Principles 1 Real Estate Champion
school EXAM
What are the 4 economic Characteristics of land - Answer- 1,Scarcity, 2,
Modification, 3,Fixity 4, Situs
Scarcity - Answer- Supply and demand, When there is shortage of something that
and individual wants the price goes up.
Situs - Answer- The location of the property or land from an economic not
geographic viewpoint. Preference people have based on location. Location Location
Location....
Ad Valorem Taxes - Answer- Taxes on real properties (according to value)
TRELA Texas Real Estate License Act - Answer- The purpose is to protect the public
against unscrupulous brokers.
TREC Texas Real Estate Commission - Answer- Created in 1949 Can assess
administrative penalties of up to $5000 per day against offending licensed and
unlicensed individuals
Improvement - Answer- Any man made addition to the land that is permanent and is
considered to become part of the land. Building, landscaping, fences, patios ect...
Fixture - Answer- Personal property that has become attached to the land in such a
way as to become real property
Severance - Answer- Removing fixtures by detaching them from real property or
uninstalling them
(should be removed prior to listing)..or 'does not convey'
Intention of the Parties - Answer- When an item was installed .. most important test
Method of Attachment - Answer- How the item was attached to the property
Adaptation to the property - Answer- How the item fits the property
Emblements - Answer- Annual crops produced with labor
Even though attached to the land the crop is personal property. Tenant will still be
allowed to harvest annual crop even if not in possession of the land
Townhomes - Answer- Sold as distinct living unit individual lot share common walls.
Owner of the townhome owns the property beneath the structure.
, Homeowners Insurance - Answer- A contract between the insurance company and
policyholder protection fire, wind, hail, theft, flood, vandalism, loss or damage to
contents, and personal liability (Hazards such as flood or windstorms are additional)
Factors that affect insurance premiums - Answer- 1;Age and Condition 2; The home
replacement cost 3; Location 4; Availability of local fire protection 5; The policy
claims history 6; The policyholder credit score
Agency - Answer- An agency relationship exists when one person (the agent) acts
for, or on-behalf of another person (the principal is known as the client). The principal
is one who hires the agent and gives authority to the agent. This relationship is a
fiduciary (trust) relationship
Universal Agency - Answer- Has full authority to conduct business on behalf of the
client. (power of Attorney
General Agency - Answer- Broker has agents that work for them. A general agent
may bind the principal, meaning that the agent may sign certain contracts and
agreements in the name of the principal. Agent can sign for the broker
Special Agency - Answer- (Most Limited) known as the 'limited agency'. The special
agent is NOT able to bind the principal because they are not allowed to sign or
accept any terms or conditions on behalf of the principal. A broker who sells directly
w/ a client (no agent under the broker). The listing agreement establishes a special
agency relationship between the broker and seller
Agent Duties - Answer- Obedience, Loyalty, Disclosure, Confidentiality, Accounting,
Reasonable care (OLD CAR)
Trust - Answer- Not A DUTY
Customer - Answer- When a potential buyer contacts an agent for information
regarding a property
Client - Answer- An agreement with broker and agency
Intermediary Relationships - Answer- Broker reps both the buyer and seller Broker
remains neutral and avoids negotiating. The broker must first get written consent of
both parties
Intermediary with appointments - Answer- The appointed associate will give advice
and opinion (which means negotiate) to their respective parties. The broker must
make the appointments in writing using the Intermediary Relationship Notice
Intermediary without appointments - Answer- Agent will have the opportunity to sell
their own listing
Disclosure of Representation - Answer- At first contact with a party to a potential
transaction a license holder must disclose to that party whom they represent (orally
or in writing at 1st contact)
school EXAM
What are the 4 economic Characteristics of land - Answer- 1,Scarcity, 2,
Modification, 3,Fixity 4, Situs
Scarcity - Answer- Supply and demand, When there is shortage of something that
and individual wants the price goes up.
Situs - Answer- The location of the property or land from an economic not
geographic viewpoint. Preference people have based on location. Location Location
Location....
Ad Valorem Taxes - Answer- Taxes on real properties (according to value)
TRELA Texas Real Estate License Act - Answer- The purpose is to protect the public
against unscrupulous brokers.
TREC Texas Real Estate Commission - Answer- Created in 1949 Can assess
administrative penalties of up to $5000 per day against offending licensed and
unlicensed individuals
Improvement - Answer- Any man made addition to the land that is permanent and is
considered to become part of the land. Building, landscaping, fences, patios ect...
Fixture - Answer- Personal property that has become attached to the land in such a
way as to become real property
Severance - Answer- Removing fixtures by detaching them from real property or
uninstalling them
(should be removed prior to listing)..or 'does not convey'
Intention of the Parties - Answer- When an item was installed .. most important test
Method of Attachment - Answer- How the item was attached to the property
Adaptation to the property - Answer- How the item fits the property
Emblements - Answer- Annual crops produced with labor
Even though attached to the land the crop is personal property. Tenant will still be
allowed to harvest annual crop even if not in possession of the land
Townhomes - Answer- Sold as distinct living unit individual lot share common walls.
Owner of the townhome owns the property beneath the structure.
, Homeowners Insurance - Answer- A contract between the insurance company and
policyholder protection fire, wind, hail, theft, flood, vandalism, loss or damage to
contents, and personal liability (Hazards such as flood or windstorms are additional)
Factors that affect insurance premiums - Answer- 1;Age and Condition 2; The home
replacement cost 3; Location 4; Availability of local fire protection 5; The policy
claims history 6; The policyholder credit score
Agency - Answer- An agency relationship exists when one person (the agent) acts
for, or on-behalf of another person (the principal is known as the client). The principal
is one who hires the agent and gives authority to the agent. This relationship is a
fiduciary (trust) relationship
Universal Agency - Answer- Has full authority to conduct business on behalf of the
client. (power of Attorney
General Agency - Answer- Broker has agents that work for them. A general agent
may bind the principal, meaning that the agent may sign certain contracts and
agreements in the name of the principal. Agent can sign for the broker
Special Agency - Answer- (Most Limited) known as the 'limited agency'. The special
agent is NOT able to bind the principal because they are not allowed to sign or
accept any terms or conditions on behalf of the principal. A broker who sells directly
w/ a client (no agent under the broker). The listing agreement establishes a special
agency relationship between the broker and seller
Agent Duties - Answer- Obedience, Loyalty, Disclosure, Confidentiality, Accounting,
Reasonable care (OLD CAR)
Trust - Answer- Not A DUTY
Customer - Answer- When a potential buyer contacts an agent for information
regarding a property
Client - Answer- An agreement with broker and agency
Intermediary Relationships - Answer- Broker reps both the buyer and seller Broker
remains neutral and avoids negotiating. The broker must first get written consent of
both parties
Intermediary with appointments - Answer- The appointed associate will give advice
and opinion (which means negotiate) to their respective parties. The broker must
make the appointments in writing using the Intermediary Relationship Notice
Intermediary without appointments - Answer- Agent will have the opportunity to sell
their own listing
Disclosure of Representation - Answer- At first contact with a party to a potential
transaction a license holder must disclose to that party whom they represent (orally
or in writing at 1st contact)
