Texas Real Estate Principles 1 Trec Commision Membership - ✔-9 Members (6 brokers, 3 public) appointed by governor. They serve 6 year staggered term. Texas Real Estate Borker Lawyer Committee - ✔-13 Members (6 brokers, 6 lawyers, 1 public) General Eligibility Requirements to be Licensed by TREC - ✔-18 years old a US citizen or lawfully admitted alien resident of the state A certificate is required seperate of the license when - ✔-buying, selling or leasing an easement pertaining to telecommunicaton, utility, railroad or pipeline services. Payments into Trust Account - ✔-ensures the availibility of a sufficient amount to pay on anticipated claims on the trust account A commission may suspend or revoke a license for - ✔-acting negligently or incompetently, comingling money and soliciting or selling offers for the sale of real estate by means of a lottery An appeal can be made on a decision by the commission - ✔-it must be taken to the district court in the county where the administrative hearing was held. When dealing with a client it is mandatory to give them - ✔-A copy of the "Information about brokerage services" form The three Canons for professional ethics and conduct for Real Estate Licensees - ✔Fidelity, Integrity, Competency Under what circumstances can a person be called a "Realtor?" - ✔-That agent has to join the "NAR" National Association of Realtors to be called a "Realtor" What was the Fair Housing Laws or Civil Rights Act of 1866 - ✔-FEDERAL LAW that where the only protected class was Race. No one can discriminate because of RACE. Civil Rights Act of 1968 - ✔-Amended the Civil Rights Act of 1866 to include race, color, national origin, religion, Civil Rights Act of 1974 - ✔-Amended to include Sex (Male or Female)
Civil Rights Act of 1988 - ✔-Amended to include Handicap and Familial status Define Handicapped - ✔-having a physical or mental disability (including hearing, mobility, visual impairment, chronic mental illness and AIDS) that substantially limits one or more major life activities. Steering - ✔-Illigal practice of directing home seekers to a particular neighborhood based on fair housing protected classes. An agent cannot steer even if asked to by their client. If a seller asks agent to discriminate - ✔-agent must refuse to take the listing ADA Americans with Disabilities Act - ✔-enacted in 1992 deals with commercial property only Personal Property - ✔-Things not attached to the land Chattel - ✔-also known as Personal Property How is Personal Property sold - ✔-Bill of Sale Classification of plants (Annual or fructus industrials or emblements) - ✔-Personal Property Appurtenances - ✔-right or privilidge to land that goes with the land when ownership changes such as parking lot spaces, easements, right or ways Fixture - ✔-was personal property but then became real estate because it has been attached to the land Tests of a fixture - ✔-method of attachment (annexation) Fitness or adaptation to property Intention of the parties Trade fixture - ✔-attached to the property under a commercial lease Riparian Rights - ✔-rights to anothers land who borders a stream or river Littoral Rights - ✔-rights to anothers land who borders a lake Accretion - ✔-land is increased in size because of natural deposit of rock and soil usually caused by water movement Alluvion - ✔-the land that has been created by Accretion
Reliction - ✔-dry land that results when water withdraws from the land Avulsion - ✔-suddent removal of land by water Erosion - ✔-the gradual wearing away of land and rock by water Physical Characteristics of land - ✔-immobility indestructibility nonhomogeneity economic characteristics of land - ✔-scarcity, modification, improvements, permanence of investment, area preference. Situs - ✔-Area Preference Four types of legal descriptions of land - ✔-Metes and Bounds Rectangular survey system recorded plats reference to documents other than maps metes and bounds - ✔-legal land description most used in the US using distance and direction to define and describe the boundaries of a property Rectangular survey system - ✔-legal land description using latitude, longitude lines, standard parallels and base lines to divide the earth into ares How many acres in each square mile - ✔-640 How many square feet in an acre - ✔-43560 square feet Recorded plat - ✔-Legal land description which divides larger plats into smaller plots. When land is divided in lots. Police Power - ✔-in real estate applies to planning laws, building codes, fire codes, rent control and health codes. Eminent Domain - ✔-government can take privately owned real estate for public use condemnation - ✔-the process of eminent domain Escheat - ✔-When one dies without a will or heirs the government takes it as it no longer has an owner basically going back to the state.
Fee Simple - ✔-highest and greatest type of ownership interest (Title) that can be held in real property. Bundle of Rights or Bundle of Sticks - ✔-the many rights the Fee Simple gives to owners of property-bundles or sticks can be removed but the owner still owns the Fee Simple Encumbrance - ✔-When under Fee Simple one of the sticks or bundles has been removed. Ie. mineral rights, lien, encroachment, easement etc freehold estate - ✔-An estate in land, fee simple, the most common ownership Dower rights - ✔-right a wife has to her husbands estate upon his death curtsey rights - ✔-right a husband has to his wifes estate upon her death fee simple defeasable - ✔-a gift of land by a person or GRANTOR Life Estate - ✔-an estate in land for the duration of someones life (always a gift of land/ real estate) Homestead - ✔-Texas is a Homestead State. The property that you own and live in. It is a constitutional right that cannot be waived. Urban homestead - ✔-homestead limited to 10 acres rural homestead - ✔-limited to 200 acres for a married couple 100 for a single person easement - ✔-right of one person to use the property that belongs to another types of easements - ✔-gross necessity perscription appurtenant easement by necessity - ✔-easement given when one property is landlocked and needs to be given access to from someone elses land Easement in gross - ✔-is a utility easement easement by prescription - ✔-easement granted after dominant estate has used the property in a constant continuous and open manner for a prescribed number of years
Easement appurtenant - ✔-used between two lots to allow the owner of one lot to cross the others property deed restrictions/covenents - ✔-put into place by developer and are a private control of property Encroachments - ✔-something that extends across a property line onto the property of another Liens - ✔-legal claim on someones property as a security for a debt Types of liens - ✔-mortgage, property tax lien, mechanics lien, judgement and can be voluntary or involuntary and are either specific or general License - ✔-personal priviledge given to someone to use land-not an estate or right to land Estate of Severalty - ✔-sole ownership of property-not part of community property Tenents in common - ✔-two or more people acquire property but ownersship is not equal Joint tenancy - ✔-ownership in property where owners own equal shares and has right of suvivorship-cannot be passed on to others upon their death, cannot be sold or given away either-last surviving owner takes property in severalty right of suvivorship - ✔-in joint tenancy if one partner dies his share goes to the remaining partners conditions upon which a joint tenancy can be made - ✔-there must be unity in time, title, interest and possession time-acquire ownership at the same time tile-acquire title from same source interest-equal interest in property possession-all owners have right to possess property Tenancy by entirety - ✔-form of ownership used by married couples who do not live in a state with community property-has downer and curtesy rights community property - ✔-Texas is a community property state. Partnerships - ✔-General and Limited LLC Limited Liability Corp. - ✔-blends partnership and corp.
corporation - ✔-owned by a group of people-owned by stockholders REIT Real Estate Investment Trust - ✔-many people can come together and invest in real estate-investors are the beneficiaries who buy shares in the company (beneficial interest)-income tax is only paid at the beneficiaries level Deed - ✔-a written document that transfers real estate from one owner to another Statute of Frauds - ✔-law that requires some documents (deeds included) to be in writing and signed in order to be enforceable by law grantor - ✔-person giving up ownership consideration - ✔-something of value (dollar amount) habendum clause - ✔-Fee Simple, Life Estate, Defeasable Fee (begins with to have and to hold) does grantee need to sign deed - ✔-NO Jurat - ✔-person signing the document states the info in doc is true (notary public) The deed - ✔-must be delivered and accepted for tilte to transfer Types of deeds - ✔-General Warrenty-best deed in Texas (grantor gives no defects to title) Special Warrenty-used in commercial trans saying owner has done nothing to encumber the title during ownership bargain/sale-no warrenties against encumbrances quitclaim-in divorce gives rights to the property to the other spouse Deed in trust - ✔-delivers ownership of property at another date Two ways to record a Deed - ✔-occupying/using the land recording docs pertaining to property with county clerks office constructive - ✔-recording deed with county clerks office actual notice of anothers interest in property - ✔-what heard, seen and read all documents concerning real estate - ✔-must be recorded at county clerks office in the county where the property is located
Lis penden index - ✔-list any lawssuits on property and gives any attachements to theproperty Marketable title - ✔-title that is free from doubt as to who owns theproperty good and indefeasable title - ✔-a title that cannot be defeated by a superior claim chain of title - ✔-everyone who has ever owned that property abstract title - ✔-condensed history of all docs that have been recorded affecting the title of the property title insurance - ✔-policy that will insure against losses from title defects and against errors in title examination title commitment - ✔-states what the title covers and does not cover quiet title suit - ✔-court holds hearings on ownership of propertyand any invalid claims or disputes will be removed by the court mortgagees title police - ✔-lenders policy and loan policy Texas Board of Insurance - ✔-set insurance premiums based on the sale price of property and is paid at closing of property Alienation - ✔-transfer of ownership of property type of alientation - ✔-voluntary and involuntary Adverse Possession - ✔-when one person takes possession of anothers land and holds that possession for a long enough period of time tobe able to make it theirs and take ownership of it Tracking - ✔-claimant can track the time they had possessed the property onto the time the prior claimant possessed the property dedicaton - ✔-gifted private property to the public (land to city that is to be used as a park) testate - ✔-person who dies leaving a will intestate - ✔-person who dies without a will devise - ✔-real estate left in a will
probate court - ✔-determines if the will meets the requirement of the law administrator - ✔-person who administers the wishes of a will assigned by the court in the event the executor is not will to perform holographic will - ✔-handwritten will codicil - ✔-a written addition to a will the replaces or revokes what was written in that persons previous will All contracts - ✔-expressed-writing or oral OR implied-understanding bilateral contract - ✔-promised for a promise (real estate contract) unilateral contract - ✔-a promise in exchange for an act (option paragraph in a sales contract) executor contract - ✔-contract in the process of being performed contracts are - ✔-valid, void (made for illegal purposes) voidable (binding against one party but not the other) unenforceable (oral listing agreement) Five elements that make a contract valid - ✔-competent parties, legal objective, offer andacceptance, contract in writing and signed the only contract that does not have to be in writing to be enforceable - ✔-a lease for one year or less a person holding a power of attorney - ✔-Attorney in Fact Novation - ✔-substitution of a contract with another contract ie. counteroffer breached - ✔-when one party fails to perform the duties of the contract-they can be asked by judge to partially perform or substatially perform earnest money - ✔-money offered to seller to entice seller to go under contract equitable title - ✔-gives buyer the right to demand legal title to the property when the purchase price is paid
contract for deed/installment contract - ✔-seller financing and buyer does not get deed until the property has been paid for in full if property was built before 1978 seller must disclose - ✔-that the property may contain lead based paint-Federal Law