Principles of real estate I (Champions) Questions and Correct Answers 2024/2025

Principles of real estate I (Champions) Questions and Correct Answers 2024 Subsurface rights - Answer -Rights that include ownership of oil, gas and other minerals Surface and air rights - Answer -Rights that are conveyed in a cell tower lease Improvement - Answer -Any permanent man-made addition to the land Personal property - Answer -Things of a temporary, movable nature Modular homes - Answer -Factory-built housing built to local building codes Riparian rights - Answer -Rights that an owner has to use water from a river or stream on or next to a property Littoral rights - Answer -Rights that an owner has to use water from a lake, ocean or sea on or next to property Accretion - Answer -Addition to the land by the action of water. Alluvion - Answer -The soil added to land by accretion Avulsion - Answer -Land washed away from one property and deposited to another Reliction - Answer -Recession of water and appearance of dry land Prior appropriation - Answer -Theory of water law based on "first in time is first in right" Personalty - Answer -Personal property. Also called chattel Annexation - Answer -Process of attaching personal property so it becomes real property Severance - Answer -Process of removing fixtures to create personal property Emblements - Answer -Annual crop, considered to be personal property. Manufactured home - Answer -Home built in a factory according to federal building code administered by HUD. Modular home - Answer -Home built in a factory; complies with local building codes Bundle of rights - Answer -Rights associated with th ownership of real property Severable - Answer -Surface, surface and air rights are said to be this.Air rights - Answer -Commonly leased or conveyed in cell tower leases, condos and outdoor advertising. Capital gain - Answer -Gain on the sale of an asset for the seller Agency - Answer -Any relationship in which one party acts for or represents another Agent - Answer -A person authorized to act for another Client - Answer -Another name for principal. Party represented by the agent License holder - Answer -Person who has the legal authority to act as a broker or sales agent in a real estate transaction. DTPA - Answer -Deceptive trade practices act, a Texas consumer protection law Universal agency - Answer -agent has full authority to act on behalf of client General agency - Answer -agent has the right to repr sent a principal in a particular type of transaction (ie property manager) Special agency - Answer -Agent may only perform limited duties for the principal. The most limited agency. OLDCAR - Answer -Agent's duties to principal: obedience, loyalty, disclosure, confidentiality, accounting, reasonable care Express authority - Answer -Written or oral instructions to agent from principal Implied agency - Answer -Relationship created by the parties Ostensible agency - Answer -Actions lead another person to assume that one is an agent Agency by ratification - Answer -An agent acts without prior authorization and the principal accepts it Agency coupled with an interest - Answer -License holder is the owner of a property being sold or is interested in a property. Intentionally - Answer -Actual awareness or flagrant disregard of prudent and fair business practices Knowingly - Answer -Actual awareness of a falsity, deception or unfairness of an act Agency relationship - Answer -Exists when one person (agent) acts for or on ehalf of another person (principal) Fiduciary - Answer -Relationship is based on trust Cooperative - Answer -Broker selling the listing of another brokerEEOC - Answer -Equal employment opportunity commission. Investigates allegations of discrimination and enforces state and federal laws DTPA - Answer -Deceptive trade practices act, passed in 1973. Allows customer to sue seller of goods for damages Steering - Answer -Steers buyers or renters to or away from an area based on race, religion, etc. also called channel