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92 Cards in this Set
- Front
- Back
When was TREC created? |
1949
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What is TREC's responsibility?
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to administer provisions of license act (TRELA)which was passed in 1939
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TREC has authority to make
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rules and regulations and can advise with reference to rules and the laws that goveren license holders.
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How many people make up TREC?
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9 commission members 3 general public |
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Who appoints TREC members?
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All are appointed by the Governor, approved by Senate. |
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TREC members served for how many years
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6 years |
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What does TREC do if licensee ignores a
subpoena? |
TREC will file suit with Attorney General to enforce it
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What does TREC do if you ignore a summons?
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TREC will automatically schedule the hearing in Austin unless the license holder requests the hearing be held in his county.
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Where can you appeal a TREC license
suspension? |
Appeal the decision to the district court.
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How many members in Broker/Lawyer Committee? |
13 total
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What is the punishment for acting or working without a license?
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Class A misdemeanor Fine up to no more than $4000 1 yr in county jail |
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What is administrative penalty for violation of the license act?
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$5000 per day and 30 days to pay it off
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Who created Real Estate Recovery Trust Account?
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TREC
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The Real Estate Recovery Trust account was created by TREC to pay aggrieved persons due to unscrupulous acts of the license holder
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up to 3x's the amount of money lost.
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When does a licensee have to pay a $10 fee for the Trust account?
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When balance is below $1 mil and until balance reaches 1.7 mil
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State Law limits the maximum payment which is
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$100,000 per license holder and only $50,000 per transaction.
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What does TREC invest Trust money in?
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Treasury bills, notes
(same as Employees Retirement System of Tx) |
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If RERTA account exceeds $3.5 million the excess goes
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into the state's General fund.
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If TREC suspends a license and paid out of trust, can you still hold a license?
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Not until all has been paid back with interest
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Texas licensed attorney can handle a real estate transaction for a client for a fee as long as
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they do not participate in broker to broker commission splits.
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Who sets the limit the Trust can pay per
licensee? |
state law
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Will TREC help resolve conflicts between
licensees? |
No
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How many classroom hours is needed to get a Sales Agent License?
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180 hours consisting of 6 required qualifying courses. |
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Licensing requirements are:
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*Must be 18 yrs or older. *Resident of Texas *Legal residency requirements. *Submit fingerprints to TREC before or after testing. |
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Steps to obtain a Real Estate License:
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1. Meet educational requirements. 2. Submit application with/without sponsoring broker. 3. Submit required fees. 4. Pass state exam. 5. Demonstrate Honesty, Integrity & Trustworthiness. |
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To obtain a brokers license:
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Yes
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Does a designated manager of a licensed Real Estate LLC need a license?
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Yes, a designated broker license
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Does an attorney-in-fact need a license?
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No
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Corporate employees selling corporate property need a license?
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No
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On-site apartment managers need a license?
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No
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How is competency determined by TREC?
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not demonstrated thru course completion but solely determined by passing exam
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Why would TREC deny a license?
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*Unable to satisfy TREC with honesty, integrity, and trustworthiness.
*Defaulted on student loans |
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Brokers license educational requirements?
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*900 classroom w/ 30hrs Real Estate Brokerage and active for 2 out of 8 years. *4 yrs of active sales license holder out of 5 years. *3600 points-300 points per sale. *A 6-hour broker responsiblity course if sponsoring one or more sales agents. |
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What are CE requirements after 1st renewal?
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*18 hour class taken every 2 years (must include 8 hours of legal/ethic update as mandated by TREC.
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If TREC does not have proof of CE at the time the license holder renews the fee for renewal will include a
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$200 penalty. The renewal will be active for 60 days. If CE is not submitted after the 60 days the license will become automatically inactive.
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To return to active status the license holder will have to
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complete and submit CE, pay an additional $250 penalty and pay $50 to move the license back to active status.
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A license will be considered EXPIRED until the late renewal is processed by TREC. The maximum period of time is
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6 months.
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How can you get inactive license back active?
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pay $200 late fee
pay add $250 penalty pay $20 fee with form take education testify "no business done" |
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Is CE required for inactive license?
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No, just fees
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What is required to activate an inactive license with a broker?
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$50 fee and 18 CE hours
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Fee for more than one branch office of Broker?
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$50 per office
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How long does TREC have to notify you of disapproval of license?
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30 days
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How long do you have to appeal a license disapproval?
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10 days
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If a brokerage or business entity elects to do business under an assumed name, the assumed name should be...
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file with the Secretary of State, TREC and local county clerk.
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What is TREC Consumer Information Form?
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-Notifies public of Trust account
-Applies to licensees and inspectors -Must be displayed in broker's office |
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What is Texas Real Estate License Act?
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Passed in 1939 to protect the public against unscrupulous brokers and sales agents.
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Can a sales agent receive commissions directly from selling, leasing, negotiating, or auctioning real estate.
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NO. Commission should only come from his/her broker.
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Can a foreign broker collect a commission?
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Yes, thru a Texas broker
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A broker is responsible for all professional act or occupational activities of the sales agents he sponsors including...
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advertising, use of promulated forms, proper disclosure, etc.
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Is license required to tele-market?
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Yes and observe DNC list
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Nonresident broker must work through resident brokers. A foreign broker or broker may collect a commission from a Texas broker as long as that broker does NOT negotiate in Texas. TRUE OR FALSE
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TRUE
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What bill allows a broker to act as intermediary?
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Senate Bill 489 with written from both parties with info on pay
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Who can an appointed associate give advice to?
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to only one party
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Can an intermediary broker ever give advice?
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No, only facts
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When must IABS and disclosure of representation be given?
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IABS on first face to face and
representation on first contact even oral |
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When must seller disclosure be given
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before he signs an offer
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What happens if buyer isnt given seller disclosure
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he has 7 days to terminate his offer after receiving disclosure
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How long does a licensee have to enter new property into MLS?
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5 days
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What is the length of the protection period in listing agreement?
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negotiable
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Does TREC have forms for commercial or co-op?
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No
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When can you use temporary lease addendums?
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less than 90 day leases prior to closing
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Is option fee separate from other consideration?
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yes
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If contingency can't be met, does buyer get earnest money back?
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yes
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How long can a person file a complaint with TREC regardins licensee or sue for specific performance?
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4 years
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How long does broker have to deposit earnest money?
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48 hours and keep 4 year records
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If lender repairs are required how much constitutes terminating the contract?
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5% OF THE PRICE
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How much training does commission mediator have?
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40 hours
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Difference in mediator and arbitrator?
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mediator help, arbitrator decides
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What does Texas water code require?
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Disclosure for charge of turning on utilities if located in a Certified Service Area of a Utility Service Provider
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How long can buyer act on unsatisfactory survey or title?
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determined in contract
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How long does the title company have to provide title commitment after they receive sales contract?
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20 days
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What does TREC define as a reasonable amount of time?
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2 days
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Is an increase in seperate property's value community property?
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No, unless community funds or efforts made it increase
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Homestead, being automatic not able to be waived, protects against forced sales except?
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mortgage
property taxes mechanic's and material liens HOA dues |
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How long does owner have to redeem property after homestead is foreclosed on?
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taxes 2 years
HOA dues 6 months |
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Maximum size for homestead?
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Rural max 200 acres
Urban 10 acres One per family |
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Difference in Homestead exemption and protection
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Homestead exemption is just tax benefit. must occupy house on Jan 1 and can back claim for 2 years
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Education requirements for Appraisal Review Board Arbitrator?
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30 hour class and $500 max fee
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What does a seller of coastal property abutting tidally influenced water have to provide?
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Notice Regarding Coastal Area Property
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What does Notice Regarding Coastal Area Property disclose?
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Buyer may lose or gain land due to water
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What must a seller do that sells property located seaward of vegetation line?
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If structure is erected seaward of vegetation line or becomes by natural causes, structure is subject to lawsuit by Texas for removal.
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Can a buyer back out of contract if the bonded indentness of MUD district is not disclosed?
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Yes, seller must deliver and buyer must sign the MUD disclosure
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What is intestate succession?
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laws that govern how property passes intestate. Laws of Descent and Distribution
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Who is appointed to settle an estate by Laws of Descent and Distribution?
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administrator appointed by court
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If obtained property thru Laws of Descent and Distribution, you have title by?
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Title by Descent
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The Real Estate Settlement Procedure Act (RESPA) applies to what types of real estate transactions?
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Federally related mortgage loans
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How much time must the parties to a real estate closing be given to review the HUD statement?
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One day before closing
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Which of the following is considered a good balance between the supply of and demand for apartments?
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5 percent vacancy
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The recording of an instrument gives:
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Constructive notice
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In order to be valid all exclusive listings must include:
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a definite date of expiration.
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Freehold estate includes:
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life estates
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The total collection of rights which may be claimed by private ownership is best described as:
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