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What's the maximum urban homestead size in Texas?

10 acres

title report

A report issued after a title search by a title insurance company, listing all defects and encumbrances of record

title examination

A search of the public record to determine the quality of a title to real property.

What is the difference, if any, between a TREC-approved form and a TREC-promulgated form?

An approved form is optional; a promulgated form is required.

Estate in severalty

Ownership by one person, one corporation, one partnership

Tenancy in Entirety

Special joint tenancy between marriages, neither party ca sell interest without the other. They must either divorce or both agree to sell.

defeasance

The annulment or voiding of a deed or contract.

Fannie Mae

The government-sponsored enterprise responsible for guaranteeing and funding home mortgages

amendement

a written change made to the Constitution

How can an easement be terminated?

abandonment

PCB

(Polychlorinated biphenyls) are synthetic chemicals widely used from the 1930s to the 1970s in industrial products such as heat exchange fluids, paints, plastics, and lubricants

addendum

(n.) a thing that is added; an appendix or addition to a book or written document

surface rights

Ownership rights in a parcel of real estate that are limited to the surface of the property and do not include the air above it (air rights) or the minerals below the surface (subsurface rights).

what kind of estate is a homesteaed

a legal life estate

What is the buyer of a condominium required to pay that a co-op buyer isn't?

mortgage recording tax

conventional loans

real estate loans that are not insured by the FHA or guaranteed by the VA

Mindy and Seth have had to terminate their TREC One to Four Family Residential Contract (Resale). Both parties signed the request to release the earnest money, but only Mindy submitted a written demand for the funds. How many days does Seth have to submit a written objection after receiving notice from the escrow agent of the demand?

15 days

deed of trust

A deed to real property, which serves the same purpose as a mortgage, involving three parties instead of two. The third party holds naked title for the benefit of the lender. Beneficiary (Lender), Trustor (Borrower), Trustee (Third Party)

joint tenancy

A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition.

ginnie mae

A government agency that plays an important role in the secondary mortgage market it guarantees mortgage backed securities using FHA insured and VA guaranteed loans as collateral.

freddie mac

A government supervised enterprise established to purchase primarily conventional mortgage loans in the secondary mortgage market.

Gross Lease (commercial)

A lease of property according to which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses. Most residential leases are gross leases.

Net lease (commercial)

A lease whereby the tenant pays rent and utilities plus either property taxes or hazard insurance or maintenance of the unit.

a lis pendens

A pending notice of a lawsuit giving notice of a possible claim to the property

kick-out clause

Allows the seller to keep the property on the market with full disclosure in the multiple listing service that there is a contract in place, but other offers are welcome. If a new offer is made, there is a specified time (usually no more than 24 to 72 hours) for the original buyers to remove the home sale contingency and proceed with the contract.

Fee Simple Subject to Condition Subsequent

An estate carrying the limitation that, if it is no longer used for the purpose conveyed, it reverts to the original grantor by the right of reentry.

fee simple defeasible

An estate which may be lost on the occurrence or nonoccurrence of a specified event.

tenancy at will

An occupation of space for an indefinite period which can be terminated by either the lessor or lessee at any time.

riparian rights

An owner's rights in land that borders on or includes a stream, river, or lake. These rights include access to and use of the water.

Fee Simple Determinable

An ownership in which the estate is held " so long as" or "during the period" a condition or limitation is maintained.

volatile organic compounds (VOC)

Chemical-emitting gases or solids from interior products and materials that can cause short-term or long-term adverse health effects.

tenancy in common

Co-ownership of property in which each party owns an undivided interest that passes to his or her heirs at death.

a like-kind exchange

Exchanging one fixed asset for another fixed asset that has similar functionality. tax-deferred exchange

estate for years

Lease for a definite period of time

government loans

Mortgages insured or guaranteed by the U.S. Government

Per the TREC One to Four Family Residential Contract (Resale), when is the seller required to give the buyer possession of the property?

On the date indicated in the contract

fee simple interest

One who has ownership rights of real estate that could continue forever and which provide that no other person can claim to be the owner of or have any ownership

sub surface rights

Rights to use the space below ground level and to extract the natural resources lying below the earth's surface.

reversionary rights

The lessor (landlord) grants the right of possession to the lessee (tenant) but retains the right to retake possession after the lease's term has expired

timeshare use

This type of timeshare ownership does not convey ownership, just the right to occupy the property for the period of time set forth in the timeshare contract.

hypothecation

To pledge property as security for an obligation or loan without giving up possession of it.

prepayment penalty

a monetary penalty imposed on a borrower for paying off a loan before its intended time

Jacqueline found a ready, willing, and able buyer for her client's condo, with a sales price of $20,000 more than the asking price. However, the appraisal came in just under the asking price. Which number will the lender use to calculate the loan-to-value ratio?

a smaller number

promissory note

a written contract with a promise to pay a supplier a specific sum of money at a definite time A promissory note is a negotiable instrument and can be transferred to a secondary holder who has the right to enforce the note's terms.

Because of where his property is located, Weston is required to present any prospective buyers with a notice as to the legal and economic risks of purchasing coastal property that is near a beach. Which TREC addendum is Weston required to include as part of the sales contract?

addendum for property located seaward of the gulf intracoastal waterway

operation of law

an individual acquires rights or liabilities automatically due to law and not through an agreement or act of their own.

With a deed of trust, who or what has equitable title to the property?

borrower

How does a lender in the primary mortgage market earn money when a loan is originated?

by charging loan origination fees

what is an example of a primary mortgage market

citibank commercial lenders operate in primary mortgage market

The assessed value of a condominium is usually higher than a similar ______ because of outright ownership.

cooperative

With cooperatives, the resident's share of mortgage interest and real estate taxes is ______.

deductible on personal income tax returns

Robin has obtained a loan to purchase a home. Which of the following serves as SECURITY for that loan?

deed of trust

Which of the following properties requires a lead paint disclosure?

duplex built in 1959

Which government power allows it to convey title to a property involuntarily, while paying the property owner?

eminent domain

Nina signed a six-month lease with her landlord. When her six months were up, she moved out without being required to give notice, and the landlord rented to a new tenant. What type of tenancy did Nina have?

estate for years

what are some of the sellers fees

existing liens, preparation of the deed, and half of the escrow fee

due process

fair treatment through the normal judicial system, especially as a citizen's entitlement.

If Acme Bank, a primary lender, wants to sell its loans on the secondary market, it would be easier for it to do so if its loans meet ______.

fannie mae and freddie mac guidelines

A buyer and seller sign a sales contract in Texas on Feb. 15. It provides a 7-day deadline for the buyer to deposit earnest money. The buyer is in default if they wait until ________ to deposit the earnest money.

feb 23

Which type of an estate doesn't end automatically when the stated event or condition occurs?

fee simple subject to a condition subsequent

pur autre vie

for the life of another

refliction

gradual receding of water, which uncovers new land

When Will was found guilty of violating the Deceptive Trade Practices Act, the actual damages to his client were $7,000. But the court required Will to pay $21,000. Why might this be?

it was an intentional violation

Siblings Julia and Gene are co-owners of a small retail building in which a tanning salon is currently operating. Gene really wants to leave his ownership interest to his son when he dies, but the way in which they own the property doesn't allow him to do so. What type of ownership do they have?

joint tenancy

A contract is executed in Texas on June 1. What is the effective date on which all contingency deadlines will be based?

june 2

You're representing a buyer of a condo. You ask for CC&Rs and __________.

minutes of the last several association meetings

proration

need to be calculated as of the closing date and are apportioned between the parties

What type of loan fails to meet the criteria set forth by Fannie Mae and Freddie Mac?

non-conforming loan

Stacy and her husband, Blake, have a special lease agreement in which they, as the land owners, receive a cash payment for executing the lease, with more to come if the lessee's drilling efforts are successful. What type of commercial lease do Stacy and Blake have with the lessee?

oil and gas

Which of the following statements about counter-offers is true?

once a counter-offer is made, the prior offer is cancelled

In Texas, the effective date of a contract, on which all deadlines are based is _______ the executed date of the contract.

one day after

In what way is a townhome similar to a single-family detached home?

ownership includes both the structure and the land

Lester is interested in a two-bedroom unit in a cooperative. A residence in a cooperative, unlike a condominium, is legally considered ______.

personal propety

Which phase of the environmental site assessment involves addressing any on-going or potential issues?

phase IV: management

Which government power is used to do what's right for the public good where the owner may or may not be compensated?

police power

Which part of a loan is the agreement to REPAY the debt?

promissory note

The Texas Real Estate Commission is the only entity that can ______ contract forms, making their use mandatory by real estate licensees in Texas.

promulgate

Which section of the TREC One to Four Family Residential Contract (Resale) identifies charges that must be adjusted to the day of closing?

proration

homestead law

protect homeowners from losing their homes to general creditors

In which market do lenders purchase packaged loans?

secondary mortgage market

Harrison is acting to assist both the seller and the buyer in a single sales transaction. Which of the following representation options will he check as part of the Broker Information section in TREC's One To Four Family Residential Contract (Resale) ?

seller and buyer as an intermediary

arbitration

settling a dispute by agreeing to accept the decision of an impartial outsider

During the earnest money demand process, how many days after receiving a request to send a release of earnest money notice to the escrow agent do the parties to the transaction have to respond?

seven days

How many members does TREC appoint to the Broker-Lawyer Committee?

six

Which of the following statements is true regarding the financing of a cooperative purchase?

some lenders refuse to offer loans for cooperative purchases

Ann Marie is a tenant with a triple net lease. Per her lease, she pays for which of the following expenses related to the property?

taxes, maintenance, insurance

What is the name of a term which explains the complexity of property ownership rights and how rights for a single property can be "owned" by multiple parties at the same time?

the bundle of rights

Per TREC's One to Four Family Residential Contract (Resale), who is responsible for completing the contract and earnest money receipt?

the escrow agent

automatic liability

the law says you are automatically liable if you do certain things

Tenant A is leasing commercial property from the landlord. Tenant A then sublets to Tenant B. Which of the following parties have a sandwich lease?

the original tenant and the landlord

litigation

the process of taking legal action

The secondary mortgage market serves a very important role in real estate finance. Which of these statements best describes that role?

the secondary market purchases loans from primary lenders and helps keep credit available to loan originators

TREC is made up of nine members, all of whom are appointed by the governor, with the advice, consent, and approval of ______.

the senate

triple net lease

the tenant pays the real estate taxes, maintenance, and insurance

Which of the following statements about limited liability companies (LLCs) and limited liability partnerships (LLPs) is true?

they are taxed as partnership

Which of the following addenda is required as part of the TREC residential One to Four Family (resale) contract when the buyer needs to obtain a mortgage loan from a lender to purchase the property?

third party financing addendum

Sheila owns a timeshare that gives her ownership in the property for a certain number of weeks per year in perpetuity. What type of timeshare is this?

timeshare estate

default

to fail to act

lead can be found in paint and...

water pipes