Midterm Flashcards
Joint Tenancy
Ownership by two or more persons with rights of survivorship
Eminent Domain
Right of the government to take private property for public use upon just payment to the owner
Fee Simple Absolute
Gives the owner the most complete rights to real property-the highest form of ownership
Fee Simple
The greatest and most complete interest in land, with absolute ownership in real property
Does Grantee/Buyer sign Deed
No, It is signed only by the grantor/seller
What is required on a Deed
The deed conveys title. It must be properly executed delivered and accepted for title to pass
Easement of Necessity
Created by law when a landlocked person needs access their property
Quitclaim Deed
A deed containing no warranties, in which a grantor relinquishes any claim or right they may have
Warranty Deed
The grantor/seller guarantees that the title is good, free and clear of all liens and encumbrances
General Warranty Deed
A deed giving fee simple title(most complete title possible): grantors guarantee title through themselves, their heirs and the predecessors
Restrictions
Restrictions prohibit certain uses of property
When is title transfered
Title is transferred upon delivery and acceptance
Easement
Easement is right of way through land of another
Non Conforming Use - Grandfather Rights
A use in violation of current zoning laws but permitted because the usage was in effect before the law
Leasehold Estate/Interest
The interest a lessee/tenant has in a lease
Bundle of Rights/Privileges of ownership
The legal right of an owner to use, enjoy, sell, will or mortgage
Police Power
Right of government to restrict use of land
Bill of Sale
Used to handle personal property in real estate transactions
Recordation of Deed
To give constructive notice to the world
Escheat
Right to state to property of intestate without heirs to claim the property
Who must sign the Purchase Agreement
Both the seller and buyer must sign
Earnest Money Deposit
Initial payment to bind transaction made when purchase agreement is signed
Difference between
License
and
Easement
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
Exclusive Right to Sell
A listing that gives the brokerage firm the sole right to sell the property during the term of the agreement
What must be included in Listing Contracts
description of property, price, terms, services provided, amount of commission signatures of all owners, and expiration date
Who decides how much earnest money to offer
Buyer determines how much is offered
Who decides if the amount of earnest money offer is acceptable
Seller decided if amount offered is enough
Define Optionor
Is the seller/owner in a right to purchase property contract
Exclusive Agency
listing that gives one brokerage firm the exclusive right to sell while the owner retains permission to sell without paying a commission
Easement by Prescription
Right to the land of another gained through continuous use
When does funds from brokers trust account get dispersed
The funds are dispersed when the transaction is closed
Who determines the amount of commission received by the agent
The commission is not determined by law it is decided and agreed to by the seller and the agent
Adverse Possession
Rightful owner loses land to occupant who has taken possession in a hostile, distinct, continuous, visible and actual way for a statutory period
Alienation Clause /Due on sale clause
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
Down Zoning
property rezoned to lower value
Promissory Note
a promise to repay a debt , a basic loan document
Loan to Value Ratio
The ratio of a mortgage to the appraised value or purchase price of a property
Acceleration Clause
Upon default the entire balance of debt is due
FHA Loans
Loan made by approved lenders and insured b the government can be assumed mortgage is insured and may have certain restriclions
Conventional Loan Pre Payment
penalty always paid
Land Contract/Contract for deed
Title passes when deed is delivered
Why use a land contract
Seller receives income, Seller finances seller retains land and all money paid if buyer defaults
RESPA- Real Estate Settlement Procedures Act
RESPA passed in 1974 required lenders to fully disclose closing cost to buyer and seller when the loan is federally related-banned excessive escrow
VA Loan
either party can pay points
Reverse Mortgage
Borrows on home equity reverse of regular mortgage process
Difference Between
Servient Tenant
Dominant Tenant
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
Term Mortgage
not commonly used are for specific periods of time and demand full payment at the end of their term
Who signs the listing agreement
all owners of the property or their agent
What is a variance
Variance is permission to use land in a way that varies from current zoning when compliance would create undue hardship
Moratorium
a legal period of delay
Rural Economic and Community Development RECD
loan made in rural areas of 20.000 or less in population
FHA- Insured
1% year cap of 5%
FHA Arm
an adjustable rate loan that increases over time until it reaches a cap 1/2% per year capped at 5%
Zoning
Land use regulation
Parol Evidence
Oral Evidence cannot change the terms of a written document
Unilateral Contract
Only one party making a promise used in option and listing agreements
Brokers Trust Account
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
Termination of Listing Agreement
listing agreements can be terminated by mutual consent
Fiduciary Duties
Agent owes Principle/Seller complete allegiance, and fairness and honesty to the customer/buyer
Principle/Client
retains the Broker/Agent and is the client
Discount Point
Percentage charged by the lender to increase the yield of the loan each point represents 1% of the loan amount.
Escape Clause
Is signed by buyer and seller
Vet Sell Home
To sell home vet needs a release of liability release has been required since 1988
List contract
List contract is a special agency agreement
Credit Terms in Advertising
Controlled by Regulation Z
Physical Characteristics of Land
PIINN
Immobility Industructibility Nonhomogeneity Nonfungible
Mill Levy
figure used to compute taxes on property
Situs
Location, location effects price
Difference between Joint Tenancy and Tenancy in Common
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
Customer as a party to real estate transaction
Customer is not represented
Economic Characteristics of Land
ESSD
Scarcity Situs Durability
Statute of Frauds
State laws that require certain contracts be in writing in order to be enforceable
Customer/Buyer Confidentiality
Customer/Buyer is owed no confidentiality in real estate transaction
Valid Contract
Must have offer and acceptance, consideration, capacity of parties, legality of the object, written and signed consent
Dual Agent
representation of third party by a broker already in a principal-agent alliance, thereby creating two principals
Trade Fixture
Tenant has right to remove
Agency
Agent does not always represent the one who pays them
Special Agency
One special task to perform then done
How many acres ins a Township
36 acres in a township
Who signs the deed
All owners must sigh the deed
General Agent
Agent with broad authority to make decisions for his client
Sub Agency
has same responsibility as original agent
Latent Defect
Defect that is not visible
Patent Defect
Defect that can be seen
Best Deed
General Warranty Deed
Broker Commission
Brokers cannot set commissions
Who does FHA insurance protect
FHA insurance protects the lender
Is recording of the Deed mandatory
No not mandatory to record deed
How many acres in a section of land
A section of land is 640 acres or 1 square mile
How many acres in a township
a Township is divided into 36 sections that is 6 miles square and contains 640 acres which equals 1 square mile
Devisee
person who received the gift of real estate by will
Livery of Seizin
Transfer of possession
What is a mortgage
Mortgage pledges property as collateral of a debt
Fannie Mae
Fannie Mae is industry leader
Can Purchase Agreements be assigned
Purchase agreements are assignable unless they state otherwise
If Seller takes back a mortgage
It is always a second lien
Client/Principal
Terms are interchangable
How are Life Estates Created
Life Estates can be created through deed or will
What is the difference between a valid, void and voidable contract
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.
