Day 1

Question 1

How many Lease forms does TREC have?

Answer 1

Buyer’s Temporary Residential Lease – for use when the buyer occupies the property for no more than 90 days prior to closing.
Seller’s Temporary Residential Lease - for use when the seller occupies the property for no more than 90 days after closing.

Question 2

What is right of first refusal?

Answer 2

Giving the tenant the right to purchase the leased property by matching or bettering any offer before the property is sold to someone else.

Question 3

Why did License holders become party to the DTPA?

Answer 3

Because Brokerage is a service

Question 4

What is common law?

Answer 4

a body of law developed in England and based upon “common sense” and local custom.

Question 5

What is Statutory law ?

Answer 5

The body of laws and regulations enacted by federal and state legislatures. Much of what was once embodied in common law is now codified in statutes passed at the state and federal levels.

Question 6

What is personal property?

Answer 6

Things of a temporary or movable nature are not part of the real property Personal property is also known as personalty or chattel.

Question 7

What is bill of sale?

Answer 7

If personal property is being transferred along with real property, a bill of sale is generally used to accomplish the transfer, which would normally accompany the deed.

Question 8

What are emblements?

Answer 8

Annual crops produced with labor fall into a special category known as emblements

Question 9

what are trees and shrubs considered?

Answer 9

Shrubs, trees, and landscaping are considered improvements and go with the property.

Question 10

What are the our economic characteristics of land?

Answer 10

Scarcity-When there is a shortage of some- thing that individuals want, the price goes up.

Modification - refers to the fact that value is affected by man-made changes to the land. These changes can be on the land itself or off-site.

Fixity -refers to the fact that land and additions to the land, such as buildings, take long periods to pay for themselves.

Situs- refers to the location of the property or land from an economic, not a geographic viewpoint. The familiar phrase “location, location, location” is based on the preferences people have for specific characteristics in property and the fact that location dominates those preferences. B

Question 11

What is a sole Proprietorship?

Answer 11

A sole proprietorship is a venture that is owned by one individual. The primary benefit of a sole proprietorship is that the owner has total control of the business.

A sole proprietorship can have employees but must have only one owner. I

Question 12

What is an estate in severalty ?

Answer 12

An estate in severalty involves ownership of real estate by one individual or entity

If only one signature is required on a deed conveying full ownership of the property to another, the seller owns an estate in severalty.

Question 13

What is ownership like in co ops?

Answer 13

Owners within a cooperative do not own a specific unit.

Question 14

Under Fair Housing what is Advertising prohibited from doing ?

Answer 14

Advertising that indicates a limitation or preference based on race, color, national origin, religion, sex, familial status, or handicap is prohibited.

Question 15

What is a contract?

Answer 15

A contract is an agreement between two or more parties to do something or to refrain from
doing something. In

Question 16

What type of contract is a unilateral contract ?

Answer 16

Unilateral

Question 17

What are the 5 essential elements of a valid contract ?

Answer 17

1. Competent parties
2. Offer and acceptance (mutual agreement)
3. Legal purpose
4. In writing (when required by law)
5. Consideration

Question 18

What causes a party to not be competent ?

Answer 18

Under the influence of drugs alcohol or incapacitated

Question 19

What is consideration ?

Answer 19

Consideration is defined as something given in exchange for a promise.
There is no requirement forthe consideration to be in the form of money.

Question 20

What stage is a contract at by closing ?

Answer 20

Fully Executed

Question 21

What does the statute for frauds require from contracts?

Answer 21

To be in Writing

Question 22

What is Police Power?

Answer 22

Is the right of the government to regulate and control the way land is used. The most common example of police power is zoning.

Question 23

What is a Buffer Zone ?

Answer 23

Is an area of land separating one land use from another, such as residential from com- mercial. The buffer zone is located between incompatible uses.

Question 24

What happens if a property is landlocked?

Answer 24

The court may award an easement by necessity

Question 25

What is Condemnation

Answer 25

The action of taking the land is called condemnation. Under Eminent Domain

Question 26

What causes contracts to discharge

Answer 26

-A contract is considered discharged when all parties have performed.

-A change in the law that makes performance illegal

-The destruction of property Examples include fires,earthquakes,acts of war,and hurricanes.

The death of a party does not necessarily discharge a contract. In many cases, if the seller is deceased, the sale can be completed by the estate. On the other hand, a buyer who dies will likely be dis- charged from the contract.

Question 27

What is a leasehold estate?

Answer 27

A leasehold estate gives one possession and use of a property without ownership. The person giving the use (the owner, landlord) is the lessor.

The person acquiring the use (the tenant) is the lessee.

Question 28

What are the 4 types of leasehold estates

Answer 28

-Estate for years – a lease with a definite beginning date and definite ending date. The lease period does not have to be for years. The criteria is a specific starting and ending date

-Periodic tenancy or periodic estate – a lease that renews itself automatically for like peri- ods. Typical examples would be a month-to-month or a week-to-week lease.

-Tenancy at sufferance – is an interest in leased property created when the holdover tenant (one whose lease has ended and who refuses to leave) is occupying the leased property against the owner’s will.

-Tenancy at will or estate at will– a leasehold in which a tenant occupies real estate with the permission of the owner for an uncertain or unspecified length of time; this is a very loose agreement.

Question 29

What is a percentage lease

Answer 29

PercentageLease-Intheretailenvironment,apercentageleaseobligatesthetenanttopaya base rent and a percentage of the gross sales.

Question 30

What is a lease assignment?

Answer 30

An assignment of a lease occurs when a tenant’s rights and liabilities are transferred to another. In most cases, the landlord reserves the right to approve the new tenant. The original tenant is no longer obligated under the lease when the assignment is complete.