Texas Real Estate Chapter 18 Key Terms

Apartment Locators (How are they compensated?)

Apartment locators help clients find rental units and are paid by the property owner or management company, not the tenant. They usually earn a flat fee or percentage of one month's rent after a lease is signed.

Auctioneering

Selling property to the highest bidder in a public sale. A real estate license and an auctioneer's license are both required when auctioning real estate in Texas.

Commercial Real Estate

Property used for business or investment purposes, such as offices, retail centers, or warehouses. Transactions often involve complex leases, larger sums, and longer sale cycles.

Commercial Broker

A licensed professional who specializes in commercial property sales and leases. Must have strong math and analytical skills to calculate commissions, net income, ROI, and deal terms accurately.

License is Required When Transacting Real Estate on Behalf of Others

Anyone who sells, leases, lists, or negotiates real estate transactions for someone else and for compensation must hold a valid Texas real estate license under TRELA.

MLS - Multiple Listing Service

A shared database of property listings used by brokers to advertise homes and cooperate on sales. It increases exposure and allows brokers to share commissions on co-brokered deals.

Property Managers

Licensed professionals hired by owners to maintain and operate rental properties. They handle rent collection, repairs, tenant relations, and budgeting, often earning a management fee or percentage of rent.

Property Disclosure

Sellers must disclose known material defects or property issues that could affect value or safety. Failure to disclose can lead to lawsuits or disciplinary action by TREC.

REO (Real Estate Owned)

Property that has gone through foreclosure and is now owned by a bank or lender. REO listings are typically sold "as is" and handled by specialized real estate agents.

Short Sale

A sale where the lender agrees to accept less than the loan balance because the property value has dropped. The seller avoids foreclosure, but lender approval is required before closing.

Timeshares

A form of property ownership where multiple buyers share ownership or usage rights to a property (usually vacation property) for specific time periods each year. Regulated by TREC in Texas.