60-Hour Washington Real Estate Fundamentals Flashcards
What is the last clause of The 5th Amendment?
It is the “takings clause”, that states the specific limits though which the government may legally use the power of eminent domain.
They could only seize property for public use, within the due process of law and the payment of just compensation to the current owners.
Flood Zone A
They have a 1% chance of flooding and are located in a “special flood hazard area”.
Flood Zone B
They have a moderate .2% chance of flooding.
Flood Zone C
Generally, refers to properties that are outside a defined flood hazard zone.
The Transfer of Ownership
Transferring ownership from one party to another is known as “conveyance.” There are a variety of deed types, each with a specific purpose, so the correct deed must be used if the title is to be transferred correctly.
The Recording of the Deed
The recording of a deed is extremely important, and it must be done if the document is to become public record and protect the owner’s interests. Mortgages, deeds, and other relevant documents are recorded in a land registry office or county recorder, depending on how the state has set up the recording processes. States also decide which documents become public records.
The Foreclosure Process
The foreclosure process is the legal process a lender uses in case of breach of contract on a mortgage. That process varies state by state; for example, in some states it involves the courts, but in others, it does not. As a real estate licensee, you should familiarize
yourself with the local process.
Condemnation
The act of taking private property for public use by a political subdivision upon payment to owner of just compensation.
Escheat
The reverting of property to the State when heirs capable of inheriting are lacking.
Eminent Domain
The right of the government to acquire property for necessary public or
quasi-public use by condition; the owner must be fairly compensated.
Police Power
The right of the State to enact laws and enforce them for the order, safety, health, morals and general welfare of the public.
Tax
Enforced charge extracted of personal, corporations and organizations by the
government to be used to support government services and programs.
P.E.T.E.
Governmental Powers:
Police Powers
Eminent Domain
Taxation
Escheat
Zoning Laws
Laws that separate or divide areas of land into different districts depending on their use. Zoning laws generally apply to large areas of land, rather than just individual pieces of real estate.
City Planning Laws
Closely related to zoning laws, and include laws about the electrical, sewer and other facilities that a municipality’s residents use.
Building Codes & Health Standards
Building codes are different for residential real estate and for commercial or industrial properties; and depend to a certain extent on the intended use for the property. Building codes and health standards include everything from how wide doorways and stairwells must be, to the materials
and methods used in construction. Things like plumbing codes, electrical standards, occupancy rules, parking and traffic impact, and even swimming pool regulations all fall under building codes.
Who checks on building codes and health standards?
the city or municipality inspectors
Rent Controls
Rent controls are designed to protect the public by putting an upper limit on the amount landlords can charge tenants to lease space. Rent controls either provide a ceiling, a maximum amount that can be charged in rent, or by providing controls around how much a landlord can increase rents.
In regard to Eminent Domain, what does just compensation mean?
The requirement that the government taking the property must pay just compensation is intended to make sure the property owner is in the same position financially after his or her property is taken through eminent domain.
Who can and can’t tax real property?
The U.S. federal government cannot tax real property (the Constitution prohibits this.) However,
state and local governments do have the authority to levy property taxes on property owners.
What can property owners do if they think their property taxes are too high and what can the outcomes be?
They can appeal to the taxing authority and get their properties re-assessed? This may lower or raise their tax burden.
What happens if someone doesn’t pay their property taxes?
The taxing authority can place a lien against the property. This means that
when the property is ultimately sold, the taxing authority will be paid the amount of taxes due
before the property owner receives the sales proceeds.
Can a taxing authority force the sale of property if property taxes aren’t paid, or the delinquencies have met a certain threshold?
Yes
True or False?
Most mortgage lenders consider a failure to pay property taxes as the equivalent of defaulting
on the mortgage loan.
True
This is serious as it can trigger foreclosure actions.
