Ch. 5

Optional TREC contracts are designated by which of the following? A. 'OP' B. 'OT' C. 'PO' D. 'ST'

'OP'

If the commission on the sale of a property is 6%, how much will the cooperating broker earn if the seller's broker offered a 50/50 split?

3%

Statute of Frauds

A State law requiring certain contracts to be in writing and signed before they will be enforceable at law.

Listing Contract

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

Statue of Limitations

A law establishing the time period within which certain lawsuits may be brought.

Gross Lease

A lease in which the lessor pays all costs of operating and maintaining the property and real property taxes.

Net Lease

A lease requiring a lessee to pay charges against the property such as taxes, insurance and maintenance costs in addition to rent.

Non-Exclusive Listing (Open Listing)

A listing given to one or more brokers in which the broker procuring sale is entitled to the commission but imposes no commission obligation on the owner when the owner sells the property.

Exclusive Agreement (Exclusive Right to Sell Listing Agreement)

A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract.

Optionor

A person who gives an option.

Optionee

A person who receives an option.

Tenancy at Will

A property tenure that can be terminated at any time by either the tenant or the owner (landlord). It exists without a contract or lease, and is unspecific in duration or the exchange of payment.

Security Deposit

A sum of money that the landlord requires of the tenant prior to the lease; it is to be refunded at the end of the lease based on the condition of the premises.

Leasehold Estate

A tenant's right to occupy real estate during the term of the lease.

Davis is a real estate agent in Dallas. Which of the following Texas promulgated contract forms will David most likely use in his practice? A. Form 20-12 B. Form 12-A C. Form OP D. Form 10-1

A. Form 20-12

Which of the following is the best way to discharge a contract? A. Full performance B. Breach of contract C. Novation D. Assignment

A. Full performance

Which of the following contracts describes how the real estate broker will be compensated? A. Listing contract B. Purchase contract C. Trust contract D. Sales contract

A. Listing contract

An options agreement is included in which of the following contracts? A. One to Four Family Residential Contract (resale) B. Exclusive Right to Sell Agreement C. Net Listing Agreement D. Residential Listing Contract

A. One to Four Family Residential Contract (resale)

The buyer is the __________ in a Buyer Agency Agreement?

A. Principal

This listing agent primarily represents which of the following? A. Sellers B. Buyers C. Customers D. Brokers

A. Sellers

Which of the following exists without a contract or lease, and is unspecified in duration or exchange of payment? A. Tenancy at will B. Tenancy at sufferance C. Estate for years D. Temporary estate

A. Tenancy at will

When is a seller's agent entitled to be compensated?

After the agent finds a ready, willing, and able buyer.

Ground Lease

An agreement for the use of land only, sometimes secured by improvements placed on the land by the user.

Multiple Listing Service (MLS)

An association of real estate agents providing for a pooling of listings and the sharing of commission on a specified basis.

Buyer Agency Agreement

An employment contract that appoints a brokerage firm as a buyer's agent for the purpose of finding a suitable property for the buyer.

Estate at Sufferance

An estate arising when the tenant wrongfully holds over after the expiration of the term. The landlord has the choice of evicting the tenant as a trespasser or accepting such tenant for a similar term under the conditions of the tenant's previous holding. Also called a tenancy at sufferance.

Estate for Years

An interest in land by virtue of a contract for the possession of them for a definite and limited period of time. May be for a year or less.

Estate From Period to Period

An interest in land where there is no definite termination date but the rental period is fixed at a certain sum per week, month, or year. Also called a periodic tenancy.

Which of the following are not considered promulgated contract forms? A. Standard contracts B. Optional contracts C. Required contracts D. All of the above

B. Optional contracts

A buyer/tenant representation agreement is considered what type of contract?

Bilateral contract

A listing contract exists between the client and the?

Broker

A broker who finds a buyer for a listing on the MLS is entitled to which of the following? A. Bonus B. Salary C. Cooperation fee D. All of the above

C. Cooperation fee

An estate at sufferance may lead to which of the following? A. Condemnation B. Eminent domain C. Eviction D. Escheat

C. Eviction

Which of the following is an example of a non-exclusive listing agreement? A. Exclusive agency agreement B. Exclusive right to sell agreement C. Open listing agreement D. Net listing agreement

C. Open listing agreement

A contract can be discharged by which of the following means? A. Full performance B. Assignment C. Novation D. All of the above

D. All of the above

A lease must contain which of the following elements? A. Legally competent parties B. Lawful objective C. Offer and acceptance D. All of the above

D. All of the above

According to the statute of frauds, which of the following contracts must be in writing? A. Contracts for the sale of real property B. Leases longer than 1 year C. Leases longer than 2 years D. All of the above

D. All of the above

Which of the following information may be included in a listing contract? A. Location of lock boxes B. When a 'For Sale' sign can be placed in the yard C. The amount of commission to be paid to the broker D. All of the above

D. All of the above

Which of the following is considered a bilateral contract? A. A lease B. A sales contract C. An independent contractor agreement D. All of the above

D. All of the above

Which of the following listing contracts are illegal in Texas? A. Net listing agreements B. Open listing agreements C. Exclusive agency agreements D. None of the above

D. None of the above

Which of the following is the most commonly used promulgated contract form? A. Optional Residential Contract B. Form OP C. Residential Listing Contract D. One to Four Family Residential Contract (resale)

D. One to Four Family Residential Contract (resale)

A typical lease is considered a/an?

Estate for Years

True or False: According to the statute of frauds, all leases must be in writing.

False

True or False: Listing contracts are promulgated by TREC?

False

A contract that requires a party to not do something is considered a __________ contract?

Forbearance

Lessor

Landlord

Percentage Lease

Lease on the property, the rental for which is determined by amount of business done by the lessee; usually a percentage of gross receipts from the business with provisions for a minimum rental.

Graduated Lease

Lease which provides for a varying rental rate, often based upon future determination; sometimes rent is based upon result of periodical appraisals; used largely in long-term leases.

A contract that requires a party to do something is considered a _________ contract?

Performance

An independent contract agreement exists between a broker and a:

Salesperson

According to the listing agreement, a seller's Broker is considered a:

Special agent

The Texas promulgated contract forms can be found at the:

TREC website

Lessee

Tenant

Commingling

The illegal mixing of personal funds with money held in trust on behalf of a client.

How does a longer term leases typically impact the amount of rent paid?

The rent will be lower

Assignment

The transfer of legal rights and obligations by one party to another.

Sublease

The transfer of only part of a lease term with reversion to the lessee; a lesser lease estate.

What is the standard commission rate for brokers in Texas?

There is no standard commission rate

True or False: Listing contracts can be either a unilateral or bilateral contract.

True

True or False: Regardless if an agent helped obtain a listing contract, the agent's sponsoring broker sill owns the listing.

True