Principles of Real Estate 1 – Key Vocabulary

29 vocabulary flashcards summarizing key lease types, agency rules, Fair Housing provisions, TRELA requirements, property rights, and ethical duties from Principles of Real Estate 1.

Tenancy for Years (Estate for Years)

A leasehold estate with a definite beginning and ending date; no notice is required to terminate and the lease survives the death of either party or the sale of the property.

Emblements

Annual crops produced through a tenant’s labor; the cultivator retains the right to harvest even after ownership of the land changes.

TREC Complaint Investigation Timeframe

The Texas Real Estate Commission can investigate a complaint only if it is filed within four (4) years of the incident.

Agency Relationship

A fiduciary relationship created when one party (the agent) acts on behalf of and under the authority of another (the principal).

Lot-and-Block Method

A legal description system that identifies parcels by referencing recorded subdivision plats that list specific lot and block numbers.

IABS Form Timing

The Information About Brokerage Services form must be provided at the first substantive discussion of a possible real estate transaction.

Periodic Tenancy (Periodic Estate)

A leasehold that automatically renews for successive periods—such as month-to-month—unless proper notice is given to terminate.

Appointed License Holder Authority

In an intermediary transaction, the broker may appoint licensees who may give advice, opinions, and negotiate for their respective clients.

Familial-Status Exemption

Housing that qualifies under the 55-and-older (or 62-and-older) exemption may lawfully refuse to rent or sell to families with children.

In-House Sale

A real estate transaction in which the listing brokerage also represents the buyer, resulting in both sides of the deal being handled within one firm.

Earnest Money as Liquidated Damages

When a buyer defaults, a seller may accept the forfeited earnest money as the sole, pre-agreed compensation for the breach.

TRELA Violations (Examples)

Activities such as offering property by lottery, guaranteeing a profit, or placing a sign without written consent can lead to license suspension or revocation.

Texas Homestead Protection

Automatic legal protection of a primary residence from certain creditors; it cannot be waived by contract, though statutory limits apply.

Integrity and Prudence

The ethical duty requiring agents to act honestly and carefully to avoid misrepresentation in all real estate dealings.

Littoral Rights

Rights of landowners whose property borders non-flowing bodies of water (lakes, seas, oceans) to reasonable use and enjoyment of the shore and water.

Easement by Prescription

An easement created through continuous, open, notorious, and adverse use of another’s land for the statutory period without the owner’s permission.

Separate Property

Property owned before marriage or acquired by inheritance or gift during marriage; remains the individual spouse’s property, not community.

Assignment of Contract

A transfer of contractual rights and duties to an assignee, who becomes primarily liable; the assignor remains secondarily liable unless released.

Easement Termination by Merger

An easement ends when the dominant and servient estates come under the same ownership, combining the properties into one.

Fair Housing Violation Penalties

Civil remedies such as economic and non-economic damages, injunctions, attorney’s fees, and civil penalties; no criminal penalties are imposed by the court.

Designated Broker for a Corporation/LLC

The officer or manager designated by a real estate corporation or LLC who must hold an active Texas broker license.

Net Listing

A listing agreement where the broker’s commission equals any sale price amount that exceeds the seller’s specified minimum net proceeds.

Federal Fair Housing Act

Title VIII of the Civil Rights Act of 1968, the primary federal law prohibiting housing discrimination based on protected classes.

Terminating Sales-Agent Sponsorship

A broker must notify the agent in writing and immediately return the agent’s license to TREC to end sponsorship.

Fidelity (Canons of Professional Ethics, Article 1)

The principle requiring agents to place their client’s interests above all others while treating all parties fairly.

Street Address (Invalid Legal Description)

A street address alone is insufficient as a legal description in a real estate contract (though it may be acceptable in some leases).

Plat Approval and Filing

A subdivision plat becomes effective only after it is approved by local authorities and duly recorded.

Inactive Broker Renewal Obligation

An inactive Texas broker must still pay periodic license-renewal fees to keep the license valid.

Tenancy in Common

The most common form of co-ownership in which each owner holds an undivided, inheritable interest that may be unequal.

Fidelity

The primary duty of the real estate agent is to represent the interests of his or her client.

Integrity

Avoid misrepresentation

Blockbusting / Panic peddling

Any attempt to induce panic selling in a neighborhood for financial gain

Stigmatized

A property where there has been a murder or alleged haunting is called stigmatized

Civil rights act of 1968

Prohibits discrimination against race religion and national origin