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;
68 Cards in this Set
- Front
- Back
|
What 4 things does Senate Bill 489 do? |
1. Allows a broker to act as an intermediary. 2. Requires a licensee to provide the IABS (disclosure of agency) at first substantive dialogue. 3. Requires a licensee to disclose who they represent at first contact. (oral or written) 4. Limits the liability on a licensee for acts of misrepresentation if they are unaware of misrepresentation or concealment of material fact |
|
|
Define a subagent |
A licensee who represents the seller while being sponsored by a broker other than the listing broker. (he is working with a buyer customer rather than a buyer client) |
|
|
If a buyer does not have the sellers disclosure when the contract is executed, what is the case? |
The buy can terminate the contract within 7 days of receiving the sellers disclosure. |
|
|
How many days does a licensee have to enter a new listing into the MLS? |
5 days if a client does not want to list the property in MLS the license holder may not enter it |
|
|
How long is the protection period in the listing agreement? |
It is negotiable |
|
|
Can a licensee advertise another broker's listing? |
Yes, with the permission of that broker |
|
|
License holders must use standard Contract forms when applicable. What are the exceptions of standard contract forms for use by licensees? |
Contract prepared by attorneys, or by government agencies, or by property owners or their lawyers. |
|
|
Who writes the promulgated contract forms? Who promulgates them? |
The Broker Lawyer Committee writes them TREC promulgates them. |
|
|
How many days is "Time is of the Essence" Where can it be found? |
Not a set amount of days; as soon as possible and they dates on contract are strongly enforced Sales Contract (termination/option paragraph) Back-Up Addendum Short Sale addendum Addendum for Sales of Other Property by Buyer Third Party Financing Addendum |
|
|
How many days is the Sellers (TREC 15-3) & Buyers (TREC 16-3) Temporary Lease Addendum good for? |
90 days or less |
|
|
Do all offers and backup offers have to be presented to a seller? In what particular order? In the case of a backup offer to become effective the what must happen to the previous contract and what must the backup buyer do? |
Yes, no particular order previous contract must be terminated and backup buyer must: -pay any option fee -name any option period -deposite any earnest money w/ escrow agent |
|
|
Who is responsible for filling in the effective date on the contract? |
The broker |
|
|
TREC has promulgated contract forms for what kind of transactions? |
Most residential properties including Farm & Ranch |
|
|
TREC does not have promulgated contract forms for what kind of transactions? |
Commercial transactions and for the sale of Co- Ops |
|
|
A clause in a contract requiring a condition to be met is a ________. If it cannot be met, the buyer is generally entitled to.. |
Contingency clause a refund of his earnest money |
|
|
How long does an individual have from the effective date of the contract or date of incident to file a complaint with TREC? the complaint must be___ &____? |
4 years; after that TREC will no longer investigate a complaint written & signed |
|
|
How long does a party have to sue for non performance of a contract? |
4 years |
|
|
if a broker accepts an earnest money deposit, and acts as an escrow agent, the money must be deposit in a trust account by...? how long must a broker keep record of this account? |
By the end of the second business day after the execution of the contract 4 years |
|
|
What does the Statute of Frauds require? |
That all contracts related to the transfer of any interest in real estate must be in writing to be enforceable. Also applies to compensation/employment agents (Listing and buyer representation agreements) Verbal agreements make you a volunteer in the eyes of the courts |
|
|
What is the only exemption to the Statute of Frauds? |
A lease for less than 1 year |
|
|
If lender required repairs exceed X% of the sales price, the buyer can terminate the contract. |
5 % |
|
|
Our contracts require the parties to agree to mediation for dispute resolution. What is the difference between a mediator and an arbitrator? |
Both listened to both sides of the story and tries to help the parties come to an agreement, arbitrator hears both sides and then tells the parties what to do. |
|
|
How many days does the title company have to provide a title commitment after they receive the sales contract? |
20 days from the time they receive the sales contract |
|
|
TREC defines a reasonable amount of time as... |
20 days |
|
|
Define Community Property |
a statutory estate in Texas. Property acquired after marriage, including property acquired with labor. It is jointly owned by the couple. Income on separate property is also community property. (an increase in value of separate property is not community property 50,000 when married and value rises to 100,000) however community property rights accrue after efforts are used to increase value |
|
|
An urban homestead is at max _____ acres? A rural homestead is at max _____ acres? on property greater than the max size, who has the right to designate which land will be considered the homestead? one homestead per... |
Urban is 10 acres. Rural is 200 acres. the owner person or family |
|
|
What rule makes it not permitted for title companies to provide food and beverages for a picnic or party for a single firm or free MCE to licensees? (unless they charge the market rate for those classes) they can provide ____ and have an annual party for____? |
Rule P 53 tokens (pens and pads) all the firms who might use their service *nothing that a business person would consider an expense of doing business, or a tax deduction |
|
|
When should mold be removed? What is the removal of mold called? who must be licensed in this event and what is the exception? |
If it is visible (testing is no necessary.) Removal is called remediation (testing if not required after removal.) both mold assessors and mold remediates must be licensed- exemption: property owners can assess and remediate their won properties without a license |
|
|
Who is allowed to be an Intermediary? What does an intermediary do? |
only a broker broker who represents both the seller and buyer with written permission of both parties including how the broker will be paid * it is appropriate for a broker to appoint associates to work with eh parties to the transaction |
|
|
Statutory intermediary takes precedence over... |
common law dual agency |
|
|
a broker who works alone or who only sponsors 1 license holder must be an intermediary without... |
appointments: an appointed associate may give advise/opinions to one party in the transaction. A broker may never give advice/opinions to either party, only disclose facts about the property |
|
|
When a buyer client wants to purchase an in-house listing, what is used |
The Intermediary Relationship Notice- the secondary notice of Intermediary |
|
|
exemptions from IABS are: Are IABS forms required |
-open houses -meeting with party represented by another license holder -residential lease for year or less and no sale is being considered IABS forms are voluntary- any other form can be used but it must contain the IABS infomation using the same wording as on the TREC form in at lease 10 point font |
|
|
the license act requires a broke to provide a minimum level of service to a client including: |
-inform the party of material info (including the receipt of an offer by the broker) -answer the party's questions and present any offer to or from the party -refrain from telling another broker to negotiate directly with the broker's client |
|
|
a broker may refer clients to a Residential Service Company with whom he has a professional connection as long as the broker... |
discloses the connection using the required TREC Form RSC-1, Disclosure of Relationship with Residential Service Company |
|
|
What must be give to a buyer BEFORE HE SIGNS AN OFFER? Why? The accuracy of this document is the responsibility of who? in what events is this document no required? |
The Seller's Disclosure of Property Conditions; to make the offer binding on the buyer the seller -foreclosure sale -tax sale -sale by guardian -executor -administrator -sale by a builder of a new home that has not been lived in |
|
|
When and how must the follow be take place? Disclosure of Representation Disclosure of Agency |
Disclosure of Representation: When: First Contact How: Orally or Written Disclosure of Agency: When:First Substantive Dialog How: Writing (IABS form) |
|
|
an option fee must be paid along with any other considerations, true of false? Who pays the option fee to who? how long do they have to deliver the option fee? |
False, option fees must be paid INDEPENDENTLY from any other considerations Buyer pays the option fee to the seller and has 3 days to pay |
|
|
the last party to sign a contract is ________? the broker is responsible for filling in ______? this will also be ______ of the option period if there is one. |
the party accepting the final change the effective date the effective date |
|
|
division of commission is at the discretion of ...? |
the broker |
|
|
R.E. inspectors must use promulgated forms for... |
residential inspections |
|
|
a commission mediator wil have a least how many hours of training in what area? |
40 hours of formal training in ADR (alternative dispute resolution) procedures |
|
|
What addendum allows a buyer to obtain a resale certificate on the property |
HOA addendum ****read TREC 1-4 Family Resale Contract |
|
|
a disclosure to buyers is required by ______ that there may be a charge for turning on or connecting water and sewer services if the property is located in a ____ of a ______ |
Texas Water Code Certificated Service Area Utility Service Provider |
|
|
all TREC contracts state: "The injured party can sue for specific performance, seek such other relief as may be permitted by law, or both." in the event of... |
in the event of breach of contract, where one party is in default |
|
|
a buyer who receives a Title Commitment or survey and is unhappy with the information, how long does he have to address the concerns with the seller? Where is this found in the contract? |
the previously negotiated number of days (in the contract) Paragraph 6D 1-4 |
|
|
a spouse can waive community property rights by... What property can remain separate property |
written agreement -property acquired prior to marriage -property acquired during marriage by inheritance )devise or descent) -gift |
|
|
a homestead is a statutory estate in Texas. it is automatically protected from forced sale by all creditors and this cannot be waived. Exceptions: |
mortgages property taxes (ad valorem taxes) mechanics and material men's liens (M&M liens) homeowner association |
|
|
when a homestead is foreclosed on for unpaid property taxes, the owner has ____ to redeem the property? when a homestead is foreclosed on for unpaid homeowner association fees, the owner has ___ to redeem the property? |
2 years 6 months |
|
|
the homestead exemption (a tax benefit) should not be confused with the homestead protection. homeowners must apply for the exemption and must occupy the home by when? you can back file for ____ if you failed to claim this exemption? |
occupy the home on January 1st to qualify 2 years |
|
|
if you hire a mold remediates, he must give you a ____ no later than ___ after work is complete. What does this verify? |
Certificate of Mold Remediation; 10 days the mold has been removed and certifies with a reasonable certainty that the underlying cause of the mold has been corrected. |
|
|
Receiving a Certificate of Mold Remediation is an advantage for ______ because...? |
the homeowner it prevents an insurer from making an underwriting decision on the property based n previous mold damage or claims. |
|
|
on selling a home, the law requires you provide the buyer with copies of all Certificated of Mold Remediation you have received for the property within the past ___ all mold assessing and removal, certificate of mold remediation is regarding |
5 years Texas Department of Insurance Regulations Regarding mold |
|
|
What is Texas Veteran's Loan Program and who is eligible and what is the benefit? |
a housing assistance program for Texas veterans. Texans with a US military background (must be honorable discharged) may be eligible to have their mortgage loans sold to the Texas Veteran's Land Board instead of to the secondary market. The benefit to the veteran borrower is a rate of interest up to 1/2% lower than prevailing market rates. |
|
|
Texas Veterans Land Board (TVLB) will loan up to____ for ____ years at a very competitive rate of interest to finance the purchase of ____? Veteran buyer must obtain____ and pay____? minimum tract size is ____? at closing the veteran is deeded the property and signs a not payable to ___, which is secured by ____? |
$100,000; 30 years; unimproved property a survey; 5% down payment 1 acre TVLB; a deed of trust |
|
|
Disability is a requirement for the Texas Veteran's Loan program and the Texas Veterans Land Board loan, true or false? these programs and loans are not available to any dishonorably discharged veterans, true or false |
false, disability is not a requirement true, all honorably discharged texas veterans are eligible |
|
|
New Texas Legislation regulating homeowner association: HOAs will be permitted to regulate, but not ban... they can ban____? |
-the flag of the US, State of Texas, or any branch of the US armed forces -roof solar panels -religious symbols -political signs privacy fences |
|
|
Deceptive Trade Practices Act (DTPA) allows for the recovery of____, an individual has ___ years from the discovery of the deception to file a complaint. Does not apply to what properties? Example of license holder in violation of DTPA: |
triple damages; 2 years commercial properties over $500,000 express misrepresentation of material fact |
|
|
a broker who is not a registered property-tax consultant may not perform property-tax consulting services for single-family residences, true or false? |
false, they can still legally perform this service for free or for a fee. |
|
|
What is required to become an Appraisal Review Board Arbitrator? In this role, what is the maximum fee for service? |
30 hour class $500 |
|
|
What is "Notice Regarding Coastal Area Property" and when must it be provided? |
a notice telling buyers that owners may gain or lose portions of the land due to the actions of water; a seller of coastal property abutting tidally influenced water must provide it |
|
|
a seller who sells property located seaward of the Gulf Intracoastal Waterway must disclose... What happens if a structure is erected seaward of that line or becomes seaward as a result of natural causes? |
that structures must not be erected seaward of the vegetation line. the structure would be subject to a lawsuit by the State of Texas for removal |
|
|
What is the purpose of a Municipal Utility District M.U.D. what is it also called? if a property is located in MUD, it must be.. Texas legislation allows buyers to ____ if the bonded indebtedness is not disclosed prior to closing? The seller must ___ and the buyer must ___ the MUD disclosure |
to provide flood control or drainage, water and sewers to residents of the district; water supply corporation disclosed along with the bonded indebtedness, tax rate, standby fees for the MUD back out of an offer deliver; sign |
|
|
intestate succession refers to what two circumstances? the courts will appoint an _____ to settle the estate. property will be distributed according to ____. Heirs to any real property will have ____. Property goes to ____. _____ have priority under the laws of descent. title transfers to heirs at___ |
how property passes when a person dies without a will (intestate) or with a will that makes only a partial distribution of their property. administrator; Laws of Descent and Distribution; Title by Descent; kindred; Spouse and Children; probate |
|
|
what is testate and who distributes the property? heirs are said to have ____,same as intestate succession, title transfers at ____ |
if a party dies with a will, the executor appointed in the will distributes the property; Title by Devise; probate |
|
|
What is probate? it must begin within___ of ___ a _____ transfers title to real property at a _____. that transfer of title is final after ____ |
the judicial process to prove or confirm a will, or to settle the estate of someone who dies intestate. 4 years of death district court judge; a probate hearing; 30 days |
|
|
security deposits earn interest at a rate... landlords must account for security deposits ____ after tenant leave |
contractually agreed upon by the parties (tenant may sign an agreement waiving a right to interest on the security deposit) 30 days |
|
|
if a tenant installs a burglar alarm in a rented property he must... landlords must provide new locks on rental property no later than____ after a new occupant takes possession of a leasehold premise What must be operational at the time the tenant is granted possession, What lock is required and what is not required? |
notify the landlord and supply instructions and passwords to that landlord 7 days smoke detectors, keyless deadbolts, double cylinder locks |
