Champion School of Real Estate-Law of Contracts Exam-with 100% verified solutions .docx, Exams of Advanced Education

Download Champion School of Real Estate-Law of Contracts Exam-with 100% verified solutions .docx and more Exams Advanced Education in PDF only on Docsity! Champion School of Real Estate-Law of Contracts Exam-with 100% verified solutions Texas Real Estate Commission 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 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 license holder is not qualified to add provisions to contracts that go beyond factual business details. Promulgated Forms residential contract forms that are mandatory for license holder Deceptive trade practices Act Texas law that applies to trade and commerce that was passed in 1973. Part of the Texas Business and Commerce code Land surface of the earth extending downward to the center and upward above the surface to infinity Real Estate all that encompassed in land with the addition of all man-made additions to the land (improvements) Real Property goes beyond physical real estate and includes the rights that a person has in the land. Bundle of Rights rights that a person has in the land severable different rights can be separate Surface Rights the ability to develop the surface and to use resources extracted from or near the surface Subsurface Rights rights to oil, gas and minerals, are commonly conveyed through a lease, mineral deed or reservation Air Rights extend above the surface without limitations improvements man-made additions to the land that is permanent and is considered to become part of the land personalty/chattel personal property bill of sale used to accomplish the transfer of personal property, accompanies the deed Fixture personal property that has become attached to the land annexation personal property that becomes real property severance removing fixtures to become personal property Physical Characteristics of Land Indestructibility-cannot be destroyed Immobility-cannot be moved Non-homogeneity-no two parcels are the same Police Power the right of government to regulate and control the way land is used zoning example of police power variance permission to violate the rules buffer zone area of land separating one land use from another building codes all residential structures must conform to code eminent domain the right of the government to take private land for public use condemnation the action of taking land for public use taxation the right of the government to tax real property assessed value property value for tax purposes escheat if a person dies intestate and without heirs the government will take title to his real property freehold estate when an individual owns real property bundle of rights rights associated with ownership of real property: control sell exclusion lease develop mortgage posses Fee simple absolute least number of limitation on the owner conditional, defeasible or determinal fee ownership that could be voided if a condition is not met life estate ownership for the duration of someone's life life tenant owner of a life estate statutory estates created by statute or law community property homestead dower and curtsey tenancy by the entirety homestead primary residence will be exempt from the claims of certain creditors dower and curtsey based on English law dower is the interest a wife has in the property of her husband; curtsey is the interest a husband has in the property of his wife lien claim against property encumberance a lien easement gives one the right to use or pass over another's property for a specific purpose Discharge of Contracts a contract is considered discharged when: all parties have performed a change in law that makes performance illegal destruction of property Listing agreements is an employment agreement between the seller and the broker elements of a listing agreement 1. Agency Relationship 2.Brokerage Fees 3. Property condition 4. Relationship with buyers 5. Market value of the property being listed 6. local market condition a listing agreement should provide the broker to 1. permission to place a sign on the property 2. permission to place a lock box on the property 3. permission to advertise the property on the Internet 4. other provisions regarding showing times and instructions Types of listing agreements 1. Exclusive right to sell 2. Exclusive agency 3. open listing 4. Net Listing Exclusive Right to sell grants an exclusive right to sell the property during the listing term, commission is paid even if the property is sold by the owner Exclusive agency Sublet the transfer of some or all of the tenant's right and leased space to another with liability remaining with the lessee. Termination when a lease agreement comes to an end of the lease period. Lease Option allows a tenant to buy the property at a preset price and terms for a given period of time. Contract for deed a contract between buyer and seller An offer can be communicated by: 1. phone 2. fax 3. email 4. letter 5. hand delivery Offeror the person making the offer offeree the person to whom the offer is made an offer must meet legal requirements 1. communicated to a specific offeree. 2. Intended to be a serious offer 3. definite and certain enough to be accepted by the offeree The offeree has options for the response to an offerr 1. do nothing 2. reject 3. accept 4. counteroffer acceptance the accepting party does so with no change to the contract whatsoever. Sales price indicated in the document and is usually reflected as the sum of the down payment and the amount financed Earnest Money is a payment that is placed into escrow to show the buyer is serious in the intent to purchase the property. It also serves as a payment of liquidated damages to the seller in the event of default of the buyer