Principles 1 Real Estate Champion school| 60 questions and answers.

What are the 4 economic Characteristics of land 1,Scarcity, 2, Modification, 3,Fixity 4, Situs Scarcity Supply and demand, When there is shortage of something that and individual wants the price goes up. Situs The location of the property or land from an economic not geographic viewpoint. Preference people have based on location. Location Location Location.... Ad Valorem Taxes Taxes on real properties (according to value) TRELA Texas Real Estate License Act The purpose is to protect the public against unscrupulous brokers. TREC Texas Real Estate Commission Created in 1949 Can assess administrative penalties of up to $5000 per day against offending licensed and unlicensed individuals Improvement Any man made addition to the land that is permanent and is considered to become part of the land. Building, landscaping, fences, patios ect... Fixture Personal property that has become attached to the land in such a way as to become real property Severance Removing fixtures by detaching them from real property or uninstalling them (should be removed prior to listing)..or 'does not convey' Intention of the Parties When an item was installed .. most important test Method of Attachment How the item was attached to the property Adaptation to the property How the item fits the property Emblements Annual crops produced with labor Even though attached to the land the crop is personal property. Tenant will still be allowed to harvest annual crop even if not in possession of the land Townhomes Sold as distinct living unit individual lot share common walls. Owner of the townhome owns the property beneath the structure. Homeowners Insurance A contract between the insurance company and policyholder protection fire, wind, hail, theft, flood, vandalism, loss or damage to contents, and personal liability (Hazards such as flood or windstorms are additional) Factors that affect insurance premiums 1;Age and Condition 2; The home replacement cost 3; Location 4; Availability of local fire protection 5; The policy claims history 6; The policyholder credit score Agency An agency relationship exists when one person (the agent) acts for, or on-behalf of another person (the principal is known as the client). The principal is one who hires the agent and gives authority to the agent. This relationship is a fiduciary (trust) relationship Universal Agency Has full authority to conduct business on behalf of the client. (power of Attorney General Agency Broker has agents that work for them. A general agent may bind the principal, meaning that the agent may sign certain contracts and agreements in the name of the principal. Agent can sign for the broker Special Agency (Most Limited) known as the 'limited agency'. The special agent is NOT able to bind the principal because they are not allowed to sign or accept any terms or conditions on behalf of the principal. A broker who sells directly w/ a client (no agent under the broker). The listing agreement establishes a special agency relationship between the broker and seller Agent Duties Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care (OLD CAR) Trust Not A DUTY Customer When a potential buyer contacts an agent for information regarding a property Client An agreement with broker and agency Intermediary Relationships Broker reps both the buyer and seller Broker remains neutral and avoids negotiating. The broker must first get written consent of both parties Intermediary with appointments The appointed associate will give advice and opinion (which means negotiate) to their respective parties. The broker must make the appointments in writing using the Intermediary Relationship Notice Intermediary without appointments Agent will have the opportunity to sell their own listing Disclosure of Representation At first contact with a party to a potential transaction a license holder must disclose to that party whom they represent (orally or in writing at 1st contact) IABS (Information about Brokerage Services) Provides customers with information regarding agency relationships with licensees. All potential parties to a transaction must be provided with the IABS at the first substantive (any information given that is not easily accessed by public records) discussion. A substantive discussion doesn't always occur at the first face-to-face meeting. Form is signed prior to listing or showing of properties Federal Fair Housing Laws Housing should be available to all on an equal basis, subject only to the purchaser's ability to pay (Age is not a protected category under this law) Steering (channeling) Taking buyers or renters to or away from a particular area based on the race, religion, etc. of the buyer or renter (most common complaint under law) Blockbusting (panic peddling) Any attempt to induce panic selling in a neighborhood for financial gain Reasonable Accommodation Landlord must make reasonable accommodation and service if necessary If an individual feels they have been discriminated against they may file a complaint but it must be filed within 2 years of the alleged act. Violation is a CIVIL offense VAMA (Voluntary Affirmative Marketing Agreement) Sign Place the equal housing sign in the office window Having and adhering to standard office procedures for working with customers Holding regular meetings on fair housing practices Federal Fair Housing Laws (civil right act) Penalties Violation are up to 75,000 for 1st and up to 150,000 for 2nd. Americans with Disabilities Act (ADA) Removal of all barriers, and install of ramps, cut curbs, repositioned shelves, flashing alarm lights, marked elevator buttons, wider doors, levered door handles, etc.