Texas Real Estate Paper 5

d.
A lien states that there is a monetary obligation implied by the encumbrance.

c.
An agency relationship consists of an agent and a client. The agent of the client is the broker. The salesperson represents the broker who represents the client. If clients divorce, they still remain clients of the agent.

a.
Federal law requires notification to tenant that property may contain lead-based paint hazards if constructed prior to 1978.

c.
Like so many federal laws, Truth-in-Lending Laws were enacted to protect the consumer.

d.
A quitclaim deed grants no covenants or warranties from the seller to the buyer. If the seller has no ownership rights, then the buyer will not acquire any title; also the buyer will not have any claim against the seller.

b.
Debt service or repayment of a loan is not an operating expense. An income approach appraisal is a cash on cash return and does not include debt service. To compute market value, divide net operating income by the appraiser’s capitalization rate.

b.
Accrued means owed but not paid; therefore, an account is paid after charges were made, such as real estate property taxes or credit cards.

d.
The law of agency requires that all confidences be kept even beyond the term of the agency. It would be both illegal and unethical to reveal any confidential information the salesperson may have. The listing salesperson owes only disclosure of material facts about the physical property to the buyer.

a.
A lease is a temporary condition. Ownership remains with the owner. Revert means to “bounce back” to the owner.

c.
An ad valorem tax lien is created by statutory property tax laws and is levied against a specific legal address. Property tax liens are involuntary, since non-payment by a property owner will result in a tax foreclosure sale.