REAL Estate U part 3 (LAW OF CONTRACTS) ch 4,5,6

Optional TREC contract are designated by which of the following?

'OP'

A lead-based paint disclosure is required for all buildings built prior to?

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?

3%

Which of the following can force a judgement against an owner's property, even if the owner is protected as a homestead?

A mortgage lender

Which of the following may impact an owner's interest in a property?

ALL of the ABOVE a. Liens b. Easements c. Encumbrance

The increasing in land area resulting from the deposit of soil by the natural action of the water.

Accretion

A person appointed by the probate court to administer the estate of a deceased person who died intestate.

Administrator

When is a seller's agent entitled to be compensated?

After the agent finds a ready, willing, and able buyer

Which of the following is considered a bilateral contract?

All of the Above a. A lease b. A sales contract c. An independent contractor agreement

Which of the following is an example of an involuntary lien?

All of the Above a. Tax lien b. Mechanic's lien c. Judgment lien

According to the statute of frauds, which of the following contracts must be in writing?

All of the Above a. Contracts for the sale of real property b. Leases longer than 1 year c. Leases longer than 2 years

Which of the following information may be included in a listing contract?

All of the Above a. Location of lock boxes b. When a 'For Sale' sign can be placed in the yard c. The amount of commission to be paid to the broker

A contract can be discharged by which of the following means?

All of the above a. Full performance b. Assignment c. Novation

A lease must contain which of the following elements ?

All of the above. a. legally competent parties b. lawful objective c. offer and acceptance

A fibrous mineral found in many building materials that when improperly disturbed, can cause serious lung diseases in known as?

Asbestos

The transfer of legal rights and obligations by one party to another is referred to as?

Assignment

A sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river

Avulsion

A Buyer/Tenant Representation Agreement is considered what type of contract?

Bilateral contract

A listing contract exists between the client and the?

Broker

An employment contract that appoints a brokerage firm as a buyer's agent for the purpose of finding a suitable property for the buyer.

Buyer Agency Agreement

The illegal mixing of personal funds with money held in true on behalf of a client is referred to as?

Commingling

Taking private property for public use, with fair compensation to the owner is known as, (exercising the right of eminent domain)?

Condemnation

A broker who finds a buyer for a listing on the MLS is entitled to which of the following?

Cooperation fee

The basic rules establishing the rights and obligations of owners of real property within a subdivision or other tract of land in relation to other owners within the same subdivision or tract and in relation to an association of owners organized for the purpose of operating and maintaining property commonly owned by the individual owners

Covenants, Conditions, and Restrictions (CC&Rs)

A husband's interest in the real property of his wife.

Curtsey

Land benefiting from an easement appurtenant

Dominant Tenement

A wife's interest in her husband's real property.

Dower

A right acquired by one party to use the land of another party for a special purpose is referred to as a/an?

Easement

A right acquired by one party to use the land of another party for a special purpose.

Easement

Exists when a landowner has no access to roads and is landlocked.

Easement by Necessity

Obtained by use of the land of another for the legally prescribed length of time.

Easement by Prescription

This type of easements exists when a landowner has no access to roads and is landlocked?

Easement by necessity

A right of use in the land of another without the requirement that the holder of the right own adjoining land

Easement in Gross

A right of the government to acquire property for necessary public use by condemnation is known as (the owner must be fairly compensated)?

Eminent domain

An unlawful intrusion onto another's adjacent property by improvements to real property; e.g. a swimming pool built across a property line.

Encroachment

A claim, charge, or liability that attaches to, and is binding on real estate is referred to as a/an?

Encumbrance

The eating away of a coastline or land by the action of water, ice, and/or wind, or wearing away of a surface by corrosion or traffic.

Erosion

The reversion of the State of property in event the owner thereof abandons it or dies, without leaving a will and has no distributes to whom the property may pass by lawful descent.

Escheat

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 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?

Estate at sufferance

A typical lease is considered a/an?

Estate for Years

An estate which vests after the termination of the prior estate

Estate in Remainder

Property or estate ownership that reverts back to the grantor after a temporary ownership period.

Estate in Reversion

An estate at sufferance may lead to which of the following?

Eviction

A listing given to only one broker who is entitled to the commission of anyone sells the property during the term of the listing contract is referred to as a/an?

Exclusive Right to Sell Listing Agreement

According to the statute of frauds, all leases must be in writing?

False

Listing contracts are promulgated by TREC?

False

An inheritable estate in land providing the greatest interest of any form of title is known as?

Fee simple absolute

An estate that will end automatically when the stated event or condition occurs is referred to as a? (the interest will revert to the grantor or the heirs of the grantor)

Fee simple determinable

Absolute ownership of real property is known as a/an? a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person's life and descending to the person's heirs or distributees.

Fee simple estate

A contract that requires a party to not do something is considered a (. ) contract?

Forbearance

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

An estate of indeterminable duration is referred to a/an? (ex: fee simple or life estate)

Freehold estate

A quality of some asbestos that causes it to crumble, allowing toxic particles to escape into the air and lodge in people's lungs.

Friable

Which of the following is the best way to discharge a contract?

Full performance

A lease which provides for a varying rental rate, often based upon future determination is known as a? sometimes rent is based upon result of periodical appraisals; used largely in long-term leases.

Graduated lease

After a fee simple determinable estate ends, the interest in the property reverts back to the?

Grantor

A lease in which the lessor pays all costs of operating and maintaining the property and real property taxes is referred to as a?

Gross lease

An lease for the use of land only, sometimes secured by improvements placed on the land by the user is referred to as a?

Ground lease

A legal life estate in land that is owned and occupied as a family home is known as a?

Homestead

A lien imposed against property without consent of an owner is referred to as a/an? (ex: taxes, special assessments, federal income tax liens, etc.)

Involuntary lien

A tenant's right to occupy real estate during the term of the lease is referred to as a?

Leasehold estate

One who contracts to rent, occupy, and use property under a lease agreement is referred to as a?

Lessee

An owner who enters into a lease agreement with a tenant is referred to as the?

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?

Lien

A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate.

Life Estate

The owner of a life estate.

Life Tenant

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?

Listing Contract

Which of the following contracts describes how the real estate broker will be compensated?

Listing Contract

The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on.

Littoral Rights

A specific lien that gives security to persons or companies who perform labor or furnish material to improve real property is known as a?

Mechanic's lien

The landowner's ability to take minerals from the earth or to sell or lease this right to others.

Mineral Rights

An association of real estate agents providing for a pooling of listings and the sharing of commission on a specified basis

Multiple Listing Service (MLS)

Which of the following listing contracts are illegal in Texas?

None of the Above a. Net listing agreements b. open listing agreements c. exclusive agency agreements

Which of the following is the most commonly used promulgated contract form?

One to Four Family Residential Contract (resale)

Which os the following is an example of a non-exclusive listing agreement?

Open listing agreement

Which of the following are not considered promulgated contract forms?

Optional contracts

A lease in which the rent is determined by the amount of business done by the lessee is known as a? usually a percentage of gross receipts from the business with provisions for a minimum rental

Percentage lease

A contract that requires a party to do something is considered a ( ) contract?

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

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

The interest which a person has in lands or other property, upon the termination of the preceding estate. A future interest.

Reversionary Interest

The rights of a landowner or land occupier to use flowing water (such as a river) that is adjacent to the land

Riparian Rights

An independent contract agreement exists between a broker and a ?

Salesperson

A sum of money that the landlord requires of the tenant prior to the lease is known as a?

Security Deposit

The listing agent primarily represents which of the following?

Sellers

Land encumbered by an easement.

Servient Tenement

According to the listing agreement, a seller's broker is considered a?

Special Agent

A law establishing the time period within which certain lawsuits may be brought is known as the?

Statute of Limitations

The transfer of only part of a lease term with reversion to the lessee is known as a?

Sublease

The Texas promulgated contract forms can be found at the?

TREC website

An encumbrance against a property filed by the taxing jurisdiction for delinquency in paying real property taxes is known as a?

Tax lien

A charge on real estate to raise funds to meet public needs is known as?

Taxation

A property tenure that can be terminated at any time by either the tenant or the landlord is known as a/an?

Tenancy at will

How does a longer term lease typically impact the amount of rent paid?

The rent will be lower

What is the standard commission rate for brokers in Texas?

There is no standard commission rate

Listing contracts can be either a unilateral or bilateral contract?

True

Regardless if an agent helped obtain a listing contract, the agent's sponsoring broker still owns the listing?

True

The MLS allows a broker's listing to get more exposure?

True

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?

Voluntary lien