The Canons of Professional Ethics and Conduct provide for
Fidelity, Integrity and Competency
TREC has subpoena power. If a licensee fails to respond to a subpoena , TREC may
file suit to enforce the subpoena.
TREC will investigate the actions of a licensee if
they receive any written and signed complaint received no later than the fourth anniversary of the date of the incident.
The Broker Lawyer Committee
writes TREC promulgated contract forms.
TREC has a real estate recovery trust account. What is true about this account?
Every applicant for a real estate license in Texas pays $10.00 for the account, Money in the account can be invested , If the balance in the account goes over $3.5 million, the excess goes to the general revenue fund.
Payments out of the real estate recovery trust account are limited to:
$50,000 per transaction regardless of the number of claimants and $100,000 per licensee.
TREC may suspend or revoke a license if
the licensee Comingles broker funds with client's funds, sells real property by lottery, places a sign offering a property for sale or lease without a written consent from the owner.
The TREC may assess an administrative penalty
of up to 5,000 per violation on any person in Texas who violates the rules of the TREC.
One who represents another from whom he has derived authority is called
an agent.
A licensee who represents a party must disclose this representation
at first contact.
The duties of a broker in a fiduciary relationship do NOT include
compensation, but DO include PLC (Performance, Loyalty and Care)
The principal's duties to an agent include
CRIP: compensation, reimbursement, indemnification, and performance.
The listing most commonly found on the MLS is
the Exclusive Right to Sell
When a broker in Texas is representing the buyer and seller in a single transaction he is
an intermediary
Listing agreements can be terminated by
death of either party, abandonment, mutual agreement.
When a Texas broker appoints associates to the parties in a transaction this is called
intermediary with appointments.
Appointed associates under an intermediary may
give advice and opinions to their respective parties.
The intermediary relationship notice
names the appointed associates.
An example of involuntary alienation is property transfered by
adverse possession.
The deed that contains no warranties of ownership is the
quitclaim deed.
The Federal law that prohibits kickbacks or non-disclosures in a real estate closing is
RESPA
RESPA
Applies to 1-4 family residential properties
Competent parties for a real estate transaction include
a person 18 years of age or older.
A contract that binds one party but not the other is called
unilateral
These are annually cultivated crops, attached to the land, and are personal property.
Emblements
When real property is sold
fixtures remain with the property
Loss of value due to lack of modernization is called
functional obsolescence
When an appraiser is using the Market Data approach, comps should be
no more than 6 months old
The appraisal approach used for rental properties is the
income approach
The appraiser will use the cost approach to value for
a church
When preparing an appraisal, the appraiser will
define the problem, apply the correct approach, and prepare his report
The appraisal principle that tells the owner that he should not over improve his property is the .
principle of increasing and decreasing returns
Official property value for tax purposes is called
assessment value
The appraisal principle that says there is maximum value in with sameness or similarity is
the principle of conformity
The economic characteristic of real property that describes the impact of improvements is
modification
A lien to secure payment for work or materials is called an
M& M lien
A pledge or real property as security for a debt is called a
mortgage
In a deed of trust the lender is called a
beneficiary
The primary purpose of the FHA is to
insure loans
Loans that are not FHA or VA guaranteed are called
Conventional
Another name for Contract for deed is
Land Contract or Installment Land Contract.
A lease that automatically renews itself is
periodic tenancy.
A loan has a PITI payment is called a
budget loan
A person who brings a lender and a borrower together for a fee is called a
Mortgage Broker
Legal possession of real property without ownership is a
leasehold estate
Rent stated in a lease agreement is called
contract rent
A lease with a specific starting and ending date is called
estate for years
The TREC's buyer's/seller's temporary lease agreement is for
periods of 90 days or less
The law requiring the removal of barriers and ease of access is
Americans with Disabilities Act
Requirements of the ADA include
wheelchair access, Braille markings on elevator control keys, flashing alarm lights for the hearing impaired
Causing panic selling in a neighborhood is called
Blockbusting
Which building is exempt from ADA?
A private club
An example of compliance with Federal Fair Housing Act is
practicing fair housing, placing the equal housing sign in the office window, signing VAMA, (Voluntary Affirmative marketing Agreement) having a standard having a standard office procedure for working with customers, and regular office meetings on fair ho
The Federal Fair Housing Act prohibits discrimination of
race, religion, and sex
The Equal Housing Poster mentions discrimination in the .
sale or leasing of residential housing
A house sold for $100,000. The loan amount was $80,000. The borrower paid 3 points. How much did the borrower pay for points?
80,000X.03= $2,400
The assessed value of a property is $90,000. The tax rate is $3.42 per hundred. What are the annual taxes?
90,000 divided by 100= 900X3.42= 3,078
A yearly tax bill is $8788. The property has sold and closing is on May 30th. How much will be owed for taxes? (Use 30 day months and round to the nearest dollar)
$8,788 Divided by 12= $732 month X 5 = 3,660 Debit Seller Credit Buyer
The listing broker's half of commission was $4392. The commission rate was 5%. What was the sale price of the property?
4392 X 2= 8784 Divided by .05= $175,680