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Texas Principles of Real Estate 1 (rated 100% correct).
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Texas Principles of Real Estate 1 (rated 100% correct).
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Texas Principles of Real Estate 1 (rated100% correct).
Real Estate Broker ANS -A person or an organization acting as the agent for others in negotiating the
purchase and sale of real property or other commodities for a fee.
Real Estate Salesperson ANS -A person performing any of the acts included in the definition of real
estate broker but while associated with and supervised by a broker.
Value ANS -The present worth of future benefits.
Price ANS -The amount a purchaser agrees to pay and a seller agrees to accept under the circumstances
surrounding a transaction.
Cost ANS -The total dollar expenditure for labor, materials, and other items related to construction.
Principal ANS -The employer of an agent.
Agent ANS -A person authorized to act on behalf of another.
Customer ANS -The party the agent brings to the principal as seller or buyer of the property.
Market Comparison Approach ANS -A means of comparing similar type properties, which have recently
sold, to the subject property. Commonly used in comparing residential properties.
Cost Approach ANS -An analysis in which a value estimate of a property is derived by estimating the
replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then
adding the market value of the land.
Income Approach ANS -One of the three methods of the appraisal process generally applied to income
producing property, and involves a three-step process - (1) find net annual income, (2) set an
,appropriate capitalization rate or "present worth" factor, and (3) capitalize the income dividing the net
income by the capitalization rate.
Assessed Value ANS -A valuation placed upon a piece of property by a public authority as a basis for
levying taxes on the property.
Insured Value ANS -The cost of replacing a structure completely destroyed by an insured hazard.
Depreciated Value ANS -The basis of a depreciable asset used to compute the taxable gain from its sale;
the basis is acquisition cost plus capital improvements less accrued depreciation.
Land ANS -The material of the earth, whatever may be the ingredients of which it is composed, whether
soil, rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards
as well as downwards. A bundle of rights ex) surface rights, underlying soil and attached to it, mineral
rights, air rights, anything attached to it, all the way up and all the way down to the center of earth..very
specific
Real Estate ANS -Land and everything permanently attached to land. Everything including eveything
permanently attached to it by man; well, sewer, infracture, house. Not the rights just everything
attached to it.
Real Property ANS -The aggregate of rights, powers, and privileges conveyed with ownership of real
estate. Includes everything
Personal Property ANS -All property that is not land and is not permanently attached to land; everything
that is movable.
Bundle of Rights ANS -The rights of an owner of a freehold estate to possession, enjoyment, control,
and disposition of real property. Sub-surface, surface, and aerial rights, and water rights.
Mineral Rights ANS -The landowner's ability to take minerals from the earth or to sell or lease this right
to others.
, Air Rights ANS -The landowner's ability to Reserve air space above the property
Riparian Rights ANS -A system for allocating water among those who possess land along its path. It has
its origins in English common law. Riparian water rights exist in many jurisdictions with a common law
heritage, such as Canada, Australia, and states in the eastern United States. Water rights
Land Rights ANS -Everything attached to the land naturally which can be mined or extracted.
Chattel ANS -All property that is not land and is not permanently attached to land; everything that is
movable.
Emblements ANS -The crops and other annual plantings considered to be personal property of the
cultivator.
Fixtures ANS -Personal property that has become real property by having been permanently attached or
adapted to real property.
Trade fixtures ANS -Items that are installed by a commercial tenant and are removable upon
termination of the tenancy.
Identify four types of subdivisions ANS -Condominiums, Cooperatives, Timeshares, and cluster housing
Condo 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. As estate in real estate
wherein an owner owns an interest in a single apartment/unit, an a shared interest in the common
areas of the building. Each owns their particular unit, each with a separate deed.
Cooperative ANS -A form of ownership in which stockholders in a corporation occupy property owned
by the corporation under a lease. Corporation which owns cooperative building. Owners owned shares
of stock which owns the co-op.
Time-shares ANS -A license or contractual or membership right of occupancy in a project which is not
coupled with an estate in the real property. Think vacation homes or rentals.
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