Exam For Texas Real Estate Principles 1
Questions and Answers 2024
There are seven sources of law in the United States, What would be an example
of them?
Local zoning laws, FHA/VA regulations, court decisions
Laws passed by Congress and various other various state legislatures may
Authorize agencies to pass rules and regulations to enforce the provisions of law
The legal concept of precedent
Grew out of common law
Constitutional provisions
Establish the rights of citizens and delineate government authority
Real estate laws
werte passed to protect the public from possible fraud, dishonesty, and incompetence of
unscrupulous brokers and sales agents
Common Law
Includes both custom and court decisions in application today
A public library is an example of
Special-purpose real estate
Value is best defined as
A measure of the present worth of future benefits as perceived by each person
The factors that influence the demand for real estate include
Wage levels and employment opportunities
A factor that affects supply in the real estate market is
construction costs
The real estate market is considered local in character because
Land is fixed or immobile
In general, when the supply of a certain commodity increases
prices tend to drop
Price is best defined as
the amount a buyer agrees to pay and a seller agrees to accept
Compared with typical markets, the real estate market
is relatively slow to adjust because of its nonhomogeniety and its immobile
characteristics
In general terms, the term market refers to
a place where buyers and sellers come together to establish prices
An improvement is
an example of economic characteristic
The term area preference refers to
an economic characteristic of land
The term non homogeneity refers to
the fact that no two parcels of land are exactly alike
Relative scarcity implies that
,land available for development may be in short supply in some areas
Abandonment
The voluntary surrender or relinquishment a position of real property with the intention
of terminating one's position or interest but without the vesting of this interest in any
other person, such as when a person moves and abandons leased property before the
lease term has expired.
Abatement
Elimination or reduction of realistic taxes to attract new business to an area
Abstract of title
The condensed history of a title to a particular parcel of real estate, consisting of a
summary of the original grant and all subsequent conveyances andand encumbrances
affecting the property and a certification by the abstracter that the history is complete
and accurate.
Abstract of title with lawyers opinion
An abstract of title that a lawyer has examined and has certified to be, in his opinion, an
accurate statement of fact.
Acceleration clause
The clause in a mortgage or trust deed or note that can be enforced to make the entire
amount of principle and interest due immediately if the mortgagor defaults on an
instalment payment or other covenant.
Accession
Acquiring title to additions or improvements to real property as a result of the annexation
of fixtures or the accretion of alluvial deposits along the banks of streams.
Accretion
The increase or addition of land by the deposit of Sand or soil washed-up naturally from
a river, lake, or sea.
Accrued items
On a closing statement, items of expense that are incurred but not yet payable such as
an interest on a mortgage loan or taxes on real property.
Acknowledgement
A formal declaration before a notary public or other authorised public officer that
authenticates signatures on the document for the purpose of recording.
Acre
A measure of land equal to 43,560 ft.² , 4840 yd.² , 4047 m² , 160 square rods or 0.4047
Hectare
Actual eviction
The result of legal action originated by lessor whereby a defaulted tenant is physically
ousted from the rented property pursuant to a court order.
Actual notice
Express information or fact; that which is known; direct knowledge
Adjustable rate mortgage
(ARM) A mortgage loan in which the interest rate may increase or Decrease at specified
intervals over the life of a loanloan
Adjusted sales price
For income tax purposes, the actual sales price reduced by allowable sales expenses
Administrator / administratrix
, A man or a woman appointed by the court to settle the estate of a deceased person
when there is no will; contrast with executor or executrix.
Ad valorem tax
A tax levied according to value; generally used to refer to real estate tax
Adverse possession
The actual, visible, hostile, notorious, exclusive and continuous possession of another's
land under a claim of title. Possession for a statutory period may be a means of
acquiring title.
Agency
The relationship between the principal and agent wherein the agent is authorised to
represent the principle in certain transactions.
Agency by ratification
An agency relationship that is established after the fact.
Agent
One who acts or has the power to act for another. A fiduciary relationship is created
under the law of agency when a property owner, as the principal, executes a listing
agreement or management contract authorising a licensed real estate broker to be her/
his agent.
Air lot
A designated airspace over a piece of land. and air lot, Like surface property may be
transferred.
Air rights
The rights to use the open space above a property generally allowing the surface to be
used for another purpose.
Alienation
The act of transferring property to another. Alienation may be voluntary, such as by gift
or sale or involuntary As by eminent domain or adverse possession.
Alienation clause
The clause in a mortgage or deed of trust stating that the balance of the secured debt
becomes immediately due and payable at the mortgagees option if the property is sold
by the mortgagor. In effect, this clause prevents the mortgagor from assigning in the
debt without the mortgagee's approval; also called a due-on-sale Clause
Allodial system
A system of land ownership in which land is held free and clear of any rent or service
due to the government; commonly contrasted with the feudal system in the United
States, land is held under the allodial system
Americans with disabilities act
A federal law to eliminate discrimination against individuals with disabilities by
mandating equal access to jobs, public accommodations, government services, public
transportation and telecommunications.
Amortization
A loan in which the principal as well as the interest is payable in monthly or other
periodic instalments over the term of the loan
Amount realized on sale
The amount of gain or profit subject to the income tax
Antitrust laws
Questions and Answers 2024
There are seven sources of law in the United States, What would be an example
of them?
Local zoning laws, FHA/VA regulations, court decisions
Laws passed by Congress and various other various state legislatures may
Authorize agencies to pass rules and regulations to enforce the provisions of law
The legal concept of precedent
Grew out of common law
Constitutional provisions
Establish the rights of citizens and delineate government authority
Real estate laws
werte passed to protect the public from possible fraud, dishonesty, and incompetence of
unscrupulous brokers and sales agents
Common Law
Includes both custom and court decisions in application today
A public library is an example of
Special-purpose real estate
Value is best defined as
A measure of the present worth of future benefits as perceived by each person
The factors that influence the demand for real estate include
Wage levels and employment opportunities
A factor that affects supply in the real estate market is
construction costs
The real estate market is considered local in character because
Land is fixed or immobile
In general, when the supply of a certain commodity increases
prices tend to drop
Price is best defined as
the amount a buyer agrees to pay and a seller agrees to accept
Compared with typical markets, the real estate market
is relatively slow to adjust because of its nonhomogeniety and its immobile
characteristics
In general terms, the term market refers to
a place where buyers and sellers come together to establish prices
An improvement is
an example of economic characteristic
The term area preference refers to
an economic characteristic of land
The term non homogeneity refers to
the fact that no two parcels of land are exactly alike
Relative scarcity implies that
,land available for development may be in short supply in some areas
Abandonment
The voluntary surrender or relinquishment a position of real property with the intention
of terminating one's position or interest but without the vesting of this interest in any
other person, such as when a person moves and abandons leased property before the
lease term has expired.
Abatement
Elimination or reduction of realistic taxes to attract new business to an area
Abstract of title
The condensed history of a title to a particular parcel of real estate, consisting of a
summary of the original grant and all subsequent conveyances andand encumbrances
affecting the property and a certification by the abstracter that the history is complete
and accurate.
Abstract of title with lawyers opinion
An abstract of title that a lawyer has examined and has certified to be, in his opinion, an
accurate statement of fact.
Acceleration clause
The clause in a mortgage or trust deed or note that can be enforced to make the entire
amount of principle and interest due immediately if the mortgagor defaults on an
instalment payment or other covenant.
Accession
Acquiring title to additions or improvements to real property as a result of the annexation
of fixtures or the accretion of alluvial deposits along the banks of streams.
Accretion
The increase or addition of land by the deposit of Sand or soil washed-up naturally from
a river, lake, or sea.
Accrued items
On a closing statement, items of expense that are incurred but not yet payable such as
an interest on a mortgage loan or taxes on real property.
Acknowledgement
A formal declaration before a notary public or other authorised public officer that
authenticates signatures on the document for the purpose of recording.
Acre
A measure of land equal to 43,560 ft.² , 4840 yd.² , 4047 m² , 160 square rods or 0.4047
Hectare
Actual eviction
The result of legal action originated by lessor whereby a defaulted tenant is physically
ousted from the rented property pursuant to a court order.
Actual notice
Express information or fact; that which is known; direct knowledge
Adjustable rate mortgage
(ARM) A mortgage loan in which the interest rate may increase or Decrease at specified
intervals over the life of a loanloan
Adjusted sales price
For income tax purposes, the actual sales price reduced by allowable sales expenses
Administrator / administratrix
, A man or a woman appointed by the court to settle the estate of a deceased person
when there is no will; contrast with executor or executrix.
Ad valorem tax
A tax levied according to value; generally used to refer to real estate tax
Adverse possession
The actual, visible, hostile, notorious, exclusive and continuous possession of another's
land under a claim of title. Possession for a statutory period may be a means of
acquiring title.
Agency
The relationship between the principal and agent wherein the agent is authorised to
represent the principle in certain transactions.
Agency by ratification
An agency relationship that is established after the fact.
Agent
One who acts or has the power to act for another. A fiduciary relationship is created
under the law of agency when a property owner, as the principal, executes a listing
agreement or management contract authorising a licensed real estate broker to be her/
his agent.
Air lot
A designated airspace over a piece of land. and air lot, Like surface property may be
transferred.
Air rights
The rights to use the open space above a property generally allowing the surface to be
used for another purpose.
Alienation
The act of transferring property to another. Alienation may be voluntary, such as by gift
or sale or involuntary As by eminent domain or adverse possession.
Alienation clause
The clause in a mortgage or deed of trust stating that the balance of the secured debt
becomes immediately due and payable at the mortgagees option if the property is sold
by the mortgagor. In effect, this clause prevents the mortgagor from assigning in the
debt without the mortgagee's approval; also called a due-on-sale Clause
Allodial system
A system of land ownership in which land is held free and clear of any rent or service
due to the government; commonly contrasted with the feudal system in the United
States, land is held under the allodial system
Americans with disabilities act
A federal law to eliminate discrimination against individuals with disabilities by
mandating equal access to jobs, public accommodations, government services, public
transportation and telecommunications.
Amortization
A loan in which the principal as well as the interest is payable in monthly or other
periodic instalments over the term of the loan
Amount realized on sale
The amount of gain or profit subject to the income tax
Antitrust laws
