Part 3 Flashcards
1
Q
TRELA
A
Texas real estate license act
2
Q
Ethics
A
Moral principles that governs a persons or groups behavior
3
Q
Punitive damages
A
Damages simply for the purpose of punishment
4
Q
Broker-lawyer committee
A
Allows TREC to create and edit contracts. Does not promulgate contracts
5
Q
TRELA
A
protects the public by setting standards for real estate agents’ conduct and competence. It also ensures that real estate agents act in their clients’ best interests
6
Q
Promulgated
A
Standardized (required)
7
Q
DTPA
A
Protects buyers from seller deception (the ones who sue you)
8
Q
TREC
A
Texas real estate commission. Promulgates contracts
9
Q
Land
A
The material of earth rock soil or other substances. Indefinite up and down
10
Q
Real estate
A
Land and everything permanently attached to land
11
Q
Real property
A
Real estate plus bundle of rights
12
Q
Bundle of rights
A
The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property
13
Q
Title
A
The evidence of right which a person has to the ownership of possession and land. A history of rights
14
Q
Deed
A
A written document by which ownership of land is transferred from one party to another
15
Q
Mineral rights
A
The land owners ability to take minerals from the earth or to sell or lease this right to others
16
Q
Air rights
A
The rights in real property to the reasonable use of the air space above and the surface of the land
17
Q
Personal property
A
All property that is not considered to be real property. That which is movable aka chattels
18
Q
Chattels
A
Goods or every species of movable or unmovable property which is not attached to land
19
Q
Bill of sale
A
A written instrument given to pass title of personal property
20
Q
Mobile home
A
A structure transportable in one or more sections designed to equip or contain not more than two dwelling units to be used with or without a foundation system
21
Q
Emblements
A
The crops and other annual plantings considered to be personal property of the cultivator
22
Q
Fixtures
A
Personal property that has become real property by having been permanently attached or adapted to real property
23
Q
Trade fixtures
A
Items that are installed by a commercial tenant and our removable upon termination of the tenancy
24
Q
Severalty ownership
A
Owned by one person only sole ownership
25
Tenancy in common
In a state or interest in land held by two or more people each having equal rights of possession and enjoyment, but without any right of succession by survivorship between owners
26
Joint tenancy
Two or more natural persons that comes with a special benefit, called right of survivorship
27
Right of survivorship
The right of a surviving tenant or tenants to succeeded to the entire interest of the deceased tenant, the distinguished feature of a joint tenancy
28
Tenancy by the entirety
Ownership by married person who each owns the entire state with the survivor, taking the whole estate upon the death of the other
29
Community property
Property acquired by husband or wife during marriage when not acquired as the separate property of either spouse each spouse has equal rights of management alienation and testamentary disposition of community property
30
Trusts
A legal device, whereby one person transfers, ownership of property to someone else to hold or manage for the benefit of a third-party
31
Trustee
One who holds property in trust for another to secure the performance of an obligation, third-party under a deed of trust
32
Trustor
One who borrows money from a trustee lender, then deed, the real property securing the loan to a trustee to be held as a security until trustor has performed the obligation to the lender under terms of a deed of trust
33
Beneficiary
One entitled to the benefit of a trust
34
Partnership
An association of two or more people who operate a business as co-owners and share in the business profits and losses.
35
Corporation
An entity establish and treated by law as an individual or unit with rights and liabilities or both distinct, and apart from those and the person’s composing it. A corporation is creature of law, having certain powers and duties of a natural person being created by law. It may continue for any length of time law prescribes.
36
Limited liability company (LLC)
A business structure that combine the pass through taxation of partnership or sole proprietorship with limited liability of corporation
37
Condominium
A form of ownership a real property recognized in all states that consist of individual ownership of some aspects and co-ownership and other aspects of the property
38
Cooperative
Form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease
39
Time share
A license or contractible membership rate of occupancy in a project which is not coupled with an estate in the real property(personal property)
Ex:resorts
40
Contract
A legally enforceable agreement to do or not do somethinf
41
Option
An irrevocable right to buy a property at an agreed upon price
42
Express contract
A contract that has been put into words , usually written but can be spoken
43
Implied contract
An agreement that has not been put into words but is implied by the actions of the parties
44
Statute of fraud
A state law requiring certain contracts to be in writing and signed before they will be enforceable by law. Ex. Contracts for the sale of real property
45
Unilateral contracts
When a party promises to do something if the other party performs a certain act, but the other party does not promise to perform it. The contract is formed only if the other party does perform the requested act.
46
Bilateral contract
A contract in which each party promises to do something
47
Listing contract
A contract in which a property owner employees, a real estate broker to market the property described in the contract
48
Exclusive right to sale
1 realtor who sales the house
49
Open listing
All realtors are fighting to sell a house
50
Executed contract
A contract that has been fully preformed
51
Executory contract
A contract that is still in the process of being fulfilled
52
Consideration
Anything given or promised by a party, including another to enter a contract. Ex. Personal services or even love and affection.
53
Valid
Having force or binding force
54
Void
To have no force or effect
55
Voidable
Is capable of being void , but is not unless action is taken to make it so
56
Assignment
A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract
57
Novation
Where both parties agree they are done with a contract
58
Breach of contract
A violation of terms or conditions of a contract without a legal excuse
59
Eminent domain
A right of the government to acquire property for necessary public use by condemnation
60
Condemnation
Taking private property for public use with fair compensation to the owner
61
Escheat
The revision of the state property and event, the owner, therefore abandoned or dies without leaving, will, and has no one whom the property may pass by lawful descent
62
Taxation
A charge on real estate to raise funds to meet public needs
63
Administrator
Person appointed by the pearl court to administer the state of deceased person who died intestate
64
Freehold estate
In a state of indeterminable duration ex. Fee simple or life estate
65
Fee simple estate
Absolute ownership of real property
66
Fee simple absolute
Inheritable estate and land, providing the greatest interest of any form of title
67
Fee simple determinable
In a state that will automatically win the stated event or condition occurs. the interest will revert to the grantor or the airs of the grantor
68
Remainder man
A person who inheritance or is entitled to inherit a property upon termination of the estate of the former owner
69
Life estate
If we hold a state created for the duration of the life or lives of a certain name persons. Non-inheritable
70
Life tenant
The owner of the life estate
71
Estate in reversion
Property or state ownership that revert back to the grantor after a temporary ownership period.
72
Estate in remainder
In a state which vests after the termination of the prior estate
73
Reversionary interest
The interest which a person has in lands or other property upon determination of the proceeding estate, a future interest
74
Reversionary interest
The interest which a person has in lands or other property upon determination of the proceeding estate, a future interest
75
Dower
A wife’s interest in her husbands real property
76
Curtsy
A husbands interest in his wife’s real property
77
Homestead
A legal life estate in land that is owned and occupied as a family home
78
Encumbrance
A claim,charge or liability that attaches to ,and is binding on real estate
79
Lien
A claim against the property that provide security for the repayment of a debt or obligation of the property owner
80
Voluntary lien
Any lien place on a property with consent of or as a result of the voluntary act of the owner
81
Involuntary lien
Eileen imposing is the property without the consent of an owner ex. Taxes
82
Mechanics lien
Specifically, the security to a person or company who performs labor or furnished material to improve real property
83
Tax lien
And encumbrance against the property field by the taxing jurisdiction for delinquency and paying real property taxes
84
Covenants, conditions, and restrictions or (CC&Rs)
The basic rules establishing the rights and obligations of owners in real property within a subdivision or any land in relation to the owners within the same subdivision or tract of land in relation to an association of owners organized for the purpose of operating in maintenance and property commonly owned by the individual owners
85
Easement
A right acquired by one party to use the land of another party for a special purpose
86
Easement in gross
A right of use in land of another without the requirement that the holder of the right own adjoined land
87
Easement in necessity
Exist when under has no access to roads and is landlocked
88
Easement by prescription
Obtained by use of the land of another for the legally prescribed length of time
89
Servient tenement
Land encumbered by an easement
90
Dominant tenement
Land benefiting from an easement appurtenant
91
Encroachment
An unlawful intrusion onto another’s adjacent property by improvements to real property ex. Pool build across a property line
92
Mineral rights
The landowners ability to take minerals from the earth or to sell or lease this right to others
93
Statute of limitations
A law establishing the time period within which certain lawsuit may be brought
94
Listing contract
A contract in which a property owner employs a real estate broker to market the property described in the contract
95
Exclusive rights to sell listing agreement
A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract
96
Non-exclusive listing (open listing)
A listing given to one or more brokers in which the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner when the owner sells the property
97
MLS multiple listing service
An association of real estate agents, providing for a pooling of listings and sharing of commission on a specified basis
98
Buyers agency agreement
An employment contract that appoints a brokerage firm as a buyers agent for the purpose of finding a suitable property for the buyer
99
Lease
A contract between owner and tenant, setting forth conditions upon which tenants may occupy and use the property and the term of the occupancy. Sometimes used as an alternative to purchasing property, as a method of financing right to occupy and use real property
100
Estate for years
An interest in land by virtue of a contract for the possession of them for a definite and limited period of time. May be for a year or less. A lease may be said to be an estate for years.
101
Estate from period to period
An interest in land, where there is no definite termination date but the rental period is fixed at a certain sum per week month or year. Also called a periodic tendency.
102
Tendency at will
A property tenure that can be terminated at any time by either tenant or the owner. It exists without a contract or lease and is unspecified in duration or the exchange of payment.
103
Estate at severance
In a state arising when the tenant wrongfully holds over after the expiration of the term. The landlord has the choice of evicting the tenant as a trespasser, or accepting such tenant for a similar term under the conditions of the tenants previous holding. Also called a tenancy at severance.
104
Security deposit
A sum of money that the landlord requires of the tenant prior to the lease. It is to be refunded at the end of the lease based on the condition of the premises.
105
Commingling
The illegal mixing of personal funds with money held in trust on behalf of a client
106
Assignment
The transfer legal rights and obligations by one party to another
107
Sublease
The transfer of only part of a lease term with reversion to the leassee. A lessor lease estate
108
Gross lease
A lease in which of the lesser pace, all the cost of operation and maintaining the property and real property taxes
109
Net lease
A lease requiring a leassee to pay charges against the property, such as taxes, insurance and maintenance cost in addition to rental payments
110
Percentage lease
Lease on property, the rental for which is determined by amount of business done by lessee usually a percentage of the gross receipt receipts from the business with provisions for a minimum rental
111
Graduated lease
Lease, which provides a varying rental rate often based upon future determination sometimes rent is based upon results of periodical appraisals. used largely in long-term leases
112
Ground lease
An agreement for the use of land only sometimes secured by improvements place on the land by the owner
113
Optionor
Person who gives an option
114
Optionee
Person who receives an option
115
Constructive notice
Notice of a condition of a real property given by the official records of a government entity, which does not require actual notice of the information.
116
Vendor
Seller
117
Vendee
A purchaser; buyer
118
Ernest money
A down payment made by a purchaser of real estate as evidence of good faith
119
Breach of contract
A violation of the terms or conditions of a contract without a legal excuse
120
Addendum
Additional pages of material that are added to and become part of a contract
121
Mortgagor
One who gives mortgage on his or her property to secure a loan or assure performance of an obligation
A borrower
122
Mortgagee
One to whom a mortgagor gives a mortgage to secure a loan or performance of an obligation
A lender or creditor
123
Promissory note
Borrow his personal promise to pay a debt according to the agreed terms
124
Usury
Part of promissory note. On a loan, claiming a rate of interest greater than what is permitted by law
125
Prepayment penalty
Part of promissory note. The charge payable to a lender by a borrower under the terms of the loan agreement if the borrower pays off the outstanding principal balance of the loan prior to its maturity
126
Deed of trust
A legal document by which a borrower pledges certain real property or collateral as guarantee for repayment of loan it differs from the mortgage in a number of important respects for example instead of there being two parties to the transaction. There are three. There is a borrower who signs the deed of trust who is called the trust store. There is the third neutral party to whom the trust store deeds the property as security for the payment of the debt who is called the trustee, and finally, there is the lender who is called the beneficiary, the one who benefits from the pledge agreement and that in the event of a default, the trustee can sell the property and transfer the money Obtained at the sale to the lender as payment of the debt.
127
Acceleration clause
Waiting and then suing for the full amount of a mortgage or deed of trust Not paid.
128
Release clause
When both parties fulfilled a contract or if they both let it go.
129
Reserves
Tax and insurance. A lender doesn’t trust you so they ask you to put funds in a blank account escrow.
130
Subject to a mortgage
Is a buyers right to pay debt, but they aren’t actually personally obligated to pay in full.
131
Assumption of mortgage
If the contract isn’t fulfilled, the buyer any seller are liable if novation (fulfilled) is completed, the buyer is liable.
132
Alienation clause
Prevents the future purchaser from being able to assume the loan.
133
Land contract
Contract is in a sale of real property where the seller retained title to the property until all or a prescribed part of the purchase price has been paid.
134
Redemption
Buying back ones property after a judicial sale
135
Judicial foreclosure
Court ordered foreclosure
Timely
Mortgage
136
Non judicial foreclose
No court order needed foreclose
Deeds of trust
Seller financing
Quick
137
Strict foreclose
Court establishes full payment by a certain day if not, the lender gets full legal title. Quick.
138
Deed in lieu of foreclosure
A nice foreclosure. If the client will move without the foreclosure process. The mortgagor gives the mortgagee the deed when the mortgagor is at fault. Must be timely.
139
140
Truth in lending
The name of regulation, Z, which are designed primarily to ensure that buyers and purchasers on credit receive credit info before entering a transaction
141
RESPA
Refers to a federal law requiring the disclosure borrowers of closing procedures and cost by means of a pamphlet and forms prescribed by the HUD
142
Preapproval
A step above pre-qualifications involves verifying a purchasers, credit, down payment and employment history
143
Good faith estimate
The lender’s estimate of the borrowers settlement cost. RESPA is required to furnish it to the borrower at the time of the loan application.
144
Clear title
Title, which is not encumbered or burden with defects
145
Underwriting
The active reviewing loan documentation and evaluation the borrowers ability and willingness to repay the loan and sufficiently of collateral value of the property.
146
Title insurance
Insurance against lost or damage, resulting and defects or failure of title to a given parcel of real estate
147
HUD form number one
A standard settlement form required by RESPA
148
Debit
In a closing statement, an expense or money received against a credit
149
Credit
In the closing statement, money to be received or credit given for money or an obligation given
150
Escrow account
The neutral third-party holding funds or something of value and trust for another or others
151
Proportion
The division of certain settlement cost between a buyer and seller
152
Proportion of taxes
To divide or prorate the taxes equally or proportionally to time of use usually between a buyer and seller
