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Champions School of Real Estate: Principles 1 Exam
| Texas Real Estate, Including Property Ownership,
And Real Estate Law | Latest Version 2025 | Just
Released
What are the 4 economic Characteristics of land ---------CORRECT ANSWER---------- -------1,Scarcity, 2, Modification, 3,Fixity 4, Situs Scarcity ---------CORRECT ANSWER-----------------Supply and demand, When there is shortage of something that and individual wants the price goes up. Situs ---------CORRECT ANSWER-----------------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 ---------CORRECT ANSWER-----------------Taxes on real properties (according to value) TRELA Texas Real Estate License Act ---------CORRECT ANSWER-----------------The purpose is to protect the public against unscrupulous brokers.
TREC Texas Real Estate Commission ---------CORRECT ANSWER----------------- Created in 1949 Can assess administrative penalties of up to $5000 per day against offending licensed and unlicensed individuals Improvement ---------CORRECT ANSWER-----------------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 ---------CORRECT ANSWER-----------------Personal property that has become attached to the land in such a way as to become real property Severance ---------CORRECT ANSWER-----------------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 ---------CORRECT ANSWER-----------------When an item was installed .. most important test Method of Attachment ---------CORRECT ANSWER-----------------How the item was attached to the property
Agency ---------CORRECT ANSWER-----------------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 ---------CORRECT ANSWER-----------------Has full authority to conduct business on behalf of the client. (power of Attorney General Agency ---------CORRECT ANSWER-----------------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 Special Agency ---------CORRECT ANSWER-----------------(Most Limited) known as the 'limited agency'. The special agent is NOT able to bind the principal because they are not allowed to sign or accept any terms or conditions on behalf of the principal. A broker who sells directly w/ a client (no agent under the broker). The listing agreement establishes a special agency relationship between the broker and seller Agent Duties ---------CORRECT ANSWER-----------------Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care (OLD CAR)
Trust ---------CORRECT ANSWER-----------------Not A DUTY Customer ---------CORRECT ANSWER-----------------When a potential buyer contacts an agent for information regarding a property Client ---------CORRECT ANSWER-----------------An agreement with broker and agency Intermediary Relationships ---------CORRECT ANSWER-----------------Broker reps both the buyer and seller Broker remains neutral and avoids negotiating. The broker must first get written consent of both parties Intermediary with appointments ---------CORRECT ANSWER-----------------The appointed associate will give advice and opinion (which means negotiate) to their respective parties. The broker must make the appointments in writing using the Intermediary Relationship Notice Intermediary without appointments ---------CORRECT ANSWER-----------------Agent will have the opportunity to sell their own listing
Reasonable Accommodation ---------CORRECT ANSWER-----------------Landlord must make reasonable accommodation and service if necessary If an individual feels they have been discriminated against they may file a complaint but it must be filed within 2 years of the alleged act. Violation is a CIVIL offense VAMA (Voluntary Affirmative Marketing Agreement) ---------CORRECT ANSWER---- -------------Sign Place the equal housing sign in the office window Having and adhering to standard office procedures for working with customers Holding regular meetings on fair housing practices Federal Fair Housing Laws (civil right act) Penalties ---------CORRECT ANSWER------- ----------Violation are up to 75,000 for 1st and up to 150,000 for 2nd. Americans with Disabilities Act (ADA) ---------CORRECT ANSWER----------------- Removal of all barriers, and install of ramps, cut curbs, repositioned shelves, flashing alarm lights, marked elevator buttons, wider doors, levered door handles, etc. Exempt from ADA ---------CORRECT ANSWER-----------------single-family homes, churches, private clubs, historic buildings
Fidelity ---------CORRECT ANSWER-----------------Primary duty of real estate agent represent his or her client Redlining ---------CORRECT ANSWER-----------------Practice of refusing to provide financing in a particular area because of location. Only banks can be guilty of this under the law Integrity ---------CORRECT ANSWER-----------------Exercise integrity to avoid misrepresentation, in a way, by acts of commission or omission (don't withhold information) Competency ---------CORRECT ANSWER-----------------It is the obligation of real estate to be knowledgeable market, pledge continued education, exercise judgment and skill in the performance of his or her work. Terminate a relationship ---------CORRECT ANSWER-----------------it must be done in writing, and the license must be returned to TREC immediately. A salesperson whose license has been returned may not do business until they have found a new sponsoring broker. If a sales person wants to end the relationship with their broker, it must also be done in writing. A new broker files a request with the commission to assume sponsorship of the salesperson, accompanied by the appropriate fee. YOU MUST HAVE A BROKER AT ALL TIMES.
Lot and Block ---------CORRECT ANSWER-----------------Commonly used in residential subdivision and commercial developments Plat ---------CORRECT ANSWER-----------------A map of a town section or subdivision indicating the location and boundaries of individual properties (can find these in the tax records or MLS listing) A recorded plat is required. Rectangular Survey System ---------CORRECT ANSWER-----------------Government survey system (a lot up in the panhandle of Texas). The resulting square units of land are called townships, and are each 6 miles by 6 miles, or 36 sq. miles. Informal reference ---------CORRECT ANSWER-----------------Street address allows the property to be easily located It is NOT a legal description. Eminent Domain Condemnation ---------CORRECT ANSWER-----------------The right of the government to take private land for public use. The action of taking the land is called condemnation. Property taxes ---------CORRECT ANSWER-----------------create the highest priority lien against real property. Unpaid taxes are an automatic lien and at foreclosure will always be paid first. If property taxes are not paid, the land may be seized and sold.
Fee simple ---------CORRECT ANSWER-----------------Is the best type of ownership. Fee simple is always an estate of inheritance. Can NOT be terminated due to violation of conditions or terms in the deed. Conditional, defeasible, or determinable fee ---------CORRECT ANSWER----------------
- Is ownership that could be voided if a condition is not met, or if a requirement is violated. (violates conditions or terms in the deed) Promulgated ---------CORRECT ANSWER-----------------"to make known by open declaration; publish". NEVER FILL ANYTHING OUT OR CROSS ANYTHING OUT! Promulgated forms ---------CORRECT ANSWER-----------------TREC approves the forms Elements of a Valid and Enforceable Contract ---------CORRECT ANSWER-------------- ---Competent parties, Offer and acceptance (mutual parties), Legal purposes, In writing, Consideration Novation ---------CORRECT ANSWER-----------------When a new contract is substituted for an existing one.
