Texas Principles of Real Estate I

Question 1

Mortgage brokers

Answer 1

Mortgage brokers are paid a fee to bring borrowers and lenders together.

Question 2

Realtists

Answer 2

Members of the National Association of Real Estate Brokers

Question 3

Knowledge needed in real estate

Answer 3

local market, license laws, closing procedures

Question 4

Skills needed in real estate

Answer 4

time management, market analysis, selling, writing

Question 5

ARELLO

Answer 5

The Association of Real Estate License Law Officials

is an international association of real estate regulators, who promotes consistent policies and standards for license law and enforcement of license law.

Question 6

Texas Real Estate Commission (TREC)

Answer 6

Responsible for administering The Real Estate License Act (TRELA). TREC has the power to create and enforce new rules to help interpret or define TRELA, but cannot amend the law.

Question 7

Price mechanism

Answer 7

quantified value of an exchange

Question 8

Market equilibrium

Answer 8

price, cost, value theoretically the same

Question 9

Supply

Answer 9

dwelling units (residential), square feet (commercial/industrial), and acres (agricultural)

Question 10

Supply and demand are influenced by:

Answer 10

Residential: quality of life/neighborhood, amenities, price/facility convenience
Retail: trade area, sales, competition, site access, visibility, growth patterns
Office: efficiency, costs of occupancy, functionality
Industrial: functionality, labor pool availability, regulatory compliance, supplies, distribution channels

Question 11

Base employment

Answer 11

the number of persons employed in the businesses that represent the economic foundation of the area

Question 12

Total Employment

Answer 12

includes base, secondary, and support industries. Total employment creates a demand for a labor force.

Question 13

Supply-demand indicators

Answer 13

price, vacancy, and absorption.

Question 14

Members of the commission IMPORTANT

Answer 14

6 members from real estate industry and 3 members from the general public
The governor appoints them
If a person or their spouse is registered, certified, or licensed by an occupational regulatory agency in the industry, they are deemed ineligible.

One term is 6 calendar years

Question 15

Real Estate Recovery Fund

Answer 15

The Texas Real Estate License Act (TRELA) establishes a Real Estate Recovery Fund for the protection of the public against harmful actions by licensees. The TREC maintains and administers the fund.

Question 16

license fee

Answer 16

is charged in order to obtain a balance in the trust fund of $1.7 million

Question 17

Claim for payment from trust account

Answer 17

Upon order of the court, an aggrieved party may proceed to collect from the licensee. If the licensee cannot pay the full amount, the party may apply to the court for an order. The order directs the court to pay the balance due from the real estate recovery fund.

Payments from the trust account for claims arising out of a single transaction may not exceed a total of $50,000, regardless of the number of claimants
Payments from the trust account for claims based on judgments against a single licensee may not exceed a total of $100,000

Question 18

A Texas real estate license is also not required for:

Answer 18

The sale, lease, or transfer of a mineral or mining interest in real property, the sale, lease, or transfer of a cemetery lot, the lease or management of a hotel or motel, or the sale of real property under a power of sale conferred by a deed of trust or other contract lien.

Question 19

Education Standards Advisory Committee

Answer 19

The committee consists of 12 members appointed by the commission. Members of the committee serve staggered two-year terms. The terms of the committee members expire as follows:

1. On December 31 of each even-numbered year, the terms of four license holder members and two education members expire.
2. On December 31 of each odd-numbered year, the terms of three license holder members and two education members expire and the public member expires.

Question 20

Asset managers

Answer 20

Oversee groups of properties, or portfolios. Their role is to achieve the investment objectives of their clients, as opposed to managing day-to-day operations.

Question 21

Unit of residential demand

Answer 21

This is the household

Question 22

Unit of commercial (retail and office) and industrial real estate demand

Answer 22

This is the square footage