 20,000 rentable SF. Current rent is $18/SF/year and 85% is occupied. Annual operating expenses are $150,000. What is the NOI?
- A buyer makes an offer of $289,000, the seller counters at $295,000, and they settle at $292,500. At a combined 6% commission, how much total commission is earned?
- A Texas property is 150 ft x 200 ft. The owner wants to calculate the area in acres. (1 acre = 43,560 SF). What is the area?
- A Texas commercial property has an EGI of $180,000 and an operating expense ratio (OER) of 38%. What is the NOI?
- A Texas seller nets $198,000 after paying a 5.5% commission and $4,500 in other closing costs. What was the sale price?
- A Texas rental property is purchased for $360,000. Annual gross income is $36,000. What is the gross rent yield?
- A Texas property manager collects monthly rents totaling $22,000. The management fee is 8.5%. What is the annual management fee?
- A 640-acre Texas section of land is being subdivided into 10-acre lots. How many lots will be created?
- A Texas investor paid $775,000 for a property. It appreciates 4% per year. What is the value after 2 years (simple appreciation)?
- A Texas home has a monthly mortgage payment (P&I) of $1,850 and annual insurance of $1,800, and annual taxes of $4,200. What is the total monthly PITI?
- A Texas seller receives $298,500 after paying a 6% commission. What was the original sale price?
- A Texas property is taxed at $2.25 per $100 of taxable value. The appraised value is $425,000 with a $40,000 homestead exemption. What is the annual tax?
- A property sold for $325,000. The listing agent's brokerage receives 3% and the buyer's agent's brokerage receives 3% of the sales price. Each broker keeps 50% and pays 50% to their agent. How much does the listing agent receive?
- A commercial property generates $120,000 annual NOI and was purchased for $1,500,000. What is the cap rate?
- A buyer puts 20% down on a $400,000 home. The lender charges 2 points at closing. How much are the points in dollars?
- A property has an annual gross rent of $48,000 and a gross rent multiplier (GRM) of 12. What is the estimated value of the property?
- A seller nets $285,000 from the sale of their home. The sales commission was 6% of the sales price. What was the sales price?
- A house is assessed at 85% of its market value of $280,000. The tax rate is $2.50 per $100 of assessed value. What are the annual property taxes?
- A property is purchased for $200,000. After 5 years, it is sold for $260,000. What is the total percentage appreciation?
- An investor pays $180,000 for a rental property. Annual rent is $18,000, operating expenses are $6,000, and the mortgage payment is $12,000 per year. What is the net operating income (NOI)?
- A borrower takes out a $200,000 mortgage at 6% annual interest for 30 years. What is the monthly interest for the first payment?
- A property is listed at $350,000. The buyer offers $330,000 with a 3% seller-paid closing cost contribution. What is the effective cost to the seller if they accept?
- An investor purchased a rental property for $250,000 and sold it for $310,000 five years later. What is the annual appreciation rate (simple, not compounded)?
- A property with an NOI of $45,000 is valued using a cap rate of 7.5%. What is the estimated property value?
- A 6-unit apartment building has monthly rents of $900 per unit. Annual vacancy is 8%. Operating expenses are $25,000 annually. What is the annual NOI?
- A duplex has monthly rents of $1,200 per unit. Annual operating expenses are $8,400. Using an 8% cap rate, what is the estimated value?
- A Texas real estate broker's office had total commission income of $480,000 in one year. The broker pays 60% to agents and retains 40%. How much did the broker retain?
- A home is purchased for $320,000 with a 15% down payment. What is the loan amount?
- A property is listed at $425,000. The final sale price is $410,000. What percentage of the list price did the property sell for?
- A Texas homeowner has a $250,000 mortgage at 5% for 30 years. If the monthly payment is $1,342.05, how much interest is paid in the first month?
- An investor wants a 10% return on investment (ROI) on a commercial property. The property's NOI is $55,000 per year. What is the maximum the investor should pay?
- A Texas homeowner refinances a $180,000 mortgage. The new loan has a 1.5% origination fee and 0.5 discount points. What are the total upfront loan costs?
- A Texas commercial building has 10,000 square feet of rentable space. Market rent is $18 per square foot per year. The building is 90% occupied. Annual operating expenses are $60,000. What is the NOI?
- A property was purchased for $185,000. It is being depreciated for income tax purposes over 27.5 years (residential). What is the annual depreciation deduction (land value is $35,000)?
- A commercial lease specifies base rent of $2,000/month plus a percentage rent of 5% of annual gross sales exceeding $400,000. If the tenant has annual gross sales of $600,000, what is the total annual rent?
- A property management company manages 120 units. Average monthly rent is $1,100. Management fee is 9% of collected rent. If the vacancy rate is 5%, what are the annual management fees?
- A property is subject to a mechanic's lien of $15,000 and a first mortgage of $175,000. At foreclosure, the property sells for $210,000. After paying foreclosure costs of $5,000, how much does the first mortgage holder receive?
- A seller wants to net $230,000 after paying a 5.5% commission and $3,500 in seller closing costs. What must the property sell for?
- A Texas commercial property has an annual NOI of $80,000. The buyer wants a 9% return. What is the maximum offer price?
- A 4-unit apartment building is listed at $550,000. Monthly rents are $950 per unit. What is the gross rent multiplier (GRM)?
- A Texas homeowner has a $250,000 home with a $180,000 mortgage. After selling for $265,000 and paying $15,000 in closing costs, what are the net proceeds?
- A Texas investor purchases a property for $380,000, with 25% down and a 6.5% mortgage on the balance. If the annual debt service (P&I) is approximately $22,800, what is the debt service coverage ratio (DSCR) if the NOI is $30,000?
- A Texas property was purchased for $420,000. After 3 years, it is sold for $480,000. The seller pays a 5% commission and $4,500 in other closing costs. What is the net profit?
- A Texas investor wants to determine the 'break-even occupancy rate' for a rental property. Annual fixed expenses are $24,000 and potential gross income is $60,000. What occupancy rate must be achieved to break even?
- A Texas property has an assessed value of $320,000. The homestead exemption reduces taxable value by $40,000. The effective tax rate is 2.35%. What are the annual property taxes?
- A Texas broker charges a 6% commission on a $450,000 sale. The listing brokerage and buyer's brokerage split the commission equally. The buyer's agent is on a 70/30 split with their broker. How much does the buyer's agent earn?
- An investor buys a Texas property for $500,000, puts 20% down, and finances the rest at 5.5% for 20 years. If the monthly payment (P&I) is approximately $2,750, what is the annual debt coverage if the NOI is $45,000?
- A Texas seller agrees to carry back a $50,000 second mortgage at 8% interest-only for 5 years. What is the monthly payment?
- A 20-unit apartment building in Texas has annual potential gross income of $240,000. After 7% vacancy and $85,000 in annual operating expenses, what is the NOI?
- A Texas buyer qualifies for a maximum total debt-to-income ratio of 43%. Gross monthly income is $6,500. Current monthly debts (car, student loans) total $800. What is the maximum monthly housing payment (PITI) the buyer can qualify for?
- A property in Texas sells for $615,000. The buyer puts 20% down and pays 1.5 points on their loan. What is the total of the down payment plus loan fees?
- A Texas real estate investor analyzes a property with an asking price of $750,000, NOI of $52,500, and loan constants suggesting an annual debt service of $42,000 (on a $562,500 loan). What is the cash-on-cash return on the equity investment?
- A commercial property has annual NOI of $95,000 and was purchased for $1,200,000. After 5 years, the property's NOI has grown to $110,000 and the market cap rate is 7%. What is the estimated current value?
- A Texas commercial property sold for $1,800,000. The net operating income (NOI) is $126,000. What capitalization rate was implied by the sale?
- A Texas homeowner refinances their $220,000 mortgage to a lower rate. Closing costs are $4,500. The new payment saves $200/month compared to the old payment. How many months until the break-even point?
- An investor purchases a Texas property for $400,000 and plans to sell it in 7 years. Assuming 4% annual appreciation (compounded), what will the property be worth at sale?
- A Texas seller carries back a seller-financed note for $85,000 at 7% for 15 years. What is the total interest paid over the life of the loan if monthly payments are $764.15?
- A Texas office lease is structured as: base rent of $25/sq ft per year, NNN with estimated expenses of $8/sq ft per year. For a 2,000 sq ft space, what is the estimated total monthly rent?
- A Texas real estate investor analyzes a warehouse property: purchase price $800,000, NOI $60,000, annual debt service $42,000 (on a $600,000 loan). What is the equity dividend rate (cash-on-cash return)?
- A Texas apartment building with 24 units rents at $850/month per unit. The property has a 6% vacancy rate and a cap rate of 8.5%. What is the estimated property value?
- A Texas property sells for $580,000. The buyer finances $464,000 and pays 1% origination fee, $2,200 in title fees, $1,800 appraisal and inspection fees, and prepaid items of $3,600. What are the total estimated buyer's closing costs?
- A Texas seller needs to net $340,000 from the sale. After paying 6% commission and $5,200 in closing costs, what does the property need to sell for?
- A Texas commercial property has the following financials: Purchase price $950,000, loan $712,500 at 5.75% for 25 years (monthly payment $4,580), NOI $75,000. What is the overall capitalization rate (OAR)?
- A Texas homebuyer wants to maximize their purchase price given a $2,100 maximum monthly PITI payment. Using an estimated 30-year rate of 6.5%, property taxes of $350/month, and insurance of $150/month, what loan amount can they qualify for?
Property Ownership
126 questions- In Texas, the homestead exemption for ad valorem tax purposes allows a homeowner to:
- Which form of ownership does NOT include survivorship rights by default?
- A property owner wants to allow a neighbor to cross their land to access a public road. The appropriate legal instrument would be:
- The bundle of rights associated with real property ownership includes all of the following EXCEPT the right to:
- Which of the following is an example of an appurtenance that transfers with the sale of real property?
- Texas is a community property state. Property acquired by a spouse during marriage is generally classified as:
- In Texas, which of the following is classified as separate property?
- A Texas urban homestead is limited to:
- Two brothers purchase Texas land as joint tenants with right of survivorship. If one brother dies, the deceased brother's interest:
- Under Texas law, a life estate grants the life tenant the right to:
- Which type of deed in Texas provides the GREATEST protection to a buyer?
- Texas oil and gas mineral rights can be severed from the surface rights. When mineral rights are severed, the mineral rights owner:
- A condominium owner in Texas owns:
- Under Texas Property Code Chapter 209, homeowners associations (HOAs) governing single-family homes are required to:
- Texas Property Code Chapter 82 governs:
- Adverse possession in Texas requires continuous, open, notorious, hostile, and exclusive possession for a minimum of:
- A Texas deed must be acknowledged before a notary public primarily to:
- The doctrine of constructive notice in Texas means that a recorded deed:
- Texas uses a race-notice recording statute. Under this system, a subsequent bona fide purchaser for value who records first wins over a prior unrecorded conveyance, provided the subsequent purchaser:
- A mechanic's lien in Texas is filed by a contractor or supplier who:
- Texas escheat laws provide that property abandoned by its owner for a statutory period transfers to:
- A Texas landowner grants a neighbor an easement appurtenant for access across their land. Which of the following statements is TRUE?
- A Texas property is held in a revocable living trust. For real estate transfer purposes, the trust is a valid property owner. If the trustor dies, the property:
- Under Texas law, a condominium owner who is delinquent in HOA assessments may have their unit subjected to:
- A Texas property described as 'the NE ¼ of Section 12, Township 5 North, Range 3 West' is using which system of legal description?
- In Texas, which party typically pays the cost of the owner's title insurance policy?
- A survivorship agreement in Texas allows married spouses to:
- The Texas Transfer on Death Deed (TODD) allows a property owner to:
- Under Texas law, a prescriptive easement is established by:
- A Texas property described as 'Lot 5, Block 3, Sunny Acres Subdivision, as recorded in Volume 42, Page 18 of the Plat Records of Travis County' is using which type of legal description?
- A Texas property owner dies intestate (without a will) leaving a surviving spouse and two adult children. Under Texas intestacy law, the community property typically:
- In Texas, a homestead exemption for a person who is 65 or older provides:
- A Texas tenant in common (TIC) owns an undivided interest in a property. This means:
- A Texas couple divorces. They own a home with a $200,000 equity as community property. Under default Texas property division, each spouse is entitled to:
- Texas real estate can be held by a corporation or limited liability company (LLC). When real property is sold by an LLC, the deed must be signed by:
- A Texas property owner grants an easement in gross to a utility company for installing power lines. This easement:
- Under Texas law, a court action to physically divide co-owned real property among the owners is called:
- In Texas, the doctrine of 'after-acquired title' (estoppel by deed) means that:
- Texas uses which method for conveying real property title at death without a will?
- Under Texas Property Code § 5.064, a seller who uses an executory contract (contract for deed) for residential property must:
- A Texas deed that contains a defect (such as a misspelled name or incorrect legal description) may be corrected by filing a:
- Texas real property can be owned by one person (severalty), by multiple people (co-ownership), or by artificial entities. Which of the following is NOT a recognized form of co-ownership in Texas?
- A Texas property owner builds a fence 2 feet over their neighbor's property line and maintains it for 12 years. The neighbor then discovers the encroachment. A likely legal outcome is:
- The term 'riparian rights' in Texas law refers to:
- A Texas property with a 'fee simple determinable' title condition means:
- Under Texas law, which entity has the power to levy special assessments on properties to fund public infrastructure improvements?
- A Texas homeowner files for Chapter 7 bankruptcy. Their homestead property is generally:
- In Texas real estate, a 'covenant running with the land' must meet which requirement to be enforceable against future owners?
- A Texas property owner conveys land by warranty deed 'to John Smith and his heirs.' Under modern law, this language creates:
- A Texas property deed that contains the clause 'provided, however, that if the grantee fails to use this land for agricultural purposes, grantor shall have the right to re-enter and repossess' creates:
- In Texas, the doctrine of 'first in time, first in right' applies to:
- A Texas homeowner installs a new HVAC system. For the system to be considered real property (a fixture) that stays with the house when sold:
- In Texas, a property located within a Public Improvement District (PID) may be subject to:
- Texas real estate law recognizes 'economic waste' in the context of:
- A Texas owner installs solar panels on their home with a power purchase agreement (PPA). For real estate purposes, panels under a PPA are generally:
- Under Texas law, a Texas property deed that is not delivered to the grantee before the grantor's death:
- The Texas homestead exemption protects which type of property from forced sale by unsecured creditors?
- A Texas ranch is located in an area with known oil and gas activity. The buyer wants to ensure they are purchasing the mineral rights along with the surface. The buyer's agent should:
- A 'plat of survey' in Texas differs from a simple boundary survey in that it also:
- Under Texas Property Code § 5.014, a seller of certain types of Texas property must disclose if the property is located in a:
- Texas law allows a husband and wife to 'partition' their community property by agreement. After a valid partition, the property becomes:
- A Texas investor buys property at a tax sale when the prior owner failed to pay property taxes. The investor receives a:
- In Texas, the term 'cloud on title' refers to:
- A Texas property owner grants a 'license' to a neighbor to use a parking space. Unlike an easement, a license is:
- A Texas mineral lease (oil and gas lease) creates a:
- In Texas, a property owner sells the surface but reserves '50% of the minerals.' This reservation means:
- A Texas landowner who wants to preserve agricultural land for future generations while receiving tax benefits could use:
- Under Texas Property Code, a 'manufactured home' is treated differently from stick-built housing for title purposes. A manufactured home on a permanent foundation that is converted to real property requires:
- A Texas foreclosure sale purchaser who discovers a prior federal tax lien on the property should know that IRS tax liens have a federal right of redemption. This means the IRS can redeem the property within:
- A Texas property with an oil and gas lease has a 'royalty interest.' The royalty interest owner receives:
- Texas law recognizes 'surface damage' claims by landowners. When a Texas mineral owner's operations damage the surface, the surface owner may seek compensation under:
- A Texas property owner with an agricultural exemption (1-d-1) must maintain the exemption by:
- In Texas, a tenancy in common is presumed over joint tenancy because:
- A Texas property owner wants to leave their home to their two children equally through a will. The most appropriate estate planning tool that also avoids probate would be:
- Under Texas law, a 'reversionary interest' in a deed means:
- In Texas, a 'life estate' conveys property to a person for:
- Under Texas community property law, which of the following is considered separate property?
- In Texas, a joint tenancy requires all of the following unities EXCEPT:
- Under Texas law, a 'general warranty deed' provides the grantee with the broadest protection because the grantor warrants:
- Texas homestead law exempts a homestead from forced sale for most debts. Which of the following CAN force the sale of a Texas homestead?
- In Texas, 'tenancy in common' is the default form of co-ownership because:
- When a Texas property owner dies without a will (intestate), their property passes according to:
- Under Texas law, which type of deed provides NO warranty of title whatsoever?
- In Texas, a 'special warranty deed' warrants title only against claims:
- Texas law recognizes 'adverse possession' as a method of acquiring title to property. Under the most common Texas adverse possession statute, the possession must be:
- In Texas, an 'easement by necessity' is created when:
- In Texas, the doctrine of 'after-acquired title' (estoppel by deed) means that if someone grants title to property they do not own, and they later acquire title to that property:
- In Texas, a 'partition action' may be used when co-owners of a property:
- Texas Property Code Section 5.076 requires sellers of residential property to provide a written notice to buyers about the existence of water district or MUD (municipal utility district) assessments. This notice informs buyers about:
- Under the Texas Recording Acts, the 'notice-race' statute means that a subsequent purchaser prevails over a prior unrecorded deed if:
- In Texas, the 'right of first refusal' in a lease gives the tenant:
- In Texas, a 'survey exception' in a deed indicates that the parties have agreed:
- Under Texas law, a 'prescriptive easement' is created when a person:
- Under Texas law, a deed must contain all of the following elements to be valid EXCEPT:
- Texas Property Code Chapter 82 governs condominiums. Under this chapter, a condominium owner holds:
- Texas is a 'community property' state. When a married couple purchases a home using community funds, the home is:
- Under Texas law, an 'encumbrance' on real property includes all of the following EXCEPT:
- A Texas homeowner dedicates a portion of their property as a 'nature trail easement' to the city. This is an example of:
- Under Texas law, when property is condemned by the government through eminent domain, the landowner is entitled to:
- In Texas, a 'right-of-way' easement is most commonly associated with:
- In Texas, 'tenancy by the entirety' is:
- Under Texas law, 'riparian rights' apply to owners of property that:
- In Texas, a 'conservation easement' allows a landowner to:
- When property is owned by a corporation or LLC in Texas, the entity holds title in the:
- In Texas, a 'tenancy at will' exists when:
- In Texas, an 'express easement' is created by:
- Under Texas law, a 'writ of possession' in an eviction case allows:
- In Texas, a 'fee simple absolute' estate is the highest form of property ownership because:
- In Texas, a 'judgment lien' attaches to real property in the county where the judgment is abstracted and recorded. Homestead property is:
- Under Texas law, which document most reliably establishes a person's current ownership of real property?
- Under the Texas Estates Code, when a person dies intestate (without a will) leaving a surviving spouse and children who are all children of the surviving spouse, community property passes:
- Under Texas law, when a corporation is the grantor in a deed, the deed must be executed by:
- Texas Property Code Section 5.021 establishes requirements for deeds to be valid. A Texas deed to be effective as a conveyance must contain all of the following EXCEPT:
- A Texas property owner signs and delivers a deed to their brother as a gift. The deed is a valid transfer because Texas does NOT require:
- Under Texas Occupations Code, a person who claims ownership of minerals under a Texas property should be aware that:
- In Texas, a 'partition in kind' versus a 'partition by sale' in a co-ownership dispute refers to:
- Texas law recognizes 'prescriptive rights' for utility easements when utilities have been openly using a strip of land for:
- In Texas, when community property is sold and the proceeds are used to purchase a new property during marriage, the new property is:
- In Texas, a 'life tenant' cannot do which of the following without the remainderman's consent?
- In Texas, a 'trespass to try title' lawsuit is used to:
- In Texas, a property owner who grants a 'right of way' to a utility company is typically:
- In Texas, a 'dedication' of a street or road to the public means:
- Under Texas Property Code, which type of co-ownership automatically includes the right of survivorship without requiring specific language in the deed?
- Texas Property Code Chapter 5, Subchapter D, protects buyers in 'executory contracts' (contracts for deed, lease-purchase) by requiring sellers to provide:
- Under Texas Property Code, when property is conveyed through a deed, delivery and acceptance require:
- Under Texas law, the 'bundle of rights' concept describes real property ownership as including all of the following rights EXCEPT:
Agency
120 questions- In Texas, an 'intermediary' broker is one who:
- When a Texas broker acts as an intermediary, they are generally prohibited from:
- The IABS form in Texas must be provided:
- Under Texas law, a sales agent who acts WITHOUT a written buyer representation agreement is presumed to represent:
- A Texas licensee's fiduciary duties to their client include all of the following EXCEPT:
- Which of the following must a Texas seller's agent disclose to a buyer regarding the property?
- In Texas, the relationship between a real estate broker and their client is governed by the concept of:
- Under Texas law, the Information About Brokerage Services (IABS) notice must be provided:
- A Texas broker who represents both the buyer and seller in the same transaction with written consent from both parties is acting as a(n):
- When a Texas broker acts as an intermediary, they may NOT:
- A Texas buyer's representation agreement is BEST described as:
- Under Texas law, a sponsored sales agent owes fiduciary duties to:
- Which Texas TREC form is used to disclose agency relationships to consumers?
- Subagency in Texas real estate refers to:
- A Texas listing broker appoints one of their sales agents to represent the seller and another sales agent to represent the buyer in the same transaction. This is called:
- The duty of confidentiality in a Texas agency relationship requires an agent to:
- A Texas buyer's agent has a fiduciary duty of loyalty to their buyer-client. This duty means the agent must:
- Under TREC rules, a Texas broker is required to keep copies of all signed listing agreements for at least:
- A Texas real estate agent has a duty to disclose all known material facts about a property to prospective buyers. This duty exists:
- An agent who volunteers information about a buyer's motivation and budget to the seller without the buyer's consent has violated the duty of:
- A Texas real estate agent who fails to promptly present all written offers to their seller client is violating:
- A Texas broker who represents a seller has a duty to disclose to potential buyers that the property has a defective roof the broker knows about. This is an example of:
- A Texas buyer's agent who has actual knowledge that a listed property has foundation issues the seller has not disclosed is obligated to:
- Under Texas law, a broker who acts as an intermediary and appoints associates to work with the parties must:
- A Texas listing agent who learns their seller-client intends to not disclose a known foundation problem is obligated to:
- When a Texas real estate agent discovers that a material fact has changed after a listing agreement is signed (e.g., a neighbor's property is contaminated), the agent should:
- A Texas real estate agent working as a buyer's agent is approached by the listing agent about their buyer's motivation and maximum budget. The buyer's agent should:
- A Texas listing agreement is a bilateral contract. 'Bilateral' means:
- Texas law requires a buyer's representation agreement to specify the:
- In Texas, an agent who earns a commission while failing to disclose a material fact about the property may be required to:
- A Texas broker's listing expires. The seller then sells the property themselves within the protection period specified in the expired listing. The broker may be entitled to a commission if:
- In Texas, 'procuring cause' in a real estate transaction refers to:
- A Texas buyer's agent has an obligation to disclose to their buyer client that a competing offer exists on the property they are interested in. This is an example of the duty of:
- In Texas, a broker's authority to bind their client to a contract arises from:
- A Texas real estate agent who earns an undisclosed secret profit from a transaction is breaching the duty of:
- A Texas buyer's agent learns that the listing agent misrepresented the property's square footage. The buyer's agent is obligated to:
- The Texas broker-buyer relationship under a buyer representation agreement requires the buyer's agent to present ALL properties that meet the buyer's criteria, including:
- In Texas, 'ostensible agency' (or apparent authority) exists when:
- In Texas, the duty of 'obedience' as part of the fiduciary relationship requires an agent to:
- A Texas listing agreement can be terminated before the expiration date under which of the following circumstances?
- An agent in Texas who represents a buyer but receives a referral fee from the seller's contractor for recommending the contractor for post-closing work must:
- A Texas listing broker's agent shows a property to an unrepresented buyer. The agent should inform the buyer that:
- In Texas, the duty of 'reasonable care and diligence' in an agency relationship requires the agent to:
- When a Texas broker team operates within a brokerage, team members must make clear that they are part of the team and:
- When a Texas REALTOR® acts as a buyer's agent, they must present all offers to the seller for which of the following reasons?
- The Texas IABS (Information About Brokerage Services) notice must be provided in which scenario?
- A Texas seller's agent who learns that their seller is involved in an ongoing lawsuit affecting the property must:
- A Texas agent receives an offer to present to their seller client. The offer is significantly below market value but has no contingencies. The agent should:
- In Texas, an unlicensed assistant working in a real estate office may lawfully:
- A Texas REALTOR®'s fiduciary duty of 'full disclosure' requires disclosure of:
- A Texas agent who earns a commission discovers after closing that the seller fraudulently misrepresented the property. The agent:
- A Texas buyer's agent who also operates as a transaction coordinator for the seller's side is:
- When a Texas listing agent receives multiple offers on the same property, their duty to the seller requires them to:
- A Texas seller's agent learns that their seller is selling primarily due to a pending divorce and needs to sell quickly. This information is:
- A Texas buyer makes an offer on a home. Their buyer's agent advises them to offer 10% below asking price without substantive market analysis. The agent may be:
- Under Texas law, an agent who represents a buyer in purchasing their own listing (without setting up an intermediary relationship) would be:
- A Texas buyer hires an agent to find commercial investment property. The agency relationship they agree to is an exclusive buyer representation agreement. This means:
- A Texas listing agreement grants the broker 'exclusive right to sell.' This means if the seller's neighbor sees a For Sale sign and directly offers to buy the property:
- Texas real estate agency relationships can be terminated by all of the following EXCEPT:
- In Texas, an agent who represents a buyer in a purchase and also represents the tenant in a lease of the same property at different times has:
- A Texas buyer asks their agent to help them buy a home in a neighborhood the agent has never worked in. The agent's duty of competence requires them to:
- Under Texas law, when a broker represents both the buyer and the seller in the same transaction with written consent from both parties, this relationship is called:
- A Texas buyer's agent is showing property to a client when the client reveals they can pay up to $50,000 more than their offer price. This information is:
- In Texas, the Information About Brokerage Services (IABS) notice must be provided:
- Under Texas law, an agent's duty of loyalty means the agent must:
- A Texas real estate agent discovers a material defect in a property they are listing. They must:
- A Texas buyer's representative agreement creates an exclusive agency relationship. This means:
- If a Texas real estate agent receives an offer on a listed property while the seller is vacationing abroad and unreachable, the agent should:
- In Texas, a real estate broker who sponsors sales agents is responsible for:
- A Texas sales agent can only receive commission from:
- An 'open listing' agreement in Texas means the seller:
- Under a Texas exclusive right to sell listing, if the property is sold during the listing period by anyone—including the owner—the listing broker is entitled to:
- When a Texas agent acts as an intermediary and appoints an associated license holder to work with the buyer, that appointed associate may:
- A Texas listing agent who represents the seller has a duty to present all offers to their client. If the seller instructs the agent to only present offers above $300,000, the agent should:
- Under Texas law, which document most clearly establishes an exclusive buyer-agency relationship?
- A Texas real estate agent who assists a buyer find a property but has not signed a buyer representation agreement is acting as:
- A Texas seller's agent who advertises a property on social media must ensure the advertisement includes:
- A Texas agent who represents neither party in a transaction, merely facilitating without providing advice or opinions, is:
- When a Texas real estate agent 'discloses' their agency relationship, they are communicating:
- A Texas seller's agent learns the seller is in financial distress and must sell quickly. This information:
- In Texas, a 'designated agent' differs from an intermediary in that a designated agent:
- A Texas license holder discovers their client has made fraudulent representations to the other party in a real estate transaction. The agent should:
- A buyer's agent in Texas shows a property their own brokerage has listed. Without a separate buyer representation agreement, the agent typically owes duties to:
- A Texas real estate agent's duty of 'accounting' requires the agent to:
- In Texas, the concept of 'apparent authority' means a principal may be bound by an agent's unauthorized act when:
- Under Texas law, a license holder who discovers during a transaction that property they are selling is involved in an undisclosed lawsuit should:
- A Texas listing agent's fiduciary duties to the seller include all of the following EXCEPT:
- When a Texas sales agent's sponsoring broker dies or loses their license, the sales agent's license automatically becomes:
- In Texas, a real estate agent who has a personal interest in a property they are listing must:
- A Texas real estate broker's duty of 'reasonable care and diligence' to their client includes:
- Under Texas law, a 'seller's agent' who also seeks to represent the buyer without proper intermediary disclosure and consent would be acting as a:
- Under Texas law, the duty of 'obedience' an agent owes their client means the agent must:
- Under Texas law, a real estate agent who represents the buyer in a new construction purchase from a builder should advise their buyer client that:
- In a Texas real estate transaction, the doctrine of 'ratification' of an unauthorized agent act occurs when:
- A Texas real estate agent who has been representing a buyer learns that the buyer is planning to commit mortgage fraud by misrepresenting their income to obtain a loan. The agent must:
- In Texas, a 'net listing' is:
- A Texas commercial real estate agent exclusively represents a tenant in negotiating a new office lease. This representation is called:
- In Texas, when a listing agent presents a buyer's offer to the seller, the agent should present it:
- A Texas listing agent who receives compensation from the buyer's agent's brokerage (cooperative commission) owes their primary fiduciary duties to:
- In Texas, the 'Information About Brokerage Services' (IABS) notice informs consumers about which types of agency relationships?
- When a Texas real estate agent is working as a buyer's agent and finds a property that is not listed on the MLS, they should:
- When a Texas buyer's agent submits an offer on behalf of their client, the agent is acting as:
- A Texas real estate agent who helps a buyer write an offer significantly below the listing price is:
- A Texas agent is working with a buyer who wants to make a lowball offer on a listed property. The seller's agent says the seller would never accept such a low offer. The buyer's agent should:
- A Texas listing agent who receives a buyer's offer for 90% of the list price while the property is only a week on the market should:
- A Texas buyer instructs their agent that they are willing to pay up to $480,000 for a property listed at $450,000. The agent should:
- A Texas broker enters into a 'franchise agreement' with a national real estate brand. In this arrangement:
- Under Texas law, a 'gratuitous agent' is someone who:
- A Texas buyer's agent who finds out their buyer client has accepted financing for a property other than the one in their current contract is obligated to:
- In Texas, a real estate agent's obligation to disclose 'all material facts' includes which of the following known conditions?
- When a Texas broker receives an earnest money deposit but the buyer's and seller's contracts specify different escrow agents, the broker should:
- A Texas real estate agent who refers a client to a home inspector friend and receives a referral fee from the inspector must:
- When a Texas buyer's agent discovers that the home they are helping their client purchase has a foundation problem not disclosed by the seller, the agent should:
- A Texas listing agent who wants to withdraw from representation of the seller before the listing expires may do so only:
- A Texas real estate agent who is also a licensed mortgage originator helping their buyer client with both the real estate transaction and the financing must:
- In Texas, when a real estate agent acts as an 'intermediary' and does NOT appoint associated license holders to work with each party, the intermediary broker is limited to performing what actions?
- A Texas real estate sales agent who receives an offer from a buyer wants to present it to the seller as soon as possible. The agent's primary obligation is to present the offer to:
- Under Texas law, a real estate agent who also holds a property management license from TREC can represent:
- When a Texas real estate agent terminates their agency relationship with a client, they should do all of the following EXCEPT:
- In concluding a Texas real estate transaction as a buyer's agent, the agent should ensure all of the following are completed EXCEPT:
Property Management
119 questions- Under Texas Property Code Chapter 92, a residential landlord must return a security deposit or provide an itemized deduction statement within how many days after the tenant vacates?
- In Texas, a property manager who collects rents and negotiates leases on behalf of an owner must have a:
- A Texas residential lease that does not specify a term is considered a:
- Under Texas law, a landlord's failure to disclose a known material defect in a rental property may expose the landlord to liability under the:
- The Uniform Residential Landlord and Tenant Act (URLTA) has been adopted in some states. Texas instead relies primarily on:
- A Texas property manager is responsible for the property's habitability. The implied warranty of habitability requires that rental units:
- When managing a commercial property in Dallas or Houston, a Texas property manager's primary responsibility regarding CAM charges is to:
- Under Texas Property Code § 92.056, a residential tenant has the right to repair and deduct if:
- A Texas landlord who wrongfully retains a security deposit without providing proper documentation may be liable for:
- A Texas commercial lease that requires the tenant to pay a base rent plus a percentage of their gross sales is called a:
- In a triple net (NNN) lease on a Texas commercial property, the tenant is responsible for:
- Texas Property Code Chapter 92 gives a residential tenant the right to terminate a lease early without penalty if:
- A Texas commercial property manager prepares a monthly financial report for the owner. This report should include:
- Under Texas law, a property manager who co-mingles client funds with their own personal funds is:
- A Texas apartment property management company is hired by an owner. The management agreement should specify:
- Texas Property Code § 92.153 requires landlords of multi-unit dwellings to provide re-keying of locks:
- In Texas, a written notice of lease termination for a month-to-month residential tenancy typically requires:
- A Texas property manager discovers the building's HVAC system needs emergency repair costing $4,500. The management agreement authorizes emergency expenditures up to $3,000 without owner approval. The manager should:
- Under Texas Property Code, a landlord who retaliates against a tenant for reporting housing code violations may be liable for:
- A Texas commercial tenant's lease expires and they continue to occupy the property and pay rent that the landlord accepts. This creates a:
- Under Texas Property Code § 92.102, the maximum security deposit a Texas residential landlord can charge is:
- A Texas property manager who is also a licensed broker and manages funds for multiple owners must maintain:
- A Texas landlord seeking to evict a tenant for non-payment of rent must first:
- Under Texas Property Code § 92.004, a landlord may raise the rent during a lease term:
- In Texas, a residential property manager's most important duty when a unit becomes vacant is:
- Texas law requires smoke detectors in residential rental units. Under Property Code § 92.252, the landlord must:
- An Austin or Dallas property manager handling commercial leases should understand that CAM reconciliation involves:
- A Texas property management company receives a notice from a tenant claiming habitability violations. The FIRST step the property manager should take is:
- A Texas owner of a large commercial office building in Dallas hires a property management firm. The management firm's fiduciary duties run primarily to:
- In Texas, a residential tenant who has been served with an eviction notice (forcible detainer) and loses in justice court may appeal to:
- Under Texas Property Code § 92.061, a tenant may not waive their rights under the warranty of habitability because:
- Under Texas Property Code § 92.107, when a tenant vacates, the landlord should note the condition of the property by:
- A Texas property manager is approached by a prospective tenant who requests a Section 8 Housing Choice Voucher be accepted. In Texas:
- A Texas property manager who also sells real estate must be aware that:
- A Texas commercial property manager responsible for a Houston office tower should have expertise in:
- In Texas, a property management agreement (PMA) should specify which of the following to protect the property manager?
- A Texas residential property manager notices a potential fair housing violation in one of the owner's rental practices. The manager should:
- A Texas property manager uses the accrual accounting method. Under this method:
- Texas Property Code § 92.201 requires landlords of apartment buildings to disclose to tenants:
- A Texas property manager is negotiating a new commercial lease. The tenant requests a 'right of first refusal' clause. This means:
- In Texas commercial property management, a 'gross-up' provision in a NNN lease means:
- A Texas multifamily property manager notices a fair housing complaint has been filed against the property. The FIRST priority is to:
- In Texas, a landlord who accepts rent from a holdover tenant after the lease expires, without a new written lease, likely creates a:
- A Texas residential property manager's rent collection policy should include:
- Under Texas Property Code § 92.157, residential landlords are required to install which security device in all residential rental properties?
- In Texas, a property manager who fails to place a tenant's security deposit in a separate account from operating funds is:
- A Texas property manager for a Dallas commercial portfolio should understand that commercial leases in Texas typically are:
- Under Texas Property Code § 91.006, a landlord must make reasonable efforts to re-rent a unit after a tenant breaks the lease. This duty to mitigate damages means:
- A Texas commercial tenant has a 'right of first offer' (ROFO) in their lease. This means:
- In Texas, a property manager who discovers a potential housing code violation at a managed property should:
- A Texas industrial property manager must understand that industrial leases often contain a 'triple net' structure where the tenant pays:
- Under Texas law, a residential property manager who receives a repair request from a tenant for a condition affecting habitability must respond:
- The Texas Association of REALTORS® (TAR) provides lease forms that are widely used by Texas property managers. These forms differ from TREC promulgated forms in that TAR forms are:
- A Texas property manager who manages Section 8 Housing Choice Voucher tenants must comply with HUD regulations that include:
- In Texas, a residential tenant who is a victim of family violence may terminate their lease early without penalty under:
- A Texas property manager who receives a Fair Housing complaint on behalf of a managed property should document all relevant information because:
- A Texas property manager who manages condominium HOA funds in a portfolio of managed associations must:
- A Texas property manager of a large Houston apartment complex is implementing a preventive maintenance program. The primary benefit of preventive maintenance is:
- Under Texas Property Code § 92.001, the term 'landlord' includes:
- A Dallas commercial property manager who manages a portfolio of office buildings should prepare which report for owners as part of their quarterly reporting?
- In Texas, a written management agreement for a commercial property should contain a provision for:
- A Texas residential property manager who manages a condominium building must comply with:
- A Texas property manager responsible for a large residential community in San Antonio must follow the Texas HOA law under Property Code Chapter 209, which requires the HOA to:
- A Texas commercial property manager who manages a retail center must understand the concept of 'anchor tenants' because:
- Under Texas law, a tenant who is deployed on active military duty may terminate their residential lease under the:
- In Texas, a property manager who self-contracts repair work for a managed property is:
- A Texas property management company managing a luxury apartment complex in Austin should implement tenant screening practices that are:
- Under Texas Property Code, before a landlord may evict a tenant for non-payment of rent, the landlord must first provide:
- A Texas property manager collects security deposits from tenants. Under Texas Property Code Section 92.103, the landlord must return the security deposit within how many days after the tenant surrenders the premises?
- A tenant in Texas damages an apartment wall by hanging many pictures, leaving dozens of large holes. The landlord charges the tenant for repairs beyond normal wear and tear. This is:
- A Texas property manager collects rent and security deposits on behalf of the owner. These funds must be kept:
- Under Texas Property Code Section 92.019, a landlord who charges a late fee for rent must:
- A Texas landlord wishes to enter a tenant's apartment to make necessary repairs. Under Texas Property Code, the landlord:
- A Texas apartment property manager is approached by a tenant requesting to sublet their unit while they travel abroad for 6 months. The property manager should:
- A property manager's agreement with an owner is a type of agency relationship. The property manager owes the owner all of the following EXCEPT:
- Under the Americans with Disabilities Act (ADA), commercial property owners and managers must ensure that:
- A Texas landlord who fails to repair a condition that materially affects the tenant's health or safety, after receiving written notice and a reasonable time to repair, may face the tenant's remedy of:
- A Texas commercial lease tenant's 'triple net' (NNN) lease means the tenant pays:
- A commercial property management company wants to implement a preventive maintenance program. The primary benefit of preventive maintenance is:
- When a Texas commercial tenant's lease expires and they remain in possession without a new agreement, this creates a:
- A Texas property manager is responsible for maintaining common areas of a multi-tenant office building. If a tenant slips and falls in an improperly maintained hallway, the property owner and manager may face liability under:
- A Texas property manager acting as agent for an owner in a lease dispute should:
- A Texas property manager wants to screen prospective tenants. Under the Fair Housing Act and Texas law, the manager may use which criteria?
- A Texas apartment complex manager discovers a tenant has been operating a business out of their unit in violation of the lease. The appropriate course of action is:
- A Texas property manager is hired to manage a single-family rental home. The management fee is typically:
- Under Texas Property Code, a residential landlord's failure to return a security deposit within the required time and without an itemized statement may result in the landlord:
- A Texas property management company that manages 50 apartment units must comply with federal Fair Housing Act requirements and state law. If a prospective tenant files a complaint alleging housing discrimination, TWHC (Texas Workforce Commission - Civil Rights Division) processes complaints under:
- A Texas property manager receives rent from a tenant in cash. The proper procedure is to:
- In Texas, an 'estoppel certificate' is used in commercial property management to:
- A Texas property management company is managing an older building that needs extensive capital improvements. The cost of capital improvements (new roof, HVAC system) is typically handled differently from routine maintenance because:
- When a Texas landlord properly terminates a lease and the tenant refuses to vacate, the landlord's legal remedy is to file:
- Under a Texas property management agreement, the manager typically has authority to:
- In Texas, a 'ground lease' typically involves:
- A Texas residential property manager wants to increase rents for renewing tenants. The appropriate time to give notice of a rent increase is:
- A Texas commercial property manager signs a lease with a new tenant. The lease contains a 'personal guarantee' clause. This means:
- A Texas tenant sub-lets their apartment to another person without the landlord's consent, violating the lease. The landlord's remedy may include:
- When managing a Texas commercial building, the property manager is responsible for ensuring the building complies with:
- A Texas property manager discovers that a rental home they manage has an unpermitted addition built by a previous owner. The manager's obligations include:
- A Texas property manager who manages a commercial strip center must maintain records related to all of the following EXCEPT:
- A Texas property manager for a residential apartment complex wants to implement a 'no criminal background' policy. Under fair housing law, such a blanket policy:
- When a tenant in a Texas commercial lease requests 'tenant improvements' (TIs), the lease typically addresses:
- A Texas property manager is asked to show a unit to a prospective tenant on Christmas Day. The manager:
- In Texas, a commercial property management company is responsible for ensuring that a multi-tenant office building complies with OSHA standards for:
- A Texas commercial property manager receives a 'letter of intent' (LOI) from a prospective tenant. The LOI is typically:
- A Texas commercial tenant is a 'percentage tenant' under a lease where rent varies with sales. The landlord typically has the right to:
- A Texas property manager manages multiple properties for different owners. They must maintain:
- A Texas property manager receives a request from a tenant to assign their lease to a new tenant. The property manager should:
- A Texas property manager handling commercial properties should understand 'common area maintenance' (CAM) charges, which are:
- When a Texas residential tenant is the victim of domestic violence, the tenant may have rights under Texas Property Code Section 92.016 to:
- A Texas property manager for a medical office building must be aware that certain medical waste generated by tenants is subject to special disposal requirements under:
- A Texas property manager managing a retail center where tenants are required to be open during mall hours and maintain a specific image is enforcing provisions of a:
- In Texas, a property manager handling a 'Section 8' (Housing Choice Voucher) unit must comply with HUD requirements including:
- A Texas commercial property manager negotiating a lease renewal with an existing tenant should review all of the following EXCEPT:
- When managing an office building, a Texas property manager must ensure that the building's 'base year stop' in a gross lease is accurately tracked because it determines:
- A Texas property manager discovers that their property management company's license has lapsed. They must:
- A Texas property manager wants to ensure proper accounting for a multi-property portfolio. Best practices include reconciling trust accounts:
- A Texas property manager managing industrial properties must be aware that tenants may need 'use permits' or special approvals for activities involving:
- A Texas property manager who wants to terminate a management agreement before it expires should:
- A Texas property manager who manages a condominium complex is likely working for:
Land Use & Zoning
116 questions- In Texas, the power of local governments to regulate land use through zoning is derived from the state's:
- Houston, Texas is unique among major U.S. cities because it:
- A nonconforming use in a Texas zoned community refers to:
- A Texas property owner requests permission to build a structure that does not conform to setback requirements. The owner would need to apply for a:
- Eminent domain allows the government to take private property for public use. In Texas, the property owner is entitled to:
- Texas property that is taken for a public purpose and the owner is not fairly compensated may be subject to a claim of:
- A deed restriction in a Texas residential subdivision that prohibits commercial use is enforceable by:
- The Texas Subdivision Act requires developers to file a plat with the county for subdivisions in unincorporated areas. The primary purpose of the plat is to:
- A Texas city's comprehensive plan (master plan) differs from a zoning ordinance in that the comprehensive plan:
- In Texas, a special use permit (or conditional use permit) allows:
- The Takings Clause of the U.S. Constitution requires that when government regulation goes too far and deprives a landowner of all economically beneficial use, the landowner may be entitled to:
- A Texas developer applies for a subdivision plat approval. Local government review typically includes checking for:
- Texas law generally allows property owners in unincorporated county areas to:
- Texas Extraterritorial Jurisdiction (ETJ) allows a city to extend planning and subdivision regulations to unincorporated areas within:
- A Texas property owner receives notice that their land is being condemned for a highway expansion. The process of negotiating or litigating the compensation amount after the government's initial offer is called:
- Texas Property Code Chapter 212 governs city and county authority over subdivision plat approval. A municipality may withhold plat approval if:
- A Texas developer in the ETJ (Extraterritorial Jurisdiction) of a city must comply with the city's:
- A Texas property owner who is denied a variance by the Board of Adjustment may appeal the decision to:
- A Texas mixed-use development in Austin or Dallas might include a planned unit development (PUD). A PUD allows:
- The Texas Water Development Board (TWDB) plays a role in land use by:
- Under Texas law, deed restrictions (restrictive covenants) in a residential subdivision expire after 25 years unless:
- In Texas, a property owner in an incorporated city generally needs a building permit for:
- The Texas Solid Waste Disposal Act (managed by TCEQ) affects real estate development by:
- A Texas 'mixed-use' development designation typically allows:
- In Texas, a conservation easement held by a land trust allows a property owner to:
- Texas cities use tax increment financing (TIF) districts (also called Tax Increment Reinvestment Zones or TIRZ) to:
- In Texas, a developer who wishes to build a residential subdivision in an unincorporated county area outside of a city's ETJ must comply with:
- A Texas property owner who believes their property has been incorrectly zoned in a way that deprives them of reasonable economic use may file a:
- Texas law allows cities to establish 'historic districts.' Properties in historic districts may be subject to:
- A Texas 'cluster development' or 'open space' subdivision design allows developers to:
- A Texas city that wants to annex a nearby unincorporated area must follow procedures under Texas Local Government Code Chapter 43. Recent changes to Texas annexation law (2019) require:
- In Texas, a 'right to farm' provision protects agricultural operations from:
- A Texas city creates a 'tax abatement' agreement with a commercial developer. This means the city:
- A Texas property owner whose land has been downzoned (rezoned to a less intensive use) may argue they are entitled to compensation under:
- An 'impact fee' charged by a Texas city to new development is used to:
- A Texas municipality requires a developer to dedicate park land (or pay a fee in lieu) as part of subdivision approval. This requirement is an exercise of:
- A Texas developer builds in a location that has both private deed restrictions and city zoning. When the restrictions conflict, the more restrictive rule:
- In Texas, the term 'plat' refers to:
- A Texas 'Specific Use Permit' (SUP) for a property allows:
- Under Texas law, property owners in a Planned Unit Development (PUD) may have their rights governed by:
- Texas law allows cities to create Municipal Management Districts (MMDs) in commercial areas to:
- A Texas city's 'form-based code' is an alternative to traditional zoning that emphasizes:
- In Texas, a developer applying for a Planned Development zoning district typically must submit a:
- Texas Property Code Chapter 201 (Restrictive Covenants) provides that certain deed restrictions in urban areas may be:
- The Texas Open Records Act allows citizens to access government records. In real estate, this is useful for:
- A Texas developer proposes a subdivision of agricultural land near San Antonio. The Environmental Impact Statement (EIS) may be required if the project:
- Transferable Development Rights (TDR) programs in Texas allow:
- The Americans with Disabilities Act (ADA) affects commercial real estate in Texas by requiring:
- A Texas school district may acquire private property through eminent domain for a new school. This acquisition must include:
- Texas Chapter 245 (vested rights) protects developers who have commenced development from changes in land use regulations by:
- In Texas, a 'Development Agreement' between a city and a developer may include:
- A Texas county commissioner's court has authority over:
- Texas cities regulate 'short-term rentals' (Airbnb, VRBO) through:
- A Texas property located in a Military Influence Zone (near a military installation) must include which disclosure to buyers?
- A Texas city uses 'incentive zoning' to encourage developers to include affordable housing units. Under incentive zoning, a developer who includes affordable units might receive:
- In Texas, a 'reinvestment zone' (tax increment financing zone/TIRZ) is created by a city to:
- Texas state law limits how much a municipality can charge in impact fees. These fees must be based on:
- Texas property owners who wish to appeal a planning commission decision to deny a variance or special permit typically appeal to:
- A Texas landowner objects to a proposed wind farm that will border their property. Their legal options include:
- In Texas, a 'stealth' cell tower disguised as a tree, flagpole, or water tower is typically permitted under:
- A Texas developer proposes an 'accessory dwelling unit' (ADU) on a single-family residential lot. ADUs are permitted:
- Under Texas law, a city's authority to annex land for 'strategic partnership agreements' (SPA) allows cities to:
- A Texas property in a 'historic landmark' designation may receive property tax benefits through:
- In Texas, a 'deed-restricted community' that has no HOA but has deed restrictions may enforce those restrictions through:
- A Texas municipality enacts an ordinance requiring all new residential construction to have a minimum lot size of 10,000 square feet. A landowner with a 6,000 square foot lot that was legally built upon before the ordinance seeks to add a room. This is an example of:
- Texas is unique among major states because most of its cities, except Houston, have zoning but Houston famously operates without traditional Euclidean zoning. Houston instead regulates development primarily through:
- A Texas developer wants to build a planned unit development (PUD) that mixes residential and commercial uses. To do so in a city with traditional Euclidean zoning, the developer would typically need:
- In Texas, a 'plat' is a document that:
- Texas Senate Bill 2 (2019) and subsequent legislation addressed property tax reform by:
- Texas law governing Property Owners Associations (POAs) for planned residential developments is found primarily in:
- An 'easement appurtenant' differs from an 'easement in gross' in that:
- In Texas, a developer who wants to create a subdivision and sell lots must comply with the Texas Subdivision Platting Act, which requires:
- Texas law requires that HOAs provide homeowners with written notice and an opportunity to be heard before:
- Under Texas law, a municipality may annex territory within its extraterritorial jurisdiction (ETJ). Recent Texas legislation has made involuntary annexation:
- In Texas, 'deed restrictions' in a residential subdivision are:
- Texas has adopted the 'Dillon's Rule' in some contexts and 'Home Rule' in others. A Texas Home Rule city (over 5,000 population) has:
- A 'buffer zone' in land use planning refers to:
- A 'conditional use permit' (CUP) or 'special use permit' (SUP) in Texas zoning allows:
- In Texas, a 'residential subdivision' deed restriction that prohibits commercial use of lots is:
- An 'exaction' in Texas development law refers to:
- In Texas, 'impact fees' charged to new development are governed by:
- Texas law provides for 'reinvestment zones' and 'tax increment financing' (TIF) primarily to:
- A Texas municipality uses an 'overlay district' in zoning to:
- Texas law allows a landowner whose property is subject to a 'taking' by the government to seek compensation through which process?
- Texas Senate Bill 2 (2021, different from the 2019 version) and other legislation restricted HOA powers in areas including:
- Texas Local Government Code requires municipalities to allow property owners to construct 'accessory dwelling units' (ADUs) in residential zones under certain conditions. ADUs are also called:
- Texas allows 'agricultural exemptions' for property tax purposes. For a property to qualify for the agricultural use (1-d-1) exemption:
- Texas law limits a city's extraterritorial jurisdiction (ETJ) to a radius based on the city's population. A city with a population between 25,000 and 49,999 has an ETJ of:
- Texas Property Code Chapter 202 limits the authority of residential property owners associations to restrict the display of which items?
- In Texas, a 'development agreement' between a municipality and a developer can:
- Texas law prohibits discrimination in housing based on the Texas Fair Housing Act. For enforcement purposes, this law is administered by:
- Texas allows property owners in certain areas to seek 'historic designation' for their property. A benefit of historic designation may include:
- Texas Senate Bill 2 (2023) addressed housing by requiring cities with populations over 10,000 to:
- In Texas, 'transit-oriented development' (TOD) near light rail or bus rapid transit stations typically features:
- Texas Property Code Chapter 211 grants municipalities the authority to regulate the use of land and buildings. Which of the following is NOT a standard municipal zoning authority?
- Texas law allows 'consent for annexation' as a requirement for most involuntary annexations. An area being considered for annexation may request a service agreement defining:
- Texas cities regulate 'short-term rentals' (STRs) like Airbnb and VRBO properties primarily through:
- In Texas, the 'Agricultural Land Conservation Easement Program' administered by the Texas Parks and Wildlife Department provides funding to:
- A Texas city's 'form-based code' (FBC) regulates development primarily based on:
- A Texas property owner whose land is subject to an unused easement for a railroad right-of-way that was abandoned decades ago may be able to reclaim the land through:
- Texas municipalities can create 'Public Improvement Districts' (PIDs) to finance improvements in specific areas. The costs are typically recovered through:
- In Texas, 'manufactured housing' (HUD-code homes) placed on a permanent foundation and titled as real property are subject to:
- Texas law provides that cities in the ETJ of a municipality must comply with subdivision platting requirements. However, property outside any ETJ (in unincorporated areas) is typically regulated by:
- Texas law allows counties to establish 'fire codes' in unincorporated areas. This is relevant for real estate because:
- Texas law allows homeowners in residential subdivisions to use 'mandatory arbitration' to resolve deed restriction disputes. This provides:
- Texas's 'stewardship easement' program allows landowners to:
- In Texas, 'eminent domain' reform (House Bill 21, 2011) required government entities to:
- A Texas city's 'comprehensive plan' (also called a master plan) serves as:
- Texas municipalities that adopt 'inclusionary zoning' ordinances (requiring affordable housing units in new developments) face restrictions because:
- In Texas, 'natural area preservation' zones near rivers and creeks serve which function in land use planning?
- In Texas, a 'planned development' (PD) zoning designation differs from standard zoning because it allows:
- In Texas, a 'private nuisance' claim allows a property owner to seek damages or injunctive relief when:
- Texas municipalities can regulate 'signs' (billboards, commercial signs, real estate for-sale signs) through sign ordinances. The free speech implications of these ordinances were addressed by the U.S. Supreme Court in:
- Texas Property Code Chapter 209 requires residential HOAs to provide homeowners with advance notice before taking enforcement action. The required notice must include:
- Texas's 'property rights' protection laws include the 'Regulatory Takings' statute (Government Code Chapter 2007), which requires:
- In Texas, a 'neighborhood conservation district' (NCD) is a planning tool used by some Texas cities to:
Property Valuation
115 questions- In Texas, who is authorized to prepare a formal appraisal for mortgage lending purposes?
- The principle of substitution states that:
- Accrued depreciation in the cost approach refers to:
- A property recently sold for $350,000. The buyer paid $5,000 above appraised value due to a competitive bidding situation. For comparable sales purposes, the appraiser would most likely:
- The income capitalization approach to value is MOST appropriate for appraising:
- If a commercial property has a net operating income (NOI) of $90,000 and comparable properties are selling at a 6% capitalization rate, the estimated value is:
- In the sales comparison approach, a comparable sale has a garage valued at $8,000 that the subject property lacks. The appraiser should:
- Functional obsolescence in a property refers to:
- A Texas appraiser is completing an appraisal and uses three comparable sales. After adjustments, the comparables indicate values of $310,000, $315,000, and $308,000. The appraiser reconciles these to $312,000. This process is called:
- In Texas, the ad valorem property tax is based on:
- Gross Rent Multiplier (GRM) is calculated as:
- External obsolescence affecting a Texas property is BEST described as:
- A Texas appraiser uses the cost approach to value a newly constructed commercial building. The land is valued at $150,000 and the building replacement cost is $800,000 with no depreciation (new). What is the estimated value?
- The most reliable indicator of market value for a Texas residential property is:
- When a Texas appraiser makes a positive adjustment to a comparable sale, it means:
- Paired sales analysis is an appraisal technique used to:
- Texas ad valorem tax protests must be filed with the county Appraisal Review Board (ARB) by:
- An appraiser valuing a Texas property uses three approaches and reconciles to a final value. The cost approach gives $310,000, the sales comparison approach gives $295,000, and the income approach gives $285,000 (it's a home that is sometimes rented). The appraiser should give the MOST weight to:
- A Texas appraiser determines that a property's highest and best use is commercial rather than its current residential use. For appraisal purposes, the appraiser should:
- A Texas property's effective age is 10 years but its actual (chronological) age is 20 years. This difference indicates:
- In Texas, the income approach formula is:
- Under Texas law, a property owner who disagrees with their county appraisal district's value may protest. After the ARB hearing, if still unsatisfied, the owner can appeal to:
- An appraiser uses three approaches to value a Texas mixed-use property with residential and retail space. The MOST appropriate approach to emphasize is:
- The term 'as-is' value in a Texas appraisal means:
- In Texas, homestead exemptions reduce the taxable value of a primary residence. The standard homestead exemption for school district taxes (mandatory state minimum) is:
- The economic principle of conformity in real estate valuation states that:
- Under Texas Property Tax Code, agricultural land that qualifies for 'ag use' valuation is taxed based on:
- A Texas appraiser completes a desk review of an appraisal report. A desk review involves:
- A 'drive-by' or exterior-only appraisal for a Texas property uses FNMA Form:
- In Texas, the excess land technique in appraising a property means:
- In the Texas real estate market, a seller's market is characterized by:
- In the Texas Austin/San Antonio market, rapid appreciation creates challenges for appraisers primarily because:
- The Texas Property Tax Code § 23.01 states that all real property subject to taxation shall be appraised at its:
- An appraiser in Houston performing an appraisal on a property located in a rapidly gentrifying neighborhood should give the most weight to:
- A Texas property's assessed value for tax purposes ($380,000) differs from the appraised market value ($450,000). For a real estate sale, the relevant value is:
- An appraiser using the sales comparison approach must make adjustments for differences between the subject and comparable properties. The most reliable adjustment amount comes from:
- A Texas single-family home appraiser uses the following sales. After adjustments, which comparable would they give the most weight to?
- Texas appraisers must comply with USPAP (Uniform Standards of Professional Appraisal Practice). USPAP Standard 1 addresses:
- The replacement cost approach to value is MOST useful for which Texas property type?
- A Texas residential appraiser notes that the subject property is the largest home on the block. The principle of REGRESSION suggests this property:
- A Texas appraiser determines a capitalization rate using market extraction. This process involves:
- In Texas property tax, a 'protest' filed with the Appraisal Review Board (ARB) allows a property owner to challenge:
- An appraiser conducting a Texas appraisal must be objective and independent. When the lender pressures the appraiser to hit a predetermined value, the appraiser should:
- An appraiser conducting a Texas appraisal review finds that the original appraisal failed to consider a contaminated neighboring property. This oversight is:
- Texas mixed-use properties present appraisal challenges because:
- An appraiser in Austin, Texas values a recently renovated historic bungalow in a gentrifying neighborhood. The key challenge is:
- A Texas property is appraised under USPAP. USPAP Competency Rule requires that an appraiser:
- In Texas, the relationship between cap rates and property values is:
- An appraiser in Texas values a property 'as proposed' based on architectural plans. This type of appraisal is known as a(n):
- In the income approach, stabilized NOI means:
- A Texas appraiser performing an appraisal on a Dallas single-family home uses an automated valuation model (AVM) as supporting data. AVMs are:
- In Texas, the assessed value for property tax purposes can be LOWER than market value because:
- Texas real estate appraisers are licensed by:
- A Texas appraiser values a property and determines that the highest and best use differs from the current use. This could result in:
- The 'Band of Investment' method in Texas appraisal is used to:
- A Texas appraiser values a large tract of land that will be developed as a residential subdivision. The appropriate method is:
- In Texas, 'economic life' of an improvement refers to:
- A Texas property has both a large garage and a pool. An appraiser values these separately. Which term applies to each feature's value contribution?
- In Texas, properties sold under duress (foreclosure, estate sale, divorce) are generally:
- The 'land-to-improvement ratio' in Texas property valuation helps appraisers:
- A Texas appraisal 'scope of work' determination is made:
- A Texas appraiser performs a 'retrospective' appraisal. This means the appraisal:
- Texas properties with active oil and gas production may be valued using a:
- An appraiser using the income approach to value a commercial property calculates net operating income (NOI) by:
- When appraising a single-family home, the sales comparison approach requires adjustments when comparable sales differ from the subject property. A positive adjustment means:
- The principle of substitution states that a buyer will pay no more for a property than:
- The income capitalization approach is most appropriate for valuing:
- Functional obsolescence in real property refers to a loss in value caused by:
- External obsolescence (economic obsolescence) is caused by factors:
- In the cost approach to value, the appraiser estimates the value of the land separately because:
- When a property's value is affected by 'assemblage,' this refers to:
- In Texas ad valorem property taxation, 'ad valorem' means:
- The effective age of a building is:
- When a USPAP-compliant appraisal is required for a federally related transaction in Texas, the appraiser must:
- When comparing properties, an appraiser notes that a comparable home sold 12 months ago. In a market experiencing 6% annual appreciation, the appraiser should make a:
- Reproduction cost new and replacement cost new are two methods used in the cost approach. The difference is that:
- In Texas, county appraisal district values are subject to review through the:
- In Texas, the Texas Property Tax Code requires appraisal districts to appraise property at:
- A property appraiser must reconcile value indications from multiple approaches. The weight given to each approach should be based on:
- The principle of 'contribution' in real estate appraisal means:
- Under USPAP (Uniform Standards of Professional Appraisal Practice), an appraiser's 'scope of work' must be:
- When appraising a historic home in Texas, an appraiser may need to adjust comparables for 'architectural appeal' or 'historical significance' because:
- A Texas CAD (county appraisal district) determines market value using which valuation methods?
- When a property has a 'value in use' significantly different from its 'market value,' this commonly occurs with:
- A Texas appraiser determines that a comparable sale was made under duress (e.g., foreclosure). This sale should typically:
- Under USPAP, an 'appraisal review' is different from an 'appraisal' in that:
- In Texas, a 'cap rate compression' refers to which market condition?
- A Texas appraisal that is ordered for the purpose of supporting a foreclosure sale must comply with:
- When appraising a property for divorce proceedings or estate purposes in Texas, the appraiser's 'hypothetical condition' or 'extraordinary assumption' must be:
- In Texas ad valorem taxation, a property owner may receive a 'homestead exemption' that reduces their taxable value. For school district taxes, the standard homestead exemption is:
- A Texas real estate investor analyzing 'cash-on-cash return' is measuring:
- Texas ad valorem taxes are assessed by the county appraisal district. An agricultural landowner can reduce their taxes through the 'productivity value' (1-d-1) appraisal, which values the land based on:
- In Texas, the 'cost approach' to value is considered most reliable for:
- A Texas buyer makes a low offer on a property because comparable sales are lower than the list price. The seller counters that their property is special and worth more. The appraiser's role is to:
- The 'three approaches to value' in real estate appraisal are:
- The 'highest and best use' analysis in Texas real estate appraisal must consider uses that are:
- In Texas, a 'depreciated cost' estimate for appraisal purposes involves subtracting which types of depreciation from the reproduction or replacement cost?
- In Texas, county appraisal district appraisals are conducted as of which date each year?
- In Texas, a TREC-licensed real estate appraiser would be licensed under which body?
- A Texas appraiser reconciles the following value indications for a single-family home: Sales Comparison = $285,000; Cost Approach = $295,000; Income Approach = $270,000. For a typical owner-occupied home, the appraiser would likely place the most weight on:
- In real estate appraisal, 'market rent' versus 'contract rent' is relevant because:
- In Texas commercial real estate, a 'cap rate expansion' (rising cap rates) typically indicates:
- In Texas property tax, an ARB (Appraisal Review Board) protest is initiated when a property owner:
- Texas Central Appraisal Districts (CADs) are required to reappraise property at least once every:
- In Texas, a 'retrospective appraisal' is performed as of a date in the past and is used for:
- In Texas, the 'market extraction method' for determining an appropriate overall capitalization rate involves:
- A Texas commercial appraiser uses 'discounted cash flow' (DCF) analysis for a 10-year hold period. The discount rate used reflects:
- In real estate appraisal, 'economic rent' refers to:
- In Texas, the 'allocation method' for estimating land value uses:
- In a competitive market, the value of a property 'regresses' when:
- Texas Property Tax Code requires that property be valued at market value. 'Market value' is defined as the price a property would bring if:
- In real estate, the principle of 'conformity' states that property value is maximized when:
- The 'Appraisal Foundation' sets USPAP (Uniform Standards of Professional Appraisal Practice) standards for appraisers. USPAP is updated:
- In Texas, the 'income multiplier' approach (such as the GRM) differs from the capitalization approach in that:
- In Texas, a county appraisal district's use of 'mass appraisal' techniques means they:
Environmental
113 questions- The Texas Commission on Environmental Quality (TCEQ) is the state agency primarily responsible for:
- Lead-based paint disclosure is required for homes built before:
- Radon gas in Texas homes enters primarily through:
- An underground storage tank (UST) leak on a Texas property is regulated primarily by:
- Asbestos-containing materials (ACM) in older Texas buildings are regulated under:
- Texas water law follows a combination of systems for surface water. Under the prior appropriation doctrine for surface water in Texas:
- Groundwater rights in Texas are governed by the 'rule of capture,' which means:
- A Texas property with a known history of dry-cleaning operations should be investigated for contamination from which common chemical?
- CERCLA (Superfund) in Texas addresses:
- A Phase I Environmental Site Assessment (ESA) in Texas is designed to:
- The Texas Voluntary Cleanup Program (VCP) administered by TCEQ allows property owners to:
- Wetlands on a Texas property may be regulated by the:
- A Texas seller of a 4-unit residential building built in 1965 must provide buyers with a lead-based paint disclosure. The disclosure must include:
- A Texas property near a former gas station may contain soil contamination from a leaking underground storage tank (LUST). A buyer should be concerned about:
- The Endangered Species Act (ESA) can affect Texas real estate development by:
- The Texas Railroad Commission (TRC) regulates:
- Mold contamination in a Texas rental property is the landlord's responsibility to remediate when:
- A Texas commercial property that has environmental contamination may qualify for the 'innocent landowner' defense under CERCLA if the buyer:
- Formaldehyde off-gassing from building materials in Texas homes is primarily a concern with:
- Texas has a state Superfund program known as the:
- Polychlorinated biphenyls (PCBs) in Texas may be found in older commercial buildings in:
- The Safe Drinking Water Act (SDWA) affects Texas real estate by:
- An environmental indemnification clause in a Texas commercial real estate contract allocates:
- Texas agricultural land may be subject to natural attenuation as a TCEQ-approved remediation strategy. Natural attenuation means:
- Texas law (Texas Property Code § 5.008) requires sellers of residential property to disclose known environmental hazards on the Seller's Disclosure Notice. Which item would MOST likely be included?
- A Texas property near a San Antonio industrial corridor may be subject to a TCEQ-designated 'buffer zone' restriction. This buffer zone:
- The National Flood Insurance Program (NFIP) administered by FEMA affects Texas real estate by:
- Texas Water Code Chapter 36 governs Groundwater Conservation Districts (GCDs). A GCD may regulate:
- A Texas property near the Gulf Coast may be located in a storm surge zone. The primary risk to real estate in a storm surge zone is:
- Land subsidence in the Houston area is primarily caused by:
- A Texas buyer discovers after closing that their property is near a Superfund site listed on CERCLA's National Priorities List (NPL). The buyer's best course of action to understand potential liability and risks is to:
- Under Texas law, a seller of property with a septic system must disclose:
- Texas Oil Field Legacy issues arise when historic oil production sites have abandoned wells and contaminated soil. The Texas Railroad Commission's Well Plugging Program addresses these by:
- Under CERCLA's innocent purchaser defense in Texas, 'all appropriate inquiries' (AAI) must be performed in accordance with:
- Carbon monoxide (CO) is a hazard in Texas homes primarily produced by:
- The Texas Open Beaches Act provides that:
- A Texas real estate transaction involving property near the Eagle Ford Shale play should be aware of potential impacts from:
- The Texas Commission on Environmental Quality (TCEQ) administers the Texas Emission Reduction Plan (TERP). This program is relevant to real estate because:
- In Texas, methamphetamine lab contamination in a residential property must be disclosed because:
- A Texas coastal property in a FEMA 100-year flood zone (Zone AE) requires flood insurance for a federally backed mortgage. The 100-year flood designation means:
- In Texas, an 'environmental lien' can be filed on a property by TCEQ to:
- The Texas Coastal Coordination Act requires state and local agencies to manage coastal resources in a manner consistent with:
- A Texas property with a buried underground oil storage tank that has been removed should:
- Texas agricultural land may be sprayed with herbicides or pesticides. Prospective buyers should be aware that:
- The Texas State Soil and Water Conservation Board oversees:
- In Texas, the term 'brownfield' refers to:
- The Texas Natural Resource Conservation Commission (TNRCC) was reorganized and renamed as:
- A Texas property with an old underground heating oil tank may require disclosure because:
- Texas coastal properties face subsidence risks, particularly in the Houston-Galveston area. The primary regulatory response has been through the:
- In Texas, naturally occurring radioactive material (NORM) is a concern on properties that have been used for:
- Texas law requires sellers of residential properties to disclose whether the property is located in a '100-year floodplain' on the Seller's Disclosure Notice. This information can be verified through:
- The Texas Clean Air Act (administered by TCEQ) affects real estate development by:
- A Texas property with a historic use as a dry goods store or pharmacy may have soil contamination from:
- In Texas, the 'innocent landowner' defense under CERCLA is best obtained through:
- A Texas property that was used as a military base may contain unexploded ordnance (UXO). This creates what type of concern for future development?
- Under the Texas Natural Resources Code, the 'accommodation doctrine' for mineral rights owners means:
- A Texas property near a petrochemical facility along the Gulf Coast 'fence line' may be subject to air quality monitoring under:
- A Texas property with historic agricultural use may have soil contamination from:
- The Texas Water Rights Adjudication Act ensures that:
- In Texas, a TCEQ 'Agreed Order' in an environmental enforcement matter typically includes:
- Texas coastal erosion is a significant concern for beachfront property owners because the Texas Open Beaches Act means:
- Under CERCLA, an innocent landowner defense requires a buyer to demonstrate they performed:
- Texas Commission on Environmental Quality (TCEQ) regulates all of the following EXCEPT:
- Lead-based paint disclosure requirements under federal law apply to residential properties built:
- Radon is a naturally occurring radioactive gas that enters homes primarily through:
- Asbestos-containing materials in older Texas buildings are most dangerous when they are:
- Underground storage tanks (USTs) containing petroleum products pose environmental risks primarily through:
- Texas Water Code governs water rights. Under the 'rule of capture' for groundwater in Texas, a landowner:
- A property owner near a Texas floodplain discovers their property is in a Special Flood Hazard Area (SFHA). Under FEMA's National Flood Insurance Program, the property owner in a participating community:
- Texas Senate Bill 1356, which became effective in 2011, expanded seller disclosure requirements to include:
- Texas requires sellers to disclose on the Seller's Disclosure Notice whether the property is located in a:
- A Texas property has a septic system that is failing and contaminating the soil. This would be disclosed on the Seller's Disclosure Notice under:
- Wetlands in Texas are primarily regulated by which federal agency and law?
- A Texas property owner discovers petroleum contamination on their property from a neighboring gas station's underground tank. The property owner's most immediate concern should be:
- Under the Texas Natural Resources Code, mineral rights (oil, gas) in Texas are:
- Texas requires that licensed environmental assessors or Phase I ESA professionals follow standards established by which organization?
- Texas Property Code Section 5.008 requires the Seller's Disclosure Notice to be provided. Which of the following sellers is typically EXEMPT from this requirement?
- In Texas, the 'voluntary cleanup program' (VCP) administered by TCEQ allows property owners to:
- Texas Property Code Section 5.008 requires sellers to disclose whether the property is located in a 100-year floodplain or if it has flooded within the last:
- Texas law requires that before demolition or significant renovation of a building that may contain asbestos, the owner must:
- In Texas, the Edwards Aquifer Authority (EAA) manages groundwater withdrawals from the Edwards Aquifer, which provides drinking water to San Antonio and other areas. The EAA's authority to limit pumping is an exception to Texas's normal:
- Texas has 'right-to-farm' laws that:
- Texas has enacted legislation requiring sellers of residential property to disclose if the property is in an area with active oil and gas exploration. This is significant because:
- In Texas, 'brownfield' properties are:
- A Texas property is located near a former industrial facility that used TCE (trichloroethylene). If TCE has migrated into the groundwater beneath the property, this is classified as:
- Polychlorinated biphenyls (PCBs) found in older electrical transformers and equipment in a Texas commercial building are regulated primarily under:
- Texas Senate Bill 900 requires public water suppliers to test for and report on certain contaminants. As a real estate agent, the most relevant environmental issue related to public water supply is:
- In Texas, properties near oil refineries, petrochemical plants, or other heavy industry may require disclosure of potential issues related to:
- Electromagnetic fields (EMFs) from high-voltage power lines near a Texas property are considered what type of environmental concern?
- Polybrominated diphenyl ethers (PBDEs), used as flame retardants in older furniture and electronics, are considered environmental hazards in real estate primarily because:
- Texas's 'anti-litter law' and solid waste regulations are primarily enforced by:
- In Texas, a property buyer who discovers undisclosed contamination after closing may have claims against all of the following EXCEPT:
- Under Texas Property Code, a seller who has actual knowledge that a property is in a special flood hazard area (SFHA) but fails to disclose this on the Seller's Disclosure Notice may be liable under:
- Texas has significant oil and gas production activity. A 'surface use agreement' (SUA) protects a Texas landowner by:
- In Texas, the 'Texas Railroad Commission' (TRC/RRC) regulates:
- The Texas Clean Air Act (TCAA), administered by TCEQ, regulates emissions from which of the following sources?
- Texas has 'right to farm' provisions that protect agricultural operations. When a Texas buyer purchases property adjacent to existing farms or ranches, the real estate agent should:
- In Texas, a property adjacent to an active oil field may experience 'subsidence' from oil and gas extraction. Subsidence refers to:
- Texas Property Code Section 5.0651 requires sellers of residential real estate to disclose if the property is:
- In Texas, properties used for dry cleaning operations may have contamination from:
- Lead in drinking water is primarily regulated in Texas under the:
- When a Texas property is found to have contamination requiring cleanup, the property owner's cost to remediate may be covered (partially) by:
- In Texas, a 'deed restriction' that prohibits development near a floodplain or wetland area serves an environmental function by:
- Under Texas Health and Safety Code, sellers and landlords of pre-1978 residential housing must comply with federal lead-based paint disclosure requirements and also provide buyers and tenants with:
- Texas requires a disclosure on the Seller's Disclosure Notice regarding whether the property has been used for the manufacture of methamphetamine. This disclosure is important because:
- In Texas, a 'Phase II Environmental Site Assessment' is conducted when a Phase I ESA identifies 'recognized environmental conditions' (RECs). A Phase II typically involves:
- The Texas Commission on Environmental Quality (TCEQ) administers the 'State Superfund' program for properties that:
- Polycyclic aromatic hydrocarbons (PAHs) are common contaminants found at Texas gas station, auto repair shop, and coal tar sites. Their presence is significant in real estate because:
- Texas has specific rules about disclosure of underground storage tanks (USTs) to prospective buyers or tenants. A seller or landlord who knows of a UST on the property should:
- In Texas, when a property is converted from agricultural use to residential or commercial development, what environmental concern arises from the use of pesticides and fertilizers over the years?
- In Texas, the Sunset Advisory Commission periodically reviews state agencies including TCEQ and TREC. This review process is designed to:
- Texas's 'voluntary on-site wastewater treatment' systems (septic systems) are regulated primarily by:
- When a Texas real estate agent lists a property that includes a decorative koi pond fed by a natural creek, the agent should be aware that:
Escrow & Title
87 questions- In Texas, title insurance premiums are:
- An abstract of title is:
- In Texas, which of the following would most likely appear as an exception in a title insurance commitment?
- A deed in Texas must contain which of the following to be valid?
- In Texas, a title insurance policy that protects the lender is called a(n):
- The Texas Department of Insurance regulates title insurance rates in Texas. This means:
- A title commitment in Texas is issued before closing and is BEST described as:
- Which of the following title defects would MOST likely be covered by a Texas owner's title insurance policy?
- In Texas, the HUD-1 Settlement Statement has been replaced at most closings by:
- Under RESPA, a kickback paid to a real estate agent for referring business to a title company is:
- A lis pendens recorded against a Texas property provides notice that:
- In Texas, when does the buyer typically receive the owner's title insurance policy?
- Which of the following best describes the function of the county clerk's office in Texas real estate transactions?
- A survey exception in a Texas title insurance policy means that:
- RESPA's Section 9 prohibits:
- A Texas abstract of title is BEST described as:
- In Texas, real property taxes are considered a(n):
- The purpose of recording a deed in Texas county deed records is to:
- In Texas, the right of rescission under TILA gives a borrower in a refinance transaction (on their primary residence) the right to cancel within:
- Which of the following best explains why Texas does not have a real estate transfer tax?
- In Texas, the purpose of a title search is to:
- Which of the following is typically NOT prorated at a Texas real estate closing?
- A Texas closing involves the seller having a $150,000 mortgage balance being paid off. At closing, the title company will:
- The standard Texas title insurance policy (T-1) provides coverage for:
- In Texas, which instrument is commonly used to release a paid-off deed of trust lien?
- A Texas buyer's title insurance policy protects against which of the following?
- When a Texas property is purchased, the buyer assumes which of the following automatically with the deed unless excepted?
- The T-19 endorsement to a Texas title insurance policy (Restrictions, Encroachments, and Minerals endorsement) provides:
- In Texas, the closing disclosure must be provided to the buyer at least how many business days before closing under TRID rules?
- A Texas real estate closing involves the simultaneous exchange of the deed for the purchase price. This is facilitated by:
- In a Texas real estate closing, a 'gap' in title refers to:
- A Texas simultaneous issue of owner's and lender's title insurance policies means:
- Texas title insurance Schedule B-II lists:
- A Texas title company that discovers a judgment lien against the seller at closing will require:
- In Texas, a mechanic's lien affidavit must be filed within how many months after the last date labor or materials were furnished to the property?
- In Texas, a title commitment Schedule B-II lists:
- A Texas title policy's 'survey exception' protects the title company from claims arising from:
- A 'deed of trust' in Texas differs from a mortgage primarily because:
- In Texas, a 'mechanics and materialmen's lien' (M&M lien) protects:
- In Texas, a 'judgment lien' attaches to all non-exempt real property owned by the judgment debtor in the county where the judgment is recorded. Under Texas law, a judgment lien expires after:
- In Texas, an 'owner's title insurance policy' protects:
- In Texas, 'constructive notice' of a property interest is provided by:
- In Texas, when a deed of trust is paid off, the lender (beneficiary) must provide a release of lien. This document is called a:
- In a Texas real estate transaction, 'proration' at closing refers to:
- In Texas, a 'lis pendens' is a recorded notice that:
- In Texas, who determines the marketability of title in a real estate transaction?
- When a Texas property is foreclosed under a deed of trust at the trustee's sale (first Tuesday), the successful bidder receives a:
- A Texas 'abstract of title' is:
- In a Texas title insurance transaction, who typically pays for the owner's title insurance policy?
- In Texas, a 'lender's policy' of title insurance (mortgagee's policy) protects:
- In Texas, a 'deed restriction' violation can be enforced through a lawsuit for which type of relief?
- A 'deed in lieu of foreclosure' in Texas occurs when:
- A 'chain of title' refers to:
- In Texas, a 'materialman's lien' (mechanic's lien) must be filed within a specific time frame to be valid. For a general contractor on a residential project, the lien must typically be filed:
- At a Texas residential closing, the HUD-1 Settlement Statement has been replaced by the TRID (TILA-RESPA Integrated Disclosure) forms. The two main TRID forms are:
- In Texas, 'title insurance' differs from other types of insurance in that it:
- In Texas, a 'deed of trust sale' (trustee's sale) must be conducted on:
- When a buyer in Texas receives clear title at closing, the title company issues an owner's title insurance policy. The policy amount is typically:
- In Texas, property transferred in a will is subject to:
- In Texas, a 'subordination agreement' is used when:
- Under the Texas Real Property Transfer on Death Act, a TODD (Transfer on Death Deed) transfers property to the beneficiary:
- In a Texas commercial real estate transaction, a 'due diligence period' (inspection period) typically allows the buyer to:
- In Texas, an 'abstract and opinion' system of title assurance means:
- In Texas, an 'acceleration clause' in a deed of trust allows the lender to:
- In Texas, a 'writ of execution' in real estate means:
- In Texas, a 'special warranty deed' is commonly used in foreclosure sales and estate sales because:
- In Texas, a 'title plant' maintained by a title company is:
- In Texas, a 'marital lien' or 'homestead protection' can affect a real estate transaction when:
- In Texas, 'possession and use' of a property prior to closing while a transaction is pending creates which type of arrangement?
- In Texas, 'priority of liens' generally follows the rule of:
- In Texas, when closing costs are described as being 'paid outside of closing' (POC), this means:
- In Texas, a 'purchase money deed of trust' (PMDT) has priority over all other liens that attach after it because:
- In Texas, the 'right of redemption' after a non-judicial trustee's foreclosure sale is:
- In Texas, a title company that discovers a discrepancy in the legal description of a property during a title search must:
- In Texas, a 'certificate of title' for manufactured homes converted to real property is issued by:
- In Texas, a 'deed restriction' recorded in the chain of title but never enforced may be subject to challenge on the grounds of:
- In Texas, 'title insurance' premiums are filed with and regulated by the:
- In Texas, a 'title search' examines county records going back to the 'sovereignty of the soil.' This means the search starts at:
- In Texas, a 'restrictive covenant' that was imposed by a developer in 1955 and that prohibited sale of properties to persons of certain races is:
- In a Texas commercial real estate sale, a 'non-disturbance agreement' (SNDA) is used to:
- In Texas, a 'title commitment' Schedule B-I (requirements) might include which of the following items that must be completed before the title company will issue the final policy?
- In Texas, when a seller receives a release of lien from their lender after paying off their mortgage, the seller is responsible for:
- In Texas, a 'blanket mortgage' or 'blanket lien' in real estate is a mortgage that covers:
- When a Texas property transaction is 'funded' at closing, it means:
- In Texas, a 'quiet title action' is a lawsuit filed to:
- In Texas, the priority between two competing deeds from the same grantor to different grantees is determined by:
- In Texas, a 'deed of trust' transaction involves three parties: the trustor, trustee, and beneficiary. At foreclosure, the trustee's role is to:
Fair Housing
82 questions- A Texas licensee who changes the terms of their services based on a client's national origin is violating:
- A landlord wants to advertise their 3-bedroom rental property as 'perfect for a family with children.' This advertising is:
- Under the Fair Housing Act, which of the following is NOT required of a housing provider when a disabled tenant requests a reasonable accommodation?
- The Texas Workforce Commission Civil Rights Division handles Fair Housing complaints in Texas. A complaint must generally be filed within:
- Which of the following is NOT a protected class under the federal Fair Housing Act of 1968 as amended?
- A Texas landlord refuses to rent to a family because they have two young children. This is most likely a violation of:
- Blockbusting is defined as:
- The Americans with Disabilities Act (ADA) applies to Texas commercial places of public accommodation. Under the Fair Housing Act, what accommodation must multifamily housing built after March 13, 1991 provide?
- Steering in Texas real estate occurs when an agent:
- A Texas property manager refuses to make a reasonable accommodation for a disabled tenant's assistance dog, citing a no-pets policy. This action most likely violates:
- Which federal law prohibits discrimination in residential mortgage lending based on race, color, religion, national origin, sex, familial status, or disability?
- A Texas real estate agent who uses different contract terms for clients of different national origins is engaging in:
- The Texas Fair Housing Act is administered by the:
- A 55+ housing community in Texas can legally restrict residency to older persons under the Fair Housing Act if:
- Redlining in Texas real estate refers to the practice of:
- The Fair Housing Act prohibits which of the following advertising practices?
- A Texas apartment complex manager allows large dogs for one tenant but refuses the same accommodation for another tenant of a different race. This is an example of:
- Under the Fair Housing Act, a landlord may charge a higher security deposit for a disabled tenant who requires a reasonable accommodation if:
- The 'effects test' in fair housing law refers to:
- Under TREC rules, a Texas real estate licensee who engages in discriminatory conduct faces:
- A Texas mortgage company's policy of requiring a higher credit score for loans in minority neighborhoods than in comparable predominantly white neighborhoods would be an example of:
- Under the Fair Housing Act, a seller who refuses to negotiate with a buyer because of the buyer's religion is:
- HUD's 'disparate impact' rule in fair housing means that a neutral policy can be illegal if:
- A Texas leasing agent who shows only luxury properties to White applicants and only budget properties to Black applicants with similar qualifications is engaging in:
- The Texas Fair Housing Act provides protections that are at least equivalent to federal law. Texas cities may also enact local fair housing ordinances that:
- A Texas property owner renting out a single-family home using their own resources (no agent, no financing) may claim a limited exemption from the FHA, sometimes called the 'Mrs. Murphy' exemption, if:
- A Texas apartment complex with 200 units has a policy that only families with children can live on the first floor for safety reasons. This policy:
- A Texas property management company asks all rental applicants about their national origin 'for statistical purposes.' This practice is:
- A Texas licensed agent who witnesses a colleague using discriminatory practices in a real estate transaction has an obligation to:
- The Community Reinvestment Act (CRA) and HMDA together address lending disparities in Texas by:
- A Texas landlord refuses to rent to a family because they have three children, citing a policy limiting each unit to two occupants per bedroom. Under the Fair Housing Act, this policy:
- Under the Fair Housing Act, a 'testers' program where individuals of different races pose as potential buyers to test for discrimination is:
- A Texas real estate agent who steers buyers of a particular religion away from certain neighborhoods and toward others is:
- A landlord's refusal to rent to a person because they use a wheelchair and would require a grab bar installation in the bathroom is:
- The Americans with Disabilities Act (ADA) primarily applies to:
- Under the Fair Housing Act, advertising 'perfect for young professionals' in a property listing may be problematic because it could constitute:
- A real estate broker who maintains a racially segregated housing pattern by only showing African American buyers homes in predominantly African American neighborhoods is engaged in:
- Under the Fair Housing Act, a complaint must be filed with HUD within:
- A real estate company's policy of not advertising properties in certain ethnic newspapers to avoid serving minority communities is an example of:
- A Texas property management company refuses to accept housing vouchers (Section 8) as a form of rent payment. Under federal Fair Housing Act, this policy:
- The Fair Housing Act's prohibition on discrimination extends to which of the following actions by a real estate agent?
- Under the Fair Housing Act, a condominium association that adopts a rule prohibiting all children from using the swimming pool is:
- Which federal agency administers and enforces the Fair Housing Act?
- A landlord in Texas who has 4 single-family homes that they rent is exempt from the Fair Housing Act's requirements when:
- A property manager in Texas is asked by an owner to refuse to rent to families with children to maintain a 'quiet community.' The property manager should:
- A Texas real estate agent who makes statements designed to induce homeowners to sell by implying that the ethnic composition of a neighborhood is changing is engaged in:
- A Texas landlord charges a higher security deposit to tenants with disabilities because they fear the tenants may cause more damage. This practice:
- Under the Fair Housing Act, 'reasonable accommodation' for a person with a disability might include:
- A Texas community has a policy of only marketing new homes to families with children in a specific school district, excluding adults without children. This policy:
- The Fair Housing Act requires landlords and sellers to make properties accessible to persons with disabilities in all new residential construction (four or more units built after 1991) through 'design and construction requirements' that include:
- A Texas real estate agent who obtains a listing should be aware that the Fair Housing Act prohibits the agent from:
- An HOA in Texas adopts a rule requiring all residents to speak English at all community meetings. This rule may be challenged as discriminatory based on:
- Disparate impact under the Fair Housing Act means that a neutral policy can violate the Act if it:
- A Texas real estate agent who receives compensation from a lender for steering buyers toward high-cost loan products may be violating:
- Under the Texas Fair Housing Act (Property Code Chapter 301), the protected classes include all of the following EXCEPT:
- A Texas property manager who denies a housing application and refuses to state any reason for the denial may be creating:
- Under Texas and federal fair housing law, a person who is HIV-positive is protected from housing discrimination as a person with:
- A Texas lender provides more favorable mortgage terms to buyers purchasing in predominantly white neighborhoods compared to buyers purchasing in comparable properties in minority neighborhoods. This practice is known as:
- Under the Fair Housing Act, a landlord who discovers that a tenant has made unauthorized modifications to a rental unit to accommodate a disability must:
- A real estate agent in Texas asks a buyer, 'Would you be comfortable in a predominantly Hispanic neighborhood?' before showing them properties. This question:
- A Texas property owner who engages in discriminatory housing practices may face penalties under the Fair Housing Act including:
- A Texas buyer's agent shows a Jewish buyer only properties in neighborhoods without synagogues because the agent assumes the buyer wouldn't want to drive far to religious services. This is:
- A Texas real estate company's training materials state that agents should 'read' clients and only show them properties in neighborhoods that match their background. This policy:
- A Texas apartment complex uses an automated AI-based screening system that was not intentionally designed to discriminate but consistently rejects applicants from certain zip codes that correspond to minority communities. This may violate the Fair Housing Act based on:
- A Texas property manager requires prospective tenants to provide their national origin on the rental application. This requirement:
- Under the federal Fair Housing Act, a complaint filed with HUD may result in the parties being directed to:
- A real estate broker's office in Texas conducts fair housing training annually. This training is important because agents who violate the Fair Housing Act can expose the broker to liability for:
- A Texas lender denies a mortgage application from a qualified applicant without explanation. The applicant is of Vietnamese descent and has strong credit. Under ECOA, the lender is required to:
- Under the Fair Housing Act, a landlord may charge a pet deposit but may NOT charge an additional deposit for:
- A Texas landlord who discovers that a tenant's disability requires a 'reasonable modification' to the physical structure (such as widening a doorway) can require the tenant to:
- Under the Fair Housing Act, 'associational discrimination' means a landlord cannot discriminate against someone because:
- Texas real estate professionals should know that the Fair Housing Act's coverage includes which of the following transactions involving single-family homes?
- A Texas apartment complex manager states: 'Our complex is a quiet place for retirees.' This statement may violate the Fair Housing Act because it:
- A Texas real estate agent who wants to ensure their practice complies with fair housing law should do all of the following EXCEPT:
- A Texas property owner claims an exemption from the Fair Housing Act under the 'Mrs. Murphy exemption.' For this exemption to apply, the property must be:
- A Texas landlord requires all prospective tenants to provide proof of citizenship or legal immigration status before renting to them. Under the Fair Housing Act, this policy:
- A prospective tenant asks a Texas property manager if the neighborhood has many children, as they are looking for a family-friendly environment. The property manager should:
- The 'Inclusive Communities' Supreme Court case (2015, involving the Texas Department of Housing) established that:
- Under the Fair Housing Act, a landlord's refusal to accept Housing Choice Vouchers (Section 8) in Texas:
- A Texas real estate brokerage that maintains a policy of not showing properties in certain price ranges to avoid serving a specific demographic is engaged in:
- In Texas, the Texas Fair Housing Act (Property Code Chapter 301) is enforced by the Texas Workforce Commission's Civil Rights Division. If a complaint is substantiated, the Commission may:
- A Texas real estate agent who helps a landlord draft a rental advertisement that states 'No Section 8' (refusing Housing Choice Vouchers) should advise the landlord that:
Ready to Practice?
Take a free Texas practice quiz — no signup required.
Start Free Quiz →