Principles 1 Real Estate Champion School Questions and Answers Already Passed

Principles 1 Real Estate Champion School Questions and Answers Already Passed 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