Real Estate Law - 1309 Quiz 1
Property taxes in Texas are assessed on which value?
Market Value
Which of the following statements is FALSE concerning the Texas Deceptive Trade Practices Consumer Protection Act (DTPA)?
"Waivers" of the consumer's right to sue under this law are common.
The legal description that identifies a parcel by specifying the shapes and boundaries of the perimeter of the property is the:
Metes & Bounds
Which of the following type of legal description is NOT used in Texas?
Metes & Bounds
Which type of legal description uses permanent reference marks (benchmarks), points of beginning (POB) and distances
Metes and bounds
Texas Uniform Condominium Act (TUCA) has a very specific provision concerning the right to terminate a condominium. Unless the declaration provides otherwise, and except for a taking of all the units by condemnation, a condominium may be terminated only by the agreement of ___________% of the votes in the association and each holder of a deed of trust or vendor's lien on a unit.
100%
The person purchasing U.S. real property from a foreign person, as well as settlement agents and real estate agents, are required to withhold a total of ____________________of the amount realized on the dispensation of their real property interest, under The Foreign Investment in Real Property Tax Act.
15% of the amount realized on the dispensation of their real property interest.
The required amount of hours in qualifying real estate courses for first renewal of a sales agent license is:
18 clock hours
How many days prior to the consummation of a real estate transaction must a lender provide the borrower with a completed Closing Disclosure (CD) according to Real Estate Settlement Procedures Act (RESPA)?
3 days
The Texas homestead old age property tax deferral applies to the owner-occupant of a residential homestead as long as an owner occupant is at least the age of:
65 years of age
In order to evict a lessee, a writ of possession must be issued. After the judgment is entered, the writ can be issued on the _______day after the judgment is entered.
6th day after the writ of possession is entered
What is a legal description?
A description of land that allows one to identify the parcel with reasonable certainty.
The requirements for mortgage lenders prohibiting the executing of mortgage loans without a good faith discrimination the borrower has a reasonable ability to repay the debt is:
ATR
The highest priority lien in Texas is a(n):
Ad valorem (according to value) tax lien
A witness will, by statute, must be:
All of these
To be effective the offer must meet certain legal requirements. It must be:
All of these
which of the following is required for my marriage by common law in Texas?
All of these statements required
The TUCA's requirements for a condominium declaration is:
All stated answers are correct
What types of payments must a landlord accept from the tenant, unless specified otherwise in the written lease?
All stated answers are correct
Which of the following statements can be considered true about Wind Rights in Texas?
All these are true
The basic formula for calculating the tax an individual pays on real estate is
Assessed (or Market) Value X Tax Rate = Tax Payment
In what loan situation would a grantee become primarily liable on the loan, and yet the grantor would still operate as a surety in the event the day is not paid for?
Assumption
Texas & federal courts are considered to be...
Both
under the DTPA, which of the following types of claims are prohibited?
Claims that concern professional services, the essence of which is the provision of advice, judgment, opinion
Any defect in the title to real property is referred to as:
Cloud on Title
A property that is owned by one entity in which the residents each have an interest and are granted the right to occupy a unit is called a:
Co-op
A form of real property with portions of the real property designated for separate ownership or occupancy, and the remainder of the real property designed for common ownership or occupancy solely by the owners of those portions is called a:
Condo
In the United States the government has 4 chief methods for control in the use of land which of the following is not one of them
Deed Restrictions
What is the primary method of private land-use control
Deed Restrictions
A 3party mortgage instrument with a "power of sale" clause is a:
Deed of Trust
Under RESPA, which of the following is NOT required to be provided to a prospective borrower:
Disclosure statements reflecting the ownership & financial rating of the lender
Which of the following is NOT an essential element for the creation of a contract?
Earnest Money
An area involved with litigation procedures & damage issues as well as substantive real estate law is:
Eminent Domain
when a person dies both without a will and without heirs, the ownership of the deceased's property will vest in the state of Texas under the legal concept of:
Escheat
An area outside but contiguous to a city wherein the city may impose certain regulations & restrictions is known as the city's:
Extraterritorial Jurisdiction
By a majority vote of 65% of the Texas legislature, the Texas constitution may be amended:
False
The part of the T-i-L Act that gives the opportunity to all consumers entering into a credit transaction, to back out of the transaction by midnight of the third business day after: (1) he/she has signed the documents to secure the credit; (2) delivery of the notice of the right to "back out"; or (3) delivery of all material disclosures, is called "Regulation Z".
False: It is called the "Right of Recission"
________________________liens attach to all property a debtor owns and a _______________________ attaches only to a parcel that was pledged as collateral on a loan.
General - Specific
Under the Texas Department of Insurance rules, a title company may fund at closing if the money brought by the parties to closing was cash, a wire transfer, certified checks, cashiers' checks, or other such forms of payment. These types of payments have become to be known as:
Guaranteed Funds
When may a Texas property owner repurchase property is taken by eminent domain to be used for public use?
If that public use is not utilized before the 10th anniversary if the date of the acquisition
The basic duty of a title company is to:
Indemnify the insured against any loss from defects in the title
In a commercial tenancy, the greatest rights are of the:
Landlord
A grant of an "estate in land" for a limited term with conditions attached is a(n):
Lease
Under the TILA-RESPA Integrated Disclosure rule (TRID), there are 2 forms used in most residential transactions. They are ________ that details the costs in a transaction & the _______ which gives a final accounting of the transaction.
Loan Estimate & Closing Disclosure
The immediate remedy a landlord has in the event that a tenant is about to abandon the premises of a home is to:
Obtain a distress warrant
Which of the following is NOT required in a forcible entry and detainer suit (eviction)?
Only the owner of the property may file for eviction
An agreement by which the owner of the property give another the right to purchase their property at a fixed price on specified terms. Is a(n)
Option contract
The right of survivorship means that when a co-owner dies his or her interest in the property automatically passes to :
Other co-owner
The condominium declaration creates contractual rights and regulations for the:
Owners of the Condo Units
individual ownership is considered considered
Ownership in Severalty
Which of the following is not a statutory estate recognized under Texas law?
Patent Rights
The government method used to regulate and enforce laws pertaining to land-use is:
Police Power
A regular mortgage is similar to a deed of trust except that there is no 3rd party trustee & no ____
Power of Sale Clause
A property for sale has a built-in oven and range which is permanently attached to the structure. The built-in oven and range will be considered ____________________, and will remain with the property unless otherwise contracted for between the parties.
Real Property
Which of the following is not required for a formal well in Texas?
Recorded in public record in the county where the deceased resided
Which of the following type of legal description has never been adopted in Texas?
Rectangular Survey
With an easement appurtenant, the parcel in which the easement crosses is referred to as the ___ estate & the parcel that benefits from the easement is called ___ estate
Servient tenement & dominant tenement
what is the purpose of having a document acknowledged?
So the document may be recorded
If a dishwasher costs $200, has a five-year life, and has no salvage value, the taxpayer is allowed 20% each year ($40) as a depreciation deduction fro gross income. This type of calculation is called the
Straight Line Method
Which of the following factors is not used to determine if an item is real estate or personal property?
Suitability
Which of the following does NOT fall within the jurisdiction of the justice of the peace courts in Texas?
Suits concerning issues covered by Tx constitution.
What law establishes the statutory guidelines for condominiums in Texas?
TUCA
Ownership of undivided interest be more than one person is:
Tenancy in Common
When there is no special circumstances to compel a different conclusion, ownership by multiple parties in Texas is presumed to be:
Tenants in Common
The title insurance industry is very tightly regulated by:
Texas Dept of Insurance
Which of the following is not allowed to record documents electronically in Texas?
The General Public
Under a Texas statute, what is the landlord's duty when a tenant breaches a lease by moving out early?
The landlord must mitigate the damages by using objectively reasonable efforts to fill the premises when a tenant breaches the lease.
Texas has specific statutory guidelines for the use, enjoyment & appropriation of its water resources. These water rights are governed by the Texas Water Rights Adjudication Act which recognizes that:
These laws with respect to water rights are contained in the Water code, which basically gives all water rights to the States of Texas.
A consumer has the exclusive right to use and occupy a property during a particular time of year. This type of property is a:
Timeshare
An arrangement that provides consumers with the exclusive right to use and occupy a structure during a particular time of year is called a:
Timeshare
The leasehold estate that has an indefinite duration is an:
Title that is reasonably free from defects of record
Which of the following is NOT a type of title assurance used in Texas?
Torrens system of title registration
Real estate exchanges need not involve properties of equal value. For example, if you own debt-free a small office building worth $100,000, you could trade it for a building worth $500,000 with $400,000 of mortgage debt against it. This process in real estate is referred to as:
Trading Up
The primary source by which all laws are created is the
US Constitution
The controlling law for electronic transactions in Texas
Uniform Electronic Transaction Act (UETA)
The charging of an interest rate that is in excess of that allowed by law is called:
Usury
Which of the following is NOT a statutory damage recoverable under the Deceptive Trade Practices Consumer Protection Act (DTPA)?
a fine of up to $100,000
To change the homestead protection under the Texas constitution, there must be:
a vote by the people of Texas approving the change to the texas constitution
In forming your contract which of the following is required element of acceptance
all of these
The definition for "depreciation" by the Internal Revenue Service is:
an allowance by the Internal Revenue Service, for loss of value
Which of the following is not exempt under the TRELA?
an attorney license in Texas
Having a closing handled by a disinterested third party that does not represent either party yet has duties to both is called:
an escrow closing
In the typical residential closing, two transactions are closed at the same time. The first is the transaction between the seller and the buyer, and the other is between the _______________________ and the ___________________.
buyer and the lender
To put the entire world on notice of an interest in real property a person may record a document in public records. This is known as:
constructive notice
Vendor's liens and tenant's liens are examples of which type of liens?
equitable liens
Forcible entry and detainer is also referred to as:
eviction proceedings
Title insurance is a method by which a state-regulated insurance company, with a proven source of solvent funds, provides an insurance policy to assure the purchaser of real property, that his title is good and _____________________and that the insurance company will insure the title against claims against it, other than the printed "exceptions" listed in the policy.
indefeasible
By vesting delivery from the grantor at the time of deposit into escrow, the Relation Back Doctrine supports the theory of _______________.
irrevocability
Lis Pendens means:
law is pending
Mortgagee's title insurance policy protects ______________________, and the Mortgagor's title insurance policy protects ______________:
lender - buyer/borrower
In cases of family violence, the tenant ______________________.
may terminate a lease without liability to the landlord if a court order is issued to protect the tenant
A(n) _______________title policy is for the protection of the lender and the ____________________title policy is for the protection of the buyer of the property.
mortgagee's - owner's
When there is a "lessor" and "tenant" relationship, this creates a:
nonfreehold estate
Any activity that involves the conduct of any trade or business in which the taxpayer does not materially participate, such as rental activity for income-producing property, is referred to as:
passive activity
A unilateral contract is:
promise for an act
the legal description that identifies a parcel based on imaginary latitude and longitude lines
rectangular survey system
Which of the following is NOT a remedy that a landlord may use against a defaulting tenant?
removal of the front door
Corporations are owned by ____ and managed by ___ which are elected by ____:
share holders, officers, directors
If a natural person recording an instrument that transfers an interest in real property, you may strike which of the following items from the document?
social security number or driver's license number
You are the tenant in a lease space. You no longer need that space and wish to lease it to another tenant at a higher rental rate. To do this you would:
sublet or sublease the property to another tenant, if your original lease allows you to do that
A personal warranty by the grantor is provided to a purchaser in which of the following documents?
the deed
In a mechanic and materialman lien, the lien attaches to:
the entire property of the owner on which the work was performed
when a person dies intestate, The deceased's property then passes according to:
the statues of descent and distribution
Trade fixtures may be removed by a tenant as personal property provided:
they can be removed without material injury to the building
which of the following is not a primary concept in freehold states
they control the relationship between a landlord and tenant
The primary characteristic of tenancy in common is:
unity of possession
What does a title report reveal?
who holds title" to the subject property
Under the Real Estate Settlement Procedures Act (RESPA), a lender may require a borrower to deposit into an escrow account an amount for taxes and insurance not to exceed the amount attributable to the period between closing and payment PLUS an additional:
"two months" payment
What is the difference between arbitration & mediation?
In mediation, a 3rd party helps the parties to find their own resolution whereas in arbitration a 3rd party imposes resolution.
Which of the following is not a voluntary convert?
condemnation
earnest money is
customary but not required
The most commonly used mortgage instrument in Texas it was referred to as a:
deed of trust
To be effective a deed must be:
delivered and accepted
The laws that normally provides that the borrower may not convey the property to another without paying off the note or obtain the lenders approval is called:
due on transfer clause (formally called due on sale clause)
The right of one party to use the land on another for a specific use is:
easement
which of the following is not a requirement for a broker to be able to take legal action against the seller for the recovery of a commission?
have drafted the contract of sale and purchase between the seller and buyer
A police power that is used to regulate land use in cities is:
zoning
The rate charged by the lender as determined by applying the federal gov's definition of finance charge to the federal gov's definition of consumer credit is ______-
APR
When all of the recorded instruments relating to a parcel of real estate are assembled in chronological order, these are collectively referred to in Texas as a(n):
Abstract of title
The leasehold estate that has a definite termination date is known as an:
Estate for years
An estate that is limited to the happening of a certain event and when such event happens, the estate automatically terminates and reverts to the grantor is known as:
Fee on conditional limitation
The most commonly used deed in Texas that provide the buyer the highest warranty the law recognizes is known as a:
General Warranty Deed
Which of the following ones do not have the right of rescission under TILA?
Residential real estate loans
What is the name of the legal concept that states any writing between lines of a contract stands on & has equal footing with the remainder of the contract?
Interlineations
The Superfund Amendment and Reauthorization Act of 1986 creates a:
Lien in favor of United States
Which is a dominant estate under Texas Law?
Mineral Rights
which of the following deaths if having occurred on the property with a real estate agent be required to disclose?
Murder
Which of the following is not one of the 3 areas of real estate law
Non-profit
for which of the following reasons may creditor not foreclose on a Texas homestead?
Nonpayment of credit card debt and amount exceeding $50,000
Minors are defined by the Texas family code as:
People who have not yet attained the age of 18 years
Which type of lease is most commonly used in retail properties?
Percentage Lease
What are rollback taxes
Property Taxes charged when agricultural property is no longer used for agricultural purposes
which of the following is not considered separate property in Texas?
Property purchased with the earnings of just one spouse
Which of the following is NOT addressed in the Tx constitution?
Real Estate licensing
which of the following is not required before a document may be recorded of public record in Texas?
The document must include contact information of the person that recorded the document for the purpose of confirmation of the information contained in the document
Which of the following statements is not true concerning a commercial brokers laying for a commission?
The lien is assumed on transaction with a value over $5 million
it is illegal for a real estate broker to act as a dual agent and a real estate transaction in Texas.
True
The broker offers to List a homeowners house at no charge. This is conditioned on the groom of the seller do use only that brokers services in the purchase of the sellers next time. This can be considered a violation of anti-trust law as example of:
a "tying" agreement
The establishment of an agency relationship by the principal after the agency objective has been accomplished is:
agency by ratification
An irrevocable agency in which the agent has an interest in the property as part or all of his compensation is called:
agency coupled with an interest
In a real estate transaction the abbreviation "APR" stands for:
all stated above
Which of the following acts, when perform for another person in for a fee, is not an act for which a real estate license is required?
an attorney in fact authorized under a power of attorney to conduct not more than three real estate transactions annually
to acquire title by adverse possession in Texas, the person claiming that title must have used the property:
an open and continuous manner for the required period of time
a common type of partnership that involves a managing partner and a financial partner is known as a
joint venture
The issue of whether the homeowner is the legal title holder, or the lender is the legal title holder for the property until the loan is paid in full differs from state to state. In Texas the owner is the legal title holder. Texas is a
lien theory state
A "title" to real property that is free from reasonable doubt as to matters of law and fact, so that a prudent person, advised of the facts and the legal significance, would willingly accept said title, although that title need not be absolutely free from every technical and possible suspicion is called:
marketable title
The basic theories of legal descriptions that Texas uses are:
meats and bounds & the lot and block method
The two instruments in Texas signed by the buyer/borrower as a promise to pay and to provide the lender with collateral for the loan are:
note and deed of trust
Express contracts are:
oral or written contracts
Texas surface water rights kids all rights to the state of Texas under:
prior appropriation
A financing instruments, the actual promise to repay the loan under a specific amount, terms, and interest rates is accomplished with a:
real estate lien note