Intro Review Flashcards
Indestrutibility
Refers to the permanence of the land. While economic value and surface may change, land is indestructible
Fixity
The permanence of land. Land cannot be moved. This is a physical trait. However location can be used as an economic trait
Situs
The desirability of a location. An economic desire for a location, not a geographic one.
Economic scarcity
Created by the demand for land in a particular area. Land is most valuable when in short supply/high demand.
Real estate specialties
Residential Commercial Industrial Recreational Unimproved land Farm and ranch Property management Apartment locating Timeshare sales property development Foreclosure
Real estate inspector
Prepares a visual assessment of a properties physical condition and prepares a report for the client.
Real estate appraiser
Assess the market value if a property and prepares a report for the client.
Comparative market analysis (cma)
Takes into account number of homes for sale in an area, their prices, and recent purchases prices to establish a fair market price in absence of an appraisal.
Real Estate Law
Is derived from federal and state constitutions that contain laws dictating how we practice real estate such as matters regarding fair housing but also the rights of buyers and sellers
Who needs a license? Who doesn’t?
Does: brokers, agents, locators
Doesn’t: home builders, licensed attorneys executing their duties, and people selling/renting their own property
TRELA
Texas Real Estate License Act
Governs the activities of brokers and agents. Is part of the Texas Occupations Code.
TREC
Texas Real Estate Commission
Responsible for enforcing TRELA
Objective of Texas license law
To protect public from incompetent brokers
Set minimum qualifications for licensing
Maintain ethics and moral standards for agents.
NAR
National association of Realtors
Professional organization that provides education and guidance for its members
Sunset Act
Common law requiring that every commission be reviewed every 12 years to ensure its efficiency and need.
How do you avoid incompetence and misrepresentation?
Stick to the facts and only deal in matters in which you are experienced and knowledgeable. Consult other sources when answers are unknown.
Protected classes against discrimination
Race, color, creed, religion, sex, disability, familial status, national origin, or ancestry
DIY contracts
Only buyers and sellers may draw up their own contract. Brokers and agents must use promulgated contract.
License eligibility
Prospective license holders must meet all requirements set by the Commission:
18 years of age or older
A citizen of the United States OR have the legal right to work in the U.S.
Applicants must also have good moral character and integrity, plus a sponsoring broker in order to get an active license and practice real estate.
Disciplinary Action
The Texas Real Estate Commission can take disciplinary action against license holders, including suspending or revoking their licenses, if the real estate agent or broker is deemed guilty of any of the following:
Dishonest or untrustworthy conduct
Negligence
Incompetence
Procuring or attempting to procure a real estate license fraudulently
Grounds for suspension or revocation
A license holder is at risk of losing their license if they:
Accept, receive, or charge an undisclosed commission, rebate, or direct profit on an expenditure made for a principal
Solicit, sell, or offer for sale real property by means of a lottery or a deceptive practice
Act in a dual capacity as broker and undisclosed principal in a real estate transaction
Guarantee that future profits will result from a resale of real property
