Texas Principles 1 Q & A - Champions School of Real Estate, Exams of Business Administration

Download Texas Principles 1 Q & A - Champions School of Real Estate and more Exams Business Administration in PDF only on Docsity! Texas Principles 1 Q & A - Champions School of Real Estate 1. A commission may suspend or revoke a license for... ? acting negligently or incompetently, commingling money and soliciting or selling offers for the sale of real estate by means of a lottery: 2. Enacted in 1992 and deals with commercial property only? ADA Americans with Disabilities Act 3. person who administers the wishes of a will assigned by the court in the event the executor is not will to perform? administrator 4. Taxing "according to value”? Ad Valorem 5. When one person takes possession of another's land and holds that possession for a long enough period of time to be able to make it theirs and take ownership of it? Adverse Possession 6. Loyalty is a duty of the...? agent 7. Transfer of ownership of property - Alienation 8. Land that has been created by Accretion - Alluvion 9. 100% + appreciation % x original cost = appreciated value 10. Right or privilege to land that goes with the land when ownership changes such as parking lot spaces, easements, right or ways? Appurtenances 11. percentage (%) x market value= assessed value 12. a person holding a power of attorney? Attorney in Fact 13. Sudden removal of land by water? Avulsion 14. No warranties against encumbrances? bargain/sale 15. How much is the largest fine for any single violation of the Fair Housing Act? $110,000 16. What is a point? 1% of the loan amount 17. If you believe you are a victim of discrimination under the Federal Fair Housing laws, how long do you have to file a complaint? 1 year 18. What is the sentence that is used to remember how many sq. ft. are in one acre? 4 nuns driving 35 in a 60 mph 19. How long does a consumer have to file a complaint with TREC against a licensee? 4 years 20. interest rate x loan amount = yearly interest 40.The many rights that Fee Simple gives to owners of property-bundles or sticks can be removed but the owner still owns the Fee Simple. This is called...? Bundle of Rights or Bundle of Sticks 41.A certificate is required separate of the license when...? buying, selling or leasing an easement pertaining to telecommunication, utility, railroad or pipeline services 42.Centralized agency established in each county to appraise each property in the county for ad valorem taxes? CAD (Central Appraisal District) 43. How do you calculate Net Income? capitalization rate x market value 44. lists everyone who has ever owned that property? chain of title 45.also known as Personal Property? Chattel 46. What amended the Civil Rights Act of 1866 to include race, color, national origin, and religion? Civil Rights Act of 1968 47.What amended to include Sex (Male or Female)? Civil Rights Act of 1974 48.What amended to include Handicap and Familial status? Civil Rights Act of 1988 49. a written addition to a will the replaces or revokes what was written in that persons previous will? codicil 50. commission rate x sales price = commission 51. Easement in gross is a(n) easement. ? utility 52. how do you calculate Commission? commission rate x sales price 53. Property inherited by one spouse can remain separate property of that spouse. This is true about what type of property? community 54. Texas is a property state? community 55. The five elements that make a contract valid are...? competent parties, legal objective, offer and acceptance, contract in writing and signed 56. the process of eminent domain is called...? condemnation 57. There must be unity in time, title, interest and possession. -acquire ownership at the same time, title-acquire title from same source, interest-equal interest in property possession,-all owners have right to possess property? conditions upon which a joint tenancy can be made 58. Loans that meet FMNA guidelines are called? conforming loans 59. Something of value (dollar amount)? consideration 60. Something of value given to one to induce another to enter into a contract is called...? consideration 61. recording deed with county clerks office? constructive 62. Seller financing where the seller retains title until the final payment is called...? contract for deed 63. seller financing and buyer does not get deed until the property has been paid for in full ? contract for deed/installment contract 64. A(n) is owned by a group of people-owned by stockholders? corporation 65. The appraiser calculates the following using what approach? (land value) + (building replacement cost) - (depreciation)? cost approach 66. right a husband has to his wife’s estate upon her death? curtsey rights 71. Used to mark elevation? datum 72. gifted private property to the public (land to city that is to be used as a park) ? dedicaton 73. a written document that transfers real estate from one owner to another? Deed 74. The must be delivered and accepted for title to transfer? deed 75. delivers ownership of property at another date? Deed in trust 76. Title to real property transfers when...? the deed is delivered it no longer has an owner basically going back to the state? Escheat 97. A lease with a specific starting and ending date is called ? an estate for years or tenancy for years 98. sole ownership of property-not part of community property? Estate of Severalty 99. Contracts that are signed and carried out are called? executed 100. contract in the process of being performed? executor contract 101. All contracts are either or ? expressed, implied expressed: in writing or oral implied: understanding 102. What was the Fair Housing Laws or Civil Rights Act of 1866? FEDERAL LAW where the only protected class was Race. No one can discriminate because of RACE. 103. highest and greatest type of ownership interest (Title) that can be held in real property? Fee Simple 104. The type of ownership in which the person has the most rights is called? fee simple 145. a gift of land by a person or GRANTOR? fee simple defeasible 146. The three Canons for professional ethics and conduct for Real Estate Licensees are...? Fidelity, Integrity, Competency 147. The fact that improvements to the land will take a long time to pay for them? Fixity or Permanence of Investment 148. was personal property but then became real estate because it has been attached to the land? Fixture 149. Four types of legal descriptions of land? Metes and Bounds, Rectangular survey system, recorded plats, and reference to documents other than maps are all... 150. is a(n) estate in land, fee simple, and the most common ownership? freehold estate 151. Partnerships are and ? General and Limited 152. best deed in Texas (grantor gives no defects to title)? General Warranty 153. The deed that gives the buyer the greatest protection is called the...? general warranty deed 154. What are the types of Deeds? General Warranty, Special Warranty, bargain/sale, quitclaim 155. a title that cannot be defeated by a superior claim? good and indefeasible title 156. the governments rights in land? what is PETE? (police power, eminent domain (gvt. takes private land for public use), Taxation, Escheat (gvt. Takes title of land where owner has no heirs or will) 157. Deeds require the signature of? the grantor 158. person giving up ownership? grantor 159. When the landlord pays all of the expenses of the property and then tenant pays only the rent, this is called a(n)... ? gross lease 160. What are the types of easements? gross, necessity, prescription, and appurtenant 161. Fee Simple, Life Estate, Defeasable Fee are all included in the . (begins with to have and to hold) ? habendum clause 162. having a physical or mental disability (including hearing, mobility, visual impairment, chronic mental illness and AIDS) that substantially limits one or more major life activities is defined as...? Handicapped 163. Actual notice of another's interest in property is either , , or ? heard, seen, read 164. What is Progression? higher value properties cause an increase in the value of the subject property 184. an estate in land for the duration of someones life (always a gift of land/ real estate)? Life Estate 185. lists any lawsuits on property and gives any attachments to the property? Lis penden index 186. What are rights to another's land who borders a lake? Littoral Rights 187. blends partnership and corp? LLC Limited Liability Corp 188. What is Regression? lower value properties in an area cause a decline in the value of the subject property 189. TREC promulgated forms are...? mandatory for licensees 190. title that is free from doubt as to who owns the property? Marketable title 191. The most common approach for the appraisal of residential properties is the...? market data approach 192. An easement can be terminated by a(n)...? merger 193. legal land description most used in the US using distance and direction to define and describe the boundaries of a property? metes and bounds 194. Metes and Bounds, Rectangular survey system, recorded plats, and reference to documents other than maps: Name four types of legal descriptions of land? 195. Taxes charged per unit. Texas taxes per hundred dollars of value 196. monthly PITI: qualifying ratio x gross monthly income = mill rate 197. The pledge of real property as security for a debt is called a(n) 198. mortgagees title police: lenders policy and loan policy ? mortgage 199. What are types of Liens? -mortgage, property tax lien, mechanics lien, judgement -can be voluntary or involuntary -are either specific or general: 200. If the parties of a contract agree to terminate the contract, it is called. ? mutual recission 201. capitalization rate x market value = net income 202. Does the grantee need to sign the deed? no 203. The document that is evidence of a borrower's promise to repay a loan is called a(n)? note 204. substitution of a contract with another contract (ie. counteroffer)? Novation 205. the substitution of a new contract in place of the old one is called? novation 206. The Civil Rights Act of 1968 does NOT offer protection against discrimination based on? occupation 207. What are two ways to record a Deed? occupying/using the land, recording docs pertaining to property with county clerks office 208. percentage (%) x total = part 209. How do you calculate the Total? Part / the percentage 210. ensures the availability of a sufficient amount to pay on anticipated claims on the trust account ? Payments into Trust Account 211. A license can be revoked or suspended by the TREC if the licensee...? pays a commission to any unlicensed person, places a sign offering a property without the written permission of the owner, sells real estate by lottery 212. Part / the total = percentage 213. How do you calculate Sales Price? percentage x list price 214. How do you calculate Assessed Value? percentage x market value 237. All documents concerning must be recorded at county clerks office in the county where the property is located? real estate 238. A mortgage becomes a lien when it is. ? recorded 239. Legal land description which divides larger plats into smaller plots when land is divided in lots? Recorded plat 240. When land is divided into plots? recorded plat 241. legal land description using latitude, longitude lines, standard parallels and base lines to divide the earth into ares? Rectangular survey system 242. If a seller asks agent to discriminate, the agent must...? refuse to take the listing 243. What is it called when lower value properties in an area cause a decline in the value of the subject property? regression 244. many people can come together and invest in real estate -investors are the beneficiaries who buy shares in the company (beneficial interest) -income tax is only paid at the beneficiaries level? REIT Real Estate Investment Trust 245. dry land that results when water withdraws from the land? Reliction 246. When a grantor transfers a title but retains some rights it is called...? reservation 247. regulates closings on 1-4 residential properties with federally related financing? RESPA 248. is where in joint tenancy if one partner dies, his share goes to the remaining partners ? right of survivorship 249. What are rights to another's land who borders a stream or river? Riparian Rights 250. A landowner with a well is allowed to pump water from under his property? rule capture 251. limited to 200 acres for a married couple, 100 for a single person? rural homestead 252. percentage(%) x list price = sales price 253. What are the economic characteristics of land? scarcity, modification, improvements, permanence of investment, area preference 254. 100% - commission rate x sales price = seller's net 255. When property has only one owner it is called? severalty 256. What the owner receives through Eminent Domain? Severance Damages 257. Area Preference is called ? Situs 258. Which economic characteristic of land describes location preference from an economic point of view? situs 259. Used in commercial trans saying owner has done nothing to encumber the title during ownership? Special Warranty 260. The law requiring real estate contracts to be in writing is called the...? statue of frauds 261. Statute of Frauds: law that requires some documents (deeds included) to be in writing and signed in order to be enforceable by law 262. Illegal practice of directing home seekers to a particular neighborhood based on fair housing protected classes? Steering 263. Taking buyers to or away from a particular area based on any of the protected categories under Fair Housing Laws is called...? steering or channeling 264. When a buyer purchases a property and takes over the payments and liability on an existing loan it is called a(n)...? straight assumption 265. A property description that is considered an informal reference is. tax: tax rate x assessed value = a street address