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(B) LVL 1 STUDYGUIDE
LEVEL 1 STUDY GUIDE - FLASH CARDS TO REVIEW
| Question | Answer |
|---|---|
| TRELA is one section of a larger law passed by the State Legislature called the | Texas Occupations Code. |
| What chapters of the Texas Occupation Code is TRELA? | Chapters 1101 & 1102 |
| What does TRELA stand for? | TEXAS REAL ESTATE LICENSE ACT |
| Chapter 1101 pertains to ___________ | real estate brokers and salespersons |
| Chapter 1102 pertains to ____________ | real estate inspectors |
| What are the primary objectives of the Texas License Law? | - Protect public from uneducated agents - Set standards and qualifications for agents etc - Maintain ethical standards for agents |
| A sales agent is basically... | a real estate agent |
| If you just got your real estate license, what must you do before you can actually do real estate? | You have to be associated with/sponsored by a licensed broker |
| So what are the two types of real estate licenses in Texas? | - Sales agent license - Broker License |
| What does it mean if you're license is expired? | You failed to renew your license |
| You've got this >:) | >:)))))))) |
| Your license can either be active, inactive, or expired. One of those status allows you to perform real estate, the rest doesn't, which one is it? | Active |
| How can a license become inactive? | A sales agent needs a broker to perform real estate. If they somehow end up without one, or if they ask TREC to put their license as inactive, then they're license will be inactive. |
| What do professional organizations do? | they provide additional education and guidance to real estate professionals. |
| These professional organizations are NOT to be confused with | law-making legislative and regulatory bodies, such as the Texas Real Estate Commission (TREC) |
| Do professional organizations issue licenses, regulate the industry, ensure compliance with laws, or handle disputes? | NO |
| while professional organizations have no law-making abilities, they do have _______ on the industry | influence |
| The most influential professional organization you'll encounter as a real estate agent is the | National Association of REALTORS® (NAR). |
| You can be a licensed real estate agent or broker without joining the National Association of REALTORS, but to be called a REALTOR®, you have to be ________ | a member of NAR |
| The designation of __________ is held by more residential sales agents in Texas than any other designation. | Graduate, REALTOR® Institute (GRI) |
| Why is it good to have a designation of GRI? | Basically proves that you went out of your way to be a great real estate agent by doing more education |
| An appraisal is an | impartial, qualified appraiser's opinion of the value of a specific property on a specific date, supported by relevant market information. this estimate is based on data, but at the end of the day, it's still an opinion. |
| What are the 3 main methods appraisers use to set a value on property? | - Basing the value on how much it'd COST TO REPLACE the buildings and etc on the property - COMPARING how much other similar properties sold for and valuing the property based on that - estimating value based on how much INCOME this property can bring |
| During reconciliation... | ...the appraiser will compare estimates they made based on all three methods. (cost approach, sales comparison approach, and/or income capitalization approach) |
| This is really important. What is a CMA? | A CMA is a report that compares the prices of sold homes that are similar to the subject property. you make a report of how many homes similar to your client's home sold for, so they can get an idea of how much they can sell theirs for |
| Are CMAs the same thing as an appraisal? | NOPE, but they're prepared in a similar way |
| what is a "comp?" | A comp is basically properties that compare to the one you're trying to sell because it's in the same location or has the same amount of rooms etc |
| An agent uses comps to... | estimate a current market value for a property |
| What do they mean when they say "subject property" when we're talking about the value of the home? | The subject property is the home that you are trying to sell and figure out what it's value is |
| What properties are considered good comps? | - Properties that are within a quarter-mile of the "subject property" - with similar bedrooms, bathrooms, and square footage - sold within the last six months. |
| What is a foreclosure? | Let's say you took out a loan and never paid it back. Whoever gave you the loan will sell your property and keep the money made from it to themselves because you failed to pay off your loans. That is foreclosure. |
| So what is a BPO (Broker Price Opinion?) | A Broker Price Opinion (BPO) is the process used by a hired sales agent to determine the potential selling price or estimated value of a real estate property |
| A BPO and a CMA is pretty similar. What's the difference? | A BPO is a way more in depth report and is usually for another reason (such as for foreclosure or refinancing a mortgage) |
| What does CMA stand for? | Comparative Market Analysis |
| What do BPO stand for? | Broker Price Opinion |
| Real estate is cyclical, and the 4 phases include _______________ | recession, recovery, expansion, and hyper supply |
| What does cyclical mean? | When the same events repeat over and over and overr |
| What is a seller's market? | a market condition in which the number of properties for sale does not meet the demand (number of people looking to buy). (it's a seller's market because if there's less houses compared to customers, they're likely to sell their house quicker) |
| What is a buyer's market? | High supply and low demand in a specific area; When there's less buyers than the supply of homes for sale in the area. (the buyers hve an advantage bc because there aren't many ppl wanting to buy homes in the area so they can negotiate) |
| What does the term "cloud" mean? | any claim to or encumbrance on the title to a property that affects transferability soo basically some claim on the title that makes it hard to transfer the name on it from seller to buyer or person to person |
| What does commingling mean? | the act of mixing personal funds with a client’s funds |
| What does misrepresentation mean in real estate? | a statement, written or spoken, that is false or misleading |
| What is a "party" in real estate? | a person involved in a contract for sale, lease, or agency |
| What does "puffing" mean in real estate? | the making of exaggerated claims (technically opinions) in order to achieve a sale or some other objective like when someone exaggerates how good their car is so the buyer will want to buy it |
| TRELA is reviewed and updated every _______ when the Texas Legislature meets. | two years |
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