Chapter 3 Real Estate U- Contract Law
Real estate is considered land plus...? Man-made improvements Bundle of rights Surface rights All of the above
Man-made improvements
Real estate brokers are permitted to do which of the following...? Draft a contract Market a property Provide legal advice All of the above
Market a property
The seller must deliver which of the following at closing...? Clouded title Defective title Un-marketable title Marketable title
Marketable title
Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept is known as...? General title Warranty of title Marketable title Reasonable title
Marketable title
If the sales price for a property is $200,000, and the buyer puts down a downpayment of $50,000, how much does the buyer need in financing from a lender...? $50,000 $150,000 $160,000 $200,000
$150,000
A married couple is exempt from paying taxes on any capital gains under...? $250,000 $400,000 $500,000 $1,000,000
$500,000 Capital gains taxes are a type of tax on the profits earned from the sale of assets such as stocks, real estate, businesses and other types of investments in non tax-advantaged accounts. When you acquire assets and sell them for a profit, the U.S. government looks at the gains as taxable income
Optional TREC contracts are designated by which of the following...? 'OP' 'OT' 'PO' 'ST'
'OP'
A specific lien that gives security to persons or companies who perform labor or furnish material to improve real property is known as a...? Tax lien Judgment lien Voluntary lien Mechanic's lien
Mechanic's lien
How many geographical districts are included in the federal reserve system...? 12 18 21 50
12
A home warranty is typically valid for up to how many months after a buyer purchases a property....? 3 months 6 months 12 months 24 months
12 months
David's property is owned under the LLC 123 Bank Street LLC. If David decides to sell the property, how should the name of the seller appear on the contract...? 123 Bank Street LLC David's full name 123 Bank Street David's full name and the name of the LLC
123 Bank Street LLC
A property should be tested for lead-based paint if it was built prior to what year...? 1964 1978 1988 2001
1978
If the commission on the sale of a property is 6%, how much will the cooperating broker earn if the seller's broker offered a 50/50 split...? 1.5% (percent) 3% (percent) 4% (percent) 6% (percent)
3% (percent)
Which of the following is an example of commingling...? A broker depositing a buyer's earnest money into their own personal bank account A broker depositing a buyer's earnest money into a separate trust account A broker depositing a buyer's earnest money into a separate escrow account All of the above
A broker depositing a buyer's earnest money into their own personal bank account
A mortgage creates which of the following...? An easement on the property A cloud on title A lien on the property All of the above
A lien on the property
What should a real estate agent have their client obtain before viewing any properties...? A credit report A pre-qualification letter from a lender A pre-approval letter from a lender Proof of employment
A pre-approval letter from a lender
Who conducts a title search...? A property owner A lender A title abstractor A real estate broker
A title abstractor
Which of the following is obtained as a result of a title search...? Summary of title Record of title Survey of title Abstract of title
Abstract of title
This refers to a condition in a real estate financing instrument giving the lender the power to declare all sums owed the lender immediately due and payable upon the happening of an event...? Acceleration clause Alienation clause Release clause Assignment clause
Acceleration clause
The express or implied knowledge of a fact is known as...? Actual notice Constructive notice Recorded notice Evidence of notice
Actual notice
Which of the following is used to add content to an existing contract...? Amendments Addendums Bulletins Notices
Addendums
This form of involuntary alienation involves the taking of property through the open, notorious, continuous, and hostile occupancy of the property...? Adverse possession Condemnation Foreclosure Eminent domain
Adverse possession Sometimes known as squatters rights
When is a seller's agent entitled to be compensated...? After the agent finds a ready, willing, and able buyer After the agent closes on the deal After the seller earns his/her profit from the transaction After the buyer moves into the house
After the agent finds a ready, willing, and able buyer
Title insurance is commonly broken down into a lender's policy and a...? Broker's policy Seller's policy Owner's policy Agent's Policy
Agents Policy
This refers to a clause in a contract giving the lender certain rights in the event of a sale or other transfer of mortgaged property...? Assumption clause Alienation clause Release clause Reserve clause
Alienation clause
A lease must contain which of the following elements...? Legally competent parties Lawful objective Offer and acceptance All of the above
All of the above
A non-judicial foreclosure proceeding may occur with which of the following...? Seller financing Deed of trust financing Land contract All of the above
All of the above
A ready, willing, and able buyer means the buyer...? Is ready to move towards closing on the property Is ready to sign the sales contract Has the financial means to close on the property All of the above
All of the above
According to the statute of frauds, which of the following contracts must be in writing...? Contracts for the sale of real property Leases longer than 1 year Leases longer than 2 years All of the above
All of the above
Mark recently obtained a mortgage and signed a promissory note with the lender. Which of the following is most likely included in Mark's promissory note...? ((A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date.)) The amount of the debt The time and method of payment of the debt The interest rate of the loan All of the above
All of the above
The offer to purchase a house is also called the...? Offer to Purchase Contract of Sale Purchase and Sale Agreement All of the above
All of the above
Which of the following addendum forms can be found on the TREC website...? Addendum for back-up contract Sellers financing addendum Addendum for coastal property All of the above
All of the above
Which of the following contingencies may be found in a sales contract...? Title contingency Mortgage contingency Appraisal contingency All of the above
All of the above
Which of the following information may be included in a listing contract...? Location of lock boxes When a 'For Sale' sign can be placed in the yard The amount of commission to be paid to the broker All of the above
All of the above
Which of the following is a common mistake found in contracts...? The parties do not initial each page of the contract The parties are not listed by their legal names The legal description of the property is not included All of the above
All of the above
Which of the following is a credit reporting bureau...? Equifax TransUnion Experian All of the above
All of the above
Which of the following is an element that must be included with a contingency...? How will the contingency be satisfied What is the deadline for the contingency to be satisfied How the contingency could be removed All of the above
All of the above
Which of the following is an example of a counter-offer...? -The seller would like to increase the amount of earnest money -The seller would like to sell at a price above the buyer's offer -The seller would like to close earlier than the proposed closing time by the buyer -All of the above
All of the above
Which of the following is an example of an amendment to a sales contract...? A change to the contract price A change to the closing date Lender required repairs to be paid by the buyer and seller All of the above
All of the above
Which of the following is an example of an involuntary lien...? Tax lien Mechanic's lien Judgment lien All of the above
All of the above
Which of the following is considered a bilateral contract...? A lease A sales contract An independent contractor agreement All of the above
All of the above
Which of the following is considered a bilateral contract...? A lease A sales contract An independent contractor agreement All of the above
All of the above
Which of the following is required in a valid deed...? Consideration Habendum clause A granting clause All of the above
All of the above
Which of the following may be prorated between the buyer and seller...? Insurance premiums Rents Taxes All of the above
All of the above
Which of the following must be included in a valid sales contract...? The price and terms of the transactions The signatures of buyer and seller Legal description of the property All of the above
All of the above
Which of the following operates in the secondary mortgage market...? Fannie Mae Freddie Mac Ginnie Mae All of the above
All of the above
Which of the following may impact an owner's interest in a property...? Liens Easements Encumbrance All of the above
All of the above ENCUMBERANCE : something that encumbers : impediment, burden. 2 : a claim (such as a mortgage) against property.
A contract can be discharged by which of the following means...? Full performance Assignment Novation All of the above
All of the above-- In contract law, a novation is the replacement of one of the parties in a two-party agreement with a third party, with the agreement of all three parties. In an assignment, the original party to the agreement retains ultimate responsibility. The original contract remains in place.
RESPA does not apply to which of the following...? Seller financing The buyer's assumption of the seller's existing mortgage A contract for deed All of the above
All of the above??? Generally, RESPA covers loans secured with a mortgage placed on a one-to-four family residential property. These include most purchase loans, assumptions, refinances, property improvement loans, and equity lines of credit. HUD's Office of Consumer and Regulatory Affairs, Interstate Land Sales/RESPA Division is responsible for enforcing RESPA.
An amendment to a contract must be signed by which of the following...? The seller only The buyer only Either the buyer or seller All of the parties to the contract
All of the parties to the contract
Which of the following should be done if the seller agrees to offer the buyer a credit for defects found during the property inspection...? Amend the original contract Provide an addendum to the original contract Draft a new contract Provide a bulletin to the original contract
Amend the original contract
Changes or modifications to the existing content of a contract are known as...? Amendments Amendments Addendums Bulletins
Amendments
Who selects the appraiser to be used to appraise a property under contract...? The lender The buyer's broker An independent third party service The seller's broker
An independent third party service
An agreement is made when which of the following occurs...? An offer is accepted An offer is countered An offer is rejected An offer is rescinded
An offer is accepted
Even after a buyer secures a mortgage, he/she is still protected by which of the following contingencies...? Appraisal contingency Moving contingency Closing contingency Credit contingency
Appraisal contingency
A transfer by a person of that person's rights under a contract is known as a...? Alienation Acceleration Release Assignment
Assignment
The transfer of legal rights and obligations by one party to another is referred to as...? Assignment Conversion Rescission Novation
Assignment
The taking of a title to property by a grantee wherein the grantee assumes liability for payment of an existing note secured by a mortgage or deed of trust against the property, is known as...? "Subject-to" a mortgage Assumption of mortgage Release of a mortgage Alienation of a mortgage
Assumption of mortgage
When is an acceleration clause typically executed...? At the assignment of mortgage At the sale of the property When the property is leased When the property is taxed
At the sale of the property
This refers to a mortgage in which the scheduled payment will not amortize the loan over the mortgage term; therefore, for the debt to be fully satisfied, a final payment larger than the uniform payments is required...? Balloon mortgage Straight mortgage Adjustable rate mortgage Fixed term mortgage
Balloon mortgage
A trust involves a trustor, trustee, and a...? Attorney Broker Grantor Beneficiary
Beneficiary
When a deed of trust is used, the lender is referred to as the...? Beneficiary Trustor Trustee Grantor
Beneficiary a person who derives advantage from something, especially a trust, will, or life insurance policy.
A Buyer/Tenant Representation Agreement is considered what type of contract...? Unilateral contract Bilateral contract Optional contract Forbearance contract
Bilateral contract
Which of the following is an example of a legal description of a property...? Address of the property Name of legal entity that owns the property Block and lot number Lot dimensions
Block and lot number A block and lot number is the unique set of numbers that identifies a property.
A mortgagor is also referred to as a...? Lender Creditor Seller Borrower
Borrower
A listing contract exists between the client and the...? Customer Salesperson Broker Buyer
Broker
The past series of transactions and documents affecting the title to a given parcel of land is known as...? Abstract of title Chain of title Clouded title Transferred title
Chain of title
Which of the following items may be difficult to distinguish as real or personal property...? Chandeliers Door hardware Rugs Stoves
Chandeliers
Title which is not encumbered or burdened with defects is known as...? Clear title Clouded title General title Effective title
Clear title
The escrow agent typically serves as the...? Seller's agent Closing agent Attorney Lender representative
Closing agent
Title that is encumbered or burdened with defects is referred to as...? Imperfect title Marketable title Clouded title All of the above
Clouded title
The illegal mixing of personal funds with money held in trust on behalf of a client is referred to as...? Assignment Commingling Condemnation Novation
Commingling
Loans processed on uniform loan forms according to FNMA/FHLMC guidelines are referred to as...? Conforming loans Non-conforming loans Unconventional loans Equity loans
Conforming loans
Anything given or promised by a party to include another to enter into a contract is called...? Novation Assignment Consideration Conversion
Consideration
Anything given or promised by a party to include another to enter into a contract is called...? Consideration Novation Assignment Conversion
Consideration
Which of the following is required in a valid deed...? Consideration Signature of the grantee Title insurance A survey of the property
Consideration
The notice of the condition of title to real property given by the official records of a government entity which does not require actual knowledge of the information is known as....? Actual Notice Constructive Notice Implied Notice Conditional Notice
Constructive Notice Constructive notice is the legal fiction that someone actually received notice (being informed of a case that could affect their interest - see: Notice) whether or not they truly did receive this.
The DTPA helps protect...? ((The Texas Deceptive Trade Practices Act)) Consumers Agents Sellers Attorneys
Consumers
A clause written in a sales contract that states the buyer must be allowed to terminate the contract if he/she cannot obtain financing is an example of which of the following...? Bulletin Notice Contingency Acknowledgement
Contingency
A mortgage securing a loan made by investors without governmental underwriting is referred to as a/an...? Conventional loan Unconventional loan FHA loan Home equity loan
Conventional loan
A broker who finds a buyer for a listing on the MLS is entitled to which of the following...? Bonus Salary Cooperation fee All of the above
Cooperation fee
The party that receives a counter-offer is called the...? Counter-offeror Offeror Offeree Counter-offeree
Counter-offeree
In a closing statement, money to be received is referred to as a...? Debit Asset Credit Liability
Credit
Promulgated forms are considered...? Custom forms Standard forms Adaptable forms Basic form
Custom forms (Custom Made by the TREC) Promulgated contract forms are forms that are both approved and required by the Texas Real Estate Commission. These will be used by agents and brokers alike during transactions to make the agreement's official.
n a closing statement, an expense or money received against a credit is referred to as a...? Debit Bonus Asset Liability
Debit
The DTPA is an acronym for which of the following Acts...? Deceptive Trade Practices Act Detrimental Trade Production Act Deceptive Trade Professionals Act Dishonest Trade Practices Act
Deceptive Trade Practices Act
A written document by which ownership of land is transferred from one party to another is referred to as a...? Title Promissory note Deed Mortgage
Deed
A legal document by which a borrower pledges certain real property or collateral as guarantee for the repayment of a loan is referred to as a...? Title Survey Deed of trust Warranty deed
Deed of trust A legal document by which a borrower pledges certain real property or collateral as guarantee for the repayment of a loan. It differs from the mortgage in a number of important respects. For example, instead of their being two parties to the transaction there are three. There is the borrower who signs the trust deed and who is called the trustor. There is the third, neutral party, to whom trustor deeds the property as security for the payment of the debt, who is called the trustee. And, finally, there is the lender who is called the beneficiary, the one who benefits from the pledge agreement in that in the event of a default the trustee can sell the property and transfer the money obtained at the sale to lender as payment of the debt.
A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender is known as a...? Quitclaim deed Deed of trust Deed-in-lieu of foreclosure Warranty deed
Deed-in-lieu of foreclosure
A down payment made by a purchaser of real estate as evidence of good faith is known as...? Contingency money Security deposit Earnest money Interest money
Earnest money
This type of easement exists when a landowner has no access to roads and is landlocked...? Easement by necessity Easement in gross Easement by prescription Dominant easement
Easement by necessity
Utility companies typically hold what type of easement...? Easement in gross Easement by prescription Easement by necessity Dominant easement
Easement in gross- What is the most common form of easement in gross? Utility company easements represent the most common types of easements in gross in the US. A utility easement makes it possible for a utility company to service part of a property or maintain equipment needed to supply utility services. Pipeline easements are also considered common easements in gross
James is in the process of finalizing a contract to purchase a new house. What must James complete with the seller in order to use e-signatures to sign the contract...? Electronic Addendum E-signature Form Electronic Consent Form Electronic Agreement Form
Electronic Consent Form
The crops and other annual plantings considered to be personal property of the cultivator are known as...? Fixtures Emblements Trade fixtures All of the above
Emblements
A right of the government to acquire property for necessary public use by condemnation is known as...? Police power Escheat Eminent domain Taxation
Eminent domain
A claim, charge, or liability that attaches to, and is binding on real estate is referred to as a/an...? Encumbrance Homestead CC&R Encroachment
Encumbrance
This Act prohibits discrimination in granting or arraigning credit on the basis of race, color, religion, national origin, sex, marital status, or age...? ADA Equal Credit Opportunity Act TILA Equal Opportunity Housing Act
Equal Credit Opportunity Act
What does the vendor offer a vendee in a transaction...? Equitable title Money A property free of any cosmetic defects All of the above
Equitable title
If a buyer cannot fulfill a contingency, the seller may be able to terminate the contract through which of the following clauses...? Financing clause Escape clause Closing clause All of the above
Escape clause To begin with, a seller has multiple opportunities to escape from an offer once they have accepted it as long as the agreed upon condition has not expired. However, the buyer does not have the option to back out of their commitment unless their condition on the sale has expired under normal circumstances and only if they have the cooperation of the seller. Two common examples of potential short-term conditions include: Financing Home inspections
The neutral third party holding funds or something of value in trust for another or others is known as the...? Real estate broker Escrow agent Beneficiary Grantor
Escrow agent
An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month, or year is referred to as a/an...? Estate for Years Estate From Period to Period Estate at Sufferance Absolute Estate
Estate From Period to Period
An estate arising when the tenant wrongfully holds over after the expiration of the term is referred to as a/an...? Tenancy at will Estate at sufferance Tenancy for years Estate from period to period
Estate at sufferance
A typical lease is considered a/an...? Estate for Years Estate From Period to Period Estate at Sufferance Periodic Estate
Estate for Years
Which of the following leasehold estates will automatically renew...? Estate from period to period Estate for years Estate at will Estate at sufferance
Estate from period to period An "estate from period to period" is a leasehold agreement that specifies an initial period of tenancy and the length of the agreement, but does not end after the specified period.
An estate at sufferance may lead to which of the following...? Condemnation Eminent domain Eviction Escheat
Eviction
A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is referred to as a/an...? Exclusive Agency Agreement Exclusive Right to Sell Listing Agreement Net Listing Agreement Open Listing Agreement
Exclusive Right to Sell Listing Agreement
Earnest money is required in all residential transactions in Texas...? T (True) F (False)
F (False)
In order to simplify the process, a real estate agent should only recommend one mortgage broker to their clients...? T (True) F (False)
F (False)
According to the statute of frauds, all leases must be in writing...? T (True) F (False)
F (False) In most states, a rental agreement does not need to be in writing. Oral lease agreements are generally valid for rental periods of a year or less. In most states, if no term is stated in the lease agreement or oral agreement, it is assumed that the tenancy is month-to-month.
Listing contracts are promulgated by TREC...? T (True) F (False)
F (False) Listing agreements are private contracts between the property owner and the real estate broker, not the sales agent
The One to Four Family Residential Contract (resale) can be utilized to submit an offer on a newly constructed house...? T (True) F (False)
F (False) The New Home Contract (Incomplete Construction) is a form contract promulgated by the Texas Real Estate Commission (TREC). The contract is used for the sale of new homes when construction has not yet been completed by the builder and when the closing will occur after construction has been completed.
A mortgage loan in which payments are insured by the Federal Housing Administration is known as a...? Conventional loan Non-conforming loan FHA-insured loan Straight loan
FHA-insured loan
Individuals who are liable for a lot of debt will most likely obtain what type of loan...? Conventional loan FHA-insured loan Non-conforming loan All of the above
FHA-insured loan An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. FHA home loans require lower minimum credit scores and down payments than many conventional loans, which makes them especially popular with first-time homebuyers.
The Special Provisions part of a contract are to be used for...? Factual statements and business details Legal description of the property Subjective details All of the above
Factual statements and business details
The federal banking system of the United States is known as the...? Nation Reserve System United Reserve System Federal Reserve System American Reserve System
Federal Reserve System
An estate that will end automatically when the stated event or condition occurs is referred to as a...? Fee simple absolute Fee simple determinable Leasehold Reversionary
Fee simple determinable A fee simple determinable is an interest in land that will end automatically if a certain specified event happens. Said another way, the fee simple determinable is a fee simple interest that is subject to a restriction that has the potential to terminate the interest.
Absolute ownership of real property is known as a/an...? Absolute estate Leasehold estate Fee simple estate Free estate
Fee simple estate
A suit to quiet title is used to do which of the following...? Record a title Add on to a title Fix a defect in title Remove an owner from title
Fix a defect in title
A contract that requires a party to not do something is considered a ...................... contract? Performance Forbearance Unilateral Optional
Forbearance Contract
If a contract requires a party to not do something, it is referred to as...? Forbearance Performance Blocking Consideration
Forbearance?
A procedure whereby property pledged as security for a debt is sold to pay the debt in event of default in payments or terms is known as...? Alienation Condemnation Eminent domain Foreclosure
Foreclosure
David is a real estate agent in Dallas. Which of the following Texas promulgated contract forms will David most likely use in his practice...? Form 20-12 Form 12-A Form OP Form 10-1
Form 20-12 ---One to Four Family Residential Contract (Resale) Description: This is the most frequently used contract form. It is used for the resale of residential properties that are either a single family home, a duplex, a tri-plex or a four-plex. It is not for use for condominium transactions, new homes being sold by a builder, or farm and ranch properties.
Which of the following is the best way to discharge a contract...? Full performance Breach of contract Novation Assignment
Full performance
A deed used to convey real property which contains warranties of title and quiet possession, and the grantor thus agrees to defend the premises against the lawful claims of third persons is referred to as a...? General warranty deed Special warranty deed Quitclaim deed Bargain and sale deed
General warranty deed
Which of the following deeds is most commonly used to transfer residential property in Texas...? Quitclaim deed Deed without covenants Bargain and sale deed General warranty deed
General warranty deed
A lease which provides for a varying rental rate, often based upon future determination is known as a...? Net lease Gross lease Ground lease Graduated lease
Graduated lease
Ely is in the process of purchasing a new house. Since Ely will be acquiring title to the property, he is considered the...? Grantor Grantee Trustor Trustee
Grantee
After a fee simple determinable estate ends, the interest in the property reverts back to the...? Grantee Tenant Grantor Remainderman
Grantor
The seller in a residential sales transaction is considered the...? Grantee Trustee Trustor Grantor
Grantor
An lease for the use of land only, sometimes secured by improvements placed on the land by the user is referred to as a...? Net lease Gross lease Ground lease Graduated lease
Ground lease
A real estate developer may be interested in which of the following types of leases...? Net lease Gross lease Percentage lease Ground lease
Ground lease--- For the ground... Duh
A loan against the equity in a home is referred to as a...? Purchase money mortgage Home equity loan FHA-insured loan Unconventional loan
Home equity loan
What type of insurance do most lenders require of homebuyers...? Flood insurance Earthquake insurance Homeowner's insurance All of the above
Homeowner's insurance
When representing a seller, what is the very first form the broker must have the seller review and sign...? Listing contract Information About Brokerage Services Disclosure of Agency Purchase contract
Information About Brokerage Services
Which of the following should not be included in the Special Provisions part of a contract...? Factual statements Business details Information found in an addendum All of the above
Information found in an addendum
Each page of the sales contract must be...? Initialed Signed Sealed Notarized
Initialed
Which of the following is a charge for the use of money...? Principal Interest Tax Insurance
Interest
How does a pre-approval letter from a lender help a buyer...? It determines where a buyer can purchase a house It determines what size house a buyer can purchase It gives the buyer an estimated closing date It gives the buyer an idea of how much they can afford
It gives the buyer an idea of how much they can afford
In a mortgage State, the lender must go through ......................... in order to obtain the property? ((What is a mortgage state? In mortgage states, the mortgage is, technically, not the loan a homebuyer takes out but a document that gives the lender a lien on the property)) Non-judicial foreclosure Short sale Judicial foreclosure Modified foreclosure
Judicial foreclosure Judicial foreclosure refers to foreclosure proceedings that take place through the court system. This type of foreclosure process often occurs when a mortgage note lacks a power of sale clause, which would legally authorize the mortgage lender to sell the property if a default occurred.
A contract used in a sale of real property whereby the seller retains title to the property until all or a prescribed part of the purchase price has been paid is referred to as a...? Land contract Seller financing contract Listing contract Mortgage
Land contract
Which of the following is utilized to submit an offer to lease a property...? One to Four Family Residential Contract (resale) Residential Offer Form Lease Application All of the above
Lease Application
A tenant's right to occupy real estate during the term of the lease is referred to as a...? Freehold estate Fee simple estate Leasehold estate Fee simple determinable estate
Leasehold estate
There are two primary types of estate in land, freehold estates and...? Trust estates Absolute estates Temporary estates Leasehold estates
Leasehold estates
A mortgagee is typically the...? Borrower Buyer Seller Lender
Lender
One who contracts to rent, occupy, and use property under a lease agreement is referred to as a...? Lessor Lessee Grantor Grantee
Lessee
An owner who enters into a lease agreement with a tenant is referred to as the...? Lessor Lessee Grantor Grantee
Lessor
A claim against a property that provides security for the repayment of a debt or an obligation of the property owner is known as a/an...? Easement Lien Encroachment Homestead
Lien
A freehold estate created for the duration of the life or lives of certain named persons is known as a...? Life estate Leasehold estate Fee simple absolute estate Fee simple determinable estate
Life estate
A contract in which a property owner employs a real estate broker to market the property described in the contract is referred to as a...? Sales Contract Listing Contract Lease Contract Independent Contractor Contract
Listing Contract
Which of the following contracts describes how the real estate broker will be compensated...? Listing contract Purchase contract Trust contract Sales contract
Listing contract
The amount of money that a bank will lend a buyer is based on which of the following ratios...? Credit-to-value ratio Loan-to-value ratio Income-to-value ratio Debit-to-value ratio
Loan-to-value ratio
This refers to an instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation...? Deed Mortgage Title Bill of Sale
Mortgage
Which of the following Acts helps prevent consumers from getting charged higher than anticipated fees by lenders at closing...? Mortgage Settlement Act Lender Disclosure Act Mortgage Disclosure Improvement Act Financing Disclosure Act
Mortgage Disclosure Improvement Act
Which of the following is the most common type of contingency found in sales contracts...? 1031 Exchange contingency Insurance contingency Mortgage contingency Seller financing contingency
Mortgage contingency A mortgage contingency is a clause in real estate transactions that gives home buyers a timeframe to secure a mortgage loan for a home. If the loan cannot be secured, the buyer can walk away without legal repercussions and have their earnest money deposit returned.
Which of the following is an example of a voluntary lien...? Tax lien Judgment lien Mortgage lien All of the above
Mortgage lien
One to whom a mortgagor gives a mortgage to secure a loan or performance of an obligation is referred to as a...? Grantor Grantee Mortgagor Mortgagee
Mortgagee
One who gives a mortgage on his or her property to secure a loan or assure performance of an obligation is referred to as a...? Mortgagor Mortgagee Grantor Grantee
Mortgagor
When added to a contract, which of the following should be included in parenthesis...? First name Last name Middle name Nicknames
Nicknames
In a Deed of Trust State, the lender can obtain the property through which of the following means...? Non-judicial foreclosure Short sale Judicial foreclosure Modified foreclosure
Non-judicial foreclosure
Items that are considered personal property should be included in the...? Chattel addendum Non-realty addendum Real property addendum Itemized addendum
Non-realty addendum
Which of the following listing contracts are illegal in Texas...? Net listing agreements Open listing agreements Exclusive agency agreements None of the above
None of the above
If the residential contract form is not signed by both parties, the contract is still considered a/an...? Executed contract Offer Binding contract Executory contract
Offer
Abby is a real estate agent in Dallas. She would like to make an offer on an existing two family home. Which of the following forms should Abby use to submit her offer...? One to Four Family Residential Contract (resale) Optional Residential Contract Residential Offer Form Residential Listing Contract
One to Four Family Residential Contract (resale)
An options agreement is included in which of the following contracts...? Exclusive Right to Sell Agreement Net Listing Agreement One to Four Family Residential Contract (resale) Residential Listing Contract
One to Four Family Residential Contract (resale)
Which of the following is the most commonly used promulgated contract form...?' Optional Residential Contract Form OP Residential Listing Contract One to Four Family Residential Contract (resale)
One to Four Family Residential Contract (resale)
Which of the following is an example of a non-exclusive listing agreement...? Exclusive agency agreement Exclusive right to sell agreement Open listing agreement Net listing agreement
Open listing agreement
Which of the following are not considered promulgated contract forms...? Standard contracts Optional contracts Required contracts All of the above TIP**Promulgated contract forms are forms that are both approved and required by the Texas Real Estate Commission. These will be used by agents and brokers alike during transactions to make the agreement's official.
Optional contracts
The buyer in a transaction typically hires a property inspector during which part of the closing process...? Offer and acceptance period Options period Loan closing Final closing
Options period
The inspection contingency protects the buyer during which phase of the closing process...? Approval period Options period Loan origination period Transfer period
Options period-- An option period is a short window of time after your offer is accepted during which you take a closer look at your new home. If you find red flags or major issues during the option period, you can terminate the purchase and get your earnest money deposit (EMD) back from the seller. In fact, during the option period you can terminate the contract for any reason. This can be set for any length of time, agreed upon by both parties.
Which of the following acronyms can be used to describe the powers the government possesses over real property...? PITI SADDLE PETE RESPA
PETE
Which of the following is an acronym used to describe the components of a mortgage payment...? CADDL PETE OLD CAR PITI
PITI PITI - An acronym denoting that a mortgage payment includes: principal, interest, taxes, and insurance.
What should a buyer perform right before closing on a property...? Perform a final walk-through Survey the property Obtain a commitment letter from the lender Hire a property inspector
Perform a final walk-through
A contract that requires a party to do something is considered a .......................... contract? Forbearance Unilateral Performance Optional
Performance Contract
All property that is not considered to be real property is known as...? Real estate Personal property Land All of the above
Personal property
This is a step above prequalification, it involves verifying a purchaser's credit, down payment, and employment history...? Closing Pre-approval Commitment letter Underwriting
Pre-approval
What is the first step in the loan process...? Pre-qualification Pre-approval Closing Underwriting
Pre-qualification
The activity of lenders making mortgage loans to individual borrowers is known as the...? Federal mortgage market Primary mortgage market Secondary mortgage market Government mortgage market
Primary mortgage market
The buyer is the .....................in a Buyer Agency Agreement? Customer Principal Agent Broker
Principal A principal is any person involved in a contract, such as a seller, buyer, principal broker, or an owner who has hired an agent as a property manager. A client is a party who has signed an agreement with an agent, and this agreement creates a fiduciary relationship.
The amount of money borrowed, or the amount of the loan is known as the...? Balance Interest Mortgage Principle
Principle
A borrower's personal promise to pay a debt according to the agreed terms is known as the...? Promissory note Mortgage Deed of trust All of the above
Promissory note A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date.' PROMISS-ory note....
Who should the buyer hire after having their offer accepted...? Real estate broker Mortgage broker Loan officer Property inspector
Property inspector
Who should the buyer hire during the options period...? Escrow agent Broker Property inspector Surveyor
Property inspector
Which of the following contingencies allows a buyer to get out of a sales contract if he/she cannot sell their existing home...? Inspection contingency Exchange contingency Mortgage contingency Property sale contingency
Property sale contingency
This refers to the dividing of taxes equally or proportionately to time of use, usually between the seller and buyer...? Settlement of taxes Conversion of taxes Proration of taxes Splitting of taxes
Proration of taxes
The DTPA was enacted to...? Protect sellers Protect agents Protect principals Protect the public
Protect the public
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price is known as a...? Conforming Mortgage Purchase Money Mortgage Unconventional Mortgage Reverse Annuity Mortgage
Purchase Money Mortgage
Which of the following Acts prohibits kickbacks and other referral fees between lenders and real estate brokers...? ADA MDIA TILA RESPA
RESPA
Which of the following refers to a federal law requiring the disclosure to borrowers of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by HUD...? ADA PITI TILA RESPA
RESPA The Real Estate Settlement Procedures Act (RESPA) provides consumers with improved disclosures of settlement costs and to reduce the costs of closing by the elimination of referral fees and kickbacks.
What is Raw Land?
Raw land has no buildings on it or construction. Untouched land.
The Texas Real Estate License Act was formally known as the...? Real Estate Practice Act Real Estate Commission Act Real Estate Certification Act Real Estate Dealers License Act
Real Estate Certification Act
Land and everything permanently attached to land is known as...? Real estate Real property Bundle of rights Chattels
Real estate
Real estate plus the bundle of rights is known as...? Chattels Land Real property Real estate
Real property
Buying back one's property after a judicial sale is known as...? Rescission Redemption Short sale Foreclosure
Redemption
Which of the following is not considered a violation of the ECOA...? Refusing to lend to an Asian-American Refusing to lend to a Catholic Refusing to lend to a minor Refusing to lend to a married couple
Refusing to lend to a minor
This refers to a stipulation that upon the payment of a specific sum of money to the holder of a trust deed or mortgage, the lien on the property shall be removed...? Alienation clause Acceleration clause Release clause Assumption clause
Release clause
A person who inherits or is entitled to inherit property upon the termination of the estate of the former owner is known as a...? Remainderman Grantee Tenant Reversionman
Remainderman
An independent contract agreement exists between a broker and a...? Salesperson Principal Client Buyer
Salesperson
The buying and selling of existing deeds of trust and promissory notes occurs in the...? Federal mortgage market Primary mortgage market Secondary mortgage market Government mortgage market
Secondary mortgage market
When a seller provides the buyer with a loan to purchase their property it is referred to as...? Seller assignment Buyer financing Seller financing Buyer assumption
Seller financing
Which of the following will most likely warrant the highest interest rate...? Seller financing Conventional mortgage Unconventional mortgage FHA loan
Seller financing
The listing agent primarily represents which of the following...? Sellers Buyers Customers Brokers
Sellers
Which of the following is an example of voluntary alienation...? Condemnation Selling a property Foreclosure All of the above
Selling a property
According to the listing agreement, a seller's broker is considered a...? General agent Special agent Dual agent Universal agent
Special agent
The effective date of a contract serves as the...? Start date of the contract End date of the contract Closing date Draft date
Start date of the contract
A law establishing the time period within which certain lawsuits may be brought is known as the...? Statute of Frauds Statute of Limitations Statute of Time Legal Statute
Statute of Limitations
An interest only loan is also known as a/an...? Adjustable rate loan Straight loan Balloon loan Fixed rate loan
Straight loan
The transfer of only part of a lease term with reversion to the lessee is known as a...? Sublease Temporary lease Rescinded lease Converted lease
Sublease
Funds provided usually by the builder or seller to temporarily reduce the borrower's monthly principal and interest payment is known as a...? Credit Voucher Subsidy buydown Reduction
Subsidy buydown
Notice that a contract has been signed can be done orally or in writing...? T (True) F (False)
T (True)
Regardless if an agent helped obtain a listing contract, the agent's sponsoring broker still owns the listing...? T (True) F (False)
T (True)
The MLS allows a broker's listing to get more exposure...? T (True) F (False)
T (True)
Listing contracts can be either a unilateral or bilateral contract...?' T (True) F (False)
T (True)-- Open listings would be considered Unilateral Contracts Exclusive right to sell agreement would be considered a bilat Contract
The Texas promulgated contract forms can be found at the...? TREC website U.S. Attorney General website NAR website Bureau of Real Estate website
TREC website
Where can agents and brokers look to find the most up to date promulgated contract forms...? BRE website Realtor.com TREC website All of the above
TREC website
An encumbrance against a property filed by the taxing jurisdiction for delinquency in paying real property taxes is known as a...? Mechanic's lien Tax lien Judgment lien Voluntary lien
Tax lien
A property tenure that can be terminated at any time by either the tenant or the landlord is known as a/an...? Estate for years Temporary estate Tenancy at sufferance Tenancy at will
Tenancy at will
Which of the following exists without a contract or lease, and is unspecified in duration or exchange of payment...? Tenancy at sufferance Estate for years Temporary estate Tenancy at will
Tenancy at will A tenant at or by sufferance is someone who has stayed in the rental after their lease has expired but who has not yet been asked to leave by the landlord. See also: "holdover tenant." A tenancy at will is one where there is a landlord/tenant relationship, but there aren't specific terms of the tenancy.
An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners is considered...? Joint tenancy Severalty ownership Tenancy in common Tenancy by the entirety
Tenancy in common
How does a longer term lease typically impact the amount of rent paid...? The rent will be lower The rent will be higher The rent will stay the same The amount of rent paid is not related to the lease term
The Amount will be lower
Judicial foreclosure favors which of the following...? The lender The broker The Trustee The borrower
The borrower
Which of the following parties are included in a land contract...? The seller and beneficiary The buyer and seller The buyer and bank The seller and bank
The buyer and seller
Liens are generally prioritized based on which of the following...? The date when the lien was recorded The amount of the lien The desire of the property owner Liens are not prioritized over one another
The date when the lien was recorded
Which of the following must be included in a sales contract...? The date when the contract was drafted The effective date of the contract The signature of the seller's attorney The signature of the buyer's attorney
The effective date of the contract
The buyer's earnest money is normally held by which of the following...? The seller themselves The buyer's attorney The County Clerk The escrow agent
The escrow agent
The party's signatures in a contract must match which of the following...? The legal names listed at the beginning of the contract The name they are commonly referred to The last name of each party The first name of each party
The legal names listed at the beginning of the contract
Which of the following is included in a lender's good faith estimate...? The lender's loan origination fee A survey of the property An appraisal of the property All of the above
The lender's loan origination fee
The amount that a bank will lend on a property is based on which of the following...? The higher of the contract price or the appraised value The lesser of the contract price or the appraised value The appraised value only The contract price only
The lesser of the contract price or the appraised value
Once a buyer completes their offer, the buyer's broker submits the offer to which of the following...? The escrow agent The buyer's agent The seller's broker TREC
The seller's broker
Which of the following is needed in order to have an executory sales contract...? The signatures of all parties involved in the contract The signatures of the brokers involved in the transaction The signature of the seller's attorney The signature of the buyer's attorney
The signatures of all parties involved in the contract
Abby is in the process of purchasing a house and needs to add a third party financing addendum to the contract. After the third party financing addendum is signed by both Abby and the seller, who should receive a copy of the addendum...? The appraiser The title company The surveyor All of the above
The title company
What is the standard commission rate for brokers in Texas...? 2% (percent) 3% (percent) 6% (percent) There is no standard commission rate
There is no standard commission rate
What is the standardized rate for earnest money on a residential property in Texas...? $1 $500 $1,000 There isn't a standard rate for earnest money
There isn't a standard rate for earnest money
How do addendums affect a contract...? They add content to the existing contract They modify the existing content of the contract They void the contract All of the above
They modify the existing content of the contract
Which of the following is the second most used addendum for residential sales contracts...? Loan assumption addendum Short sale addendum Third party financing addendum Sellers financing addendum
Third Party Financing Addendum
Which of the following addenda are used when the buyer is obtaining a conventional mortgage to purchase a property...? Loan assumption addendum Reverse mortgage addendum Sellers financing addendum Third party financing addendum
Third party financing addendum
The evidence of right which a person has to the ownership and possession of land is referred to as...? Title Deed Bundle of rights Warranty
Title
Insurance against loss or damage resulting from defects or failure of title to a given parcel of real estate is known as...? Homeowner's insurance PMI MIP Title insurance
Title insurance
When a deed of trust is used, who serves as a neutral third party to the borrower and lender...? Beneficiary Grantor Trustor Trustee
Trustee
The individual who contributes real property to a trust is considered the...? Trustor Trustee Beneficiary Grantee
Trustor
One who borrows money from a trust deed lender is referred to as the...? Beneficiary Grantor Trustor Trustee
Trustor One who borrows money from a trust deed lender, then deeds the real property securing the loan to a trustee to be held as security until trustor has performed the obligation to the lender under terms of a deed of trust.
The act of reviewing loan documentation and evaluating the borrower's ability and willingness to repay the loan and sufficiency of collateral value of the property is referred to as...? Qualification Closing Settlement Underwriting
Underwriting
Contingencies that are added to a contract create a/an .................. contract? Unenforceable Executed Assigned Voidable
Unenforceable
An appraiser will document the appraised value of a house on the...? National Appraisal Report Uniform Residential Appraisal Report Texas Appraisal Report HUD Appraisal Form
Uniform Residential Appraisal Report
A .................. contract exists when one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it? Unilateral Bilateral Executed Void
Unilateral
How should a property be described in a typical sales contract...? Using the legal description of the property Using the address of the property Using the name of the legal entity Using the block number only
Using the legal description of the property
This refers to an interest rate on a loan that is greater than that permitted by law...? Novation Inflation Marker Usury
Usury Usury is the act of lending money at an interest rate that is considered unreasonably high or that is higher than the rate permitted by law.
A purchaser is also referred to as a...? Vendor Vendee Lessor Lessee
Vendee
A seller is also referred to as a...? Vendor Vendee Lessor Lessee
Vendor
A contract that does not have force or effect is considered...? Valid Void Executed Formal
Void
Lisa recently signed a sales contract to purchase a new house. In the contract, Lisa needed to add a mortgage contingency. This contingency makes the contract a/an ................contract? Unenforceable Voidable Executed Assigned
Voidable
The transfer of title freely by the owner is referred to as...? Voluntary alienation Involuntary alienation Granting Trustor
Voluntary alienation Voluntary alienation is an unforced transfer of title by sale or gift from an owner to another party.
Any lien placed on property with consent of, or as a result of, the voluntary act of the owner is referred to as a/an...? Involuntary lien Homestead Voluntary lien Encroachment
Voluntary lien
When is a seller's property disclosure not required...? When a two family residence is being sold When any single family home is being sold When property is being sold as a result of a court order When the seller elects to pay a fee instead of providing a disclosure
When property is being sold as a result of a court order
The Broker/Lawyer Committee consists of how many people from the public...? 1 6 11 13
1
The Broker/Lawyer Committee consists of how many members...? 3 7 11 13
13
The Texas Real Estate Commission was created in what year...? 1931 1949 1988 2001
1931
If an agent is sued under the DTPA, they may be sued for up to how many times the actual damages...? 2x 3x 4x 10x
3x
The Broker/Lawyer Committee consists of how many attorneys...? 1 6 11 13
6
The Broker/Lawyer Committee consists of how many real estate brokers...? 1 6 11 13
6
What is A legal device whereby one person transfers ownership of property to someone else to hold or manage for the benefit of a third party?
A Trust
What is the primary distinction between a tenancy in common and a joint tenancy...? A joint tenancy includes the right of survivorship A tenancy in common includes the right of survivorship Freehold estates can be owned as a tenancy in common Leasehold estate can be owned as a joint tenancy
A joint tenancy includes the right of survivorship
Which of the following can force a judgment against an owner's property, even if the owner is protected as a homestead...? A credit card company A student loan company A mortgage lender A company that offers lines of credit
A mortgage lender
The rights in real property to the reasonable use of the air space above the surface of the land are known as...? Sub-surface rights Surface rights Air rights Mineral rights
Air rights
How can an agent avoid the unauthorized practice of law...? Refer their client to an attorney for legal advice Refuse to provide legal advice Have their client's attorney perform any edits to the contract form All of the above
All of the above
Lisa was found guilty under the DTPA. Lisa may be subject to which of the following...? Suspension of her real estate license Revocation of her Association of Realtors membership Punitive damages All of the above
All of the above
Real estate brokers are not permitted to do which of the following...? Draft new contracts Provide legal advice Revise the Texas promulgated contract forms All of the above
All of the above
Which of the following business entities can own real property...? Corporations Limited Liability Companies Partnerships All of the above
All of the above
Which of the following is considered a bilateral contract...? Sales contract Net listing agreement Exclusive right to sell agreement All of the above
All of the above
The Broker/Lawyer Committee is responsible for which of the following...? Issuing a license to an agent or broker Editing the promulgated contract forms Suspending or revoking a real estate license All of the above
All the Above
Who is authorized to provide legal advice to sellers...? Attorneys Agents Brokers All of the above
Attorneys
A written listing agreement between a broker and his/her principal is considered what type of contract...? Unilateral contract Bilateral contract Implied contract Void contract
Bilateral contract
An independent contractor agreement is considered what type of contract...? Bilateral contract Unilateral contract Implied contract Void contract
Bilateral contract
A written instrument given to pass title of personal property from a vendor to a vendee is referred to as a...? Deed Title Contract of sale Bill of sale
Bill of sale- Also known as a receipt
Personal property is also known as...? Real estate Fixtures Emblements Chattels
Chattels
Married couples in Texas typically own property as...? Tenancy by the entirety Severalty ownership Joint tenancy Community property
Community property Texas is one of nine states that is a community property jurisdiction. In general, this means that any property acquired by a couple during their marriage (with a few exceptions) is equally owned by both spouses. This can have a profound effect on the dissolution of property during divorce proceedings.
Real estate brokers are allowed to do which of the following...? Complete the Special Provisions section of a contract Revise the promulgated contract forms Draft a deed All of the above
Complete the Special Provisions section of a contract The Special Provisions paragraph is to allow the buyer and seller to make factual statements and attend to business details that may arise in a sale. It is NOT designed to let the parties rewrite the contract, or include complex legal provisions.Apr 21, 2016
Taking private property for public use, with fair compensation to the owner is known as...? Police power Escheat Taxation Condemnation
Condemnation
A legally enforceable agreement to do, or not to do something is called a/an...? Option Deed Contract Statement
Contract
A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease is known as a...? Condominium Time-share Cooperative Townhouse
Cooperative
An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it is known as a...? Limited Liability Company Corporation Sole Proprietorship Limited Liability Partnership
Corporation
A written document by which ownership of land is transferred from one party to another is known as a...? Deed Title Chattel Instrument
Deed
A real estate broker's license may be revoked for which of the following acts...? Drafting a new deed for a client Marketing a property on the MLS Advertising a property on Facebook Entering into a listing contract with a seller
Drafting a new deed for a client
A contract that has been fully performed is considered a/an...? Executory contract Void contract Executed contract Closed contract
Executed contract
A contract in which something remains to be done by one or both of the parties is considered a/an...? Executed contract Executory contract Void contract Open contract
Executory contract
A contract that has been put into words, either spoken or written is considered a/an...? Express contract Implied contract Dual contract Void contract
Express contract
As an agent to the seller, the broker should fill out the seller disclosure form on behalf of the seller...? T (True) F (False)
F (False)
An inheritable estate in land providing the greatest interest of any form of title is known as...? Fee simple determinable Life estate Fee simple absolute Leasehold
Fee simple absolute
Personal property that has become real property by having been permanently attached or adapted to real property is known as a...? Trade fixture Fixture Chattel Emblement
Fixture
An estate of indeterminable duration is referred to as a/an...? Freehold estate Leasehold estate Binding estate Absolute estate
Freehold estate Freehold estates are estates of indefinite duration that can exist for a lifetime or forever. Some types of freehold estates are classified as "estates of inheritance," where the estate continues beyond the life of the holder and descends to their living heirs upon death as specified by the will or by law.
A legal life estate in land that is owned and occupied as a family home is known as a...? Fee simple absolute Homestead Leasehold Primary residence
Homestead
An agreement that has not been put into words, but is implied by the actions of the parties is considered a/an...? Express contract Implied contract Dual contract Void contract
Implied contract
A lien imposed against property without consent of an owner is referred to as a/an...? Easement Involuntary lien Voluntary lien Encroachment
Involuntary lien
Real estate agents are not permitted to practice which of the following...? Marketing Real estate sales Law Advertising
Law
The landowner's ability to take minerals from the earth or to sell or lease this right to others is known as...? Easements Surface rights Air rights Mineral rights
Mineral rights
A voidable contract is typically used by a...? Minor Adult Buyer Seller
Minor A voidable contract provides the option to rescind by either party. At the creation of the contract, it is valid but it could be voided in the future. Most sales contracts are voidable contracts because they contain contingency clauses.
A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system is referred to as a...? Freight Chattel Mobile home Ranch-style home
Mobile home
An irrevocable right to buy a property at an agreed upon price is called a/an...? Option Lease Purchase contract Listing contract
Option What is an option contract in real estate? In the simplest terms, a real-estate option contract is a uniquely designed agreement that's strictly between the seller and the buyer. In this agreement, a seller offers an option to the buyer to purchase property at a fixed price within a limited time frame.
If a contract requires a party to do something, it is referred to as...? Forbearance Closing Consideration Performance
Performance
If a contract requires a party to do something, it is referred to as...? Performance Forbearance Closing Consideration
Performance
The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public is known as...? Police power Escheat Eminent domain Taxation
Police power
Once TREC approves a form drafted or edited by the Broker/Lawyer Committee, the form is considered...? Void Reviewed Recorded Promulgated
Promulgated Promulgated contract forms are forms that are both approved and required by the Texas Real Estate Commission. These will be used by agents and brokers alike during transactions to make the agreement's official.
Ownership in a cooperative consists of which of the following...? Proprietary lease Title Deed Real property
Proprietary lease- A proprietary lease, also referred to as an occupancy agreement, gives a shareholder in a housing cooperative the right to occupy a particular dwelling unit.
According to TRELA, real estate brokers are unauthorized to do which of the following...? Provide legal advice Market properties Advertise properties Earn a commission from the sale of a property
Provide legal advice
The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant is referred to as the...? Right of possession Right of disposition Right of ownership Right of survivorship
Right of survivorship
Section 1101.155 of the Texas Real Estate License Act deals with which of the following...? Rules regarding broker conduct Rules regarding agency relationships Rules regarding the Texas contract forms Rules regarding independent contractors
Rules regarding the Texas contract forms
The TREC form OP-H is used for which of the following reasons...? Agent disclosure Seller disclosures Buyer disclosure Attorney disclosures
Seller disclosures--Seller's Disclosure Notice (Form ID: OP-H) The purpose of the seller's disclosure is to make clear what appliances, equipment, and features exist on the property; whether or not these items are working; if the seller knows of any defects or malfunctions in critical systems; if certain red-flag events like termite treatment, previous fires, or flooding have occurred; the need for repairs; and the existence of unpermitted additions, unpaid HOA fees, violations of deed restrictions, lawsuits, or conditions that "materially affect the health or safety of an individual."
Real property that is owned by only one person is referred to as...? Severalty ownership Tenancy in common Joint tenancy Community property
Severalty ownership
A State law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...? Statute of Limitations Statute of Contracts Statute of Frauds Statute of Agency
Statute of Frauds
A seller can limit their liability by completing the seller disclosure form...? T (True) F (False)
T (True)
A condominium is considered real property...? T (True) F (False)
T (True) Condominium - A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property.
The duties and powers of TREC are described in which of the following documents...? TRELA DTPA NAR RESPA
TRELA The Texas Real Estate Act (TRELA) is state legislation that sets standards for how real estate agents conduct themselves in Texas
The DTPA helps ensure agents do not do which of the following...? Help sellers market their property Discriminate against buyers Take advantage of a buyer's lack of knowledge All of the above
Take advantage of a buyer's lack of knowledge
A charge on real estate to raise funds to meet public needs is known as...? Administration Eminent domain Taxation Condemnation
Taxation
Who is responsible for enforcing the Texas Real Estate License Act...? Texas Real Estate Commission Texas Bureau of Real Estate Texas Congress Governor of Texas
Texas Real Estate Commission
The acronym TRELA refers to which of the following...? The Real Estate License Administration The Real Estate Legal Act Texas Real Estate License Act Texas Real Estate Legal Administration
Texas Real Estate License Act
The requirements to become a licensed real estate agent in Texas are described in which of the following documents...? Texas Real Estate Certification Act Texas Real Estate License Act Texas Employment Act Texas Independent Contractor Act
Texas Real Estate License Act- The act establishes a code of ethics and standard of conduct for the behavior of real estate salespersons and brokers, regarding both their treatment of consumers and competition. It establishes disciplinary proceedings, penalties, and civil or criminal liability.
What is the Broker Lawyer Committee?
The Texas Real Estate Broker-Lawyer Committee drafts and revises all contracts promulgated by TREC. It consists of six members appointed by the Commission, six members appointed by the State Bar of Texas, and one public member appointed by the Governor's Office.
What is TREC?
The Texas Real Estate Commission is the state agency that governs real estate practices in the state of Texas. The Texas Real Estate Commission is composed of nine members appointed by the Governor for six-year terms. Six members must be licensed real estate brokers. Three members must be members of the general public who are not regulated by the Commission.
The evidence of right which a person has to the ownership and possession of land, commonly considered as a history of rights is known as...? Deed Chattels Title Bundle of rights
Title
A contract that is legally sufficient and authorized by law is considered...? Valid Void Unenforceable Formal
Valid
That which is capable of being adjusted void, but is not unless action is taken to make it so is considered...? Express Implied Voidable Executed
Voidable