The true tea (copy)

Apartment Locator

A real estate license holder who locates dwelling units for prospective tenants.

Tenant

One who possesses a property under a lease without ownership.

Broker

Someone who assists in buying and selling to receive a commission.

Client

The person that an agent is representing, made official through a representation document.

Sales Agent Apprentice Education (SAE)

An educational requirement for courses in the first two years of being licensed as a real estate agent.

Consumer

A person or company that buys or leases any product or service.

Land

The surface of the earth, extending down to the center of the earth and up into space.

Real Estate

Includes the land and any natural or manmade improvements attached to it.

Real Property

Includes land and any natural or manmade improvements attached to it, plus the bundle of legal rights of ownership.

Personal Property

Items that can easily be removed from the land.

Immobility

Characteristic of land stating that land has a particular geographical location that will remain constant, barring erosion or slow geological changes.

Real Estate Broker

A person or corporation who markets to find buyers and sellers to put together in exchange for a commission.

Broker’s Price Opinion (BPO)

The process used by a hired sales agent to determine the potential selling price or estimated value of a real estate property.

Closing

The completion of a real estate transaction in which the buyer receives ownership and the seller receives the contract amount.

Comparative Market Analysis (CMA)

A report comparing the prices of sold homes that are similar to the subject property, created by a license holder to help determine market price.

Misrepresentation

A false statement (spoken or written) that is made unintentionally.

Party

A person involved in a contract for sale, lease, or agency.

Commingle

An illegal act of a license holder who mixes their own money with a client’s or customer’s money.

Promulgated Forms

Forms prepared and authorized by the Texas Real Estate Commission that must be used by real estate license holders.

Approved Forms

Forms prepared and authorized by the Texas Real Estate Commission that can be used by real estate license holders.

Cloud on the Title

An encumbrance that keeps the title to the property from transferring easily.

Puffing

The exaggeration of opinions about real estate.

Nolo Contendere

A plea in a criminal court in which the defendant accepts the punishment without admitting guilt.

Allodial System

Ownership of land in which the land is owned free and clear; the opposite of the feudal system.

Feudal System

A form of ownership from England’s past in which royalty owned the land.

Improvement

Any permanent man-made addition to land.

Subsurface Rights

Ownership of the minerals, gas, or oil beneath the surface of a piece of real estate.

Surface Rights

Ownership of the land in a parcel of real estate but limited only to the plane.

Air Rights

The right to use the airspace above the surface of land.

Water Rights

The right to enjoy the water that borders a property.

Littoral Rights

Rights that govern lakefront or oceanfront property.

Riparian Rights

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

Fixture

An object that was once personal property but has now been firmly attached to the land.

Trade Fixture

Personal property attached to real property that is owned by and needed for a tenant’s business.

Adaptation

The use and modification of a particular item for a specific use in a property.

Fructus Naturales

Trees, bushes, grass, and uncultivated plants, usually considered to be real property.

Fructus Industriales

Annually cultivated crops generally considered to be personal property; also known as emblements.

Cooperative

A residential building in which the title is held by a corporation, and the residents are stockholders in the corporation.

Planned Unit Development (PUD)

A subdivision or development that includes single-family dwellings along with common elements such as parks and pools.

Timeshare

Residence with multiple owners who share the right to possession for a specific period of time.

Ad Valorem Tax

A tax calculated according to the assessed value of real estate.

Homestead Tax Exemption

Reduces the amount of ad valorem taxes assessed on a homestead.

Prorate

The dividing of expenses for items like taxes, interest, and rent at the closing between the seller and the buyer.

Amortization

The process of paying off a debt/mortgage in regular installments based on a fixed payment schedule.

CLUE Reports

Comprehensive Loss Underwriting Exchange, a database used by insurance agencies that contains information on claims made in the past five years.

PITI

Stands for Principal, Interest, Taxes, and Insurance, which are the components of most mortgage payments.

Agency

The relationship between a client and a broker.

Express Agency

Agency created by a specific agreement.

Implied Agency

Created when an agent is given permission to act on behalf of a client through conduct or communication.

Agency by Ratification

Created when a license holder acts on behalf of but without prior authorization of a principal.

Intermediary Broker

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

Appointed License Holder

A sales agent license holder designated to work with a client during an intermediary transaction.

Special Agency

The relationship between a broker and a principal wherein the broker has restricted authority to act on behalf of the principal.

Seller’s Disclosure Notice

A document filled out by the seller concerning any defects in the improvements on the property.

Subagent

A license holder from one office who represents the seller through cooperation with the listing broker of another company.

Material Fact

Any fact that is significant or essential to the transaction.

Fiduciary Duties

A responsibility to act in the best interest of your client.

Fraud

A misstatement made intentionally to deceive.

Civil Rights Act of 1866

The first law that began to promise equal rights for all citizens regardless of race or color.

Fair Housing Act

A federal law that prohibits discrimination in housing based upon race, color, religion, or national origin.

Disability

A physical or mental impairment that limits at least one major activity in someone’s life.

Steering

An illegal act of channeling buyers or tenants to certain areas.

American with Disabilities Act

A federal law enacted to remove barriers for individuals with disabilities.

Equal Opportunity in Housing

The concept that everyone will have equal access to housing with no discriminatory actions taking place.

Texas Department of Housing and Community Affairs

A department that administers assigned programs on Texas housing.

Reasonable Accommodation

A change in rules, policies, or practices that may be necessary to afford a person with a disability an equal opportunity to use or enjoy a dwelling.

Protected Classes

Groups that are illegal to discriminate against, as defined by the Fair Housing Act.

Housing and Community Development Act

A 1988 amendment to the Fair Housing Act that added familial status and disability to the list of protected classes.

Familial Status

Protected class that applies to any family with at least one person under 18 years of age.

Blockbusting

The illegal practice of causing owners to sell their homes by creating fear that minorities are moving into the area.

Equal Credit Opportunity Act (ECOA)

Law prohibiting credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or use of public assistance.

Community Reinvestment Act

Helps commercial banks and savings associations meet the needs of borrowers in all segments of their communities.

Redlining

The illegal act of a lender denying mortgages in certain areas of town.

Home Mortgage Disclosure

Federal act that requires lenders to disclose specific lending information.

REALTOR®

A registered trademark designed for the sole use of identifying the members of a local board affiliated with the National Association of REALTORS®.

Code of Ethics

A document created by the National Association of REALTORS® that their members pledge to abide by.

Texas Real Estate License Act (TRELA)

A law that governs the licensing, education, and activities of real estate license holders.

Texas Real Estate Commission (TREC)

A group of nine people appointed by the governor to set policy and rules from the real estate license act.

Attorney

A person who is licensed to give legal advice.

Real Estate Center

Located at Texas A&M University to provide the results of research and education to license holders.

Promulgated Contracts

Contracts prepared and authorized by the Texas Real Estate Commission that must be used by real estate license holders.

Texas Real Estate Broker-Lawyer Committee

A committee that creates and corrects contract forms to be used by Texas real estate license holders.

Errors and Omissions Insurance

Insurance that protects against mistakes a license holder might make in real estate transactions.

Abstract of Title

An abbreviated history of a property, including info on any transfers, grants, wills, conveyances, liens, and encumbrances.