question

Promulgated Forms

answer

Form published by TREC that are mandatory for licensees to use in real estate transaction in the state of Taxas

question

Intentionally

answer

Acting with awareness or flagrant disregard of prudent and fair business practices

question

Puffing

answer

Use of adjectives and opinions rather than details or facts

question

Deceptive Trade Practices Act

answer

Allows an aggrived consumer to sue a seller of goods for damages

question

Broker Lawyer Committee

answer

Drafts and revises contract forms for use in real estate transaction in the state of Texas

question

The TREC was established by legislature in

answer

1949

question

The term "Promulgated" means

answer

To make known by open declaration; publish

question

TREC does not have promulgated sales contract forms for

answer

Commercial Transaction

question

A Texas Real Estate License can be suspended or revoked by ............on proof that a license holder used any other written instrument that transferred or affected the title to an interest in land other than TREC- Promulgated Form.

answer

TREC

question

TREC has promulgated Forms for

answer

Homes and Condos

question

If a client is interested in a lease with an option to purchase or a right of first refusal, the assistance of an ........ Is required

answer

Attorney

question

The ........ Is required whether or not the seller has ever occupied the property.

answer

Seller's disclosure

question

The TREC residential contract form are

answer

Drafted by the Broker Lawyer Committee

question

Wrongful or criminal deception intended to result in financial or personal gain is call

answer

Fraud

question

Under the Deception Trade Practice Act, ......... are defined as "Tangible Chattels".

answer

Goods

question

If Seller will continue to occupy the property for one month after the closing, the buyer and seller should

answer

Enter into a Sellers' Temporary Resident Lease

question

The Seller and Buyer Temporary Resident Lease Form may used for a lease period not to exceed

answer

90 Days

question

A Seller's Disclosure Notice is not required

answer

At a Foreclosure Sale

question

Improvements

answer

Any man-made addition to the land that are permanent

question

Annexation

answer

The process of attaching personal property so that it becomes real property

question

Emblemens

answer

Annual crops that are considered personal property even though they are attached to the land

question

Subsurface rights

answer

Include the right to deed oil, gas and other minerals

question

Personal property

answer

Things of a temporary or movable nature

question

The aspect of law that includes understanding the relationship between the parties to a transaction, salespeople and brokers is ........ Law

answer

Agency

question

Statutory Law

answer

Is body of laws and regulations enacted by Federal and State legislatures

question

Real Estate

answer

Includes all that is encompassed in land, with the addition of all improvement

question

Air Rights

answer

Extend above the surface of land without limitation.

question

Any Man Made addition to the land that is permanent, and is considered to become part of the land, is known as an

answer

Improvements.

question

Another name for Personal Property is

answer

Personalty.

question

Which of The following is a Physical Characteristic of land ?

answer

Indestructibity.

question

When a Sole individual or entity acquires real estate, an ......... Is created

answer

Estate in severalty

question

Town Houses

answer

Are generally attached units that share on or more common walls with other units.

question

A ......... Is an entity created for the Benefit of another

answer

Trust

question

Mutual consent

answer

Often referred to as a "Meeting of the mind"

question

Consideration

answer

Something of value given in exchange for a promise

question

Novation

answer

When a new contract is substituted for an existing one

question

Contract

answer

An agreement between two or more parties to do something or to refrain form doing something.

question

Executory contract

answer

A contract that is binding on the parties, with one or more of the parties having contractual duties that have not yet been performed.

question

In the most states, lease agreement for one year or less are the exception to the

answer

Statute of Frauds.

question

A unilateral contract is said to lack

answer

Mutuality

question

Contract with a person who lacks mental capacity can be either "Void" or

answer

"Voidable"

question

"Mutual Consent" is often referred to as a

answer

"meeting of the Minds"

question

"consideration" is defined as something given in

answer

Exchange for a promise

question

An "Novation" occurs when

answer

A new contract is substituted for an existing one.

question

According to the TREC promulgated contract forms, all representations made by seller and buyer "Survive Closing" , which means that both parties remain liable beyond closing for their representation made in the contract

answer

True

question

An option contract is

answer

A unilateral contract

question

......... Is not a requirement of a valid contract

answer

Earnest Money

question

If a person has been judged to be incompetent, a contract is ......... Because the person never had the capacity to enter into a contract in the first place

answer

Void

question

The five essential elements of a valid and enforceable contract are, "Consideration / Offer and Acceptance / Legal Purpose / In Writing / and

answer

"competent Parties"

question

A ......... Is an agreement between two or more parties to do something or to refrain from doing something

answer

Contract

question

Allodal System

answer

Private ownership of land by individual

question

Life estate

answer

Ownership for duration of someone's life.

question

Encroachment

answer

The intrusion of one's property onto another's property.

question

Easement in gross

answer

An easement that belong to a person or corporation and does not belong to the land.

question

Easement appurtenant

answer

An easement that is a right for the benefit of a piece of land.

question

All of the land in the U.S is held under the .........

answer

Alloidal System

question

Based on the lifespan of the life tenant

answer

- A type of freehold Estate. - Based on the life of another.

question

Which of the following is a recognized Statutory Estate ?

answer

Community property.

question

The main reasons for Homestead Laws includes

answer

Prevention of the forced sale of a home by Creditors.

question

Under a ......... , two properties become one and an easement is terminated

answer

Merger.

question

A ......... Is a right given by law to certain creditor to have debts paid out of property of a defaulting debtor,

answer

Lien.

question

An ......... Is a right or privilege or improvement that belong to and passes with land, but is not necessarily a part of the land

answer

Appurtenance.

question

When an individual owns real property, he or she is said to have a ......... In that property

answer

Freehold Estate.

question

If property violates zoning, the owners must request a ......... , which is permission to violate the rules

answer

Variance.

question

An example of an appurtenance would be

answer

Easements.

question

There is no upper limit on the value of a Texas homestead

answer

True.

question

A ......... Is an area of land separating one land use from another

answer

Buffer Zone.

question

The French term ......... Means a life estate that is based on the life of another

answer

Pur autre Vie.

question

Open Listing

answer

The type of listing which give the seller the right to list the property with multiple competing brokers and to sell the property personally without liability for payment of a commission.

question

Exclusive agency

answer

The type of listing in which the seller agrees to list the property with only one broker during the listing term , with the provision that the seller can sell the property himself or herself, without payment of a commission .

question

Exclusive right to sell

answer

The type of listing which grants an exclusive right to sell the property during the listing term and a commission to be paid even if the property is sold by the owner.

question

Net listing

answer

The type of listing in which the real estate broker's commission is the difference between the minimum net established by the seller and the price that the buyer is willing to pay.

question

The term ......... Is not generally recommended in the real estate contracts

answer

Time is of the essence.

question

Which of the following are benefits of a buyer-agency relationship

answer

- Assistance in obtaining financing - Access to market data - Assistance with negotiations

question

The simplest type of lease is the

answer

Gross lease

question

The ......... Lease provides an incentive to the landlord to build foot traffic in the center with promotion , events and superior maintenance

answer

Percentage.

question

In a ......... , a tenant has the right to match or better any offer the landlord may receive on the property before the property may be sold to someone else

answer

Right of first refusal

question

In most states an ......... Is referred to as an action of "Forcible detainer"

answer

Eviction.

question

The essential elements of an option agreement include, Price, Condiction, and

answer

Term.

question

A lease purchase agreement is one that combines some of the elements of a ......... With a lease

answer

Sale.

question

Listing agreement

answer

Is an employment agreement between the seller and the broker

question

A Lease purchase agreement

answer

Is one the combines some of the elements of a sale with lease

question

Prior to closing, severe damage to or destruction of a property under contract

answer

Can result in termination of the contract.

question

The four major types of listing agreement are: "Exclusive Agency / Net Listing / Exclusive right to sell / and ............ "

answer

Open listing.

question

In a ......... Lease, the tenant's rent is based, in whole or in part, on the receipts of his or her business

answer

Percentage lease.

question

"contract for Deed"

answer

Is type do seller financing wherein the owner retains title to the property while the purchaser takes possession of the premises and pays on the principal.

question

Real estate license holder can pick and choose which offers to present to their clients

answer

False

question

Acceptance of an offer means that the accepting party does so with no changes to the contract

answer

True

question

The most common method for describing land in residential subdivisions is the meters and bounds description

answer

False

question

All states require that signatures on a contract be witnessed and acknowledged by a notary

answer

False

question

In the event of default by the buyer, the seller can choose to accept the buyer's earnest money as liquidate damages

answer

True

question

There are three offers on a client's property, as a real estate agent , You

answer

Must present all offers.

question

When does an offer becomes a binding contract

answer

When it is signed by all parties and the acceptance communicated to the offering party.

question

The person to whom a offer is made has several options when responding to the offer, which included:

answer

- Rejecting the offer - Accepting the offer - Doing nothing

question

"counteroffer"

answer

Is made when a party changes an offer in some way and communicates the change to the other party

question

The "Metes and Bounds"

answer

Description uses terminal points and angles to describe a parcel land

question

Earnest Money is a requirement of a valid contract ?

answer

False

question

Which of the following requires a contract for the conveyance of real estate to be in writing to be enforceable

answer

Statute of Frauds

question

Off a broker receives more than one offer on a property

answer

All must be present to the seller unless the seller has instructed the broker otherwise

question

A "counteroffer" is

answer

- A rejection - A new offer - Able to be withdraw prior to acceptance

question

A seller choosing to receive a buyer's earnest money, after the buyer defaults on a contract is a

answer

Liquidated damages

question

The most common form of financing used by buyer is

answer

Third Party Financing

question

The special provision paragraph of the contract allows licensees to insert

answer

- Factual business details - Statement not addressed in the contrac - Information for which there is no TREC promulgated addendum, lease or mandatory form

question

An offer by a prospective purchaser can be terminated prior to acceptance due to:

answer

- Expiration of a specified time period. - Bankruptcy of either party. - A Change in the law that renders the contract illegal.

question

Contingency

answer

A Provision in a contract that requires a certain act or event happens in order for the contract to be binding on the party.

question

Radon

answer

A colorless, odorless gas that is a concern to some buyers.

question

Addendum

answer

An attachment to a contract that adds or further describes the rights and duties of the parties

question

Amendments

answer

Changes to a contract .

question

Sale of other property contingency

answer

A provision in a residential contract that states that the seller and the buyer agree that the purchase of the property depends upon the sale and closing of the buyer's existing property

question

The term "Subject to" is synonymous with contingent.

answer

True

question

The contract should include a ......... In case there are any title problems that the seller has that could become future problems for the new buyer

answer

Title contingency

question

Unsatisfactory results from an inspection may be grounds for ......... Of the contract.

answer

Termination

question

The Lead-Based Paint Disclosure is

answer

A Federal requirement for residential property built prior to 1978

question

The closing date specified in a contract is usually an ......... Date.

answer

On or before.

question

In Texas, real estate contracts are subject to satisfactory inspection

answer

False

question

Servicing

answer

Sending monthly payments, collecting monthly payments, and following up on delinquencies,

question

Closing

answer

The consummation of a contractual real estate transactions in which all appropriate documents are signed and proceeds of the loan are disbursed by the lender

question

Promissory Note

answer

The borrower's unconditional promise to repay

question

Underwriting

answer

The detailed process of evaluating a borrower's loan application to determine the risk involved for the lender.

question

Foreclosure

answer

The legal procedure whereby the secured property may be sold to satisfy the unpaid promissory note

question

The Federal Reserve

answer

Is the central banking system of the U.S.

question

"Fannie Mae"

answer

Formerly known as the "Federal National Mortgage Association"

question

A reserve bank charges eligible financial institutions an interest rate called the ......... To borrow funds on a short-term basis

answer

Discount rate

question

"Primary market"

answer

The market in which borrowers and mortgage lenders come together to create and negotiate term of mortgage transaction .

question

"Character"

answer

Is a measure of the willingness of a borrower to make on- time payment

question

The "Loan-to-Value-Ratio"

answer

Is percentage of the lesser of the appraised value or sale price that the lender will loan

question

A "Section 502 Loan" is insured by the

answer

U.S Department of Agriculture

question

The "CFPB" was established under

answer

"Dodd-Frank"

question

Texas Veteran's Housing Assistance Program loan can be

answer

- FHA - VA - Conventional

question

The least common form mortgage financing is

answer

Seller Financing

question

Real estate agent play a role that includes arranging for the pre qualification pre approval of buyers

answer

True

question

A "mortgage"

answer

Is a pledge of real estate as security for the repayment of the debt.

question

If the loan factor is $5.53 on a $200000.00 loan, Tax are $2400/ Year and insurance is $1800/ year, What is the monthly "PITI" payment

answer

* Calculate how many "$1000" of the Loan $200000 / $1000 = 200 * Principal & interest monthly 200 x 5.53 (Loan Factor) = $1106 * Monthly Tax pay $2400 / 12 = $200 * Monthly Insurance Pay $1800 / 12 = $150 PITI = $1456 ($1106 + $200 + $150)

question

General warranty deed

answer

A deed in which the grantor promises to warrant and defended the grantee's interest in the property, back to the sovereignty of the soil.

question

Special warranty deed

answer

The grantor promises to warrant and defend title, but only against claims which may have arisen during his or her of ownership.

question

Bargain and sale deed

answer

A deed with no warranties or guarantees, the grantor implies ownership or the right to transfer title, but does not provide a warranty of title.

question

Quitclaim deed

answer

A deed with no guarantees, warranties or covenants, the grantor does not even claim to own the property.

question

Tax deed

answer

A deed which is used to convey title to property , sole by government at a tax sale.

question

The "chain of title"

answer

Is history or list of all recorded owners of a property all the way back to the "sovereignty of the soil".

question

A deed

answer

Is a written document that conveys ownership or an ownership interest in real property from one party to another party.

question

Involuntary alienation

answer

Is a transfer ownership of property "against the will" of the owner (foreclosure, bankruptcy...)

question

A "Will"

answer

Is a written expression of the desire of the person as to the disposition of that person's property after death.

question

Consideration

answer

Is something of value given in exchange for promise.

question

Title

answer

Is the evidence an individual has of his or her right to possess land.

question

Probate

answer

The formal judicial proceeding to prove or confirm the validity of a will to determine the person to whom the remainder of the estate is to pass

question

"Codicil"

answer

Is an addiction or an amendment to an existing will.

question

Adverse possession

answer

Occurs when an individual acquires title from the rightful owner of a property through hostile, actual and continuous occupation of the land for the statutory period.

question

Foreclosure

answer

Is the process by which a lender exercises its power of sale under a mortgage that is in default.

question

Restriction

answer

In a deed is a limitation placed on the new owner by the grantor.

question

Pottage (an assemblage)

answer

Is the combination of two or more properties into one.

question

A written history of all instruments and happening that may affect title is called

answer

An abstract of title.

question

When the title history of parcel of land has been researched back to the original conveyance by the government, the history is said to go back to the

answer

Sovereignty of the soil.

question

Intestate succession

answer

Occurs when an individual dies, leaving NO valid will.

question

A ......... Description of property is a requirement for a valid deed

answer

Legal.

question

Title is the evidence of a person 's right in real estate

answer

True

question

The title commitment must be delivered by the title company within 10 days of its receipt of the contract

answer

False

question

Texas is one of the few states that does not license home inspectors

answer

False

question

( Real Estate Settlement Procedures Act ) RESPA section 8 encourages the use of "Kickbacks"

answer

False

question

Sellers may require buyers to buy title insurance from a specific title company as a condition of the sale

answer

False

question

A ......... Is research that is done by an examiner or abstractor

answer

Title examination

question

Ongoing expenses such as property taxes and property owner association fees that are divided between the buyer and the seller at closing are called

answer

Prorations

question

Prorations are calculated on a

answer

365-day year

question

RESPA prohibits ......... , which is considered an abusive practice

answer

Kickbacks

question

Certain transactions, including ......... , are considered exempt from RESPA

answer

Business loans

question

Mortgage originators must provide an applicant with. Copy the Special Information Booklet "Shopping for your home loan: HUD's Settlement Costs Booklet" at the time of application submission or within ......... Business days after the receipt of application

answer

Three

question

A controlled business arrangement does not violate Section 8 of RESPA and Regulation X if the referring party gives the disclosure notice to the consumer at or prior to the time referral

answer

True

question

RESPA regulates closing on

answer

1-4 family residential properties with federal related financing

question

Section 8 of RESPA ( Real Estate Settlement Procedures Act )

answer

Prohibits any person who, pursuant to any agreement or understanding, give or receives a fee or a thing of value for the referral of settlement business

question

Regulation X

answer

Implements the RESPA

question

Rule P-53 of the Texas Department of Insurance states that Title Company

answer

- Cannot provide food and beverages for a picnic for a single firm. - Cannot provide an annual party for a single firm. - cannot provide continuing education classes unless they charge the market rate for those class.

question

A yearly Tax bill is $2400 and has not been paid. The property has sold And closing is July 30th. How much will be owed at closing for tax? (The seller pays for closing day)

answer

$1387 = ($2400 / 365 days) x 211 days

Texas The Law of contracts (Study & HomeWork) Champions School 2015 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards