Real Estate Exam: Principles of Real Estate 1 Flashcards

(1) Real Estate Exam: Principles of Real Estate 1 Flashcards

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 Part divided by the % =total The type of ownership in which the person has the most rights is called fee simple TREC promulgated forms aremandatory for licensees When property has only one owner it is called severalty A contract that can be canceled by one of the parties is called voidable An easement can be terminated bymerger The pledge of real property as security for a debt is calleda mortgage 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 % x market value=Assessed value The law requiring real estate contracts to be in writing is called The Statute of Frauds When a lender collects principal, interest, taxes, and insurance (PITI) as part of a monthly payment, this is called a budget loan Contracts that are signed and carried out are calledexecuted

• acre= how many sq ft?43,560 sq. ft

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 The largest fine for any single violation of the Fair Housing Act is

$110,000

capitalization rate x market value=Net income A contract that meets all of the requirements of the law is called valid The document that is evidence of a borrower's promise to repay a loan is called a note The characteristics of value of land include demand, utility, scarcity, and transferability but not this...taxes % x total=Part Loans that meet FMNA guidelines are called conforming loans The Civil Rights Act of 1968 does NOT offer protection against discrimination based on...occupation tax rate x assessed value=Tax

The most common approach for the appraisal of residential properties is the Market Data Approach When the landlord pays all of the expenses of the property and then tenant pays only the rent, this is called a gross lease The major advantage of a Deed of Trust to a lender ispower of sale A mortgage becomes a lien when it isrecorded % x list price=Sales price When a grantor transfers a title but retains some rights it is called reservation Texas is a community property state. What is true about community property?Property inherited by one spouse can remain separate property of that spouse.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 A lease with a specific starting and ending date is calledan estate for years or tenancy for years.A property description that is considered an informal reference is a street address.Who promulgates real estate contract forms in Texas?The Broker Lawyer Committee Something of value given to one to induce another to enter into a contract is called consideration The duties of the agent includeloyalty commission rate x sales price=Commission Using the Cost Approach, the appraiser will calculateland value+ building replacement cost- depreciation % x original cost=Profit Property held by two or more owners with rights of survivorship is joint tenancy Which economic characteristic of land describes location preference from an economic point of view?situs Deeds require the signature ofthe grantor The deed that gives the buyer the greatest protection is called the general warranty deed When a buyer purchases a property and takes over the payments and liability on an existing loan it is called a straight assumption How long does a consumer have to file a complaint with TREC against a licensee?Four years Where do individuals go to borrow money? The Primary Market The purpose of the TRELA is to...protect the public against unscrupulous brokers and salespersons.When one of the parties of the contract dies, the contract is...binding on the heirs if possible What is often considered the most important test of a fixture?Intentions of the parties A loan that covers two or more pieces of property on one note is called a blanket loan

Which of the following is an example of an encroachment?The neighbor's fence is on your land.100% - commission rate x sales price=Seller's net Title to real property transfers whenthe deed is delivered The duties of the principal includeperformance 100% + appreciation % x original cost=Appreciated value When an agent has unlimited authority to act on behalf of the client it is called universal authority Higher value properties cause an increase in the value of the subject property is called Progression Inheritance of real property without a will is calledlaws of descent The highest priority lien against real property isproperty tax interest rate x loan amount=Yearly interest

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 Seller financing where the seller retains title until the final payment is called contract for deed qualifying ratio x gross monthly income= Monthly PITI A handwritten will is called aholographic will Regulates closings on 1-4 residential properties with federally related financing RESPA If the parties of a contract agree to terminate the contract, it is called mutual rescission When lower value properties in an area cause a decline in the value of the subject property this is called Regression Part divided by the total =% % x total area=Usable area What is a point?1% of the loan amount 100% - depreciation % x original cost=Depreciated value A complete history of the title of a piece of property is called an abstract