Real Estate Principles 1

Annete really wants to move to San Fransisco, but she's unsure she'll be able to afford to live there. Housing is very expensive. What economic characteristic does this reflect?

Scarcity

Real property tax lien is

Specific & Involuntary

How is equity calculated?

Subtract loan balance from home value.

Conversion means to __________?

Take money from an escrow account and use it for someone else who is not entitled to it.

When is it a sellers market?

When supply is low and demand is high

Which of the following best describe a listing agreement?

A legally binding, written contract between a property seller a listing broker.

A party to a transaction on the person for whom the agent acts' is the definition of ___________.

A principle

A group of 26 different families shared ownership of a vacation condo. Each spend two weeks there.

Timeshare

Whats the purpose of testing discrimination?

To uncover hidden discrimination

Which of the following terms refers to the dimensions, physical features, and contours of land?

Topography

Which of the following terms refers to the dimensions, physical features, and contours of the land?

Topography

Bert terminated his excusive right to sell listing agreement with Scott, his listing broker, without cause. Burt may legally do this as long as?

Willing to pay Scotts commission anyway.

Mrs. Jones is renting out the upstairs of her home. Perfers femals and will only allow a single heterosexual femal. Can she legally do this?

Yes/she is the owner occupant of a single family principle.

Which of the following does the Texas Free Enterprise and Anti-Trust Act of 1983 makes unlawful?

Any contract of conspiracy resulting in the substantial decrease within the state.

Which type of value is used to calculate property taxes?

Assessed Value

Anastasia wants to get her real estate license and bring people together. She will be involved in?

Brokerage

Which of the following describes a modular home?

Built using pieces and very efficient

Which statement describes a code of ethics?

Guidelines for conduct

The Clue report?

Insurance claims on a property for certain periods of years.

Brandon has a right-to-use timeshare. What can he NOT do with this type of timeshare?

Pass to heir

Which description best fits that of a rural homestead in Texas?

Property is located in the country and is limited to 200 acres for a family

Which description best fits that of a rural homestead in Texas?

Property located in the country limited to 200 acres for a family.

Barbara, a Texas sponsoring broker for a Longhorn Reality, paid Gwendolyn, a buyer, a portion of the commission Longhorn received from the sales transaction. This is known as ________?

A rebate

When HUD receives a complaint, whats the next step?

Forwards the complaints to the Texas Workforce Civil Rights Division.

When HUD receives a discriminatory complaint from Texas what step does it take?

Forwards to Texas Workforce commissions civil rights division

Which of the following statements is related to the power of taxation is true?

Property tax liens priority over all other liens on the property in most states.

When accepting compensation which of the following statements is most accurate, according to the NAR code of ethics?

A license shall not accept compensation from more than one party to a transaction without consent of all parties.

Constitutes fraud in real estate according to the Fraud in Real Estate & Stock Transaction statute?

A listing agent purposely fails to mention the structural damage caused by a recent electrical fire in the wall.

What's the permanent marker used primarily for marking datums when measuring elevation?

Benchmark

In real estate, what are emblements?

Cultivated crops

Refused to show in areas where people are older and no one has children?

Family Status

Jared, a seller, has found his own buyer and wants to terminate his exclusive right-to-sell listing agreement with Sue, his listing broker. Can he do so without penalty?

No, listing agreement is contractually binding.

Does an on site manager of an apartment need to hold a real estate license?

No, not required

What's one benefit of Government using power of escheat?

Put it back to good use for public

Whets the best term for the illegal practice of nudging buyers away from towards a specific area based on the presence of or absence of protected class?

Steering

Absent a legal description, what are other ways to identify a property?

Street address and tax map personal identification #

What's it called when a lien holder allows another lien holders claim to have priority over their own?

Subordination Agreement

Conversion means_____

Take money from an escrow account and use it for someone else who is not entitled to it.

Why do ethics matter?

Upholds the profession

Topography

Utilities and dwellings can be located

Whats the best definition of legal purpose?

Written for a lawful objective

Homestead exemptions _________property taxes for all homeowners by protecting a certain amount of a Texas homes value from tax.

Decrease

Which of the following may an owner place on the land when its sold to limit the use of the property?

Deed Restrictions

Fee simple ____ includes two categories/distinguished in part of ownership/ can be regained by original owner?

Defeasible

Broker assigns to represent one party in-house transaction.

Designated

Which of the following is one of a listing agent's duties?

Maintain seller confidentiality

The ESAC does which of the following?

Makes recommendations for improvements to real estate education

What is the value a buyer and seller have to agree upon?

Market Value

"Beginning at a stake and stones about 30ft from the center of the brook that runs across the road south westerly from the dwelling house of the late Henry Nelson----" Is an example of what type of legal description?

Metes and bounds

In the real estate market, when demand exceeds supply, what does it mean?

More buyers than available homes, and prices will be higher.

What are two primary types of income tax deductions homeowners may take for their primary residence?

Morgage interest and property taxes

Can an unlicensed individual help someone find a new apartment if no compensation is paid?

No, because a license is required

An unrepresented _________ who's a party to a transaction is known as a principle?

Client

What does the metes and bounds system use to develop a property's legal description?

Compass headings and directions

Which of the following real estate- related activities may be performed by someone who does not hold a real estate license?

Condemning property on behalf of the state.

Which of the following elements is always required for a real estate contract to be valid?

Consideration

Which of the following elements is always required for a real estate contract to be valid?

Consideraton

In order to behave ethically, what can mark do?

Cooperate with Brandon/best interests of clients

Which option best defines an equitable lien?

Created by a court of common law; doesn't give the right to possession of the property

Which of the following statements is true about Texas Trust accounts?

If they are interest bearing accounts, all interest must be paid to the parties to whom funds are disbursed.

Which real property ownership rights (other than married couples) means there's equal ownership shares for undivided possession rights?

Joint Tenancy

Judge awarded $30,000, Savanna was unable to pay, so the court placed a _________on her home.

Judgement

Which area of real estate covers lease agreements?

Landlord and Tenant

In contact law, a "legally competent party has the ___to enter into a contract?

Legal and Mental Capacity

What happens to a sales agents license if the sponsoring broker dies?

License becomes inactive

Eva and Lynn shared the home with nephew, Drew to whom Stella willed her share of the property to. What type of ownership is this?

Tenancy in common

Jim lives in Texas. If he dies with no will in place, and no creditors or heirs can be found, all of his personal and real property will revert to the ?

The state of Texas

Which of the following best describes condominiums ownership?

The space inside the unit belongs to the unit owner, and all owners also share in the ownership of the common elements.

Whose interests are protected by homeowners insurance?

The buyer and lender

What is the starting point for any land surveyor who has been asked to perform a survey

The most recent review of existing historical record

Which of the following is the best example of the tie-in arrangement?

business requires its clients to also purchase services from another business.

What type of involuntary lien is placed on a person's estate after their death if there are unpaid debts to creditors?

deceased persons debt lien

When does a seller's market occur? (Don't think from a buyer pov)

supply is low and demand is high

Which of the following describes a manufactured home?

traditional mortgages difficult to obtain

As supply decreases price goes?

up/increases

Although Ophelia hasn't signed a buyer agency agreement with Randall, she continues to ask him to show her homes, and Randall does. What type of agency is this considered?

Agency by ratification

There are ______ members of the Education Standards Advisory Committee.

12

Real Estate sales contracts must be valid, express, bilateral, ___________, and executed or executory.

Enforceable

Leasehold estate for an unknown period of time with either party permitted to terminate lease by giving notice to the other party?

Estate at will

Who does the DTPA define as a consumer for the purposes of filing a lawsuit?

25 million or less

Broker applicants in Texas must have how much experience as an active agent?

4 years

Which of the following statements about community property rights is true?

9 states have community property rights

When measuring elevations. What is used instead of point of beginning?

Datam

Leasehold estate for an unknown period of time, either party permitted to terminate lease by giving notice to the other party?

Estate-At-Will

When one or more contract terms need to be completed

Executory Contract

ACME Realty flat fee, menu based services. Another company decides to not show ACME listings to drive out business. What is this?

Group Boycotting

Texas resident Sonny, who doesn't have a real estate license, helps his brother's neighbor, Nicole, sell her house. He charges her a commission of $3,000, which she happily pays. Which of the following is true in this situation?

Nicole may have to pay administrative and civil penalties

Five competitive brokers firms in the same area have the standard commission rate. What per se anti trust violation was comitted?

None, intent needs to be proven

What might the government do if property owners fail to pay taxes on their property?

Place a lien on property

Which of the following groups of protected class is included in the Nar Code of Ethics?

Race, color, religion, sex, disability, family status, national orientation, gender identity.

What's the best definition of real property?

Real estate. plus all of the interest, benefits, and rights included in ownership.

!934, when Federal Housing Administration was created it adopted the practice of crossing off cities and neighborhoods risky and refused to insure loans for purchase in those areas. What is this action called?

Redlining

License _______ clients, and __________ customers?

Represent, and assist

Subcontractor wasn't honoring commitment so you take him to court. What does this do to the contract?

Rescinding contract unilaterally

What type of timeshare involves a buyer agreeing to pay a one-time purchase price and an annual maintenance fee, and in return selecting an accommodation time and having the right to use the unit for a specified number of years?

Vacation

Can a real estate license expired after more than 6 months be renewed in Texas?

Yes just pay late renewal fee

Trustee

makes sure terms of trust are carried out

Which legal description method uses compass headings and directions?

metes and bounds

Manufacturing and large businesses is

mixed use

When can specific performance be enforced under a sales contract?

one party didnt meet the terms required in a timely manner and is now being required to comply with.