Champion School of Real Estate-Law of Contracts 100% Solved

Texas Real Estate Commission - ANSWER TREC-created by the Legislature in 1949. 9 member commission whose primary purpose is to carry out the provision of the License Act Real Estate Recovery Trust Account - ANSWER administered by TREC. the purpose of the account is to protect aggrieved individuals who suffer monetary loss due to illegal acts of license holders unlawful practice of law - ANSWER license holder is not qualified to add provisions to contracts that go beyond factual business details. Promulgated Forms - ANSWER residential contract forms that are mandatory for license holder Deceptive trade practices Act - ANSWER Texas law that applies to trade and commerce that was passed in 1973. Part of the Texas Business and Commerce code Land - ANSWER surface of the earth extending downward to the center and upward above the surface to infinity Real Estate - ANSWER all that encompassed in land with the addition of all man-made additions to the land (improvements) Real Property - ANSWER goes beyond physical real estate and includes the rights that a person has in the land. Bundle of Rights - ANSWER rights that a person has in the land severable - ANSWER different rights can be separate Surface Rights - ANSWER the ability to develop the surface and to use resources extracted from or near the surface Subsurface Rights - ANSWER rights to oil, gas and minerals, are commonly conveyed through a lease, mineral deed or reservation Air Rights - ANSWER extend above the surface without limitations improvements - ANSWER man-made additions to the land that is permanent and is considered to become part of the land personalty/chattel - ANSWER personal property bill of sale - ANSWER used to accomplish the transfer of personal property, accompanies the deed Fixture - ANSWER personal property that has become attached to the land annexation - ANSWER personal property that becomes real property severance - ANSWER removing fixtures to become personal property Physical Characteristics of Land - ANSWER Indestructibility-cannot be destroyed Immobility-cannot be moved Non-homogeneity-no two parcels are the same Economic Characteristics of Land - ANSWER 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 Estate in Severalty - ANSWER ownership by one individiual Co-Ownership - ANSWER ownership by two or more Trust - ANSWER ownership conveyed to a trustee for the benefit of others tenancy in common - ANSWER ownership by 2 or more with undivided interests Partition - ANSWER own a distinct tract of land Joint Tenacy - ANSWER type of co-ownership with the right of surviorship Right of surviorship - ANSWER when joint tenant dies right of property are equally divided among surviving owners community property - ANSWER marriage is regarded as a partnership rather than husband and wife become one. separate property - ANSWER property owned by a married person that is not community property steering/channeling - ANSWER taking buyers or renters to or away from a particular area based on the race, religion, etc, of the buyer or renter. Blockbusting/panic peddling - ANSWER attempt to induce panic selling in a neighborhood for financial gain. Contract - ANSWER an agreement between 2 or more parties to do something or to refrain from doing something. implied contract - ANSWER an agreement created by our behavior express contract - ANSWER an agreement through negotiation of an agree price and terms between parties bilateral contract - ANSWER contract of sale between a buyer and seller Option - ANSWER an agreement between a buyer and a seller Elements of a valid and enforceable contract - ANSWER Competent Parties Offer and acceptance (mutual consent) Legal Purpose In writing Consideration Executory Contract - ANSWER once the terms of an offer have been agreed upon and signed by the parties and acceptance communicated the contract becomes binding assignment - ANSWER transfers all rights related to the contract to another party allodial system - ANSWER privately owned land by individuals Police Power - ANSWER the right of government to regulate and control the way land is used zoning - ANSWER example of police power variance - ANSWER permission to violate the rules buffer zone - ANSWER area of land separating one land use from another building codes - ANSWER all residential structures must conform to code eminent domain - ANSWER the right of the government to take private land for public use condemnation - ANSWER the action of taking land for public use taxation - ANSWER the right of the government to tax real property assessed value - ANSWER property value for tax purposes escheat - ANSWER if a person dies intestate and without heirs the government will take title to his real property freehold estate - ANSWER when an individual owns real property bundle of rights - ANSWER rights associated with ownership of real property: control sell exclusion lease develop mortgage posses Fee simple absolute - ANSWER least number of limitation on the owner conditional, defeasible or determinal fee - ANSWER ownership that could be voided if a condition is not met life estate - ANSWER ownership for the duration of someone's life life tenant - ANSWER owner of a life estate statutory estates - ANSWER created by statute or law community property homestead dower and curtsey tenancy by the entirety homestead - ANSWER primary residence will be exempt from the claims of certain creditors dower and curtsey - ANSWER based on English law dower is the interest a wife has in the property of her husband; curtsey is the interest a husband has in the property of his wife lien - ANSWER claim against property encumberance - ANSWER a lien easement - ANSWER gives one the right to use or pass over another's property for a specific purpose Discharge of Contracts - ANSWER a contract is considered discharged when: all parties have performed a change in law that makes performance illegal destruction of property Listing agreements - ANSWER is an employment agreement between the seller and the broker elements of a listing agreement - ANSWER 1. Agency Relationship 2.Brokerage Fees 3. Property condition 4. Relationship with buyers 5. Market value of the property being listed 6. local market condition a listing agreement should provide the broker to - ANSWER 1. permission to place a sign on the property 2. permission to place a lock box on the property 3. permission to advertise the property on the Internet 4. other provisions regarding showing times and instructions Types of listing agreements - ANSWER 1. Exclusive right to sell 2. Exclusive agency 3. open listing 4. Net Listing Exclusive Right to sell - ANSWER grants an exclusive right to sell the property during the listing term, commission is paid even if the property is sold by the owner Exclusive agency - ANSWER seller agrees to list the property with only one broker during the listing term with the provision the seller can sell the property himself without payment of commission Open Listing - ANSWER gives the seller the right to list the property with mul