TREC

In order to obtain a real estate license, an applicant must be at least how many years of age...?

18

Real estate licenses are issued for a period not to exceed how many years...?

2

Real estate licenses are issued for a period not to exceed how many years...?

2 years

To obtain a real estate broker's license an applicant must earn

3600 points

The qualifying real estate principles course consists of how many classroom hours?

60

Difference between a real estate broker and a real estate salesperson

A broker acts as agent of buyer/seller negotiating sale/purchase rental of real property Salesperson conducts brokerage, acts on behalf of broker for fee

Special purpose property

A category of real property created as the result of combining the land and its improvements for a single highest and best use

Market comparison approach (1)

A means of comparing similar type properties, which have been recently sold, to the subject property. Commonly used in comparing residential properties

Real estate broker

A person or an organization acting as the agent for others in negotiating the purchase and sale of real estate property or other commodities for a fee

Real estate salesperson

A person performing any of the acts included in the definition of a real estate broker but while associated with and supervised by a broker

Non-homogeneity

A physical characteristic of land describing that land as a unique commodity

Assessed value

A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property Taxable value / used for property taxes and appraisal districts etc

Someone acting under a power of attorney

Agent

Demand

Amount of goods consumers are willing and able to buy at any given price during any given time period

Supply

Amount of goods offered for sale within a given market at a given price during a given time period

General agent

An agent with full authority over one property of the principal, such as a property manager

Special agent

An agent with limited authority to act on behalf of the principal, such as created by a listing

Cost approach (2)

An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land

Appraised value

An evaluation of a property's value based on a given point in time that is performed by a professional appraiser during the mortgage origination process

Mixed use property

Any urban, suburban, or village development or even a single building that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated and that provides pedestrian connections

Explain the bundle of rights in detail, and list all of the the rights that come with the "bundle of sticks".

Bundle of Rights - The rights of an owner of a freehold estate to possession, exclusion, enjoyment, control, and disposition of real property.

Brokerage

Business of bringing buyers and sellers together and assisting in negotiations for terms of the sale of real estate

CCIM

Certified Commercial Investment Member

Improvements

Changes or additions made to a property such as walls or roads. Typically increase the value of a property, except in some cases of over improvement

Example of a special use property

Church

Properties with five or more dwelling units are considered

Commercial property

A non-profit organization in looking to purchase a church. An appraiser was hired to assess the value of the church. What appraisal method did the appraiser use

Cost Approach

The party the agent brings to the principal as seller or buyer of the property is known as the...?

Customer

Improvements typically ............ in value

Depreciate

Which of the following is a fiduciary duty owed by an agent to their client...? Indemnification Disclosure Compensation All of the above

Disclosure

Principal

Employer of an agent

Price is typically equal to the cost of the property

False

Value is the same as price...?

False

A person in a position of trust and confidence, as between principal and broker, is known as a...?

Fiduciary

A property manager is an example of what type of agent

General Agent

A property manager is an example of what type of agent...?

General agent

CHAPTER 1

INTRODUCTION TO MODERN REAL ESTATE

REAL PROPERTY RIGHTS - Right to mortgage/lease/cultivation/will/dedicate/etc

If you own - you have the right to do these

If a real estate salesperson terminates their employment with their sponsoring broker, the salesperson's license is considered what...

Inactive

If a real estate salesperson terminates their employment with their sponsoring broker, the salesperson's license is considered what...?

Inactive

Mark is looking to purchase a commercial office building. An appraiser was hired to assess the value of the building. What appraisal method did the appraiser use

Income Approach

Distinguish the difference between land, real estate, and real property, and provide at least two examples of each.

Land - The material of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance and includes free or unoccupied space for an indefinite distance upwards as well as downwards [Earths surface - downward to surface of earth to air + including everything from nature] ex. trees, soil Real estate - Land and everything permanently attached to land by nature or man (properties / man made additions) ex. streets, wells, sewers Real Property - Broader than land + real estate. Comes with the legal rights that comes with real estate ownership The aggregate of rights, powers, and privileges conveyed with ownership of real estate.

NAR

National Association of Realtors

Income approach (3)

One of the three methods of the appraisal process generally applied to income producing property, and involves a three step process - 1) Find net annual income 2) Set an appropriate capitalization rate or "present worth" factor 3) capitalize the income dividing the net income by the capitalization rate [interest]

Agent

Person authorized to act on behalf of another

Value

Present worth of future benefits

The employer of an agent is known as the

Principal

Define/distinguish difference between a principal, agent, and customer

Principal- employer of an agent Agent- authorized person to act on behalf of another Customer- party agents bring to the principal as the buyer/seller of property

Industrial property

Property that is used by companies or persons for manufacturing, warehousing, or the assemblage of components

Commercial property

Property that produces rental income or that is used in business. Properties with five or more dwelling units are considered commercial properties

CHAPTER 2

REAL PROPERTY

The market comparison approach is commonly used for this property type...?

Residential

If a person's license has been expired for more than 6 months, they are required to do which of the following in order to re-activate their license...?

Satisfy the education requirements and retake the State exam

Which of the following is exempt from having to obtain a real estate license to buy or sell real estate on someone else's behalf...?

Someone acting under a power of attorney

A real estate agent is an example of what type of agent

Special agent

The amount of goods offered for sale within a given market at a given price during a given time period is known as

Supply

Property inspections must be licensed by the Texas Real Estate Commission

TRUE

Real estate agents and brokers must be careful not to provide legal advice to their clients...?

TRUE

Real estate prices are directly related to supply and demand

TRUE

The mission of the Education Standard Advisory Committee (ESAC) is to regularly review and revise the curriculum standards, course content requirements, and instructor certification requirements for qualifying and continuing education education courses

TRUE

TAR

Texas Association of Realtors

This Act established the real estate licensing requirements in Texas in 1939...?

Texas Real Estate Dealers Act

Who holds the real estate license of an agent...?

The agent's sponsoring broker

Depreciated value

The basis of a depreciable asset used to complete the taxable fain for its sale; the basis is acquisition cost plus capital improvements less accrued depreciation

Insured value

The cost of replacing a structure completely destroyed by an insured hazard

A licensee's license may be suspended or revoked if which of the following occurs

The licensee is convicted of a felony

A licensee's license may be suspended or revoked if which of the following occurs...?

The licensee is convicted of a felony

Customer

The party the agent brings to the principal as seller or buyer of the property

Customer

The party the agents bring to principal as seller/buyer of the property

Value

The present worth of future benefits

If a real estate salesperson closes on a transaction, who pays the salesperson their commission...?

The salesperson's sponsoring broker

Which of the following factors can impact the value of real estate...?

Topography Prevailing winds Proximity to transportation ****All of the above

Cost

Total dollar expenditure for labor, materials, and other items related to construction

Real estate agents and brokers must be careful not to provide legal advice to their clients...?

True

Differences between value, price, cost

Value- present use of future benefitis Price-Amount a purchaser agrees to pay a seller under a transactions circumstances Cost-total dollar expenditure for labor, materials, and other items related to construction

Listing contract

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

Disclosure is

a fiduciary duty owed by an agent to their client

Fiduciary

a person in a position of trust and confidence as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under rules of agency

Residential property

a type of property that includes one to four dwelling units

Cost of labor

affects supply

Price

amount a purchaser agrees to pay and a seller agrees to acct under the circumstances surrounding a transaction

The business of bringing buyers and sellers together and assisting in negotiations for real estate is known as

brokerage

Improvements

changes or additions made to a property such as walls and roads

These real estate brokers specialize in the sale and lease of shopping centers and office buildings

commercial brokerage

Property that produces rental income or that is used in business is known as

commercial property

Fiduciary duty

duty owed by an agent to act in the highest good faith toward the principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency

Texas Real Estate Dealers Act

established the real estate license requirements in Texas in 1939

A person in a position of trust and confidence, as between principal and broker is known as

fiduciary

Someone acting under a power of attorney

is exempt from having to obtain a real estate license to buy/sell real estate on someone else's behalf

Caveat emporer

let the buyer beware. the buyer must examine the goods/property and buy at their own risk

government held properties include which of the following

public parks

The relicensing courses needed to obtain your real estate license are called

qualifying education courses

A type of property that includes one to four dwelling units is known as

residential property

Demography

study of the social and economic statistics of a community

Continuing education courses

taken after you obtain your real estate license