Real Estate Exam: Principles of Real Estate 1
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73 terms
Terms | Definitions |
|---|---|
 The purpose of the TRELA is to... | protect the public against unscrupulous brokers and salespersons. |
| What is required to obtain a license in Texas? | be a resident of Texas at least 18 yrs of age at the time of application, be of good moral character, must show competency by passing the exam |
| If the licensee pays a commission to any unlicensed person, places a sign offering a property without the written permission of the owner, sells real estate by lottery this can happen.... | A license can be revoked or suspended by the TREC |
| How long does a consumer have to file a complaint with TREC against a licensee? | Four years |
| Who promulgates real estate contract forms in Texas? | The Broker Lawyer Committee |
| Which economic characteristic of land describes location preference from an economic point of view? | situs |
| What is often considered the most important test of a fixture? | Intentions of the parties |
| Which of the following is an example of an encroachment? | The neighbor's fence is on your land. |
| PETE: police power, eminent domain (gvt.takes private land for public use), Taxation, Escheat (gvt. Takes title of land where owner has no heirs or will) | The government's rights in land |
| A property description that is considered an informal reference is | a street address. |
| The highest priority lien against real property is | property tax |
| The type of ownership in which the person has the most rights is called | fee simple |
| Texas is a community property state. What is true about community property? | Property inherited by one spouse can remain separate property of that spouse. |
| When property has only one owner it is called | severalty |
| Property held by two or more owners with rights of survivorship is | joint tenancy |
| A lease with a specific starting and ending date is called | an estate for years or tenancy for years. |
| When the landlord pays all of the expenses of the property and then tenant pays only the rent, this is called | a gross lease |
| An easement can be terminated by | merger |
| Deeds require the signature of | the grantor |
| The deed that gives the buyer the greatest protection is called | the general warranty deed |
| Title to real property transfers when | the deed is delivered |
| When a grantor transfers a title but retains some rights it is called | reservation |
| A complete history of the title of a piece of property is called an | abstract |
| A handwritten will is called a | holographic will |
| Inheritance of real property without a will is called | laws of descent |
| Seller financing where the seller retains title until the final payment is called | contract for deed |
| The duties of the principal include | performance |
| When an agent has unlimited authority to act on behalf of the client it is called | universal authority |
| The duties of the agent include | loyalty |
| A contract that meets all of the requirements of the law is called | valid |
| A contract that can be canceled by one of the parties is called | voidable |
| Something of value given to one to induce another to enter into a contract is called | consideration |
| The law requiring real estate contracts to be in writing is called | The Statute of Frauds |
| Contracts that are signed and carried out are called | executed |
| When one of the parties of the contract dies, the contract is... | binding on the heirs if possible |
| If the parties of a contract agree to terminate the contract, it is called | mutual rescission |
| TREC promulgated forms are | mandatory for licensees |
| Where do individuals go to borrow money? | The Primary Market |
| Loans that meet FMNA guidelines are called | conforming loans |
| What is a point? | 1% of the loan amount |
| The pledge of real property as security for a debt is called | a mortgage |
| The major advantage of a Deed of Trust to a lender is | power of sale |
| A mortgage becomes a lien when it is | recorded |
| The document that is evidence of a borrower's promise to repay a loan is called a | note |
| When a lender collects principal, interest, taxes, and insurance (PITI) as part of a monthly payment, this is called | a budget loan |
| When a buyer purchases a property and takes over the payments and liability on an existing loan it is called | a straight assumption |
| A loan that covers two or more pieces of property on one note is called | a blanket loan |
| The most common approach for the appraisal of residential properties is the | Market Data Approach |
| The characteristics of value of land include demand, utility, scarcity, and transferability but not this... | taxes |
| Using the Cost Approach, the appraiser will calculate | land value+ building replacement cost- depreciation |
| Regulates closings on 1-4 residential properties with federally related financing | RESPA |
| When lower value properties in an area cause a decline in the value of the subject property this is called | Regression |
| Higher value properties cause an increase in the value of the subject property is called | Progression |
| 1 acre= how many sq ft? | 43,560 sq. ft |
| Taking buyers to or away from a particular area based on any of the protected categories under Fair Housing Laws is called | steering or channeling |
| The largest fine for any single violation of the Fair Housing Act is | $110,000 |
| The Civil Rights Act of 1968 does NOT offer protection against discrimination based on... | occupation |
| If you believe you are a victim of discrimination under the Federal Fair Housing laws, how long do you have to file a complaint? | 1year |
| commission rate x sales price= | Commission |
| 100% - commission rate x sales price= | Seller's net |
| % x total area= | Usable area |
| 100% + appreciation % x original cost= | Appreciated value |
| 100% - depreciation % x original cost= | Depreciated value |
| % x original cost= | Profit |
| interest rate x loan amount= | Yearly interest |
| % x list price= | Sales price |
| % x market value= | Assessed value |
| tax rate x assessed value= | Tax |
| qualifying ratio x gross monthly income= | Monthly PITI |
| capitalization rate x market value= | Net income |
| % x total= | Part |
| Part divided by the total = | % |
| Part divided by the % = | total |
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