Real Estate Test 2

Front 1

CHAPTER 7&8

Back 1

CHAPTER 7&8

Front 2

A contract that is EITHER written or oral. Both parties to the contract DECLARE THEIR INTENTIONS
Ex.) lease agreement for under 12 months

Back 2

Expressed Contract

Front 3

A contract that is neither written nor oral but put forth by actions.

Ex.) ordering a meal at a restaurant, you are implying that you will pay before leaving

Back 3

Implied Contract

Front 4

2 types of expressed contracts

Back 4

Bilateral and Unilateral

Front 5

I will do this and you will do that
Promise exchanged for a promise

ex.) standard real estate sales contract

Back 5

Bilateral

Front 6

I will do this if you will do that
Promise exchanged for a performance.

Ex.) salesperson bonus is offered by a broker

Back 6

Unilateral

Front 7

A promise not to act

Back 7

Forebearance

Front 8

Courts cannot enforce a contract that requires the law be broken

Back 8

Lawful objective

Front 9

A check written to the seller that is tendered with an offer to buy

Back 9

Earnest Money

Front 10

Although negotiable, the buyer's title policy is usually paid by the?

Back 10

Seller

Front 11

Although negotiable, a survey required by either the buyer or lender is usually paid by the?

Back 11

Seller

Front 12

Although negotiable, an appraisal of the property required by the lender is usually paid by the?

Back 12

Buyer

Front 13

Special provisions section of the contract that means the time limits in the contract should be strictly observed or the contract is voidable is?

Back 13

Time is of the Essence

Front 14

Entirely new offer

Back 14

Counteroffer

Front 15

1. Partial performance
2. Unilateral rescission: "i wont do this if you wont do that"
3. Sue for Specific performance
4. Sue for Money damages
5. Liquidated damages: earnest money is forfeited to the seller
6. Mutual rescission- both parties are innocent and cancel the contract

Back 15

Breach of Contract- 6 Alternatives

Front 16

A contract for the sale of real property whereby the seller does not convey title to the buyer until all of the sale price is paid

Back 16

Installment Contract
(Contract for Deed or Contract for Sale)

Front 17

1. Many borrowers lose their property to the seller after missing only one payment
2. The seller may not have all the rights promised to the buyer at the end of the payment period.
3. The contract is not recorded at the county clerk's office; no constructive notice is given to the public of ownership

Back 17

Problems with Installment Contracts

Front 18

1. Warranty deed given to buyer
2. Fee simple title given to buyer
3. Possession
4. Uses mortgage and deed of trust
5. Foreclosure process
6. Sale is recorded
7. Title policy or abstract is provided
8. time consuming repossession

Back 18

Conventional Sale

Front 19

1. No Warranty Deed
2. Equitable Title
3. Possession
4. Uses Installment Contract
5. No Foreclosure process
6. Not Recorded
7. No title policy or abstract
8. Speedy Repossession

Back 19

Installment Sale

Front 20

The contracted right of a tenant to purchase the property occupied for a specified price and within a specified amount of time

Back 20

Lease Purchase Option

Front 21

Texas law requires that a seller provide a _________ notice to a buyer if the property was built prior to 1978.

Back 21

Lead Paint

Front 22

Texas law requires that a seller provide a _________ notice to a buyer in a contract for vacant land if the property currently has a special property tax exemption.

Back 22

Tax Rollback

Front 23

Texas law requires that a seller provide a ________ notice to a buyer of vacant land.

Back 23

Pipeline

Front 24

The type of listing whereby the listing broker is paid a commission even if the owner finds a buyer and sells the property is?

Back 24

Exclusive right to sell

Front 25

1. Exclusive right to sell
2. Exclusive Agency
3. Open Listing
4. Net Listing

Back 25

4 Types of Listings

Front 26

The type of listing whereby two or more agencies/brokers have a listing on the same property is?

Back 26

Open Listing

Front 27

The type of listing whereby the broker is not paid a commission in the even the owner finds a buyer is an?

Back 27

Exclusive Agency

Front 28

The type of listing whereby a listing broker is paid the excess amount over an agreed price stated in the listing is?

Back 28

Net Listing

Front 29

LISTING = KEY TO WEALTH

Back 29

LISTING = KEY TO WEALTH

Front 30

Primary purpose of the Texas Real Estate Licensing Act is to?

Back 30

PROTECT THE CONSUMER

Front 31

1. Licensed Attorney
2. A public official during the course of their official duties
3. Auctioneer
4. FSBO- Property Owners (for sale by owner)
5. Apartment Managers/Leasing Agents on Site
6. Model Home Sales People
7. Cemetery Lot Salespersons

Back 31

Exemption from Licensing

Front 32

Saleperson-18 years old and RESIDENT

Broker- at least 4 years as a salesperson.

Back 32

License Eligibility

Front 33

Only Realtors are allowed access to the Multiple Listing System (MLS) SOLD DATA. The general public may access the MLS active listing data.

Back 33

Only Realtors are allowed access to the Multiple Listing System (MLS) SOLD DATA. The general public may access the MLS active listing data.

Front 34

A registered trademark owned by the National Association of Realtors for use by its members is?

Back 34

Realtor

Front 35

The making of statements a reasonable person would recognize as non-factual is called?

Back 35

Puffing

Front 36

The mixing of client's funds with an agent's personal funds is called?

Back 36

Commingling

Front 37

1. Universal Agency
2. General Agency
3. Special Agency

Back 37

3 Types of Agencies

Front 38

When broad powers are given to an agent to bind (OBLIGATE) the principal in matters of all kinds.

Ex.) Guardian or power of Attorney

Back 38

Universal Agency

Front 39

When power is given to an agen to BIND the principle in a specific matter.

Ex.) relationship between a broker and his/her salesperson

Back 39

General Agency

Front 40

When limited power is given to an agent to perform specific acts.

Ex.) Relationship between owner and listing broker

Back 40

Special Agency

Front 41

created when a broker accepts a listing

Back 41

Fiduciary Relationship

Front 42

1. Ground Absorbtion (leach field system)

2. Evaporating System

Back 42

2 Types of Septic systems

Front 43

1. Inform the buyer as to any possible defects
2. Allows the buyer to further examine the property
3. allows the buyer to make an informed decision
4. Protect the broker from non-disclosure lawsuit

Back 43

Seller's Disclosure Notice

Front 44

Texas law requires the broker to maintain a _____ for earnest money received by a potential buyer.

Back 44

Trust Account

Front 45

A term for anyone employed by or contracted with a principle broker is?

Back 45

Sales Associate
(not a Licensing Category)

Front 46

the discriminatory practice by a real estate agent of maneuvering a client from a minority group away from considering a home in a white neighborhood.

Back 46

Steering

Front 47

1.Salesperson
2. Broker

Back 47

2 Levels of Licensing

Front 48

is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party.

Back 48

Right of first refusal (ROFR or RFR) is