TEXAS PRINCIPLES 1 EXAM ACTUAL EXAM 300 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ASNWERS) |ALREADY GRADED A+

TEXAS PRINCIPLES 1 EXAM 2023-2024 ACTUAL

EXAM 300 QUESTIONS AND CORRECT DETAILED

ANSWERS WITH RATIONALES (VERIFIED ASNWERS)

|ALREADY GRADED A+

What's the purpose of PMI? - ANSWER- Covers the gap between the

actual loan amount and 80% of the LTV

Private mortgage insurance (PMI) is used on conventional loans that

are taken out for more than 80% of the LTV. It covers the gap

between the actual loan amount and 80% of the LTV.

A real estate licensee is acting as what type of agent when assigned by

the broker to represent one party in an in-house transaction? -

ANSWER- Designated

What's the purpose of the ECOA? - ANSWER- To prevent

discrimination in lending

Acme Realty offers discounted services. Berringer Realty and

Hawthorne Real Estate Group decide to not show any of Acme's listings

and to prohibit showings from Acme buyers to drive Acme out of

business. What is this an example of? - ANSWER- Group boycotting

How do licensees create implied agency? - ANSWER- Through the

parties' actions

Tina has fee simple ownership of her timeshare unit. Which of these is

NOT an example of the type of ownership she may have?

A) Interval ownership

b) Right-to-use

c) Tenancy in common

d) Timeshare estate - ANSWER- b

Why is right-to-use not an example of a fee simple ownership of a

timeshare unit? - ANSWER- Fee simple ownership of a timeshare (aka

timeshare estate) unit means that the owner may share tenancy in

common with other timeshare owners or may have an interval

ownership. A right-to-use timeshare is a lease agreement, not an

ownership interest.

Which of the following is NOT a good method for real estate companies

to avoid penalties for making accidental calls to numbers on the DNC

list?

a) Calling consumers on the DNC list for four weeks after they are

added to the registry

b) Documenting the process used in making calls

c) Training staff on procedures

d) Updating records as required - ANSWER- a

In Texas, when is a licensee required to provide an agency disclosure to

the party they are not representing in a transaction?

a. When delivering an offer for a specific property

b. When determining a listing price for a specific property

c. When engaging in substantive dialogue about a specific property

d. When entering into an agency agreement - ANSWER- c.

You must disclose whatever agency, or broker, relationship you have at

the time of the first substantive dialogue with the party you are not

representing in the transaction. Substantive dialogue includes

conversations held in face-to-face meetings, or via email, phone, and/or

text.

Which legal description method uses compass headings and directions?

a. Block and grid

b. Lot and block

c. Metes and bounds

d. Rectangular government survey - ANSWER- c

What divides land into townships and further divides those into sections.

- ANSWER- rectangular government survey

1 acre = ______ square feet - ANSWER- 43,560

Which one of the following types of ownership termination allows each

tenant to have a specific, divided portion (partition) of the property

exclusively?

a. Termination by division

b. Termination of co-ownership by partition

c. Termination of estate in severalty

d. Termination of joint tenancies - ANSWER- b

Termination of tenancy in common by partition allows each tenant

to have a specific, divided portion of the property exclusively. If the

property can't be divided, the court may rule that the property be

sold and the proceeds divided by the tenants.

Fee simple ______ includes two categories, which can be distinguished

in part by the way in which ownership may be regained by the original

grantor of the estate. - ANSWER- defeasible

"Separate property" is property most likely acquired ______. -

ANSWER- Prior to marriage

Tom and Linda are Texas residents who wish to make a fair housing

complaint to the TWCCRD about a licensee they encountered while

shopping for a vacation home in Montana. Can they do this? -

ANSWER- No. All complaints to the TWCCRD must be for Texas

property.