Texas Real Estate State Exam Questions and Answers well Explained Latest 2024/2025 Update 100% Correct.

Federal interstate land sells Full Disclosure Act - applies to all unimproved land sold interstate. If a buyer or tenant does not receive this report before signing, he may void his contract or lease Appraisers Principles to Value (9) - Highest and Best use, Principle of Substitution, Principle of Conformity, Principle of Increasing and Decreasing Returns, Principle of Contribution, The Principle of Regression, The principle of Competition, The Principle of Change, The Principle of Anticipation 4 Characteristics of Value (DUST) - Demand, Utility,Scarcity,Transferability 4 leasehold estates - Estate for years, periodic Tenancy, Estate at will, tenancy at sufferance Abstract of title - complete history of all recorded events affecting the title Acceleration Clause - in the state of default whole amt of principal is due Accesion - Acquiring trade fixtures by non removal prior to termination of lease Acre - 43,560 square feet Adverse Possession (Squatters rights) - occurs when property is acquired from the rightful owner through the State of Limitations Agents duties (OLD CAR) - Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care *Trust is not a duty Alienation Clause - Due on sale clause states balance is due if sold w/o mortgagee's approvalAnnexation - Process of attaching personal property to real property making it a fixture Appraisers - must follow USPAP (Uniform standards of Professional Appraisal Practice) some lenders require Fannie Mae appraisal Assemblage or plottage - combining several parcels of land into one Assessed Value - value of property for tax purposes Assumption clause - if loan is assumed new buyers obligated to pay off loan Bilateral contract - exchange promises which binds two birds ex sales contract Blanket loan - Covers one than one piece of property Blockbusting - panic selling Broker Lawyer Committee - writes promulgated contracts 13 members 6 are brokers 6 lawyers and 1 public member Brokers edu requirements - 900 classroom hrs 30hrs in RE Brokerage 4yrs active sales licensee Budget loan - includes PITI examples are FHA,VA, and most amortized fixed rate loans are budget mortgages Buffer zone - area of land separating one land use for another CERCLA - passed 1980 est. superfund to clean up hazardous wasteChain of title - list of all owners of the property Chronological age - age of property in years CMA Comparative Market Analysis - a tool licensee use to determine price for their property using current listings,recent sales and expired listings Conforming loans - Loans qualified to be purchased in the secondary market Conversion - spending commingled funds Cost approach - also know as summation approach how much it would cost to reproduce or build examples are churches or govt buildings,new construction 3 Basic approaches to Appraisals - market data or sales comparison,income or capitalization method, and replacement cost or summation approach 3 types of depreciation in cost approach - Physical deterioration,Functional obsolescence, Economic obsolescence Deed of trust - Texas uses instead of traditional mtg contains "Power of Sale" Clause that allows for "Non-judicial foreclosure" quick foreclosure Defeasance clause - release of lein when debt is repaided Defeasible Fee, Conditional Fee, Qualified Fee, Qualified Defeasible Fee - ownership with conditions or terms which if violated could cause the ownership interest to be defeated or terminated. Deferred Maintenance - type of physical depreciation (ordinary wear and tear)Dual agency same as - Intermediary only a broker can be one easement - limited use or enjoyment of another's land written or verbal or implied Easement appurtenant - Dominant estate uses driveway of servient estate to access their property Easement in Gross - belongs to a person or corporation example would be utility easement easements can be terminated - merger of adjacent property, release, or abandonment ECOA Equal Credit Opportunity ACT - Lenders can deny traditional financing if income is commission based.Child support is most likely reason for denial. Effective date - contract is the date on which the last party signs Eminent Domain - The right of the government to take private property for public use through the action of condemnation encroachment - structure or improvements overlaps onto another's property Encumbrance - limitation on your rights. It may also called cloud on a title. Escalation Clause - allows lender to raise existing interest rate Escheat - Property reverts to the state dies with no will,no heirs, no kindred. Also property is abandoned Escrow acct - taxes and insurance placed also called impound, trust, or reserve acctEstate - interest in real property Estate at will - Lease can be terminated by either party at will without notice Estate for years - lease with specific starting and ending date EX.12 Month lease on a Apt.