Texas Real Estate Exam (National)
adverse possession - the transfer of title when a person develops legitimate ownership interests in
another person's property through an openly hostile and continuous occupation of the land
-when a property owner "sleeps on his rights"
2 closing processes - 1. the closing of the loan between the buyer and the lender
2. the closing on the property (execution of the sales contract)
abstract of title - complete history of all recorded events affecting title to the property
acceleration clause - in the event of default the whole amount of the principal becomes due and
payable
ad valorem tax lien - an involuntary, statutory, specific lien
Adjustable Rate Mortgage (ARM) - amortized loans where the interest rate changes or "adjusts" at
pre-determined periods, usually annually
-this loan is specifically tied to an economic indicator outside of the lender's control
administrator - the party appointed by the court to settle the estate of a deceased person who
died intestate
agency by ratification - when a principal agrees to an action that an agent has performed outside
of the scope of his or her authority
-it is risky to assume that a principal will ratify an action after the fact
agent's duties to a principal (OLD CAR) - -obedience
-loyalty
-disclosure
,-confidentiality
-accounting
-reasonable care
alteration - economic worth of land depends heavily on how it is developed, altered and modified
by building and other developments
amortized - paid off in portions over time
Annual Percentage Rate (APR) - tells the borrower the total cost of borrowing
-the effective rate of interest, what the borrower actually pays
-usually higher than the interest rate because it includes all charges, not just interest
antitrust laws - prohibit businesses from establishing groups or standards that interfere with
normal business competition
-enforced under the Sherman Antitrust Act
-most common antitrust violations in the real estate industry include price fixing, boycotting competitors
and allocating customers or markets
appraisal - an estimate of present value
-an opinion
-appraisers most often asked to determine market value
approaches to appraisal - -market or sales comparison approach
-income approach
-cost approach
appurtenances - all rights, privileges and improvements that are associated with the property and
are usually conveyed with the property by a deed
-examples: easements, water rights, parking spaces, improvements
, assignment - substitution of a new party in an existing contract
bargain and sale deed - a deed that offers no warranty against defects in the title or
encumbrances associated with the title
bilateral contract - an agreement where both parties give consideration and promise to perform
the actions specified in the contract
-an exchange of promises, binds each party
-i.e. sales contract
bill of sale - a written agreement used to sell, reassign or transfer one's right to, or interest in,
personal property
blanket mortgage - a mortgage on more than one property
blockbusting - panic selling
breach of contract - buyer's options - 1. rescind the contract
2. file a suit for specific performance
3. sue for compensatory damages
breach of contract - seller's options - 1. rescind the contract
2. declare the contract forfeited
3. sue for specific performance
4. sue for compensatory damages
broker duties to customers/third parties - -be honest
-treat all parties fairly
adverse possession - the transfer of title when a person develops legitimate ownership interests in
another person's property through an openly hostile and continuous occupation of the land
-when a property owner "sleeps on his rights"
2 closing processes - 1. the closing of the loan between the buyer and the lender
2. the closing on the property (execution of the sales contract)
abstract of title - complete history of all recorded events affecting title to the property
acceleration clause - in the event of default the whole amount of the principal becomes due and
payable
ad valorem tax lien - an involuntary, statutory, specific lien
Adjustable Rate Mortgage (ARM) - amortized loans where the interest rate changes or "adjusts" at
pre-determined periods, usually annually
-this loan is specifically tied to an economic indicator outside of the lender's control
administrator - the party appointed by the court to settle the estate of a deceased person who
died intestate
agency by ratification - when a principal agrees to an action that an agent has performed outside
of the scope of his or her authority
-it is risky to assume that a principal will ratify an action after the fact
agent's duties to a principal (OLD CAR) - -obedience
-loyalty
-disclosure
,-confidentiality
-accounting
-reasonable care
alteration - economic worth of land depends heavily on how it is developed, altered and modified
by building and other developments
amortized - paid off in portions over time
Annual Percentage Rate (APR) - tells the borrower the total cost of borrowing
-the effective rate of interest, what the borrower actually pays
-usually higher than the interest rate because it includes all charges, not just interest
antitrust laws - prohibit businesses from establishing groups or standards that interfere with
normal business competition
-enforced under the Sherman Antitrust Act
-most common antitrust violations in the real estate industry include price fixing, boycotting competitors
and allocating customers or markets
appraisal - an estimate of present value
-an opinion
-appraisers most often asked to determine market value
approaches to appraisal - -market or sales comparison approach
-income approach
-cost approach
appurtenances - all rights, privileges and improvements that are associated with the property and
are usually conveyed with the property by a deed
-examples: easements, water rights, parking spaces, improvements
, assignment - substitution of a new party in an existing contract
bargain and sale deed - a deed that offers no warranty against defects in the title or
encumbrances associated with the title
bilateral contract - an agreement where both parties give consideration and promise to perform
the actions specified in the contract
-an exchange of promises, binds each party
-i.e. sales contract
bill of sale - a written agreement used to sell, reassign or transfer one's right to, or interest in,
personal property
blanket mortgage - a mortgage on more than one property
blockbusting - panic selling
breach of contract - buyer's options - 1. rescind the contract
2. file a suit for specific performance
3. sue for compensatory damages
breach of contract - seller's options - 1. rescind the contract
2. declare the contract forfeited
3. sue for specific performance
4. sue for compensatory damages
broker duties to customers/third parties - -be honest
-treat all parties fairly
