ALL QUESTIONS AND PART STUDY Flashcards
DESCRIBE METES AND BOUNDS
. Metes are the direction and distance of a line forming the property’s boundary;
. bounds are physical features that define the boundaries of the property.
DESCRIBE Monument
A physical marker used in a metes-and-bounds description that can be man-made or natural. It may be a tree, creek, rock, or a stake placed in the ground.
DESCRIBE The rectangular government survey system
divides land into townships and further into sections and fractions called sections.
DESCRIBE TYPE OF LIENS
General liens: judgment liens, federal and state tax liens, and decedent’s debts.
A mechanic’s lien is one a vendor of goods or services places on the property and creates a cloud on the property’s title.
ATTACHMENT LIEN IS the one a court places on a property, also known as judgment liens
What is a quitclaim deed?
It just transfer the title from the grantor to grantee but offer no guarantees or warranties.
Which legislative act prohibits certain types of electronic communication?
CAN-SPAM
The Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM) prohibits junk email and requires an “unsubscribe” option in any email marketing messages.
Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination?
Housing for Older Persons Act of 1995
Under the Housing for Older Persons Act of 1995, housing must have one person who is 55 or older residing in at least 80% of its occupied units to be exempt from charges of familial status discrimination by age preference.
Which agency enforces Title II under the Americans with Disabilities Act of 1990, when it relates to state and local public housing, housing assistance, and housing referrals?
HUD or Department of Housing and Urban Development
DESCRIBE THE 7 STEPS OF APPRAISAL
- STATE THE PROBLEM
- Identify data needed.
- GATHER AND ANALYZE DATA
- Determine highest and best use (Imagine no comparables)
- Estimate the land value (as if the land were vacant).
- Use one or more of the three approaches to valuation
- Reconcile values to determine the final appraised value.
What are the three approaches to valuation?
sales comparison: compare subject properties
The cost approach: based on the value of the land and investment to the land
Income approach: good for rental properties.
What are some type of value in appraisal?
Highest and best use: the best to get the most profit
Value in use: What a property is worth to the person using it.
Insured value: Cost to replace or rebuild a property
Four characteristics of value:
Demand: How popular or desirable a property is.
Utility: The property’s function.
Scarcity: Relates to market supply.
Transferability: The ease with which another person can purchase the property
Property managers must recognize the federally protected classes under ADA and the federal Fair Housing Act. Which list most accurately lists these classes?
Race, color, religion, national origin, sex, familial status, or disability
What must a licensee do when he wants to purchase a home listed by the brokerage where he’s affiliated?
Notify his broker in writing and disclose his intentions to the seller.
Why might a licensee want a buyer to sign a buyer representation agreement?
It helps ensure buyer loyalty.
Which of the following could indicate a problem with the chimney flue or ventilation?
Drafts (air) near the fireplace
Security instrument clauses include:
The defeasance clause orders the lender or trustee to immediately release full title to the borrower once the loan is paid in full.
An acceleration clause makes the entire debt due immediately if there’s borrower default.
A due-on-sale clause (also known as alienation clause) requires the borrower to repay the loan when transferring ownership to another.
Which of the following is a common chimney or fireplace problem?
Creosote (AN OIL DARK THICK LIQUID)
Craig’s loan is secured by a mortgage. Who holds legal title when this security instrument is used?
Craig, the borrower
While Martha’s paying off her loan, her lender is holding on to something that includes her name, property address, the interest rate on her loan, what the late charge amount would be, and the amount and term of the loan. When her loan is paid off, the lender returns it to Mary, marked paid in full. What is this item?
A promissory note is the borrower’s promise to repay the loan. When the loan is paid in full, the note is marked as paid in full and returned to the borrower.
what is an A special agent (aka limited agent) ?
has limited authority to act on a client’s behalf, such as a real estate agent or an escrow officer.
What is a general agent?
he is responsible for handling all dealings in a given area for a client, such as a property manager. This type of agent may bind a client to a contract.
Designated/appointed agency (aka dual-licensed dual agency) is
when two separate licensees from a single firm each represent one party (buyer or seller) in the same transaction.
What is an Exclusive agency agreements?
it allow only one brokerage to market and sell the property. However, if the seller finds her own buyer, she doesn’t pay commission to the brokerage.
what is an exclusive right-to-sell agreement ?
provides the listing agent with a commission no matter who brings the buyer to the transaction. Exclusive right-to-sell agreements include definite start and end dates.
Describe economic principles of value:
The principle of conformity: how well it conforms to its surrounding area (how similar it is to other properties in the neighborhood).
The principle of competition: what else is available
.
The principle of substitution: A reasonable person will not pay more for a property if a comparable one can be had for less.
The principle of contribution: the same improvement to different houses may result in an increase in value in one, while the other sees no appreciable change.
The principle of anticipation: Changes in value may be caused by the expectation of events.
What is Transfer of Rights in Property?
it gives the lender power of sale, meaning the lender can sell the property without judicial proceedings if the borrower defaults.
What makes a voided convey contract?
The grantor must be mentally competent and of legal age, though neither of these is essential for the grantee. The grantor is required to sign the deed, and the grantee must provide some sort of consideration.
In Georgia, upon what amount is the transfer tax calculated?
Sales price
Gina is buying a condo in Tybee Island. Unless otherwise negotiated, which of the following closing costs will she pay?
Intangible tax
What fiduciary duty remains for ever?
Confidentiality
Marco, a buyer in Atlanta, wants to terminate his buyer’s representation agreement with his agent. What is TRUE about this situation?
He may or may not owe an amount under the terms of the agreement.
What fiduciary duties remain intact in dual agency?
Confidentiality
If you see sawdust that can’t be explained, it’s probably a sawdust-like material called frass created by which pest?
Carpenter ants
Who holds the promissory note while it’s being repaid?
The obligee (the lender)
In Georgia, what must be filed for the eviction process to begin?
An affidavit (he has sworn) or a written promise
What’s the transfer tax on a Georgia home sold for $215,000 with a mortgage loan of $180,000?
Remember two things:
- Transfer tax is based on the SALES PRICE
- the % per transfer tax is 0.1%
THEREFORE: $215,000 X 0.1% = $215
Which real estate finance instrument in Georgia may include the pledging of collateral and the release of that collateral in the same document?
Lenders may release the Georgia SECURITY DEED simply by noting the release on the deed itself.
Roberto, a licensee, filled in the blanks on a standard form used in his brokerage firm. Is this okay?
Yes, licensees can use standard forms originally created or approved by an attorney.
What forms the boundaries of a township?
Township lines and range lines
The boundaries of townships are township lines, which run parallel to baselines meridian, and range lines, which run parallel to principal meridians.
In Georgia, what’s the first step in the foreclosure process (sometimes called pre-foreclosure)?
The lender notifies the borrower and attempts to have the default cured.
What can be said about a designated agent’s duties?
They’re the same as a single agent’s duties.
When a borrower fails to cure any default within 120 days of the lender’s original notification, the lender may begin the foreclosure process. In Georgia, borrowers may redeem the property ________________.
Up to five days before the scheduled foreclosure sale
Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He uses a cane to help with his mobility. When his application is rejected, he feels it’s due to his disability. He is protected under what federal law?
Fair Housing Amendments Act of 1988
Of the following, what is the main distinguishing feature between a mortgage, a deed of trust, and Georgia’s security deed?
Of the following, what is the main distinguishing feature between a mortgage, a deed of trust, and Georgia’s security deed?
what is extension clause in Georgia’s brokerage agreements?
The extension clause adds time to the buyer brokerage agreement if the buyer is under contract and that falls through. The extension period equals the number of days the buyer was under contract.
What is biding acceptance and acceptance?
Biding acceptance is when the contract has been executed fully.
An acceptance is when a transaction is executory.
Which of the following is a requirement to obtain a Georgia broker’s license?
The successful completion of 60 hours of brokerage coursework
What option does a Georgia licensee have when a notice for a hearing has been received?
Reach a settlement with the commission, halting the hearing process.
When considering the sanctions to hand down to a licensee for an unfair trade practices law violation, what does GREC consider?
The licensee’s history in matters of deception, fraud, or unethical behavior
On a security deed in Georgia, what is the borrower referred to?
the grantor (borrower) and the grantee (lender).
To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which element is applied first?
Financing terms and cash equivalency
What is a termination agreement?
it states what happens when the agent separates from the firm, such as who owns any active listings, how keys are to be returned, etc.
With the cost approach to value, what is the replacement cost?
Cost to build a functionally equivalent improvement
EXPLAIN THE TYPES OF ZONING:
Bulk zoning regulates the density of a given area by requiring certain building height limitations, lot width, setback requirements, etc. it applies commercial too
Aesthetic zoning is a way to ensure the visual and architectural consistency of an area.
Downzoning is the process of assigning a lower-density use zone to an area previously allowing a higher density. it refers to a number of things per unit, such as houses per acre.
Spot zoning rezones a specific property for use within another zoning area.
Zoning actions may include:
Nonconforming use: Deviates from current zoning but is grandfathered in (such as a home built years ago in an area that’s now commercially zoned).
Moratorium: Temporarily halts new property development
Special use permit (aka conditional use permit): Allows use that’s not normally permitted but is considered an “allowable” use within that zoning, such as a church within a residentially zoned area.
Variance (aka use variance) Permitted deviation in the zoning ordinance requirements; typically granted when the zoning has created a hardship or burden on the property owner. Both special use permits and variances require a public hearing before they’re granted.
Where are option contracts on multiple properties commonly seen?
Commercial properties
What are the three type of depreciation?
External depreciation, also known as economic obsolescence, is caused by factors outside the property (e.g., an airport is nearby, causing noise).
Functional obsolescence is a form of depreciation or loss in value caused by defects in design
Physical deterioration occurs with wear and tear, damage, and improper maintenance.
What is a deed of trust?
conveys real estate to a trustee for the beneficiary named in the trust agreement. For example, in states that use a non-judicial foreclosure process, the deed is conveyed to a trustee who holds it until the mortgage loan is paid in full OR until the borrower defaults and the lender must foreclose.
name the covenants in a general warranty deed?
Covenant of seisin: The grantor holds title to and possession of the property.
Covenant of right to convey: The grantor has the right to convey both title to and possession of the property.
Covenant against encumbrances: The grantor assures the grantee that there are no encumbrances against the title other than those identified in public records or the deed itself.
Covenant of quiet enjoyment: The grantor assures that the grantee’s use and enjoyment of the property will be unimpaired and unrestricted, subject to public police powers and private deed restrictions.
Covenant of further assurances: The grantor promises to take whatever actions necessary (within his power) to correct any title defects.
Covenant of warranty or warranty forever: In this most important covenant, the grantor promises to protect and defend the title against lawful claims made by others.
During a site evaluation to determine property value, all of the following factors are important to consider EXCEPT ______.
Neighborhood demographics
Topography, utilities, and a property’s size and shape all are considered during a site visit to determine property value. Neighborhood demographics might be of interest to the buyer, but generally won’t be considered by an appraiser.
Which clause in the deed of trust and Georgia’s security deed is the equivalent of the defeasance clause in the mortgage?
Reconveyance
As a real estate licensee in Georgia, if you advertise or otherwise market using lies, deceit, misrepresentations, fraud, or other unethical practices, what are you in violation of?
The Georgia Fair Business Practices Act focuses primarily on deceptive advertising. Georgia license law 43-40-25 also addresses deceptive trade practices in real estate.
When prices go down because there are too many homes on the market and too few buyers, what economic principle is at work?
Competition
When negotiating the purchase of a property that’s subject to an existing lease, it’s critical for your client to clearly understand the lease terms, including the property management responsibilities, rent amount, renewal/purchase options, and the ______.
Lease duration
Which task is NOT the responsibility of an escrow officer?
Determine how earnest money is to be distributed in case of a dispute.
Describe Freehold and Leasehold Estates
A freehold estate is an interest in real property where the owner’s possession of the property isn’t of fixed duration
Fee simple estate (aka fee simple absolute) is a type of freehold estate that conveys the most rights available. Property held as a fee simple can be sold and is inheritable. (“AS LONG AS”)
With a fee simple subject to condition subsequent estate, the current property owner conveys ownership to a new owner on a specific condition.
What is a leasehold estate?
and what are the different types?
it is an estate in which the holder has a possessory interest in a property but no ownership.
An estate for years is a lease that ends on a specific date and must be renewed by mutual agreement between the landlord and tenant.
A periodic estate (aka estate from period to period) is a lease that automatically renews at the end of its term (such as a month-to-month lease).
An estate at will is a lease without an established ending that can be terminated by either party.
An estate at sufferance is one in which a tenant (referred to as a holdover tenant) didn’t leave when the lease expired.
What is an easy way to remember metes?
Measures
Charlie rented a single-family residence from Hal and Mary. The lease specifies that Charlie can’t conduct any type of business out of the property. Which clause includes this prohibition?
The use clause
Georgia licensee Greg and buyer Sandra’s exclusive buyer agency agreement was set to expire on March 1. On Feb 10, Sandra signed a contract with a seller, but it fell through 10 days later due to a home inspection issue. What’s the termination date of Greg and Sandra’s buyer agency agreement?
March 11
Greg and Sandra’s buyer agency agreement is extended to accommodate the 10 days they were under contract, so the new expiration date is March 11.
Which clause of the sales contract says that the contract is the one and only contract between the parties?
Entire Agreement, Modification and Assignment
What’s the difference between a Georgia exclusive and a non-exclusive buyer’s agreement?
The only difference is whether the buyer is working with one broker or multiple brokers.
When discussing brokerage compensation policies, brokers must disclose ______.
How brokers representing other parties will be paid
Rental property owners are exempt from fair housing laws if which of the following conditions is met?
If the owner occupies a building with no more than four families, that owner is exempt.
Albert wants to sell his house to his cousin, who’s willing to assume his FHA loan. What clause in Albert’s mortgage requires him to obtain the lender’s permission to do this?
Alienation clause
Eduardo works in Fayetteville as a broker. How does Georgia license law define his status?
Eduardo works in Fayetteville as a broker. How does Georgia license law define his status?
what is sub-agency?
a situation in which a licensee brings an unrepresented buyer to a transaction.
Business brokers in Georgia can seek credentials such as all of the following EXCEPT ______.
The Business Intermediary Endorsement (BIE) is not a recognized credential for business brokers.
What are the two power of attorneys?
General: gives broad power
Special: gives specific power
What is an universal agent?
One that is appointed by the government
Wendell just listed Barb’s home. Barb told him that there weren’t any easements on the property, and Wendell hasn’t seen a copy of the survey. What is Wendell’s responsibility relative to the disclosure of any easements?
He only needs to disclose easements if they’re known.
When a licensee is working with a property located near a Superfund site, what does that mean?
The licensee must disclose the existence of an environmental hazard in the area.
