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Real Estate Principles and Practices > Midterm > Flashcards

Midterm Flashcards

1
Q

Joint Tenancy

A

Ownership by two or more persons with rights of survivorship

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2
Q

Eminent Domain

A

Right of the government to take private property for public use upon just payment to the owner

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3
Q

Fee Simple Absolute

A

Gives the owner the most complete rights to real property-the highest form of ownership

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4
Q

Fee Simple

A

The greatest and most complete interest in land, with absolute ownership in real property

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5
Q

Does Grantee/Buyer sign Deed

A

No, It is signed only by the grantor/seller

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6
Q

What is required on a Deed

A

The deed conveys title. It must be properly executed delivered and accepted for title to pass

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7
Q

Easement of Necessity

A

Created by law when a landlocked person needs access their property

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8
Q

Quitclaim Deed

A

A deed containing no warranties, in which a grantor relinquishes any claim or right they may have

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9
Q

Warranty Deed

A

The grantor/seller guarantees that the title is good, free and clear of all liens and encumbrances

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10
Q

General Warranty Deed

A

A deed giving fee simple title(most complete title possible): grantors guarantee title through themselves, their heirs and the predecessors

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11
Q

Restrictions

A

Restrictions prohibit certain uses of property

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12
Q

When is title transfered

A

Title is transferred upon delivery and acceptance

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13
Q

Easement

A

Easement is right of way through land of another

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14
Q

Non Conforming Use - Grandfather Rights

A

A use in violation of current zoning laws but permitted because the usage was in effect before the law

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15
Q

Leasehold Estate/Interest

A

The interest a lessee/tenant has in a lease

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16
Q

Bundle of Rights/Privileges of ownership

A

The legal right of an owner to use, enjoy, sell, will or mortgage

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17
Q

Police Power

A

Right of government to restrict use of land

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18
Q

Bill of Sale

A

Used to handle personal property in real estate transactions

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19
Q

Recordation of Deed

A

To give constructive notice to the world

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20
Q

Escheat

A

Right to state to property of intestate without heirs to claim the property

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21
Q

Who must sign the Purchase Agreement

A

Both the seller and buyer must sign

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22
Q

Earnest Money Deposit

A

Initial payment to bind transaction made when purchase agreement is signed

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23
Q

Difference between
License
and
Easement

A

License give access to the property as required But is revocable at the grantors option, is not transferrable and not assignable at sale
Easement is an interest in another persons land created by law, people or use and must be in writing

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24
Q

Exclusive Right to Sell

A

A listing that gives the brokerage firm the sole right to sell the property during the term of the agreement

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25
Q

What must be included in Listing Contracts

A

description of property, price, terms, services provided, amount of commission signatures of all owners, and expiration date

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26
Q

Who decides how much earnest money to offer

A

Buyer determines how much is offered

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27
Q

Who decides if the amount of earnest money offer is acceptable

A

Seller decided if amount offered is enough

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28
Q

Define Optionor

A

Is the seller/owner in a right to purchase property contract

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29
Q

Exclusive Agency

A

listing that gives one brokerage firm the exclusive right to sell while the owner retains permission to sell without paying a commission

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30
Q

Easement by Prescription

A

Right to the land of another gained through continuous use

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31
Q

When does funds from brokers trust account get dispersed

A

The funds are dispersed when the transaction is closed

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32
Q

Who determines the amount of commission received by the agent

A

The commission is not determined by law it is decided and agreed to by the seller and the agent

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33
Q

Adverse Possession

A

Rightful owner loses land to occupant who has taken possession in a hostile, distinct, continuous, visible and actual way for a statutory period

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34
Q

Alienation Clause /Due on sale clause

A

seller cannot have someone else assume the mortgage if this clause is written into the purchase agreement or deed. amount remaining of loan is due if property is sold

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35
Q

Down Zoning

A

property rezoned to lower value

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36
Q

Promissory Note

A

a promise to repay a debt , a basic loan document

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37
Q

Loan to Value Ratio

A

The ratio of a mortgage to the appraised value or purchase price of a property

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38
Q

Acceleration Clause

A

Upon default the entire balance of debt is due

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39
Q

FHA Loans

A

Loan made by approved lenders and insured b the government can be assumed mortgage is insured and may have certain restriclions

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40
Q

Conventional Loan Pre Payment

A

penalty always paid

41
Q

Land Contract/Contract for deed

A

Title passes when deed is delivered

42
Q

Why use a land contract

A

Seller receives income, Seller finances seller retains land and all money paid if buyer defaults

43
Q

RESPA- Real Estate Settlement Procedures Act

A

RESPA passed in 1974 required lenders to fully disclose closing cost to buyer and seller when the loan is federally related-banned excessive escrow

44
Q

VA Loan

A

either party can pay points

45
Q

Reverse Mortgage

A

Borrows on home equity reverse of regular mortgage process

46
Q

Difference Between
Servient Tenant
Dominant Tenant

A

In an Easement Appurtenant the Servient Tenant is the owner of the land the Dominant Tenant uses to access their property as in a shared driveway

47
Q

Term Mortgage

A

not commonly used are for specific periods of time and demand full payment at the end of their term

48
Q

Who signs the listing agreement

A

all owners of the property or their agent

49
Q

What is a variance

A

Variance is permission to use land in a way that varies from current zoning when compliance would create undue hardship

50
Q

Moratorium

A

a legal period of delay

51
Q

Rural Economic and Community Development RECD

A

loan made in rural areas of 20.000 or less in population

52
Q

FHA- Insured

A

1% year cap of 5%

53
Q

FHA Arm

A

an adjustable rate loan that increases over time until it reaches a cap 1/2% per year capped at 5%

54
Q

Zoning

A

Land use regulation

55
Q

Parol Evidence

A

Oral Evidence cannot change the terms of a written document

56
Q

Unilateral Contract

A

Only one party making a promise used in option and listing agreements

57
Q

Brokers Trust Account

A

Used to hold earnest money deposit and any other funds associated with the sale of a property. All funds are dispensed at the closing of the contract

58
Q

Termination of Listing Agreement

A

listing agreements can be terminated by mutual consent

59
Q

Fiduciary Duties

A

Agent owes Principle/Seller complete allegiance, and fairness and honesty to the customer/buyer

60
Q

Principle/Client

A

retains the Broker/Agent and is the client

61
Q

Discount Point

A

Percentage charged by the lender to increase the yield of the loan each point represents 1% of the loan amount.

62
Q

Escape Clause

A

Is signed by buyer and seller

63
Q

Vet Sell Home

A

To sell home vet needs a release of liability release has been required since 1988

64
Q

List contract

A

List contract is a special agency agreement

65
Q

Credit Terms in Advertising

A

Controlled by Regulation Z

66
Q

Physical Characteristics of Land

PIINN

A

Immobility Industructibility Nonhomogeneity Nonfungible

67
Q

Mill Levy

A

figure used to compute taxes on property

68
Q

Situs

A

Location, location effects price

69
Q

Difference between Joint Tenancy and Tenancy in Common

A

Joint Tenancy is ownership by two or more persons with rights of survivorship
Tenancy in Common is an interest in real estate held by two or more persons, each having equal rights of possession without rights of survivorship

70
Q

Customer as a party to real estate transaction

A

Customer is not represented

71
Q

Economic Characteristics of Land

ESSD

A

Scarcity Situs Durability

72
Q

Statute of Frauds

A

State laws that require certain contracts be in writing in order to be enforceable

73
Q

Customer/Buyer Confidentiality

A

Customer/Buyer is owed no confidentiality in real estate transaction

74
Q

Valid Contract

A

Must have offer and acceptance, consideration, capacity of parties, legality of the object, written and signed consent

75
Q

Dual Agent

A

representation of third party by a broker already in a principal-agent alliance, thereby creating two principals

76
Q

Trade Fixture

A

Tenant has right to remove

77
Q

Agency

A

Agent does not always represent the one who pays them

78
Q

Special Agency

A

One special task to perform then done

79
Q

How many acres ins a Township

A

36 acres in a township

80
Q

Who signs the deed

A

All owners must sigh the deed

81
Q

General Agent

A

Agent with broad authority to make decisions for his client

82
Q

Sub Agency

A

has same responsibility as original agent

83
Q

Latent Defect

A

Defect that is not visible

84
Q

Patent Defect

A

Defect that can be seen

85
Q

Best Deed

A

General Warranty Deed

86
Q

Broker Commission

A

Brokers cannot set commissions

87
Q

Who does FHA insurance protect

A

FHA insurance protects the lender

88
Q

Is recording of the Deed mandatory

A

No not mandatory to record deed

89
Q

How many acres in a section of land

A

A section of land is 640 acres or 1 square mile

90
Q

How many acres in a township

A

a Township is divided into 36 sections that is 6 miles square and contains 640 acres which equals 1 square mile

91
Q

Devisee

A

person who received the gift of real estate by will

92
Q

Livery of Seizin

A

Transfer of possession

93
Q

What is a mortgage

A

Mortgage pledges property as collateral of a debt

94
Q

Fannie Mae

A

Fannie Mae is industry leader

95
Q

Can Purchase Agreements be assigned

A

Purchase agreements are assignable unless they state otherwise

96
Q

If Seller takes back a mortgage

A

It is always a second lien

97
Q

Client/Principal

A

Terms are interchangable

98
Q

How are Life Estates Created

A

Life Estates can be created through deed or will

99
Q

What is the difference between a valid, void and voidable contract

A

A valid contract meets the requirements of offer and acceptance consideration capacity legality and writing.
A void contract does not meet the requirement of legality or performance, a voidable contract does not meet one of the conditions of a valid contract such as capacity.

Real Estate Principles and Practices (1 decks)

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