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
An owner’s right to take for use or sell all of the water that can be captured from below their land.
Percolating right
A contract in which only one party makes (to try to get the other party to do something)
Unilateral Contract
A contract in which some of the terms have not yet been completed.
Executory Contract
At what point does the title officially change hands?
With the recording and transfer of the deed
Written will must be signed and dated by testator
Holographic
Properties designed for commerce and profit
Commercial properties
Belongs to the last person remaining with ownership interests
Remainder Interest
The rental agreement is given by the corporation that owns a coop building to a shareholder for use of a specific unit in the premises.
Proprietary lease
A contract that is inferred from the party’s actions.
Implied Contract
Occurs when a borrower sells a property for less than the balance owed (plus closing costs)
Short sale
One of the original parties transfers rights to a different party but may still be liable for obligations.
Assignment
The most precise and accurate identification of the properties location, required in real estate contracts. Most commonly used types in real estate contracts are in reference to the recorded plat, or the meets and bounds description.
Legal description
A licensee acting as a facilitator but not in a representative capacity in a transaction.
Example; may helped her neighbors swap houses by filling out paperwork for them. She represented neither.
A non-agent
Ownership, possession, and control for someone’s lifetime.
Feehold Estates
How many members are on the Texas real estate broker lawyer committee?
- 6 lawyers
- 6 brokers
- 1 citizen
Who appoints the members of the public?
The governor
Commercial banks are part of a classification of lenders known as
Institutional lenders
Lease used by owners of cooperative apartments who purchased shares of the corporation that owns the building; the leaseholder does not own the apartment, but a ——- lease to the apartment.
Proprietary Lease
The price at which a willing buyer and a willing seller would strike a deal given normal market conditions
Market value
A type of seller financing, and involves the buyer paying the seller for the property over time. There’s no standard promulgated contract for deed form in Texas.
Contract for deed
A whole number plus a fraction
Mixed number
An inheritable freehold estate
Fee simple
In the case of an an emancipated minor entering into a contract to purchase real estate, the minor doesn’t have————?
Contractual ability
The tenant isn’t permitted quiet enjoyment of the premises and vacates. The landlord has failed to uphold the warranty of habitability.
llll
The cost of replacing a building in case of a total loss
Insured value
Notice to prospective buyers consisting of important notices required by legislation
Boilerplate stuff
Some but not all of something
Part
- Cannot supersede or conflict with the U.S. Constitution
- Administrative law issued by the federal agencies, boards, or commissions
- Define how laws are implemented and enforced
Example: The age discrimination in employment act of 1967, which defines prohibited actions and consequences for violations of the act.
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Laws passed by Congress
Federal Laws
Makes money by packaging and selling loans into mortgage back securities then sells shares to investors.
Secondary Mortgage
An illegal intrusion of some structure or object across a boundary line. Minor encroachments aren’t usually an issue. Although adverse possession is a major issue.
Encroachment
Is a Contract that can’t be enforced in a court of law
Unenforceable contract
Contains all of the essential elements.
Valid
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
Public
Public easements
Right to travel
Navigable
Purchases loans from lending institutions
Secondary mortgage
Who is responsible for promulgating forms?
TREC
A fee simple estate where the property holder owns the property with all legal rights but subject to condition.
Fee simple defeasable
What’s included in a housing ratio (a.k.a., front end ratio)
Monthly housing obligation (principal, interest, taxes, insurance) homeowners or condo association fees.
A mortgage rate that is adjusted, usually annually based on the behavior of the economic index with which is associated it can go up or down.
ARM
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.
Riparian Rights
A contract that will not stand up in court, but may still be valid if the parties want to complete performance.
Unenforceable Contract
*May not conflict with state or federal law
*Enacted by government administrative agencies at the city, state, federal housing administration, state real estate commissions, and local planning boards
*Provide a way to implement and enforce laws, and detailed information on illegal practices and penalties for violations
Example: Real estate commission code of ethics and local Building codes.
Administrative Laws and Ordinances
A judge or jury makes a decision based on the facts from both sides.
Litigation
The illegal practice of nudging buyers away or toward a specific area based on the presence or absence of protected class members in the area relative to the buyers.
Steering
Used for purchasing manufactured homes, with terms starting in 10 years. Longer loan terms are available to finance for homes permanently attached to their foundations.
Manufactured home loan
A lien imposed for nonpayment of taxes; may be for various taxes owed e.g. personal income tax, employee withholding tax, etc.
Income Tax Liens
In a contract means that the parties will be held in strict compliance to any timeframe specified in the contract. Good faith and not delay
Time is of the essence
Calculation of shared cost between buyer and seller and based on amount actually owed
Proration
The net proceeds at closing will be less than the outstanding balance of the loan.
Short sale loan
Generally short term, this kind of financing is obtained to finance a construction project and is usually open ended.
Interim financing
A Leasehold estate for an unknown period of time; either party may terminate the lease by giving notice to the other. It’s not inheritable; this means that at the death of either party to the lease, the leasehold automatically terminates.
Estate at Will
The lender may require additional protection (down payment) if the down payment is less than 20-25?
Conventional loan
Includes mixed use, planned unit development, and transit – oriented development.
Specialty properties
A contract in which the parties to the contract have definitely agreed on all of the contract terms.
Express Contract
*Laws that apply only to individuals living within the state
*May not conflict with or attempt to supersede constitutional rights
Example: Real estate license law, Homestead and community property laws
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Administrative laws and ordinances
- May not conflict with state or federal law
- Enacted by government admin
State Laws and Regulations
TTIP
- time
- title
- interest
- possession
Example: Joint tenant
The return of funds invested
Investment value
What does it mean to officially publish?
Promulgate
Occurs when a borrower sells a property for less than the balance owed (plus closing costs)
Short sale
Terms of the agreement and the consideration to be exchanged are defined in words, whether verbally or in writing.
Express Contract
A study of a property that does not necessarily return a price or value
Evaluation
At what point does the title officially change hands?
With the recording and transfer of the deed
Has no legal effect. It is missing one or more of the essential elements, or if one party fails to meet a term of the contract.
A contract with no legal effect, even when all of the essential elements for a contract exist.
Void
Money to be paid by buyer or seller as listed on a closing statement
Debit
A legal concept that describes property ownership.
Title
Allowed to sell their interests but it is not inheritable.
It includes the right to survivorship.
Joint Tenants
A fraction where the numerator is less than the denominator.
Proper fraction
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
A person who receives a gift of real property
Devisee
Lender fees that the buyer borrower is prohibited from paying. Apply when the buyers financing the property with an FHA or VA loan, a Texas veterans land board loan or some other governmental loan
Unallowables
Taken against the total financing at various facing of construction
Payment made to contractor during the construction phase
A Draw
If agent agrees to do business, the consumer becomes the——-?
Client
An inheritable freehold estate that is defeasible (the grantor can terminate the title); for example, a parent could transfer property to a child as long as the child remained unmarried.
Qualified Fee??
A type of simple to feasible estate recognized by the words “BUT IF”. The estate continues unless a specific event occurs, in which case it terminates.
Fee On Condition
Offer and acceptance Consideration Legal competence Legal purpose Consent
Legally valid Contract
Must be for a lawful reason
Legal purpose
The top fraction that shows how many parts we have
Numerator
Who is responsible for the evidence of title
Buyer
an agreement that allows multiple agents to find a buyer where only the buyer locating the agent earns a commission
Open listing
A promise in exchange for something from another party. It can be rescinded or terminated under certain conditions. Often times an offer will be negotiated, which will create a counter.
Offer
Law that regulates all real estate licensee’s in Texas.
Stipulates the requirements a licensee must follow to keep their license.
Law established by TRELA
Lease in which payments change at predetermined intervals. May be based on changes in an economic index such as the consumer price index.
Variable Lease
Must be entered voluntarily, without to duress or undue influence
Consent
Whole number or amount of something
Total
The damaged party can pursue a legal remedy, but only within a specified period of time.
Statute of limitations
Enacted in 1988, this act allows credit union to solicit members using a much wider set of criteria.
Credit union membership access act
Is a gift. For instants, this might be a gift from one family member to another.
Good consideration
- Cannot supersede or a conflict with the U.S. Constitution
- Based on the U. S. Constitution
- Establishes a framework for how state government functions
- Basis for state laws and regulations
State Constitutions
No will, uses an administrator
Intestate
Estate ends automatically when a stated event or condition terminates, and the property will go back to the original owner.
Fee Simple Determinable
The buyer becomes entirely responsible for the debt and the lender can foreclose on the borrower if the loan into default.
Novation
Abuse of property by a person who holds possession through a life estate.
Act Of Waste
Legal process used to determine validity of a will
Probate
Identifies an interest example mineral rights or access easement that the seller is going to retain
Reservation
A type of estate that gives the owner special rights in property used as a family home.
(Not valid in all states)
Homestead
The principle is paid down over the life of the loan, typically through equal payments.
Amortized loan
Three forms of title evidence used in Texas are?
- Owner’s title insurance policy
- abstract of title,
- attorney’s opinion
Can be used in conjunction with exclusive RTS, exclusive agency, and open listing. No standard net listing addendum. Attorney needed for a special addendum or one from a brokerage that has attorney review.
Net listing
An illegal practice in which licensees or others encourage homeowners to sell because of an influx of expected minorities into the area
Blockbusting
Nancy will be responsible for rollback taxes if she changes the use of the land. She can also expect the lender to require a larger down payment and charge a higher interest rate.
Rollback taxes
A gift of real property
Devise
The process of putting your home to the lender as collateral for the loan is called ———?
Hypothecation
The national credit union share insurance fund was established to ensure credit Union deposits
NCUSIF
A bank like money cooperative where its members can borrow from pool deposits at low interest rates
Credit union
A development center around a transportation hub.
Transit oriented
Legal process used to determine validity of a will
Probate
Only protects against title defects existing at the time of title transfer
Title insurance
In a contract, this means that the parties will be held in strict compliance to any timeframe specified in the contract. Good faith and not delay
Time is of the essence
Contracts must be written for a legal purpose.
Lawful objective
Responsible for drafting and revising contract forms so that they can be standardized for use by licensees.
Texas Real Estate Broker Lawyer Committee
An illegal intrusion of some structure or object across a boundary line. Minor encroachments aren’t usually an issue. Although adverse possession is a major issue.
Encroachment
A mortgage rate that is adjusted, usually annually based on the behavior of the economic index with which is associated it can go up or down.
ARM
*Cannot conflict with the U. S. Constitution
*May be specific or set broad standards of
conduct and establish enforcement agencies
*Includes federal laws/statutes in the areas of mortgage lending, environmental laws, and civil rights
Example: fair housing laws
Laws Passed By Congress
Obtained from a title insurance company to provide evidence of title
Abstract of title
Required for contract validity only when the nature of the contract is real property.
It must be in writing
Commercial building owner needs capital but wants to remain in the building. The building owner will sell the building to an investor and lease it back. 100% equity without having to move.
Leaseback???
Terms are clearly defined
Express
May be verbal or written, but contracts for the sale of real estate must be in writing to be enforceable.
Express Contract
The balancing of credits and debits on the closing statement
Reconciliation
Who adopts and enforces rules necessary to administer TRELA?
TREC
A Written will that must be signed and dated by a testator?
Holographic Will
A ratio that compares two quantities
Rate
The process of putting your home to the lender as collateral for the loan is called ———?
Hypothecation
Principle is paid down over the life of the loan, typically through equal payments
Amortized loan
LTVR
loan to value determined by lender. % can vary depending on type of loan. Some VA loans have 100% LTVR as determined by VA appraiser.
Right to determine how the property is used and who may enter the property.
Control
A fee simple estate where the property holder owns the property with all legal rights but subject to condition.
Remainder Estates
Parties agree to certain terms, and each begins to fulfill its obligations on the march toward closing. Until closing happens, it is considered executory.
Sales contract
The ratio of debt to the value of property
LTV
The involved parties present their argument to an unbiased third-party, who then makes a determination after hearing both sides of the story
Arbitration
Type of relationship between the buyer or seller and a real estate licensee. Someone who acts on someone of that we have at that person’s request. Requires Agreement from both parties.
Agency
Only protects against title defects existing at the time of title transfer
Title insurance
It may be verbal or written, but contracts for the sale of
real estate must be in writing to be enforceable.
Express Contract
A will with an executor
Testate
Name the first licensing act
Real Estate Dealers license Act 1939
A person who is in a position of trust an owes loyalty to another
Fiduciary
When there is no will, an administrator is used.
Intestate
Who is responsible for the title search
Seller
Requires the agreement of both parties to the contract terms; also known as offer and acceptance
Mutual agreement
Is a written or verbal communication in which a discussion about a specific real property is discussed
Substantive dialogue
Defined as the seller or buyers failure to fulfill an obligation and can be considered a breach of contract
Default
Financing for home Improvements (such as additions or modernization) with terms of up to five years.
Home improvement loan
The lender may require additional protection (down payment) if the down payment is less than 20-25?
Conventional loan
Something to value, even a promise to do or not do something.
Consideration
Required mutual agreement of terms
Offer and acceptance
An accounting of the debits and credits to the buyer and seller at the close of a transaction.
Closing statement
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
A contract in which the parties to the contract have definitely agreed on all of the contract terms. All terms have been fully completed.
Executed Contract
Both parties have met all of the terms agreed to in the contract.
Performance
Who protects the public by regulating the real estate profession?
TRELA
Taxes that heirs (other than those named in the will who receive real property) owe. Have to be paid out of the remaining estate proceeds before the rest of the property can pass to them.
Deceased Persons Debt
Seller wants to reserve mineral rights
Addendum for reservation of oil, gas, and other minerals
Found in insulation
UFFI Urea Formaldehyde Foam Insulation
A closing in which all parties attend at the same time is known as a——-?
Round table close
