Principles of Real Estate 1

Question 1

Ad Valorem Taxes

Answer 1

according to value

Question 2

Estate for years

Answer 2

set term. Survives death and sale

Question 3

Periodic Tenancy

Answer 3

renews automatically. Survives death and sale

Question 4

Tenancy at sufferance

Answer 4

tenant occupies against owner’s wishes

Question 5

Tenancy at will

Answer 5

tenant occupies with permission for uncertain time

Question 6

Redlining

Answer 6

refusing to provide financing in a particular area because of location.

Question 7

Termination of listing agreements

Answer 7

Purpose is completed
Expires
By mutual agreement
Death or incapacity
Condemnation or destruction of property
Bankruptcy
Operation of law
Revocation of license
Abandonment by agent
Revocation of agreement by principal
Termination by broker

Question 8

Information About Brokerage Services – IABS – purpose and content

Answer 8

Inform about duties of agent to clients and representation

Question 9

Physical Characteristics of Land

Answer 9

• Indestructibility
• Immobility
• Nonhomogeneity

Question 10

Termination of Easements

Answer 10

Merger
Release
Abandonment
Death

Question 11

Creation of Easements

Answer 11

• Grant
• Reservation
• Implied grant
• Prescription- continuous use without permission
• Necessity
• Condemnation

Question 12

Easement

Answer 12

Gives one right to use or pass through another’s property

Question 13

Easement in gross

Answer 13

Belongs to person or corporation and not land

Question 14

Easement appurtenant

Answer 14

Right to benefit from piece of land

Question 15

Canons of Professional Ethics

Answer 15

Fidelity
Integrity
Competency
Consumer Information (must be displayed)
Discriminatory Practices

Question 16

Community Reinvestment Act (CRA)

Answer 16

prohibits redlining and ensures banks serve needs of community in which they do business

Question 17

Stigmatized properties – conditions and disclosure requirements

Answer 17

Physical or psychological stigma
murder or haunting
Must disclose unless AIDS/HIV related or death

Question 18

Remedies for Buyer Default

Answer 18

• Liquidated Damages- earnest money
• Monetary Damages- decided by court
• Specific Performance- force to complete contract

Question 19

Remedies for Seller Default

Answer 19

• Refund of Earnest Money
• Monetary Damages- decided by court
• Specific Performance- force to complete contract

Question 20

Valid

Answer 20

Meets all requirements of law

Question 21

Void

Answer 21

Invalid from beginning

Question 22

Voidable

Answer 22

Cannot be enforced against parties

Question 23

Unenforceable

Answer 23

Cannot be enforced due to flaw in contract

Question 24

TREC and administrative penalties

Answer 24

up to $5,000 per day against offending licensed and unlicensed individuals.

Question 25

Riparian Rights

Answer 25

right to use water from a river or a stream on or next to the property

Question 26

Littoral Rights

Answer 26

right to use water from a lake, ocean, or sea on or next to the property

Question 27

Accretion

Answer 27

the addition to the land by the action of water.

Question 28

Alluvion

Answer 28

the soil added to the land by the accretion.

Question 29

Avulsion

Answer 29

water washes away the land from one property and deposits it on another

Question 30

Reliction

Answer 30

water recedes and dry land appears.

Question 31

Real Estate Development

Answer 31

the acquisition of land for development into residential subdivisions, retail centers, and other commercial uses.

Question 32

Timeshare

Answer 32

part ownership of a property coupled with the right to its exclusive use for a specified number of days per year

Question 33

Condominium

Answer 33

Each unit is a separate legal ownership, and each resident arranges his or her own financing

Question 34

Cooperative

Answer 34

Units in a cooperative are most often owned by a corporation

They purchase stock in the corporation