Principles of Real Estate Flashcards
(164 cards)
1
Q
How often should agents pay their portion of the IRS taxes to avoid a lump sum on April 15th
A
Quarterly
2
Q
________ taxesCreate the highest priority lien against real property.
A
Property
3
Q
Refers to how the item was attached to the property.
A
Method of attachment
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
5
Q
Are considered personal property and may be harvested by the owner of the crop.
A
Emblements
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
7
Q
refers to the fact that land cannot be moved.
A
Immobility
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
9
Q
the soil added to the land by the accretion.
A
Alluvion
10
Q
What happens if the Recovery Fund goes above $3.5 Million
A
The remainder is placed in the state general revenue fund
11
Q
Permission to perform a particular act upon the land or property of another. A
A
A license
12
Q
When tenants add _______ to leased property, the _______ generally become the property of the landlord.
A
Fixtures
13
Q
The _______ partner is responsible for the day-to-day operations of the business and has full liability.
A
General Partner
14
Q
Syndicate
A
When two or more parties join together to create and operate a real estate investment,
15
Q
a trust created during the lifetime of the trustor.
A
An inter vivos trust
16
Q
This process of attaching personal property so that it becomes real property is called
A
Annexation
17
Q
Rights that extend above the surface without limitation.
A
Air rights
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
19
Q
Lease wherethe landlord pays all the expenses of the property.
A
A gross lease
20
Q
Tenant pays rent plus a portion of the property’s expenses, such as taxes, maintenance, or utilities
A
Net lease
21
Q
Personal property that has become attached to the land in such a way as to become real property
A
Fixture
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.
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
24
Q
Proceeds from the sale of separate
property are _______
A
separate cash.
25
Do out of state attorneys have to have a license
YES
26
items necessary for an individual to carry out his or her trade or profession. May be moved before the lend of the lease.
Trade fixtures
27
Whats the most someone can receive from a settlement winning for attorney’s fees, interest, and court costs,
$50,000 period
28
A resident broker can collect a commission from a Texas broker form of a check or a gift
True
29
The primary determinants of real estate values
Supply and demand
30
Either the landlord or tenant may agree to terminate the lease “at will.”
An estate at will
31
Continuous use of the land over some time without the owner’s permission may establish the right to use the land.
Prescription - Continuous use of the land over some time without the owner’s permission may establish the right to use the land.
32
Ad valorem taxes
Based according to value. The greater the value of the property, the higher the taxes
33
foreclosure sale by a trustee under a deed of trust - Do they have to have a license
No
34
The _______ agency relationship is the most limited of all the agency relationships
The special agency
35
Example of a general agent
One common example of a general agent in real estate is the property manager.
36
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.
$100, 000, reimbursed
37
What does it take for the servient estate to be released from an easement? against it.
Written agreement
38
this type of transaction occurs, the broker
| becomes the Intermediary.
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.
39
How long does a person whose license has been revoked have to wait to reapply
2 years on the anniversary date
40
The government, under its power of eminent domain, takes an easement.
The government will take an easement for itself, the utilities, or the railroads.
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.
41
Homestead protection is automatic when a home is purchased
True
42
Joint tenancy has been referred to as a
“poor man’s will.”
43
When an individual owns real property, he is said to have a ______ _______ in that property
Freehold estate
44
An _________ that is allowed to remain can eventually acquire the right to be there.)
Encroachment
45
Body of law based on common sense
Common law
46
the owner can develop (improve) the surface and use the resources extracted fromor near the surface, including stone, gravel, water, and limestone
Surface rights
47
“three day right of rescission.”
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.
48
How long do you hae to file. complaint with TREC
4th anniversary (years)
49
is owned equally by both spouses and cannot be conveyed or sold without the signature of both parties.
community property.
50
Continuous use of the land over some time without the owner’s permission may establish the right to use the land.
Prescription Easements
51
May also be called limitation.
Prescription
52
water washes away the land from one property and deposits it on another.
• Avulsion
53
water recedes, and dry land appears.
Reliction
54
As a ______, an individual has the right to represent a principal in a particular type of transaction or business.
general agent
55
the addition to the land by the action of water. Soil or rock is built up by the water.
Accretion
56
The _______ agent has full authority to conduct business on behalf of the client.
The universal agent has full authority to conduct business on behalf of the client.
57
How do you divide up a tenancy in common portion of land. 3 children owning 300 acres example. How much does each own?
partition. 1/3 of the whole.
58
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The law prevents the forced sale of the homestead for payment of all debts, with five exceptions:
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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
59
Can Attorneys licensed in Texas represent clients in real estate transactions without a license.
Yes
60
A neighbor’s fence that crosses a boundary or tree limbs extending over a boundary are examples of
Encroachment
61
a lease that automatically renews itself for like periods. Examples would be a month-to-month or a week-to-week lease.
periodic estate
62
Rights that give an owner the right to use water from a lake, ocean, or sea on or next to the property.
Littoral rights
63
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.
Death will terminate the easement
64
Condominiums are established under laws referred to as
horizontal property acts.
65
the unauthorized intrusion of another’sproperty onto an adjoining property.
An encroachment
66
Can an unlicensed assistant make telemarketing calls
No
67
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.
universal
| agent
68
appropriative rights as it relates to water
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
can be accomplished by the change in the direction of a river or a stream.
• Avulsion
70
How many years do you have to be licensed to be a broker
four years
71
the tenant’s rent is based, in whole or part, on the business receipts.
Percentage lease
72
A business entity that receives compensation on behalf of a license holder must be licensed as
a broker under this chapter. T or F
True
73
Any lease with a
| specific starting and ending date.
The tenancy for years or estate for years
74
When a lease expires . tenant remains. no longer has any right to remain on the property
tenancy at sufferance
75
A custom-measured and installed fireplace screen would be considered ________.
Permanent Adaptation
76
Providing a professional opinion of the value of real property
Appraisal
77
Rights that give an owner the right to use water from a river or stream on or next to the property.
Riparian rights
78
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.
Reservation Easements
79
Any profit or income from separate property is considered _______. Ex: Rental income
community property.
80
Subsurface rights
rights to oil, gas, and other minerals.
81
refers to the fact that no two parcels of land are the same.
Nonhomogeneity
82
property coupled with the right to its exclusive use for a specified
number of days per year,
A timeshare features
83
Littoral rights
Give an owner the right to use water from a lake, ocean, or sea on or next to the property.
84
an be created with a simple written or oral agreement between to people
A partnership
85
if a broker operates under an assumed name, he/she must register the name with the
Texas Real Estate Commission
86
a claim against property to secure payment for a debt.
A lien is a claim against property to secure payment for a debt.
87
A testamentary trust
is a trust created by a will and is effective upon the decedent’s death.
88
Nonresident brokers must work through resident brokers may collect a commission from a Texas broker. True or False
True
89
Permanent Adaptation to the property refers to how the item fits the property. .
refers to how the item fits the property.
90
Surface, subsurface, and air rights are said to be ______.
a. Indivisible
b. Severable
c. Divisible
d. Unitary
a. Indivisible
91
Refers to the fact that outside forces cannot destroy land.
Indestructibility or durability
92
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What are the four things that must be present to create a joint tenancy
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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
Fixtures that may be moved before the end of the lease
Trade fixtures
94
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
Implied grant Easements
95
Property acquired before marriage is ______ as is inherited property and property purchased with inherited
funds.
separate property
96
No documents or claim needs to be registered by the owner to get Homestead protection
True
97
The easement is specifically given by one party to the other. “A” sold lot “B” and
granted the easement in the deed.
Grant Easements
98
A claim, lien, charge, or liability attached to and binding real property is an encumbrance.
encumbrance
99
Easements can be terminated by:
| If the two properties become one, the easement terminates.
Merger
100
Overseeing the needs of the parties to a real estate transaction and seeing it to its completion
Brokerage
101
This process of attaching personal property so that it becomes real property is called
Annexation
102
If a broker wishes to terminate a licensed sales agent’s sponsorship, he/she must do what two things?
1. notify the agent in
writing and
2. return the agent’s license to TREC immediately.
103
Property owned by a married person that is not community property is called ________.
separate property. Property
104
Syndicate.
When two or more parties join together to create and operate a real estate investment,
105
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4 REQUIREMENTS OF A VALID LEASE
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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
If an easement is no longer necessary, and the dominant estate shows by its
actions its intention to _______ the easement, it can be terminated.
Abandonment
107
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.
Limited Partners
108
How much does each licensee contribute to the the TREC Recovery Fund
$10
109
A _______ is required to determine if an encroachment exists.
Survey
110
If a property is listed by one firm
and later sold by another, the sale
is a
cooperative sale.
111
Body of laws and enacted by federal and state legislative bodies
Statutory law
112
Attorneys licensed in other states, but practicing real estate in Texas must be licensed. True or False
True
113
First is to prevent the forced sale of the home by creditors, second to provide a surviving spouse with shelter.
Homestead
114
Tenancy in common - What happens to their estate upon their death.
Their interest will pass to their heirs or beneficiaries named in a will upon death
115
TREC can assess administrative penalties of up to ______ per day against offending licensed and unlicensed individuals.
$5000
116
How long does a license holder have to notify TREC if they are convicted/pleas no contest to a felony of fraud
30 days
117
What is the purpose of TRELA.
To protect the public against unscrupulous brokers and sales agents. S
118
A claim, lien, charge, or liability attached to and binding real property is an
encumbrance.
119
limitations on our ownership rights,
Encumbrances
120
Does the salespeople representing a new home builder have to have a license
No
121
TREC Recovery Trust Accounts will pay ________ is the maximum per transaction, and ________ is the maximum on behalf of any one
license holder
$50,000, $100,000
122
the right of survivorship of the tenants is equally divided
| immediately among the tenants.
JOINT TENANCY
123
Tenants in common own real estate in undivided shares
Tenants in common own real estate in undivided shares
124
The _______ is an employment contract between a seller or landlord and the broker
listing agreement
125
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.
open listing
126
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.
In an exclusive agency listing,
127
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.
exclusive right to sell
128
the seller establishes a minimum net amount for his/her proceeds at closing.
Under a net listing
129
The exclusive right to sell and exclusive agency listing agreements usually call for the broker to place
the listing into
multiple listing services (MLS)
130
Comparative Market Analysis (CMA).
MLS data to show a seller the market value of the property.
131
Puffing
is marketing that uses adjectives and opinions rather than details or facts. For example, “the most beautiful landscaping.
132
Megan’s Law created in response to her
| death.
requiring all states to release information to the public about known
convicted sex offenders, when necessary, to protect the public’s safety.
133
While it is a broker’s responsibility
| to discover and disclose that there may be problems on a property, that responsibility is limited to
areas accessible for visual inspection
134
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.
Errors & Omissions insurance
135
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.
contract
136
In this type of contract, both parties are obligated to perform
bilateral contract
137
A unilateral contract is said to lack ______
mutuality.
138
An _______ is an agreement between a buyer and seller or landlord and tenant.
Option
139
This temporary lease is for use when the buyer
| occupies the property for no more than 90 days prior to closing.
Buyer’s Temporary Residential Lease
140
This temporary lease is for use when the seller occupies the property for no more than 90 days after closing
Seller’s Temporary Residential Lease
141
_______ consent or _______ agreement is often referred to as a
“meeting of the minds.”
Mutual consent or mutual agreement
142
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.
Executory contract
143
When is the
| contract fully executed.
When the sale is closed
144
If the buyer defaults, what can the seller choose to accept as damages?
the buyer’s earnest money
145
If the seller defaults, what can the buyer choose to accept as damages?
Refund of earnest money
| Monetary damages
146
An assignment of a contract transfers all of the rights related to the contract to another party known as the _______.
Assignee.
147
A _______ occurs when a new contract is substituted for an existing one.
A novation
148
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
d. Novation
149
________ is a “deposit” paid upfront by the buyer to show that he or she is serious in intent.
Earnest money
150
An ________ gives the buyer the unrestricted right to terminate the contract within a specific period.
option
151
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 ______.
Seller
152
Who usually issues the title policy?
The title company that is holding the earnest money.
153
Who usually holds the earnest money?
The title company
154
What time of contract/agreement can only be enforced against the seller
Unilateral contract
155
An ______ gives one the right to
| use or pass over another’s property for a specific purpose.
easement
156
An _______ belongs to a person or corporation and does not belong to the land.The most common example of this is for utility
easement in gross
157
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).
easement appurtenant
158
If you have two parcels of land with a road across one parcel. Which one is dominant.
the owner who crosses over the other
| owner’s land is dominant.
159
A property with the road is ______ to the dominant estate.
servient
160
A servient estate is _______ when regards to easements
encumbered
161
a contract that cannot be enforced because a flaw in the contract or some other issue
Unenforceable contract
162
Unilateral contract lacks what
lacks mutuality
163
a contract created by behavior
Implied contract
164
contract created by acceptance of an offer
Express contract
