Deck 1 Flashcards
1
Q
6 Categories of Property
A
Residential, Commercial, Mixed Use, Industrial, Agricultural, Special Use
2
Q
Uniqueness
A
No 2 parcels alike; Unique geographic area
3
Q
Factors Affecting Supply
A
Labor force, construction, material costs, gov’t controls, financial policies, local gov’t factors
4
Q
Factors Affecting Demand
A
Population, demographics, employment, wage levels
5
Q
Tax Benefits of Selling
A
Married file jointly, no tax on up to 500k
6
Q
Leverage
A
Use borrowed money for investment
7
Q
Brokerage
A
Brings people together in real estate transaction
8
Q
Broker
A
Person licensed to buy, sale, exchange, or lease property
9
Q
Salesperson
A
Conducts brokerage activities on behalf of broker
10
Q
Supply & Demand Influenced By
A
Uniqueness and immobility
11
Q
Physical Characteristics of Land
A
Immobility, uniqueness, indestructibility
12
Q
Bundle of Legal Rights
A
Possession, control, enjoyment, exclusion, disposition
13
Q
Appurtenance
A
Right or privilege associated w/ property although not a physical part of it
14
Q
Riparian Rights
A
River or stream
15
Q
Littoral Rights
A
Commercially navigable lakes, seas, or oceans
16
Q
Prior Appropriation
A
The right to use any water is controlled by the state; Must have plans for beneficial use
17
Q
Personal Property
A
“Chattels”; It’s movable
18
Q
Annually Cultivated Plants
A
“Emblements”; considered personal property
19
Q
Not Annually Cultivated Plants
A
Considered real estate; trees or bushes
20
Q
Fixture
A
Personal property so attached that by law it becomes part of the property
21
Q
Legal Tests of Fixtures
A
“MARIA”; Method of annexation (permanency), adaptability, relationship of the parties, intentions, agreement of the parties
22
Q
Trade Fixtures
A
Property used in the course of business
23
Q
Title
A
Right to ownership of real property; Evidence is provided by deed
24
Q
Estate in Land
A
Defines degree, quantity, nature, extent of an owner’s interest in real property; must allow posession
25
Freehold Estate
Lasts for indefinite period; may also be a fee simple estate
26
Fee Simple Estate
Continues indefinitely and may be passed to heirs
27
Life Estate
Held only for the lifetime of a person and ends when they die
28
Fee Simple/Fee Absolute
Highest interest recognized by law; entitled to all rights
29
Fee Simple Defeasible
Subject to occurrence or non occurrence of a specific event
30
Fee Simple Determinable
May be inherited; specific language "so long as, while, during"
31
Fee Simple Subject to Condition
Owner gives on condition of ownership; "no alcohol use on land given"
32
Life Estate
Limited to the life of the holder or some other designated person; holder is called LIFE tenant
33
Pur Autrie Vie
For the life of another
34
Remainder Interest
Creator of estate may name a remainderman for whom the property goes to
35
Reversion Interest
No remainderman; Goes back to original owner
36
Legal Life Estate
Established by law; Dower- wife owns; Curtesy- husband owns
37
Encumbrance
Interest that does not rise to level of ownership
38
Easement
Right to use another's land for particular purpose
39
Easement Appurtenant
Allowed to use a neighbor's land; Dominant tenement- benefits from use; Servient tenement- owner of land
40
Easement in Gross
Right of way for utilities
41
Easement by Necessity
Owner landlocked and must have ingress and regress
42
Easement by Prescription
10-21yrs continuous use without permission
43
Terminating Easements
Need no longer exists, release of the right, abandonment, one party becomes owner of both, nonuse of prescriptive
44
License
Privilege to enter land for a specific purpose
45
Lis Pendens
Litigation pending
46
4 Gov't Power
"PETE"; Police power, eminent domain, taking, escheat
47
Severalty
Owned by one party
48
Forms of Ownership
Tenancy in common, joint tenancy, tenancy by entirety, community property
49
Tenancy in Common
Undivided interest in property; Owners can sell their portion without consent of others
50
Joint Tenancy
Ex husband and wife; surviving party becomes owner
51
Creating Joint Tenancy (PITT)
Possession, interest, time, title
52
Tenancy by Entirety
Surviving spouse inherits ownership
53
Trust
One person transfers ownership to someone else to hold or manage for a 3rd party
54
Fiduciary
Acts in confidence and has legal relationship with beneficiary
55
Living Trust
Trust that lasts during lifetime
56
Testamentary Trust
Trust enacted by will after death
57
Metes & Bounds
Land description that starts and ends at a point of beginning
58
Acres in a Section
640 (1sq/mi)
59
Square Feet in an Acre
43,560sq/ft
60
Title
Right to or ownership of land
61
Deed
Document which an owner conveys right, title, or interest owned to someone else; must be in writing
62
Deed Requirements
Grantor legally competent, consideration, legal description, exceptions, delivery, grantee named, notarized, habendum clause
63
Title Passes When...
Deed is delivered and accepted
64
Types of Deeds
General warranty, bargain and sale, special warranty, quitclaim
65
General Warranty Deed
Greatest protection; has 5 covenants
66
5 Deed Covenants
Seisin (grantor fully owns), further assurances (make title good), against encumbrances (free from liens), quiet enjoyment (title will be good), warranty forever (promise to compensate if title fails)
67
Special Warranty Deed
Grantor received the title; property was unencumbered; "remise, release, alienate, and convey"
68
Bargain & Sale Deed
Implies grantor holds title
69
Quitclaim Deed
Least protection; no covenants or warranties
70
Deed of Trust
Conveyance from trustor to trustee
71
Adverse Possession "ONCHA"
Open, notorious, continuous, hostile, adverse
72
Intestate
Without a valid will
73
Probate
Judicial process; held in the county which decedent last resided
74
Constructive Notice
Legal presumption that info was obtained; "it's in the book"
75
Actual Notice
Info available; "I read the book and saw it"
76
Recording
Act of placing documents on public record
77
Priority
Order in which documents or liens were recorded
78
Chain of Title
Record of property's ownership beginning w/ earliest owner
79
Action to Quiet Title
Fix a broken chain link in title
80
Abstract of Title
Summary report of what title search found
81
Marketable Title
Title w/ no serious defects, won't expose purchaser to litigation, convinces purchaser they could sell later
82
Proof of Ownership
Certificate of title, title insurance, torrens certificate
83
Certificate of Title
Certifies condition of the title based on exam of public records
84
Title Insurance
Protects from losses arising from defects in the title
85
Standard Title Insurance
Covers defects in public records, forged documents, incompetent grantors, incorrect statements, improperly delivered deeds
86
Extended Title Insurance (Standard +)
Protects against property inspection, exam of survey, unrecorded leans
87
Title Insurance Does Not Cover
Defects and liens, changes by zoning
88
Managing Broker
Responsible for supervision of everyone operating under them
89
Commissions Payable When?
Sale is consummated by delivery and acceptance of seller's deed
90
Antitrust Laws Protect Against...
Price fixing, group boycott, allocation of customers, tie-in agreements
91
Treble Damages
3x actual damages
92
Do Not Call Registry Lasts For...
18 months
93
Agency
Common law, statutory law, admin law
94
Agent
Person authorized to act on behalf of the principal
95
Agency
Fiduciary relationship between principal and agent
96
Nonagent
Works with buyer or seller without representing either party's interest
97
Express Agency
Oral or written contract
98
Listing Agreement
Agency agreement between broker and seller
99
Implied Agency
Parties act as though they have mutually consented to an agency
100
Fiduciary Responsibilities (COLD-AC)
Care, obedience, loyalty, disclosure, accounting, confidentiality
101
Universal Agent
Someone empowered to do anything the principal could do personally
102
General Agent
Represents the principal in certain business matters
103
Special Agent
Represents principal in one specific act
104
Single Agency
Agent represents one party
105
Dual Agency
Agent represents 2 parties
106
Nonagent
Not an agent of either party; helps buyer and seller with paperwork
107
Listing Agreement
Employment contract between a broker and seller
108
Types of Agreements
Exclusive right to sell, exclusive agency listing, open listing
109
Exclusive Right to Sell
One authorized listing broker receives a commission; seller pays listing broker regardless who sells property
110
Exclusive Agency Listing
One broker authorized to act as exclusive agent of principal but seller retains right to sell w/o obligation to pay broker; broker only paid if procuring cause
111
Open Listing
Seller retains right to employ any brokers as agents; listing brokers market simultaneously; seller only pays broker who produces ready willing and able buyer
112
MLS Clause
Brokers make listing available through other brokers
113
All Exclusive Listings Should...
Specify a definite period which broker is employed
114
Asking Price
Proposed sale price
115
Evidence of Ownership
Warranty deed, title insurance policy, abstract of title w/ attorney opinion
116
Executed Contract
Contract that has been performed
117
Executory Contract
One party still has an act to perform; sales contract is an example from signing until closing
118
OCCLL
Offer; consideration; consent; legal purpose; legally competent parties
119
Valid Contract
Contract that meets all essential elements
120
Void Contract
Contract that lacks some or all elements and has no legal force
121
Voidable Contract
Has all elements at face value but may be rescinded based on a legal principal (ie contract w/ minor)
122
Unenforceable Contract
Has all elements but cannot be forced in court (ie oral agreement)
123
Assignment
Transfer of rights or duties under contract
124
Novation
Substitution of a new contract for an existing one
125
Suit for Specific Performance
Buyer asks court to force seller to go through with sale and transfer
126
Recission
Returns the parties to their original positions
127
Offer is accepted when...
Buyer has been notified of seller's acceptance
128
Earnest Money
Money from purchaser; evidence of buyer's intent
129
Equitable Title
After the sales contract is executed but before closing the buyer acquires this interest
130
Amendments to Contracts
A change to a contract that must be initialed or signed by all
131
Addendum to Contracts
A Provision to a contract and must be signed by all
