1
What's the maximum urban homestead size in Texas?
10 acres
title report
A report issued after a title search by a title insurance company, listing all defects and encumbrances of record
title examination
A search of the public record to determine the quality of a title to real property.
What is the difference, if any, between a TREC-approved form and a TREC-promulgated form?
An approved form is optional; a promulgated form is required.
Estate in severalty
Ownership by one person, one corporation, one partnership
Tenancy in Entirety
Special joint tenancy between marriages, neither party ca sell interest without the other. They must either divorce or both agree to sell.
defeasance
The annulment or voiding of a deed or contract.
Fannie Mae
The government-sponsored enterprise responsible for guaranteeing and funding home mortgages
amendement
a written change made to the Constitution
How can an easement be terminated?
abandonment
PCB
(Polychlorinated biphenyls) are synthetic chemicals widely used from the 1930s to the 1970s in industrial products such as heat exchange fluids, paints, plastics, and lubricants
addendum
(n.) a thing that is added; an appendix or addition to a book or written document
surface rights
Ownership rights in a parcel of real estate that are limited to the surface of the property and do not include the air above it (air rights) or the minerals below the surface (subsurface rights).
what kind of estate is a homesteaed
a legal life estate
What is the buyer of a condominium required to pay that a co-op buyer isn't?
mortgage recording tax
conventional loans
real estate loans that are not insured by the FHA or guaranteed by the VA
Mindy and Seth have had to terminate their TREC One to Four Family Residential Contract (Resale). Both parties signed the request to release the earnest money, but only Mindy submitted a written demand for the funds. How many days does Seth have to submit a written objection after receiving notice from the escrow agent of the demand?
15 days
deed of trust
A deed to real property, which serves the same purpose as a mortgage, involving three parties instead of two. The third party holds naked title for the benefit of the lender. Beneficiary (Lender), Trustor (Borrower), Trustee (Third Party)
joint tenancy
A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition.
ginnie mae
A government agency that plays an important role in the secondary mortgage market it guarantees mortgage backed securities using FHA insured and VA guaranteed loans as collateral.
freddie mac
A government supervised enterprise established to purchase primarily conventional mortgage loans in the secondary mortgage market.
Gross Lease (commercial)
A lease of property according to which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. Most residential leases are gross leases.
Net lease (commercial)
A lease whereby the tenant pays rent and utilities plus either property taxes or hazard insurance or maintenance of the unit.
a lis pendens
A pending notice of a lawsuit giving notice of a possible claim to the property
kick-out clause
Allows the seller to keep the property on the market with full disclosure in the multiple listing service that there is a contract in place, but other offers are welcome. If a new offer is made, there is a specified time (usually no more than 24 to 72 hours) for the original buyers to remove the home sale contingency and proceed with the contract.
Fee Simple Subject to Condition Subsequent
An estate carrying the limitation that, if it is no longer used for the purpose conveyed, it reverts to the original grantor by the right of reentry.
fee simple defeasible
An estate which may be lost on the occurrence or nonoccurrence of a specified event.
tenancy at will
An occupation of space for an indefinite period which can be terminated by either the lessor or lessee at any time.
riparian rights
An owner's rights in land that borders on or includes a stream, river, or lake. These rights include access to and use of the water.
Fee Simple Determinable
An ownership in which the estate is held " so long as" or "during the period" a condition or limitation is maintained.
volatile organic compounds (VOC)
Chemical-emitting gases or solids from interior products and materials that can cause short-term or long-term adverse health effects.
tenancy in common
Co-ownership of property in which each party owns an undivided interest that passes to his or her heirs at death.
a like-kind exchange
Exchanging one fixed asset for another fixed asset that has similar functionality. tax-deferred exchange
estate for years
Lease for a definite period of time
government loans
Mortgages insured or guaranteed by the U.S. Government
Per the TREC One to Four Family Residential Contract (Resale), when is the seller required to give the buyer possession of the property?
On the date indicated in the contract
fee simple interest
One who has ownership rights of real estate that could continue forever and which provide that no other person can claim to be the owner of or have any ownership
sub surface rights
Rights to use the space below ground level and to extract the natural resources lying below the earth's surface.
reversionary rights
The lessor (landlord) grants the right of possession to the lessee (tenant) but retains the right to retake possession after the lease's term has expired
timeshare use
This type of timeshare ownership does not convey ownership, just the right to occupy the property for the period of time set forth in the timeshare contract.
hypothecation
To pledge property as security for an obligation or loan without giving up possession of it.
prepayment penalty
a monetary penalty imposed on a borrower for paying off a loan before its intended time
Jacqueline found a ready, willing, and able buyer for her client's condo, with a sales price of $20,000 more than the asking price. However, the appraisal came in just under the asking price. Which number will the lender use to calculate the loan-to-value ratio?
a smaller number
promissory note
a written contract with a promise to pay a supplier a specific sum of money at a definite time A promissory note is a negotiable instrument and can be transferred to a secondary holder who has the right to enforce the note's terms.
Because of where his property is located, Weston is required to present any prospective buyers with a notice as to the legal and economic risks of purchasing coastal property that is near a beach. Which TREC addendum is Weston required to include as part of the sales contract?
addendum for property located seaward of the gulf intracoastal waterway
operation of law
an individual acquires rights or liabilities automatically due to law and not through an agreement or act of their own.
With a deed of trust, who or what has equitable title to the property?
borrower
How does a lender in the primary mortgage market earn money when a loan is originated?
by charging loan origination fees
what is an example of a primary mortgage market
citibank commercial lenders operate in primary mortgage market
The assessed value of a condominium is usually higher than a similar ______ because of outright ownership.
cooperative
With cooperatives, the resident's share of mortgage interest and real estate taxes is ______.
deductible on personal income tax returns
Robin has obtained a loan to purchase a home. Which of the following serves as SECURITY for that loan?
deed of trust
Which of the following properties requires a lead paint disclosure?
duplex built in 1959
Which government power allows it to convey title to a property involuntarily, while paying the property owner?
eminent domain
Nina signed a six-month lease with her landlord. When her six months were up, she moved out without being required to give notice, and the landlord rented to a new tenant. What type of tenancy did Nina have?
estate for years
what are some of the sellers fees
existing liens, preparation of the deed, and half of the escrow fee
due process
fair treatment through the normal judicial system, especially as a citizen's entitlement.
If Acme Bank, a primary lender, wants to sell its loans on the secondary market, it would be easier for it to do so if its loans meet ______.
fannie mae and freddie mac guidelines
A buyer and seller sign a sales contract in Texas on Feb. 15. It provides a 7-day deadline for the buyer to deposit earnest money. The buyer is in default if they wait until ________ to deposit the earnest money.
feb 23
Which type of an estate doesn't end automatically when the stated event or condition occurs?
fee simple subject to a condition subsequent
pur autre vie
for the life of another
refliction
gradual receding of water, which uncovers new land
When Will was found guilty of violating the Deceptive Trade Practices Act, the actual damages to his client were $7,000. But the court required Will to pay $21,000. Why might this be?
it was an intentional violation
Siblings Julia and Gene are co-owners of a small retail building in which a tanning salon is currently operating. Gene really wants to leave his ownership interest to his son when he dies, but the way in which they own the property doesn't allow him to do so. What type of ownership do they have?
joint tenancy
A contract is executed in Texas on June 1. What is the effective date on which all contingency deadlines will be based?
june 2
You're representing a buyer of a condo. You ask for CC&Rs and __________.
minutes of the last several association meetings
proration
need to be calculated as of the closing date and are apportioned between the parties
What type of loan fails to meet the criteria set forth by Fannie Mae and Freddie Mac?
non-conforming loan
Stacy and her husband, Blake, have a special lease agreement in which they, as the land owners, receive a cash payment for executing the lease, with more to come if the lessee's drilling efforts are successful. What type of commercial lease do Stacy and Blake have with the lessee?
oil and gas
Which of the following statements about counter-offers is true?
once a counter-offer is made, the prior offer is cancelled
In Texas, the effective date of a contract, on which all deadlines are based is _______ the executed date of the contract.
one day after
In what way is a townhome similar to a single-family detached home?
ownership includes both the structure and the land
Lester is interested in a two-bedroom unit in a cooperative. A residence in a cooperative, unlike a condominium, is legally considered ______.
personal propety
Which phase of the environmental site assessment involves addressing any on-going or potential issues?
phase IV: management
Which government power is used to do what's right for the public good where the owner may or may not be compensated?
police power
Which part of a loan is the agreement to REPAY the debt?
promissory note
The Texas Real Estate Commission is the only entity that can ______ contract forms, making their use mandatory by real estate licensees in Texas.
promulgate
Which section of the TREC One to Four Family Residential Contract (Resale) identifies charges that must be adjusted to the day of closing?
proration
homestead law
protect homeowners from losing their homes to general creditors
In which market do lenders purchase packaged loans?
secondary mortgage market
Harrison is acting to assist both the seller and the buyer in a single sales transaction. Which of the following representation options will he check as part of the Broker Information section in TREC's One To Four Family Residential Contract (Resale) ?
seller and buyer as an intermediary
arbitration
settling a dispute by agreeing to accept the decision of an impartial outsider
During the earnest money demand process, how many days after receiving a request to send a release of earnest money notice to the escrow agent do the parties to the transaction have to respond?
seven days
How many members does TREC appoint to the Broker-Lawyer Committee?
six
Which of the following statements is true regarding the financing of a cooperative purchase?
some lenders refuse to offer loans for cooperative purchases
Ann Marie is a tenant with a triple net lease. Per her lease, she pays for which of the following expenses related to the property?
taxes, maintenance, insurance
What is the name of a term which explains the complexity of property ownership rights and how rights for a single property can be "owned" by multiple parties at the same time?
the bundle of rights
Per TREC's One to Four Family Residential Contract (Resale), who is responsible for completing the contract and earnest money receipt?
the escrow agent
automatic liability
the law says you are automatically liable if you do certain things
Tenant A is leasing commercial property from the landlord. Tenant A then sublets to Tenant B. Which of the following parties have a sandwich lease?
the original tenant and the landlord
litigation
the process of taking legal action
The secondary mortgage market serves a very important role in real estate finance. Which of these statements best describes that role?
the secondary market purchases loans from primary lenders and helps keep credit available to loan originators
TREC is made up of nine members, all of whom are appointed by the governor, with the advice, consent, and approval of ______.
the senate
triple net lease
the tenant pays the real estate taxes, maintenance, and insurance
Which of the following statements about limited liability companies (LLCs) and limited liability partnerships (LLPs) is true?
they are taxed as partnership
Which of the following addenda is required as part of the TREC residential One to Four Family (resale) contract when the buyer needs to obtain a mortgage loan from a lender to purchase the property?
third party financing addendum
Sheila owns a timeshare that gives her ownership in the property for a certain number of weeks per year in perpetuity. What type of timeshare is this?
timeshare estate
default
to fail to act
lead can be found in paint and...
water pipes
