FINAL exam

Question 1

If a person wishes to obtain chattel mortgage, they would need to put up

Answer 1

personal property as collateral

Question 2

If a contract was valid upon creation, but has subsequently passed the statute of limitations, the contract is now considered

Answer 2

unenforceable

Question 3

A quiet title action is a court proceeding intended to:

Answer 3

establish true ownership of a property

Question 4

Usefulness of a property/it’s ability to satisfy a potential buyer’s need, income, or desire is termed:

Answer 4

utility

Question 5

Tax bill that is related to cost per front foot and amount of benefit they receive. this tax bill would be called:

Answer 5

special assessment

generally repayment to the gov for installments of curbs/gutters/enhancements. cost is based on amount of benefit that a particular property receives from the enhancements

Question 6

in tenancy in common, ownership passes to _______ in the situation of death

Answer 6

heirs/will

Question 7

what is adjusted cost basis of a property?

Answer 7

the value of the land’s improvements

Question 8

Exclusive Agency Listing allows the seller to

Answer 8

sell through their own efforts in addition to the broker’s, without paying a commission to the broker.
MUST still contain a termination date

Question 9

What are the 4 elements of a contract?

Answer 9

1. competent parties
2. agreement to do/not do certain things (mutual consent)
3. legal consideration (promises something of value)
4. legal object (agreement to do something legal)

Question 10

What is “Novation”

Answer 10

the substitution of a new obligation for an old one. Or sub of new parties to an existing one. (buyer assuming seller’s loan)

Question 11

Open Listing allows for:

Answer 11

the seller to use several brokers’ services and not pay a commission should they sell the house themselves.

Question 12

Exclusive Right To Sell allow for:

Answer 12

broker to receive commission if property is buyer is procured by anyone before termination date.

Question 13

An implied contract is an agreement inferred by actions of the parties, an express contract is a result of

Answer 13

a written or oral agreement

Question 14

If a condo is sold by a developer, what kind of purchase is it?

Answer 14

Land sales contract

A collection escrow is required since the buyer is not receiving a deed until the full purchase price has been paid.1

Question 15

a security agreement creates a lean against

Answer 15

Personal property

chattel mortgage is a lean instrument, but sa is the actual document used.

Question 16

A lis pendens is

Answer 16

a legal doc serving as constructive notice that an action against a property that has been noted.