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Principles of Real Estate I > Principles of Real Estate > Flashcards

Principles of Real Estate Flashcards

1
Q

How often should agents pay their portion of the IRS taxes to avoid a lump sum on April 15th

A

Quarterly

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2
Q

________ taxesCreate the highest priority lien against real property.

A

Property

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3
Q

Refers to how the item was attached to the property.

A

Method of attachment

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4
Q

ownership of real estate by two or more entities in undivided interests. Because these interests are undivided, all co-owners share the right of possession of the property. In the event that a deed does not make
the type of joint ownership clear, Texas courts will always assume that the owners are ____ ___ ______

A

Tenancy in common

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5
Q

Are considered personal property and may be harvested by the owner of the crop.

A

Emblements

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6
Q

Rights that give an owner the right to use water from a river or stream on or next to the property.

A

Riparian rights

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7
Q

refers to the fact that land cannot be moved.

A

Immobility

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8
Q

Air rights are commonly leased or conveyed in ______.

a. Cell tower leases
b. Condominiums
c. Outdoor advertising
d. All of these are correct

A

d. All of these are correct

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9
Q

the soil added to the land by the accretion.

A

Alluvion

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10
Q

What happens if the Recovery Fund goes above $3.5 Million

A

The remainder is placed in the state general revenue fund

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11
Q

Permission to perform a particular act upon the land or property of another. A

A

A license

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12
Q

When tenants add _______ to leased property, the _______ generally become the property of the landlord.

A

Fixtures

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13
Q

The _______ partner is responsible for the day-to-day operations of the business and has full liability.

A

General Partner

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14
Q

Syndicate

A

When two or more parties join together to create and operate a real estate investment,

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15
Q

a trust created during the lifetime of the trustor.

A

An inter vivos trust

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16
Q

This process of attaching personal property so that it becomes real property is called

A

Annexation

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17
Q

Rights that extend above the surface without limitation.

A

Air rights

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18
Q

Tenancy in common is an ______ of _______, and title passes at probate. Their interest will pass to their heirs or beneficiaries named in a will upon death.

A

estate of inheritance

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19
Q

Lease wherethe landlord pays all the expenses of the property.

A

A gross lease

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20
Q

Tenant pays rent plus a portion of the property’s expenses, such as taxes, maintenance, or utilities

A

Net lease

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21
Q

Personal property that has become attached to the land in such a way as to become real property

A

Fixture

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22
Q

Wha is the purpose of the TREC’s Recovery Trust Account.

A

The purpose of the account is to protect aggrieved individuals who suffer a monetary loss due
to illegal acts of license holders.

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23
Q

The court requires this form easement or states it is necessary for the benefit of the
owner. (Usually in the case of “landlocked” property.)

A

Necessity Easements

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24
Q

Proceeds from the sale of separate

property are _______

A

separate cash.

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25
Q

Do out of state attorneys have to have a license

A

YES

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26
Q

items necessary for an individual to carry out his or her trade or profession. May be moved before the lend of the lease.

A

Trade fixtures

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27
Q

Whats the most someone can receive from a settlement winning for attorney’s fees, interest, and court costs,

A

$50,000 period

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28
Q

A resident broker can collect a commission from a Texas broker form of a check or a gift

A

True

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29
Q

The primary determinants of real estate values

A

Supply and demand

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30
Q

Either the landlord or tenant may agree to terminate the lease “at will.”

A

An estate at will

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31
Q

Continuous use of the land over some time without the owner’s permission may establish the right to use the land.

A

Prescription - Continuous use of the land over some time without the owner’s permission may establish the right to use the land.

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32
Q

Ad valorem taxes

A

Based according to value. The greater the value of the property, the higher the taxes

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33
Q

foreclosure sale by a trustee under a deed of trust - Do they have to have a license

A

No

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34
Q

The _______ agency relationship is the most limited of all the agency relationships

A

The special agency

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35
Q

Example of a general agent

A

One common example of a general agent in real estate is the property manager.

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36
Q

Payments from the trust account for claims based on judgments against a single license or
certificate holder may not exceed a total of ______ until the license or certificate holder has ______ the trust account for all amounts paid.

A

$100, 000, reimbursed

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37
Q

What does it take for the servient estate to be released from an easement? against it.

A

Written agreement

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38
Q

this type of transaction occurs, the broker

becomes the Intermediary.

A

a set of rules that make it possible to bring client buyers and sellers together while at
the same time representing their best interests. When this type of transaction occurs, the broker
becomes the Intermediary.

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39
Q

How long does a person whose license has been revoked have to wait to reapply

A

2 years on the anniversary date

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40
Q

The government, under its power of eminent domain, takes an easement.
The government will take an easement for itself, the utilities, or the railroads.

A

Condemnation - The government, under its power of eminent domain, takes an easement.
The government will take an easement for itself, the utilities, or the railroads.

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41
Q

Homestead protection is automatic when a home is purchased

A

True

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42
Q

Joint tenancy has been referred to as a

A

“poor man’s will.”

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43
Q

When an individual owns real property, he is said to have a ______ _______ in that property

A

Freehold estate

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44
Q

An _________ that is allowed to remain can eventually acquire the right to be there.)

A

Encroachment

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45
Q

Body of law based on common sense

A

Common law

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46
Q

the owner can develop (improve) the surface and use the resources extracted fromor near the surface, including stone, gravel, water, and limestone

A

Surface rights

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47
Q

“three day right of rescission.”

A

Being able to cancel transaction within 3 days. Brokers are exempt from this. Section 1101.055 expressly exempts
real estate brokerage transactions from this right of cancellation.

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48
Q

How long do you hae to file. complaint with TREC

A

4th anniversary (years)

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49
Q

is owned equally by both spouses and cannot be conveyed or sold without the signature of both parties.

A

community property.

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50
Q

Continuous use of the land over some time without the owner’s permission may establish the right to use the land.

A

Prescription Easements

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51
Q

May also be called limitation.

A

Prescription

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52
Q

water washes away the land from one property and deposits it on another.

A

• Avulsion

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53
Q

water recedes, and dry land appears.

A

Reliction

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54
Q

As a ______, an individual has the right to represent a principal in a particular type of transaction or business.

A

general agent

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55
Q

the addition to the land by the action of water. Soil or rock is built up by the water.

A

Accretion

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56
Q

The _______ agent has full authority to conduct business on behalf of the client.

A

The universal agent has full authority to conduct business on behalf of the client.

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57
Q

How do you divide up a tenancy in common portion of land. 3 children owning 300 acres example. How much does each own?

A

partition. 1/3 of the whole.

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58
Q 
The law prevents the forced sale of the homestead for payment of all debts, with five exceptions:
PT
ML
MML
A
EL
A

The law prevents the forced sale of the homestead for payment of all debts, with five exceptions:

  1. Non-payment of property taxes
  2. Non-payment of a mortgage lien
  3. Non-payment of mechanic’s and materialman’s lien
  4. Non-payment of property owner association fees or dues
  5. Non-payment of a home equity loan
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59
Q

Can Attorneys licensed in Texas represent clients in real estate transactions without a license.

A

Yes

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60
Q

A neighbor’s fence that crosses a boundary or tree limbs extending over a boundary are examples of

A

Encroachment

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61
Q

a lease that automatically renews itself for like periods. Examples would be a month-to-month or a week-to-week lease.

A

periodic estate

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62
Q

Rights that give an owner the right to use water from a lake, ocean, or sea on or next to the property.

A

Littoral rights

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63
Q

If an easement was a personally held right to come onto a property for a specific reason (sometimes called a license)nan the person dies. What would happen to the easement agreement.

A

Death will terminate the easement

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64
Q

Condominiums are established under laws referred to as

A

horizontal property acts.

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65
Q

the unauthorized intrusion of another’sproperty onto an adjoining property.

A

An encroachment

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66
Q

Can an unlicensed assistant make telemarketing calls

A

No

67
Q

The ______ agent can sign documents and bind (obligate) the client in the same manner the client would do in
person. It is the equivalent of having unlimited power of attorney and is very rare in real estate.

A

universal

agent

68
Q

appropriative rights as it relates to water

A

The
first landowner to claim riparian rights has the exclusive right to take all the water for specific beneficial uses. Subsequent owners of nearby properties cannot claim water rights.

69
Q

can be accomplished by the change in the direction of a river or a stream.

A

• Avulsion

70
Q

How many years do you have to be licensed to be a broker

A

four years

71
Q

the tenant’s rent is based, in whole or part, on the business receipts.

A

Percentage lease

72
Q

A business entity that receives compensation on behalf of a license holder must be licensed as
a broker under this chapter. T or F

A

True

73
Q

Any lease with a

specific starting and ending date.

A

The tenancy for years or estate for years

74
Q

When a lease expires . tenant remains. no longer has any right to remain on the property

A

tenancy at sufferance

75
Q

A custom-measured and installed fireplace screen would be considered ________.

A

Permanent Adaptation

76
Q

Providing a professional opinion of the value of real property

A

Appraisal

77
Q

Rights that give an owner the right to use water from a river or stream on or next to the property.

A

Riparian rights

78
Q

The seller, in granting property to a buyer, reserves an easement in the deed. “B”
sold lot “A” and reserved the right to cross over “A” in the deed.

A

Reservation Easements

79
Q

Any profit or income from separate property is considered _______. Ex: Rental income

A

community property.

80
Q

Subsurface rights

A

rights to oil, gas, and other minerals.

81
Q

refers to the fact that no two parcels of land are the same.

A

Nonhomogeneity

82
Q

property coupled with the right to its exclusive use for a specified
number of days per year,

A

A timeshare features

83
Q

Littoral rights

A

Give an owner the right to use water from a lake, ocean, or sea on or next to the property.

84
Q

an be created with a simple written or oral agreement between to people

A

A partnership

85
Q

if a broker operates under an assumed name, he/she must register the name with the

A

Texas Real Estate Commission

86
Q

a claim against property to secure payment for a debt.

A

A lien is a claim against property to secure payment for a debt.

87
Q

A testamentary trust

A

is a trust created by a will and is effective upon the decedent’s death.

88
Q

Nonresident brokers must work through resident brokers may collect a commission from a Texas broker. True or False

A

True

89
Q

Permanent Adaptation to the property refers to how the item fits the property. .

A

refers to how the item fits the property.

90
Q

Surface, subsurface, and air rights are said to be ______.

a. Indivisible
b. Severable
c. Divisible
d. Unitary

A

a. Indivisible

91
Q

Refers to the fact that outside forces cannot destroy land.

A

Indestructibility or durability

92
Q 
What are the four things that must be present to create a joint tenancy
T
T
I
P
A
  1. Time – Owners must acquire their interest at the same time.
  2. Title – They must acquire their interest from the same source (will, contract, deed, etc.).
  3. Interest – They must hold equal shares.
  4. Possession – Possession of the property must be shared equally.
93
Q

Fixtures that may be moved before the end of the lease

A

Trade fixtures

94
Q

Easements- In selling lot “B,” “A” did not explicitly grant the easement in writing but
in word or action that access to property “B” would be by an easement

A

Implied grant Easements

95
Q

Property acquired before marriage is ______ as is inherited property and property purchased with inherited
funds.

A

separate property

96
Q

No documents or claim needs to be registered by the owner to get Homestead protection

A

True

97
Q

The easement is specifically given by one party to the other. “A” sold lot “B” and
granted the easement in the deed.

A

Grant Easements

98
Q

A claim, lien, charge, or liability attached to and binding real property is an encumbrance.

A

encumbrance

99
Q

Easements can be terminated by:

If the two properties become one, the easement terminates.

A

Merger

100
Q

Overseeing the needs of the parties to a real estate transaction and seeing it to its completion

A

Brokerage

101
Q

This process of attaching personal property so that it becomes real property is called

A

Annexation

102
Q

If a broker wishes to terminate a licensed sales agent’s sponsorship, he/she must do what two things?

A
  1. notify the agent in
    writing and
  2. return the agent’s license to TREC immediately.
103
Q

Property owned by a married person that is not community property is called ________.

A

separate property. Property

104
Q

Syndicate.

A

When two or more parties join together to create and operate a real estate investment,

105
Q 
4 REQUIREMENTS OF A VALID LEASE 
C
L
A
L
A

REQUIREMENTS OF A VALID LEASE
• Competent Parties (lessor and lessee)
• Let and take agreement
• Adequate consideration (rent)
• Legal purposeDescription of the property (street address is sufficient)

106
Q

If an easement is no longer necessary, and the dominant estate shows by its
actions its intention to _______ the easement, it can be terminated.

A

Abandonment

107
Q

The_______ partner’s liability is _______ to the amount he or she invested in the partnership. The ______ partner has no involvement in the day-to-day operation of the business. The ______ partners are the investors in the venture.

A

Limited Partners

108
Q

How much does each licensee contribute to the the TREC Recovery Fund

A

$10

109
Q

A _______ is required to determine if an encroachment exists.

A

Survey

110
Q

If a property is listed by one firm
and later sold by another, the sale
is a

A

cooperative sale.

111
Q

Body of laws and enacted by federal and state legislative bodies

A

Statutory law

112
Q

Attorneys licensed in other states, but practicing real estate in Texas must be licensed. True or False

A

True

113
Q

First is to prevent the forced sale of the home by creditors,second to provide a surviving spouse with shelter.

A

Homestead

114
Q

Tenancy in common - What happens to their estate upon their death.

A

Their interest will pass to their heirs or beneficiaries named in a will upon death

115
Q

TREC can assess administrative penalties of up to ______ per day against offending licensed and unlicensed individuals.

A

$5000

116
Q

How long does a license holder have to notify TREC if they are convicted/pleas no contest to a felony of fraud

A

30 days

117
Q

What is the purpose of TRELA.

A

To protect the public against unscrupulous brokers and sales agents. S

118
Q

A claim, lien, charge, or liability attached to and binding real property is an

A

encumbrance.

119
Q

limitations on our ownership rights,

A

Encumbrances

120
Q

Does the salespeople representing a new home builder have to have a license

A

No

121
Q

TREC Recovery Trust Accounts will pay ________ is the maximum per transaction, and ________ is the maximum on behalf of any one
license holder

A

$50,000, $100,000

122
Q

the right of survivorship of the tenants is equally divided

immediately among the tenants.

A

JOINT TENANCY

123
Q

Tenants in common own real estate in undivided shares

A

Tenants in common own real estate in undivided shares

124
Q

The _______ is an employment contract between a seller or landlord and the broker

A

listing agreement

125
Q

Gives the seller the right to list the property with multiple competing brokers and to
sell the property personally, without liability for payment of a commission.

A

open listing

126
Q

the seller agrees to list the property with only one broker during the
listing term, with the provision that the seller can sell the property independently, without paying a commission.

A

In an exclusive agency listing,

127
Q

which grants an exclusive right to sell the property during the listing term because they receive a commission even if the owner sells the property.

A

exclusive right to sell

128
Q

the seller establishes a minimum net amount for his/her proceeds at closing.

A

Under a net listing

129
Q

The exclusive right to sell and exclusive agency listing agreements usually call for the broker to place
the listing into

A

multiple listing services (MLS)

130
Q

Comparative Market Analysis (CMA).

A

MLS data to show a seller the market value of the property.

131
Q

Puffing

A

is marketing that uses adjectives and opinions rather than details or facts. For example, “the most beautiful landscaping.

132
Q

Megan’s Law created in response to her

death.

A

requiring all states to release information to the public about known
convicted sex offenders, when necessary, to protect the public’s safety.

133
Q

While it is a broker’s responsibility

to discover and disclose that there may be problems on a property, that responsibility is limited to

A

areas accessible for visual inspection

134
Q

insurance that can protect a broker if the seller misrepresents property condition, the broker is unaware of the misrepresentation, and could not have detected it by visual inspection.

A

Errors & Omissions insurance

135
Q

A ______ is an agreement between two or more parties to do something or to refrain from
doing something. Individuals enter into contracts every day without any thought.

A

contract

136
Q

In this type of contract, both parties are obligated to perform

A

bilateral contract

137
Q

A unilateral contract is said to lack ______

A

mutuality.

138
Q

An _______ is an agreement between a buyer and seller or landlord and tenant.

A

Option

139
Q

This temporary lease is for use when the buyer

occupies the property for no more than 90 days prior to closing.

A

Buyer’s Temporary Residential Lease

140
Q

This temporary lease is for use when the seller occupies the property for no more than 90 days after closing

A

Seller’s Temporary Residential Lease

141
Q

_______ consent or _______ agreement is often referred to as a
“meeting of the minds.”

A

Mutual consent or mutual agreement

142
Q

This type of contract is defined
as a contract that is binding on the parties, with one or more of the parties having contractual duties
that have not yet been performed.

A

Executory contract

143
Q

When is the

contract fully executed.

A

When the sale is closed

144
Q

If the buyer defaults, what can the seller choose to accept as damages?

A

the buyer’s earnest money

145
Q

If the seller defaults, what can the buyer choose to accept as damages?

A

Refund of earnest money

Monetary damages

146
Q

An assignment of a contract transfers all of the rights related to the contract to another party known as the _______.

A

Assignee.

147
Q

A _______ occurs when a new contract is substituted for an existing one.

A

A novation

148
Q

If Guy’s mother decides to become a co-borrower and co-owner of the home, it will
make the most sense for the parties to have a contract _________.
a. Amendment
b. Termination
c. Assignment
d. Novation

A

d. Novation

149
Q

________ is a “deposit” paid upfront by the buyer to show that he or she is serious in intent.

A

Earnest money

150
Q

An ________ gives the buyer the unrestricted right to terminate the contract within a specific period.

A

option

151
Q

The owner’s title policy can be paid for by either the buyer or seller. In most cases, the title policy is paid for by the ______.

A

Seller

152
Q

Who usually issues the title policy?

A

The title company that is holding the earnest money.

153
Q

Who usually holds the earnest money?

A

The title company

154
Q

What time of contract/agreement can only be enforced against the seller

A

Unilateral contract

155
Q

An ______ gives one the right to

use or pass over another’s property for a specific purpose.

A

easement

156
Q

An _______ belongs to a person or corporation and does not belong to the land.The most common example of this is for utility

A

easement in gross

157
Q

An ___________ is a right for the benefit of a piece of land. It runs with the land
and passes to new owners when the land is sold. The most common use
for ingress and egress (to enter and exit property).

A

easement appurtenant

158
Q

If you have two parcels of land with a road across one parcel. Which one is dominant.

A

the owner who crosses over the other

owner’s land is dominant.

159
Q

A property with the road is ______ to the dominant estate.

A

servient

160
Q

A servient estate is _______ when regards to easements

A

encumbered

161
Q

a contract that cannot be enforced because a flaw in the contract or some other issue

A

Unenforceable contract

162
Q

Unilateral contract lacks what

A

lacks mutuality

163
Q

a contract created by behavior

A

Implied contract

164
Q

contract created by acceptance of an offer

A

Express contract

Principles of Real Estate I (1 decks)

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