unit 11 Flashcards
If a corporation has a property listed with a sales agent but the CEO or chairman of the board dies suddenly, what happens to the listing?
Nothing happens; because the corporation is an entity that survives the death of it executives or board members, the listing would continue as originally conceived.
With what official government bodies must a real estate brokerage file paperwork regarding the brokerage’s use of an assumed name?
The Texas Real Estate Commission and the county clerk in every county where the brokerage does business
In a limited partnership,
the title may be held either in the names of the individual partners as tenants in common or in the name of the partnership as owners in severalty.
Who pays income tax on corporate profits?
Both the corporation and the shareholders
A sales agent working with a buyer who is interested in condominiums should make sure the buyer has
the condominium declaration that sets out the rights and obligations of each unit owner.
Under community property law in Texas, income from separate property is generally considered what kind of property?
Community
In a land trust, title to property is held by
the trustee.
What are some of the drawbacks of being a sole proprietor of a real estate brokerage?
You accept all the risk of the enterprise and responsibility for all the debt.
If a real estate broker operates a business as a sole proprietorship,
he must inform TREC within 30 days if he adopts an assumed name and the Assumed Name Certificate must be filed with the county clerk.
If a deed to real estate shows co-ownership but doesNOTstate what type of co-ownership is being created, the law assumes
tenancy in common.
Under community property law in Texas, if one spouse dies, the other spouse automatically owns what amount of the community property?
One-half
If a tenant in common dies, that person’s ownership interest goes to
the decedent’s heirs.
If a business is organized as a general partnership, which would a partnerNOTexpect?
The partnership will be dissolved after the death, withdrawal, or bankruptcy of one of the partners.
Creating a joint tenancy requires four unities:
time, title, interest, and possession.
If a purchaser doesNOTreceive a copy of the contract when it is signed, when may a purchaser of a time-share cancel the contract?
Before the 6th day after a signed copy of the contract or required time-share disclosure is received
The shares owned by tenants in a cooperative give them what kind of long-term lease to a unit in the building?
Proprietary
Franchise operations, with revenues in excess of $1 million, are obligated to pay a franchise tax while doing business in Texas. What kind of corporate structures must pay the tax?
Professional associations and business trusts
Limited liability companies and partnerships
Corporations and Chapter S corporations
Real estate brokers hoping to list properties being sold by a corporation should secure what document before beginning work?
A copy of the corporate resolution authorizing the sale
Real estate brokers working with budding entrepreneurs to set up Texas property companies are reminded that
legal and tax advice should be sought from professionals to determine the best form of business ownership for a particular situation.
When a corporation is formed, its directors may pass a resolution allowing it to buy and own property as a business entity unto itself. Is the corporation limited to what kind of real estate it can buy?
Maybe, if the directors pass a resolution restricting the kind of property the corporation can own, only that kind of property can be held.
Time-share ownership is usually used for what kind of properties?
Resort
If the owner of a condo in a large building defaults on his mortgage, the bank
may foreclose only on the owner of the unit.
Sales agents assisting condo buyers may want to introduce their buyer to
a member of the building association board of directors to make sure rules are clear about assessments and expectations of fellow condo owners.
Who is required to sign a listing agreement or sales contract for the proposed sale of homestead community property in Texas?
Both spouses
Which controls and maintains the common elements of a condominium and enforces the condominium bylaws?
Owners association
What is one of the chief drawbacks of corporate ownership of income property?
Profits are subject to double taxation unless organized as an S corporation.
Who may hold different percentages of ownership in the property?
Tenants in common
The shareholders’ liability for the debts of a corporation is
limited to the amount of their investment.
DBA in a business name stands for
doing business as.
For entrepreneurs to set up a real estate brokerage as a sole proprietorship, they must
first have a valid broker’s license.
Under which circumstance does a spouseNOTacquire an equitable interest in separate property owned by the other spouse?
There was an enhancement in the value of separate property from funds given to the owning spouse by her parents during the marriage.
If one spouse dies, the separate property of the deceased spouse and the deceased spouse’s half of the community property are distributed according to the deceased’s
will.
