Unit 1 RELE I 2023

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

(1) Possess certain personal & educational qualifications (2) Pass an examination (3) Become a member of NAR (4) Follow prescribed standards of conduct and meet continuing education requirements

The seven sources of real estate law are what?

1 - US Constitution 2 - State constitutions 3 - Laws passed by Congress 4 - Laws passed by state legislators 5 - Regulations of Federal agencies and commissions (created by Congress) 6 - Local ordinances 7 - Court decisions

If someone wants to work in the real estate field that involves assisting prospective homeowners in obtaining a mortgage loan, he/she would seek employment in what?

Financing

What does NAR stand for? What is it?

National Association of Realtors; the largest real estate trade organization

Is a petroleum landman required to be licensed?

No

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

Reverse

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

Statutory law is derived from a legislative body whereas common law is based on tradition or court decision

These two sources of real estate law establish the rights of citizens and delineate the limits of governmental authority.

The US Constitution and state constitutions

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

True or False: If the Plano City Council enacts a law 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

What category of real estate would warehouses, factories, and land in industrial districts fall in?

industrial real estate

What is a standard in subsequent similar cases called?

precedent

What do you call a member of the National Association of Real Estate Brokers (NAREB)?

realtist

This is a registered trademark of the NATIONAL ASSOCIATION OF REALTORS. It is used by brokers and salespersons who hold active membership in the association.

realtor

What category of real estate would all property used for housing, from small city lots to acreage, both single-family and multifamily, in urban, suburban, and rural areas fall in?

residential real estate

What is a licensee employed by or associated with a broker who conducts brokerage activities on behalf of the broker for a fee or commission called?

salesperson

What category of real estate would places of worship, schools, cemeteries, and government-held lands fall in?

special-purpose real estate

This source of real estate law serves to clarify and interpret laws, regulations and constitutional provisions.

Court decisions (common law)

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: If 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: 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: 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 to be able to advise clients and potential clients regarding real estate law.

False - They should advise the parties to consult an attorney

These two sources of real estate law establish special provisions or set broad standards of conduct and establish administrative enforcement agencies.

Laws passed by Congress and state legislators

The real estate field that is most directly related to acquiring raw land, subdividing property into lots, and installing streets and utilities before houses can be built, is known as what?

Property Development

These two sources of real estate law are a means of implementing and enforcing legislative acts.

Regulations of Federal agencies and commissions created by Congress and local ordinances

Generally speaking, real estate can be broadly classified into what categories (5) based on use?

Residential Commercial Industrial Agricultural Special Purpose

What does TAR stand for?

Texas Association of Realtors

A title insurance escrow officer is licensed by who?

Texas Department of Insurance

What is the commission that administers the TRELA called?

Texas Real Estate Commission (TREC)

This was passed by the Texas legislature in 1949 it currently regulates real estate in Texas.

Texas Real Estate License Act (TRELA)

What category of real estate would farms, timberland, pastureland, rances, and orchards fall in?

agricultural real estate

What is one who acts as an agent for the buyer or seller (or both) in negotiating the sale, purchase, or rental of property called?

broker

What category of real estate would business property, including offices, shopping centers, stores, theaters, hotels, and parking facilities fall in?

commercial real estate

What is the body of rules and principles founded on tradition and court decisions called?

common law