Texas Real Estate License Course

About

This course covers the topics required by the Texas Real Estate Commission (TREC) for the core course Principles of Real Estate I, which includes information for the national portion of pre-licensing preparation (those areas which are common to all states), as well as many aspects of the topic that are specific to Texas. You will learn:

• Basic real estate principles and an introduction to real estate law,
• The important aspects of real estate licensing requirements,
• Distinctions between personal and real property,
• Titles to and conveyance of real estate,
• Ethics of practice as a license holder,
• Federal, state, and local fair housing laws,
• The content of the Texas Real Estate License Act,
• Legal descriptions,
• Important elements of real estate contracts,
• How various interests in real estate are defined (including deeds, encumbrances, and liens),
• How titles to real estate are held and conveyed,
• and the ethical standards you are expected to meet as a license holder.

You are required to complete the reading assignments as well as quizzes, exams, and exercises.

If the seller is aware that the fence surrounding his listed property extends beyond the designated property boundaries and that this may lead to problems with the owners of the adjoining property, then he needs to inform potential buyers of this fact as it would probably be difficult for a buyer to discover alone. The agent must disclose this information to the prospective buyer; otherwise, the agent is intentionally concealing important information that could very likely impact the third party’s decision.

YES. According to Section 1101.351 (b) of the Real Estate License Act, no individual may sell, lease, advertise or exchange real estate services without an active license. If the licensee is a salesperson, then he or she may only sell, lease, advertise, or exchange real estate while acting under his or her sponsoring broker. If that sponsoring broker’s license status is ”inactive,” then all agents must stop providing real estate services until the broker renews his license.

A lender may not ask if an applicant is divorced or widowed, but may ask if a borrower is married, unmarried or separated.
The lender may not ask about the receipt of alimony or child support unless the borrower intends to use that money to qualify for the loan, but may ask if a borrower must pay alimony or child support.
A lender may not ask about a borrower’s birth control or intentions for child- bearing.
A lender may not ask about a borrower’s spouse unless that person will be involved in the contract.
A lender may not discount or exclude any income because of the source of that income.
A lender must report credit information on married couples separately in the name of each spouse.
A lender may not ask about the applicant’s race or national origin.

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Steering

Redlining

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Topics Covered

This course focuses on the following topics:

• Introduction to Modern Real Estate Practice
• Real Property
• Concepts and Responsibilities of Home Ownership
• Real Estate Brokerage and Law of Agency
• Fair Housing Laws
• Ethics of Practice as a License Holder
• Texas Real Estate License Act
• Legal Descriptions
• Real Estate Contracts
• Interest in Real Estate
• How Home Ownership is Held
• Listing Agreement

Learning Objectives

Upon completion of this course, you will be able to:

• Summarize some important aspects of real estate law.
• Identify real estate licensing requirements and what a licensee can and cannot do.
• Define real estate/real property and distinguish those terms from personal property.
• List some benefits of home ownership and tax benefits for homeowners.
• Explain mortgage payments, the clue report, flood insurance and the concepts of co-ops and condos.
• Identify important aspects of agency law, disclosure issues relative to agency and the nature of the brokerage business.
• Define the DTPA and fiduciary duties.
• Explain fair housing laws both nationally and as enacted in Texas, including housing and housing credit discrimination and community reinvestment.
• Summarize the canons of professional ethics.
• List important aspects of the Texas real estate license act, including prohibited practices and disciplinary proceedings and penalties.
• Explain the types of land descriptions used in the United States.
• List various aspects of contract law and contracts utilized in the real estate business.
• Define various estates in land, including homestead rights and identification of various types of tax and other liens.
• Summarize various forms of ownership.
• Explain how property is listed, including types of listings and the required disclosures and notices.
• Students should make certain they read and review all of the information presented.

About

This course covers the topics required by the Texas Real Estate Commission for the core course Principles of Real Estate II, which includes information for the national portion of pre-licensing preparation (those areas which are common to all states), as well as many aspects of the topic that are specific to Texas.

This Principles of Real Estate II course follows the required outline presented by the Texas Real Estate Commission (TREC). Learners will be expected to complete each lesson before moving forward to the next. In this course, we will discuss mathematics involved in real estate as well as key concepts related to the appraisal and finance of real property. The course also explores investments, leases, and property management, before further study of estates, transfers, and titles.

Topics Covered

This course focuses on the following topics:

Lesson 1: Real Estate Math
Lesson 2: Real Estate Appraisal
Lesson 3: Real Estate Financing Principles
Lesson 4: Control of Land Use
Lesson 5: Specializations
Lesson 6: Real Estate Investments
Lesson 7: Leases
Lesson 8: Property Management
Lesson 9: Estates, Transfers and Titles
Lesson 10: Closing Procedures/Closing the Real Estate Transaction

Learning Objectives

Upon completion of this course, you will be able to:

• Recall some of the basics of mathematics as they apply to real estate transactions
• Summarize the requirements of becoming a licensed appraiser in Texas, as well as the basics of the appraisal process, the concepts of value and pricing a property, and the three approaches to value
• Explain sources of real estate financing and the mortgage market
• Distinguish among conventional, FHA and VA loans, identify Texas loan programs, describe government influences on mortgage lending
• Describe legislation that impacts financing
• Summarize land use controls
• Define the interstate land sales full disclosure act (ILSFDA)
• Identify environmental protection legislation
• Describe and define several types of specialization for real estate brokers and sales agents
• Analyze real estate investment possibilities
• Identify various types of investment syndicates and trusts
• Recall some real estate mortgage investment conduits
• Explain the process of leasing real estate
• Describe various leasehold estates
• Identify common lease provisions
• Summarize the landlord and tenant act
• Recall some types of leases
• Describe the process of property management
• Identify various management considerations
• Explain the property management profession
• Define deeds and the types of deeds that exist
• Explain the concepts of title and public records, as well as evidences of title
• Summarize acquisitions and transfers, including the transfer of a decedent’s property
• Distinguish between voluntary and involuntary alienation
• Explain pre-closing and closing procedures and the conduct of a closing
• Summarize RESPA and the Uniform Settlement Statement, as well as TRID
• Explain the preparation of closing statements

About

Real estate transactions involve a complex set of laws, regulations, and requirements. Even though the licensee will not be practicing law, it is important to know and understand how contract law, both in general and with respect to Texas in particular, impacts the ownership and transfer of property. While the practitioner is prohibited from creating contracts from scratch, he or she is authorized to complete forms promulgated by the Texas Real Estate Commission. In addition to knowing the mechanics of doing so, it is important that the practitioner knows and understands the influence contract law has on these transactions.

In this course, we will identify some key concepts of Texas Contract law, recite the basics of real estate law in general, complete a review of the introduction to contracts, explore ownership rights and limitations vis-à-vis real estate, identify a variety of contracts used in real estate, explore the details of the sales contract, discover the contingencies, addendums and amendments used in typical real estate transactions, identify the process of financing real estate, explore how title to real estate is conveyed, detail the transaction process and the closing of a deal, and identify some common contract mistakes.

Topics Covered

Lesson 1: Texas Contract Law

Lesson 2: The Basics of Real Estate Law

Lesson 3: Introduction to Contracts

Lesson 4: Ownership Rights and Limitations

Lesson 5: Contracts Used in Real Estate

Lesson 6: The Sales Contract

Lesson 7: Contingencies, Addenda, and Amendments

Lesson 8: Financing Real Estate

Lesson 9: Conveyance of Title

Lesson 10: Transaction Process and Closing

Lesson 11: Common Contract Mistakes

Learning Objectives

This course contains numerous opportunities for interaction. The student will be expected to complete each exercise, quiz, reading assignment, and exam in this course. By reviewing and examining the information presented, at the conclusion of this course, the student will be able to:

• Comprehend the Provisions of The Texas Real Estate License Act
• Recite the Basics of Contract Law
• Discover Elements of a Valid Contract and The Various Types of Contracts That Exist
• Identify Various Ownership Rights and Limitations, Including Encumbrances, Water and Mineral Rights and Environmental Issues
• Comprehend Various Contracts Used in Real Estate
• Analyze and Understand the Component Parts of a Sales Contract
• Recite the Meaning and Use of Contingencies, Addendums and Amendments
• Understand the Terminology and Process of Financing Real Estate
• Identify the Concepts and Steps Involved in Conveyance of Title
• Recite the Transaction Process and Closing
• Comprehend a Variety of Common Contract Mistakes

About

All Texas real estate transactions are formalized using a standard suite of contracts known as the Promulgated Forms, and it is a core role of the real estate salesperson to guide their clients through the proper use of these forms to a successful and legally binding conclusion.

This course covers all of the standard forms and contracts that may be required during a Texas real estate transaction. Upon completion of the course, students will understand the purpose, role and background of each form, be able to select appropriate forms to meet the requirements of a particular transaction and show competence in completing the forms correctly.

This 30-hour course forms part of the mandatory education towards licensure as a real estate salesperson in Texas, as required by the Texas Real Estate Commission (TREC).

Only members can use Texas Association of REALTOR® forms.

An owner that is exempt from the Fair Housing Act may still be liable for racial discrimination under the Civil Rights Act of 1866. There are no exceptions under that act.

The fair lending laws require lenders to not discriminate against all of the same protected classes as the Fair Housing Act (race, color, national origin, religion, sex, familial status or handicap) plus age, marital status, and receipt of public income.

Topics Covered

This course contains the following topics:

• Lesson 1: Contract Law Overview
• Lesson 2: Laws, Rules and Regulations
• Lesson 3: Parties, Properties and Financing
• Lesson 4: Covenants, Commitments, and Notices
• Lesson 5: Closing and Possession
• Lesson 6: The Remaining Promulgated Forms
• Lesson 7: Promulgated Addenda, Notices, and Other Forms
• Lesson 8: Other Real Estate Matters
• Lesson 9: Practice Makes Perfect

Learning Objectives

At the conclusion of this course the student will be able to:

• Identify the elements of a contract.
• List the forms and contracts promulgated by the Commission and mandated for use.
• Describe laws and rules governing the use of promulgated forms.
• Identify and explain other forms required for a successful transaction.
• Present the disclosures that will be required in a transaction.
• State the broker's responsibility at closing.
• Review scenarios related to the use and identification of contracts and forms.

About

Our daily lives can involve a variety of agency relationships. When you ask your physician to communicate information to the pharmacy to fill in a prescription, you are authorizing the physician to act as an agent of sorts to fulfill a specific task for you. If you hire a professional real estate person to market your home, or find you a new home, or find you a new office space, or you retain an auto broker to locate a replacement car or truck, or contract with an art dealer to find works by a specific artist, or employ a private detective to track down a long-lost relative, or you deliver some inherited furniture to an antique dealer for sale on consignment at a specific minimum price, you are participating in an agency relationship. All of these examples involve a contract, either verbal or written. It is that contract that creates the agency relationship.

No matter what the rules, statutes or practices that may become involved, at its core, an agency relationship is a contract between two parties:

1. the person that is delegating authority (the Principal) and
2. the person that is being given the authority (the Agent).
   
   

The more substantial the proposed relationship and/or contemplated transactions become, the more complex the principal–agent relationship and the rules surrounding it can become. New laws, court cases, experiences in day-to-day business and new ways of doing business can complicate and add new layers of responsibilities and duties to the relationship. Nevertheless, at the core, an agency relationship is still that contract between the Principal and the Agent.

The purpose of this course is to better acquaint the leaner with the various types of agency relationships that can exist, and to build an understanding of the scope and the limits of agency in general and of the rules as they relate to the practice of the real estate profession.

This course contains numerous opportunities for interaction. You will be expected to complete each exercise, quiz, reading assignment, and exam in this course.

The exception to the foregoing rule regarding common law is the Napoleonic Code. The Code was the first organized and codified as the law in France, and grew out of ancient Roman law. In its updated form, it is still the basis of most law in France, and is the basis for much of the law in the state of Louisiana.

The following are specific categories or classifications of agency with specific legal consequences. These categories are not a type of agency such as a real estate agent, insurance agent, secret agent, etc.

Notice that the definition and the examples all emphasize that fiduciary is obligated to act in your best interests; she is obligated to put your interests above hers, to be candid, to act in good faith and to be loyal.

The foregoing concepts should be familiar. They are yet another way of stating the rules of the law of agency in general, and of the Texas Real Estate Commission in particular, when considering the obligations of agent to principal.

Topics Covered

This course focuses on the following topics:

• Lesson 1: Agency Concepts
• Lesson 2: Basic Agency Relationship, Disclosure and Duties to the Client
• Lesson 3: Duties and Disclosures to Third Parties
• Lesson 4: Seller Agency
• Lesson 5: Buyer Agency
• Lesson 6: Representing More than One Party in a Transaction: Intermediary Broker
• Lesson 7: Creation and Termination of Agency
• Lesson 8: Clarifying Agency Relationships
• Lesson 9: Employment Issues
• Lesson 10: Agency, Ethics, and the Law
• Lesson 11: Deceptive Trade Practices and Consumer Protection Act
• Lesson 12: Implementation and Presentation

Learning Objectives

Upon completion of this course, you will be able to:

• Enumerate basic agency relationships, including disclosure and duties to clients.
• Identify the relevant section of the Texas property code as it relates to an agent's duties and disclosures to third parties.
• Describe the concept of seller agency and the benefits of such a relationship.
• Enumerate the details of buyer agency, how it is created and the benefits of such an arrangement.
• Comprehend the intricacies of representing more than one party in a transaction (including what is known as intermediary brokerage);
• Describe how an agency is created and terminated.
• Navigate disclosure policies and navigate a company's policies in this area.
• Discover various employment law issues involving agencies, including independent contract agreements and employment issues with brokers, principals and personal assistants and agents.
• Explain the interaction between agency, ethics, law and morals, including codes of ethics, minimum ethical standards and the rules of TREC and TRELA
• Recognize the various aspects of the Texas Deceptive Trade Practices Act as they impact the purchase and sale of real property.
• Discover some practical aspects of agency, including working with sellers and buyers.
• Relate a practical guide to everyday practice; and
• Comprehend risk management issues as well as other considerations that impact a daily practice.

About

This course will cover the principles of financing a transaction. Topics covered will include pre-qualifying vs. pre-approval, the qualifying and approval process, required documentation for transaction financing, various loan program types and criteria, and the loan process. Learners will review the tools used to determine actual costs related to financing a transaction and the effect of changes in interest rates. The course will cover the loan process and steps which take place during the transaction, as well as some preparations buyers can make to ensure financial readiness for homeownership.

Topics Covered

Lesson 1: The Nature and Cycle of Real Estate Finance
Lesson 2: Money & the Monetary System
Lesson 3: Additional Government Influence
Lesson 4: The Secondary Mortgage Market
Lesson 5: Sources of Funds
Lesson 6: Instruments of Real Estate Finance
Lesson 7: Loan Types, Terms & Issues
Lesson 8: Government Loans
Lesson 9: Lender Loan Processes
Lesson 10: Defaults & Foreclosure

Learning Objectives

Upon completion of this course, you will be able to:

• Identify key agencies involved in the monetary system
• List at least three primary and a secondary source of money consumers might utilize
• Review and Explain the transaction process
• Examine insurance needs and make proper recommendations
• Perform basic math calculations
• Direct consumers to appropriate financing opportunities and advisors

About

This trusted textbook, presented as a downloadable PDF, is filled with essential concepts, including topics not covered in the online lessons, that top educators use to create licensing exam questions. Mastering the material in this book gives you a clear advantage, with students who study it performing far better on the exam. Read it, learn the concepts, and greatly increase your chances of passing the licensing exam on your first attempt.

Topics Covered

• Introduction to the Real Estate Business
• Real Property and the Law
• Interests in Real Estate
• Forms of Real Estate Ownership
• Land Description
• Transfer of Title
• Title Records
• Real Estate Brokerage
• Real Estate Agency
• Claim Representation Agreements
• Real Estate Contracts
• Real Estate Financing
• Government Involvement in Real Estate Financing
• Closing the Real Estate Transaction
• Real Estate Taxes and Other Liens
• Real Estate Appraisal
• Leases
• Fair Housing
• Property Management
• Land-Use Controls and Property Development
• Environmental Issues and the Real Estate Transaction

Learning Objectives

By the end of this course, learners will be able to:

• Feel prepared to take their real estate licensing test
• Understand current legislation and market information
• Explain how topics covered relate to real estate law, regulations, and principles to the practice of real estate

About

Texas Exam Prep is comprehensive in that it contains both key content review and testing practice. The text review provided in the course is Texas-specific and provides relevant and accurate state laws and regulations. The national section of the course provides a brief summary of national principles and practices that comprise the national portion of state license exams from coast to coast. The state specific section consists of relevant key point reviews for better pre-test memorization and tests your knowledge with practice exams.

Topics Covered

• Real Property Characteristics, Legal Descriptions, and Property Use
• Forms of Ownership, Transfer, and Recording of Title
• Property Values and Appraisal
• Real Estate Contracts and Agency
• Real Estate Practice
• Property Disclosures and Environmental Issues
• Financing and Settlement
• TREC Duties and Powers
• Texas Licensing
• Texas Standards of Conduct
• Texas Agency/Brokerage
• Texas Contracts
• Texas Special Topics

Learning Objectives

This course is presented in two sections: National and State. Each section contains the following topics:

National Exam Topics:

1. Real Property Characteristics, Legal Descriptions, and Property Use
2. Forms of Ownership, Transfer, and Recording of Title
3. Property Value and Appraisal
4. Real Estate Contracts & Agency
5. Real Estate Practice
6. Property Disclosures and Environmental Issues
7. Financing and Settlement
8. Real Estate Math Calculations

State Exam Topics:

1. Commission Duties and Powers
2. Licensing
3. Standards of Conduct
4. Agency/ Brokerage
5. Contracts
6. Special Topics