Unit 2: Basics of Real Estate Law Flashcards

Unit 2: Basics of Real Estate Law Flashcards

With community property, which of the following is FALSE?Title can be conveyed by one party without the approval of the other party.Which act stipulates that if the seller is a foreign person, the buyer must withhold 15% of the sales proceeds and pay that amount to the IRS?Foreign Investment in Real Property Tax Act (FIRPTA) Which act is administered by the CFPB and was designed to expand consumer access to credit, enhance the accuracy of consumers' financial information, and help fight identity theft?Fair and Accurate Credit Transactions Act A couple just built a 3,000 square foot home in a brand new subdivision. They have recently found out that a toxic waste dump is being built half a mile away. Typically this will decrease their home's value.The term nonhomogeneity refers tothe fact that no two parcels of land are alike.Which of these is authorized to pass rules to interpret, define, and enforce the act's provisions, and includes the authority to promulgate contracts for required use by license holders?Texas Real Estate Commission (TREC) An owner purchased an interest in a beachfront property.The owner is entitled to the right of possession only between July 6 and August 10 of each year. Which of the following is most likely the type of ownership that has been purchased?Time-share Trade fixtures are usually installed bythe tenant of the property.Which of the following is not a form of co-ownership?Ownership in severalty A corporation is a legal entity (an artificial person), according to state law. Property owned by the corporation is owned in severalty Which of the following could not be held as separate property after marriage?Personal property acquired by a spouse after marriage What type of association allows all the partners the ability to participate in the operation and management of the business?The answer is general partnership. A partnership is an association of two or more persons who carry on a business for profit as co-owners. In a general partnership, all the partners participate in the operation and management of the business and share full liability for business losses and obligations.A married couple could hold title by which of the following means?The answer is community property. Community property is co-ownership by married couples. All other answers are made up answers.Which of the following would be regarded as personal property?Portable barbeque

The bundle of legal rights includes all of the following

EXCEPT

the right to cultivate any plant.Which act created the Consumer Financial Protection Bureau (CFPB), an independent agency within the Federal Reserve Board, with oversight authority over many of the major federal financial consumer protection laws?The Dodd-Frank Act Which act prohibits lenders from discriminating against credit applicants?Equal Credit Opportunity Act (ECOA) John and Susan are looking to purchase a new home.They have found one that they really like north of the freeway. It costs more than the homes south of the freeway, though appears to be in a similar type of neighborhood. John and Susan like the north side of the freeway better than the south side of the freeway. They would be purchasing this home based on its location What type of business association allows some members to participate in decision making while others are prohibited?Limited partnership Which of the following may be leased?The air rights Which of the following is personal property? The answer is emblements. Annually cultivated crops, such as fruit, vegetables, and grain, are called emblements and are generally considered personal property. Vineyards and orchards generally yield perennial crops and are considered real property.Three people were concurrent owners of a parcel of real estate. When one owner died, her interest, according to her will, became part of her estate. The deceased was a The answer is tenant in common. Tenants in common do not have the right of survivorship, so their interests are passed on to their heirs through probate.Which EPA-approved pamphlet must sellers and landlords provide to prospective buyers or tenants?Protect Your Family from Lead in Your Home In a tenant-occupied and -furnished property being used as a produce shop, a free-standing refrigerator would be considered personal property.Which of the following is most likely evidence of ownership in a cooperative?Shareholder's stock Which of the following is considered an improvement?The answer is sewer. It is an infrastructure added to the land. An improvement is anything that is added as a fixture to the land.The individual unit owners of a condominium also own a specified share of the undivided interest in the remainder of the building and land called common elements.Which of the following is TRUE regarding community property rights?Any property acquired during a marriage is considered to be obtained by mutual effort A legal test of a fixture isMethod of annexationAdaptablity of the item for the lands ordinary useRelationship of the partiesIntention of the person in placing the item on the landAgreement of the

parties An LLC is a form of business organization that combines the most attractive features of limited partnerships and corporations.

The unities of possession, interest, time, and title are associated with which of the following?Joint tenancy The death of one of the directors of a corporationdoes not affect title to property owned by the corporation.Which of the following laws in Texas govern condominiums?The answer is Uniform Condominium Act. The condominium form of ownership has become increasingly popular throughout the United States. Condominium laws, often called horizontal property acts, have been enacted in every state (in Texas, this is the Uniform Condominium Act, which is Chapter 82 of the Texas Property Code).Which act requires that a licensed or certified appraiser perform any appraisal used in connection with a federally related transaction of $250,000 and above?The answer is Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA). Federally related transactions are real estate financial transactions that require the services of an appraiser and ones in which a federal financial institution, regulatory agency, or secondary market participant engages.Which act requires escrow agents, title companies, and other persons involved in real estate closings and settlements to establish anti-money-laundering policies and procedures?The answer is USA PATRIOT Act. The USA PATRIOT Act is an acronym for Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism. The USA PATRIOT Act was passed by Congress as a response to the terrorist attacks of September 11, 2001.Personal property is conveyed byThe answer is a bill of sale. Real property is conveyed by deed while personal property is conveyed by a bill of sale.A title shows ownership. An affidavit of title is a sworn statement about the title.An example of an appurtenance isan easement.