Champion School of Real Estate-Law of Contracts UPDATED Exam Questions and CORRECT Answers

MGRADES EXAMS


Champion School of Real Estate-Law of
Contracts UPDATED Exam Questions and
CORRECT Answers
Texas Real Estate Commission - CORRECT ANSWER - TREC-created by the Legislature
in 1949. 9 member commission whose primary purpose is to carry out the provision of the
License Act


Real Estate Recovery Trust Account - CORRECT ANSWER - administered by TREC. the
purpose of the account is to protect aggrieved individuals who suffer monetary loss due to illegal
acts of license holders


unlawful practice of law - CORRECT ANSWER - license holder is not qualified to add
provisions to contracts that go beyond factual business details.


Promulgated Forms - CORRECT ANSWER - residential contract forms that are
mandatory for license holder


Deceptive trade practices Act - CORRECT ANSWER - Texas law that applies to trade and
commerce that was passed in 1973. Part of the Texas Business and Commerce code


Land - CORRECT ANSWER - surface of the earth extending downward to the center and
upward above the surface to infinity


Real Estate - CORRECT ANSWER - all that encompassed in land with the addition of all
man-made additions to the land (improvements)


Real Property - CORRECT ANSWER - goes beyond physical real estate and includes the
rights that a person has in the land.


Bundle of Rights - CORRECT ANSWER - rights that a person has in the land

,MGRADES EXAMS




severable - CORRECT ANSWER - different rights can be separate



Surface Rights - CORRECT ANSWER - the ability to develop the surface and to use
resources extracted from or near the surface


Subsurface Rights - CORRECT ANSWER - rights to oil, gas and minerals, are commonly
conveyed through a lease, mineral deed or reservation


Air Rights - CORRECT ANSWER - extend above the surface without limitations



improvements - CORRECT ANSWER - man-made additions to the land that is permanent
and is considered to become part of the land


personalty/chattel - CORRECT ANSWER - personal property



bill of sale - CORRECT ANSWER - used to accomplish the transfer of personal property,
accompanies the deed


Fixture - CORRECT ANSWER - personal property that has become attached to the land



annexation - CORRECT ANSWER - personal property that becomes real property



severance - CORRECT ANSWER - removing fixtures to become personal property



Physical Characteristics of Land - CORRECT ANSWER - Indestructibility-cannot be
destroyed
Immobility-cannot be moved
Non-homogeneity-no two parcels are the same

, MGRADES EXAMS




Economic Characteristics of Land - CORRECT ANSWER - Scarcity-supply and demand
Modification-value is affected by man made changes
Fixity-additions take long periods of time to pay
Situs-location, location, location


Estate in Severalty - CORRECT ANSWER - ownership by one individiual



Co-Ownership - CORRECT ANSWER - ownership by two or more



Trust - CORRECT ANSWER - ownership conveyed to a trustee for the benefit of others



tenancy in common - CORRECT ANSWER - ownership by 2 or more with undivided
interests


Partition - CORRECT ANSWER - own a distinct tract of land



Joint Tenacy - CORRECT ANSWER - type of co-ownership with the right of surviorship



Right of surviorship - CORRECT ANSWER - when joint tenant dies right of property are
equally divided among surviving owners


community property - CORRECT ANSWER - marriage is regarded as a partnership rather
than husband and wife become one.


separate property - CORRECT ANSWER - property owned by a married person that is not
community property