Random Flashcards Texas Real Estate
Studying to pass
Ownership such as homeownership for an undetermined length of time.
Examples are: Life estates or Estates of Inheritance
Possession, Control, Title
Freehold estates
Four federally related lending transactions covered by RESPA
- New mortgage first loan
- Finance loan
- Second mortgage
- Home equity lines
The contract is valid but hasn’t been fully performed yet. Obligations still need to be fulfilled.
Executory
A lien placed as a result of legal action or lawsuit; have priority based on the date recorded in the county clerk’s office.
Judgement Liens
STUD
- scarcity
- transferability
- utility
- demand
Obtained from a title insurance company to provide evidence of title
Abstract of title
A gift of real property
Devise
The ratio of debt to the value of property
LTV
A lease is one in which the original tenant, tenant A, subleases to a new tenant, tenant B, the lease between tenant A and landlord.
Sandwich Lease
A T-47 and an Existing survey go hand-in-hand
Facts
The price a lender believes that the property will bring at a foreclosure sale
Mortgage value
Four federally related lending transactions covered by RESPA
- New mortgage first loan
- Finance loan
- Second mortgage
- Home equity lines
Is a gift. For instance, this might be a gift from one family member to another.
Good consideration
The price a property is worth to its current owner as currently enjoyed
Value in use
Offer and acceptance
Mutual agreement
…
Remainderman
May be verbal or written, but contracts for the sale of real estate must be in writing to be enforceable.
Express Contract
A high density project with mixed zoning e.g. retail and residential, healthcare, etc.
Planned unit development
Who is responsible for the title search
Seller
Legally, at what point is a sales contract executed
When all terms have been met
One party made a promise. No obligation by another party.
Unilateral contract
Both the buyer and the seller me all of the terms of the contract.
Performance of contract
Fill in the blank a.k.a. a simple will
Statutory will
A contract in which two parties make promises to each other
Bilateral Contract
Based on someone’s opinion of the relative worth of an item
Subjective value
Committee formed in 1949 to administer the real estate dealers license act.
TREC
What’s a loan origination fee?
Fees charged by a lender for processing or originating a loan.
Who are brokers appointed by?
TREC
A licensee who is found guilty of housing discrimination can potentially be sanctioned by TWCCRD violation and the real estate commission for the same violation. Civil litigation can also be initiated by the Texas Attorney General, the US Attorney General And through private suits in state or federal court.
Penalties for fair housing violations in Texas
A closing in which all parties attend at the same time is known as a——-?
Round table close
Leasehold Estates
A.k.a. A non-freehold estate
An estate for a limited time (example: renting, leasing)
Conveys possession and control, but not ownership.
The power of the state to claim property when the owner dies without a will and without locatable heirs or creditors.
Escheat
A contract with no legal effect, even when all of the essential elements for a contract exist.
Void Contract
A contract that’s binding for one party, but gives the other party the choice to terminate
Voidable
Parts per 100
Percent
How do you calculate the housing ratio?
([Principal + interest + taxes + insurance+ association fees] / monthly gross income) X 100
The national credit union administration was established in 1970 as an independent federal agency to supervise and charter Federal credit Union
NCUA
A contract that will not stand up in court, but may still be valid if the parties want to complete performance.
Unenforceable contract
Mortgage in which only interest payments are made, and the entire principle is paid at the end of the loan a.k.a. a term loan
Straight loan
Parties have signed the contract document.
Executed
A party fails to meet its contractual obligation, that party has?
Breached the contract
A type of interim financing, specifically for new construction, with a terms between three months and three years.
Construction loan
Contracts must be written for a legal purpose.
Lawful objective
A type of freehold estate that provides the most complete form of ownership and bundle of rights in real property.
Fee Absolute
A will with an executor
Testate
Right to use property to live or work there.
Possession
In the case of an an emancipated minor entering into a contract to purchase real estate, the minor doesn’t have————?
Contractual ability
Contracts for the sale of real estate must be in writing and be signed by the parties. Ensure that the contracts are enforceable.
Statute of Frauds
This would be the property (identified by address) along with the sales price
Consideration
The bottom number in a fraction that shows how many equal parts the item is divided into.
Denominator
Actual cost
Objective value
How do you calculate total debt ratio?
(Total of monthly debt obligations / monthly gross income) X 100
Has nine members
TREC
Prevent lending discrimination
ECOA
Owner finds buyer or tenant, then no listing fee is owed
Exclusive agency
Easy way to remember. Resolving a specific by a specific deadline
Specific Performance
Two forms required for all federally related mortgage loan transactions?
- Loan estimate
* closing disclosure
The buyer becomes entirely responsible for the debt and the lender can foreclose on the borrower at the Long goes into default.
Novation
What’s a loan to value ratio?
Amount being borrowed compared to the value of a property, (either the appraised value or sales price, which ever is less)
A type of leasehold estate that terminates after a specified period of time (e.g, days,months, years). Of definite duration that terminates automatically and is inheritable, meaning that if either party to the lease (usually the owner or tenant) dies, the lease is not automatically terminated.
Example: If Lisa or the building owner dies, the terms of the lease survive. At the end of the year, the parties may negotiate new terms or vacate.
Estate for years
An unbiased third-party facilitate communication between disputing parties to enable an agreement that is satisfactory to both parties
- low cost
- fast
- private
- win/win, as both parties are satisfied with the agreement
Mediation
Who is responsible for the evidence of title
Buyer
Lists liens, encumbrances, conditions, and restrictions in the public record for that property and that impact the title.
Attorney’s opinion of title
Rights of the owners of the property that borders a stationary body of water such as a lake or sea.
Littoral Rights
A contract that is binding and enforceable on all concerned parties because it contains all of the essential contract elements.
Valid Contract
Must demonstrate the need or beneficial use of water. Application for a permit through TCEQ The Texas Commission on Environmental Quality. To access someone else’s land must obtain an easement.
The doctrine of prior appropriation
Right of repossession of the property by the owner after the end of the life estate.
Revisionary Interest
Maybe an exchange of money for a promise, and exchange of an item of value for money, or an agreement between the parties to do or to not do something. The agreement between the parties conserve as the———-?
Valuable consideration
Makes money by packaging and selling loans into mortgage back securities then sells shares to investors.
Secondary Mortgage
Lowers your taxable income and thus reduces your tax liability. You subtract the amount of the tax deduction from your income, making your taxable income lower. The lower your taxable income, the lower your tax bill.
Tax Deduction
The practice of a lender to refuse to lend in a specific area often based on the minority make up of the area.
Redlining
Taken against the total financing at various facing of construction
Payment made to contractor during the construction phase
A Draw
- Regulates government action
- The supreme source of law
- Applicable in every state and is the basis for each states constitution
- State constitutions cannot supersede or conflict with
U.S. Constitution
A leasehold that renews itself automatically at the end of each lease period. Lease from period to period.
Inheritable
The period negotiated may be a single week or month.
Periodic Estates
A property that combines retail and residential in a single property.
Mixed use development??
The estate doesn’t end automatically when the condition is violated. The original owner must take legal action to reclaim.
Subject to a condition
Fill in the blank a.k.a. a simple will
Statutory will
Could be enforceable depending on the circumstance
Implied contract
The involved parties present their argument to an unbiased third-party, who then makes a determination after hearing both sides of the story
Arbitration
Prevent lending discrimination
ECOA
A judge or jury makes a decision based on the facts from both sides.
Litigation
Three forms of title evidence used in Texas are?
- Owner’s title insurance policy
- abstract of title,
- attorney’s opinion
A contract that may or may not be enforceable between the parties, and usually means one party did not meet a legal requirement of the agreement.
Voidable Contract
A loan made by leveraging available equity and the borrowers home. Proceeds may be applied to anything from home improvement to purchasing a new car.
Home equity loan
When a buyer purchases through a land sales contract, the seller holds the real title until the final payment is made. In the meantime, the buyer has the equitable title.
Equitable title
A person related to the transaction whom the agent does not represent.
Ex:Even though customers are not clients, agents owe to customers the duties of fair and honest dealing, and disclosure of who the agent represents, and disclosure of any material fact.
Customer
These bank deposit such as those made to a checking or traditional savings account must be made available upon demand.
Demand deposits
How do you calculate a loan origination fee?
Loan amount X origination rate (divide a percentage by 100 to obtain the rate, so an origination fee of 2% is the same as 0.02)
A person who receives a gift of real property
Devisee
Money to be received by buyer or seller (or conversely, reimbursed) as listed on a closing statement
Credits
A client-someone who’s represented by a real estate professional. May also refer to a party to a transaction (example the buyer or seller, whether or not they are represented by an agent.)
Principal
Two forms required for all federally related mortgage loan transactions?
- Loan estimate
* closing disclosure
A lien placed when a person dies and federal estate taxes and state inheritance taxes must be paid; the decedents property may be sold to pay the lien.
Estate and Inheritance Tax
Is a written or verbal communication in which a discussion about a specific real property is discussed
Substantive dialogue
The inherent or automatic ownership rights are the natural consequences of property ownership.
Appurtenance
A part of a whole
Fraction
Is a mock person, or legal entity, created under the power of the laws of the state from which it receives its charter.
Intangible-Unable to be touched or grasped, not having physical presence.
Corporations
An open line of credit based on the available equity in the borrowers home.
Home equity line of credit (HELOC)
Private
Non-Navigable
Estate at sufferance
(A.k.a Tenancy at sufferance)
A.k.a. holdover tenant
Unlawful possession of a leasehold estate after the expiration of a lease.
If a Tenant under a lease stays beyond the leases terms and the landlord continues to accept rent from that tenant, that tenant becomes a week to week tenant if stated in the lease, or month-to-month.
The landlord can refuse the payment after the lease expires and force them to vacate.
An unbiased third-party facilitate communication between disputing parties to enable an agreement that is satisfactory to both parties
- low cost
- fast
- private
- win/win, as both parties are satisfied with the agreement
Mediation
A contract that is binding and enforceable on all concerned parties because it contains all essential contract elements.
Valid contract
Age of majority and mental soundness
Legally competent parties
