Deck 8 Flashcards
fee simple determinable vs fee simple subject to condition subsequent
A fee simple determinable automatically ends the interest in the property when a condition is violated or not met.
A fee simple subject to a condition subsequent is very similar to the fee simple determinable except that the violation of the condition would give the original owner the option to take back the property.
A licensee sells property to a young married couple and later learns they are both 17 years of age. This transaction could best be described as:
valid
Married persons under the age of 18 are considered emancipated minors.
Which of the following best describes a footing?
Concrete slab placed in the ground upon which the foundation rests
The provisions of the Real Estate Settlement Procedures Act (RESPA) apply to:
RESPA covers federally related one- to four-family mortgage loans, including equity loans.
A subordination clause:
is very often used in the purchase of raw land by a builder.
A builder purchases raw land on a first trust deed inserting a subordination clause so that when he builds he can get a new first trust deed making the first one become second.
If a zoning law permits the use of a piece of property that is restricted in use and construction by the deed, which of the following prevails?
Deed restrictions
Deed restrictions will take precedence over zoning laws if the deed restriction is more stringent than the zoning law.
The recording of a lease is usually paid for by the:
lessee
The lessee is the person that receives an estate for years and may want to record the lease as a matter of record. Keep in mind, the person who benefits from the recording pays for the recording.
Mils are often used in calculating
Property tax rates
The property that will be pledged as collateral for a loan is known as:
Security
A written decision of the court, that when recorded creates a lien is known as:
An abstract of judgment
To determine an encroachment, the purchaser should obtain:
A survey
Only a survey will show an encroachment.
This is a type of ownership where individuals actually own the building or unit they live, but common areas are owned jointly (not an undivided interest) with the other members of the development or association:
Planned unit development
In a planned unit development, the individuals actually own the building or unit they live in, but the common areas are owned jointly with the other members of the development or association. The common areas that are within the development are owned jointly by all the residents, so if there were 50 homes then each owner would have 1/50th ownership of the common areas. This differs from a condominium in that there is an undivided ownership in the common elements, meaning that everyone is part owner but no one owns a certain percentage like in a PUD development.
Depreciation, as used in the cost approach to appraisal, may be defined as:
a loss in value from any cause
