Texas Real Estate Paper 24

d.
Students should memorize the size of an acre, which some estimate at “somewhat more than 200 feet by 200 feet.”

a.
($75,000 ÷ 12) × 0.35 = $2,187.50

d.
It is best to have a written express agency to avoid misunderstandings and for a broker to enforce the payment of an earned fee. However, the law of agency states that even if parties have only verbally expressed a specific agency relationship, the role of agent has been created along with all the obligations and liabilities.

a.
Of the items listed, only forged documents are covered by title insurance.

c.
Voluntary alienation occurs when a property owner intentionally sells or gives his property to another. He may convey all of the property and rights or he may reserve part of the property such as mineral rights. The seller or grantor signs a deed granting title to the buyer or grantee.

d.
The government’s right of eminent domain is enforced through condemnation.

b.
The Taxpayer Relief Act of 1997 set $250,000 as the exclusion for a single filer taxpayer, $500,000 for a couple filing jointly.

b.
A sub-agency may be authorized by the terms of a listing agreement.

b.
Mary is obligated to treat Smith honestly and to make all required disclosures. He is her customer, however, and not her client. Her primary responsibility is to protect and promote the best interests of her clients, the sellers. If she also attempted to work with Smith as her client, she would be acting as a dual agent, which is not allowed in some states.

c.
Regardless of an agency relationship, the agent must disclose all pertinent facts regarding the property. The seller has the same obligation.