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Real Estate > National > Flashcards

National Flashcards

1
Q

The owner states the price he/she wants for the property and agrees to pay the broker any amount over that price

A

Net Listing

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2
Q

Unilateral contract in which multiple agents can be employed to find a buyer. If the owner finds a buyer no commission is paid

A

Open Listing (non exclusive listing)

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3
Q

Employment agreement in which specified agent earns a commission if a property is sold within a specified time frame. The specified agent will generally earn a commission even if another licensee finds a buyer. If two exclusive listings are signed the seller may have to pay two commissions

A

Exclusive Listing

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4
Q

Employment contract where the seller agrees to pay a broker commission if any agent/broker finds a buyer but if the owner sells it themselves the broker gets no commission

A

Exclusive Agency Listing

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5
Q

Gives the brokerage firm maximum rights to payment and entitles the listing brokerage firm to a commission regardless of who sells the property during the listing period

A

Exclusive Right to Sell Listing

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6
Q

Is any fact that is relevant to a person making a decision

A

Material Fact

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7
Q

Is a defect concerning a property that a party does not know about, cannot reasonably discover, and would reasonably want to know about before making a decision to buy

A

Material Latent Defect

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8
Q

Is a legal relationship created when a person acts on behalf of another in business and legal dealings with others

A

Agency/Fiduciary

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9
Q

Is the person who employs an agent to represent him/her

A

Principal/Client

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10
Q

Is a party who is not represented by a real estate professional in the transaction

A

Third Party/Customer

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11
Q

Involves taking unfair advantage of a position of confidence or authority or of a persons distress or weakness on mind

A

Undue Influence

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12
Q

Is a show of an intention to inflict harm

A

Menace

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13
Q

Forcing a person to do something against his/her will including using threats to force a person to do something

A

Duress or Coercion

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14
Q

Restored to original condition

A

Rescission

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15
Q

Amount determined in advance to be paid in the event of a breach

A

Liquidated (Damages)

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16
Q

Amount determined by the court or arbitrator to cover the actual amount of the loss suffered as a result of the breach

A

Compensatory (Damages)

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17
Q

Occurs when one party takes action through a legal procedure or lawsuit to force the other party to perform

A

Specific Performance (Damages)

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18
Q

Have limited authority to conduct a single transaction and have no power to bind the client

A

Special Agent

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19
Q

Are authorized to conduct a series of transactions in a specified range and have limited power to bind the client

A

General Agent

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20
Q

Are authorized to perform all acts that can lawfully be delegated to a representative including the power to sign contracts

A

Universal Agent

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21
Q

Has the same knowledge or notice of facts known by his/her agent or subagent

A

Imputed Knowledge

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22
Q

Is liability for the actions of another

A

Vicarious Liability

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23
Q

Agent Duties to a Principal: Obedience, Loyalty, Disclosure, Confidentiality, Accountability, Reasonable Care

A

OLD CAR

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24
Q

Agent Obligations to the Third Party: Disclosure, Accounting, Honesty/Good Faith

A

DAH

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25
Q

Missing any of the essential elements of a contract

A

Void

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26
Q

Has all necessary elements of a contract; upheld in court; valid or voidable

A

Enforceable

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27
Q

All elements of a contract; enforceable by both parties

A

Valid

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28
Q

Is enforceable but is subject to rescission by one of the parties taken advantage of in the contract

A

Voidable

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29
Q

If it was valid at the time it was created but for some reason cannot be proven or enforced in court

A

Unenforceable

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30
Q

Defines the time period after the default on a contract in which an injured party can seek justice from the courts

A

Statue of Limitations

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31
Q

Allows the seller to promise that a buyer may have the first right to meet or beat an offer in the future

A

First Right of Refusal

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32
Q

A tenant pays a fixed rent amount and the landlord pays all expenses

A

Gross Lease

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33
Q

A tenant pays a base rent and part of the taxes, insurance, or maintenance

A

Net Lease

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34
Q

A tenant pays a base rent and a percentage of the sales

A

Percentage Lease

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35
Q

Rent payments adjust over time

A

Graduated/Index Lease

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36
Q

Is the transfer of all of ones interest to another

A

Assignment

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37
Q

Is a method by which a party to a contract transfer his/her duties as well as his/her rights to another and by doing so the party is relived of secondary liability (cancels the existing obligations and creates a new one)

A

Novation

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38
Q

Legally Competent Parties, Mutual Agreement, A Legal Objective, Consideration, A Written Contract

A

Essential Elements of a Contract

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39
Q

One side contract, only one party has an obligation to perform under contract

A

Unilateral Contract

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40
Q

Each party makes promises obligated to perform

A

Bilateral Contract

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41
Q

Is in the process of being performed; something remains to be done by one or both parties

A

Executory Contract

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42
Q

Both parties to the contract have fully performed the terms

A

Executed Contract

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43
Q

Created by either written or oral agreement

A

Express Contract

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44
Q

An agreement created by actions of the parties involved but there is no written record or actual verbal agreement

A

Implied Contract

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45
Q

Is the practice of representing only one principal in a transaction

A

Single Agency

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46
Q

When a agent represents both the buyer and seller in the same transaction

A

Dual Agency

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47
Q

When the agent for the buyer and the agent for the seller in a single transaction work for the same broker

A

Designated Agency

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48
Q

When a licensee acts as a facilitator in a transaction instead of as an agent

A

Non-agency or Transactional Brokerage

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49
Q

Is authority given after an act has already been performed

A

Ratification

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50
Q

Created in an emergency situation when the agent doesn’t have time to obtain instructions from the client

A

Agency by Necessity

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51
Q

Created when a court stops a client from denying that an agency relationship exists, after the client has allowed another person to believe that an agency relationship exists

A

Agency by Estoppel

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52
Q

Created when a person has acted in a manner that implies representation without informed consent

A

Agency by Implication

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53
Q

Is property that is legally or physically immovable; person who owns the land owns its surface, subsurface, and airspace; real estate consist of land, improvements, and rights

A

Real Property

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54
Q

Is property that is not real property; It is mobile and belongs to the seller

A

Personal Property

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55
Q

Personal property can be converted to real property by being attached to the real property

A

Fixtures

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56
Q

Anything attached to the land that will be conveyed

A

Appurtenance

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57
Q

Transfer or Sold

A

Convey

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58
Q

Used to covey title to personal property

A

Bill of Sale

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59
Q

Determines if an item is a fixture: Method, Adaptation, Relationship, Intent, Agreement

A

MARIA

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60
Q

Measurements/Boundaries

A

Metes and Bounds

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61
Q
A

Government Survey (Rectangular)

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62
Q
A

Lot and Block

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63
Q

Tied to flowing water like rivers/streams; Right to use; Moveable

A

Riparian Rights

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64
Q

Tied to standing water like lakes/sea; Non navigable, Center

A

Littoral Rights

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65
Q

Immobile, Indestructible, and Unique (Non homogeneous)

A

Physical Characteristics of Land

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66
Q

Scarcity (Supply/Demand), Improvability, Situs (Location), Fixity (Investment)

A

Economic Characteristics of Land

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67
Q

Special permission to allow a land use that would normally be a violation of current zoning

A

Variance

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68
Q

A promise not to violate the restrictions

A

Covenant

69
Q

Used to privet a violation or to remedy a violation

A

Injunction

70
Q

Grandfathering Clause

A

NonConforming Use

71
Q

The holder of mineral rights or other rights beneath the land has duty to support the surface owners land in its natural state

A

Subjacent Support

72
Q

That an adjoining landowner has duty to support his/her neighbors land in its natural state

A

Lateral Support

73
Q

Transfer real estate or real property

A

Deed

74
Q

Rights granted to others in return for services

A

Feudal System

75
Q

Is the system of ownership that allow land to be owned and combined by individuals

A

Allodial System

76
Q

Is the right of the government to enact legislation dealing with land use an the health, safety, and general welfare of the public

A

Police Power

77
Q

Is the right of a government agency or private entity to take private land for public use

A

Eminent Domain

78
Q

Is the process used to obtain the property (owner receives compensation)

A

Condemnation

79
Q

Is the right to raise money to support itself through taxes

A

Taxation

80
Q

The government has the right to take back property when it has been abandoned; owner dies without a will or no heirs

A

Escheat

81
Q

Sole ownership by one person

A

Tenancy in Severalty

82
Q

Two or more people that own real estate passable to heirs or devisees; No right of survivorship

A

Tenancy in Common

83
Q

Two or more individuals a joint; Same interest, possession, time, title; Right of survivorship

A

Joint Tenancy

84
Q

Married Spouses; Dower=wife rights; Curtesy=husband rights; Right of survivorship

A

Tenant by the Entirety

85
Q

Created when a trustor conveys title to real property to one or more trustees

A

Trust

86
Q

Ownership rights are conveyed with the title and how fees and common elements will be divided in the owners association

A

Condominium

87
Q

Is a common interest community where ownership is held for a specific time each year

A

Timeshare

88
Q

Owned by a corporation; a person would purchase shares of stock in the corporation that owns the building

A

Cooperatives

89
Q

Is any interest or right to land held by third persons that affects the title and possibly the value of the property; Affecting the physical condition of the property include deeds restrictions, easements, and encroachments

A

Encumbrance

90
Q

A written right to use all or portion of another’s land for specific purpose (not a right to possess)

A

Easement

91
Q

Owner of the land

A

Servient Tenement

92
Q

Owns the right to use the land

A

Dominant Tenement

93
Q

Owner of land gives permission to use

A

Easement Appurtenant

94
Q

Owner does not give permission to use the land; If the property is landlocked and the owner needs access her adjacent property

A

Easement by Necessity

95
Q

Formed by statutory law

A

Prescriptive Easement

96
Q

Giving a person the right to use another’s land; City’s right to use

A

Gross Easement

97
Q

Acquiring title when the occupant of the land has been in (OCEAN) open, continuous, exclusive, actual, notorious possession of the property for a required statutory period of time

A

Adverse Possession

98
Q

To trespass onto someone’s property (Unintentionally building a fence)

A

Encroachment

99
Q

Is a security interest of the creditor in the property of another

A

Lien

100
Q

An encumbrance against one or more specified parcels of real estate; Mechanics lien, Property tax lien; Special assessment

A

Specific Lien

101
Q

Applies against a person and all his/her real and personal property, except property exempted by statue; Judgement lien, debt of a decedent, income tax lie, estate tax lien

A

General Lien

102
Q

In the transfer or separation of the title to real estate from one party to another

A

Alienation

103
Q

Competent Grantor, Signature of the Grantor, Identification of the Parties, Deliver to Acceptance by Grantee, Legal Description of the Property, Consideration, Words of Conveyance

A

Essential Elements of a Deed

104
Q

Provides the greatest protection for a grantee and creates the greatest liability for the grantor

A

General Warranty Deed

105
Q

Limits the warranty against encumbrances to only those defects arising from actions by through or under the grantor

A

Special Warranty Deed

106
Q

Conveys title without any warranties or covenants

A

Bargain and Sale Deed

107
Q

Releases any claims of the grantor to rights in the property

A

Quitclaim Deed

108
Q

A person who dies with a will

A

Testate

109
Q

A person who dies without a will

A

Intestate

110
Q

An encumbrance, charge, or claim against the property which could make it legally impossible for the owner to convey marketable title

A

Cloud on the title

111
Q

Requires that contracts involving transfers of interest in real estate be in writing and signed to be enforceable 12 months or less

A

Statue of Frauds

112
Q

The act or process of estimating or creating an opinion of value

A

Valuation

113
Q

Determined by buyers and sellers

A

Market Value

114
Q

Is the actual sold price

A

Market Price

115
Q

Holds that the value of over improved property will suffer if it is in an area of lesser valued homes

A

Regression

116
Q

Holds that the value of smaller property will increase if it is in an area of bigger homes

A

Progession

117
Q

Is the use that will create the greatest return on investment and is not necessarily the current use

A

Highest and Best Use

118
Q

Gives an estimate or opinion of value in the completed appraisal report

A

Appraiser

119
Q

Is an agreement between competent parties based upon legal consideration creating legally enforceable duties and obligations and granting the exclusive right to buy, sell, lease, property at a given price within a stated period of time

A

Option

120
Q

The property owner who gives the option

A

Optionor

121
Q

The purchaser on tenant who receives the option

A

Optionee

122
Q

Performed by specified dates

A

Time is of the essence

123
Q

Requires a real estate appraisal to be used with any federally related loan transaction

A

Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989

124
Q

Is an opinion of value based on the principles of value; requires the completion of a highest and best use analysis

A

Appraisal

125
Q

Is the primary form used by appraisers for residential properties

A

Uniform Residential Appraisal Report (URAR)

126
Q

Approach for residential properties

A

Sales Comparison

127
Q

Approach for churches and libraries

Replacement Cost - Depreciation + Value of Land = Estimated Value

A

Cost Approach

128
Q

Approach for p=any property that generates income such as office buildings, shopping centers, apartment buildings

Value - I/R=V
Rate - I/V=R
Income - RxV=I

A

Income Approach

129
Q

Is the wear and tear or breaking down of the physical structure which takes place over time

A

Physical Deterioration

130
Q

Is the loss in the usefulness of structures that causes them to become less desirable or less useful

A

Obsolescence

131
Q

Is the loss of value due to factors of inadequacy or over-adequacy within the property itself

A

Functional Obsolescence

132
Q

Is a loss in value resulting from conditions outside the property

A

External Obsolescence (Economic Obsolescence)

133
Q

Total Gross Income - Effective Gross Income - Operating Expenses = Net Operating Income

A

Net Operating Income (NOI) Formula

134
Q

Is a rate of return that converts net income to value

A

Capitalization Rate

135
Q

Sales Price/Gross Rent = Multiplier

Value = Gross Rent x GRM

A

Gross Rent Multiplier (GRM)

136
Q

Using financing to allow payment of a small amount of cash down to purchase a large property investment

A

Leverage

137
Q

Converting an assest to cash

A

Liquidity

138
Q

Is a written contract pledging real property the borrower owns or will own to secure the debt

A

Mortgage/Deed of Trust

139
Q

Allows the property to be sold without going to court

A

Power of Sale Clause

140
Q

Allows the lender to declare the entire unpaid loan balance due upon a default of any of the terms or conditions of the document

A

Acceleration Clause

141
Q

Once a loan is paid according to the terms of the note and the other covenants are fulfilled the lender will release the lien so the borrower will regain clear title and free title to the property

A

Defeasance Clause

142
Q

When a mortgage is paid off

A

Satisfaction

143
Q

Allows the borrower under state law a period of time after the foreclosure sale to buy back the property

A

Statutory Right of Redemption

144
Q

Is the amount of a loan a lender will provide based upon the property’s value

A

Loan-to-value ration (LTV) or Mortgage Rate

145
Q

Is the difference between the market value of a property and the balance of the owner’s debt against the property

Market Value Today - Total Debt Today = Equity

A

Equity

146
Q

Points charged to raise a lenders return on a loan

loan x number of points in percentage = dollars in points

A

Discount Points

147
Q

Smaller payments but the loan has the full principal payment due at the end

A

Interest-Only Loan

148
Q

Has a larger payment then the term loan which makes the final balloon payment smaller

A

Partially Amortized Loan

149
Q

Allows the borrower to know what their payment will be each month and to pay the loan in full with the last payment

A

Fully Amortized Loan

150
Q

Rate x Loan Balance = Annual Interest / 12 to get monthly interest

A

Interest Formula

151
Q

Is to ensure that applicants for consumer credit are given sufficient information and disclosures about the cost and conditions of the credit so they can easily compare credit terms offered by various lenders

A

Truth in Lending Act (TILA) administered by the Consumer Financial Protection Bureau (CFPB)

152
Q

Allows lenders to collect no more than two months of cushion in their escrow accounts to pay borrowers tax and insurance bills; prohibits kickbacks in real estate transactions

A

Real Estate Settlement Procedures Act (RESPA)

153
Q

Requires the lender to give a borrower a Loan Estimate within three days after application; must also receive a Closing Disclosure form three days prior to closing

A

TRID (TILA/RESPA Integrated Disclosures)

154
Q

Prohibits creditors from discriminating against a loan applicant based on race, creed, color, religion, national origin, sex, martial status, age, etc

A

Equal Credit Opportunity Act

155
Q

The maximum rate of interest that may be charged for various types of loans in the state

A

Usury Laws

156
Q

Regulates the supply of money and interest rates in the US

A

Federal Reserve System

157
Q

The rate of interest stated in the loan document

A

Nominal Interest Rate

158
Q

A form of revolving credit in which a persons home serves as collateral

Appraised Value x Percentage - Less Mortgage Debt = Potential Loan or Credit Line

A

Home Equity Line of Credit (HELOC)

159
Q

Is inducing or attempting to indue, for profit, owners of housing to sell or rent by representing that persons of a certain race, color etc are or may be entering into the neighborhood

A

Blockbusting

160
Q

Is restricting or attempting to restrict the choices of a person

A

Steering

161
Q

Occurs when a lender refuses to make or provide information on a loans

A

Redlining

162
Q

sales price paid x percentage of commission = commission

Commission Split = Subtract by 100%

A

Commission Formula

163
Q

sales price x percentage to seller = net dollars to seller

Percentage to the seller is 100% minus the rate of commission

A

Estimating Net to Seller

164
Q

property value x percentage of increase = appreciated value

A

Appreciation Formula

165
Q

original value x percentage of value NOT lost = present value

Solve before proceeding with original formula:

100% divide by years = yearly depreciation rate

numbers of years divided by depreciation rate = depreciation to date

100% minus depreciation to date = value not lost

A

Depreciation Formula

166
Q

monthly payment x 12 = annual debt service

A

Annual debt service

167
Q

sales price - loan assumed / $ x rate = transfer tax

A

Transer tax

168
Q

assessed value x mill rate = annual taxes

or

(assessed value/$100) x tax rate = annual taxes

A

Property tax

Real Estate (2 decks)

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