Fourth Test Flashcards
What is real property?
Land and anything that is permanently attached to or growing on the land
What are freehold estates?
When the owner of land grants to someone some or all of the rights of the land he owns
Various ownership interests in land are called what?
Estates in Land
The most common estate in land is what?
fee simple
What is a fee simple?
Complete ownership of land
The grant of a fee simple is made by a deed which states what?
“to A and his heirs”
A fee simple estate may be subject to no conditions, called what?
fee simple absolute
When a fee simple is subject to certain conditions, it is called what?
fee simple determinable
A fee simple subject to a condition statement is a promise to what?
never allow gambling
An estate in land which grants land for the duration of a lifetime is called what?
life estate
What are the words of creation for life estate?
“to A for life”
A life estate created in one person with reference to the life of another is called what?
Life Estate Pur Autre Vie
What do people normally refer to when they say someone owns a land?
freehold estates
What is the most important leasehold estate?
the term of years
A leasehold estate given for a period of time that automatically renews itself unless one party notifies the other of non-renewal is called what?
Periodic Tenancy
The notice to terminate a year to year tenancy is what?
6 months advance notice
A notice must terminate the tenancy at what point in the period?
The end
What is special about a tenancy at will?
It can be terminated without advance notice by either party
Most obligations of landlord and tenant are created through what?
lease contract
The landlord is obliged to provide possession of the premises with what?
Quiet Enjoyment
If a landlord’s interference with a tenant is equivalent to forcible conviction, what relieves the tenant of any obligations?
Constructive eviction
The tenant’s primary obligation is what?
Pay rent
What must the tenant keep the premises free from?
waste
What must the tenant do if they alter the premises without the landlord’s consent?
Restore it to how it was before the end of the tenancy
A transfer of all the tenant’s interest is called what?
assignment of the lease
A transfer of fewer than all rights is called a what?
sublease (tenant becomes junior landlord)
What is easement?
the right to make some specified use of the land of another
What is right of way easement?
when a landowner is granted the right to pass over the land of a neighbor to reach the landowner’s property
Give an example of restrictive covenants
when tenants are placed in a deed to limit the uses to which the land may be put, or the individuals to whom it may be conveyed
what is tenancy in common?
owners hold undivided interests in land (each owner has full possession)
What is joint tenancy?
same as tenancy in common, except each tenant has the right of survivorship
What is survivorship?
Upon the death of one joint tenant, his interest passes automatically to the other tenant
Tenancy by the entireties is between who?
Husband and wife
In states that follow the community property system, all property acquired with funds during the marriage is what?
community property that belongs equally to both husband and wife
What are forms of co-ownership created through mortgages called?
Liens
The lender that owns the mortgage is the what?
Mortgagee
They buyer of the property is the what?
Mortgagor
A conveyance of land is generally done by what?
A deed
In medieval England, the transfer of land was accomplished through a ceremony called what?
Livery of Seisin
In a typical real estate transaction, delivery of the deed occurs when?
At the closing where deeds, mortgages, and money are transferred
There are how many types of deeds?
3
A promise that the grantor holds good title to the land is called what?
General Warranty Deed
Promises only that the grantor is giving the grantee a title as good as the grantor originally received are called what?
Special Warranty Deed
What is a deed that contains no warranties and simply gives the grantee whatever interest in the property?
Quitclaim deed
Deeds are indexed under the names of who?
The grantor-grantee
The chain of grantor-grantee may be traced through a what?
title search
The researcher can prepare an abstract of what two things?
Title and title opinion
The purchaser may purchase title insurance to cover any losses if the title proves what?
Defective
To make the recording system work, purchasers are protected from what?
the effects of deeds that are not properly recorded
A person who is not aware of any ownership interests not reflected in the deeds record are called what?
A bonafide purchaser
What is adverse possession?
A party who remains in continuous, hostile possession of land for at least 20 years acquires title to the land
What are zoning ordinances?
Land regulations in which structures may be erected
Government interferes with the free ownership of land through what?
Eminent domain
What is the court proceeding of eminent domain called?
Condemnation
Through eminent domain, the court will order the land to be transferred and determined a fair price because of what US amendment?
5th
What are sole proprietorships?
A business owned and operated by one person
What are the two requirements for starting a sole proprietorship?
- obtaining a city business license
- a tax identity number
A general partnership consists of what?
2 or more partners having equal rights in the management and control, and equal rights in profit sharing and losses
Apparent authority exists when?
when the contract was not approved by other partners, but conduct or actions reasonably let third parties to believe such authority exists
what are limited partnerships?
It has two or more people who are co-owners for profit
A legal entity formed under the corporate laws of a state is called what?
A business corporation
All corporations are formed by filing what?
Articles of Incorporation
Corporations are governed by a set of rules or policies called what?
By laws
who are the 3 groups that play an important role in all corporations?
- Shareholders
- Directors/board
- Officers
The president and treasurer of a corporation may be called what?
CEO & CFO
Professional corporations are formed for the purpose of engaging in certain professions such as what?
Medicine and law
In professional corporations, who is allowed to be shareholders?
Licensed professionals
A small corporation whose shares and stock are not open to the public are called what?
Closed Corporations
A corporations whose shares and stock can be purchased by anyone are called what?
Public Corporations
Non-profit corporations have what but not what?
members, not shareholders
Limited Liability Partnerships require what?
Malpractice insurance
In an LLP, liability is available to who?
partners who participate in the business
LLP’s are often used by who?
Professionals (lawyers)
In an LLC, the corporation itself is liable for its own what?
Debts
what is the big the difference between an LLC and a corporation?
LLC’s are not taxed as much
The term security describes a what?
Investment in a business
what is the most common type of security?
A share of stock in a business
Loans are also called what?
Debt Securities
What year did the SEC enact The Securities Act?
1933
What year did the SEC establish The Security Exchange Act?
1934
What year did the SEC establish The Sarbones-Oxley Act?
2002
What act established the Public Company Accounting Oversight Board?
Sarbones-Oxley Act of 2002
if a corporation fails to operate as an entity that is separate from its owners, a creditor may do what?
“pierce the corporate veil”
Constitutional government in the United States operates according to what general principles?
- Federalism
- Separation of powers
- Judicial review
What doctrine made the Bill of rights included in the concept of dur process and the 14th amendment?
Incorporation Doctrine
The first Amendment describes what freedoms?
- Religion
- Speech
- Press
- Assembly
- Petition
What two provisions are included in the first amendment about religion?
- Establishment Clause
- Free Exercise Clause
Freedom of speech does not protect what?
Defamatory Speech or Obscenity
what 4 amendments in the Bill of Rights deal with rights of criminal defendants?
- 4
- 5
- 6
- 8
Which amendment protects equal rights?
14
Which amendment prohibits the US from abridging the right to vote?
15
the 24th amendment prohibits what?
poll tax
26th amendment does what?
18 year olds can vote
Due process is a requirement of which amendments?
5th and 14th
What does procedural due process state?
unless special circumstances exist, the government cannot deprive a person of their rights without notice and opportunity for a fair hearing
What is substantive due process?
The government cannot pass laws that interfere with a person’s rights, unless it serves a legitimate purpose
The rule that a law has a reasonable connection to a legitimate state purpose is called what?
Rational Basis Test
Gross income includes what?
value of cash, property or services, awards, or windfalls
Unless otherwise provided in the written agreements, alimony is what?
Taxable to the receiving spouse and a deduction to the paying spouse
What are the four standards to establish an alimony deduction?
- written divorce/separation agreement
- cannot live together
- liability to make payments must cease before or at death
- payments in cash or its equivalent
Under the Tax Cuts and Jobs Act, alimony payments are eliminated if executed after when?
December 31st, 2018
Under the Tax Cuts and Jobs Act, child support is what?
Not taxable to the receiving spouse and deductible to paying spouse
Gross income does not include what?
Life insurance, gifts, damages on injuries
The standard deduction for a single filer is what?
$12,000
The standard deduction for a married couple filing jointly is what?
$24,000
Subject to phase out schedule, student loan interest is deductible up to what?
$2500
Eligible school loan borrowers may use it in addition to what?
Itemizing other deductions
Above the line deductions include what 2 things?
- ordinary and necessary business expenses
- Itemized deductions
If a business chooses standard deduction, the sum after subtracting the above the line deductions is adjusted to what?
Gross income
Under the tax cuts and jobs act, the deduction for all state and local taxes cannot exceed what?
$10,000
Mortgage interest is deductible under how many conditions?
2
For mortgages taken out after December 14, 2017, only the interest on the first how much is deductible?
$75,000
Interest on home equity loans is not deductible unless the loan was used to do what?
Improve the current home
True or false: personal expense are deductible?
False
Unreimbursed medical expense are deductible if they exceed what?
7.5% of gross income
Based on limits and guidelines, a taxpayer may deduct the fair market value of property and the amount of cash contributed to what?
Qualified Charities
What is cash method accounting?
When a taxpayer reports income when she receives payment and takes deduction for eligible expense when they make payments
Accrual method of accounting needs permission from who?
the IRS
