Main objectives of the Texas License Laws - Protect the public from incompetence by requiring a test

Texas Pre-License - Principals of Real Estate I (Aceable) Flashcards Bundle of rightsRight of exclusionright of possesionright of dispositionright of quiet enjoyment Main objectives of the Texas License Laws - Protect the public from incompetence by requiring a test for licensing- set minimum standards- maintain high ethical standards DTPADeceptive Trade Practices Act - individuals have 2 years from the discovery of the deception to file a complaint Who enforces the federal fair housing laws? Secretary of the department of Housing and Urban Development Fructus Industriales (Emblements)Annual plantings that require cultivation. Considered personal property, even prior to harvesting. (Fruit, nuts) Two forms required by the Canon of Professional Ethics and Conduct

• Consumer Protection Notice TAREC No. CN 1-2form

must be displayed by broker in a easily noticeable location.Website must also have a link in 10pt. Font2. Information about brokerage servicesform must be given by person, by first class mail, in email body or as attachment Errors and Omissions Insuranceprotects broker if the seller misrepresents property condition, the broker is unaware, and could not have detected by visual inspection ( like malpractice insurance) PITIPrincipal, Interest, Taxes, Insurance Multi-family homesStructure that houses more than one family. Each family

lives in separate units ex: duplex, triplex, four Plex

Metes and boundsOldest method. This system traces the boundaries of a property in reference to a fixed monument. The monument is known as POB (point of beginning)start at POB and read clockwise.Community Reinvestment ActA law requiring lenders to meet the needs of the community in which they are chartered to do business Landlord responsibilityPeople with disabilities must be allowed to make reasonable modifications so that they may enjoy a property. Typically at their own expense and they are to remove the modifications should the landlord wish.A person who violates the License Act could face: Administrative penalties: TREC can fine $5,000 per

violation EACH DAY the violation continuesCivil fines: up to

3x the amount of money received for the

transactioncriminal charges: local municipality can charge a

misdemeanor for violating TRELA AccountingAgents must account for all funds given to them. Can not store funds in personal account as this is considered commingling and is illegal.escrow funds must be deposited within TWO business days of signing a contract.

Fructus NaturalesReal property. Plants such as perennial landscape plants.Fair Housing Act1968 act banning refusal to sell or rent a dwelling to any person because of race, color, religion, sex or national origin, familial status, disability. Residential real estate.also includes discrimination in advertising, denying availability, blockbusting, discrimination in financing fideltiyYou should cooperate with other brokers except when the cooperation is NOT in your clients best interest. Treat all parties honestly.FixityLand can not be moved. Geographic characteristic.BlockbustingIllegal practice of inducing homeowners to sell their properties by telling them that a certain people of a certain race, national origin or religion are moving into the area.Say property values will depress because of this. This is a violation wether a commission is received or not.

commercial propertyA real estate specialty. Commercial property includes:

Office buildings, Retail Stores, gas stations TownhouseOwners own dwelling and the land, may share common elements and walls. Key difference is the LAND conveyance that differentiates a townhouse from a condo Equal Credit Opportunity Act (ECOA)A federal act, which prohibits discrimination by lenders on the basis of sex or marital status in any aspect of a credit transaction. Or any member of a protected class.The canons of Professional Ethics and Conduct A code of ethics established by the Texas Real Estate Commission (TREC) and published in its rules. Required for all licenses holders to follow; Chapter 531 of the Texas Administrative Code TRELA stands forTexas Real Estate License Act Agent LiabilityLicense holders must disclose ALL material defects that they are AWARE of regarding the property and it's condition.An agent is not held liable unless they could have known it was false or misleading information.situsDesirability of a location. Economic preference for a location.TREC's Canons of professional Ethics and Conduct Rules for conduct of license holders they include rules

regarding:1. Fidelity2. Integrity3. Competency4. Consumer

Information5. Discriminatory Practices6. Information about brokerage services Real Propertyincludes the real estate and the bundle of rights.PrincipalAn individual who authorizes an agent to represent their interest in a real estate transaction (buyer, seller, landlord, tenant) fraudintentional deception resulting in injury to another person The National Association of Realtors Code of ethicsEnforced by NAR and required for all realtors to follow

AssesmentsRegular fees for the maintenance of community areas, roads, structural repairs for condominium and cooperative owners

Legal description of property3 methods of describing real estate:-metes and

bounds-rectangular survey system-Recorded plat (lot and block) Universal agencyagent is authorized to handle all of the principal's business under a power of attorney; real estate firm will rarely be one single-family homeStandalone house - owner own the home and land.FixturePersonal property that becomes real estate because it has been attached in a permanent way to the real

estate.Fixture examples:garage door openers, chandeliers,

ceiling fans Error and Omissions insuranceProtects you in a lawsuit in the event there were damages you were unaware of and the client decides to take you to court.

Industrial propertyIncludes commercial property used for: manufacturing,

storage, distribution centers, research, warehousing Fidicuary Duties = OLD CARObedienceLoyaltyDisclosureConfidentialityAccountingReas onable Care Home Mortgage Disclosure ActThis requires banks to record/report data on home lending in order to ID possible discriminatory patterns.How is an agency relationship created?An agency is created by an agreement (consent) of the parties where the principal has capacity to consent. The agent is a representative of the seller, buyer, landlord, or tenant.Fair Housing ActEqual access to housing opportunities for those of a protected class Who does NOT need a real estate license? New home builders, attorneys, people who are selling or renting their own home, employees selling or renting for their employer unconscionable actionTake advantage of the lack of knowledge, ability, experience, or capacity of a person to a grossly unfair degree.LandTract of earth that includes ownership of the surface, subsurface, and air rights What 3 qualities best define a REALTOR?The term REALTOR® has come to connote competency,

fairness, and high integrity.-How to display competency:

Perform your duties as a real estate professional with

expertise.-How to display fairness: Be fair and considerate

in your dealings with others at all times.-How to display

integrity: Always behave ethically in a manner consistent

with the NAR Code of Ethics, as well as any laws and Rules of the Commission (TREC).

Article 12 in the NAR code of ethicsWhen a realtor writes copy they are required to put the word REALTOR® in the ad somewhere.Indestructibility(Physical durability) Land is permanent. It can not be destroyed.Real estateland and anything that is attached to it CondominiumOwner owns the unit, shares the amenities, does not own land Texas Department of Housing and Community Affairs Three major functions of the Texas Department of Housing

and community affairs:- Develop affordable housing-

regulate properties qualifying as affordable- set and enforce standards on property maintenance for affordable housing NAR Code ContentA higher standard than the law requires. Document was first established in 1913 and is updates annually.Code

content:- the first 9 articles are Duties to Clients and

customers-articles 10- 14 are Duties to the Publicarticles 15-17 are Duties to REALTORS TimeshareMultiple owners safe ownership and take turns in using the property

ImprovementsPermanent human- made addition. Ex: fence, deck, raods

Fair Housing act exemptions-Religious organization exemption-Private club exemption-Housing for older persons exemption :: to qualify there needs to be at least 80% of the communities and habitants must be 55 and older.-Drug use record exemptions:: a landlord can decide not to lease to a tenant has been convicted of using or selling illegal drugs.-Owner only transaction exemption:: an owner can sell their home or rent units if they personally dwell in the unit What is TRELA?TRELA is one part of the Texas Occupations code. Chapter 1101 pertains to real estate agents and brokers, Chapter 1102 pertains to inspectors.Homestead RightsProtection of a primary home against certain creditors Law of Agencythe legal relationship formed between two people when one person agrees to perform work for another person.Article 16 (NAR)If someone already has an exclusive representation agreement with another REALTOR®do not influence its termination.Realtors® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other Realtors® have with clients Real Estate Law basisAll RE law begins with the constitution. First with the U.S.constitution and then by state constitution.Intermediary brokerTwo parties are being represented by the same broker.**broker must have permission from BOTH parties.