Texas Law of Contracts
Describe at least two requirements under TRELA.(Ans- Act created by Texas Congress 1) All professionals are licensed 2) Use same policy, procedures, and forms. Providing correct documentations and forms during a transaction. TREC wanted to get things standardized.TREC was created in 1949 and that's when it began administrating TRELA.Real Estate Dealers license Act was enacted in 1939 for salesperson and brokers. TRELA is the present act which is active and administered until present day.
Identify at least two actions that would be considered as unauthorized practice of law.(Ans- Unauthorized practice of law is strictly prohibited by law and in the state of Texas. 1) Drafting a contract or giving legal advice to your client 2) Modifying an existing TREC contract and using that in your sale; reusing the document for a purpose other than what it was created for.
Describe at least two duties of the broker-lawyer committee.(Ans- 1) Draft and edit promulgated forms set forth by TRELA 2) Suspending or revoking a real estate license. 3) Issuing real estate licenses to sales agents or brokers. Making sure latest contracts are available for agents. 6 real estate brokers, 6 attorney and 1 person from the public
List at least three promulgated contract forms and explain when the forms are used.(Ans- 1) One to four family residential contract (resale) - used in the buying or selling of a one to four unit residential property
2) Residential Condominium Contract (resale) - used for a resale of a condominium unit. 1 / 4
3) Farm and Ranch Contact - used for rural properties with metes and bounds in the description from a survey and contains provisions to deal with items that are relevant to farms and ranches that are not specifically addressed it other types of contracts.
Describe at the main purpose of the DTPA, and give at least one example of a violation.(Ans- DTPA was created to protect the public. To ensure the public is not fooled or deceived in sale, avoiding buyers remorse.
1) Providing prospective homeowners with false or invalid information based on condition and price.
2) Deceptively withholding from a sale or deceptively taking advantage of your principal.
Ethics (Ans- Moral principles that govern a person's or group's behavior.
Punitive Damages (Ans- Damages simply for the purpose of punishment.
Discuss the difference between land, real estate, and real property, and provide at least one example of each.(Ans- Land is the physical, natural land from the center of earth all the way up to space for a designated space. Real estate is anything which is physically attached to land. Anything with improvements. Real Property includes land, real estate, and the whole bundle of rights involved in owning property.
List at least two physical and economic characteristics of real property.(Ans- 1) Mineral rights 2) Water rights 3) Air rights and mining those rights based on the need. 2 / 4
Describe at least three forms of ownership in real property, and provide an example of each.(Ans- 1) Surface rights - trees and crops 2) Sub-surface - minerals and water 3) Air rights
List at least three forms of businesses that can own real property.(Ans- LLC, LLP, Corporations, LP
List at least four types of subdivisions.(Ans- Condominiums, Coops, Timeshares, and clustered housing
air rights (Ans- The rights in real property to the reasonable use of the air space above the surface of the land.
Annexation (Ans- Change personal property to real property, such as mixing sand, stone and cement, and making a sidewalk
area preference (Ans- When used in real estate situs is an economic term that refers to the
economic quality of a parcel of real estate. Situs consists of two factors: (1)
certain locations are more preferable than others; and (2) real estate is immobile — it cannot be moved.
assessment (Ans- In most areas, property taxes are governed by state law, but assessed and collected by the county on an ad valorem basis (ad valorem is Latin for "according to value"). They are calculated annually by applying a certain tax rate to the assessed value of the property.
beneficiary (Ans- One entitled to the benefit of a trust. 3 / 4
bundle of rights (Ans- The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property.
common elements (Ans- A common element is normally defined as all parts of the condominium other than the units. A limited common element is a common element that is restricted for the exclusive use of one or more but less than all of the unit owners.
community property (Ans- property owned jointly by a married couple.
condominium (Ans- A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property.
co-ownership (Ans- The co-owner of an asset owns a percentage, though the amount may vary according to the ownership agreement. The rights of each owner are typically defined in accordance with a contract or written agreement, which often includes treatment of revenue and tax obligations.
Cooperative (Ans- A form of ownership in which stock holders in a corporation occupy property owned by the corporation under a lease.
corporation (Ans- An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it. A corporation is a creature of law having certain powers and duties of a natural person. Being created by law it may continue for any length of time the law prescribes.
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