law of contracts
By signing the listing agreement, the seller is not giving the listing broker or listing agent any authority to sign any documents on their behalf.
. True.
how many total members serve in the joint broker/lawyer committee?
13
what are the number of course clock hours to obtain a real estate license?
180
when was the Texas real estate commission created?
1949
the Texas real estate broker / lawyer committee was created in __________. it drafts and revises contract forms for youth by real estate licensees.
1983
a lawsuit must be filed within ________ after the date on which the false misleading or deceptive act occurred.
2 years
Are these the correct numbers to go into 3A, 3B, and 3C? 3A: $40,000 3B: $160,000 3C: $200,000
3A is strictly the down payment amount and $40,000 is 20% of $200,000. The note will be $160,000 and the Sales Price 3C will be $200,000. The point is that you do not want to add in any earnest money or any other fees in 3A. It is always the down payment only.
If the owner of a home is already under contract to sell the property, and a second offer is made and accepted, this second offer becomes what type of contract?
A back-up contract.
Which is a form of voluntary alienation?
A will is voluntary.
Which of the following would be an example of an amendment in the TREC contract?
A. Inspection and repairs, B. Change of assigning fees, C. Closing dates
All of the following are required to make the Statute of Frauds enforceable?
A. The agreement must be in writing., B. The agreement must contain a promise or agreement.., D. The agreement must be signed by the person being charged.
All the following are ways in which the listing can be terminated
A. The property sells and closes B. Agreement of both parties C. The listing expires
Buyer agency agreements can be created in three ways. Name one.
Agency by ratification
An agency relationship which is created after the fact when the principal agrees to be bound by the actions of another person who was acting without authority.
Agency by ratification;
A way for the buyer to transfer obligations to another is called ______________________.
Assignment
Where will the earnest money be deposited?
Austin Title The buyers requested that Austin Title close the transaction. It is very common for the earnest money to be deposited with the same company that will close the transaction.
What federal law prohibits lenders from discriminating where they make loans?
B. Community Reinvestment Act. If a lender services a particular geographic area for lending, they cannot discriminate where to make loans within that geographic area.
The main purpose of RESPA is to provide credit scoring to prospective borrowers.True or False.
B. False. RESPA requires that consumers receive disclosures at various times in a transaction and outlaws kick-backs that increase the cost of settlement services.
The seller's disclosure form should be filled out by the listing agent.
B. False. The seller must fill out the Seller's Disclosure. If the agent fills it out, the agent is setting himself/herself up for a potential lawsuit.
All of the following does terminate a contract?
B. Mutual consent, C. Completion of purpose, D. Default
The most widely used residential listing form in Texas is:
B. The exclusive right-to-sell provides the broker (and agent) the most protection, as the listing broker is paid no matter who sells the property.
To be valid, a listing agreement must have a termination date. The length of a listing term is often decided by the market conditions and the ___________ policy.
Broker's
The right of the government or its agent to take private property for public use with payment of compensation.
C. Eminent domain. The right is eminent domain. The process of taking the property is called condemnation.
What type of deed will the purchasers receive?
C. General warranty deed.Paragraph 9B of the One-to-Four Family Residential Contract states that the buyer will be furnished with a general warranty deed. General warranty deeds state that the title is clear all the way back to the sovereignty of the soil (Spanish land grants). In a foreclosure sale, the lender only wants to provide clear title while the lender owned the property; therefore, they will only provide a special warranty deed.
A list of lenders and their loan rates to consumers is called:
CLO. Obtaining a list of lenders is easy to do; however, it is advisable to develop a good working relationship with two or three lenders and stick with them. They might not always have the absolute lowest interest rate, but if you develop a good relationship, they will get your transactions closed!
The process that brings the note into legal existence:
Closing. Once the property is closed and funded, the buyer's note to repay the loan becomes legally binding.
Redlining is prohibited by:
Community Reinvestment Act. Lenders are prohibited from discriminating where they will make loans within a certain geographic area. In other words, they cannot "red-line" certain areas.
A condition that must be met to close a real estate transaction
Contingency
A condition that must be met to close a real estate transaction
Contingency;
A(n) _____________ is a legally binding agreement between parties, to do or not do something.
Contract
What is the transfer of property from one person to another and the document and/or instrument by which this is affected called?
Conveyance.
The transfer of property from one person to another and the document and or instrument by which that is effected defines:
Conveyance. A conveyance is a legal document that transfers ownership from one person to another. A "deed" would be called a conveyance.
The evidence of right which a person has to the ownership and possession of land. It is commonly considered a history of rights.
D. Title. Ownership to the property is acquired by deed. In other words, title passes by deed.
The use of force or pressure to make one party agree to a contract.
Duress
___________ is the use of force or pressure by one party to make the other party agree to the contract.
Duress
The use of force or pressure to make one party agree to a contract.
Duress;
Who is charged with the responsibility of properly recording documents in the county courthouse?
Escrow agents. The title company has "escrow agents" who conduct the closing and make sure that everything is recorded properly.
What would be the type of listing agreement that would afford Charles the most protection?
Exclusive Right-to-Sell. The Exclusive Right-to-Sell Listing Agreement affords the most protection because no matter who sells the property, the listing agent is protected to be paid his/her commission.
The type of listing where the owner agrees to list the property with only one broker; however, the owner reserves the right to sell the property himself.
Exclusive agency listing
The type of listing where the owner agrees to list the property with only one broker; however, the owner reserves the right to sell the property himself.
Exclusive agency listing;
The listing that affords the broker the most protection.
Exclusive right-to-sell
The listing that affords the broker the most protection.
Exclusive right-to-sell;
An agency relationship which is created after the fact when the principal agrees to be bound by the actions of another person who was acting without authority.
Expressed oral agreement
Buyer agency agreements can be created in three ways. Name one.
Expressed oral agreement;
The primary purpose of _______________________ is to provide financial assistance to low and moderate-income home buyers by promoting mortgage credit.
FNLMC (Freddie Mac)
_________________________ is one of the three major players in the secondary market.
FNMA, FHLMC, or GNMA
The ___________________ Act gives the individual the right to inspect his/her file, correct any errors, and make explanatory statements to supplement the file surrounding his/her credit.
Fair Credit Reporting
A gross lease is where a tenant pays a percentage of their gross sales as rent.
False.
A mortgage is a three-party instrument that includes the lender, borrower, and trustee.True or false.
False.
A sale and settlement contingency means that the buyers are going to assist their children in the sale of their property.True or False.
False.
An FHA loan is an option for purchasers who are behind in making their mortgage payments.true or false.
False.
Credit unions are part of the secondary market.True or false.
False.
During the closing process, the underwriter is responsible for disbursing funds as the transaction dictates as well as maintaining the account into which the earnest money is deposited.True or false.
False.
If the seller breaches the listing, the seller will NOT be liable to the broker for the commission. If the broker breaches the listing, the seller may use any remedy allowed by law.
False.
If the taxes are not paid at or prior to closing for the current year, the title company will be responsible for paying them.True or False.
False.
One of the most common contingencies in a contract is the homeowner association contingency.True or false.
False.
The Community Reinvestment Act requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures regarding the nature and costs of the real estate settlement process.True or false.
False.
The addendum that refers to the loan that a buyer takes out to purchase a home, either through conventional loans, an FHA loan, or other type, is known as the Loan Assumption Addendum.True or false.
False.
The addendum used when the buyer must show the seller's his credit worthiness is the Loan Assumption Addendum.True or false.
False.
The appraisal for the loan is conducted by an appraiser chosen by the buyer or the seller.True or false.
False.
The open listing is where the owner agrees to list the property with only one broker; however, the owner does reserve the right to sell the property themselves.
False.
The verification of deposit gives the buyer the unrestricted right to terminate the contract for any reason.True or False.
False.
It is NOT possible to transfer title to property in Texas without recording the deed in public records.True or false.
False. Property can be transferred without recording.
The main purpose of RESPA is to provide credit scoring to prospective borrowers.True or false.
False.RESPA requires that consumers receive disclosures at various times in a transaction and outlaws kick-backs that increase the cost of settlement services.
________________ is the shareholder-owned corporation that was federally chartered by Congress in 1988, which seeks to establish a secondary mortgage market for farmers, ranchers, and rural homeowners.
Farmer Mac
The system which strives to provide its members (members include thrift institutions, commercial banks, credit unions, insurance companies, and certified community development financial institutions) with a source of funding for mortgages and asset-liability management is known as the ___________________________________
Federal Home Loan Bank (FHLB)
The conveyance of real estate is covered by real estate contracts.
Freehold estates
The One to Four Family Residential Contract (Resale) states the seller will deliver the buyer a ____________ deed.
General Warranty.
In your opinion, do you think it is wise for the sellers to offer financing on the property? Yes or no? Explain: what are the advantages and disadvantages for the seller?
Going through the lending process can be a daunting experience. If a seller is willing to carry the note on the property, the seller can oftentimes price the property at a premium (less hassle and cost to the buyer). It seems that the Warrens might just have the perfect buyer...living in the house right now! John has an excellent payment history with the Warrens, he obviously likes the property or would not be renting it, and he is planning to purchase a home at the end of his lease. The scenario doesn't state John's financial qualifications but if the Warrens are willing to carry the note, they should first make that offer to John. John may need to come up with some cash as a down payment to purchase the property, but that is just a negotiation! The advantage to carrying the note is that it provides cash flow monthly to the Warrens which they might like instead of having one lump sum. The only disadvantage in an owner carry is that the owner might get the home back if the buyer defaults....Well, is that really a negative? They get to sell it all over again!
An instrument conveying real property (the deed) may not be recorded unless it is signed and acknowledged or sworn to by the:
Grantor.. The instrument is the deed and only the seller (grantor) must sign the deed.
Do you think the tenant could be "incentivized" to show the property without notice? Yes? No? Explain what you would do.
I would first talk to John about purchasing the house. Then if he is not interested, yes, I would work something out to incentivize him, so the property can have a lock box on it and can be shown by "call first, then go!" Maybe a reduction in his rent while the property is on the market. Charles, the Warrens and John just need to sit down and see what can be worked out. Remember, it is ALL a negotiation!
Which statement is true?
In a lease, the lessee will lease from the lessor. It is important to know that the landlord (owner) is the lessor, and the tenant is the lessee
Who purchases the title policy?
It is negotiable. Either party can pay for the title policy. It is normally paid by the seller because it is their responsibility to provide clear title to the property.
What is the purpose of the Contingency Contract, created under the "Sale of Other Property" Addendum?
It makes the contract contingent upon the buyers receiving funds from their home sale before they can close on the home they wish to purchase.
this is also called a non freehold estate:
Leasehold estate
A listing where the owner wants to receive a set amount.
Net listing
A listing where the owner wants to receive a set amount.
Net listing;
Does the tenant need to move out when the property sells and closes? Yes or no? Explain.
No, the lease will survive closing. John is protected with his lease
A possessory right or interest in land or property.
Non-freehold
A possessory right or interest in land or property.
Non-freehold;
A(n) ________ is a communication that gives the listener the power to conclude a contract. Once the ______________ is made, the initial offer is dead and cannot be revived without consent from the buyer.
Offer, counteroffer.
A listing where the owner employs as many brokers as they wish, as well as retain the right to sell the property themselves.
Open listing
A listing where the owner employs as many brokers as they wish, as well as retain the right to sell the property themselves.
Open listing;
Where in the contract should the buyers ask the seller to remove the contents of the garage?
Paragraph 11 Special provisions. The agent must be as specific as possible and brief in detailing exactly what they expect the seller to do.
Loans are generated through the __________ market.
Primary
Dividing expenses between the buyer and the seller in proportionate shares is called.
Proration. Certain prepaid items (part of the closing costs) are prorated or divided. Items that are prorated are interest, taxes, insurance, rent, and maintenance fees.
The act which was designed to enhance consumer protection by reducing fraud and encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage loan originators is known as the _______________.
SAFE Act
The Third-Party Financing Addendum is used for all the following types of financing EXCEPT:
Seller Financing. "Third Party" means any type of new loan supplied by the lender. Seller financing is not considered a new loan.
Seller pays the buyer his prorated share of taxes while the seller has owned the home. What happens to the taxes at the closing?
Seller will pay his portion of the taxes while he lived in the home, and the buyer will be credited that amount. The buyer will then be responsible for paying the entire year's property taxes when they are due.
It is the Seller's responsibility to disclose the condition of his property to the buyer. You as the agent should not even attempt to fill out the ____________for the seller.
Seller's Disclosure Notice.
Who is responsible for making sure the utilities are turned on during the inspection?
Seller. The seller is responsible for keeping the utilities on during the time the property is under contract. See paragraph 7A of the One-to-Four Family Residential Contract
Sale of a property where the lender agrees to settle for less than the amount owed on the property is called:
Short sale. Short sales were used a great deal when the real estate market crashed in 2008-2011. They are not generally part of the real estate discussion when you have a low interest rate and an attractive market.
What type of deed is used when purchasing a foreclosure?
Special warranty deed. General warranty deeds go back to the Spanish Land grants and guarantee title back to that point where Special warranty deeds only warrant clear title the time the current owner owned the property. Special warranty deeds are often used by banks when selling foreclosed property.
The right of the buyer or the seller to pursue the other party to complete a contract is called:
Specific performance.
For the title company to accept an existing survey, the seller must provide both the current survey and a(n) ______________.
T-47
Sources of forms used by real estate agents in Texas include _________, _________, and lawyers.
TREC / TAR
What would it be called if the tenant stayed beyond the terms of the lease without the permission of the seller?
Tenant at sufferance. The tenant would be called a tenant at sufferance and would be subject to eviction by the seller.
The rule for the Seller's Disclosure came out of the _____________________.
Texas property code
the mission of ____________ is to protect consumers economic welfare by ensuring that licensees properly carry out their fiduciary responsibilities to clients are qualified and competent and adhere to professional standards.
Texas real estate commission (TREC)
The formal procedure of adding to, subtracting from, modifying, changing, or correcting an existing contract.
The Amendment is the form used for making any changes on an existing contract.
Gross lease
The tenant makes a monthly payment.
Do you think it was wise for the buyers to pay full price for the property? Yes or no? What factors need to be considered when determining what to offer?
Tony is a licensed agent so he has access to the MLS system and can research comparables and determine if this is a below or at market property. Apparently Tony and Jaci have been looking for some time and as soon as this property came on the market they wrote the offer full-price, so the assumption is that they did their market research through the MLS and determined that $200,000 was a good price for the property.
The two types of Home Sale Contingencies, in which a transaction is dependent or contingent upon the sale of the buyer's home, are the Sale and Settlement Contingency and the Settlement Contingency.
True or false. True.
A contingency is a provision that a certain act or event will happen for a contract to be binding.True or false.
True.
A financing contingency protects the buyer as it allows him/her time to apply for and obtain financing with the purchase of a property. He/she can also back out of the contract and reclaim his/her earnest money in the event he/she is unable to secure financing from a bank.True or false.
True.
An addendum is something that is added to the contract.true or false.
True.
Both TREC and TAR addenda are acceptable for licensees to use.True or false.
True.
Buyer's agency agreements can be created in the following three ways: expressed oral agreement, implied act, and agency by ratification.
True.
Examples of personal debt are auto loans, student loans, and mortgage loans.True or false.
True.
FNMA (Fannie Mae) sets the guidelines for conforming loans.True or false.
True.
Fixed-rate mortgages, adjustable-rate mortgages, balloon mortgages, and hybrid loans are all considered conventional loans.True or false.
True.
Generally, an attorney hired by the title company researches the title of the property.True or false.
True.
If the seller and the listing broker agree to intermediary, the listing broker may also represent a buyer in the transaction.
True.
NOT attending the home inspection is one of the most common mistakes made by both buyers and sellers.True or false.
True.
One of the most common contingencies in real estate contracts is a mortgager contingency.
True.
Seller financing is a way to by-pass traditional lending methods.true or false.
True.
The Amendment is used to make a change in the original executed contract.True or false.
True.
The Community Reinvestment Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods.True or false.
True.
The Consumer Financial Protection Bureau administers and enforces the Real Estate Settlement Procedures Act.True or false.
True.
The Loan Estimate and the Closing Disclosure came out of the Dodd-Frank Act.True or false.
True.
The Real Estate Settlement Procedures Act was put in place to ensure that consumers would be provided with more helpful information about the cost of the mortgage settlement.True or false.
True.
The Third-Party Financing Addendum is used when a buyer wants to obtain FHA or VA financing.True or False.
True.
The listing agreement states that all commissions are always negotiable and are not fixed or set by TREC or any organization.
True.
The note is the promise to repay the loan.true or false.
True.
The security for a mortgage loan is the property pledged as collateral for the loan.true or false.
True.
The verification of deposit is the document prepared by an individual's bank stating that he or she has a certain amount of funds in reserve in the bank, such as in a checking or savings account.True or False.
True.
With a contract for deed, the seller holds legal title to the property as security for payment while the buyer has equitable title.
True.
With an estate for years has a defined beginning date and ending date for a specific term.
True.
Property is normally delivered to the buyer upon closing and funding.
True. Stated in paragraph 10 of the contract, "normally" buyers do not move into the property prior to closing.
In the event of a foreclosure, in which the borrower would default on his/her loan payments, the ______________ carries the responsibility of handling the foreclosure proceedings in a deed of trust.
Trustee
_______________________ are unlikely to make the contract close sooner and may cause enforcement of the contract to be jeopardized.
Unrealistic time periods
Do lenders require an appraisal on new residential loans?
Yes, lenders will require the property to be appraised.
Can two unrelated individuals buy a property together? Yes or no? Explain.
Yes, two unrelated people can definitely buy a property together. There is no law that stipulates you have to be related to purchase property together.
Who pays for the title policy is a negotiable item in the contract. Yes or No?
Yes, who pays for the title policy is a negotiable item in a contract.
Is the listing agreement considered a bilateral contract?
Yes. By definition, a bilateral contract is a promise for a promise. The seller agrees to sell and pay the broker a commission. The listing agent agrees to market the property, put a lockbox on the property and do his/her best to sell the property for the seller. This makes it a bilateral agreement. Both are promising to do something in exchange for something else.
Is the listing agreement a contract?
Yes. It is a contract. A listing contract has all the elements necessary to make it valid, including: competent parties, legal subject matter, consideration, offer, and acceptance.
After the offer is executed, but before it closes, the property is damaged and the seller receives an insurance settlement. Can the property still close?
Yes. The insurance settlement can be assigned to the buyer and closing can take place with the insurance carrier's permission.Paragraph 14 "Casualty Loss" speaks to the situation if a property is damaged prior to closing. The assignment of the insurance proceeds must be approved by the insurance company.
Is the ability of the buyer to obtain financing for the property a contingency on a contract?
Yes. There are many contingencies in contracts, i.e. obtaining financing, making sure the property appraises, making sure the seller can convey clean title. Having a home to sell is also a contingency.
Is the sale of the purchaser's home before they can buy another called a contingency?
Yes. There are many contingencies in contracts, i.e. obtaining financing, making sure the property appraises, making sure the seller can convey clean title. Having a home to sell is also a contingency.
Is the seller required to have the utilities turned on during the time the contract is in effect?
Yes. This is noted in paragraph 7A in the residential contract.
The buyer would like to have the seller pay some of his closing costs. Is this legal?
Yes.Depending on the market, a seller may be willing to pick up some of the buyer's closing costs which is perfectly legal to do. On some loans, there are lender limits on the % of closing costs the seller may pick up and in the case of VA loans there are certain costs the veteran cannot pay and the seller MUST pick up. In some instances, the seller will agree to pay the closing costs if the buyer is willing to raise the price of the property in the contract to cover the closing costs. This way, it adds just a minimal amount to the buyer's payment and allows the buyer to save more out of pocket cash.
Abstract of title is
a condensed history of the title to the property.
who does not need to use the trec promulgated contract forms?
a principal in a transaction
Special warranty deed is
a type of deed that is provided in a foreclosure sale.
all of the following constitute the unauthorized practice of law:
anyone who drafts or revises a form or contract promulgated by trec, anyone who advises a person regarding the legality of the title of a piece of property, anyone who gives advice or opinions as to the legal effect of any contract.
which business organizations can own property and transact business in its name?
associations
personal property is conveyed with a ________.
bill of sale
this includes everything a couple acquires after marriage through Labor
community property
Instead of retrieving the seller's name from tax records, it is recommended (and more reliable) to obtain the seller's name from the __________.
deed
real property is conveyed with a ________.
deed
The seller of real property in Texas and a real estate broker must disclose any known _________ to the prospective buyer.
defects
Performance on the contract is often calculated from the __________________of the contract.
effective date
this is a burden obstruction or impediment on property that can lessen its value or make it less marketable
encumbrance
The ___________________________ is the most widely used residential listing in Texas.
exclusive right to sell
An assigned contract is one where the final contract is signed agreed upon and unequivocally agreed by all parties. true or false.
false
The joint broker - lawyer drafts long-term lease contracts as well as commercial contracts true or false
false
The joint broker / lawyer committee has six members. true or false.
false
a contract for an illegal purpose is legal in the state of Texas .true or false.
false
a leasehold estate is one where the duration of ownership is indeterminate, which could be for a lifetime of an individual or an unlimited duration. true or false.
false
a licensee may give opinions concerning the status or validity of the title policy true or false
false
an auctioneer is required to have a real estate license. true or false
false
an expressed contract is an agreement created by actions of the parties involved but it is not written or spoken. true or false.
false
area preference also called homogeneity is the location of the property .true or false.
false
condominiums are a form of ownership where the owner receives shares. true or false
false
eminent domain, taxation, escheat, police powers are corporate entity Powers. true or false.
false
escheat refers to a government's legal authority to force a private landowner to sell their property for public use true or false
false
in Texas legal descriptions can either be oral or written true or false
false
in the events of death of one of the owners the rights of survivorship passed to the surviving owner this is called tenancy by necessity. true or false.
false
leasehold estates include homesteads, community property rights, and water rights. true or false.
false
the maximum amount the recovery fund will pay for a single transaction is $200,000. true or false.
false
consideration is in the form of earnest money in a residential contract true or false
false. consideration is not money it is a promise for a promise the seller promises to sell the buyer promises to buy that's the consideration or the glue that holds a contract together the earnest money is just the performance requirement in the contract if the earnest money is never turned in we still have a contract.
licensed real estate agents are legally authorized to draft a document that affects the interest in a property true or false
false. sales agent and brokers are not allowed to draft documents they only have the right to fill in the blanks of the trec promulgated contracts anything more could be considered practicing law.
method of annexation fitness to the property and intention of the properties are the three tests of a __________.
fixture
police power, taxation, eminent domain and escheat are four examples of
governmental powers
this protects qualifying real estate property from for sale by general creditors
homestead
Paragraph 4 of the One-to-Four Family Contract states that
if the agent (the licensee) is a party to the transaction and own more than 10%, the agent must disclose this in paragraph 4.
a valid contract
is enforceable in a court of law
when explaining contracts to buyers and sellers it seems that there is a fine line between practicing law and not practicing law what is the distinction?
it is indeed a fine line licenses are expected to be knowledgeable and be able to explain a legal document but not give legal advice the best rule of thumb is to become very proficient in what the contract says not your interpretation of what it says if you stick to the facts and avoid making any legal representations you will not be accused of practicing law the problem arises when you begin with what this means is paraphrase each paragraph of the contract and make it as simple as possible for the buyer or the seller to understand if they want a legal interpretation then you should advise them to have an attorney review the contract and offer to take the contract to their real estate attorney.
a licensed holder may not practice _______ give advice or opinions concerning the status or validity of title and or attempt to discourage any principle from employing a lawyer.
law
By law, the ________________________ must have a termination date. The agreement cannot automatically renew.
listing agreement
a __________ that relates to the contractual obligations between a seller of real estate and a licensed holder acting as an agent for the seller must include a provision informing the parties to the contract that real estate commissions are negotiable.
listing contract
all of the following are requirements to obtain a real estate license:
must be a citizen of the United States or lawfully admitted alien, must be at least 18 years old, must meet the education requirements
It is ___________ to seek specific performance AND collect earnest money at the same time.
not possible
The process by which the seller of the house lends the buyer the money to purchase the house, instead of the buyer going through a bank, is known as ________________________.
owner or seller financing
the defining characteristic of common law is that it arises from ______________.
precedents
A contract form that has been prepared by a(n) ______________or prepared by a(n) __________, and required by a principal are all exceptions from using the promulgated forms by TREC.
principal / attorney
The _______________________ is the contractual agreement to repay the debt.
promissory note
The joint broker-lawyer committee is made up of all of the following people:
real estate brokers, lawyers, and public members
the land and all structures man-made:
real property, includes the rights as well as the real estate
the _________ must disclose the condition of the property to the buyer
seller
when an offer becomes a contract all of the following steps are required:
signatures of buyer and seller are required, both agents must meet to review the contract , all changes to the offer must be initialed
location of the property
situs
Only factual statements should be used in the ___________________ paragraph of the contract.
special provisions
_______ is a law handed down by the legislator.
statutory law
the riparian doctrine and the prior appropriation doctrine are two legal doctrines of this
surface water rights
which act created the Texas real estate commission?
the Texas real estate license act
Voluntary alienation is
the conveyance of title that must be done using a deed through sale or gift.
Chain of title is
the past series of transactions affecting title to a specific piece of land.
Who normally makes the decision of what title company will be used to close the transaction?
the person who pays for the title policy. In common use, it is the party who pays for the title policy who can choose where to close.
Foreclosure is
the process by which a lender exercises their power of sale because a mortgage is in default.;
___________ is the law which established the Texas real estate commission who is responsible for its enforcement it governs the licensure and lawful behavior of real estate brokers and salespersons.
the real estate licensing act
Eminent domain is
the right of the government to take private land for public use.
what are a property owners rights?
the right to control the right of exclusion the right of enjoyment
Upon the death of an individual is
the time a life estate terminates.
General warranty deed is
the type of deed that conveys clear title back to the Spanish land grants.
Equitable title is
the type of title that refers to the right of one person to obtain full ownership of the property.
Deed is
the way that real estate is conveyed in Texas.
Probate is
the way to confirm the validity of a will.
Estate for years
there is a defined specific beginning date and an ending date for a specific term.
The seller's evidence of title is the ________.
title insurance policy
"unconscionable action or course of action" means an act or practice which to a consumer's disadvantage takes benefit of the lack of knowledge ability experience or capacity of the consumer to a grossly unfair degree. true or false
true
An appurtenance is a right or privilege attached to a land that goes with the land when ownership of the land changes examples are condominium parking spaces easements and right away. true or false
true
An estate in land has been defined as the degree, nature, quantity, and extent of interest that a person has in real property. true or false.
true
Tenancy for years, periodic tenancy, tenancy at sufferance, and tenancy at will are the types of a non freehold estate true or false
true
a bilateral contract is a reciprocal arrangement between two parties this is called quid pro quo or a promise for a promise. true or false.
true
a formal agreement between two parties that may be rendered unenforceable for many legal reasons is called a voidable contract. true or false.
true
a general warranty deed gives clear title to a property all the way back to the sovereignty of the soil. true or false.
true
a quitclaim deed only transfers whatever ownership interest a grantor has in a property but makes no guarantees about the extent of the grantor's interest in such property if any. true or false.
true
acting as a principal a person may purchase sale lease or sublease real estate for profit without being licensed as a broker or salesperson true or false
true
an example of an executory contract is one in which repairs need to be completed true or false
true
an individual who owns mineral rights has the right to enter land that is occupied by another and remove the minerals true or false
true
consideration is an essential element of any valid contract. it is a present exchange bargained for in return for a promise. true or false.
true
corporations are organizations that can own property and transact business in its name true or false
true
if a person dies intestate without a will or heirs their real and personal property is subject to eschest.
true
in a legal subdivision legal descriptions are recorded in the county courthouse where the property is located true or false.
true
laws like zoning, land use, fire codes are example of police power true or false
true
minors, those who are mentally infirmed, and those under the influence are not considered competent parties true or false
true
personal property would be sold with a bill of sale true or false.
true
sometimes called a meeting of the minds or mutual assent an acceptance becomes binding when it has been communicated back to the one who has made the offer/counter offer. true or false.
true
the definition of real estate begins with the land. added or all structures that are man-made land is composed of three parts surface subsurface and the airspace above. true or false
true
the members of The joint broker / lawyer committee served 6-year staggered terms .true or false.
true
the physical characteristics of real property are immobility, indestructibility, and no homogeneity. true or false.
true
the term used for TREC approved contracts is promulgated. true or false
true
The primary purpose of the deceptive trade practices act is to protect the consumer against false, misleading, and deceptive business practice and unconscionable actions. true or false.
true. the DTPA is also called the consumer protection act
listing contracts must include the verbiage that commissions are negotiable. true or false.
true. there is no set or standard commission fee in real estate if commissions are fixed this violates the Sherman antitrust act.
an executed contract is one in which all parties to the contract have signed an initialed all changes true or false
true. until everyone has signed the contract and initialed all changes the contract is still considered an offer.
drafting an instrument other than a form described by section 1101. 155 that transfers or otherwise affects an interest in real property is considered the ____________.
unauthorized practice of law
If the legal description in a contract is inadequate, the contract is __________________.
unenforceable
many areas of the promulgated contract provide for termination the most obvious is paragraph 23 termination option. for a sum of money negotiated between the parties the Buyer has a time period stated in this paragraph for the ___________ right to terminate.
unrestricted
which of the following practices could be considered practicing law by a real estate broker for the sale or lease of real property?
use of a form prepared by the brokers company. (brokers and sales agents are not attorneys they cannot practice law by drawing up legal documents for customers and clients and owner selling his own property can use a form he created and an attorney of course can draw up legal documents)
this required any person claiming a riparian water right to file a claim for the right by 1969 with the Texas water commission
water rights adjudication act
is a residential promulgated contract of bilateral contract yes or no
yes because of residential promulgated contract is a promise for a promise.