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
