Real Estate - Section 1 Summary Review Flashcards

Real Estate - Section 1 Summary Review Flashcards

Real Estate LawThe basis of all real estate law starts with the constitutions:

the U.S. Constitution and state constitutions. Within these constitutions are laws that affect not only how we practice real estate, such as the fair housing laws, but also the rights held by property owners, such as homestead and community property laws.Why does TREC issue an inactive license? a sales agent or certificate applicant completes all necessary requirements for licensure but has no sponsoring broker Who can the title of REALTOR® be used by? license holders who are members of the National Association of REALTORS®.There is a common misconception people have about the label "realtor." The term technically ONLY refers to people who are members of NAR. You can be a licensed real estate agent or broker without joining NAR, but to be a called a REALTOR®, you have to be a member.What is the Role of Professional Organizations? provide education and guidance that benefits their members.When are agents required to disclose relevant agency relationships to third parties?Upon first contactOral disclosure is acceptable at initial contact, but written disclosure is required once substantive dialogue occurs.General AgencyGives agents more power as the principal holds more responsibility for the actions of their agent.Principal is responsible and beholden to their agent's actions.They may perform more actions and do NOT need explicit permission for all of their actions.What is a fixture?chattel attached to real estate. It refers to an object that was once personal property, but which has now been firmly attached to the land in such a way that it becomes part of

the real estate.Examples:ElevatorsCentral air conditioning

unitsGarage door openersChandeliersCeiling fansLight fixtures Home Mortgage Disclosure ActThis requires banks to record/report data on home lending in order to ID possible discriminatory patterns.Requires lenders to disclose specific lending information, which HUD then uses to map lending patterns.What is personal property?all property that is not real estate. It is unattached and moveable. Personal property is sometimes also called personalty or chattel.Don't DiscriminateThe Texas Real Estate License Act (TRELA) states that license holders cannot discriminate, "against an owner,

potential buyer, landlord, or potential tenant on the basis of race, color, religion, sex, disability, familial status, national origin, or ancestry, including directing a prospective buyer or tenant interested in equivalent properties to a different area based on the race, color, religion, sex, disability, familial status, national origin, or ancestry of the potential owner or tenant."racecolorreligionsexdisabilityfamilial statusnational originancestry

Trade FixturesPersonal property that is owned by and needed for a tenant's business. For example, shelves that a store owner attaches to the wall when leasing a storefront in a strip mall. It is not subject to the same rules of transfer as fixtures in general.Who should you disclose to at first contact? Everyone, including: visitors at an open house, the sellers who are at the home when the agent is showing the property, or another agent they make contact with to set up an appointment or get information.Texas Occupations CodeThe Real Estate License Act is Chapters 1101 and 1102 of the Texas Occupations Code.Chapter 1101 pertains to real estate brokers and sales agents and Chapter 1102 pertains to real estate inspectors.What are the types of Homeownership?- Single-Family Home- Condominium- Cooperative-Townhouse-Planned Unit Development

(PUD)-Multi-family Homes:-Timeshare

Taxpayer Relief Act of 1997married homeowners who file jointly are exempt from paying capital gains taxes on a profit of up to $500,000 realized from the sale of their primary residence.A single homeowner is exempt from paying capital gains taxes on up to $250,000 of realized profit from the sale of their primary residence.This exemption can be used every two years and the homeowner must have occupied the property as their primary residence for at least TWO of the previous five years.What would put a license holder at risk of losing their license?

If they:-Accept, receive, or charge an undisclosed

commission, rebate, or direct profit on an expenditure made for a principal-Solicit, sell, or offer for sale real property by means of a lottery or a deceptive practice-Act in a dual capacity as broker and undisclosed principal in a real estate transaction-Guarantee that future profits will result from a resale of real property Accountingagents must account for all funds entrusted to them.License holders may not use a client's funds as their personal funds, nor can they store them in the same account.Mixing a client's funds with an agent's personal funds is known as commingling and is illegal.Special AgencySPECIAL = SPECIFICBroker + seller client = special agency.In a special agency relationship, the client grants their agent the authority to act on their behalf for specific actions. Specific actions such as...-Listing their home on the MLS-Representing their interests as a buyer at an open house What are the 3 Agency Classifications?Special Agency (broker-client)General Agency (sales agent-broker)Universal Agency (child-parent and executor

of a will)