Contract Law Part I Flashcards
What is the purpose of TRELA?
To safeguard the public interest and protect consumers of real estate services
How many commission members are there and how many must have at least five years of service as brokers before being appointed to the commission?
There are nine members. Six of the members must have been active as real estate brokers for at least five years prior to their appointment.
What is an easement?
A right to cross or otherwise use someone else’s land for a specified purpose.
What is meant by the term involuntary alienation?
The loss of property due to an adverse action such as a foreclosure or tax sale.
What is the difference between an addendum and an amendment?
An addendum is a document attached to and made a part of the original contract. An amendment is a document that makes a change to the ratified sales contract.
What is a Contingency
A provision in a real estate contract that specifies the contract would cease to exist upon the occurrence of a certain event.
Define Counteroffer
An offer made in response to a previous offer by the other party during negotiations for a final contract
What does the term proration mean?
The amount of or the act of determining a portion or share of a cost or benefit to be allocated between two parties
In 1939 the Texas legislature passed
the Real Estate Dealer’s License Act, which required real estate agents to obtain licenses. In 1955 the act’s name was changed to the Texas Real Estate License Act (TRELA).
Purpose of TRELA
to safeguard the public interest and protect consumers of real estate services. The commission has rule-making authority and any rules they make have the full force and effect of law.
TRELA Commission Members
There are nine commission members. Six of the members must have been active as real estate brokers for at least five years prior to their appointment, and three members must have no financial interest in the real estate business.
Air Rights
The right to control, occupy, or use the vertical space (air space) above a property, subject to necessary and reasonable use by neighbor(s) and others (such as aircraft).
Bilateral contract
A reciprocal arrangement between two parties where each promises to perform an act in exchange for the other party’s act.
Bundle of rights
A set of legal rights afforded to the real estate title holder which can include the right of possession (the property is owned by the title holder), the right of control (the owner controls the property’s use), the right of exclusion (the holder can deny people access to the property), the right of enjoyment (the holder can use the property in any legal manner) and the right of disposition (the holder can buy or sell the property).
Easement
A right to cross or otherwise use someone else’s land for a specified purpose.
Eminent Domain
The power to take private property for public use by a state, municipality, or private person or corporation authorized to exercise functions of public character, following the payment of just compensation to the owner of that property.
Encroachment
A situation where a property owner violates the property rights of his neighbor by building something on the neighbor’s land or by allowing something to hang over onto the neighbor’s property
Encumbrance
A claim against, limitation on or liability against real estate; encumbrances include liens, deed restrictions, easements, assessments and taxes.
Equitable Title
The portion of control that a buyer has while a party in a contract for deed or an installment contract for the property; the ability to gain full control and title to property while someone else owns legal title.
