Law

Question 1

Leasehold

Answer 1

Tenant right to occupy real estate during term of lease

Question 2

Determinable fee estate

Answer 2

Property returns to original grantor when a specified condition occurs. Property is no longer use fir the purpose prescribed.

No longer church- reverts back

Question 3

Fee simple absolute

Answer 3

Maximum possible estate or right of ownership of real property continuing forever

Question 4

Life estate

Answer 4

Interest in property that is limited to the duration to the lifetime of its owner or some designated person(s)

Question 5

Easement appurtenances

Answer 5

An easement that is annexed to the ownership of one parcel and allows the owner the use of the neighbor’s land

Question 6

Remainder interest

Answer 6

The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate. Such as when an owner conveys a life estate to one party and the remainder to another.

Question 7

Easement in Gross

Answer 7

N easement that is not created fir the benefit for any land owned by the owner of the easement but attaches personally to the easement owner. Example: a right granted by owner to a friend to use a portion of the property for the rest of the friend’s life.

Question 8

Severally

Answer 8

Sole ownership

Question 9

Servient tenement

Answer 9

Land on which the easement exists in favor of an adjacent property

Question 10

RESPA- real estate settlement procedures act

Answer 10

Law requires disclosure to consumers about mortgage loan by settlements. Prohibits kickbacks or referral fees

Question 11

Sherman Anti Trust Act

Answer 11

Free competition. Illegal private conspiracies and combinations to minimize competition. Price fixing compensation, agreeing to limit their areas of trade or dealing to certain areas or properties

Question 12

UETA-uniform electronic transaction Act

Answer 12

Rules for entering into an enforceable contract using electronic means

Question 13

Fiduciary

Answer 13

One in whom trust and confidence is placed. Real estate agent employed by terms of losing agreement or buyer representation

Question 14

Designated Agency

Answer 14

In house sale with two different agents are involved

Question 15

Exclusive agency

Answer 15

Listing contract which owner appoints real agent as exclusive agent for a designated period of time to sell property at owners terms fir a commission.

Owner reserves right to sell property w/o commissions if they find buyer

Question 16

Open agency

Answer 16

Listing contract in which real estate pro’s compensation is contingent on the RE Pro producing a ready, willing and able buyer before property is sold by another agent or seller

Question 17

Exclusive right to sell

Answer 17

Owner appoints Real Estate pro as exclusive agent for designated period of time w commission regardless of who sells it. Seller, another agent or self

Question 18

Net listing

Answer 18

Listing based on the net price seller receives if property sells. Illegal in many states

Question 19

Transaction whereby sale price is paid in installments and pay only tax for the income recd that year

Also know as contract for deed

Seller financing .. holds deed til last installment

Answer 19

Installment sale

Land contract

Contract for deed

Question 20

Alienation clause

Answer 20

Alien - different…call note if borrowers sells or transfer property to DIFFERENT person

Question 21

Acceleration clause

Answer 21

Accelerate— call note immediately if provisions are defaulted or breached

Question 22

3 types of agency

Answer 22

Special- no ability to bind( lowest level)
General- property managers
Universal- power of attorney (highest level)

Question 23

Ways to create agency

Answer 23

Express Agency- written agreement

Implied Agency- actions of the parties w/o written agreement