The four elements required for a property to have value are demand, utility, scarcity, and:
A) desirability
B) durability
C) transferability
D) affordability
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Under current TREC residential contracts, the buyer's option fee must be delivered to:
A) the seller directly
B) the listing broker
C) the buyer's lender
D) the escrow agent
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An appraiser concludes that a vacant downtown lot would generate the most value developed as a parking garage rather than as retail or housing. This conclusion reflects the principle of:
A) highest and best use
B) conformity
C) anticipation
D) plottage
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A homeowner spends $80,000 installing a pool, but the home's market value rises by only $30,000. This illustrates the appraisal principle of:
A) substitution
B) regression
C) anticipation
D) contribution
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A Texas buyer's agent offers to rebate a portion of their commission to their own buyer at closing. Under Texas law, this is:
A) permitted, with proper disclosure to the parties
B) prohibited as an illegal kickback
C) permitted only if the buyer is a licensed attorney
D) prohibited unless TREC approves it case by case
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The appraisal principle holding that a buyer will pay no more for a property than the cost of acquiring an equally desirable alternative is:
A) anticipation
B) substitution
C) contribution
D) conformity
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A new survey reveals that the neighbor's garage extends two feet across the property line. The garage is an example of an:
A) encroachment
B) easement by necessity
C) appurtenance
D) encumbrance created by license
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A seller signs a purchase contract under duress. The contract is:
A) void
B) voidable by the party who was coerced
C) fully enforceable as written
D) illegal, exposing both parties to penalties
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A modest home located on a street of larger, more expensive homes tends to increase in value. This illustrates the principle of:
A) regression
B) progression
C) conformity
D) substitution
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A developer combines two adjacent lots under single ownership, and the combined parcel is worth more than the two lots were separately. The INCREASE in value is called:
A) accession
B) subdivision
C) plottage
D) assemblage
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Under Texas community property law, an inheritance received by one spouse during the marriage is:
A) community property, like all assets acquired during the marriage
B) community property, but only if deposited into a joint account
C) owned by the marital estate until a divorce decree says otherwise
D) that spouse's separate property
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A well-maintained home loses value because the city builds a sewage treatment plant next door. An appraiser classifies this loss as:
A) external obsolescence
B) functional obsolescence
C) physical deterioration
D) curable depreciation
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Private mortgage insurance on a conventional loan is designed to protect:
A) the borrower, if they lose their job
B) the borrower's heirs, if the borrower dies
C) the lender, against losses from borrower default
D) the title company, against recording errors
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made a lil infographic to explain some of the differences between the national vs TX state portion on the real estate exam. hopefully someone will find this helpful! good luck to everyone studying right now.🤞
Before a buyer signs a contract on a Texas home located in a municipal utility district, the seller MUST provide:
A) proof that all utility bills are current
B) written notice of the district's tax rate and bonded indebtedness
C) a copy of the district's annual operating budget
D) a certificate of occupancy from the district
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Under an open listing, the seller owes a commission to:
A) every broker who actively marketed the property
B) the listing broker, regardless of who finds the buyer
C) no one — open listings are unenforceable in Texas
D) only the broker who actually procures the buyer
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The gradual addition of land through soil deposited by a river over time is called:
A) avulsion
B) accretion
C) reliction
D) erosion
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When a Texas property is taken through eminent domain for a highway project, the owner is entitled to:
A) the property's fair market value
B) the replacement cost of a comparable home
C) the county's assessed value
D) their original purchase price plus improvements
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The sequence of recorded conveyances showing every transfer of a property's ownership over time is the:
A) abstract of title
B) title commitment
C) cloud on title
D) chain of title
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A listing agent tells a buyer, "This is the best backyard in the whole county." This statement is:
A) misrepresentation
B) puffing
C) fraud
D) a breach of fiduciary duty
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