Champions Real Estate - Principles 1 Exam 2023
(Principles of Real Estate I class study cards) A+
Graded
brokerage
the aspect of the real estate business that pertains to overseeing the needs of the parties and
completing a transaction; a brokerage transaction may or may not involve agency relationships
The role of a property manager
Generally responsible for the day to day operations of the property, maintenance, and tenant
relations
How are home inspectors licensed?
Home inspectors are licensed in Texas by TREC.
Real Estate Development
most often involves the acquisition of land for development into residential subdivisions, retail
centers and other commercial uses.
National Association of Realtors (NAR)
the nationwide association is divided into state associations, and further divided into local
associations or boards. The local associations or boards operate the MLS in markets throughout the
US.
The benefits of home ownership include:
Pride of Ownership, Occupancy, Tax Benefits, Investment, Security: POOTIS=m
Physical Characteristics of Land: Indestructibility
Indestructibility refers to the fact that land cannot be destroyed. The other two characteristics are
immobility and non-homogeneity (uniqueness)
Demand for real estate is affected by:
1. Growth in employment
2. Personal preference
3. Availability of credit
as well as transportation systems and Federal government policy
Common Law vs. Statutory Law
Common Law was developed in England and based on common sense and local custom; under this
system, a court looks to the findings of prior courts when rendering a decision
Statutory law is enacted by federal and state legislative bodies
What is the purpose of the Texas Real Estate Licensing Act (TRELA 1939)?
The purpose of TRELA is to protect the public against unscrupulous brokers and sales agents.
What is TREC (1949)?
, TREC was created by the state legislature in 1949. It has 9 members who carry out the provisions in
TRELA.
TREC has been granted powers by the Legislature to:
-File actions against a license holder on its own notion
-Assess admin. penalties of up to $5k per day against offending licensed and unlicensed officials
-Promulgate forms which are mandatory for license holders
- Suspend or revoke licenses of violators
-Subpoena books, records, witnesses and file suit with the AG to enforce subpoena
as well as issue licenses, enact rules and regulations, place a license holder on probation, require
education
Land
the surface of the earth extending downward to the center of the earth and upwards above the
surface extending to infinity; includes trees, crops and water
Rights to land are considered "severable"...
the ability for different individuals to own the different rights of the same piece of land
Surface Rights
The owner of surface rights has the ability to develop (improve) the surface, and to use resources
extracted from or near the surface including stone, gravel, water, and limestone.
Improvements are:
any man-made addition to the land that is permanent and considered to become part of the land
Personal Property
things of a temporary or movable nature that are not part of the real property; known as personalty
or chattel. If personal property is being transferred with real property, a bill of sale is used to
accomplish the transfer
Fixtures are:
Personal property that has become attached to the land.
The process of attaching personal property so that it becomes real property is called:
Annexation
Severance
removing fixtures to create personal property
The courts apply 3 tests to determine if something is a fixture. These include:
1. The intention of the parties when the item was installed
2. The method of attachment
and adaptation of the property
(Principles of Real Estate I class study cards) A+
Graded
brokerage
the aspect of the real estate business that pertains to overseeing the needs of the parties and
completing a transaction; a brokerage transaction may or may not involve agency relationships
The role of a property manager
Generally responsible for the day to day operations of the property, maintenance, and tenant
relations
How are home inspectors licensed?
Home inspectors are licensed in Texas by TREC.
Real Estate Development
most often involves the acquisition of land for development into residential subdivisions, retail
centers and other commercial uses.
National Association of Realtors (NAR)
the nationwide association is divided into state associations, and further divided into local
associations or boards. The local associations or boards operate the MLS in markets throughout the
US.
The benefits of home ownership include:
Pride of Ownership, Occupancy, Tax Benefits, Investment, Security: POOTIS=m
Physical Characteristics of Land: Indestructibility
Indestructibility refers to the fact that land cannot be destroyed. The other two characteristics are
immobility and non-homogeneity (uniqueness)
Demand for real estate is affected by:
1. Growth in employment
2. Personal preference
3. Availability of credit
as well as transportation systems and Federal government policy
Common Law vs. Statutory Law
Common Law was developed in England and based on common sense and local custom; under this
system, a court looks to the findings of prior courts when rendering a decision
Statutory law is enacted by federal and state legislative bodies
What is the purpose of the Texas Real Estate Licensing Act (TRELA 1939)?
The purpose of TRELA is to protect the public against unscrupulous brokers and sales agents.
What is TREC (1949)?
, TREC was created by the state legislature in 1949. It has 9 members who carry out the provisions in
TRELA.
TREC has been granted powers by the Legislature to:
-File actions against a license holder on its own notion
-Assess admin. penalties of up to $5k per day against offending licensed and unlicensed officials
-Promulgate forms which are mandatory for license holders
- Suspend or revoke licenses of violators
-Subpoena books, records, witnesses and file suit with the AG to enforce subpoena
as well as issue licenses, enact rules and regulations, place a license holder on probation, require
education
Land
the surface of the earth extending downward to the center of the earth and upwards above the
surface extending to infinity; includes trees, crops and water
Rights to land are considered "severable"...
the ability for different individuals to own the different rights of the same piece of land
Surface Rights
The owner of surface rights has the ability to develop (improve) the surface, and to use resources
extracted from or near the surface including stone, gravel, water, and limestone.
Improvements are:
any man-made addition to the land that is permanent and considered to become part of the land
Personal Property
things of a temporary or movable nature that are not part of the real property; known as personalty
or chattel. If personal property is being transferred with real property, a bill of sale is used to
accomplish the transfer
Fixtures are:
Personal property that has become attached to the land.
The process of attaching personal property so that it becomes real property is called:
Annexation
Severance
removing fixtures to create personal property
The courts apply 3 tests to determine if something is a fixture. These include:
1. The intention of the parties when the item was installed
2. The method of attachment
and adaptation of the property
