Champions Real Estate - Principles 1 Exam Questions With 100% Correct Answers!!

brokerage - the aspect of the real estate business that pertains to overseeing the needs of the parties and completing a transaction; a brokerage transaction may or may not involve agency relationships The role of a property manager - Generally responsible for the day to day operations of the property, maintenance, and tenant relations How are home inspectors licensed? - Home inspectors are licensed in Texas by TREC. Real Estate Development - most often involves the acquisition of land for development into residential subdivisions, retail centers and other commercial uses. National Association of Realtors (NAR) - the nationwide association is divided into state associations, and further divided into local associations or boards. The local associations or boards operate the MLS in markets throughout the US. The benefits of home ownership include: - Pride of Ownership, Occupancy, Tax Benefits, Investment, Security: POOTIS=m Physical Characteristics of Land: Indestructibility - Indestructibility refers to the fact that land cannot be destroyed. The other two characteristics are immobility and non-homogeneity (uniqueness) Demand for real estate is affected by: - 1. Growth in employment 2. Personal preference 3. Availability of credit as well as transportation systems and Federal government policyCommon Law vs. Statutory Law - Common Law was developed in England and based on common sense and local custom; under this system, a court looks to the findings of prior courts when rendering a decision Statutory law is enacted by federal and state legislative bodies What is the purpose of the Texas Real Estate Licensing Act (TRELA 1939)? - The purpose of TRELA is to protect the public against unscrupulous brokers and sales agents. What is TREC (1949)? - TREC was created by the state legislature in 1949. It has 9 members who carry out the provisions in TRELA. TREC has been granted powers by the Legislature to: - -File actions against a license holder on its own notion -Assess admin. penalties of up to $5k per day against offending licensed and unlicensed officials -Promulgate forms which are mandatory for license holders - Suspend or revoke licenses of violators -Subpoena books, records, witnesses and file suit with the AG to enforce subpoena as well as issue licenses, enact rules and regulations, place a license holder on probation, require education Land - the surface of the earth extending downward to the center of the earth and upwards above the surface extending to infinity; includes trees, crops and water Rights to land are considered "severable"... - the ability for different individuals to own the different rights of the same piece of land Surface Rights - The owner of surface rights has the ability to develop (improve) the surface, and to use resources extracted from or near the surface including stone, gravel, water, and limestone.Improvements are: - any man-made addition to the land that is permanent and considered to become part of the land Personal Property - things of a temporary or movable nature that are not part of the real property; known as personalty or chattel. If personal property is being transferred with real property, a bill of sale is used to accomplish the transfer Fixtures are: - Personal property that has become attached to the land. The process of attaching personal property so that it becomes real property is called: - Annexation Severance - removing fixtures to create personal property The courts apply 3 tests to determine if something is a fixture. These include: - 1. The intention of the parties when the item was installed 2. The method of attachment and adaptation of the property Emblements - Annual crops; considered personal property and may be harvested by the owner of the crop; ensures that the tenant will be allowed to harvest even if they lose possession of the property prior to harvest time Rights that are associated with ownership of real property are referred to as the owner's: - Bundle of rights ad valorem tax - A tax levied according to value, generally used to refer to real estate tax. Property taxes create the highest priority lien against real property _________ is considered to be the best type of ownership as it places the least number of limitations and most rights on the owner - Fee simple absolute ownership or fee simple ownershipCategories of Leasehold Estates - 1. Estate (tenancy) for years: any lease with a specific starting and ending date 2. Periodic tenancy or estate: automatically renews itself for like periods for an undetermined period of time with no preset termination date, i.e month-to-month or week-to-week 3. Estate-at-will: "whatever"; loose agreement where the tenant or landlord may agree to terminate the lease at any time. THIS IS THE ONLY LEASE EASILY TERMINATED BY THE DEATH OF THE LANDLORD. 4. Tenancy at sufferance: occurs when a lease expires and the tenant remains on the property