Chapter 7 Flashcards
(30 cards)
Section 1101.051 Commission Membership
TREC has 9 members appointed by the govorner:
6 brokers: must have at least 5 years of brokerage experience
3 public members: represent the public, not in the real estate industry
All must be qualified voters
Appointments must be made without discrimination
Section 1101.004 Real Estate Brokerage
A person is considered to be engaged in realestate brokerage if they perform or offer to perform real estate activities for another person in exchange for compensation; whether it’s just part of the transaction or the entire thing
Required topics in Real Estate Law
Legal real estate concepts
Land description methods
Estates in land and real property rights
Contracts
Conveyance
Annexation
Making personal property into real property.
Who enforces TRELA
TREC
Topics under real estate finance
How the monetary system works
Primary and secondary mortgage markets.
Where mortgage loan sources come from
Govt loan programs
How to complete a loan application
What closing costs are
Alternative financing/seller financiang/wraparound mortgages.
Equal credit opportunity
Community reinvestment Act of 1977
Texas State Housing Agencies
Real Estate
Land and human made improvements (buildings, fences, roads)
Equity Build-Up
Increase in ownership value as the loan is paid down
Equitable Estates
Rights or privileges that create an interest that is less than ownership or possession but nonetheless exists
Responsibilities under TRELA
Fair Housing Compliance
Use of Promulgated forms
Advertising regulations
Disclosure rules
Overall compliance with TRELA
TRELA
Passed in 1939
Protects the public from dishonest brokers and sales agents
Makes it unlawful to act as a broker or sales agent in Texas without being properly licensed by TREC
Co-Ownership
Shared ownership by 2 or more ppl/entities
Mortgage Interest Deduction
Tax break on interest paid on the mortgage loan
Personal Property (Chattel)
Things that can be moved
Emblements
Crops that require annual planting and are considered personal property, even if growing on leased land
Loss of Use
Provides living expenses if the home is unlivable (pays a % of dwelling coverage or a fixed time)
Adjusted Cost Basis
Original price adjusted for improvements and other costs
Rectangular Survey System
Based on meridians (north/south) and base lines (east/west). Divides lands into squares called townships and sections. Mostly used in western states.
Legal description that uses meridans and base lines
Express Authority
Written or clearly stated instructions from the client to the agent
Trustor
Creates the trust and places property in it.
General Agency
Common in property management
The agent can make day to day decisions
Manages income, repairs, leases, etc
Section 1101.0045 Equitable Interests in Real Property
A person can acquire equitable interest in real estate and then assign or sell those interests without a real estate license only if:
They’re not using the contract/option to practice real estate brokerage
They disclose in writing the nature of their equitable interest to all parties.
Section 1101.058 Per Diem; Reimbursement
Commission members are entitiled to:
$75 per day when performing official duties
Reimbursement for actual and necessary expenses while performing duties.
Section 1101.059 Training Requirements
New members of the commission cannot vote or deliberate until they complete mandatory training:
Commission laws and operations
Budget, programs, and functions
Rulemaking scope and limitations
Enforcement actions and potential antitrust implications such as: regulating professions, restricting advertising or participation, impacting pricing of services.
Most recent formal audit results
Laws on : open meetings, public info, conflicts of interests, etc
State policymaking body responsiblilites
