• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

Card Range To Study



Play button


Play button




Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

247 Cards in this Set

  • Front
  • Back

In order for a tenant to claim relief for constructive eviction

the landlord must have intentionally withheld required repairs or maintenance

A lost was purchased as an investment for $10500 and sold a year later at a loss of 20%. If the owner paid a 10% commission, what was the owners net loss on the sale?


G borrowed $15000 to buy a business. The interest rate was 11%. If G paid all the interest and the amount borrowed with a single payment at the end of 16 months, what is the amount of this payment?


To be eligible for a real estate license, an individual MUST

satisfy the Commission as to the individuals integrity

A single woman dies intestate. In regards to her surviving heirs, her property will

be distributed according to the law of descent and distribution

To renew a real estate license, a business entity must provide proof that the entity maintains errors and omissions insurance with a minimum annual limit of ____________ for each occurrence if the designated agent owns less than _________ percent of the business entity, & the business must designate of its managing officers as its agent

$1 million , 10%

John and Bob are seeking recovery from the Texas Real Estate Recover Fund based on a transaction involving a real estate licensee. How much are they entitled to recover?

John and Bob may recover a maximum of $50,000 between the two of them

If an individual dies intestate and without heirs, the real and personal property of that individual is subject to ___________


An individual is presumed to have died intestate if, on or before the __________ anniversary of the date of the individuals death, the individuals will has not been recorded or probated in the county where the individuals property is located


An individual is presumed to have died leaving no heirs, if for the _________ year period preceding the courts determination, a lawful claim to the individual's property has not been asserted and a lawful act of ownership of the individuals property has not been exercised


Under the federal Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, a debtor must be domiciled in Texas for at least how many years before claiming a homestead exemption under Texas Law?

2 years

John owns land along a NON-NAVIGABLE stream. Under Texas Riparian rights law

John's ownership of land extends to the exact center of the stream along his property

John owns land along a NAVIGABLE stream. Under Texas Riparian rights law

John's ownership of land extends to the mean vegetation line of the stream

Can a community property survivorship agreement be revoked?

yes, as provided by the terms of the agreement and if a method of revocation is not provided, the agreement may be revoked by a written instrument signed by one spouse and delivered to the other

Under Texas Law, unless the condominium declaration provides otherwise, a condominium may not be terminated unless by agreement of _____ % of the votes in the association and each holder of a deed of trust or vendors lien on a unit


In Texas, to be valid, a deed to real estate must have what?

be signed by grantors

be in writing

be delivered to the grantee by the grantor or by the grantors agent ( it does not have to be recorded to be valid)

The Texas Statute of Frauds states that each of the following promised or agreement, except ________, is not enforceable unless the promise or agreement, or a memorandum of it, is in writing

a lease of real estate for a term of one year or longer

Subrogation is

the substitution of one party for another in regard to pursuing a legal right, interest or obligation

The Homeowners Protection Act does not apply to ___________ loans

FHA insured

An agent who represents only one party in a given transaction is a

Single Agent

A listing agent who is a dual agent

owes fiduciary duties to both the buyer and to the seller

Stephen makes payments of $1275 per month, including 4% interest on a fixed rate fully amortized 15 year loan? What was the initial amount of his loan?

From Chart: 7.397 is monthly payment per $1000


How many square feet are there in an acre?


A negative amortized loan is

loan by which the installment payments do not cover all of the interest due - the unpaid part of the interest due being tacked onto the principal, thereby causing the principal to grow as each month goes by

Until all contingencies in a real estate purchase agreement are met, the agreement is


In an adjustable rate mortgage, the index is

the benchmark rate of interest that is adjusted periodically

A graduated lease is also referred to as a

step - up lease

Loss in value due to proximity to undesirable influences such as airport flight patterns is referred to as

economic obsolescence

Ronald entered into a contract to sell his condo to Bob. Just before closing, Ronald breaches the agreement and refuses to complete the transaction. Bob decides he doesn't want to force Ronald to go through with the deal - he just wants to tear up the contract and get all of his money back. What Bob wants is called


The function of the __________is to regularly review and revise curriculum standards, course content requirements and instructor certification requirements for core and MCE courses

Texas Education Standards Advisory Committee

The Texas Education Standards Advisory Committee consists of ________ members


Adam is a doctor who lives next door to John, who is a TX RE broker. One of Adam's patients, Joyce, tells Adam that she would like to purchase a home in Adam's neighborhood. Adam, expecting something of value for the referral, tells John about Joyce. Adam would be required to have a real estate license unless the valuable consideration he expected to receive was

a gift of merchandise having a retail value of $50

Th Texas Real Estate Recovery Fund will pay out a maximum of how much arising from a single transaction?


Jose is a TX RE Broker who has just completed the sale of Betty's Condo to Kelly. Neither Betty or Kelly performed any act during the transaction that would required a real estate license. With whom may Jose share his commission

Jose may share his commission with either Betty or Kelly or both

A person from who a real property interest is acquired by an entity through eminent domain for a public use, or that person's heirs, successor, or assigns, is entitled to repurchase the property under which conditions?

1) The public use for which the prop was acquired is canceled before the prop is used for that public use. 2) no actual progress made toward the public used b/t the date of acquisition and the 10th anniversary, 3) the property becomes unnecessary for the public use for which the prop was acquired before the 10th anniversary of the date of acquisition

A ________ has the same real and personal property rights as a US citizen


For 7 yrs Joe parked his familys 2nd car in the NW corner of his neighbors yard w/o the neighbors approval. Joe & his wife then divorced, & there was no need to park a second car there. About 1 yr after the divorce, Joe sold his property to Bob, whose wife immed. began parking there and has been doing so for the last 5 yrs. What is true under TX Law?

Bob and his wife to not have a prescriptive easement to park one of their cars in the NW corner of their neighbors yard

John and Martha, who are husband and wife, live in a condo, which is their homestead. Under Texas Law, ...

Both John and Martha must sign to convey the condo

Under Texas Property Law when does the tax year begin?

Jan 1

A property tax lien takes priority over funeral expenses of a decedent made against the estate of the decedents. True or False?


Which causes have a 4 yr statute of limitations?

Specific performance of a contract for the conveyance of real property, fraud, breach of fiduciary duty

Under Texas Law, a home equity line of credit on a homestead must satisfy what conditions?

each debit or advance is at least $4k, no fee may be charged or collected in connection with any debit or advance, and repayments must be made in regular periodic installments, not more often than every 14 days and not less often than monthly, beginning not later than 2 months from the home equity line of credit is established

John dies intestate, survived by a wife and 2 children. Upon his death, John owned an apartment building as his separate property. How would this be distributed?

Johns wife is entitled to a life estate in one third of the apt building, with the remainder descending to his children

What is true about Groundwater in Texas?

it is subject to riparian rights law and it is real property.

A _______ is an agent for a particular act or transaction


Things affixed to the land are considered

Real property

What are examples of police powers?

Zoning codes, building codes, subdivision regulations

What supreme court case held that private racially based restrictive covenants are invalid under the 14th amendment?

Shelley vs Kraemer

Margaret is purchasing a home with a purchase price of $280k and an appraised value of $275k. if the lender is willing to loan 80% of the lesser, how much will be Margarets down payment?


Which appraisal process obtains the market value of the subject property by adding the value of the land (unimproved) of the subject property to the depreciated value of the cost (if purchased at current prices) of the improvements on the subject property?

Replacement Cost Approach

A lease constitutes in part an executory contract betwenn landlord and the tenant. This contract aspect of a lease creates between landlord and the tenant is

Privity of Contract

Stephen purchased a home for $200k with 4% fixed rate, fully amortized 15 yr loan in the principal amt of $172,367. His payments are $1275/month. What is the amt of unpaid principal on this loan after the first months payment?


A church is permitted to relocate to an area zoned exclusively for residential purposes. This is an example of

Conditional Use

A buyers agent who is a dual agent

owes fiduciary duties to both the buyer and to the seller

The primary characteristic that distinguishes a freehold estate from a nonfreehold estate is


A common law legal concept developed by the courts to determine the proportioning of commissions among agents involved in a real estate transaction is referred to as

procuring cause

In Texas, the term "timeshare use" means

any arrangement under which the purchaser receives a right to occupy a timeshare property, but under which the purchaser does not receive an estate interest in the timeshare property

Under Texas Property Code, the amount of retainage funds required to be retained by the owner for benefit of lien mechanics claimants is

10% of the contract price of the work to the owner or 10% of the value of the work, measured by the proportion that the work done bears to the work to be done, using the contract price, or if there is no contract price, using the reasonable value of the completed work

Under Texas Law, which of the following has a 4 yr statute of limitations

Fraud, breach of fiduciary duty, specific performance

Which has a 2 yr statute of limitations?

Recovery from the Real Estate Recovery Trust Account

To record a deed, the deed must be in writing. True or False?


To record a deed, the grantors signature must be properly acknowledged or witnessed. True or False?


To record a deed executed after 2007 and acknowledged in Tx, the deed must be written in English or Spanish. True or False?


To record a deed, the deed must include the grantee's name. True or False?


After acquired interests are conveyed with a

Grant Deed

What are triggering Terms?

Amt of Down Payment

Amount of Any payment

# of payments to be made

(APR is not a triggering term)

In general, states with ample supplies of water have adopted water rights based on

Riparian Rights

The subject property and a comparable are homes that appear almost exactly the same except that the comparable has an inferior pool estimated to be worth $2k less than the subject pool, & the comparable has a superior landscaping estimated to be worth $1500 more than the subject. What adjustments should be made?

Adjust the comparable property value up by $500

When using the income approach to appraisal, which expenses are deducted to obtain net income?

Maintenance costs, reserves for replacements of building components, hazard insurance

(mortgage payments are not deducted)

A small office building generates gross monthly rentals of $3400. It also takes in $225/month for parking fees. The fair market value of the property is $935,000. What is the monthly gross rent multiplier for this property?


When the three appraisal approaches give different valuations, an appraiser will arrive at a final estimate by the use of


When a principal intentionally, or by want of ordinary care, causes a 3rd person to believe another to be his agent who is not actually employed by the principal, _______ is created.

Ostensible Agency

A good faith estimate of all fees and costs related to closing a loan on a federally insured home must be provided to a potential borrower within how many days after submission of a mortgage loan application?

3 days

Emily sells her house, giving a deed that warrants that she owns the property, has the right to convey it, and that the property was not encumbered during the period of time that she owned the house. Emily gave what type of deed?

Special Warranty Deed

Determining what is a fixture and what is not is important when

property taxes are calculated, real estate is mortgaged, a tenant attaches an object to a rented building, and hazard insurance in purchased

Are emblements classified as real property?


Are air rights classified as real property?


Which land description method identifies a parcel of land by specifying its shape and boundaries?

metes and bounds

a township is

six miles square

The NW 1/4 of the NW 1/4 of the NW 1/4 of a section contains how many acres?


What is the system under which individuals are given the right to own land known as?

Allodial System

A tenant at sufferance is

a legal tenant

A chattel is

an item of personal property

A tenant in common may NOT

claim a portion of the property for his own use

A tenant in common may

convey his interest by will

use his share of the property as collateral for a mortgage loan

sell his share without the agreement of other tenants

New joint tenants may be added without forming a new joint tenancy. True or False?


Joint tenants are entitled to the unities of time, title, interest, and possession. True or False?


Survivorship exists among joint tenants. True or False?


A husband and wife may hold title as joint tenants. True or False


Community property laws in Tx are derived from legal concepts that have their origin in

Spanish Law

Does Dower or Curtesy exist in community property states?


The "relation back doctrine" in Tx applies when

the grantor delivers title into escrow

Tx law recognizes which 2 basic deeds?

No previous conveyance, and covenant against encumbrances

The phrase "the grantees heirs and assigns forever" indicates the conveyance of a

fee simple estate

The most important date on a deed in Tx is the date that the deed is


Quitclaim deeds are often used to

remove a cloud from the title and convey the grantors interest with out imposing any future obligations to defend the title upon the grantor

Title acquired as the result of inheritance from a person who dies intestate is known as

title by descent and title by intestate succession

The process of increasing land due to the gradual deposition of waterborne soil is known as


Instruments are recorded in the public records in what order?

chronological order, as received for recordation

The name of the borrower would be filed alphabetically in the

grantor index

Should a title insurance company elect to fight a claim in court, the legal expenses incurred will be

assumed by the title insurance company without affecting the policy coverage

What is true of a quiet title?

it is a judicial proceeding

quiets those without a genuine interest in the property

can be used to clear up a disputed title

(it does NOT remove all claims to title other than the owners)

A unilateral contract is enforceable against

the offeror

a contract binding on one party but not the other is


a person who has not reached the age of majority is also known as

a minor and an infant

as a rule, a contract between an adult and a minor is NOT

enforceable against the minor

A partnership may contract in the name of

its general partners and the partnership

In Dallas, Green sold his home to Blue, who took possession prior to settlement. After moving in but before settlement took place, the house was destroyed by a tornado. Who will bear the loss?


In view of current trends toward consumer protection, the watchwords for real estate salespersons and brokers might well be

caveat agent

A formal real estate sales contract, prepared at the outset by an agent using prepared forms, may be identified as

A purchase contract

an option contract

an offer and acceptance

Martin purchased real estate from Stevens under an agreement that called for him to pay for the property in installments and to receive a deed upon payment of the entire purchase price. This agreement could be identified as a

land contract,

contract for deed,

conditional sales contract,

installment contract

The option portion of a lease-option contract can be attached to the lease as

a purchase agreement

Lease-Option contracts tend to increase in

buyers market

An option to buy is an example of what kind of contract?

a unilateral contract

Under the terms of a right of first refusal, the tenant is given the right to

match an offer to purchase the property

When a deed of trust is recorded, bare title is conveyed by the

lender to the borrower

What clause is found in a deed of trust but not a mortgage?

a power of sale clause

If the trustee should die or be dissolved before the debt secured by a deed of trust is paid off, a successor may be named by the


comparing a deed of trust to a mortgage, which clause is unique to a deed of trust?

Power of Sale

The period of equitable redemption given to a borrower

begins when the loan goes into default and ends when the property is sold at foreclosure

The period of time set by state law, during which the mortgagor may redeem the property, is known as the period of

statutory redemption

a document that for all intents and purposes is a mortgage, although not labeled one, would most likely be

a deed as security

The borrower under a deed of trust is the


The lender under a deed of trust is the


The clause that gives the lender the right to call in the note if the mortgaged property is sold or otherwise conveyed by the borrower is known as the

due on sale clause or

the alienation clause

When a loan is assumed

the seller can be relieved of liability by novation, and the buyer should verify the loan balance with the lender

A loan wherein the principal is all repaid in one lump sum payment at the end of the loans life is known as

straight or term loan

To determine the amount of loan payments by using an amortization table, you must know what?

Frequency of payments

Interest Rates

Amount of loan

(you do not need to know LTV)

Kevin wants to know what portion of a 30 yr fully amortized loan would be paid off by the 4th year of the loans life. Kevin would consult

a loan balance table

What is exempt from TILA?

Commercial loans

personal property loans in excess of $25k

financing extended to corporations

(consumer loans to natural persons are not exempt)

A borrower does not have the right, under truth in lending laws, to rescind a credit transaction

for a consumer loan on personal property or for the acquisition of the borrowers principal dwelling

Generally, before a lender will approve a loan, the borrower must

have sufficient funds for the down payment & sign a statement if the borrower intends to occupy the property

When savings are removed from thrift institutions in large amounts for investment in Treasure Securities

disintermediation occurs

A real estate loan that calls for the lender to receive interest plus a percentage of the rental income from a property is

designed to protect the lender from inflation, and known as a participation loan

Mortgage companies

originate loans and service loans that they have sold on the secondary mortgage market

The secondary mortgage market provides

a means for investors to acquire real estate loans with origination and servicing facilities, and a way for a lender to sell real estate loans

The Federal National Mortgage Association is

A privately held corporation

active in buying FHA & VA mortgage loans

and known as Fannie Mae

(it is NOT managed by the federal government)

Under the terms of a shared appreciation mortgage

the loan is made at a below market interest rate & the lender received a portion of the property's appreciation

In seller financing, Carryback mortgages are usually salable to investors with a discount. True or False?


In seller financing, The seller of the property is the mortgagee under the mortgage. True or False?


Mortgage terms and interest rates are negotiable between the seller and buyer in seller financing. True or False?


In seller financing, if repayment is spread over 2 or more years, income taxes are calculated on the installment reporting method. True or False?


In wraparound mortgages, they are junior mortgages, subordinate to an existing first mortgage? True or False?


In wrap around mortgages, the interest rate on the buyer's note is usually the same as the market rate. True or False?


In wrap around mortgages, They are useless when the first mortgage carries a due on sale clause


in Wrap around mortgages, the yield to the seller (mortgagee) is usually greater than the interest rate specified on the note


A sale may be made and financed under a contract for deed

by combing wraparound financing with an existing mortgage loan on the property, provided the existing mortgage does not contain a due on sale clause

The assessment ratio of real property in a community may be

100% of its appraised value

Records of the assessed valuations of all properties within a jurisdiction are known as

assessment rolls

Which types of property are exempt from taxation?

Government owned utilities

property owned by charitable orgs


(residences owned by elderly are not exempt from taxation)

In 1979, the Tx Legislature voted to restrict increases in property tax rates by local taxing units. An increase, without public hearing, may not exceed the previous year by more than


When a real estate settlement is held in escrow

there is no closing meeting, and the closing process may be conducted by mail

One advantage of the escrow closing method is that it can eliminate

personal confrontation between buyer and seller

When a new loan is required, what is typical closing time between signing contract and settlement?

30-60 days

Prorations of items in real estate closing are made usually as of the date of

title transfer

a lease for a definite period of time, which terminates when that time has expired is an

estate for years

Which needs to be in writing and signed to be valid?

month to month lease

14 month lease

3 month lease

a 14 month lease

Bob Short and Bill Tall rent an apartment unit from owner Haf High. Bill dies during the lease term. The lease is still binding on?

Bob, Haf, and Bills Estate

a lease that calls for specified rental increases at predetermined intervals is

a step up lease

The clause in a lease that allows the landlord to pass along to the tenant certain increases in operating expenses is called

an escalator clause and a participation clause

Is a gross lease specifically designed to protect against rising operating costs?


Seller motivation is considered most in which appraisal approach?

Competitive Market Analysis

Which approach is most likely to provide only a rough estimate of the value of a rental property?

Gross Rent Multiplier

In appraising an historically significant residence built in the Victorian Era using the cost approach, an appraiser will probably appraise it on the basis of its

reproduction cost

The relationship between added cost and the value it returns is known as the principle of

diminishing marginal returns and the principle of contribution

The process of combining to or more parcels of land into one parcel is called


The term 'sales associate' may refer to

a licensed salesperson employed by a real estate broker and a licensed real estate broker employed by another licensed broker

an applicant for a Texas real estate brokerage license must complete

900 clock hours of real estate core and related courses

an applicant for a salesperson license in TX must complete how many clock hours in real estate core courses?


Before being granted an original sales person license, an applicant must

pass the exam

name the broker with whom the applicant will be associated

complete any state mandated continuing education requirements

Real estate brokers may operate their businesses as sole proprietorships under

their own name or a fictitious name

In Texas, the requirements that a real estate agent hold a real estate license is set by the


The composition of the Texas Real Estate Commission includes

six real estate brokers & 3 members of the public

In regard to net listings

most brokers avoid them

Multiple listing services are open

to any licensed broker

An open listing may be terminated by?

Sale of the property

abandonment of the property

destruction of the property by casualty

death of the owner

Which type of broker only accepts listing he thinks will sell quickly?

Discount Brokers

The statute of Frauds requires all agency agreements to be made in writing in order to be enforceable. True or False?


A real estate listing is an agency contract. True or False?


In a real estate listing, the property owner is the principal. True or False?


A real estate broker is the agent under a real estate listing. True or False


Which of the following is NOT true of a listing contract?

A. a corporation may be a principal

B. A natural person may be an agent

C. A sales associate may be an agent

D. Purchasers are third parties to the contract

C. a sales associate may be an agent

The Texas Real Estate License Act provides that a license may be revoked if without consent of all parties

the broker fails to make it clear for which party he is acting &

the broker receives compensation from more than one party

When an agent engages someone to look into a question raised by a purchaser, the agent

should make certain of the competency of the person so engaged

A church that operates housing for the elderly may restrict occupancy to members of the church if

the membership of the church is open to all persons

A victim of discrimination in housing may seek enforcement of the 1968 Fair Housing Act by

filing a complaint with HUD

filiing an action in federal court

filing a complaint with the US attorney general

(not by filing a complaint with the state real estate department)

A person seeking enforcement of the Civil Rights Act of 1866 may do so by filing

an action in federal court

The rules by which an owners association operates are known as


The purchaser of a condo unit

surrenders personal freedoms to community rule &

exchanges freedom of choice for freedom from responsibility

The owner of a unit in a planned unit development holds title to

the air above his unit

the land beneath his unit

fee simple title to his unit

(not a share of the common area)

In Texas, all timeshare properties must be registered with

The Texas Real Estate Commission

Zoning protects existing land users from

encroachment by undesirable uses

uncontrolled development

incompatible uses of land

(not competitive business establishments)

Zoning laws

tell a landowner the use to which she may put her land

Permission to use a building for a nonconforming use may be accomplished by

obtaining a zoning variance

The effect of a proposed development on a community is determined by the preparation of

an environmental impact statement

Mortgage balance reduction

is an out of pocket expense

The value of depreciation on an investment property is

directly proportional to the investors tax bracket

Negative leverage occurs when

borrowed funds cost more than they produce in benefits

For most people, when is the best time in life to undertake high risk investments

under age 25

The person borrowing money to purchase real estate is

the mortgagor

TREC may assess an administrative penalty against a licensee for each violation of the TRELA for an amount not to exceed


Required to be prepaid items by mortgagee are

Real Property Taxes

hazard insurance

property owner's assessment

Within what period from notice must an applicant request an appeal if the commission declines to license an applicant?

10 days

An action between 2 brokers may not be brought in a court in this state for recovery of a commission for the sale or purchase of real estate unless the promise agreement is

either written or oral

What rights does a life tenant have?




(cannot waste)

The fair housing act of 1968 does not prohibit the discrimination of


Discrimination prohibited in Apartments, houses, & residential lots

Inducing an owner to list a property by telling the owner that people of a certain national origin are moving into the neighborhood is called


An alienation clause makes a mortgage


The amount of purchase money mortgage appears in the closing statement as

sellers debit, buyers credit

When land is torn away by the violent action of a river it is called


What are examples of public land use controls?

building codes


environmental control laws

(deed restrictions are not an example)

What are rights of a mortgagor?


equity of redemption


(mortgagor is borrower so foreclosure is a right of mortgagee)

On Junes 16, a seller closes on the sale of her home. Annual taxes of $861 for the current year were paid in full by the seller prior to the sale. If these payments are prorated, which amount will be returned to the seller? (calculate using the month/day proration)


A salesperson associated with Metro Realty, obtained an offer for a property listed by Preferred RE, which she gave to Sam Slicker, listing agent with Preferred, for presentation to owner. Realizing the amt would probably not be accepted, Sam increased it by $3000 prior to presentation. Is there anything wrong with this scenario?

Sam's action was in violation of his fiduciary obligations and was completely improper

The buyer assumes a 9% loan with a balance of $74,000 mortgage at closing on July 12. The seller has already made the July 1 payments; the next payment of $638.69, including principal and interest for July will be due on August 1. What is the proper closing statement adjustment?

sellers debit of $222

John owns an apartment building in a large city. After discussing the matter with his legal advisers, he decides to alter the type of occupancy in the building from rental to condominium status. This procedure is known as


A lease providing for rental changes base on changes in the Consumer Price Index is which kind of lease?

Index Lease

Public land use controls in the form of zoning ordinances are an exercise of

police power of the governement

The listing broker should follow all of the sellers instructions except:

A show the property on Fridays

B extend the closing if necessary

C conceal the cracked foundation

D lease the property prior to closing

C Conceal the cracked foundation

True or False? In regards to condos, A declaration, articles of Association, and Association bylaws must be recorded in the public record in the county where the property is located.


True or False? In regards to condos, a parking garage with rental spaces can be converted to condo ownership.


True or False? In regards to condos, an apartment complex can be converted to condos only with a majority vote of the tenants


True or False? In regards to condos, a shopping center can be converted to condo ownership


An encroachment is which of the following?


party wall




In estimating the value of an office building containing 22,400 square ft, an appraiser established the annual rental income to be $400,000. The appraiser also learned that monthly expenses averaged $16,700. If the avg investor in this type of property was realizing a net return of 13.5% what would be the appraisers estimate of the value of the property?


A building now 21 years old has a total economic life of 40 years. If the replacement cost of the building is $1,200,000, what is the value?


What is the most likely result of the homogenous development of a residential subdivision

maximized values

The monthly payment necessary to fully amortize a 15 yr mortgage loan of $100,000 at 8.5% APR is $984.74. How much interest will the mortgagor pay over the 15 yr term?


A security device on a home rental must be rekeyed by the landlord within what time period after tenant turnover?

7 days

The Texas Education Standards Advisory Committee consists of 12 members, including

7 members who have been engaged in the practice of real estate for at least 5 years before the members appointment and who are actively engaged in that practice and one member who represents the public

A Texas real estate law license holder is not required to inquire about, disclose or release info relating to whether

a previous or current occupant of real property had, may have had, has, or may have AIDS, or an HIV infection

Margaret is a real estate salesperson who is engaged in selling an apartment building on behalf of a business entity in which she is party owner. Margaret is obliged to disclose in writing that she is a licensed real estate licensee in any contract of sale or in any other writing given before entering into any contract for the sale of the apartment building if she owns more than what % of the business?


Under Texas Law,, a real estate license holder must provide to a party to a real estate transaction at the time of the first substantive dialogue with the party the statutorily prescribed written notice about brokerage services unless

the license holder meets with a party who is represented by another license holder

Under Texas property Law, in general all taxable property is appraised at its market value as of Jan 1. True or False?


Under Texas property law, the appraised value of a residence homestead is determined by the highest and best use of the property. True or False


Under Texas law, if the property sold to satisfy a property tax lien was not the residence homestead of the owner, the statutory right of redemption must be exercised not later than the _________day after the date on which the purchasers deed is filed of record


The value at which a lender is willing to make a loan on a property refers to the propertys

loan value

A contract that is enforceable at the option of one party but not at the option of the other is


XYZ Bank has collected internal data demonstrating that res. loans made in areas of declining property values have a significantly greater default rate than loans secured by res. properties in other areas. XYZ has instituted a policy that it will no longer make loans secured by properties in areas that values have been declining for 3 consec. qtrs. XYZ's new policy is

illegal redlining

The economic life of a property

almost always ends before its physical life

An agency relationship is created by ______ in a situation where an unauthorized person performs actions as if he were the agent of a principal, the principal is aware of this conduct, and the agents actions & the principals actions (or inactions) cause a 3rd party to rely on the supposed agents actions believing that the actions are authorized by the principal


A contract provision providing that if any term of the agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect is

a severability clause

The income approach to appraisal estimates the value of an income producing property through which three step process?

Determine the net annual income

determine the appropriate cap rate

divide net income by the cap rate

Under an adjustable rate loan, the interest rate remains fixed during certain time intervals in referred to as the

adjustment periods

a deed is legally delivered to the grantee if

the deed is physically delivered to the grantee and the grantor intends that title immediately pass to the grantee

if $7500 is loaned for one 30 day month on the basis of simple interest, and the total amount of interest due at the end of that month is $25, what annual rate of interest was charged if interest is calculated based on a 360 day year?


A clear violation of an unambiguous condition in a private deed is likely to result in

reversion of the title to the grantor