Law of Contracts - Champions School of Real Estate |72 questions and answers

TERLA - Texas Real Estate License Act - Created in 1939 TREC - Texas Real Estate Commission - Created in 1949 to administer/enforce TERLA Real Estate Center - Located at Texas A&M University - Created in 1970 TREC-Promulgated Forms/Leases (Residential): - One-to-Four Family Residential Contract (Resale) - New Home Contract (Completed Construction) - Residential Condo Contract (Resale) - New Home Contract (Incomplete Construction) - Unimproved Property Contract - Farm and Ranch (Note: TREC has promulgated contract addenda and other forms, listed on Thepage 18) Four categories of unlawful trade practices are: 1 - Misleading or deceptive conduct employed by any person that was relied upon by the consumer to the consumer's detriment 2 - Breach of express or implied warranties 3 - Violation of the Texas Insurance Code (Chpt 51) 4 - An unconscionable action or course of action by any person Physical Characteristics of Land - Indestructibility: cannot be destroyed - Immobility: cannot be moved - Non-homogeneity: no two parcels are the same Economic Characteristics of Land - 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 Which of the following is a requirement for the Texas real estate sales agent license? 1 - College Degree 2 - 30 hours of Real Estate Principles only 3 - Show competency by passing the licensing exam 4 - Must be Texan by birth An active sales agent license may only be issued under __________. 1 - Court order 2 - The sponsorship of a licensed broker 3 - The supervision of a fellow sales agent 4 - The Deceptive Trade Practice Act A license holder must not prepare which of the following documents 1 - Option agreements 2 - Title commitments 3 - Wills 4 - A license holder must not prepare any of these documents Improvements - Any man-made additions to the land that are permanent Surface rights - The ability to use extracted resources such as stone, gravel, and limestone Subsurface rights - Includes the rights to deed oil, gas, and other minerals Personal property - Things of a temporary or movable nature Emblements - Annual crops that are considered personal property even though they are attached to the land Statutory law - the body of laws and regulations enacted by federal and state legislatures Bill of Sale - used to accomplish the transfer of personal property along with real property Fixture - personal property that has become attached to the land in such a way as to become real property Annexation - the process of attaching personal property so that it becomes real property Severance - removing fixtures to create personal property Trade Fixtures - items necessary for an individual to carry out his/her trade or profession In most states (including Texas), ownership of real estate can be held in three different ways: 1 - An estate in severalty involves ownership of real estate by one individual or entity 2 - Co-ownership involves ownership of real estate by two or more entities Ex 1. Tenancy in Common Ex. 2 Joint Tenancy 3 - A property may be placed in a trust, with ownership conveyed to a trustee for the benefit of others Syndicate - when two or more parties join together to create and operate a real estate investment Blockbusting - any attempt to induce panic selling in a neighborhood for financial gain Todd planted two live oaks and four magnolia trees on his 3 AC property. These trees are examples of - Improvements - Emblements - Fixtures - Personal property Patti, David, and Arthur inherited several acres from their parents. They each own a third of the estate. What type of ownership do the siblings have? - Joint tenancy - Estate in severalty - Tenancy in common - Community property If you hire a mold remediator, he must give you a(n) ______ no later than 10 days after work is complete - Certificate of Mold Remediation Implied Contract - a contract created by behavior Express Contract - A contract created by offer and acceptance Executory Contract - A contract that is binding on the parties even though certain contractual duties have not yet been performed Bilateral Contract - A contract created by offer and acceptance Valid Contract - A contract that must have competent parties, offer and acceptance, legal purpose, consideration, and be in writing Elements of a valid and enforceable contract 1 - Competent parties 2 - Offer and acceptance (mutual agreement) 3 - Legal purpose 4 - In writing (when required by law) 5 - Consideration Novation - occurs when anew contract is substituted1 for an existing one In order to comply with the ______, contracts for the conveyance of an interest in real estate or leases for a term of more than one year must be in writing - Statute of Frauds Broker Bernardo has signed a sales contract that has not yet gone to the closing table. Therefore, Bernardo has a(n) ______________ contract - Executory Bryan's client shows up to his closing after drinking three beers at a baseball game. Due to his consumption of alcohol, the closing cannot take place because Bryan's client is not legally __________ - Impaired Freehold estate - Occurs when an individual owns property Equitable estate - Rights or privileges in land that are less than ownership, but exist