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Real Estate State Exam > Misc. Concepts > Flashcards

Misc. Concepts Flashcards

1
Q

Homestead | Definition

A

Rights to one’s principal residence

  • Under a legal life estate
  • Laws protect homestead from creditors
  • Family must occupy the homestead
  • Cannot be conveyed by one spouse
  • Endures over life of head of household
  • Interests extinguished if property is destroyed
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2
Q

Homestead | Property Tax Exemptions

A

A tax exemption of a portion of the assessed value

Granted to the homeowner, provided

  • He or she is the head of the family
  • Has resides at the property for the required length of time
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3
Q

Community Property | Separate (4)

A
  • Acquired before marriage
  • Gift or inheritance
  • Acquired with separate-property funds
  • Income derived from separate property
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4
Q

Estates in Trust

A
  • Trustor gives title, deed, trust agreement to trustee
  • Trustee renders fiduciary duties to trustor and beneficiary
  • Beneficiary receives ownership benefits
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5
Q

Land Trust

A

grantor and beneficiary are the same party; beneficiary uses, controls property but does not appear on public records

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6
Q

Cooperative

A

Residential housing option that is actually a corporation:

  • owners do not own their units
  • residents are shareholders in the corporation based on the size of their unit

Corporation has sole, undivided ownership

Owners potentially liable for expenses of entire co-op; creditors may foreclose on entire property

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7
Q

Time-Share

A
  • Lease or ownership interest in property for periodic use on a scheduled basis
  • Lease: tenant leases property per the lease’s schedule
  • Freehold: tenants in common own undivided interests, pay expenses per separate agreement
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8
Q

Lien Theory State

A

lender of mortgaged property holds equitable title rather than legal title; borrower holds legal title

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9
Q

Title Theory State

A

lender holds legal title to the mortgaged property until the mortgagor satisfies the terms and obligations of the loan

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10
Q

Actual Notice

A

knowledge acquired directly through demonstrable evidence

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11
Q

Constructive Notice

A

knowledge one could have obtained

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12
Q

Hypothecation

A

use of real property as collateral for a mortgage loan

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13
Q

Intensity of Usage

A

limits the amount of stores or offices per site area.

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14
Q

Agent’s Fiduciary Duties to Client (6)

A 
Accounting
Confidentiality
Full Disclosure
Obedience
Loyalty
Skill, care, and diligence
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15
Q

Obligations Owed to Customers (3)

A

Honest and fair dealing
Reasonable care and skill
Property disclosure

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16
Q

Foundation of Agency Relationship (3)

A

Confidence
Good Faith
Trust

17
Q

Options

A
  • Optionor gives option to optionee to buy at a given time and price; optionee must pay for option right
  • Unilateral contract: seller must perform, buyer need not
  • If option is exercised, option becomes bilateral sale contract
  • Options are assignable
18
Q

Contract for Deed | Essentials

A
  • Purchase price is paid over time in installments
  • Seller retains title, buyer takes possession, equitable title
  • At the end of period, buyer pays balance, gets legal title
19
Q

Contract for Deed | Interest and Rights

A
  • Seller may encumber or assign interest
  • Seller remains liable for underlying mortgage
  • Buyer may use, possess, or profit
  • Buyer must make periodic payments, maintain the property, and purchase and the end of term
20
Q

Determinants of Value

A

Desire
Purchasing Power
Scarcity
Utility

21
Q

Constructive Eviction

A

tenant vacates on account of landlord’s failure to maintain premises

22
Q

Paid in Arrears

A

paid after the expenses has been incurred

23
Q

Pennsylvania Human Relations Act (PHRA)

A

state law “substantially equivalent” to federal Fair Housing Act. More restrictive in some cases

24
Q

Pennsylvania Human Relations Act (PHRA) | Requirements

A

All persons must have access to housing of choice without regard to

  • Race
  • Color
  • Religion
  • National Origin
  • Sex
  • Age (40+)
  • Disability
  • Familial Status

PA law applies to housing & commercial property

PHRA requires employers with 4+ employees to adopt nondiscriminatory practices

25
Q

Protection Clause

A

preserves broker’s commission if owner sells to someone broker introduced to property within a set number of days after listing agreement ends

26
Q

Short Sales

A
  • Owner sells home below mortgage value and sale proceed go to lender
  • Must be approved by lender
  • Typically happens when owner is behind on payments
27
Q

Interstate Land Sales Full Disclosure Act

A
  • Prevents fraudulent marketing when land sold sight unseen
  • Buyer can void contract if report is not received
  • Does not apply to subdivisions of 25 lots or less or if lots are 20 acres or more
  • Buyer can revoke contract until midnight of 7th day following signing

Real Estate State Exam (20 decks)

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