Texas Real Estate Commission – ANSWER TREC-created by the Legislature in 1949.
9 member commission whose primary purpose is to carry out the provision of the
License Act
Real Estate Recovery Trust Account – ANSWER administered by TREC. the purpose
of the account is to protect aggrieved individuals who suffer monetary loss due to illegal
acts of license holders
unlawful practice of law – ANSWER license holder is not qualified to add provisions to
contracts that go beyond factual business details.
Promulgated Forms – ANSWER residential contract forms that are mandatory for
license holder
Deceptive trade practices Act – ANSWER Texas law that applies to trade and
commerce that was passed in 1973. Part of the Texas Business and Commerce code
Land – ANSWER surface of the earth extending downward to the center and upward
above the surface to infinity
Real Estate – ANSWER all that encompassed in land with the addition of all man-made
additions to the land (improvements)
Real Property – ANSWER goes beyond physical real estate and includes the rights that
a person has in the land.
Bundle of Rights – ANSWER rights that a person has in the land
severable – ANSWER different rights can be separate
Surface Rights – ANSWER the ability to develop the surface and to use resources
extracted from or near the surface
Subsurface Rights – ANSWER rights to oil, gas and minerals, are commonly conveyed
through a lease, mineral deed or reservation
Air Rights – ANSWER extend above the surface without limitations
improvements – ANSWER man-made additions to the land that is permanent and is
considered to become part of the land
personalty/chattel – ANSWER personal property
bill of sale – ANSWER used to accomplish the transfer of personal property,
accompanies the deed
Fixture – ANSWER personal property that has become attached to the land
annexation – ANSWER personal property that becomes real property
severance – ANSWER removing fixtures to become personal property
Physical Characteristics of Land – ANSWER Indestructibility-cannot be destroyed
Immobility-cannot be moved
Non-homogeneity-no two parcels are the same
Economic Characteristics of Land – ANSWER Scarcity-supply and demand
Modification-value is affected by man made changes
Fixity-additions take long periods of time to pay
Situs-location, location, location
Estate in Severalty – ANSWER ownership by one individiual
Co-Ownership – ANSWER ownership by two or more
Trust – ANSWER ownership conveyed to a trustee for the benefit of others
tenancy in common – ANSWER ownership by 2 or more with undivided interests
Partition – ANSWER own a distinct tract of land
Joint Tenacy – ANSWER type of co-ownership with the right of surviorship
Right of surviorship – ANSWER when joint tenant dies right of property are equally
divided among surviving owners
community property – ANSWER marriage is regarded as a partnership rather than
husband and wife become one.
separate property – ANSWER property owned by a married person that is not
community property
steering/channeling – ANSWER taking buyers or renters to or away from a particular
area based on the race, religion, etc, of the buyer or renter.
Blockbusting/panic peddling – ANSWER attempt to induce panic selling in a
2 / 3
neighborhood for financial gain.
Contract – ANSWER an agreement between 2 or more parties to do something or to
refrain from doing something.
implied contract – ANSWER an agreement created by our behavior
express contract – ANSWER an agreement through negotiation of an agree price and
terms between parties
bilateral contract – ANSWER contract of sale between a buyer and seller
Option – ANSWER an agreement between a buyer and a seller
Elements of a valid and enforceable contract – ANSWER Competent Parties
Offer and acceptance (mutual consent)
Legal Purpose
In writing
Consideration
Executory Contract – ANSWER once the terms of an offer have been agreed upon and
signed by the parties and acceptance communicated the contract becomes binding
assignment – ANSWER transfers all rights related to the contract to another party
allodial system – ANSWER privately owned land by individuals
Police Power – ANSWER the right of government to regulate and control the way land
is used
zoning – ANSWER example of police power
variance – ANSWER permission to violate the rules
buffer zone – ANSWER area of land separating one land use from another
building codes – ANSWER all residential structures must conform to code
eminent domain – ANSWER the right of the government to take private land for public
use
condemnation – ANSWER the action of taking land for public use
taxation – ANSWER the right of the government to tax real property