TX Real Estate flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Intermediary

A Texas broker who represents both buyer and seller in the same transaction with the written consent of both parties, treating each fairly without disclosing one party's confidential information to the other.

Fiduciary duties to principal

Care, obedience, accounting, loyalty, disclosure, and confidentiality, plus reasonable skill and diligence; these duties are owed to the client and continue until the agency relationship ends.

Designated agent

An associated license holder appointed by an intermediary broker to represent one party, allowing both buyer and seller to receive full representation from within the same brokerage.

Buyer representation agreement

A written contract between a buyer and a broker that establishes the agency relationship; Texas requires it to be in writing to be enforceable and it states the term and compensation.

Option fee

A nonrefundable payment from buyer to seller that buys an unrestricted right to terminate the contract within a set period; it is not credited toward the sales price.

Effective date

The date the last party signs and delivers the contract, accepting its terms; most deadlines in the TREC residential resale contract are measured from this date.

Earnest money delivery

Under the TREC one-to-four family resale contract, the buyer must deliver the earnest money to the escrow agent within three days after the effective date.

Promulgated contract forms

TREC-approved forms that license holders must use for most residential sales, leases, and addenda, unless a party's attorney prepared a different form.

Fee simple absolute

The highest and most complete form of ownership, of unlimited duration, freely transferable and inheritable, subject only to government powers and private encumbrances.

Easement by necessity

An implied easement allowing access to a landlocked parcel; it arises when a tract is separated from a public road and the owner has no other reasonable access.

Texas homestead acreage

Homestead protection covers up to 10 acres in a municipality or 100 rural acres for a single adult and 200 rural acres for a family, with no dollar value limit in Texas.

Community property presumption

In Texas, property acquired during marriage is presumed community property owned equally; separate property is acquired before marriage or by gift, inheritance, or partition.

PITI

The four components of a monthly mortgage payment: principal, interest, property taxes, and hazard insurance, often plus mortgage insurance and homeowners association dues.

Loan-to-value ratio

The loan amount divided by the property's value or sales price, whichever is lower; expressed as a percentage and used to set down payment and mortgage insurance requirements.

Texas home equity loan cap

Under Section 50(a)(6), a home equity loan on a Texas homestead may not exceed 80 percent of the property's value, and foreclosure requires a court order.

Closing Disclosure timing

Under TRID rules the borrower must receive the Closing Disclosure at least three business days before consummation, allowing time to review final loan terms and closing costs.

Security deposit return

In Texas a landlord must refund the deposit or provide a written itemized list of deductions within 30 days after the tenant vacates and gives a forwarding address.

Three-day notice to vacate

Texas requires a landlord to give a tenant at least three days' written notice to vacate before filing a forcible detainer suit for nonpayment of rent.

Trust account commingling

Mixing client or tenant funds with the broker's own money is prohibited; trust funds must be kept in a separate account and disbursed only as authorized.

Property management licensing

A Texas real estate license is generally required to lease or manage property for others for compensation, though narrow exemptions exist for owners and some on-site managers.

Acre to square feet

One acre equals 43,560 square feet; a square mile, or section, contains 640 acres, and a quarter section contains 160 acres.

Discount point cost

One discount point equals one percent of the loan amount and represents prepaid interest paid at closing to lower the note interest rate.

Texas transfer tax

Texas does not impose a state or local documentary transfer tax on real estate sales; only recording fees and certain statutory fees apply at closing.

Proration method

Texas closing statements commonly prorate items using actual days in a 365-day year, multiplying the annual amount by the days owned or occupied divided by 365.

Agricultural rollback tax

When Texas land receiving an agricultural appraisal changes to a non-agricultural use, the owner owes a rollback tax for three of the five preceding years plus interest.

Condominium resale certificate

Under the Texas Uniform Condominium Act a seller must deliver a resale certificate disclosing association finances and restrictions; late delivery can give the buyer a right to cancel.

Residential Construction Liability Act

Texas law requiring a homeowner to give the builder written notice and an opportunity to inspect and offer repairs before filing a construction defect lawsuit.

POA assessment foreclosure

Under Property Code Chapter 209 a property owners association must give notice and an opportunity to cure and may foreclose only for amounts meeting statutory thresholds.

IABS disclosure timing

The Information About Brokerage Services form must be provided at the first substantive communication about a transaction, with oral disclosure and prompt delivery as the fallback.

License renewal cycle

Texas real estate licenses are valid for two years and expire on the licensee's birthdate, requiring renewal and payment of fees before the expiration date.

Continuing education hours

Each two-year renewal requires 18 hours: 4 Legal Update I, 4 Legal Update II, 3 contract-related, 3 ethics, and 4 elective hours.

Sales agent apprenticeship education

New Texas sales agents must complete 90 hours of Sales Agent Apprenticeship Education before their first license renewal, covering core brokerage skills and Texas law.