Principles I - Real estate license

43560 sq ft

1 acre =

5280

1 mile = _____ ft

10 day

A broker needs to inform the Commission of a change of address within ___ _____ day of the move

equitable lien

A buyer does not pay for a property in full. This is an example of a(n):

equitable estate

A buyer is purchasing a property. They signed a contract but the sale has not yet closed. What kind of ownership interest or estate do they have?

right of possession

A couple renting a home have a leasehold estate, which means they have:

immediate right

A key element of liens is that they usually provide an almost ________ ________ for lienholders to liquidate property upon default of a debtor

100,000

A license holder is facing three separate complaints. The license holder must pay $60,000 for the first complaint, $15,000 for the second complaint and $85,000 for the third complaint. What is the maximum amount that the Commission will pay on the license holder's behalf?

general lien

A lien that includes the real estate and the personal property

metes and bounds

A method of land description which involves identifying distances and directions and makes use of both the physical boundaries and measurements of the land.--most accurate--most common survey

trust

A minor is named the beneficiary of real property upon the passing of the property's owners, but with the stipulation that the property will be held by another party until certain conditions are met (i.e., the minor is no longer a minor). What is the correct term for this legal arrangement?

specific, voluntary lien

A mortgage is an example of a:

designated agent

A person who possesses a broker's license and is responsible for not only their own actions, but the actions of every license holder in their real estate office is called a:

will

A testamentary trust is created through the use of what?

2 yrs

About how long can you have an expired license but still be eligible to reactivate your license without retaking the state exam?

first substantive dialog

According to the Texas Real Estate License Act, when must the written statement providing the Information about Brokerage Services be provided?

30

After how many days will the Commission notify an applicant of their moral determination?

20 days

After receiving a notice of violation, how many days does a license holder have to request a hearing?

agent and client

Agency relationships are generally formed between which two people?

commissions are negotiable

All listing contracts in Texas must include two pieces of information: the special rules concerning anyone who lives on a coast and what else?

abstract of title

An abbreviated history of a property, including info on any transfers, grants, wills, conveyances, liens, and encumbrances is called what?

5000

An administrative penalty from TREC cannot exceed $_____

immediately

As a broker, when should you inform a buyer, seller, or agent that you are representing a party involved with the property the buyer, seller, or agent is interested in?

errors and omissions insurance

As a license holder, what could help protect you against mistakes you might make in real estate transactions?

is a license holder who represents a principal through cooperation with the principal's broker.

As defined in the Texas Real Estate License Act, what is a subagent?

18

At what age does a child living with his or her parents no longer qualify for familial status protection under the Fair Housing Act?

yes, commissions are negotiable

Brokerage A charges clients a 6% commission, while Brokerage B charges only 5%. Is this legal? Why or why not?

rectangular survey

Choose the survey method that could result in this legal description: "SW 1/4 of the NE 1/4 of the NW 1/4 of Section 2, Township 8 South, Range 3"

sunset act

Commission to evaluate all state agencies every 12 years with respect to their: Efficiency Need for their continued services

misdemeanor

Committing a real estate act without a license is what kind of crime?

no

Does misrepresentation require malicious or deceptive intent?

no

Does the Texas Homestead Act protect a property from federal tax liens?

when betsy dies

Doug granted Betsy a life estate for a property he owned and named his son as the remainderman. When will his son become the owner of the property?

regarding residential leases

For any residential lease that may exist on the property, the contract should include the TREC form Addendum.....

client

For real estate license holders, who is considered "your principal"?

the same

How do the time requirements for online continuing education classes compare to in-person continuing education classes?

1 year

How long from the TREC filing date does an applicant have to take the state exam?

43560

How many square feet are there in an acre?

7

How many years are surveys typically good for?

annually

How often will you be formally evaluated in the workplace?

sue for specific performance

If a contract has been breached, and the non-breaching party wants to force the breaching party to do what it says in the contract, what can the non-breaching party do?

federal tax lien

If a property owner does not pay their income taxes, the IRS may put what on their property?

grantor

If no third party is named as remainderman, when a life estate owner dies, the property reverts to the:

general

If partners share all of the resources and responsibilities for their business, what type of partnership are they in?

riparian

If someone has a river on their property, what type of rights would be associated with it?

the law

If the Code of Ethics and the law conflict, which takes precedence?

exclusive right to sell, exclusive agency

If the seller guarantees the named broker receives a commission if the property is sold, regardless of who purchases the property, then they have entered an ____ _____ ____ ____ listing. If the named listing broker is owed commission only if the property is sold by someone other than the owner, is an ____ ______ listing.

texas commission of environmental quality

In Texas, the agency responsible for governing water rights is the....

general partners

In a limited partnership, who oversees the daily activities?

agency relationship

In addition to detailing the agreement between the broker and the client, the buyer's representation agreement and the listing agreement create what?

rectangular survey

In terms of the surface area surveyed, which surveying system is used to describe the most land in the U.S.?

blocks

In the recorded plat system, parcels are individual lots that combine to make:

1913

In what year was the National Association of REALTORS® Code of Ethics first adopted?

no

Is "123 Buyer Lane, San Antonio, TX 78216" an adequate legal description?

tx law of descent and distribution

It determines who gets what share of a deceased person's property. Distribution depends on whether the person is married, has children, and/or has surviving parents or siblings, and whether they die testate (that is, with a will in place) or intestate (without a will in place).

disclose that she is representing the homeowner

Jamie is an agent representing a seller. She holds an open house to find a buyer for the home. What is she legally required to do?

the tenant

Landlords are required to allow tenants to make modifications to their property in order to accommodate their disability. Who's responsible for paying for these modifications?

encumbrances

Liens, easements, and encroachments all create:

fee simple estate

Monica owns her house. For the duration of her lifetime, she has the right to her property (unless she sells it) and can will her property title to her children after her death. Monica has a:

apply, automatic

Must _____ for homestead tax exceptions, but homestead rights are __________

field stating "BC: 3" means the buyer's broker will get a 3% commission once the sale closes.

On a listing sheet, what would a field stating "BC: 3" mean?

interest

Once all hearings and appeals have been completed, a broker or sales agent will have to start paying what on any owed funds?

1978

Owners of properties built before what year should be concerned about the possibility of lead paint contamination?

TREC

Promulgated contracts are prepared by:

value of property

Property taxes are based on what?

familial status

Protected classes in the Fair Housing Act of 1968 include race, color, religion, national origin, sex, disability, and what other category?

equal credit opportunity act

Sally and Fred are two single people buying a home together. The lender is threatening to deny them a loan because he does not like their lifestyle. If the lender does that, it will be a violation of the:

2 yrs

TREC requires applicants to pay renewal fees every how many years to maintain an inactive license?

tx real estate

TRELA is a law passed by the Texas Legislature to govern:

groundwater rights

Texas follow the rule of capture, meaning the landowner does not actually own the water under the property, but they have the right to drill for the water and use it.

creditors

Texas homestead laws protect homeowners from:

preamble and 17 articles

The National Association of REALTORS® Code of Ethics consists of:

water rights

The TCEQ is tasked with regulating which of these things?

tx occupations code

The Texas Real Estate License Act is Chapter 1101 of the:

listing broker

The amount offered to a cooperating broker is at the sole discretion of the _____ _______

parcels, blocks

The individual lots that are combined to make a block are called ______. ______ are combined to make a subdivision.

beneficiary

The individual who receives the trust is called the...

preamble

The introduction to the National Association of REALTORS® Code of Ethics is called the:

trustee

The manager of the trust, a.k.a. the third party, is called the...

multiple listing service

The name service that exposes a property to a larger audience of buyers and also offers advantages to sellers, brokers, and buyers is called the

trustor

The transferor or creator of the trust is called the...

special agent

To a client, what is a broker considered to be?

6

Township lines run west and east, parallel to the baseline. How many miles apart from each other are they?

true

Under the ECOA, it is legal for a lender to ask if a borrower is separated.

no contest plea

What are nolo contendere pleas sometimes referred to as?

unpaid income tax

What could cause a federal tax lien to be placed on a property?

misrepresentation

What does the integrity portion of the Canons of Professional Ethics charge license holders with avoiding?

community reinvestment act

What federal act was passed to help eliminate redlining?

consumer protection notice 1-2

What form does the Canons of Professional Ethics and Conduct say must be on display in a readily noticeable location in each of the real estate brokers places of business?

breach of contract

What is it called when one or more of the contracting parties either partially or completely fails to fulfill the contractual obligations?

intermediary relationship notice

What is one promulgated form that Texas REALTORS has and TREC does not?

title insurance

What is one thing buyers can get to protect themselves against loss if someone attacks their title?

abstract of title

What is the history of the title to a property called?

service

What kind of contracts are listing agreements and a buyer's representation agreements?

certificate

What must you have if you wish to sell, buy, lease, or transfer an easement or right-of-way?

cite sources

What should a license holder do when reporting facts in an advertisement?

vertical land description

What survey method is used for expressing condominium ownership boundaries?

limited

When a business has general partners that oversee the daily activities of the business and other partners that are only investors and only have liability up to the amount of their investments, what type of partnership do they have?

substantive dialogue

When a property is talked about in a meeting or via written communication, that is called:

rejecting counter offer

When a seller receives a counteroffer and lets it expire, the seller is:

remains open

When an offer is made, it can be accepted, rejected, retracted prior to acceptance, countered, or allowed to expire. Until one of those things happens, what is the status of the contract?

receving valuable considerations

When is a license required to sell property?

initial meeting

When should agency relationships be disclosed?

metes and bounds

Which legal description will likely include the phrase "point of beginning"?

paragraph 6d

Which paragraph of the One to Four Family Residential Contract says that buyers can object to something they find in the survey?

civil rights act of 1866

Which was the first housing discrimination protection act?

buyer and broker

Who are the parties to the buyer's representation agreement?

seller and broker

Who are the parties to the listing agreement?

governor

Who designates a broker member of the Commission to serve as a presiding officer?

mortgage company

Who initiates the foreclosure on an 80-10-10 loan?

commissioners

Who is responsible for informing TREC employees of their conduct expectations and responsibilities?

any time

With a revokable living trust, when are the beneficiaries able to change the conditions of the trust?

encroachment

Without permission, Betsy's neighbor built a fence that extends onto Betsy's property. What is the fence?

steering

You are working with a Black buyer, Tom, and you decide to show him homes in a neighborhood with a high Black population. This illegal act is known as:

actual

_____ notice is when an individual actually knows of the fact.

trec, trela

_______ is a government agency created by the tx legislature to enforce _______

constructive

__________ notice is when a property's ownership is recorded publicly, so everyone can know the contents of recorded documents

datum

a base point from which elevation is measured-- sea level

executed contract

a contract in which all terms have been fulfilled by all parties

unilateral contract

a contract in which only one of the contracting parties is bound two parties, one promise

tax lien

a kind of statutory lien that is imposed against real property if the property owner becomes delinquent in the payment of taxes.

equitable lien

a lien imposed by the courts with one party charging their property as security for a debt or loan

non performance due to legal issues

a party cannot be compelled to perform an illegal act to meet the terms of the contract permissible discharge of a contract to avoid the violation of law

encroachments

a physical intrusion on someone else's property without direct permission an illegal use of another land owner's property

contour map

also called a topographic map, is a map in which curved lines (contour lines) connect contiguous parts of equal elevation to define the contours of the land.

net listing

an agreement in which the seller names a minimum sales price they will accept for a property, with any excess paid to the broker as commission

listing agreements

basically service contracts made between a buyer or seller and a broker.

execution lien

can be issued by a court to force payment of monies owed from a judgment when a debtor does not pay gives court officers the right to confiscate and sell the debtor's property to satisfy the debt

general partnership

combines two or more parties' resources, assets, and expertise into a business unit; all partners can be held legally responsible for the other partners' actions and commitments.

abstract of title

condensed history of title to a tract of land that summarizes the transfers of ownership and encumbrances.

partnership

creates financial and legal responsibilities for general partners Limited partners' liability is generally limited to the amount of their investments in a business.

freehold estate

defeasible fee estate life estate

estate

degree, quantity, and extent of interest one owns in property

extra territorial jurisdiction

disclosure: Smaller towns that surround cities across Texas are areas known as... may be subject to city taxes if the town is annexed into the city

ranches

disclosures: Additional tax liability typically happens when selling which of these types of property?

public improvement district (PID)

disclosures: If a county or city has made some type of improvement that benefits property owners in the area, there will be an additional tax that the owners will have to pay

Mold Remediation Certificate

disclosures: If a home has had mold in the past, but the mold has been removed, the owner will receive a ______ ______ ______ from the company who worked on the home. That certificate is good for five years.

Municipal Utility District (MUD)

disclosures: If you live outside of a city area in Texas, your property is most likely covered by a taxing entity called the.....; Taxes are levied to support the building of infrastructure for basic utilities.

addendum for coastal area property

disclosures: The other disclosure concerns properties along the coast. This disclosure is made through the use of the ______ ____ _____ _____ ______. This addendum notifies the buyer that if their property has a common boundary with lands that are submerged at certain tides, then there will be restrictions on how the property may be used and developed.

testate

dying with a will in place

intestate

dying without a will

vendors liens

enforced by filing suit to have the property sold the lender holds it when a seller does not finance a loan

leasehold estate

estate for years periodic estate

liens

evidence an owner's debt and obligation to pay the debt use subordination agreements to change the priority

general, involuntary lien

federal judgement lians are...

open beach law

gives the public the right to use the beaches. This basically states that even though someone may own a lot, no building may be built in an area that is an easement for the public.

Littoral rights

govern lakefront or oceanfront property and usually allow the property owner to use the water bordering their property.

Riparian rights

govern the use of flowing water, such as rivers and streams that pass through or border a property.

Doctrine of Prior Appropriation

have enacted laws that require water users to obtain a permit from the state. In general, those laws provide the highest priority to the earliest water users.

640

how many acres are there in each square mile (section) in a township?

equitable estate

if another party has an easement on your property commonly created by encumbrances

material fact

in a real estate transaction is any fact that is significant or essential to the transaction - that is, any piece of information that could reasonably be expected to influence a prudent individual's decisions regarding the transaction.

lis pendens

inform public when a lawsuit is filed that affects specific real estate

easement

interest in, or a right to use, another individual's land or property, generally for a specific, limited purpose.

trela

is a law passed by the tx legislature to govern tx real estate

statutory lien

is a lien brought by a government entity.

title insurance

is a policy that protects homeowners (and likewise, lenders) from certain financial losses due to title issues, such as defects, encumbrances, and liens.

right of way

is a type of easement used for passing through another's land

sales agent

is defined as a person who is associated with (sponsored by) a licensed broker for the purpose of performing any of the practices of real estate as described above and by TRELA.

land trust

land is purchased to be held for a long period of time for the benefit of certain people that are named when the trust document is created.

uniform partnership act

law that outlines the basic requirements of a partnership agreement, apart from any specific details that might be written into a particular partnership contract.

specific lien

lien that is against only the real estate

limited partnership

made up of both limited and general partners; function more like investors; liability is limited

nolo contendere

means that a person was accused of something and was a defendant in a trial, but will accept the decision of the court without pleading guilty to the charge. "no contest"

ingress

means the right to enter property

egress

means the right to exit property

specific, involuntary lien

mechanics lien is...

exclusive agency listing

might occur when an owner has been trying to sell the home themselves as an FSBO (For Sale by Owner). After some time, the owner decides to list it with a real estate agent. The seller will state that they have already shown the property to five people, and if any of them come back to buy, the seller does not want to have to pay the agent a commission.

open listing

multiple real estate brokers (and the owners themselves) have the right to sell the property. A commission will be paid to whichever agent is the procuring cause of the sale.

opinion of title

official opinion of an attorney regarding the condition of a property's title. Created by searching title records

community project

ownership by married couples each half of a couple owns half of the property

parcels and blocks

plat include what two things?

homestead

property that a person or family owns and occupies as their primary residence.

remainderman

refers to the recipient of the remainder — either the grantor who set up the life estate or a designated third party.

forbearance agreement

requires one or more of the contracting parties to refrain from actions they are otherwise legally entitled to perform.

performance agreement

requires the contracting parties either to perform certain actions or to uphold certain contractual promises.

joint tenants

right of survivorship, even for unmarried co-owners requires all four unities

judgement liens

takes effect only after it has been recorded in the county clerk's office when decrees given by courts specify the amount of money owed

severalty

tenants in common is also referred to as...

attachment liens

the court seizes property until it reaches a judgment protects creditors from a conveyance of title before a judgment is rendered.

tenants in common

the default way to take title as an unmarried couple co-owners don't have the right of survivorship

remainder

the estate that will pass to another party at the death of the person upon whom the life estate is based.

coorporating broker

the other broker or sales agent who shows the listed property to a buyer who subsequently purchases the property.

accretion

the process that results in the gradual increase in land area through deposits of soil by action of water.

avulsion

the sudden loss of land by flood or when a stream or river changes course. Because it's a sudden change, no title is lost.

limited liability company

to be a hybrid of a limited partnership and an S corporation; none of the members (owners) of the company can be held personally liable for debt.

living trust

trust created during someone's life to manage their assets in life and in death.

Revocable living trust

trust may be changed by the beneficiaries at any time

testamentary trust

trust which is created through the use of a will when someone dies.

real estate investment trust

trusts which are made up of multiple investors investing in property; main income of investors is rent

syndicate

two or more people or companies that join together to create and run a real estate investment; A builder, a property owner, a surveyor, a water system owner, and others may get together and create a development so that all can share in the profits or losses.

10% down payment, 80% loan from mortgage company, 10% finance with seller

what is the 80-10-10 loan?

severalty

when a corporation owns property, the property is owned in _________.

mortgage lien

when a person buys a home, the home itself becomes collateral for the loan, so the lender obtains it specific because they only apply to the property that is secured by the debt and voluntary because owner voluntarily enters into the contract

held in trust

when a property is ____ ___ _______ an individual transfers ownership of that property to another individual, who in turn manages that property for a third party.

mutual agreement

when all parties mutually agree to cancel the contract discharge can be for any reason if all parties agree

Partical performance

when at least one party performs only a portion of the agreed-upon contractual duties the party injured by the other party's failure to fully perform can seek legal restitution or discharge the contract

related directly to property

when is a death on the property needed to be disclosed?

reversionary interest

when the property reverts back to the person who granted it in the first place once the life estate's measuring life ends

1949

when was trec created?

1939

when was trela passed?

pocket listings

which are listings that do not appear on the MLS; or owner sells their house themselves; or in the time between when it is secured by the sellers' agent and when it shows up on the MLS.

exclusive right to sell listing

which is a listing contract in which the broker has the exclusive right to sell the property and the owner has agreed to pay them a commission; also gives broker the right to advertise

equal credit opportunity act

If a lender refuses to make Harry a 30-year mortgage just because Harry is 85 years old, they will have violated:

10

If a licensee's address changes, they must notify TREC of the change within __ days.

disclosure

In an agency relationship, the agent owes the principal the fiduciary duties of loyalty, obedience, accounting, confidentiality, reasonable care, and what else?

true

t/f: If an agent closes a sale unaware of hidden water damage to the roof, the agent would be most likely covered by errors & omissions insurance if a lawsuit were to be filed.

640 acres

1 section/square mile =

36 sections

1 township =

marketing purposes

If a salesperson has no interest in opening their own brokerage, why might they still want to get a broker's license?

cite sources of info

What is the BEST way to avoid giving misinformation (and consequently, violating the Texas Deceptive Trade Practices-Consumer Protection Act)?

fiduciary duties

What is the name given to the duties owed by agents to their clients?

chapter 572

What law (chapter) imposes a code of ethics and standard of conduct on members of the Commission?

familial status and disability

What two important classifications were added to the list of protected classes under the 1988 Housing and Community Development Act amendment?

bilateral contract

What type of contract is a real estate sales contract?

contour map

What will a developer need to determine the need for leveling, grading, and engineering problems that may arise?

bilateral contract

creates reciprocal obligations an agreement in which both parties give consideration and promise to perform

broker

is a person or business entity who is licensed to represent one of the parties in a real estate transaction in exchange for a commission or other valuable consideration.

false

t/f: A person who is employed to rent land by the owner needs a real estate license.

false

t/f: If a license holder does not disclose a defect in a property to a customer or client because the broker or sales agent did not know about the defect, the license holder is still liable.