Term
single men/women under 25
empty nesters
couples (married/unmarried) with no kids |
|
Definition
| non traditional home ownerships |
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|
Term
condominium
cooperative
townhouse
planned unit development
converted use
retirement communities
highrise developments
manufactured housing
modular homes
time shares |
|
Definition
|
|
Term
|
Definition
| type of housing in which the person owns air space in unit and undivided interest in common elements |
|
|
Term
|
Definition
| type of housing in which tenants form corporation and rent to corporate shareholders |
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|
Term
|
Definition
| type of housing which is an individual home which owner owns land but joined to adjacent unit by common walls |
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|
Term
|
Definition
| typically when subdivision owners own house but pay mandatory fees for neighborhood improvements |
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|
Term
|
Definition
| when existing structures are converted to residential use |
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|
Term
|
Definition
| example of converted use housing |
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|
Term
|
Definition
| multi use property with retail, office, entertainment and residential (on upper floors) |
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|
Term
|
Definition
| mobile homes are considered what type of housing |
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|
Term
| mobile homes/manufctured housing |
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Definition
| what type of housing has until recently made up a large portion of all new housing in Texas and are cheaper than single family, new models |
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|
Term
|
Definition
| prefabricated homes, assembled on site, cheaper than on site construction |
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|
Term
|
Definition
| multiple owners own time in same property but only have right to certain ties to use it |
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|
Term
housing type
physical appearances
amenities
location |
|
Definition
| initial decision factors for buying a residential home |
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|
Term
employment opportunities
cultural advantages
government services
social services
transportation |
|
Definition
| five factors influencing location desirability |
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|
Term
| availability of employment, proximity to work |
|
Definition
| what components of employment opportunities would influence location desirability? |
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|
Term
| recreation, sports, museums, universities |
|
Definition
| what components of cultural advantages opportunities would influence location desirability? |
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|
Term
|
Definition
| schools, city, and county government, police and fire |
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|
Term
|
Definition
| health care facilities, churches |
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|
Term
|
Definition
| availability to employment and cultural centers, congestion, mass transit |
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|
Term
mortgage terms
other ownership expenses such as PITI |
|
Definition
| pre-purchase considerations |
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|
Term
|
Definition
| interest only loans can be known as |
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|
Term
|
Definition
| PITI needs to be what percentage of borrower's gross, pre tax monthly income? |
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|
Term
|
Definition
| most common borrowing formula |
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|
Term
|
Definition
| all debt amendments (car/school/credit card) must be what percentage cumulative with PITI of borrower's gross pretax monthly income |
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|
Term
home sales price/annual rent ratio
length of time
transaction costs |
|
Definition
| rent or buy decision factors |
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|
Term
| home sales prices divided by annual rent ratio |
|
Definition
| rent or buy decision ratio |
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|
Term
| for the rent or buy decision ratio (home purchase price/annual rent), don't buy if above national average |
|
Definition
|
|
Term
appreciation
equity increase
tax advantages |
|
Definition
| 3 financial advantages of home ownership |
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|
Term
| as mortgage repaid monthly, principal amount decreases so net worth increases |
|
Definition
| describe equity increases |
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|
Term
| certain income tax deductions to encourage home ownership - NOT tax credits and only in certain tax brackets |
|
Definition
| what are the tax advantages of home ownership? |
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|
Term
[certain tax brackets
only if you itemize on tax return]
1. mortgage interest on primary and 2nd home
2. real estate property taxes
3. certain fees to obtain loan to purchase property |
|
Definition
| in what cases will income tax deductions for home ownerships apply? |
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|
Term
1. principle reductions
2. repairs and maintenance
3. insurance premiums
4. depreciation expenses on personal residence |
|
Definition
| what CANNOT be deducted for income tax purposes when buying a home? |
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|
Term
| married homeowners exclude up to $500K and single people $250K of capital gains from sale of principle residence if occupied @ least 2 of past 5 years |
|
Definition
| capital gains treatment from sale of principal residence |
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|
Term
|
Definition
| married homeowners exclude up to $____and single people ____ of capital gains from sale of principle residence if occupied @ least 2 of past 5 years |
|
|
Term
|
Definition
| created the treatment of capital gains in which married homeowners exclude up to $500K and single people $250K of capital gains from sale of principle residence if occupied @ least 2 of past 5 years |
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|
Term
| must occupy @ least 2 of past 5 years |
|
Definition
| how often can the 1997 tax act occur? |
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|
Term
|
Definition
| what act discusses capital gain treatment for sale of personal residence? |
|
|
Term
| most homeowners never have to pay capital gains taxes on house sales |
|
Definition
| result of the 1997 tax act regarding capital gains treatment? |
|
|
Term
indivisible premium
owner and guest coverage
coverage amounts and percentages |
|
Definition
| 3 characteristics of homeowner's insurance |
|
|
Term
| pay 1 premium which purchases insurance policy to cover many risks of owner-occupied property |
|
Definition
| what is an indivisible premium? |
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|
Term
|
Definition
| indivisible premium applies only those specified in policy |
|
|
Term
| owner and guest coverage - "slip and fall" |
|
Definition
| liability coverage that covers property owner but also provides protection to guests and even unwanted intruders |
|
|
Term
| covers improvements and fixture,s, personal property inside, NOT land |
|
Definition
| structure and contents of homeowner's insurance |
|
|
Term
|
Definition
| required to keep property insured for at least 80-90% of replacement cost |
|
|
Term
| to discourage insured's filing of small claims |
|
Definition
| purpose of deductible clauses |
|
|
Term
|
Definition
|
|
Term
|
Definition
| a larger deductible would result in a higher or lower premium? |
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|
Term
| provide replacement costs coverage and not actual cash value |
|
Definition
|
|
Term
| initial cost - depreciation |
|
Definition
| formula to determine actual cash value |
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|
Term
|
Definition
| replacement cost as a supplement to basic coverage would provide; |
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|
Term
glass breakge
replacemnet cost on personal proeprty
increased coverage on jewelry, art, valuables
covers students personal propriety while away from home in college |
|
Definition
|
|
Term
| structures (not unimproved land) |
|
Definition
| owners of ___what___ located in flood prone areas must obtain flood insurance if borrowing money from lender regulated by federal government |
|
|
Term
| if borrowing money from lender regulated by federal government |
|
Definition
| when must owners of structures located in flood prone areas obtain flood insurance? |
|
|
Term
| ALL structures (residential, commercial agricultural) |
|
Definition
| what types of structures have the requirement of flood insurance if located in flood prone areas and borrowing money? |
|
|
Term
| no, only if borrowing money to buy in that area |
|
Definition
| is it again the law to own property in flood prone area without flood insurance? |
|
|
Term
| brocour (wine dealer/bartender) |
|
Definition
| from what word does the term real estate broker come from? |
|
|
Term
employment
powers of attorney |
|
Definition
| how is a P-A relationship created? |
|
|
Term
broker/seller or buyer in a listing agreement
broker/salespersons or brokers |
|
Definition
| how is a P-A relationship created relative to employment and real estate? |
|
|
Term
|
Definition
| formal written authorization for 1 person to act for another person |
|
|
Term
general
special
durable general/durable special |
|
Definition
| types of Powers of Attorney |
|
|
Term
actual authority
implied authority |
|
Definition
|
|
Term
|
Definition
| types of actual authority |
|
|
Term
| P orders A to do certain things |
|
Definition
|
|
Term
|
Definition
| everything reasonably necessary to do the expressly authorized thing |
|
|
Term
| actual authority (express/implied) |
|
Definition
| real estate listing agreement is an example of what kind of authority? |
|
|
Term
|
Definition
| type of authority in which it appears to 3rd party that P has given A authority even if P didn't |
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|
Term
| if reasonable 3rd party could have believed that A had authority, then P is liable for A's actions |
|
Definition
| rule of apparent authority |
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|
Term
|
Definition
| situation in which Principle agrees to be liable for A's prior unauthroized actions |
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|
Term
mutual agreement
expiration of time period of agency
completion of duties
death of broker (depends)
NOT death of property owner |
|
Definition
| situations which would result in termination of agency |
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|
Term
|
Definition
| would the death of property owner result in termination of agency in Power of attorney? |
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|
Term
fiduciary duty/loyalty
best efforts
accounting
reasonable care
disclosure |
|
Definition
| duties of agent to principle |
|
|
Term
|
Definition
| when agent is placed in position of utmost trust and confidence by Principle, the Agent must show utmost loyalty, trust, and confidence as its duty to P |
|
|
Term
|
Definition
| duty of agent to principle in which the agent must follow P's orders unless illegal or unethical |
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|
Term
| never commingle principle's money with a's money, always be able to account for principle's money; deposit in escrow account within 2nd business day |
|
Definition
| duty of A to P of accounting |
|
|
Term
|
Definition
| how many days does a realtor have to deposit principle's money in a special bank account (escrow account)? |
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|
Term
|
Definition
| duty of agent to principal that involves competence in transaction |
|
|
Term
| agent must keep principle (seller) informed at all times about information that may affect P's decisions |
|
Definition
| duty of agent to principle of disclosure |
|
|
Term
compensation
reimbursement
indemnification
performance |
|
Definition
| duties of principal to agent |
|
|
Term
|
Definition
| duty of homeowner to realty when realtor has completed duties (duty of P to A) by finding a ready, willing, and able buyer |
|
|
Term
|
Definition
| duties of principle to agent in which the principal must repay expenses realtor incurs on his behalf |
|
|
Term
|
Definition
| if authorized expenses, what amount is reimbursed by the principle to the agent? what if not authorized? |
|
|
Term
|
Definition
| if realtor sued because owner's actions, owner will pay any damages realtor must pay while realtor was performing his duties |
|
|
Term
|
Definition
| duty that the principle must reasonable help agent (realtor) to do their job ie be available to receiver purchase offers, keep the house clean, etc |
|
|
Term
|
Definition
| physical property defect not discoverable by reasonable visual inspection by buyer |
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|
Term
latent defect
seller's broker/agent disclosure
buyer's agent/sub agent disclosure
intermediary |
|
Definition
| required disclosures (broker says to 3rd parties/buyers) |
|
|
Term
| realtor must give buyer information about services and if broker or agent represents owner, must tell buyer |
|
Definition
| seller's broker/agent disclosure |
|
|
Term
realtor must give seller Buyer's Representation Contract
if broker or agent represents buyer (buyers broker), must tell seller |
|
Definition
| buyer's agent/sub agent disclose requirements |
|
|
Term
|
Definition
| works with both buyer and seller but works for neither (go between) |
|
|
Term
| partially disclosed principle |
|
Definition
| if 3rd party knows manager is an agent but doesn't know who P is, then A is personally liable if P breaks k |
|
|
Term
| A is personally liable if P breaks k |
|
Definition
| when there is a partially disclosed principal, who is liable? |
|
|
Term
|
Definition
| if 3rd party doesn't or reasonably shouldn't know A is acting for P, then A is personally liable if P breaks contract |
|
|
Term
|
Definition
| if 3rd party knows or acting reasonably should know A is acting for P, then A is Not personally liable if P breaks K |
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|
Term
| boss is NOT liable for actions of an independent contractor |
|
Definition
|
|
Term
|
Definition
| if boss controls only the end result but not the method, worker is: |
|
|
Term
|
Definition
| would broker prefer sales agents to be employees or independent contractors? |
|
|
Term
|
Definition
| salespersons are generally independent contractors |
|
|
Term
| Texas real estate license act |
|
Definition
|
|
Term
protect public
prescribe minimum standards
maintain high standards
protect brokers and salespersons |
|
Definition
| purposes/results of TRELA |
|
|
Term
| Texas Real Estate Commision (TREC) |
|
Definition
| what organization administers TRELA? |
|
|
Term
| for others AND for compensation |
|
Definition
|
|
Term
broker's license
OR
licenses by Texas appraiser licensing board |
|
Definition
| requirements to appraise property |
|
|
Term
attorneys
hotel/motel personnel
onsite apartment mangers
auctioneers
employees who work only for person who sells or leases their own property |
|
Definition
| exemptions to licensing requirements |
|
|
Term
sells, purchases, rents or offers to sell, purchase, or rent
lists or negotiates to list another property for sale or lease
buys or leases or finds others to buy or lease real estate |
|
Definition
|
|
Term
US citizen
over 18
sponsoring broker
test
education |
|
Definition
| sales person requirements |
|
|
Term
operates own brokerage business
2 years experience as a salesperson |
|
Definition
|
|
Term
|
Definition
| listing agent and listing broker work for |
|
|
Term
| must be given at time of 1st contact with other party not represented by realtor |
|
Definition
| seller/buyer representation disclosure |
|
|
Term
|
Definition
| must real estate inspectors be licensed? |
|
|
Term
| licensed plumbers, electricians, and pest people who don't advertise as inspector |
|
Definition
| exclusions to licensing of real estate inspectors |
|
|
Term
| residential rental locators |
|
Definition
| somebody who offers to locate a unit for rental to a prospective tenant for a fee |
|
|
Term
|
Definition
| must residential rental locators be licensed? |
|
|
Term
| owners of property, on site property mangers |
|
Definition
| exclusions to licensing of residential rental locators |
|
|
Term
pay to broker not salesperson licensed in texas under trela
listing agreement in wirting
broker produced a buyer who wants to and is financially capable of buying |
|
Definition
| situations in which seller must pay brokerage commission |
|
|
Term
|
Definition
| realtor directly responsible for buyer buying |
|
|
Term
|
Definition
| realtor indirectly responsible for buyer buying |
|
|
Term
misrepresentation of square footage
silence when duty to speak |
|
Definition
| practices that would violate TDTPA (deceptive trade practices act) |
|
|
Term
3x economic damages
reasonable attorney's fees
if intentional, 3x mental anguish |
|
Definition
| punishment for violation of DTPA |
|
|
Term
puffing
broker didn't and couldn't have reasonably known about problem
settlement offer
as is` |
|
Definition
| defenses against TDTPA violation |
|
|
Term
| puffing; caveat emptor; let the buyer beware |
|
Definition
| terms for the defense used against DTPA violation punishment that regards salesmanship as only an opinion |
|
|
Term
| no unless experienced professional buyers |
|
Definition
| will the AS IS defense work against latent defects? |
|
|
Term
| written listing agreements |
|
Definition
| employment contract between seller and broker in which broker hired to sell, solicit, and present offers to buy |
|
|
Term
must be written
must be with licensed broker
determines how and when broker is paid |
|
Definition
| characteristics of listing agreements |
|
|
Term
| written listing agreements |
|
Definition
| determines how and when broker is paid |
|
|
Term
open
exclusive agency
exclusive right to sell
multiple listing
net listing |
|
Definition
| 5 types of listing agreements |
|
|
Term
|
Definition
| if broker finds buyer before owner or any other broker, broker paid commission |
|
|
Term
|
Definition
| owner may list with multiple brokers at same time in this type of listing agreement |
|
|
Term
| usually commercial transactions |
|
Definition
| open listings usually deal with what type of transactions |
|
|
Term
|
Definition
| type of listing usually dealing with commercial transactions |
|
|
Term
|
Definition
| type of listing agreement in which broker is only broker authorized to sell, but if owner finds buyer, broker gets no commission |
|
|
Term
|
Definition
| type of listing agreement in which broker is the only person who can negotiate sale so even if owner finds buyer, owner still pays broker commission |
|
|
Term
|
Definition
| type of listing agreemnt preferred by realtors |
|
|
Term
|
Definition
| most common type of listing agreement in residential deals |
|
|
Term
|
Definition
| is a multiple listing good or bad for seller? |
|
|
Term
|
Definition
| listings agreement in which brokers share their exclusive right to sell listings in exchange for split of commissions from sale |
|
|
Term
larger market exposure
maybe higher price
easier information source
faster selling time
larger inventory |
|
Definition
| advantages of a multiple listing agreement |
|
|
Term
broker must be licensed in tx
agreement must be in writing
broker produces ready, willing, and able buyer (unless exclusive right to sell, then paid even if owner finds buyer) |
|
Definition
| requirements for a seller to pay brokerage commissions |
|
|
Term
|
Definition
| valid contract between parties but enforceable by neither party |
|
|
Term
mutual assent
consideration
capacity of parties
legality of subject matter |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| shows meeting of the minds |
|
|
Term
|
Definition
| contract prohibiting offeror from revoking offer for a certain time period in case offeree wants to accept |
|
|
Term
|
Definition
| changes in contracts which must be initialed by both parties of the k |
|
|
Term
contracts for sale of land or interests therein
leases of land longer than 1 year
brokerage commissions before realtor to be paid
promises impossible to be performed within 1 year |
|
Definition
| contracts that must be in writing for real estate |
|
|
Term
| yes, possible to be completed in 1 year if person dies (lifetime) |
|
Definition
| can lifetime employment contracts be valid if oral not written? |
|
|
Term
must be written
signed by identifiable buyer and seller
intend to sell land
identifiable property |
|
Definition
| requirements of earnest money contracts/sale and purchase k |
|
|
Term
|
Definition
| contract must within itself or by reference to some other existing writing identify property with reasonable certainty |
|
|
Term
street address - won't work
courses and distances
metes and bounds - scientific
subdivision plats - most common
rural descriptions (more or less/same as) |
|
Definition
| types of legal descriptions |
|
|
Term
|
Definition
|
|
Term
|
Definition
| developer does perimeter metes and bounds descriptions of entire subdivision and then references internally |
|
|
Term
|
Definition
|
|
Term
| 1 mile by 1 mile, 640 acres |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| landowner could subdivide air above land such as in a condo or aerial tunnel |
|
|
Term
|
Definition
| point from which elevations are measured |
|
|
Term
| sea level in new york city harbor to calculate flood plains |
|
Definition
| what is the datum point in the US? |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| 640 acres or 1 mile x 1 mile |
|
|
Term
leases
listing agreements
real estate sales (earnest money) k's
options |
|
Definition
| types of written contracts used in real estate deals |
|
|
Term
purchase conditioned upon B's obtaining financing
third party financing vs. seller financing
assumption of Seller's payments |
|
Definition
| financial considerations of real estate k's |
|
|
Term
|
Definition
| refundable money deposited by buyer with 3rd party to show buyer serious about buying |
|
|
Term
|
Definition
| if seller breaches, what happens to earnest money |
|
|
Term
|
Definition
| what happens to earnest money if buyer breaches |
|
|
Term
|
Definition
| who pays for inspections? |
|
|
Term
| lead based paint disclosure |
|
Definition
| if house built pre 1978, what must the seller provide to buyer? |
|
|
Term
|
Definition
| option given to buyer to terminate contract during certain time period for any reason |
|
|
Term
financing
property condition
free look
title and survey |
|
Definition
| conditions and contingencies in a purchase contract |
|
|
Term
liquidated damages/earnest money
specific performance
sue for monetary damages |
|
Definition
| remedies if default on earnest money contract |
|
|
Term
|
Definition
| is earnest money a good buyer's or good seller's remedy? |
|
|
Term
|
Definition
| specific performance as a remedy for default would be a good remedy for which party? |
|
|
Term
| create an unbiased housing market |
|
Definition
| purpose of fair housing laws |
|
|
Term
|
Definition
| associated with racial discrimination |
|
|
Term
| can't discriminate based on handicap or disability or familial status |
|
Definition
| 1988 amendment to fair housing laws |
|
|
Term
| blockbusting/panic peddling |
|
Definition
| encouraging homeowners to sell by making representations that certain groups are moving into the neighborhood and driving down property values |
|
|
Term
|
Definition
| channeling home seekers to particular areas based on race, religion, national origin to maintain homogeneity |
|
|
Term
| texas commission on human rights |
|
Definition
| hears fair housing act complaints for us dept of housing and urban development in Texas |
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|
