Real Estate Course 3

Optional TREC contracts are designated by which of the following...?

'OP'

The Texas Real Estate Commission was created in what year...?

1949

If an agent is sued under the DTPA, they may be sued for up to how many times the actual damages...?

3x

Which of the following is used to add content to an existing contract...?

Addendums

A clause in a contract giving the lender certain rights in the event of a sale or other transfer of mortgaged property.

Alienation Clause

An estate of indeterminable duration, e.g., fee simple or life estate.

Freehold Estate

Two or more natural persons own that comes with a special benefit called the right of survivorship. Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship, i.e., the right to share equally with other surviving joint tenants in the interest of a deceased joint tenant.

Joint Tenancy

A court proceeding requiring that property be sold to satisfy a mortgage lien.

Judicial Foreclosure

Delay or negligence is asserting one's legal rights.

Laches

The owner of a life estate.

Life Tenant

The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on.

Littoral Rights

A planning and zoning term describing land not subject to conventional zoning to permit clustering of residences or other characteristics of the project which differ from normal zoning.

Planned Urban Development (PUD)

The rights of a landowner or land occupier to use flowing water (such as a river) that is adjacent to the land.

Riparian Rights

Reversionary Interest

The interest which a person has in lands or other property, upon the termination of the preceding estate. A future interest.

A condition in a real estate financing instrument giving the lender the power to declare all sums owing lender immediately due and payable upon the happening of an event, such as sale of the property, or a delinquency in the repayment of the note.

Acceleration Clause

The increasing in land area resulting from the deposit of soil by the natural action of the water.

Accretion

A transfer by a person of that person's rights under a contract.

Assignment

A sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river.

Avulsion

Any deed that recites a consideration and purports to convey the real estate; a bargain and sale deed with a covenant against the grantor's act is one in which the grantor warrants that grantor has done nothing to harm or cloud the title.

Bargain and Sale Deed

A written instrument given to pass title of personal property from a vendor to a vendee is referred to as a...?

Bill of sale

A mortgagor is also referred to as a...?

Borrower

The basic rules establishing the rights and obligations to other owners within the same subdivision, for the purpose of operating and maintaining property commonly owned by the individual owners- Cluster Housing

CC&R- Covenants, Conditions, Restrictions

The One to Four Family Residential Contract (resale) can be utilized to submit an offer on a newly constructed house...?

F (False)

Listing contracts are promulgated by TREC...?

False

An estate that will end automatically when the stated event or condition occurs. The interest will revert to the grantor or the heirs of the grantor.

Fee Simple Determinable

David is a real estate agent in Dallas. Which of the following Texas promulgated contract forms will David most likely use in his practice...?

Form 20-12

A quality of some asbestos that causes it to crumble, allowing toxic particles to escape into the air and lodge in people's lungs.

Friable

Which of the following is the best way to discharge a contract...?

Full performance

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.

Graduated Lease

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

Gross Lease

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

Ground Lease

A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate.

Life Estate

One who gives a mortgage on his or her property to secure a loan or assure performance of an obligation; a borrower.

Mortgagor

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

Net Lease

Which of the following is an example of a unilateral contract...?

Open listing

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.

Percentage Lease

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

Performance

A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.

Purchase Money Mortgage

A deed to relinquish any interest in property which the grantor may have, without any warranty of title or interest.

Quitclaim Deed

A federal law requiring the disclosure to borrowers of settlement (closing) procedures and costs by means of a pamphlet and forms prescribed by the United States Department of Housing and Urban Development.

Real Estate Settlement Procedures Act (RESPA)

Owned by one person only. Sole ownership.

Severalty Ownership

A deed in which the seller warrants or guarantees the title only against defects arising during the period of his or her tenure or ownership of the property.

Special Warranty Deed

A State law, based on an Old English statute, requiring certain contracts to be in writing and signed before they will be enforceable at law, e.g. contracts for the sale of real property, contracts not be performed within one year.

Statute of Frauds

Periodic payments of interest that are only for the life of the loan, with payment of the principle in full at the end of the loan.

Straight Loan

Funds provided usually by the builder or seller to temporarily reduce the borrower's monthly principal and interest payment.

Subsidy Buydown

The Texas promulgated contract forms can be found at the...?

TREC website

The duties and powers of TREC are described in which of the following documents...?

TRELA

Ownership by married persons where each owns the entire estate with the survivor taking the whole estate upon the death of the other.

Tenancy by the Entirety

An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners.

Tenancy in Common

An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners is considered...?

Tenancy in common

How do addendums affect a contract...?

They add content to the existing contract

The evidence of right which a person has to the ownership and possession of land is referred to as...?

Title

One who borrows money from a trust deed lender, then deeds the real property securing the loan to a trustee to be held as security until trustor has performed the obligation to the lender under terms of a deed of trust.

Trustor

A purchaser; buyer.

Vendee

When a grantee takes title to real property subject to a mortgage, grantee is not responsible to the holder of the promissory note for the payment of any portion of the amount due.

"Subject To" a Mortgage

Those loans processed on uniform loan forms according to FNMA/FHLMC guidelines.

Conforming Loan

Notice of the condition of title to real property given by the official records of a government entity which does not require actual knowledge of the information.

Constructive Notice

A husband's interest in the real property of his wife.

Curtsey

A written document by which ownership of land is transferred from one party to another is known as a...?

Deed

A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender.

Deed in Lieu of Foreclosure

Land benefiting from an easement appurtenant.

Dominant Tenement

A wife's interest in her husband's real property.

Dower

Exists when a landowner has no access to roads and is landlocked.

Easement by Necessity

A right of use in the land of another without the requirement that the holder of the right own adjoining land.

Easement in Gross

If a buyer cannot fulfill a contingency, the seller may be able to terminate the contract through which of the following clauses...?

Escape clause

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 is referred to as a/an...?

Estate From Period to Period

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 at Sufferance

A typical lease is considered a/an...?

Estate for Years

An estate which vests after the termination of the prior estate.

Estate in Remainder

Property or estate ownership that reverts back to the grantor after a temporary ownership period.

Estate in Reversion

A contract in which something remains to be done by one or both of the parties.

Executory Contract

The shortened name for the Federal National Mortgage Association (FNMA), a privately owned corporation that purchases FHA, VA, and conventional mortgages.

Fannie Mae

An inheritable estate in land providing the greatest interest of any form of title.

Fee Simple Absolute

Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person's life and descending to the person's heirs or distributees.

Fee Simple Estate

A nickname for the Federal Home Loan Mortgage Corporation (FHLMC), a corporation wholly owned by the Federal Home Loan Bank System that purchases FHA, VA, and Conventional mortgages.

Freddie Mac

A contract can be discharged by which of the following means...?

Full performance Assignment Novation

A deed used to convey real property which contains warranties of title and quiet possession, and the grantor thus agrees to defend the premises against the lawful claims of third persons.

General Warranty Deed

A nickname for the Government National Mortgage Association (GNMA), a U.S. government agency that purchases FHA and VA mortgages.

Ginnie Mae

A contract used in a sale of real property whereby the seller retains title to the property until all or a prescribed part of the purchase price has been paid.

Land Contract

One to whom a mortgagor gives a mortgage to secure a loan or performance of an obligation; a lender or creditor.

Mortgagee

The substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties.

Novation

Which of the following is the most commonly used promulgated contract form...?

One to Four Family Residential Contract (resale)

Which of the following are not considered promulgated contract forms...?

Optional contracts

Buying back one's property after a judicial sale.

Redemption

Which of the following is not considered a violation of the ECOA...?

Refusing to lend to a minor

A stipulation that upon the payment of a specific sum of money to the holder of a trust deed or mortgage, the lien of the instrument as to a specifically described lot or area shall be removed from the blanket lien on the whole area involved.

Release Clause

A person who inherits or is entitled to inherit property upon the termination of the estate of the former owner.

Remainderman

Used by older people who need additional income and want to take advantage of the equity in their homes.

Reverse Annuity Mortgage

Section 1101.155 of the Texas Real Estate License Act deals with which of the following...?

Rules regarding the Texas contract forms

The TREC form OP-H is used for which of the following reasons...?

Seller Disclosure

Land encumbered by an easement.

Servient Tenement

Judicial foreclosure favors which of the following...?

The borrower

Non-judicial foreclosure favors which of the following...?

The lender

The evidence of right which a person has to the ownership and possession of land, commonly considered as a history of rights is known as...?

Title

One who holds property in trust for another to secure the performance of an obligation. Third party under a trust.

Trustee

The name given to the federal statutes and regulations (Regulation Z) which are designed primarily to insure that prospective borrowers and purchasers on credit receive credit cost information before entering into a transaction.

Truth in Lending

What is the maximum fine an agent can receive for punitive damages...?

Unlimited damages

On a loan, claiming a rate of interest greater than that permitted by law.

Usury

A seller.

Vendor