Texas Principles of Real Estate I Flashcards
Mortgage brokers
Mortgage brokers are paid a fee to bring borrowers and lenders together.
Realtists
Members of the National Association of Real Estate Brokers
Knowledge needed in real estate
local market, license laws, closing procedures
Skills needed in real estate
time management, market analysis, selling, writing
ARELLO
The Association of Real Estate License Law Officials
is an international association of real estate regulators, who promotes consistent policies and standards for license law and enforcement of license law.
Texas Real Estate Commission (TREC)
Responsible for administering The Real Estate License Act (TRELA). TREC has the power to create and enforce new rules to help interpret or define TRELA, but cannot amend the law.
Price mechanism
quantified value of an exchange
Market equilibrium
price, cost, value theoretically the same
Supply
dwelling units (residential), square feet (commercial/industrial), and acres (agricultural)
Supply and demand are influenced by:
Residential: quality of life/neighborhood, amenities, price/facility convenience
Retail: trade area, sales, competition, site access, visibility, growth patterns
Office: efficiency, costs of occupancy, functionality
Industrial: functionality, labor pool availability, regulatory compliance, supplies, distribution channels
Base employment
the number of persons employed in the businesses that represent the economic foundation of the area
Total Employment
includes base, secondary, and support industries. Total employment creates a demand for a labor force.
Supply-demand indicators
price, vacancy, and absorption.
Members of the commission IMPORTANT
6 members from real estate industry and 3 members from the general public
The governor appoints them
If a person or their spouse is registered, certified, or licensed by an occupational regulatory agency in the industry, they are deemed ineligible.
One term is 6 calendar years
Real Estate Recovery Fund
The Texas Real Estate License Act (TRELA) establishes a Real Estate Recovery Fund for the protection of the public against harmful actions by licensees. The TREC maintains and administers the fund.
license fee
is charged in order to obtain a balance in the trust fund of $1.7 million
Claim for payment from trust account
Upon order of the court, an aggrieved party may proceed to collect from the licensee. If the licensee cannot pay the full amount, the party may apply to the court for an order. The order directs the court to pay the balance due from the real estate recovery fund.
Payments from the trust account for claims arising out of a single transaction may not exceed a total of $50,000, regardless of the number of claimants
Payments from the trust account for claims based on judgments against a single licensee may not exceed a total of $100,000
A Texas real estate license is also not required for:
The sale, lease, or transfer of a mineral or mining interest in real property, the sale, lease, or transfer of a cemetery lot, the lease or management of a hotel or motel, or the sale of real property under a power of sale conferred by a deed of trust or other contract lien.
Education Standards Advisory Committee
The committee consists of 12 members appointed by the commission. Members of the committee serve staggered two-year terms. The terms of the committee members expire as follows:
- On December 31 of each even-numbered year, the terms of four license holder members and two education members expire.
- On December 31 of each odd-numbered year, the terms of three license holder members and two education members expire and the public member expires.
Asset managers
Oversee groups of properties, or portfolios. Their role is to achieve the investment objectives of their clients, as opposed to managing day-to-day operations.
Unit of residential demand
This is the household
Unit of commercial (retail and office) and industrial real estate demand
This is the square footage