Aceable Agent - Law of Contracts

PUR AUTRE VIE

"For the life of another." A type of freehold life estate that grants someone ownership of a property for the duration of another person's life.

7 DAYS

Maximum amount of days allowed before Landlord fixes Tenant's problem that is critical (i.e. no hot water, broken window during winter)?

FEE SIMPLE ESTATE

Maximum ownership of real property, also called fee or fee simple absolute and is of indefinite duration; freely transferable and freely inheritable.

EARNEST MONEY

A buyer decides to terminate his contract within the option period. He will submit the Termination of Contract notice to the seller and will be entitled to what returned funds?

PROMISSORY ESTOPPEL

A buyer that needs to ensure they are able to sell their old home before committing to the purchase of a new home should?

PAROLE EVIDENCE RULE

A common law rule that prevents a consumer from using things outside of the written contract to make a claim.

VOIDABLE

A contract entered in by a minor is ____________?

FORBEARANCE AGREEMENT

A contract in which the lender agrees to refrain from foreclosing on the real property and also permits the borrower to postpone or reduce payments for a specified period of time, in return for which the borrower agrees to a plan that will bring him or her current on his loan obligations.

S CORP

A corporation that is taxed as though it were a partnership; income is taxed only as the personal income of its stockholders. Has less than 100 shareholders.

ACTION TO QUIET TITLE

A court action that establishes ownership when ownership cannot be traced through an unbroken chain of title.

FEE SIMPLE SUBJECT TO CONDITION SUBSEQUENT

A defeasible fee estate in which a grantor conveys a parcel of real estate subject to a condition of ownership; the grantor must go to court to assert their right to retake ownership (right of re-entry).

FEE SIMPLE DETERMINABLE ESTATE

A defeasible fee estate that will come to an end automatically and immediately upon the occurrence of the designated event, the time of such occurrence being uncertain.

ESTATE AT WILL

A lease that can be terminated by either party at will, without notice.

ESTATE FOR YEARS

A leased possession of property for a certain, specific period of time, also known as 'tenancy for years'.

SUIT FOR PARTITION

A legal action to divide the ownership interests in a property.

LIS PENDENS

A notice used to inform the public when a lawsuit is filed that affects a specific piece of real estate.

REMAINDERMAN INTEREST

A party who has been named recipient of a life estate by a grantor- the remainderman gains fee simple estate after the life estate is conveyed.

UNILATERAL CONTRACT

A promise in exchange for an act.

BILATERAL CONTRACT

A promise made in exchange for another promise.

COOPERATIVE

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

EASEMENT APPURTENANT

A right of use that continues from owner to owner that involves a relationship between two parcels of land: a dominant parcel that benefits from a servient parcel. "Runs With the Land"

INTEREST

A right or legal share in a property.

EQUITABLE INTEREST

A secondary and lesser interest in a property than the ownership interest with which it is associated.

DEED OF TRUST

A security instrument that places the deed to the property in a trust held by the lender until a mortgage is paid off, when the trustee will transfer the deed to the borrower.

TRUSTEE

A third party that holds the deed of a title on behalf of the lender (beneficiary).

TRUSTEE VS TRUSTOR

A trustee is an individual person given control of property in trust with a legal obligation to administer it solely for the purposes specified. The trustor is the borrower.

CONVENTIONAL LIFE ESTATE

A type of freehold life estate created by a deed or will that lasts for the duration of the tenants life.

LEGAL LIFE ESTATE

A type of freehold life estate created by an act of law; a Texas homestead would be one example.

LEASEHOLD ESTATE

A type of property interest allowing tenants to occupy and use property they do not own; contains a reversionary right.

TESTAMENTARY TRUST

A type of trust that is effective upon the death of a trustor.

DEFEASIBLE FEE ESTATE

Also known as Fee Simple Defeasible or Qualified Fee, is a type of freehold estate in which the person has possession of the property is only able to hold the property until an event takes place or does not occur; two common defeasible fee estates are Fee Simple Determinable and Fee Simple Subject to Condition Subsequent.

EASEMENT BY NECESSITY

An easement allowed by law as necessary for the full enjoyment of a parcel of real estate; for example, a right of ingress and egress over a grantor's land.

FREEHOLD ESTATE

An estate in land which ownership will last for an indeterminate duration.

LIFE ESTATE

An interest in real estate that will end upon the death of the life tenant or the pur autre vie life.

VALID

An offer that does not describe the method and terms of financing but does state the price is?

OWNERSHIP INTEREST

An undisputed right of an owner to their property.

ENCUMBRANCE

Any restriction, encroachment, claim, or lien on a property (such as a mortgage) that affects the value or use of the property.

NO

Are FHA and VA loans funded by the government?

TREC BOARD

Board is made up of: 6 Brokers (5 years experience prior) 3 Non-Licensed members who don't have any business interest in real estate.

TITLE THEORY STATES

Borrower conveys the legal title to the lender and the borrower retains equitable title and right of possession until payment of the loan.

LIEN THEORY STATES

Borrowers retain legal and equitable rights to their property and the lender has a lien on the property until paid off.

BILL OF SALE

Certificate of transfer of personal property.

CODICIL

Change to a will.

ACCELERATION CLAUSE

Clause in a security instrument which makes the entire loan amount due immediately upon default.

IMPLIED

Contract created by actions.

EXPRESS

Contract created by verbal or written agreement.

SUIT FOR CONDEMNATION

Court order under the rights of "Eminent Domain".

LIQUIDATED DAMAGES

Damages established by the contract in the event of default.

DTPA

Deceptive Trade Practices Act

SEVERALTY

Describes undivided ownership of an estate with an interest that is exclusive from other owners.

IDENTIFY ITS STAGE OF EXISTENCE

Describing a contract as "executory" means what?

CALENDAR

Do TREC forms give the buyers 3 BUSINESS or CALENDAR days to deliver their termination-option fee?

NO

Does the TILA-RESPA Integrated Disclosure apply to home equity lines of credit?

EASEMENT BY PRESCRIPTION

Easement by time used by non-owner.

EASEMENT IN GROSS

Easement granted to a person (i.e. electric company), not to a property.

EXEMPLARY DAMAGES

Fines that are used to punish the breaching party.

FREEHOLD LEASEHOLD EQUITABLE CONCURRENT

Four main types of estates in land?

POWER-OF-SALE CLAUSE

Gives lenders the ability to post property for foreclosure if the debtor is behind on payments.

PERIODIC ESTATE

Has a fixed lease period, meaning the lease is automatically renewed at the end of each lease period until the landlord or tenant acts to terminate it; also known as periodic tenancy.

30 DAYS

How long does a lender have to return to the borrower if an escrow account contains more than $50 of the allowable limit?

THIRD PARTY FINANCING ADDENDUM

If a purchaser plans to obtain a loan through USDA to buy a property, what will be attached to the contract?

RELEASE OF LIABILTY

If a seller is concerned about continuing to have liability for their mortgage after they sell their property and a buyer assumes the loan the seller should attempt to get __________________ from their lawyer.

NEW OWNER

If an owner has subsurface rights and sells the property with no reservations, who owns the mineral rights after the sale?

YES, THE RIGHT OF SURVIVORSHIP

If an owner in Joint Tenancy dies, does their part of the property go to the surviving owners?

NO, EITHER GOES TO WILL OR TO THEIR DESCENDANTS

If an owner in Tenancy in Common dies, does their part of the property go to the surviving owners?

ATTACH TO THE OFFER: 1. ENVIRONMENTAL ASSESSMENT 2. THREATENED OR ENDANGERED SPECIES 3. WETLANDS ADDENDUM

If the buyer wants to make the contract contingent upon their ability to have environmental inspections of the property, the correct way to do so is what?

THE LOAN

If the underwriter approves, what is their approval for?

BUYER CAN TERMINATE CONTRACT

If there are repairs listed in a sales contract, they need to be finished by the closing date, or what happens?

TITLE COMPANY

If there is an amendment to a contract, who should could a copy of the amendment?

FEUDAL

Incomplete ownership.

NOVATION

It is the act of replacing an existing contract with a new, modified one with different obligations.

DOCTRINE OF LACHES

Legal loss of a right with the thought that "if you don't use it, you lose it."

ACTUAL DAMAGES

Monetary compensation given to an injured party for losses that were a result of the actions or omissions of another party which can be shown by the evidence.

NON-HOMOGENOUS

Parcels of land are unique.

ADDENDA

Plural for addendum?

COVENANT OF QUIET ENJOYMENT

Promise that tenant has right to quietly enjoy the property?

REGULATION Z

Provision extending truth-in-lending disclosures to consumers.

REVERSIONARY INTEREST

Refers to an estate wherein, upon the death of the life estate owner, full ownership reverts to the original fee simple owner; also known as reversionary right.

YES

Regarding Agency agreements, are oral agreements held to the same rules as written ones?

EMINENT DOMAIN

Right of the state to seize a citizen's private property for public use without the owner's consent but with compensation.

ESCHEAT

Right of the state to seize a deceased person's estate if an individual dies without a will and has no surviving spouse, lineal descendants, or other heirs.

BEFORE

Should a buyer receive a Seller's Disclosure notice before or after making an offer?

GROUNDWATER AND RAINWATER

Surface owners have the rights to what?

ALLODIAL SYSTEM

System of ownership of which land is owned, completely without an obligation of services or duties to another.

TRUE

T/F? All liens are encumbrances?

TRUE

T/F? An owner that is selling their home with no debt on their mortgage can sell their property using seller financing. The seller deeds the property to the buyer and the seller has a lien on the property.

TRUE

T/F? Earnest money is refundable and option money is not refundable?

TRUE

T/F? High inflation goes with high interest rates?

RECISSION

Terminating a contract without suffering any consequences.

TRELA

Texas Real Estate License Act?

MORTGAGE LOAN ORIGINATORS

The SAFE Act regulates the licensure of which type of real estate professionals?

ESTATE

The degree, quality, nature, and extent of one's interest in property.

DEED

The legal written document that conveys the intangible ownership rights (title) of a real estate property to another property.

ASSETS INCOME CREDIT HISTORY

The lender approval of the buyer requires the verification and approval of what?

BENEFICIARY

The lender; has the right to the title.

OFFEROR

The person proposing the contract is known as the?

SECURITY INTEREST

The right of a lender to claim ownership of a property if a borrower defaults on payments.

DOUBLE NET LEASE

The tenant is responsible for rent, taxes, and insurance.

NET LEASE

The tenant pays rent plus some of the expenses of the property. Used for commercial property.

TRIPLE NET LEASE

The tenant pays the real estate taxes, maintenance, and insurance. Both fixed and variable.

COMMITMENT FOR TITLE INSURANCE

The title company sends this to the buyer within 20 days after they receive a signed contract.

STATUTE OF LIMITATIONS

Time frame from date of event to bring legal actions.

TESTATE

To die with a valid will.

INTESTATE

To die without a will.

REAL ESTATE LOANS LOANS FOR PERSONAL, FAMILY, HOUSEHOLD PURPOSES CONSUMER LOANS =/< 25K

Truth in Lending Act (TILA), or Title 1 of the Consumer Credit Protection Act of 1968 (Federal Reserve is responsible for enforcing it), covers what 3 types of loans?

TILA

Truth in Lending Act?

ESCROW ACCOUNT

What account are property taxes and home owner's insurance paid through?

BORROWER, LENDER, & TRUSTEE

What are 3 parties to the deed of a trust?

SEVERALTY (EXCLUSIVELY) CO-OWNERSHIP (SEVERAL PEOPLE) TRUST (ORGANIZATION)

What are the 3 different types of ownership?

TIME TRUST SEVERALTY

What are the 3 different ways an estate can be held in Texas?

OFFER ACCEPTANCE PERFORMANCE

What are the 3 stages that make up a contract?

COMMUNITY PROPERTY TENANCY IN COMMON JOINT TENNANCY

What are the 3 types of co-ownership?

POLICE POWER EMINENT DOMAIN TAXATION ESCHEAT

What are the 4 types of land use controls?

URBAN = 10 ACRES RURAL = 200 ACRES FAMILY / 100 ACRE INDIVIDUAL

What are the maximum sizes for urban and rural homesteads per individual and family?

SPECIAL WARRANTY DEED

What deed provides only one covenant to buyer that there were no liens on the property when the seller owned the home.

FULFILLED OR CANCELED

What is a discharged contract?

IF THE PROPERTY FUNCTIONING PROPERLY

What is a general home inspector's concern at the time of an inspection?

RATIFIED BY VIRTUE

What is it called when someone is impaired by drugs or alcohol when they sign a contract, but come back to finish out obligations while no longer unimpaired?

DOES NOT INCLUDE PROOF OF PAID MORTGAGE

What is not a benefit of recording a deed?

UNIFORM

What is not a type of acceptance?

6 ATTORNEYS 6 BROKERS 1 PUBLIC MEMBER

What is the Broker-Lawyer Committee made up of?

In a unilateral contract you are promising to pay for a performed act, and in a bilateral contract you are paying for the promise of a performed act.

What is the distinction between a bilateral and a unilateral contract?

SCARCITY SITUS MODIFICATION FIXITY ILLIQUIDITY

What is the list of economic characteristics?

AVULSION

What is the loss of land called when land every year due to storms and the constant waves hitting the soil?

EDIT, CREATE, RECOMMEND CONTRACTS TO TREC

What is the primary purpose of the Broker-Lawyer Committee?

ADDENDUM

What is used to add to a contract?

AMENDMENT TO CONTRACT

What is used to make a change to a term in that was originally agreed to in a signed contract?

UNPAID INCOME TAX

What negatively affects homestead?

AN AGREEMENT!

What should an agent call a "contract" with their client?

USE TEMPORARY LEASE AGREEMENT CONFIRM INSURANCE ON DWELLING

What should be done if closing and and possession dates are not the same?

AMENDMENT

What should be used to change a closing date in a contract?

HOA DUES INTEREST TAXES

What type of expenses are split fairly between seller and buyer?

RECIPROCAL

What type of obligations are created in a bilateral contract?

THIRD PARTY FINANCING ADDENDUM

When a buyer is receiving a conventional loan they will attach a _________________ to it?

Only if the seller pays for all the costs for themselves.

When can the seller require a buyer to purchase title insurance from a specific title insurance company?

OPTION-PERIOD

When is the best time for a client to get quotes on insurance policies?

REDLINING

When lending institutions limit the number of loans or the loan-to-value ratio in certain areas of a community or city.

7 DAYS AFTER LAST TENANT

When must a landlord rekey a property?

PARAGRAPH 21

Which Paragraph # is the designated place to provide the contact information for all the notices to be sent to the seller and buyer?

TREC'S NOTICE OF BUYERS TERMINATION OF CONTRACT FORM

Which form should be used when opting out of a Texas Real Estate Sales contract?

GENERAL WARRANTY DEED

Which instrument of conveyance provides the owner with the greatest protection?

SALE OF A GOOD OR SERVICE

Which of the following is NOT an example of a unilateral contract? 1. Commission 2 The offer of a reward 3. The sale of goods or service 4. A contest

PARAGRAPH 23

Which part of the One to Four Family Residential contract allows the buyer the right to terminate for any reason within the option period.

NONDURABLE

Which type of power of attorney is used for specific transactions?

BORROWER, LENDER, AND TRUSTEE

Who are the 3 parties on a Deed of Trust?

CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)

Who created the Closing Disclosure form itself?

REAL ESTATE ATTORNEY

Who creates a lease purchase agreement?

OWNER OF LAND ABOVE IT

Who owns the water beneath a property?

20 DAYS

Within how many days of the title company receiving the sales contract does the seller have to deliver (via Title co) a copy of the title commitment to the buyer?