Texas principles of real estate - part 1

In order to obtain a real estate license, an applicant must be at least how old?

18

Real estate licenses are issued for a period of time not to go over how many years?

2

The qualifying real estate principles course needs how many class room hours.

60

Listing Contract

A contract in which a property owner employs a real estate broker to market the property described in the contract.

partition

A division of real or personal property or the proceeds therefrom among co-owners.

Market comparison approach

A means of comparing similar type properties, which have recently sold, to the subject property. Commonly used in comparing residential properties.

limited partnership

A partnership consisting of one or more general partners and limited partners in which the general partners manage and control the business affairs of the partnership while limited partners are essentially investors taking no part in the management of the partnership and having no liability for the debts of the partnership in excess of their invested capital.

residential property

A type of property that includes one to four dwelling units.

assessed value

A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.

Each spouse in a community property has equal rights to which of the following?

Alienation, management, testamentary disposition.

A joint tenancy is terminated when which of the following ceases to exist?

All of the above

General Agent

An agent with full authority over one property of the principal, such as a property manager.

Living trust

An agreement where the trustee holds legal possession of a fund or assets that belong to another person, the beneficiary, and it is created while the person is alive.

limited partnership

An arrangement by which partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnerships obligations.

Corporation

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. A corporation is a creature of law having certain powers and duties of a natural person. Being created by law it may continue for any length of time the law prescribes.

Improvements

Changes or additional made to a property, such as walls and roads. These typically increase the value of a property, except in some cases of over improvement.

A non-profit organization is looking to purchase a church. An appraiser was hired to assess the value of the church. What appraisal method was used?

Cost approach

Which affects supply.

Cost of labor

If a real estate salesperson terminates their employment with their sponsoring broker, the license is considered?

Inactive

real estate

Land and everything permanently attached to land.

property development

Large land

The business structure combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of corporation?

Limited liability company

A contract in which a property owner employs a real broker to market the property described in the contract.

Listing agent

beneficiary

One entitled to the benefit of a trust.

How is ownership in a community property between a husband and wife divided?

Ownership is divided equally among the owners

A division of real or personal property or the proceeds therefrom along co-owners is known as?

Partition

industry property

Property that is used by companies or persons for manufacturing, warehousing, or the assemblage of components.

The pre-licensing courses needed to obtain your real estate license are considered what type of courses.

Qualifying education courses

The market comparison approach is used for this property.

Residential

The right of surviving tenant or tenants to succeed to the entire interest of the deceased tenant is known as?

Right of survivorship

If a person's license has been expired for more than 6 months, they are required to do which of the following in order to re-activate their license...?

Satisfy the education requirements and retake the State exam

Property owned by one person only is referred to as?

Severalty Ownership

Commercial Brokerage

Shopping centers etc, investment property, proper understanding of zoning laws.

A real estate agent is an example of what type of agent?

Special agent

The amount of goods offered for sale within a given market at a given price during a given time.

Supply

An ownership of realty by two or more persons, each of whom has undivided interest, without the "right of survivorship" is known as?

Tenancy in common

This act established the real estate licensing requirements in Texas in 1939?

Texas Real Estate Dealers Act

Who holds the real estate license of an agent?

The agent's sponsoring broker

A licensee's license may be suspended or revoked if which of the following occurs...?

The licensee is convicted of a felony

customer

The party the agent brings to the principal as seller or buyer of the property.

value

The present Worth of future benefits.

Right of Survivorship

The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant; the distinguishing feature of a joint tenancy.

Air Rights

The rights in real property to the reasonable use of the air space above the surface of the land.

Bundle of Rights

The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property.

Demography

The study of the social and economic statistics of community.

cost

The total dollar expenditure for labor, materials, and other items related to construction.

Joint Tenancy

Two or more people holding equal interest in a property, with the right of survivorship. Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship, i.e, the right to share equally with other surviving joint tenants in the interest of a deceased joint tenant.

inspector

Work for buyers to determine the condition.

Limited Liability Company (LLC)

a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

A property manager is an example of what agent?

general agent

In this type of arrangement, partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership's obligations...?

general partnership

Special purpose property

A category of real property created as a result of combining the land and its improvements for a single highest and best use.

Trusts

A legal device whereby one person transfers ownership of property to someone else to hold or manage for the benefit of a third party.

agent

A person authorized to act on behalf of another.

Fiduciary

A person in a position of trust and confidence, as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency.

Real Estate Broker

A person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee.

Real Estate Salesperson

A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker.

Non-homogeneity

A physical characteristic of land describing that land as a unique commodity

A person authorized to act on behalf of another is known as a?

Agent

Special Agent

An agent with limited authority to act on behalf of the principal, such as created by a listing.

Cost Approach

An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land.

Mixed Use Property

Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections.

An evaluation of a property's value based on a given point in time that is performed by a professional appraiser during the mortgage origination process.

Appraised value

Inspectors

Buyers benefits

Properties with 5 or more dwelling units are?

Commercial property

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 referred to as a?

Corporation

Price is typically equal to the cost of the property?

False

Value is the same as price.

False

A person in a position of trust and confidence as between principal and broker, is known as a?

Fiduciary

Apartment Locators

Finds apartment units, negotiate leasing.

Mark is looking to purchase a commercial office building. An appraiser was hired to assess the value of the building. What appraisal method did the appraiser use?

Income approach

Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship is known as...?

Joint tenancy

Appraisers

Lenders benefits bank or mortgage company

Latest empor

Let the buyer beware. The buyer must examine the goods or property and buy at the buyer's own risk.

Income Approach

One of the three methods of the apprise process generally applied to income producing property, and involves a three step process- 1. Find net annual income, 2. Set an appropriate capitalization rate or "present worth" factor, and 3. capitalize the income dividing the net income by the capitalization rate.

Appraiser

One qualified by education, training and experience who is hired to estimate the value of real and personal property based on experience, judgment, facts, and use of formal appraisal processes.

Leasing and property managers

Operate property for owner, collecting rent, maintaining insurance.

Community Property

Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse. Each spouse has equal rights of management, alienation and testamentary disposition of community property.

commercial property

Property that produces rental income or that is used in business. Properties with five or more dwelling units are considered commercial property.

Which of the following is exempt from having to obtain a real estate license to buy or sell real estate on someone else's behalf?

Someone acting under a power of attorney

Fiduciary Duty

That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure.

Real Property

The aggregate of rights, powers, and privileges conveyed with ownership of real estate.

price

The amount a purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding a transaction.

demand

The amount of goods consumers are willing and able to buy at any given price during any given time period.

supply

The amount of goods offered for sale within a given market at a given price during a given time period.

Depreciated Value

The basis of depreciable asset used to compute the taxable gain from its sale, the basis is acquisition cost plus capital improvements less accrued depreciation.

brokerage

The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate.

Insured Value

The cost of replacing a structure completely destroyed by an insured hazard.

principal

The employer of an agent.

Mineral Rights

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

land

The material of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards as well as downwards.

Which of the following factors can impact the value of real estate.

Topography, Prevailing winds, proximity to transportation.

Real estate agents and brokers must be careful not to provide legal advice to their clients.

True

Real estate prices are directly related to supply.

True

General Partnership

an arrangement by which partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership's obligations.

Partnership

an association of two or more people who operate a business as co-owners and share in the business profits and losses.

The party the agent brings to the principal as seller or buyer of the property is known as the?

customer

Improvements typically ............ in value?

depreciate

Which of the following is a fiduciary duty owed by an agent to their client?

disclosure

The employer of an agent is known as the...?

principal