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Terms in this set (200)The Real Estate License Act or TRELA is Chapter 1101 and 1102 of which regulation? Texas Occupations Code According to the Texas Real Estate Commission Rule 531.18, what document must be prominently displayed in each broker's or inspector's place of business? Consumer Information Form 1-1 What term identifies an economic preference for a certain location? Situs How may real property be turned into personal property? Severance Which of the following terms refers to an item in which ownership transfers through a bill of sale rather than a conveyance instrument such as deed or will? Land Plants that are cultivated and harvested are considered personal property and referred to as Emblements Investment permanence of land Fixity Which right is not associated with property ownership? Feudal Rights Definition of a fixture Personal property permanently attached to real property A system of land ownership in which all of the land in the kingdom was owned by the kind or the queen Feudalism
Primary difference between a townhouse and a condominium ? Ownership or conveyance of a townhouse includes the land ownership Which type of report identifies any insurance claims made on a parcel of real estate in the past five years? CLUE report Which classes are not among the protected classes established by the Fair Housing Act? Age and sexual orientation Which rule should REALTORS use as a guide for making ethical decisions? The Golden Rule Can a license holder renew his or her expired license if it has been expired for less than 90 days? Yes, but he or she must pay an additional fee equivalent to one and one half times the renewal fee What is the main function of the Texas Real Estate Commission? Adopt and enforce rules for governing real estate practitioners Refers to the surveyor's or developer's map detailing the borders of the individual lots that he or she will develop and sell? Plat
Benchmark? Permanent reference marker for both locational and elevation points Entity that sets the minimal education requirements for the appraisal industry The Appraisal Foundation and the TALBC In addition to house work, how many hours of field experience is required for a Licensed Residential Appraiser? 2000 plus 150 hours of appraisal subject matter education Cost? The money spent to purchase an object or avail a service According to the theory of inclining and declining periods, the stages of an item's market life can be summed by what phrase? Growth, stability and decline "The most probable price that a property should bring in a competitive and open market when all conditions required for a fair sale have been met, that is, the buyer and seller are acting prudently, knowledgeably and summing neither is under duress" is the definition of which term? Market Value Which characteristics of a property include its age, location and surroundings? Physical What is a market? A place for buying and selling commodities A statute that requires the disclosure of the true cost of borrowing money or making the loan including all fees charged along with the calculation and disclosure of the annual percentage rate (APR)? The Truth in Lending Act (TILA) Promissory note? A written agreement of the borrow's promise to repay a debt Mortgage? Security for a debt on the purchase of real estate Who is the mortgagee and who is the mortgagor? The mortgagee is the lender and the mortgagor is the borrower Fully amortized loans They have equal monthly payments throughout the life of the loan Escrow account A form of trust account in which a borrower deposits monthly payments for taxes and insurance or a trust account used for closing or settlement in escrow or by a third party Acceleration clause A clause that makes due the entire loan amount upon borrower default Three most common loans VA, FHA, and Conventional loan An underwriter will include most sources of income in an income analysis if a history can be established that covers a period of at least the last? 2 years Which one of the following financial obligations is would NOT be considered in determining an applicant's debt to income or total debt service ratio? Rent but a car loan, credit card debt, and child support would be considered. Lender underwriting guidelines categorize loans, determine loan types, mortgage insurance premiums, and interest rates by how much a borrower is providing as down payment in comparison to the total purchase price. What is the correct term for this? Loan to value ratio The VA loan program provides which of the following assurances? Guarantees loans to qualified veterans What is an adjustable rate mortgage (ARM) margin? The additional amount a lender adds to the index to adjust for the new interest rate on the loan The Real Estate Settlement Procedures Act requires lenders to provide to the borrower all of the following documents EXCEPT _______. A copy of the credit report that was used to underwrite the loan. Which one of the following statements about a reverse annuity mortgage is FALSE? A reverse annuity mortgage is where homeowners borrow the equity in their homes Which principle is used by communities to ensure land development is financially viable, physically plausible, and maximizes the use of land? Highest and best use There are four main types of land use controls that state and local governments follow in order to regulate the development of real estate and to maintain clean and safe environments for the public. Which of the following is NOT a public control? Deed Restrictions What are the three public controls Zoning, building Codes and environmental protection legislation Which of the following statements best describes the difference between a zoning variance and a conditional use permit? A variance provides a legal exemption from the current zoning, and a conditional use permit allows an exemption with specific conditions. Which of the following people would have the primary responsibility of bringing a tenant to the landlord or property manager and preparing lease agreements? Leasing agent Which of the following specialties involves finance management, maintenance, collecting rents, marketing and evictions? Property management specialist Which of the following type of property is usually located in a desirable vacation spot? Resort Properties
Why must there be an allocation or separation of basis between the land and the building? Land is not depreciable Investors typically want a DCR of at least _______. 1.2 Which figure tells an investor that the present value exceeds the initial equity investment in the property? Net Present Value Which of the following statements about freehold and leasehold estates is FALSE? A leasehold estate is a right to possession only. Which type of leasehold estate or tenancy has an automatic renewal? Periodic estate Which of the following statements is TRUE with respect an assignment and a sublease? A sublease transfers a leasehold interest to another releasing their obligations. Mary and Bob's lease agreement has expired and they have not vacated the leased premises. The landlord does not want to renew or extend their lease and does not want them in possession. What is this type of possession called? Tenancy at sufferance What is a set of laws that identify the rights and obligations of both the lessor (landlord) and lessee (tenant)? The Landlord and Tenant Act Which one of the following types of leases stipulate a base rent plus property expenses such as taxes, insurance or operating expenses? Net lease When a leasehold estate has a specific beginning and ending date, it is most likely which of the following? Estate for years When an owner has a reversionary right, this right is best described by which of the following? Possession of the property reverts to the owner after lease expiration. The required elements of a contract are all of the following except: Recorded with the appropriate county recorder What do property managers need to understand to better help owners' reach their objectives? Owners' financial situation Which of the following is the most practiced specialization for licensed real estate professionals? Residential The property manager's primary duty in managing a property for an owner is which of the following? Protects owner's capital investment in the real estate and makes sure that the property generates a profit. Wild Willie, a property manager, signs a standard property management agreement with Anita, an owner of an apartment complex. What type of relationship has been created? Fiduciary with a general agency relationship Where are property managers required to keep deposits and rent payments? Trust Accounts What would NOT be included in a management plan? Manager's objectives Which of the following is NOT a transfer of real estate by involuntary alienation? Dedication Which term refers to the acquisition of new land or real property through artificial or natural means? Accession Which one of the following items are NOT elements of a valid deed? Signature of the grantee Which of the following statements best explains the difference between an exception and a reservation? An exception is where the seller excludes an interest in the conveyance and a reservations is where the seller retains a new right. Which of the following deeds offers a grantee the least assurance regarding the condition of a property's title? A quitclaim deed What does the habendum clause in a deed indicate? The quantity or extent of the interest being conveyed What are the limitations of a special warranty deed? The grantor warrants the deed against title defects for only the period he or she owned it How can a title holder provide constructive notice of their ownership interest in a property? By recording a deed and having it entered into the public record What are buyers generally focused on at the closing? Obtaining marketable titles from sellers What are sellers generally focused on at the closing? Obtaining his or her desired purchase price What should a buyer do before closing a real estate transaction? Hire a professional inspector to conduct a final property inspection Among the following acts, which one is NOT part of a broker's role in a closing process? Writing the deed and conveyance instrument Which expense would NOT generally be considered an example of an accrued item? Costs for fuel oil on hand How do you calculate the amount of cash that a buyer must bring to the closing? Subtract the buyer's total credits from his or her total debits. When their principals' transactions involve federally related mortgage loans, what does RESPA prohibit licensees from doing? Accepting fees for referrals of settlement service business Buyers must receive copies of Closing Disclosure forms that show their own expenses and totals no later than 3 business days prior to closing of the loan. ... If an expense has been paid outside of the settlement, which acronym should be used on the Closing Disclosure form line? P.O.C. ("paid outside of closing") Only a _______ may technically enter into an agency relationship with the buyer or seller. broker In an agency relationship, the _______ authorizes the agent to represent his or her interests. Principal Who is NOT usually the principal in a real estate transaction? An agent In the relationship with a buyer or a seller, a real estate agent is usually a: Special agent The only requirement for the formation of an agency relationship is: The consent of the agent and the principal Agency relationships are also generally _______ relationships. Fiduciary Which of the following statements is TRUE? A written agency agreement is generally considered the safest way to enter into an agency relationship. If a principal appoints an agent and the agent accepts, an agency relationship has been formed by: Express agreement A(n) _______ arises when a party assumes consent to the relationship based solely upon inferences formed from communication with the other party. Implied agency relationship When a principal agrees to an action performed by an agent that is outside the scope of the agent's authority, it is said to be an agency created by which of the following? Ratification The duty of reasonable care includes which two components? Integrity and competency Duty of accounting When a license holder acts as a broker or salesperson, he or she must uphold all of the following duties to third parties EXCEPT: The principal is the client and the third party is the customer. ... The duty of honesty and fair dealing would require which of the following actions from a broker or salesperson? Conveying accurate information about material facts to all parties Which of the following services could be done for both buyer clients and third party buyers? Disclose material defects about the property. Which of the following is obligated by law to furnish a Seller's Disclosure Notice? investor the _______ is required by the Texas Property Code. TREC seller's disclosure form If a potential buyer asks the agent if the former owner of the property died from AIDS the agent should: Explain that any answer to them may be a violation of federal law Lead Based Paint Disclosure would be required if the property were built before _______.
1978 Which of the following has to be disclosed to potential buyers? A murder/suicide that has taken place on the property. In order to place a "For Sale" sign on an owner's property, the agent must obtain which of the following things? Written consent from the owner The listing agreement usually creates an agency relationship between: the broker and seller Express agency agreements can be _______. Either written or oral Which of the following agreement BEST ensures that an agent will be entitled to compensation in a transaction? Written agreement with the party paying the commission Licensee A shows a property to a potential buyer who asks for the licensee's opinion of an estimate for some repairs. Licensee A represents the seller of this property. How should Licensee A respond? Licensee A should refrain from stating any opinion and should advise the buyer to seek an estimate from a professional in that field. As defined in the Texas Real Estate License Act, what is a sub-agent? A license holder who represents a principal through cooperation with the principal's broker and who is not sponsored by or associated with the principal's broker. The everyday term "verbal contract" usually refers to a(n) _______. Oral All of the following are true EXCEPT: There is no commission agreement in the Buyer Representation Agreement. intermediary dual agent How many people have to be in a firm for the broker to act as an intermediary? 2 The form that must be given at the first substantive dialog about a specific property is the _______. Information About Brokerage Services A listing term ended last week. The agency relationship has been terminated by _______.Expiration Expiration An example of extinction (destruction) of subject matter is: The house involved in the transaction burns down. Under the common law, an agency relationship can be ended by action of the parties or by events. The three methods by which the parties can end the relationship include all of the following EXCEPT: mutual agreement Seller A and Agent A mutually decide to end their agency relationship. Which duties does the agent continue to owe the seller? Confidentiality and accounting When an agent decides to leave an agency relationship, it is said to be termination of the agency relationship by _______.Renunciation Renunciation Two Brokers decided it only made sense to them for each to focus on different market areas. Broker A agreed to only work in the north part of the city and broker B agreed to only work in the southern part of the city. They each told their agents which section of the city was theirs. Were they in violation of any laws? Allocations of customers or markets A corporation found guilty of a violation of the Sherman Anti-Trust Act is subject to _______. A fine of $1,000,000 Real Estate license holders sometimes decide to represent family or friends without charging them a fee. Should their broker be concerned about liability? Agents should have all terms and expectations in writing to limit their liabilities. What should an agent do to prevent implied, unintended agency? Disclose agency relationships to all potential customers upon initial contact. Under the duty of agency disclosure, when must a licensee give an individual the written statement of agency law? Upon first substantive dialogue Which of the following statement is TRUE? The Texas Real Estate Commission mandates that the broker must have a brokerage policy manual. All of the following are duties that the principal owes the agent EXCEPT: Obedience That the licensee be actively licensed at the time the commission is paid. The act of receiving a commission payment does NOT require which of the following things? What determines if a person is an employee or an independent contractor? IRS guidelines According to IRS guidelines which of the follow do not fit the description of an independent contractor? The supervising broker divides commissions based upon time spent in the office and outside referrals. A builder wanted to pay an agent directly for bringing in a buyer. Is this permitted under the License Act? No, salespersons can only receive money from their broker. In order for a licensee to maintain an action to recover a commission, which of the following conditions must be met? The agreement or promise to pay is in writing. TREC can suspend or revoke a real estate license or take other disciplinary action if a licensee commits any of the following actions EXCEPT: Receives compensation from more than one party to a real estate transaction with the consent and full knowledge of all parties to the transaction What is the purpose of the Rules of the Texas Real Estate Commission? To expand upon and interpret the Texas Real Estate License Act Which of the following professionals does TREC NOT regulate? Building contractors TREC's primary mission is to protect which of the following people? Consumers of real estate services When handling the funds of a client or a third party, the licensee must: Keep the money in a trust account that is separate from the licensee's personal or business accounts. A broker can be found guilty of a violation of the license act for which of the following practices? Acting as both broker and principal without knowledge and consent of all parties involved in the transaction What is tort liability? Liability for an intentional or negligent wrongdoing or a breach of duty When an agent commits a tort, the principal could be legally freed from the obligation to pay commission, which is called: Avoidance In addition to avoidance, the outcomes of tort liability include all of the following EXCEPT: Condescension When you meet with an unrepresented buyer or seller for the first time to discuss a specific parcel of real estate, you must _______. Present the Information about Brokerage Service form How long does the client have to file a TREC complaint? Four years from the date of the discovery of the problem An important consideration when looking for listings is _______. The seller's motivation. The Information About Brokerage Services form explains to sellers that if the broker is representing the buyer, the seller should not tell the broker anything he would not want the buyer to know because _______. A buyer's agent must disclose to the buyer any material information known to the agent. Which of the following duties does a broker NOT owe to all parties? Obedience A seller's agent may provide all of the following services for a buyer EXCEPT: Discussing the quality of the neighborhood In the 1970s no one was representing buyers yet. It was common for a listing broker to offer to compensate another broker if the other broker would help him or her represent the seller and get the property sold. This was the practice of _______. Sub-agency Which of the following things would NOT be a duty of a buyer's agent? Advise the seller's agent that the buyer is desperately motivated to buy the property Broker Cletus represents Buyer Bonnie and finds her suitable property, but Cletus represented the property's seller six months ago. Cletus discloses this conflict of interest to Bonnie, who is okay with the past arrangement. If, while representing the seller, Cletus learned some confidential information that would help Bonnie, what should Cletus do? Never disclose the confidential information. What is the essence of the agent's fiduciary responsibility? Client's interest always come first Which rule establishes that an agent cannot be held liable if the principal cannot fulfill the terms of the agreement with the third party Warranty of authority What must a licensee do with respect to the licensee's own interests? lace the principal's interests above all others' including the licensee's interests. Which scenario is an example of extinction of subject matter? he house destroyed in a mud slid. What document should agents require from prospective buyers before making a decision to represent them? Prequalification letter by a lender A seller's agent cannot provide which of the following services? Withhold material defects from the buyer TREC has the authority to suspend or revoke the real estate license of a licensee who engages in the unauthorized practice of the law, which includes such actions as: Giving advice about the interpretation of a property's title ... Seller R wants to list her property with Broker S. Broker S prefers the exclusive right-to-sell listing. However, Seller R's mother has inquired about the property and Seller R does not want to owe a commission if her mother purchases the property. What can the broker and the seller do to resolve this situation? hey could add an amendment to the exclusive right-to-sell listing. TRELA says a license holder shall provide to a party to a real estate transaction at the time of the first substantive dialogue with the party the written statement prescribed by Subsection (d) of the license act unless: The proposed transaction is for a residential lease for not more than one year and a sale is not being considered. With regard to the duty of obedience, which of the following statements is TRUE? The agent has the duty to obey lawful instructions of the principal. One thing the broker would never put in the company policy manual is telling the agents to _______. Advise the buyer of the racial make-up of the neighborhood. A buyer's agent cannot provide which of the following services? Provide an opinion about the legality of the title Which statement about fixing prices, boycotting competitors, and allocating customers or markets is TRUE? They are actions in the real estate industry that violate antitrust laws. What should NOT be included in a buyer representation agreement? Standard fee set by TREC Under the definition of a broker as set forth in the Texas Real Estate License Act, all of the following statements are true EXCEPT: An individual who sells his or her own property is automatically considered a broker. Which of the following acts would NOT subject a licensee to disciplinary action by TREC? Discloses who he represents to all parties up front Buyer B signs a Buyer Representation Agreement with Salesperson D, who is sponsored by Broker C. Which of the following is TRUE in this situation? Salespeople get their authority to act as an agent for a client through their supervising broker. (Lesson Nine, Employment Relationship Between Brokers and Principals) What is the name of the set of rules written by the National Association of REALTORS® that has been guiding real estate agents for many, many years? The Code of Ethics Who regulates educational and licensing programs to maintain standards of the real estate profession and interprets legislation that affects the real estate profession? TREC What type of contract is created when two people verbally agree to do something? Oral contract What must be included in a TREC-adopted listing contract form? Provision informing the parties to the contract that real estate commissions are negotiable. Real estate agents are most often classified as which of the following agents? Special agents Broker Sam has 150 agents in his 5 offices. Sally in the North East Office is in the process of selling a property to a buyer she is representing. The property they are buying is listed by Doug who is in Sam's South West Office. Sam's agency policy says they do intermediary transactions when needed. What roles are Sam and Sally and Doug each playing? Sam is the intermediary, Sally is an appointed licensee to the buyer, and Sam is an appointed licensee to the seller. In Texas, the duties a broker owes to his or her client include _______. Loyalty, good faith, honesty Which of the following is not a stigmatized property? A property that recently got a new roof. Which of the following things would NOT be a service provided by an agent to a seller client? Prepare a market analysis for a buyer The Rules of the Commission say that a real estate broker or salesperson has a special obligation to exercise integrity in the discharge of the license holder's responsibilities, including employment of prudence and caution so as to avoid _______, in any wise, by acts of _______ or _______.Misrepresentation, commission, omission\ ... Which of the following statements about intermediaries is true? To act as an intermediary, written consent is required from both parties. The cooperating agent is a sub-agent of the _______. Broker When can a seller's agent help a buyer? When it benefits the seller Which statement about terminating a listing is TRUE? The principal always has the right to fire the agent, but if the agent and the principal have a listing agreement, the agent may still have contractual rights. A licensee would be expected to provide advice on which of the following topics? Real estate values in the area he Texas Real Estate License Act states that a licensee is not required to disclose or to inquire about all of the following EXCEPT: Whether an accident occurred on the property that was caused by the condition of the property Which of the following agreements is NOT considered a listing agreement? Commission agreement with unrepresented seller What type of authority do agents generally have in an agency relationship? Limited Which action is an example of the duty of honest and fair dealing by a broker or salesperson? Conveying accurate information about material facts to all parties. Broker's fees are controlled and regulated by _______. Broker fees are not controlled or regulated; they are negotiable between the agent and the client. (Lesson Twelve, A Practical Guide to Everyday Practice) If a brokerage never takes a listing and represent only buyers they are a(n) _______. Single agency brokerage What must the broker obtain in order to act as an intermediary? The broker must obtain written consent from both parties by the broker in order to act as an intermediary. (Lesson Six, Intermediary Brokerage) Broker Nero and Seller Nubia verbally agree to an agency relationship with a 5% commission. Under this agreement, which statement is FALSE? Without a written agency agreement, the agent might not be able to force the client to pay the commission. But the agent still has to perform the duties of an agent. (Lesson Two, Authority of Agent) When should a broker explain that the buyer should have the abstract examined by the buyer's attorney or obtain a title insurance policy? When drafting an offer Which of the following is expected of the broker under the License Act and the Rules of the Commission? The broker must be available to answer the client's questions. If an agent acts beyond the boundaries of his or her duties and the principal authorizes the actions after the fact, this is called: Ratification Which of the following things would NOT be a service provided by an agent to a seller client?
Preparing a market analysis for a buyer would not be a service provided by an agent to a seller client. (Lesson Four, Benefits of Seller Agency Relationships) When a licensee represents a principal through cooperation with and the consent of the broker representing the principal, the licensee most likely is regarded as a(n) _______. Sub-agent What action would NOT be grounds for license suspension by TREC? eceives compensation from more than one party to a real estate transaction with the consent and full knowledge of all parties to the transaction All of the following situations illustrate a tort EXCEPT: An agent neglects to disclose to a third party confidential information about the principal. Which of the following is TRUE? Your relationship with your broker is one of general agency. How many agency disclosures are required by the Texas Real Estate License Act and what are they? 2, you must give both of the above.
What is one of the duties that the principal owes the agent? he principal must make the property available to the agent. (Lesson Nine, Employment Relationships between Broker and Principals) What is the correct description of a client's agreement to an agent's actions that go beyond the authority stipulated in the listing agreement? Ratification is when a principal agrees to an action that an agent has performed outside of the scope of his or her authority. It is risky to assume that a principal will ratify an action after the fact. (Lesson Two, Authority of the Agent) Chapter 53 in the Texas Occupations Code allows the TREC to revoke or suspend an agent's license for being convicted of a felony or misdemeanor that relates to the real estate profession. (Lesson One, License Act Statute and Rules)Real Estate License ... Students also viewedLesson 10: Closing and Settlement Costs24 terms sydkaaay 1151 Law Agency18 terms Viet_Ha7 1151 Law of Agency Lesson 3: duties/disclosures of…18 terms Viet_Ha7 1151 Law of Agency - Lesson 59 terms bradc6 Other sets by this creatorIl tempo, le stagioni e le attività sportive (Capi…42 terms Diomarvel_Nsofor Core 100 Italian Words101 terms Diomarvel_Nsofor Nutrition Midterm ch. 1-976 terms Diomarvel_Nsofor Preposizioni Articolate35 terms Diomarvel_Nsofor Other Quizlet setsUnrestrained Exam3 V310 terms ryan_lam66 Farmacos- Infecções Virais17 terms izane_caroline Mod 3 (Disease)76 terms bekah_sage Where should the Texas consumer protection notice be displayed if anywhere?The Consumer Protection Notice must be hyperlinked in a readily noticeable location on the homepage of your business website. For real estate brokers, sales agents, and inspectors, the text for the link must be either: Texas Real Estate Commission Consumer Protection Notice in at least 10-point font.
What must be displayed in a prominent location in each place of business a broker maintains?Finally, principal brokers are required to display their license and the licenses of any executive brokers or salespeople they employ in a prominent location inside their place of business.
What must be posted in every Texas real estate brokerage office?providing a link to it in a readily noticeable place on the homepage of each business website, labeled:. "Texas Real Estate Commission Consumer Protection Notice", in at least 10 point font; or.. "TREC Consumer Protection Notice", in at least 12 point font.. Where must a completed Texas IABS form be linked quizlet?Rule 531.20(b)(1) states that each broker and sales agent must provide a link on its homepage to the IABS Notice labeled "Texas Real Estate Commission Information About Brokerage Services." The link must be in at least a 12-point font and in a readily noticeable place on the homepage of the business website of the ...
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Where should TRECs Consumer information form be prominently displayed quizlet?
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