Aceable Agent Texas Real Estate Principles I questions and answers

Broker's Price Opinion (BPO) A broker's price opinion is the process used by a hired sales agent to determine the potential selling price or estimated value of a real estate property Closing The completion of a real estate transaction in which the buyer receives ownership and the seller receives the contract amount Comparative Market Analysis (CMA) A report comparing the prices of sold homes that are similar to the subject property (called comparables), created by a license holder to help the seller or buyer determine the market value Seller's Market a market condition in which the number of properties for sale does not meet the demand (number of people looking to buy) Buyer's Market relatively low demand for real estate in the area (it will take 6 months or more to sell a house) Agent A person who acts on behalf of someone else Seller's Disclosure Notice A document filled out by the seller concerning any defects in the improvements on the property Subagent A license holder from one office who represents the seller through cooperation with the listing broker of another company Material Fact Any fact that is significant or essential to the transaction Principle the individual who authorizes another person to act on their behalf Intermediary Relationships occur when the same real estate office is representing both the seller and the buyer as clients in the same transaction Third Party the individual with whom the agent and principal enter into real estate negotiations. The third party is also sometimes referred to as the customer Agency Relationship Disclosure Agency relationships should be disclosed at first contact Community Reinvestment Act Helps commercial banks and savings associations meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods Redlining The illegal act of a lender denying mortgages in certain areas of town Home Mortgage Disclosure Federal act that requires lenders to disclose specific lending information, which HUD then uses to map lending patterns Texas Real Estate License Act (TRELA) A law that governs the licensing, education, and activities of real estate license holders practicing brokerage in this state Texas Real Estate Commission (TREC) A group of nine people appointed by the governor and confirmed by the state senate that are to set policy and rules from the real estate license act Texas Occupation Code The Texas Real Estate License Act is Chapter 1101 of the: TREC's purpose oversee the licensing, education requirements, and ethical standards of practice for real estate sales professionals and real estate inspectors within the State of Texas TREC's authority adopt and enforce rules for governing real estate practitioners. Chapter 1101 The law which imposes a code of ethics and standard of conduct on members of the commission Commisioners responsible for informing employees of their conduct expectations and responsibilities Annually How often will real estate professionals be formally evaluated in the workplace? Bilateral Contract An agreement in which both parties give consideration and promise to perform the actions specified in a contract Unilateral Contract An agreement in which one party promises to perform and the other party accepts this promise, requiring only one party to act Executed Contract a contract that has been fully performed on both sides Executory Contract A contract that is not completely executed or performed Addenda Documents containing additional terms, information, or obligations that are attached to a contract Four Corners Doctrine A legal concept stating that the court can only consider information that appears within the four corners of the documents Amendment Changes or makes modifications to an already agreed upon contract Approved Promulgated Agency Relationship Forms TREC has chosen not to create contracts that establish agency relationships TAR other than your brokerage, you can get legal buyer representation forms from An Attorney may also create a buyer representation form on behalf of the property owner One to Four Family Residential Contract the standard contract form and is used for the sale of single-family residential properties lease with option to buy a contract in which the buyer can lease a property for a period of time (usually a year) and then have an option to buy the property at the end of the lease period right of first refusal an agreement with an owner in which they would have the opportunity to buy the property before any other buyers' offers are considered