335 real estate law

Capital gains tax benefits include up to $___ exclusion of profit on the sale of a home owned an occupied as a principal residence for at least two of the five years before the sale

$500,000

First time homebuyers are allowed penalty free withdraws up to $___from an IRA

10,000

Under The Texas mortgage credit certificate MCC program eligible first time home buyers may claim a federal tax credit for up to___percent of annual mortgage interest paid

40

With the passage of the taxpayer relief act of 1997, single home owners are able to exclude up to $___of capital gains realized on the sale or exchange of a principal residence

$250,000

The exclusion is allowed each time a Home owner sells or exchanges a principal residence but generally no more frequently than once every___years

Two

Which age group has the highest homeownership rate nationwide

70 to 74-year-olds with 82.5%.

Which of the following statements is true

The Texas deceptive trade practices act is the codification of the common law doctrine of caveat emptor

The DTPA provides for automatic traveling of awards for actual damages

A threshold question under the DTPA is whether an individual seeking remedies under the act as a consumer

A licensee is exempt from the DTPA lawsuits because the licensee is rendering a professional service

A threshold question is whether an individual is seeking remedies under the act as a consumer

In order to recover exemplary damages, the plaintiff must prove that the defendant acted with

Actual awareness of the false nature of the representation or promise

How much in personal property Maia Texas family exempt

$100,000 in personal property, exclusive of liens, security interest, or other charges income bring the property

Which of the following entities is not a consumer under the DTPA

A person buying a toaster

A corporate licensee with a net worth of 25 million that owns and operates a best realty franchise

A billionaire purchasing a 35 million estate as a primary residence

Homeowners acting as their own contractor in order to build a $550,000 residence

A corporate licensee with the net worth of 25 million that owns and operates a best realty franchise is not a consumer under the DTPA, section 17.46B of the Texas business in commerce

If a plaintive can prove that a third-party had actual awareness of the falsity of a representation or promise made by another person, that the third-party failed to disclose the falsity of the representation or promise to the defrauded property, and the third-party benefited from the false representation or promise, the plaintive me recover from the third-party

Exemplary damages only

What does the caveat emptor doctrine mean for real estate buyers

At common law, real estate transactions were governed by the doctrine of caveat exempt or a Latin term for let the buyer beware. Essentially the doctrine meant that a buyer could not bring a lawsuit to recover damages for property defects or misrepresentation unless those defects were latent, hidden, and within the knowledge of the seller

Texas business in commerce code is commonly known as

The laundry list

Chris doesn't have much money and cannot hire other experts like a lawyer so he's asking his agent Linda lots of questions about the legal and tax implications of the sale. She helps him as best as she can without veering into unauthorized practice of law. What forms for Linda using this transaction

TREC forms. Section 537.118 requires a licensee to use only those forms promulgated by Texas real estate commission when negotiating contracts binding the sale, exchange, option, lease or rental of any interest in real estate property

What should agent Linda do if her client Chris asked her to draft a contract to his specifications

Tell him that she cannot do that and that he should hire a attorney

Under which circumstances should an agent not use the truck sales contract form

If her client has a contract drafted by an attorney.

What me Linda add to promulgated contract forms

Factual statements and business details

when filling out promulgated forms a licensee may only fill in the blanks provided in the contract, and may not add or strike matter from such form, except that license he shall add factual statements and business details designed by the principles and shell strike only such matters as is designed by the principles and as it is necessary to conform the instrument to the intent of the parties

When Melinda add factual statements or business details to promulgated earnest money contract

When there is no promulgated forms for that use.

A license he may not add to a promulgated earnest money contract form factual statements or business details for with a contract addendum, lease or other form has been promulgated by the commission for mandatory us

Express

A contract in which the parties explicitly agree

In the typical agency relationships, a listing agreement is an expressed contract between the seller and the broker and a buyer representation agreement is express contract between the buyer and the broker

Implied

A conduct in which the parties agreement is demonstrated by there ask and conduct

Bilateral

a contract with two promises

Executed

A contract that is fully performed

Once the closing is done and funded the real estate sales contract is an executed agreement. The purchase price is paid, the deed is delivered, and the purchaser has possession of the property

Executory

A contract that is partially performed. And executory contract exist when something remains to be done by one or both parties, that is, the agreement is partially performed

What are the five essential elements for valid and enforceable contract in Texas

Consideration offer an acceptance competent parties legality of object agreement in writing and signed nice

Valid contract contains all of the following components except

Adherence to the statute of limitations

Consideration

Lawful objective

Mutual assent

Valid contract contains consideration lawful objective and mutual assent

Which contract can be terminated or rescinded by an innocent party

Voidable contract can be terminated where is the dead by the innocent party

Bilateral contract create___and___obligations

Mutual, reciprocal

What is an executory contract

A contract that has yet to be fully executed

What is the statute of limitations in Texas for collecting a return check

Four years

Promulgated resale certificate

Provides information about the property and the financial situation, bylaws, and the rules of the HOA. The resale certificate and the subdivision information are created to be completed by the homeowners association involved in the sale. The resale certificate should be carefully reviewed as it is a snapshot of the financial situation of the HOA. The purchaser should review the bylaws of the HOA to determine the rules for the subdivision.

Consumer information form 1-1

Posted in each real estate office contains information about TREC recovery funds and how to contact TREC

Short sale addendum

Describes net proceeds and gives the seller an out if the seller won't except the net proceeds as full payment

Addendum for coastal area

Used with contracts on properties that share a boundary with the submerge lands of the state. The addendum for coastal area property is used with contracts on properties that share a boundary with the submerge lands of the state. The boundary may change because of erosion. A survey is the only way to establish the boundary.

Amendment

Used to change the terms after the parties have fully signed and excepted a contract. The promulgated TREC amendment is one for the use of the buyers and sellers after they have fully signed and excepted a contract and then later discover a change that needs to be made to one of the terms, it could be the closing date, the price or some repair the seller agreed to

What is the statute of limitations to take legal action against another individual in order to recover any losses and or damages for written contracts in Texas

4 years

According to the Texas Association of realtors listing agreement which of the following is not included in the accessories included with property

Matching bedding to the draperies

Draperies and rods

Fireplace screens

Blinds

Paragraph to see, matching bedding is not included in the accessories paragraph

According to the TAR listing agreement, a broker may disclose which of the following

Information obtained in confidence from the seller

Sellers motivation to sell without sellers permission

Sellers are contemplating divorce without the sellers permission

That the seller has a family member in rehab without the sellers permission

Information obtained in confidence from the seller

TAR listing agreements, paragraph 10, 10 confidential information: during this listing or after it ends, broker may not knowingly disclose information obtained in confidence from seller except as authorized by seller or required by law

According to TREC resale residential agreement, which party will be responsible for the expense of providing legible copies of any restrictive covenants and documents

Buyers expense

TREC residential resale agreement, paragraph 6B, at the buyers expense, legible copies of restrictive covenants and documents evidencing exceptions in the commitment, exception documents other than standard printed exceptions

According to the Texas Association of realtors listing agreement, which of the following is not in the improvements included with the property

Shutters

Flatscreen televisions

Television antennas

Mounts and brackets for televisions

Flatscreen televisions are not included in this paragraph, paragraph 2b

According to the TAR listing agreement, the seller promises all of the following except

Cooperate with the broker who facilitated the sale

Agree to the use of the title company required by the broker

Not rent or lease the property during the listing without the brokers consent

Complete any disclosure notice is required by law

Agree to the title company required by the broker.

TR listing agreement paragraph 13 agreeing to title company is not included here

Sellers additional promises: seller agrees to:

a cooperate with the broker facilitating the showing, marketing in, sale of the property.

B. not rent or lease the property during the listing with other brokers prior written approval.

C. not negotiate with any prospective buyer who may contact the seller directly, but refer all prospective buyers to the broker.

D. not enter into a listing agreement with another broker for the sale, exchange, or lease of the property to become effective during the listing.

E maintain any pool and record all required enclosures in compliance with applicable laws and ordinances.

F provide broker with copies of any leases or rental agreements pertaining to the property and advise the broker of tenants moving in or out of the property.

G completely complete any disclosure or notice is required by TREC or by law or

According to the TREC residential SELLER agreement, if the commitment an exception documents are not delivered to the buyer within the time specified in the agreement, the time for delivery will be extended by which of the following?

10 days

21 days

15 days or three days before our closing date, which ever is earlier

30 days

TREC residential resale agreement, paragraph 6B, it's a commitment an exception documents are not delivered to the buyer within a specified time, the time for delivery will be automatically extended up to 15 days or three days before the closing day, which ever is earlier.

According to TAR listing agreement, the seller agrees to pay which of the following closing costs

Paragraph three of the tar listing agreement: listing price: seller instructs broker to market the property at the following price: $listing price. Seller agrees to sell the property for the listing price or any other price acceptable to the seller. Seller will pay all typical closing costs charge to sellers of residential real estate in Texas, sellers typical closing costs are those set forth in the residential contract forms promulgated by the Texas real estate commission.

According to TAR listing agreement if the property becomes vacant during the listing, the seller must do what?

The seller must notify his, her casualty insurance company and request a quote vacancy". TAR listing agreement paragraph 14 a colon a dot if the property is or becomes vacant during this listing, seller must notify sellers casualty insurance company and request a vacancy clause to cover the property. Broker is not responsible for the security of the property nor for inspecting the property on any periodic basis

According to the TREC residential resale property, the broker is advises The buyer to what regarding the abstract of title

That buyer has the abstract examined by an attorney

TREC residential reliant reseller agreement paragraph six E1 abstract or title policy: broker advises buyer to have abstract of title covering the property examined by an attorney of the buyers a selection, or buyer should be furnished with or obtain a title policy. If the title policy is furnished, the commitment should be probably reviewed by an attorney of the buyers choice due to time limitations on the buyers rate to object

Real or personal property:

Everything on, under and above the land plus the set of owners rights associated with it

Real

Real estate is the land, including everything on it, under and above the land. Also recall that real property is the definition of real estate plus the son of owners rights associated with it

Real or personal property?

Fixtures such as elevators, central air conditioning units, and garage door openers

Real

Personal property can be turned into real estate. This is accomplished by making that property a fixture. A fixture is chattel bound to real estate and refers to an object that was one's personal property but which has now been firmly attached to the land in such a way that it becomes part of the real estate

Real or personal property

Ownership transferred by a recordable documents such as a deed or a will

Real

Ownership to a parcel of real estate is transferred by a recordable documents such as a deed or well

Real or personal property?

Ownership transferred by bill of sale.

Personal

Ownership to personal property usually transferred by bill of sale. A bill of sale is a written agreement used to sell, reassign we're transfer ones right to, or interest in personal property

Trade fixtures, such as desks, counters, display racks, and checkout stands

Personal

Trade fixtures are items that the tenant owns but has attached and some permanent way to least, especially commercial, real estate. Trade fixtures remain the tenants property when his or her lease expires. Examples of traits fixtures include desks, counters, display racks, and checkout stands.

Metes and Bounds

Sexagesimal system

Metes and bounds is a legal method for describing land that gives the exact dimensions and location of a law in reference to a man-made or possibly natural fixed monument. The Sexagesimal system is one form of units used to describe angular measurement. This is a 360° system in a circle, 60 minutes in every degree, and 60 seconds in every minute

Uses monuments. Metes and bounds is legal method for describing land that gives the exact dimensions and location of a lot in reference to a man-made or possibly natural fixed monument

Compass. Meats and bounds is a Leo method for describing land that gives the exact dimension and location of a lot in reference to a man-made or possibly natural fix monument. To understand how surveyors used degrees, minutes, and seconds to distinguish direction, and that's location just placed the measurement on a 360° circle marked with cardinal directions or a compass compass

Rectangular survey

Longitude and latitude system

Whereas the metes and bounds method of survey requires a physical monument, the rectangular survey method depends upon the longitude and latitude system of mapping

Ranges. The rectangular survey method depends upon longitude and latitude two system of mapping. A range is a column created by drawing a parallel line every 6 miles east and west of a principal meridian north to south. Ranges are numbered consecutively east and west from their perspective principal meridians

Townships. The rectangular survey method uses ranges in townships. Just as Range columns run parallel to meridians, north to south longitude lines, townships lines run parallel to base lines, thus making the township lines run east to west

Recorded plat

Lot - block - tracked

Recorded plots are probably the simplest method of land description. The recorded plot system of land description is also called the lot block tract system and the recorded map method

Parcels

To understand how they recorded plat system works, we must understand the "pieces quote that make up a plot. Specialized terminology is used to identify these pieces. "Parcels "are the individual lots that are combined to make a "block quote and blocks are combined to make a "tract quote. The tract is the totality of the property represented on the plot

How many feet are in an acre

43,560. You can remember by four great looking people driving intrastate 35 at 60 mph

How many acres are there in a square mile

640.

Establishing the unique location of a township is the most difficult part. After that, designations become a little easier. Each 36 Square mile township is divided into 36 individual square mile sections, starting in the upper right hand corner. Each square mile contains 640 acres, and every acre has 43,560 ft.²

If valuable mineral deposits are discovered a year after closing, who owns them?

Buyer. When substances are still underground, they are considered real estate. But when an owner extracts things from underground and stores them top side, the item is converted from real estate into personal property.

Who owns the river

No one. Riparian rights cover in the use of flowing water, such as rivers and streams, the pass-through or border a property. In accordance with riparian rights, a property owner does not on the water, but he or she may use the water and shares those same rates and uses with other property owners whose land also borders the water

Who owns the trees that were cut down

Sellers. Severance is the act of separating some element of the real estate from the land. For example, a tree is real estate, but if the owner cuts down the tree, literally severing it from the earth, the tree is now personal property which can be carried off.

Sellers have installed a spiral staircase that they brought back with them from Paris. Now they are selling the house. Who will on the antique spiral staircase after closing

Buyer. A fixture is a chattel down to real estate and refers to an object that was once personal property but which has now been firmly attached to the land in such a way that it becomes part of the real estate

Which items will automatically transfer to the buyer in the sale

A 10 foot tall mural And birdcage

Vegetables

The barn

The horses and chickens

The barn. Surface rights our rights and interests with respect to the surface of the earth, including natural elements and structures built on or attached to it

Joint Tenancy

When a joint tenant dies, the surviving joint tenants inherit the decreased co-owners ownership interest in the property.

In a joint tenancy, two or more individuals share ownership of the property. Under this form of co-ownership, there is a right of survivorship, when a joint tenant dies, the surviving joint tenants inherit the deceased's ownership interest in the property

Tenancy in common

Each owner has partial ownership interest and partial rights in a property

Community property

During a marriage, each party holds half of the ownership interest in the property

Property held in partnership

Two or more parties agree to combine their property and talents to create a for-profit business

What are the bundle of legal rights that come with property ownership

Possession, control, enjoyment, exclusion.

The bundle of legal rights the right to control the property within the framework of the law, the right of exclusion, to keep others from entering or occupying the property, the right of possession, the right of dispossession, to be able to sell or otherwise convey the property, and the right of enjoyment, to use the property in any legal manner.

Which term identifies an economic preference for a certain location

Status is an economic preference for a particular location and not a geographic one.

Durability or indestructibility and uniqueness or non-hegemony are physical characteristics of land

What is a physical characteristic of land

Durability or indestructibility and uniqueness or non-hegemony or physical characteristics of land

Directive zoning

Hey planning tool to encourage the use of land for his highest and best use

Variance

Permits an exception to a zoning ordinance, it is for the benefit of one parcel only.

Nonconforming use

Are use that predates the zoning ordinance or its amendments

Conditional use permit

Allow a property use only if stipulated conditions for the benefit of a neighborhood are met.

Bulk zoning

Controls density and prevents overcrowding through restrictions on setback, building height, and percentage of open areas

Which type of land-use control sets the requirements for kinds of materials, sanitary equipment, electrical wiring, and fire prevention standards

Zoning

Building codes

Deed restrictions

City planning

Building codes

Most cities and towns have enacted ordinances to specify construction standards that must be met when repairing or erecting buildings. These are called building codes, and they set the requirements for the kinds of material, sanitary equipment, electrical wiring, fire prevention standards and the like.

The indestructibility of land is referred to as its

Durability

The term "real property quote refers to both____and____.

Real estate owners and an owners bundle of rights

In which ownership system is the land owned completely, without an obligation of services or duties to another?

And allodial ownership system is one in which the land is owned completely, without obligation of services or duties to another. In contrast to feudal land tenure with obligations and duties to the owner.

Land has all of the following economic characteristics except

Situs, fixity, immobility, alteration

Immobility. The economic characteristics of land include situs, fixity, and alteration.

What to ownership rights are associated with waterfront properties

Riparian and littoral

What is most important difference between physical characteristics and economic characteristics of

Origin.

Physical characteristics occur naturally, while economic characteristics are man-made.

The investment permanence of land is referred to as

Fixity

Through what process or method may real property become personal property

Severance is a process by which real property may become personal property

What is one of the physical characteristics that make land or real estate a distinctive commodity?

Durability.

The physical characteristics that make land or real estate a distinctive commodity are in mobility, durability, and uniqueness.

Freehold or leasehold?

Full ownership rights

Freehold. With land or real estate ownership described as a freehold estate, the property owner has ownership of an undetermined or unspecified period of time with full ownership rights and the right of disposition or right to convey the interest here she owns.

Freehold or leasehold?

Evidenced by a deed

freehold estate

maybe evidence by a deed while Leasehold estate maybe evidence by Elise

Freehold or leasehold?

Only the right to possession and use of property

leasehold estate,

the tenant owns a right to possession in the use of the property. This interest is typically held for a specified or determined. Of time with no ownership rights.

Freehold or leasehold?

Evidenced by a lease

Leasehold estate

Freehold or leasehold?

Fee simple

A fee simple estate is a least limited, Most absolute interest in real property. It is of indefinite duration, freely transferable and freely inheritable.

What is the highest type of interest in real estate recognized by law

Fee simple estate. In Texas, a transfer of title or an interest in real property conveys a fee simple estate unless otherwise expressed.

Passage of title of real property to the state of Texas in absence of heirs is called

Escheat.

Under riparian rights, Bert, owner of land located along the course of a non-navigable stream

May all the land under the water to the exact center of the waterway.

Has the right to use the water for any purpose so long as he does not believe it.

Made damn the stream for irrigation purposes.

Has no water rights because the stream estate property

May owned the land under the water to the exact center of the water weigh

Which is classified as a general lien

Judgment lien.

A judgment becomes a general, involuntary, statutory lien on both real and personal property owned by the debtor, including real and personal property acquired after the judgment is recorded.

The right of a government body to take ownership of real estate for public land use is called

Eminent domain

A homeowner who is entitled by Texas law to a homestead exemption is sued by creditors, the general creditors.

Usually have no right to have the debtors home sold. In Texas, the homestead is exempt from for sale by creditors for payment of most debts .

Which lean usually is given higher priority

The annual taxes levied on real estate usually have priority over other previously recorded liens and may be enforced by the court sale of real estate free of such other liens

Randy has constructed a fence that ends 1 foot over his lot line into a Neighbors property. The fence is an example of

Encroachment. When a building, or some portion of it, or offense or a driveway illegally extends beyond the land of its owner and cover Sunland of an adjoining owner or a street or Ally, and encroachment occurs

Oh and urban Homestead is limited to a lot or lots not to exceed

10 acres. An urban Homestead, that is in a city, town, or Village, is limited to a lot or continuous lots not to exceed 10 acres.

The right of a defaulted tax pair to recover the property before its sale for under paid taxes is

Statutory right of redemption

In addition to the equitable rate of redemption, Texas law provides for a period of redemption after the tax sale during which the defaulted borrower may redeem the property by paying the amount paid at the tax sale, plus interest and other charges.

General Warranty Deed

The most possible protection against past and future claims on the title by carrying all available warrantees and covenants. In A general warranty deed, the grantor essentially guarantees that there are no limitations or encumbrances on the title that are not otherwise expressly listed in the deed

Special Warranty Deed

A limited covenant of protection against title defects. In a special warranty deed, the grantor warrants the title against defects occurring during his or her ownership.

Bargain and sale deed

Offers no warranty against defects in the title or encumbrances associated with the title

Conveys all of a grantors interest to a grantee but no grantee to defend the title against future claims.

A bargain and sale deed, also called a deal without warranty, is a deed that offers no warranty against the defects in the title or encumbrances associated with the title. Grantors declare that they have an actual interest in real property, and the bargain and sale deed conveys all of the grantors interest to a grantee.

A general warranty deed offers the grantee the most possible protection against past and future claims on the title by caring all available warrantees and covenants. A general warranty deed binds the grantor to which covenants.

Covenant against encumbrances, covenant of the seisin, covenant of quiet enjoyment, covenant for further assurance, covenant for warranty forever.