TX Real Estate Section 1

Exclusive right to sell

agreement guarantees the agent's brokerage receives a commission if the property is sold, regardless of who brings the buyer

Lead based paint

An agent is listing a property built in 1964. The agent is required by federal law to provide the buyer with a disclosure on which environmental hazard

Trust Tenancy

Which one of the following is NOT a type of co-ownership?

limited partnership

When a business has general partners that oversee the day-to-day activities of the business and other partners that are only investors and ONLY have liability up to the amount of their investments

creditors

Texas homestead laws protect homeowners from:

abstract of title

What is the history of the title to a property called?

Littoral rights

Buyer Alex is looking at a lakefront property. He has questions about whether he would be allowed to access and use the lake. What kind of rights is Alex wondering about?

Riparian Rights

Rights that govern the use of flowing water, such as rivers and streams that pass through or border a property are known as:

cloud on title

Winston and Ally purchased a home together, but both remained on the title after their divorce, even though Ally got the house to herself. While trying to sell the house, it is discovered that Winston is still considered an owner.
This is an example of what type of encumbrance?

sue for compensatory damages, specific performance or both

When there is a breach of contract, the non-breaching party can rescind the contract, forfeit the contract, or

Air Lot

space above a parcel of land called

contour maps

Where can developers find information about the terrain and elevation for a given parcel

rectangular survey method

Choose the survey method that could result in this legal description: "SW 1/4 of the NE 1/4 of the NW 1/4 of Section 2, Township 8 South, Range 3

bench mark

A monument used to establish the elevation of the point, usually relative to Mean Sea Level. It is permanent.

government survey system

A method of specifying the location of a parcel of land using prime meridians, base lines, standard parallels, guide meridians, townships and sections is known as the...

range

A strip or column of land six miles wide, determined by a government survey, running in a north-south direction, lying east or west of a principal meridian is known as a

Metes and Bounds

Land in Texas was originally identified by

metes & bounds

Describes the perimeter of the subject property in terms of boundaries directions and distance

what objects are used to mark surveys

A natural object such as a Tree or stream in rural settings but generally they are manmade like post, stakes, or iron pikes.

What is the rectangular survey system? Do we use it in Texas?

The rectangular survey system is the government survey system created by congress in 1785 to standardize the description of the land that the government planned on acquiring or that they did acquire.

NO

When do we use the rectangular system in Texas for descriptions?

We use them when we are doing section measurements

section

Established by a government survey and contains 640 acres and is one mile square.

43,560 sq.ft

1 acre in sqft

50,000

max settlement amount you can receive from TREC

A township consists of how many sections

36

Besides Metes and bounds are on

Recorded Subdivision plats

metes and bounds

Which does Texas primarily for their legal descriptions

Determining the height of structure or establishing the grate of a street

What is a datum used for?

a parcel

the break down number of a section.

1 year

Once a license application is filed, how long does an applicant have to satisfy the examination requirement?

to pay damages to a person from the public who wins a court case against a license holder

what is the recovery fund used for?

The Real Estate License Act

Chapter 1101 of the Texas Occupations Code is known as:

Preamble

The introduction to the National Association of REALTORS® Code of Ethics is called the:

fidelity, integrity and competency

The Canons of Professional Ethics and Conduct require the agent to practice:

Fair, honest & competent

The National Association of REALTORS® Code of Ethics says REALTORS® should be:

Preamble & 17 Articles

The National Association of Realtors' Code of Ethics consists of:

The Texas Occupations Code houses

The Texas Real Estate License Act (TRELA)

trade fixture

personal property that is owned by and needed for a tenant's business

Easement

Which of the following is NOT an ownership right?

real property

All interests, benefits, and rights inherent in the ownership of real estate (land, improvements, bundle of legal rights)

flood insurance policies only

Flood damage is covered by:

advance

Homeowners insurance policies are usually paid in

2 years

How long must homeowners live in a home to take advantage of the capital gains exemption under the Taxpayer Relief Act of 1997?

Planned Unit Development (PUD)

Which type of property is a development or subdivision that may include common elements such as parks, recreational areas, shopping, or offices in addition to residential dwellings?

Capital Gains Tax exemption

If you are single, homeowners are exempt from capital gains tax if they made less than $250,000in value. Those who are married and file together are exempt if they made less than $500,000 on the sale of the home.

intermediary broker

a broker who negotiates a contract between two parties that are both being represented by that broker

one year

How long does someone who believes that they have been injured by the discriminatory practices of a real estate license holder have to file a complaint with HUD?

Community Reinvestment Act

Which federal act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate?

Blockbusting

another word for the illegal practice of panic selling?

1. Tenancy in common 2. Joint Tenancy 3. Community property

Three types of property ownership in Texas

fixity

the permanence of land

situs

the desirability of a particular location

economic scarcity

is created solely by demand for land in particular areas

industrial property

includes Manufacturing, Storage, Distribution centers
Research, Warehousing

Brokers, agents & apartment locatiors

Who needs a license?

TRELA

The TREC is in charge of inforcing what?

The Texas Real Estate License Act (TRELA)
The NAR Code of Ethics
The Texas Real Estate Commission (TREC) Rules

Members of the National Association of Realtors NAR have to follow

a sunset act

is a common state law, which, in Texas, requires the Sunset Commission to evaluate all state agencies every 12 years with respect to their efficiency and the need for their services (essentially, to see if they are still needed).

at any time before acceptance

When can an offer be revoked?

license

Apartment Locators. License or no license?

Article 11

Article X states that a REALTOR® may provide a service they are not specialized in only after fully disclosing their lack of experience, or if the REALTOR® obtains assistance from someone competent in the field, in which case, the client must be informed.

regulates the activities of real estate brokers, sales agents, inspectors, and education providers who offer real estate and inspection courses. The Commission also regulates residential service companies, timeshare developers, and easement or right-of-way developers.

What is the TREC (Texas Real Estate Commission) in charge of doing?

Certificate of Registration (COR)

expire after two years and certificate holders are subject to the rules of TRELA.

true

TRUE or FALSE: Employees working for a commercial firm do not have to have a real estate license if they are selling property owned by their firm.

A real estate license is NOT required when a person is selling their portion of a joint ownership in a property.

When is a real estate license not required?

$100,000

What is the maximum amount that the Commission will pay on the license holder's behalf?

subrogation

means that the Real Estate Commission will take over the rights of the one owed the money in the judgment, but only to the amount that was paid out of the trust account. The Commission then will have the priority when it comes to repayment of any of the debt.

As the Commission receives money from the license holder who lost the case, it will be credited to the balance that the license holder owes.

Actual damages are designed to compensate the claimant; punitive damages are designed to punish the defendant.

What is the difference between actual and punitive damages?

proceeding notice

The Commission will have a method in place to notify the winning plaintiff of payment from the trust account. They will also set up some method for the license holders to notify the plaintiffs of the funds coming out of the trust account.

certificate

What must you have if you wish to sell, buy, lease, or transfer an easement or right-of-way?

nolo contendere (aka no contest)

a defendant's plea declaring that he will not make a defense but not admitting his guilt

2 years

If someone's license has been revoked, denied, or willingly returned to the Real Estate Commission how long must they wait to reapply for a license?

Consequences of receiving value consideration against the law

If someone breaks this rule, they may have to pay as much as three times the amount they received in the form of a penalty to TREC. This money would be deposited into the real estate recovery trust account.

Penalty is practicing unlicensed

the unlicensed person practicing real estate could pay up to six times the amount they received.

No, its an informal reference point.

Is a street address an adequate legal description?

Legal Property Descriptions

Survey is required. Types of surveys include: Metes and bounds, Rectangular geodesic survey (government), Lot block and subdivision (recorded plat).

metes and bounds

What survey method is most commonly used in Texas?

refers to the distance measurements used in the description

What does metes mean?

are the descriptions of the boundaries that enclose a parcel of real estate.

What does bounds mean?

metes and bounds

Monuments used to be used for what survey method?

metes and bounds

Which legal description will likely include the phrase "point of beginning"?

government survey system

Rectangular survey system is also known as

no

Is the rectangular system used in Texas?

rectangular survey system

What survey system uses longitude and latitude system?

Recorded plats/ lots and blacks (same thing)

Way to refer to land using lots and blocks numbers in a subdivision assigned by developers. Uses metes and bounds to first locate the borders of each parcel then it is sectioned off.

36 sections

1 township

640 acres

1 section

5280 linear feet

1 mile

Condo owners have the airsapce of their own, without elevation measurements how would you know the difference of units located right on top of each other

Condos require vertical land elevations why?

freehold, leasehold, equitable, concurrent (FLEC)

Four main types of estates in land are:

fee simple absolute, fee simple defeasible, life estate

Three types of freehold estates

fee simple absolute: you own the property outright and have control over everything about it

Most common way to take ownership of a property is

Fee Simple Defeasible

property is owned outright as long as certain conditions are maintained . Failure to comply with the conditions may result in a loss of ownership. NO COURT hearing necessary, property automatically reverts back to original owner if conditions are not met. It has already been "DETERMINED" the property will go back to YOU

fee simple defeasible to condition subsequent

the person that holds the right to reverter DOES have to go to court to prove they deserve the property back

life estate

can be gifted or sold, ownership is given for the remainder of the receivers life

Fee simple estate

Monica owns her house. For the duration of her lifetime, she has the right to her property (unless she sells it) and can will her property title to her children after her death. Monica has a:

fee simple determinable

Someone in San Antonio may own a property near a large football stadium. (Touchdown!) If a charitable organization were to approach the owner and says they would like to use the property for fundraising events, the owner might agree to transfer ownership to the group with the stipulation that the property will return back to them if San Antonio were to get a National Football League team.
In this case, the charity could do whatever they want with the property while they owned it, but the property would go back to the grantor (the one who transferred ownership to the charity) once the NFL team came to town.

Example of a remainder life estate

The parent could give a life estate to the older child and make the next child the remainderman. This means that when the oldest child dies, the next child will receive the remainder of the estate.

Reversionary Interest (Life Estate)

reverts back to the person who granted it in the first place

remainder

A father conveys property to his son, but reserves a life estate for himself. During the father's lifetime, what interest does his son have?