chapter 3 and 4 quiz Flashcards Preview

Texas real estate exam prep > chapter 3 and 4 quiz > Flashcards

Flashcards in chapter 3 and 4 quiz Deck (20)
Loading flashcards...
1
Q

A property manager is hired and signs a management agreement with the owner. At this time, the property manager is:

A

c. a general agent

2
Q

A buyer and seller have negotiated a contract on the seller’s property with a closing set for June 14, time is of the essence. On June 12th the listing agent calls the buyer’s agent and tells him the seller will be unable to close on the 14th. The seller can close on the 16th. At this time, what is true?

A

. the contract is voidable by the buyer

3
Q

A licensee is representing a seller in a commercial transaction. The property is under contract and all contingencies have been met. The listing agent learns the State Department of Transportation has authorized the construction of an exit ramp to the interstate right behind the commercial property. The exit ramp will greatly increase the value of the seller’s property. What should the agent do?

A

tell the seller and encourage the seller to complete the negotiated sale

4
Q

A listing agent is showing his listing to a buyer customer and notices a problem with the exterior of the property that he missed when he listed the property. What should he do?

A

point it out to the buyer as it is a material fact

5
Q

A buyer’s agent has accidentally forwarded confidential information about his buyer’s financial background to the listing agent. What is true?

A

the buyer’s agent is guilty of negligence and the listing agent must disclose the information to the seller

6
Q

What is the difference between replacement cost and market value?

A

depreciation

7
Q

Economic life is defined as:

A

years of depreciation

8
Q
  1. An unlicensed assistant gets a call from a listing owner with questions about a contract – what should the assistant do?
A

take the information to the listing broker

9
Q

An underage college student signs a lease then discloses his age to the landlord. What is true?

A

c. the contract is voidable at the minor’s option

10
Q

A seller comes into the office to sign a contract. The seller is stumbling and smells of alcohol. How do you proceed?

A

a. tell the seller to leave and return at another time

11
Q

What are the requirements/criteria for real estate to have value?

A

Demand, Utility, Scarcity, Transferability

12
Q

What principle of value defines the most important factor for appraisal?

A

Highest and Best Use

13
Q

What approach would an appraiser most likely use to value a residential rent house in a neighborhood where a majority of the homes are leased

A

income approach

14
Q

A licensed broker is advertising that he will perform a free appraisal if you contact him for a listing appointment. He is not in violation of the law:

A

if he is a licensed appraiser

15
Q

Which of the following is NOT an example of functional obsolescence?

A

deferred maintenance

16
Q

According to the Statute of Frauds, which of the following leases must be in writing?

A

c. a lease for more than 1-year

17
Q

Your client is an investor who would like to have the right to purchase a commercial tract for $5 million for the next six months. What type of contract should he enter into with the seller?

A

. an option contract

18
Q

A signed sales contract that has not yet gone to closing is:

A

executory

19
Q

When does an offer become a contract?

A

when it is accepted and acceptance is communicated

20
Q
  1. Which of the following statements is true about the duties of an agent according to the common law of agency?
A

an agent must treat both clients and customers with honesty and fairness