Texas Real Estate Principles 1

Texas Real Estate Borker Lawyer Committee

13 Members (6 brokers, 6 lawyers, 1 public)

General Eligibility Requirements to be Licensed by TREC

18 years old a US citizen or lawfully admitted alien resident of the state

How many square feet in an acre

43560 square feet

How many acres in each square mile

640

Trec Commision Membership

9 Members (6 brokers, 3 public) appointed by governor. They serve 6 year staggered term.

When dealing with a client it is mandatory to give them

A copy of the "Information about brokerage services" form

Civil Rights Act of 1968

Amended the Civil Rights Act of 1866 to include race, color, national origin, religion,

Civil Rights Act of 1988

Amended to include Handicap and Familial status

Civil Rights Act of 1974

Amended to include Sex (Male or Female)

freehold estate

An estate in land, fee simple, the most common ownership

Situs

Area Preference

a person holding a power of attorney

Attorney in Fact

How is Personal Property sold

Bill of Sale

What was the Fair Housing Laws or Civil Rights Act of 1866

FEDERAL LAW that where the only protected class was Race. No one can discriminate because of RACE.

habendum clause

Fee Simple, Life Estate, Defeasable Fee (begins with to have and to hold)

The three Canons for professional ethics and conduct for Real Estate Licensees

Fidelity, Integrity, Competency

Types of deeds

General Warrenty-best deed in Texas (grantor gives no defects to title) Special Warrenty-used in commercial trans saying owner has done nothing to encumber the title during ownership bargain/sale-no warrenties against encumbrances quitclaim-in divorce gives rights to the property to the other spouse

Partnerships

General and Limited

Steering

Illigal practice of directing home seekers to a particular neighborhood based on fair housing protected classes. An agent cannot steer even if asked to by their client.

Recorded plat

Legal land description which divides larger plats into smaller plots. When land is divided in lots.

Four types of legal descriptions of land

Metes and Bounds Rectangular survey system recorded plats reference to documents other than maps

does grantee need to sign deed

NO

Classification of plants (Annual or fructus industrials or emblements)

Personal Property

Homestead

Texas is a Homestead State. The property that you own and live in. It is a constitutional right that cannot be waived.

community property

Texas is a community property state.

Under what circumstances can a person be called a "Realtor?"

That agent has to join the "NAR" National Association of Realtors to be called a "Realtor"

Personal Property

Things not attached to the land

Escheat

When one dies without a will or heirs the government takes it as it no longer has an owner basically going back to the state.

Encumbrance

When under Fee Simple one of the sticks or bundles has been removed. Ie. mineral rights, lien, encroachment, easement etc

fee simple defeasable

a gift of land by a person or GRANTOR

the only contract that does not have to be in writing to be enforceable

a lease for one year or less

unilateral contract

a promise in exchange for an act (option paragraph in a sales contract)

good and indefeasable title

a title that cannot be defeated by a superior claim

codicil

a written addition to a will the replaces or revokes what was written in that persons previous will

Deed

a written document that transfers real estate from one owner to another

A commission may suspend or revoke a license for

acting negligently or incompetently, comingling money and soliciting or selling offers for the sale of real estate by means of a lottery

If a seller asks agent to discriminate

agent must refuse to take the listing

Chattel

also known as Personal Property

Life Estate

an estate in land for the duration of someones life (always a gift of land/ real estate)

Trade fixture

attached to the property under a commercial lease

LLC Limited Liability Corp.

blends partnership and corp.

A certificate is required seperate of the license when

buying, selling or leasing an easement pertaining to telecommunicaton, utility, railroad or pipeline services.

Tracking

claimant can track the time they had possessed the property onto the time the prior claimant possessed the property

Five elements that make a contract valid

competent parties, legal objective, offer andacceptance, contract in writing and signed

abstract title

condensed history of all docs that have been recorded affecting the title of the property

executor contract

contract in the process of being performed

quiet title suit

court holds hearings on ownership of propertyand any invalid claims or disputes will be removed by the court

Deed in trust

delivers ownership of property at another date

probate court

determines if the will meets the requirement of the law

Reliction

dry land that results when water withdraws from the land

easement by necessity

easement given when one property is landlocked and needs to be given access to from someone elses land

easement by prescription

easement granted after dominant estate has used the property in a constant continuous and open manner for a prescribed number of years

ADA Americans with Disabilities Act

enacted in 1992 deals with commercial property only

Payments into Trust Account

ensures the availibility of a sufficient amount to pay on anticipated claims on the trust account

chain of title

everyone who has ever owned that property

All contracts

expressed-writing or oral OR implied-understanding

Tenancy by entirety

form of ownership used by married couples who do not live in a state with community property-has downer and curtesy rights

dedicaton

gifted private property to the public (land to city that is to be used as a park)

equitable title

gives buyer the right to demand legal title to the property when the purchase price is paid

Eminent Domain

government can take privately owned real estate for public use

types of easements

gross necessity perscription appurtenant

holographic will

handwritten will

Define Handicapped

having a physical or mental disability (including hearing, mobility, visual impairment, chronic mental illness and AIDS) that substantially limits one or more major life activities.

Fee Simple

highest and greatest type of ownership interest (Title) that can be held in real property.

Urban homestead

homestead limited to 10 acres

Physical Characteristics of land

immobility indestructibility nonhomogeneity

right of suvivorship

in joint tenancy if one partner dies his share goes to the remaining partners

Police Power

in real estate applies to planning laws, building codes, fire codes, rent control and health codes.

Easement in gross

is a utility easement

An appeal can be made on a decision by the commission

it must be taken to the district court in the county where the administrative hearing was held.

Accretion

land is increased in size because of natural deposit of rock and soil usually caused by water movement

Statute of Frauds

law that requires some documents (deeds included) to be in writing and signed in order to be enforceable by law

Liens

legal claim on someones property as a security for a debt

metes and bounds

legal land description most used in the US using distance and direction to define and describe the boundaries of a property

Rectangular survey system

legal land description using latitude, longitude lines, standard parallels and base lines to divide the earth into ares

mortgagees title police

lenders policy and loan policy

rural homestead

limited to 200 acres for a married couple 100 for a single person

Lis penden index

list any lawssuits on property and gives any attachements to theproperty

REIT Real Estate Investment Trust

many people can come together and invest in real estate-investors are the beneficiaries who buy shares in the company (beneficial interest)-income tax is only paid at the beneficiaries level

Tests of a fixture

method of attachment (annexation) Fitness or adaptation to property Intention of the parties

earnest money

money offered to seller to entice seller to go under contract

Types of liens

mortgage, property tax lien, mechanics lien, judgement and can be voluntary or involuntary and are either specific or general

The deed

must be delivered and accepted for tilte to transfer

all documents concerning real estate

must be recorded at county clerks office in the county where the property is located

Two ways to record a Deed

occupying/using the land recording docs pertaining to property with county clerks office

corporation

owned by a group of people-owned by stockholders

Joint tenancy

ownership in property where owners own equal shares and has right of suvivorship-cannot be passed on to others upon their death, cannot be sold or given away either-last surviving owner takes property in severalty

grantor

person giving up ownership

Jurat

person signing the document states the info in doc is true (notary public)

administrator

person who administers the wishes of a will assigned by the court in the event the executor is not will to perform

testate

person who dies leaving a will

intestate

person who dies without a will

License

personal priviledge given to someone to use land-not an estate or right to land

title insurance

policy that will insure against losses from title defects and against errors in title examination

bilateral contract

promised for a promise (real estate contract)

deed restrictions/covenents

put into place by developer and are a private control of property

devise

real estate left in a will

constructive

recording deed with county clerks office

curtsey rights

right a husband has to his wifes estate upon her death

Dower rights

right a wife has to her husbands estate upon his death

easement

right of one person to use the property that belongs to another

Appurtenances

right or privilidge to land that goes with the land when ownership changes such as parking lot spaces, easements, right or ways

Littoral Rights

rights to anothers land who borders a lake

Riparian Rights

rights to anothers land who borders a stream or river

economic characteristics of land

scarcity, modification, improvements, permanence of investment, area preference.

contract for deed/installment contract

seller financing and buyer does not get deed until the property has been paid for in full

Texas Board of Insurance

set insurance premiums based on the sale price of property and is paid at closing of property

Estate of Severalty

sole ownership of property-not part of community property

consideration

something of value (dollar amount)

Encroachments

something that extends across a property line onto the property of another

title commitment

states what the title covers and does not cover

Novation

substitution of a contract with another contract ie. counteroffer

Avulsion

suddent removal of land by water

if property was built before 1978 seller must disclose

that the property may contain lead based paint-Federal Law

Erosion

the gradual wearing away of land and rock by water

Alluvion

the land that has been created by Accretion

Bundle of Rights or Bundle of Sticks

the many rights the Fee Simple gives to owners of property-bundles or sticks can be removed but the owner still owns the Fee Simple

condemnation

the process of eminent domain

conditions upon which a joint tenancy can be made

there must be unity in time, title, interest and possession time-acquire ownership at the same time tile-acquire title from same source interest-equal interest in property possession-all owners have right to possess property

Marketable title

title that is free from doubt as to who owns theproperty

Alienation

transfer of ownership of property

Tenents in common

two or more people acquire property but ownersship is not equal

Easement appurtenant

used between two lots to allow the owner of one lot to cross the others property

contracts are

valid, void (made for illegal purposes) voidable (binding against one party but not the other) unenforceable (oral listing agreement)

type of alientation

voluntary and involuntary

Fixture

was personal property but then became real estate because it has been attached to the land

actual notice of anothers interest in property

what heard, seen and read

breached

when one party fails to perform the duties of the contract-they can be asked by judge to partially perform or substatially perform

Adverse Possession

when one person takes possession of anothers land and holds that possession for a long enough period of time tobe able to make it theirs and take ownership of it