Texas Principals of Real Estate 1: Teacher Reviews

Indicate whether the following factors affect the supply or demand of residential housing: 1. A labor dispute at a brick factory 2. A major Collin County employer which is forced to close down 3. An increase in the home mortgage lending rate

1. Supply 2. Supply 3. Demand

The 7 sources of real estate law are:

1. US Constitution 2. Laws passed by congress 3. federal regulations adopted by the various agencies and commissions created by congress 4. state constitutions 5. laws passed by state legislatures 6. ordinances passed by cities, towns, and other local governments 7. court decisions.

What must a person do in order to be eligible to be called a Realtor?

1. possess certain personal and educational qualifications 2. pass an exam 3. become a member of NAR 4. follow prescribed standards of conduct and meet continuing education requirements

If there is an upsurge in demand for luxury homes in West Plano, under the theory of supply and demand, the price can be expected to _________.

Increase

These characteristics will affect a tract of lands ______ value.

Investment

What does NAR stand for?

National Association of Realtors

Suppose the unhappy home builder referred to in the above question appealed to a higher court and the higher court agreed with the home builder, the superior appellate court could _______ the decision of the lower court.

Reverse

Precedent

The requirements established by prior court decisions

True or False: If the Plano city council enacts a low detailing the standard by which new homes must be constructed in Plano this would be an example of one of the seven sources of real estate law.

True

True or False: The factors which affect the economic laws of supply and demand are always based entirely on the marketplace itself.

True

What are the four stages of the business cycle:

expansion (growth), recession (slow down), depression (the bottom), revival (recovery)

List the three physical characteristics of land:

immobility, indestructibility, non-homogeneity

List the four economic characteristics of land:

relative scarcity, improvements, permanence of investment, area preference (most important)

In what way, concerning how each is created, is the common law different from statutory law:

statutory law is derived from a legislative body, common law is based on tradition or court decision.

Common Law

the body of rules and principles founded on tradition and court decisions

Assume there is an abundance of land all around the town of Dumb-donkey, Texas. Why, then, is it possible that this land not counted as part if the supply of land available for home construction?

the cost for preparing the land for housing construction may be too great to be passed along the cost of building to the buyer.

Define Demographics

the study and description of a population

What is the purpose of the Texas Real Estate License Act:

to regulate real estate in Texas by protecting the public from fraud, dishonesty, or incompetence in the buying and selling of real estate.

By the same token, if there is an increase in the supply in middle income homes in the hypothetical town of Dumb-donkey, Texas, for example, the prices will _________.

Decrease

True or False: A person must have a real estate license to handle the sale of their own investment properties other than their home.

False

True or False: Because land is indestructible, it is insurable

False

True or False: If the Plano Municipal Court rules that a local builder did not properly follow the Plano building code, this decision would establish a precedent for similar disputes arising in Frisco.

False

True or False: Is a private real estate developer drafts property regulations by which all homeowners in a particular subdivision must adhere to, this would be an example of one of the seven sources of real estate law.

False

True or False: When the former Republic of Texas was admitted as a state to the union, it was forced to give up all Mexican/Spanish based legal concepts and required, instead, to adopt only those English-based laws that were recognized by the other states.

False

True or False: Persons who hold real estate licenses should familiarize themselves with the law so as be able to advise clients and potential clients regarding real estate law.

False (if problems arise, advise them to get an attorney)

Contrast the terms "price" and "cost"

Price is the amount of money paid for a property while Cost is the capital outlay for land, labor, materials, and profits in order to bring the property into existence

Generally speaking, real estate can be broadly classified into the following categories based on use

Residential Agricultural Commercial Industrial Special-purpose Mixed use

What does TAR stand for?

Texas Association of Realtors