Real Estate Express Texas Principles Exam With Complete Solution

What kind of professionals manage the legal aspects of a development project? - Answer Real Estate attorneys, title companies, surveyors, property insurance companies and government regulatory officials What types of professionals are involved in the transfer of rights and interest in Real Estate? - Answer Titles companies, Real Estate Brokers/ Sales Persons, Mortgage Brokers, Mortgage Bankers, Appraisers, Insurers Property is classified into what three types? - Answer Residential, Commercial, and Investment properties Real Estate Agents in Texas would benefit from belonging to which two trade organizations? - Answer NAR - National Association of Realtors Texas Assoc. of Realtors If a broker chooses to specialize by geographic area, how might the area be defined? - Answer Natural Barriers, Streets/ Highways, By a certain set of Sub Divisions What are some of the individual brokerage services that one might perform for a pre-set fee? - Answer Comparative price analysis, prospect screening, site analysis, Database search The laws most relevant to agents and brokers relate to what topics? - Answer Agency, Contracts, Disclosure, Environmental, Impact, Fair housing, What are the four sources of real estate law? - Answer FederalGovernment, State Government, Local Government, Courts Members of NAR (National Association of Realtors) Are Known as?? - Answer Realtors What are the two types of Real Estate Managers? - Answer Property Managers and Asset Managers Which action is often used to define specific aspects of newly created law? - Answer Court Decision Market Equilibrium: - Answer a market tends toward a state of equilibrium in which supply equals demand, and price, cost, and value are identical. Absorption - Answer the amount of available property that becomes occupied over a period of time. What is the definition of value as it applies to real estate? - Answer The present worth of future benefits that would be gained from owning real property How do elements of supply, demand and price interact in the market? - Answer In a continuous manner What type of Real Estate User would be interested in the level of trade area competition? - Answer Retail User If Price Decreases? - Answer Demand is declining in relation to supply Types of Real Estate Users - Answer Residential, Retail Industrial, office Residential User: Retail User: Office: Industrial User: - Answer 1) Quality of life, neighborhood, amenities,price 2) Trade, area, sales, competition 3)Efficiency, costs of Occupancy, Functionality 4) Labor pool, availability, supplies, Distribution Channels How Many members in TREC ( Texas Real Estate Commission) - Answer Nine members - six licensed brokers and 3 members of the public How long are the terms of TREC commission Members? - Answer Staggerd 6 Year Terms, How long does the term of a commission member last and when does a term expire? - Answer Commission members serve staggered six-year terms with the terms of three members expiring January 31 of each odd-numbered year. When will a court order a payment to an aggrieved party from the Recovery Fund? - Answer If a licensee cannot pay the full amount of the judgment ordered by the court, the party may apply to the court in which the judgment was rendered for an order to pay the balance due from the real estate recovery fund. Three parties that don't need a license to sell Real Estate - Answer Attorneys at law, An Auctioneer, Receivers/ trustees of Bankruptcy working under court order Which of these persons would need a real estate license? • A college graduate advertises he will sell properties of other students to raise tuition money for college. • A person receives and delivers a $500,000 deposit to her principal broker from a buyer. • A company vice president leases one of the company's warehouses to a storage firm - Answer A college graduate advertises he will sell properties of other students to raise tuition money for college. Which of these persons would need a real estate license? • A homeowner advertises to lease his improved basement to a college student. • A senior citizen charges an advance fee for referring an individual to her son who owns a leasing office in town. • An attorney licensed in Texas advises a client about how to minimize liability in an upcoming Texas real estate transaction. - Answer A senior citizen charges an advance fee for referring an individual to her son who owns a leasing office in town What is the experience requirement for an applicant for a broker's license? - Answer At least four years of active experience in Texas as a license holder during the 60 months preceding the date the application is filed How many members in TREC Commission? - Answer 9 board members: 6 members from real estate industry, 3 members from general public • Appointed by governor 6 year terms Payments from the Trust Account may not exceed? (For claims arising out of a single transaction)/ (Against a single Licensee) - Answer 50,000 and 100,000 broker - Answer an individual who performs certain real estate services for another party for compensation. The broker is The Education Standards advisory committee has how many members? - Answer 12, (appointed by the commission) Serve 2 year terms Payments from the trust account for claims based on judgements against a single licensee may not exceed a total of what amount? - Answer $100,000 A licensee applicant must provide fingerprints to the DPS within? - Answer 6 months of filing The TREC consists of? - Answer 9 members According to state law you need a real estate license if you.. - Answer If you buy/sell real estate on the behalf of others Land - Answer The legal concept of land encompasses: the surface area of the earth, everything beneath the surface of the earth extending downward to its center, all natural things permanently attached to the earth, the air above the surface of the earth extending outward to infinity Parcel or tract - Answer A portion of land delineated by boundaries is considered a parcel or tract. Lands 3 Physical characteristics - Answer immobility, indestructibility, and heterogeneity Real estate - Answer • land • all man-made structures that are "permanently" attached to the land Improvements - Answer permanently attached man-made structures to the land Property - Answer property is not only the item that is owned but also a set of rights to the item enjoyed by the owner. Real property: - Answer Real property is real estate and the bundle of rights associated with owning the real estate. Littoral rights - Answer these rights concern properties abutting bodies of water that are not moving, such as lakes and seas. Riparian rights: - Answer these rights concern properties abutting moving water such as streams and rivers. If a property abuts a stream or river, the owner's riparian rights are determined by whether the water is navigable or not navigable. Fixtures: - Answer Fixtures are real property converted from personal property by attachment to real estate. Trade Fixtures/Chattel Fixtures - Answer Trade fixtures are personal property items temporarily attached to real estate in order to conduct business. These items are designed to be removed at some point. Emblements - Answer Emblements are plants or crops considered personal property since human intervention is necessary for planting and harvesting. Conversion: - Answer Conversion is the act of transforming real to personal property through severance, or personal to real property through affixing. simple definition of real estate - Answer is that it is air, water, land, and everything affixed to the land. Real estate in the United States may be owned privately by individuals and private entities, or publicly by government entities. Private ownership rights in this country are not absolute. What does the legal concept of land encompass? - Answer the surface area of the earth • everything beneath the surface of the earth extending downward to its center • all natural things permanently attached to the earth • the air above the surface of the earth extending outward to infinity What are the three physical characteristics of land? - Answer immobility, indestructibility, and heterogeneity What does the legal concept of real estate encompass? - Answer land all man-made structures that are "permanently" attached to the land What are the two classifications of property? - Answer real property and personal property What are the four important rights associated with owning a parcel of real estate? - Answer Right to use ( Ex. Mine, Landscape, Build property) Right to transfer (Sell/ Lease) Right to encumber (Mortgage for debt) Right to exclude ( To keep others off) Land can be laterally divided into what classifications of rights? - Answer Surface rights Subsurface rights Air rights How are air rights delineated? - Answer By imaginary vertical lines extended to infinity What do water rights concern? - Answer The rights to own and use water found in lakes, streams, rivers, and the ocean Growing plants may be either real or personal property. How are they differentiated? - Answer Plants and crops that grow naturally, without requiring anyone's labor or machinery, are considered real property. Plants and crops requiring human intervention and labor are called emblements which, despite their attachment to land, are considered personal property. Which government entity is the primary regulatory entity of the real estate business? - Answer State government How is a trade fixture different from a fixture? - Answer A trade fixture has been temporarily affixed to a landlord's real property in order to conduct business and may be detached and removed before, or upon surrender, of the leased premises