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131 Cards in this Set
- Front
- Back
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True or False-a person who buys, sells, rents, or manages their own property has to have a license. |
False |
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Name the 2 kinds of Real Estate licenses. |
Brokers license & Salesperson's license |
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True/False-The holder of a Texas Real Estate License is allowed to do any type of transaction (i.e. commercial or residential) anywhere in the state. |
True |
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Most people who enter into the industry will specialize in what? |
Residential Real Estate (Because there are more transactions) |
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T/F-Apartment locators must be licensed. |
True |
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T/F -Farm Brokerage involves selling a home as well as a business. |
True-the agent must be knowledgable in the agriculture business of the property as well as the home. |
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T/F- The on site manager of an apartment complex must be licensed. |
False |
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Name two other careers in Real Estate besides Broker & Salesperson |
Appraiser, inspector, finance, education and full-time investor |
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Is an appraiser required to have a Real Estate license? |
No but they must have an appraisal license |
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What does an Appraiser do? |
Gathers information about a property and determines the value |
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What license must an inspector hold and what do they do? |
An inspector's license. Try inspect the property and make a report concerning the condition. |
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Who administers the TRELA & what does it stand for? |
Texas Real Estate Commission (TREC) administers the Texas Real Estate Licensing Act |
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How many members make up TREC? How are they appointed? How long is each term? |
9 members-6 brokers & 3 public Appointed by governor 6 years |
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Who administers the TRELA & what does it stand for? |
Texas Real Estate Commission (TREC) administers the Texas Real Estate Licensing Act |
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What must a person do to obtain a salesperson's license? |
1) complete 180 classroom hours or 12 semester hours consisting if 4 hrs principles of real estate, 2 hrs each of agency law, contract law, contract forms & addendums, and real estate finance. 2) apply & be approved by TREC 3) take exam |
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Who administers the TRELA & what does it stand for? |
Texas Real Estate Commission (TREC) administers the Texas Real Estate Licensing Act |
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How many members make up TREC? How are they appointed? How long is each term? |
9 members-6 brokers & 3 public Appointed by governor 6 years |
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What must a person do to obtain a salesperson's license? |
1) complete 180 classroom hours or 12 semester hours consisting if 4 hrs principles of real estate, 2 hrs each of agency law, contract law, contract forms & addendums, and real estate finance. 2) apply & be approved by TREC 3) take exam |
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What is required for a broker's license? |
1) must have been licensed as a salesperson for 4 of the previous 60 months 2) 60 semester hrs or 900 classroom hours 3) must accumulate 3600 points based on experience within the previous 5 years 4) pass exam |
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Commission members serve staggered 6-year terms with the terms of 3 members expiring ________ ______ (date) of each odd numbered year. |
January 31 |
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Committee members receive what amount per day that official duties are performed? |
$75 and reimbursement for expenses occurred |
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What committee is responsible for writing & revising TREC promulgated contracts & forms? |
Broker-lawyer committee |
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How many members are on the Broker-Lawyer Committee and who appoints them? |
13 members- 6 Texas Bar members (lawyers) appointed by the bar 6 Brokers appointed by TREC 1 Public appointed by governor |
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What terms do the Broker-Lawyer Committee members serve? |
6 years, staggered with 2 terms of 2 TREC appointees and 2 bar appointees expiring every 2 years and the public member expiring every 6 years |
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To be eligible to receive a license, a person must meet what 4 requirements? |
1-must be at least 18 years old 2-be a citizen or lawfully admitted alien 3-be a resident of this state 4-satisfy the commission as to the applicant's trustworthiness, honesty and integrity |
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What happens when the association of a salesperson and their broker terminates? |
The broker is to immediately return the salesperson's license to TREC. The license will be considered inactive. |
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How long does a broker have to notify the commission of a change of address? |
Up to 10 days |
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Where does the TREC reside? |
Austin |
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What are the (3) canons of professional ethics and conduct? |
Fidelity, integrity, competency |
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When may a person refer to himself as a "Realtor" |
After they have joined the National Association of Realtors |
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What is the MLS and who is responsible for it? |
Multiple listing service, allows members to share listings with other members and split the commission of a sale. Local board of Realtors is responsible |
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What is the name of the first set of Fair Housing Laws? |
Civil Rights Act of 1866 |
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What did the Civil rights law of 1866 protect against? |
Racial discrimination |
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The amended act, Civil Rights Act of 1968, included what? |
Race, color, national origin, religion, sex. handicap, and familial status were added in 1988 |
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What court case became the landmark case on discrimination this leading to the Civil Rights Act of 1968? |
Jones v. Alfred H Mayer Company. Jones claimed that he had not been allowed to purchase a home built by Alfred H Mayer Co because of his race. The Supreme Court upheld the Civil Rights Act of 1866 stating "all citizens have the same right in very territory and state to inherit, purchase, lease, sell, hold, and convey real and personal property" |
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What term is defined as having a physical or mental disability (including hearing, mobility, visual impairment, chronic mental illness, and AIDS) that substantially limits one or more major life activities? |
Handicapped |
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What allowances must a landlord make for a handicapped tenant? |
They must allow the person to make reasonable modifications to fit their needs at the expense of the tenant. The tenant must return the property to its original condition prior to vacating. |
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Name 3 of the 7 acts protected against by Title VIII of the Civil Acts Right of 1968. |
1. Refusing to rent or sell a house to anyone 2. Refusing to negotiate for housing with anyone 3. Making housing unavailable to anyone through advertising 4. Setting different terms or conditions for sale or rent of a dwelling. 5. Providing different housing services or facilities. 6. Falsely denying that housing is available for inspection, sale, or rent. 7. Steering & block busting |
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Define steering. |
The illegal practice of directing home seekers to particular neighborhoods based on the fair housing protected classes. |
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Define steering. |
The illegal practice of directing home seekers to particular neighborhoods based on the fair housing protected classes. |
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Define blockbusting. |
The illegal practice of real estate agents creating fear in a neighborhood in order to induce the owner of the houses to sell the properties at a loss to the agents. The agents then resell the homes to a member of a minority group for a large profit. |
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Name the 4 exemptions to the Fair Housing Laws |
1) the sale or leases of a single-family house owned by an individual who does not own more than 3 houses if a broker is not used, discriminatory advertising is not used, the owner does not occupy the house and has not sold another such house within the last 24 Months. 2) the rental of rooms in a 1 to 4 owner occupied building 3) a private club may restrict lodging to the member of the club 4) a religious organization may restrict the occupancy of religious owned dwelling to members of the organization. |
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If a seller asks an agent to discriminate, what must the agent do? |
Refuse the listing |
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Where must the Equal Housing Opportunity poster be displayed? |
In the broker's office |
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Who handles fair housing complaints? |
The Texas Workforce Commission Civil Rights Division (TWCVRD) or US Dept of Housing and Urban Development (HUD) |
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What are the penalties for a fair housing offence? |
First offense is a fine of $10k, second within 5 years is a fine of $25k. Any further violation within 7 years is $50k |
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When was the American with Disabilities Act (ADA) enacted and what type of property does it deal with? |
1992, commercial property. Properties built prior to 92' were grandfathered in but only required to make reasonable modifications. |
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Passed in 1976, this Act applies to a person or lending institution that makes loans on a regular basis and prohibits discrimination based on race, color, religion, national origin, sex, marital status, age, and receipt of income from public assistance. |
Equal Credit Opportunity Act |
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This Act required a financial institution who received deposits from a community to reinvest in the community by making loans in the community. |
Community Reinvestment Act |
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Everything from the center of the earth, thru the surface of the earth including the air above and earth into infinity. |
Land. |
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What are subsurface rights? |
Mineral rights |
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What are subsurface rights? |
Mineral rights |
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What 3 Types of rights come with land? |
Subsurface, surface, and air rights |
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Anything put on the land with the intent of improving the land are? |
Improvements |
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Anything put on the land with the intent of improving the land are? |
Improvements |
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Personal property is called? |
Chattel |
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Anything put on the land with the intent of improving the land are? |
Improvements |
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Personal property is called? |
Chattel |
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What is used to transfer ownership? |
A deed |
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A bill of sale is for what type of property? |
Personal |
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What type of plant is considered part of the land? What type is personal property? |
Perennial (lives from one year to the next) is part of the land. Annuals (called emblements) are personal property. |
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What type of plant is considered part of the land? What type is personal property? |
Perennial (lives from one year to the next) is part of the land. Annuals (called emblements) are personal property. |
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A right or privilege attached to the land that goes with the land when ownership of the land changes. |
Appurtenances. Ex-condo parking space, easements, and right-of-ways. |
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What type of plant is considered part of the land? What type is personal property? |
Perennial (lives from one year to the next) is part of the land. Annuals (called emblements) are personal property. |
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A right or privilege attached to the land that goes with the land when ownership of the land changes. |
Appurtenances. Ex-condo parking space, easements, and right-of-ways. |
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Personal property that has now become real estate because it was attached to the land. |
Fixture |
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What type of plant is considered part of the land? What type is personal property? |
Perennial (lives from one year to the next) is part of the land. Annuals (called emblements) are personal property. |
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A right or privilege attached to the land that goes with the land when ownership of the land changes. |
Appurtenances. Ex-condo parking space, easements, and right-of-ways. |
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Personal property that has now become real estate because it was attached to the land. |
Fixture |
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3 tests of a fixture |
1) Method of annexation 2) fitness or adaptation of property 3) intention of the parties |
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This is attached to a property under a commercial lease but does not become property of the landlord and must be removed before the lease is up. |
Trade fixture |
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A right allowed to an owner of land along a river or stream that allows him to use the water in the river or stream. |
Riparian rights |
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Refers to the right a landowner has to the water in the lake on which his property borders. |
Littoral rights |
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A landowner with a well is allowed to pump water from under his property and may pump unlimited amounts since the wells are not metered. This is called the |
Rule of capture |
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Open Beach Act the beach extends from |
The line of mean low tide to the line of mean vegetation |
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Open Beach Act the beach extends from |
The line of mean low tide to the line of mean vegetation |
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True or False-Property Lines can be changed by water movement ? |
True |
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Open Beach Act the beach extends from |
The line of mean low tide to the line of mean vegetation |
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True or False-Property Lines can be changed by water movement ? |
True |
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The process by which land is increased in size because of the natural deposits if rock and soil. |
Accretion |
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Open Beach Act the beach extends from |
The line of mean low tide to the line of mean vegetation |
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True or False-Property Lines can be changed by water movement ? |
True |
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The process by which land is increased in size because of the natural deposits if rock and soil. |
Accretion |
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Land that has been created by the accretion. |
Alluvion |
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Open Beach Act the beach extends from |
The line of mean low tide to the line of mean vegetation |
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True or False-Property Lines can be changed by water movement ? |
True |
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The process by which land is increased in size because of the natural deposits if rock and soil. |
Accretion |
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Land that has been created by the accretion. |
Alluvion |
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The dry land that results when water withdraws from the land |
Relocation |
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The dry land that results when water withdraws from the land |
Reliction |
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Define Avulsion |
The sudden removal of land by water |
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Define Avulsion |
The sudden removal of land by water |
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The gradual wearing away of land or rock by water |
Erosion |
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What are the physical characteristics of land? |
Immobility, indestructibility, and nonhomogeneity |
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Define immobility, indestructibility, and nonhomogeneity. |
Immobility means that land cannot be moved. The land is fixed in location. indestructible The use of the land can be destroyed but the land is still there. Nonhomogeneity means no two parcels of land are the same because they each occupy a different location on the earth. |
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This lien is superior to any other |
Property tax lien |
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Which liens are voluntary? Involuntary? |
Mortgage-voluntary, specific mechanics-involuntary property tax-involuntary judgement-involuntary |
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A title held by only one owner is an estate in |
severalty |
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In Texas if two or more people acquire a property and do not state how they will take ownership they will automatically become |
tenants in common, owned by one or more person. can be unequal shares but still have an undivided interest |
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In this type of ownership, owners do not have unequal shares in the property and they may not sell, give away, or leave the property to someone upon their death |
right of survivorship, last surviving owner takes ownership in severalty |
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Define the 4 Unities |
Unity of Time-each owner must acquire ownership at the same time Unity of Title-each owner must acquire title from the same source Unity of Interest-Owners must not have unequal interest Unity of Possession-all owners have the right to possess the property |
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The form of ownership used in states that do not have commonunity property |
Tenancy by the entirety , a 5th unity is added. Unity of person-surviving spouse becomes sole owner of property. |
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A wife has this right to her husbands estate upon death. |
Dower rights. Curtsey rights are a husband's rights to his wife's estates. |
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What is an REIT? |
Real Estate Interest Trust, a real estate trust formed when several people go together to invest in real estate. the investors are called beneficiaries, they buy shares (beneficial interest). Income tax is paid only at the beneficiaries level. |
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A written document that transfers real estate from one person to another. |
Deed |
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What is the Statue of Frauds? |
A law that requires some documents (deeds) to be in writing and signed to be enforceable. |
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The following are legal requirements for what? 1. the names of the seller and buyer 2. consideration 3. legal description 4. words of conveyance 5. be in writing and signed by the seller 6. be delivered by the seller and accepted by the buyer. |
Requirements for a deed to be vaild |
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This clause comes after the granting clause in a deed and always begins with "to have and to hold" |
Habendum clause, states the interest being conveyed. Fee simple, Life estate, or Defeasible fee. |
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What does a "subject to clause" do? |
reserves mineral rights, royalties, or easements for sellers use |
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Who must sign the deed? |
the grantor, seller |
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When does a deed transfer title to the property? |
After it has been delivered and accepted |
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The highest and best deed used in Texas |
General Warranty Deed, the grantor gives the grantee warranty to defects in the title. |
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Name & define the two covenants in a general warranty deed. |
Covenant of seisin, seller warrants that he has title to the property and right to convey that title. Covenant against encumbrances, seller states that there are no encumbered by anything other than those encumbrances listed in the deed. |
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Which deed offers only one warranty? |
Special warranty deed, commonly used in commercial transactions. Owner warrants that the owner has done nothing to encumber the title while the owner owned the property. |
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This deed has no warranties against encumbrances |
Bargain and sale deed, seller implies that he is the owner. Buyer has little to no recourse against the seller if the deed failed |
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What is a quitclaim deed? |
Seller doesn't imply that he owns the property. The words “remise, release, and quitclaim” are used in the deed. A quitclaim deed is most often used to clear a cloud on the title to the property. It could be used in a divorce. The spouce who is not receiving the property could sign a quitclaim deed giving their rights to the property to the other spouse.
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What are the 3 special purpose deeds? |
Gift deed, guardian deed, deed in trust and correction deed |
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All documents concerning real estate are recorded where? |
County Clerk's Office in the county in which the property is located |
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Title that is free from doubt as to who owns the property is called... |
marketable title, Texas does not recognize the term marketable title and marketable title is not insured under the Texas title insurance policies. Texas title insurance insures good and indefeasible title which is a title that cannot be defeated by a superior claim. |
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Define Abstract of Title |
condensed historical summary of all the documents that have been recorded on the property |
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An insurance policy offered by a title insurance company on the title of a property |
Title insurance, insures against losses arising title defects and against errors in the title examination |
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What is stated in a title commitment? |
the things the title company will and will not cover |
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A hearing that can be held when there are several clouds on a title. |
quiet title suit, the court hears all claims and determines their validity then removes them |
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What are the 2 types of title insurance? |
Mortgagees title policy (also lender's policy or loan policy) and owern's policy for the full amount of coverage stated on the property for as long as the owner owns it |
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Who sets the insurance premiums for title insurance and what is the premium based on? |
the Texas State Board of Insurance, based on the sale price of the property |
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Define Alienation |
transfer of ownership of the property |
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When does adverse possession occur? |
when one person takes possession of another person's land and holds possession long enough to take ownership of the property. the person receiving possession receives a fee simple title. |
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What is the difference in testate and intestate. |
Testate is when a person who dies has a will, intestate does not have a will |
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Which court determines if a will meets the requirements of the law? |
probate court |
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What is a holographic will and is it recognized by Texas? |
a will that is entirely handwritten and signed. It is recognized by the state of Texas, but may not stand up in court as well as a formal will. |
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Define codicil |
Revokes or adds to something in a will |
