Principles of Real Estate 1

A sales agent or broker associate may perform duties as a real estate licensee under what circumstance?

While associated with and supervised by a broker.

What is the name of the part of the beach that is privately owned?

Dry beach.

Real estate law covers general property law, real estate license law, the law of contracts, landlord/tenant law, consumer protection, and:

The law of agency

Which entity is charged with administering the laws of TRELA?

The Texas Real Estate Commission

What is the most common homeowners policy?

The HO-B Policy

Which of the following is a right included with real property?

Exclusion

Which keyword can be used to describe real property?

Built-in. Built-in would describe real property that is permanently affixed to the property.

Once signed, the listing agreement is a legally binding contract between:

The listing broker and the seller.

What is considered a passing grade for the state licensing exam for a real estate professional who is seeking a brokers license?

A 75% or greater.

Land, plus all things permanently attached to it naturally or artificially is:

Real estate

The exemption to the Fair Housing Act that would normally apply that is moot when a real estate agent represents :

Owner occupied buildings with no more than four units.

Sally Mae is a real estate licensee who would like to become a realtor, what must she do?

Become a member of the NAR

What agency enforces fair housing laws?

FHEO. The Fair Housing and Equal Opportunity administers and enforces fair housing laws.

Which type of anti-trust violation involves two or more businesses conspiring against another?

Group boycotting

This type of housing is not considered real property:

Cooperative

When a fair housing complaint is received, how long does TWCCRD have to begin investigating and attempt to resolve the issue?

100 days. Once the complaint is received the TWCCRD has 100 days.

What does it mean when the buyer signs and dates the sellers disclosure notice?

The buyer is acknowledging receipt of the disclosure.

When a business is organized as a partnership,

General partners are jointly and severally responsible for all business debts.

The payment of commission to a non-licensed individual for brokerage services is:

Illegally only if the person is not exempt from licensing law. Individuals who are exempt from licensing law (Such as attorneys) may receive commissions for providing brokerage services.

What type of a lien is a specific lien?

Real property tax lien

In terms of encumbrances, what is a license?

Permission without possession, interest or ownership.

Property ownership for an indeterminable length of time is an example of what form of estate?

Freehold Estate

What is someone who evaluates the structures, systems and site conditions of homes for potential buyers?

Home inspector

Under TRELA, it is considered a misdemeanor for an individual who does not have a real estate license to perform activities that require a real estate license. Each violation is punishable with a fine of up to a maximum of:

$5000.00

Which of the following is a single-family home with attached walls where the owner typically own the land on which the home sits?

A townhome

Your client is looking to buy her first home, she decides to make an offer on a bungalo that belongs to another agents client. Your clients offer must be?

In Writing

James creates a trust to hold a piece of real estate he owns, he directs a corporate fiduciary to hold title to the real estate and provides instructions for the management, control, and disposition of the real estate upon his death. Given that the trust only holds real estate, James likely set up a:

Testamentary

Your client, who rents, tells you she doesnt want to buy because of having to pay property taxes, what might be your response?

You are paying property taxes through your rent, at least as a homeowner you can deduct them from your taxes.

Violators of the Sherman Antitrust Act may be subject to fines. For what amount may corporations and individuals be liable?

Corporations 100 Million, individuals 1 Million

When a borrower first obtains a mortgage, which portion of PITI receives most of the mortgage payment?

Interest

The community reinvestment act (CRA) was introduced to combat discriminatory lending practices against individuals and business in what type of neighborhoods?

Low to moderate income neighborhoods

What is an "In Rem" Lien?

A lien against the property and not its owner

Betsy is making a reservation for her licensing exam by phone, she must have all of the following: legal name and address, email address and phone number, preferred testing date and site, and one what other additional piece of information?

Her TREC ID number

Under what circumstances may a seller legally terminate an exclusive right to sell listing before its listing term has passed?

If the broker agrees in writing to the termination

An exemption to the Texas Homestead Protections:

Purchase money

What government power may a lien be placed against a property giving the government claim to the property?

Taxation

How many forms of ID are needed on the date of exam:

Two forms of ID

How many CE Hours are needed for an agent to renew their license?

18

A married couple is selling their home which is owned as community property. For the deed conveying the property to be legal who must sign it?

Both parties must sign

In order to be enforceable, what does the statute of frauds require a real estate contract to be?

In Writing

What duties will survive agency termination?

Confidentiality and Accountability

Posing a real estate agent when you are not is known as what under TRELA?

Misrepresentation

What is datum

A data line used as a reference for measuring elevation

What occurs when a property owner dies without having a will in place and no heirs or creditors can be found?

Escheat

A certificate of registration is required in the state of Texas if an individual wants to buy, sell or lease or transfer what for a fee?

Easement

How many members are there are on the education standards advisory committee?

Twelve

Assume a tenant is entering into an agreement with an owner of an upscale apartment complex to rent an apartment for twelve months, What type of contract would be used to identify the rental arrangement terms?

Lease Agreement

Whats a benchmark?

A permanent reference point for marking datums

Under subchapter E of TRELA the commission has a responsibility to make information available about the commission and its duties in the interest in:

The general public

In a real estate transactions who may a licensee represent?

A client

What type of real estate market occurs when both supply and demand are low?

Stagnant Market

Assume you are a licensee in Texas who has recently entered into an agreement with a seller to represent their interest in a real estate transaction at what point are you required to make your agency disclosure to a potential buyer

At the time of your substantive dialog

Of the nine total members of TREC, how many are members of the public?

Three

Cultivated crops are called?

Emblements and are considered personal property.

Severance occurs when an item that was real property becomes personal property by?

Detaching it from land

Ad valorem taxes are calculated based on?

The appraised value of the property being taxed.

To calculate property taxes, multiply tax rate by what?

Assessed value

Annexation occurs when:

Personal property is attached to real property, making it a fixture

A lien may be voluntary or:

involuntary

Property tax liens take priority over other liens; if homeowners dont pay their property taxes what can happen?

They can lose their property

A grant of land from an owner to a school "on the condition that" the property be used for educational purposes is:

Fee simple subject to a condition subsequent.

Pur autre vie life estates are what type of life estates:

For the life of another

A homestead may suffered forced sale for payment of mortgages where the loan proceeds were used to do which of the following:

Purchase the residence, refinance the residence, improve the residence

An encroachment of long standing may result in an easement by:

Prescription

What is the same as sole ownership?

Ownership in severalty

Under community property laws, property owned before marriage is considered:

Separate property

A limited partnership includes:

both general and limited partners

In a cooperative, any taxes, maintenance expenses, and mortgage liens are placed against the

Cooperative

Which shows only the location and dimensions of a parcel of land

Survey sketch

real estate must be appraised for tax purposes at LEAST every how many years in Texas?

Three

A mortgage lien is what kind of lien?

Specific, Voluntary

A federal judgement lien is effective for how many years?

20

In what kind of contract do the parties show their intentions by words?

Express

during the time of a real estate sales contract and the actual passing of the title, the contract is considered

Executory contract

The law of Texas allowing a specific time limit during which parties to a contract may bring legal suit to enforce their rights is:

Statute of limitations

Notifications between the parties after the effective date of the contract

must be in writing

For a consideration of a specified amount of money, a present owner agrees to give a prospective purchaser an irrevocable right to buy his real estate at a certain price withing a limited period of time. This is called an

Option contract

A deed conveys ownership to the grantee so longs as the existing building is not torn down. What type of estate did this deed create for the grantee:

A determinable fee estate

When subsurface rights are sold separately from surface rights, the

the mineral interest is considered dominant over the surface interest

A manufactured home is generally considered

personal property

The economic characteristic that refers to peoples choices and preferences for a given area is

Situs

Which term refers to the study and description of a population

Demographics

An owner of a cooperative unit owns

Shares of stock in the cooperative

A subdivision that consists of common property and improvements owned and maintained by a owners association for the benefit and use of the individual housing units within the project, with automatic, nonseverable membership for each unit owner and mandatory assessments to maintain the common area, is a

Planned unit development

Homes that are constructed with large factory-built wall and roof components are known as

Modular homes

The profits realized from the sale or exchange of real property are

Capital gains

Which type of homeowners insurance policy provides the MOST extensive coverage:

HO-C

Under the Texas Real Estate License Act, a broker who represents a party in real estate transaction is:

the party's agent

The relationship between a broker and the broker's salesperson (as an agent) is usually that of:

general agency relationship

An agent's responsibility is:

To the principal , the customers, and third parties

A broker who intends to receive a commission from someone other than the broker's client must first obtain the consent of

the client

The laws that prohibit monopolies and contracts, combinations, and conspiracies that unreasonably restrain trade are known as:

Anti-trust laws

The fair housing act provides for certain exemptions, but no exemptions apply

when a real estate licensee is involved in a transaction

When dwellings are designed specifically for persons with a handicap,

the law does not prohibit restricting occupancy exclusively to tenants who are handicapped

The current market value of a property is $35,000. For tax purposes, it is assessed at 100 percent of the market value. What is the amount of tax due?

$1400.00

Under which type of lien can both real property and the personal property of the debtor be sold to pay the debt?

Judgement lien

Gordan has defaulted in the payment of several of his debts, and the court has ordered his property sold to satisfy them. A title search revealed several outstanding liens against the property. What has first priority in a lien?

Redeem the property within a two year time limit

The primary security for the seller under a contract for deed is

the sellers retention of legal title

When acting as an agent, a Texas real estate licensee is not permitted to

Draft a sales contract

After the buyer and seller have signed a sales contract, the seller changes his mind and defaults. The buyer sues the seller to force him to go through with the contract. This is known as a suit for

Specific performance