Nationally Accepted General Principles and Practices Flashcards
How is an item permanently attached to the land called?
An item permanently attached to the land/property, such as a fence, is included in the definition of real property.
What are three slightly different descriptions of property?
There are three slightly different descriptions of property.
1) Unimproved dirt and plants, called LAND;
2) Land plus improvements such as fences and buildings called REAL ESTATE;
3) Real estate that includes non-physical interests, such as easements and restrictions, called REAL PROPERTY.
What is a rectangular survey composed of?
A rectangular survey is composed of Townships.
What are townships and sections?
Townships are square tracts of land sixmiles on each side. A township then is divided into 36 Sections which are square tracts of land one mile on a side. One mile is 5,280 square feet. So - 5,280 x 5,280 = 27,878,400 square feet. An acre is 43,560 square feet soone Sectionhas (27,878,400 / 43,560 = 640) acres.
What is a Metes and Bounds Survey?
A metes and Bounds survey basically describes the perimeter of a tract of land. Its legal description contains angles and distances. It begins at a reference point, moves to a Point of Beginning (POB); traverses the perimeter of the property and returns to the POB.
What is Eminent Domain?
Eminent Domain is the power of the government to acquire privately owned property for use by the public, after paying a fair price. The owner of the property may object to having his land taken but in the end the government does NOT have to have the owner’s permission to condemn (take) the property.
How can Eminent Domain be used?
A public entity can employ Eminent Domain to acquire private property FOR PUBLIC USE, not to then sell to another private owner for private use. But PUBLICLY OWNED property that has been acquired through Eminent Domain can be LEASED to a private entity for a use that the public will have access to, and the right to enjoyment such as a sports complex or entertainment center.
What is Ownership in Severalty?
Ownership in SEVERALTY can be described as ownership of a single property by a single person or entity.
What rights does an owner of a property in FEE SIMPLE have?
When a person owns property in FEE SIMPLE, they have the right of exclusive occupancy (keep everyone else off); the right of enjoyment without interference; and the right to waste, destroy or sell the property. A fee simple owner does have the right to grant an easement to someone to cross the property or use the property. A fee simple owner CANNOT condemn his own property.
What is Right of Survivorship?
Joint Tenants have what is called a Right of Survivorship. If a Joint Tenant dies the surviving Joint Tenants automatically acquire the deceased interest per stirpes. Each receives a prorata share of the deceased property.
What is a beneficiary trust? Who manages the trust?
A beneficiary trust is an arrangement where a Trustor’s asset is transferred, to benefit someone over time. A Trustee is charged with managing the Trust.
What is a living trust?
A living trust is set up while the person establishing the trust (the Trustor) is alive.
What is a testamentary trust?
A testamentary trust is one that is set up and becomes effective only after the Trustor has died.
What is a license?
A license is a simply revocable permission for the temporary private use of someone’s property. A ticket to a sporting event being held on private property would be a license.
Are are the two types of liens? And what are some examples?
There are both voluntary and involuntary liens. Property taxes are involuntary. A judgment lien is involuntary. A mechanic’s lien is involuntary. A mortgage is a voluntary lien.
What is a constructive notice?
The purpose of the recorded records at the court house is to provide notice to all members of the community. This availability is called “Constructive Notice.” So, when a deed is recorded, the purpose is to protect the owner’s rights but also to provide notice to any buyer regarding any liens or attachments provided regarding the condition of the title of the property they are buying.
What is the primary purpose of a deed?
The primary purpose of a deed is to transfer title from a seller to a buyer.
What is a General Warranty Deed?
The seller who believes he is transferring “marketable” title without any problems will sign and deliver a General Warranty Deed.
What is a special or limited warranty deed?
A seller who only wants to warrant no problems during the period of time he owned the property will provide a Special or Limited Warranty Deed.
What is a Quit Claim Deed?
A seller who does not want to guarantee anything will simply sign a Quit Claim Deed.
What is one mean of enforcing repayment of a lien?
The powers granted the lender in the Promissory Note and Mortgage, which are filed on record as a lien against the title, is one of the means of enforcing the lien against the property.
What is a Promissory Note?
The primary legal financing obligation in which the borrower promises to pay back a sum of money
borrowed. (A contract)
What is a Mortgage?
A legal document used to secure the performance of an obligation, in which the borrower or mortgagor agrees to pledge property to secure the debt represented by the promissory note. (A
contract).
In what order are items paid when a property is sold at an auction?
When a property is sold on the courthouse steps because the borrower failed to pay the loan, the first item to be paid is the costs of the sale, including advertising, attorney fees and trustee fees. Then any outstanding property taxes are paid. Then the liens against the property, ranked in order by filing date, until the money is exhausted. If there happens to be any money left over it will be paid to the debtor.
What is a strict foreclosure?
A strict foreclosure usually occurs only if the value of the property is less than the debt owed. The lender files suit asking a court to order the borrower to pay the mortgage debt by a certain date or the lender will automatically gain full title to the property.
What right does the U.S. Constitution’s Fifth Amendment mention? What did the Founding Fathers think about private property?
The U. S. Constitution’s Fifth Amendment mentions the right to own property. The Founding Fathers upheld the economic view of property. They believed that private property ownership, as defined under common law, pre-existed government. The state and federal governments were the mere contractual agents of the people, not sovereign lords over them. All rights, not specifically delegated to the government, remained with the people–including the common-law provisions of private property.
What is a Buffer Zone?
A means by which planners use space to separate two adjoining districts which have incompatible uses. A buffer zone consists of uses which are compatible with uses in each adjoining district.
What is zoning?
A police power device which allows for legislative division of space into districts and imposition of regulation prescribing use and intensity of use to which land within each designated district may be put.
What is a Certificate of Occupancy?
In order to qualify as a living space, a newly constructed home must be inspected by the local municipality’s building inspector to make sure it was constructed in accordance with the local building codes. If it passes inspection the property will be issued a Certificate of Occupancy.
What is a Spot Assessment? Is it allowed?
Reassessing the tax classification for a single property is called “spot assessment” and is NOT allowed unless a material use of the property is changed.
What type of properties are exempt from real estate and other property taxes?
Some of the properties that are exempt from real estate and other property taxes include churches, schools, and other not-for-profit organizations as well as state, county and city owned buildings, such as the Department of Transportation building.
What happens if a property owner does not pay the taxes for a property by the date set for being “delinquent”?
The property can be sold at auction to collect the taxes. In that case the winning bid gets a tax deed, but not possession of the property, until a period of time has elapsed, allowing time for the original owner to redeem the property by paying taxes and interest on the amount owed. If the taxes are not paid by the delinquent owner within the allowed redemption period, the person holding the tax deed becomes the owner.
What happens if a seller decides to back out of a deal after the agent has already found a buyer?
When a licensee has a listing to market a property and has produced a ready, willing and able buyer who has agreed to pay what the seller has asked, and the seller decides to back out of the deal, the agent’s brokerage has still earned and is due the agreed-upon commission
Can the rights to an option contract be sold?
Yes. But while the rights to an option contract can usually be sold by the optionee to someone else before exercising the option, the optionee cannot use the property before executing (closing) the contract.
What happens when a change is made to an offer?
Offers must be accepted without a change in order to be a contract between an offeror and an offeree. When any change is made to an offer, the offer is extinguished, becomes null and void and is no longer binding on the original offeror. The document, as altered, becomes a new offer or counter offer, perhaps with handwritten changes initialed by the offeree (who now becomes the offeror of the new offer). If the original offeror (now the offeree) accepts the changes by initialing them, the document, with approved changes, becomes a new offer.
What are Aleatory Contracts?
Aleatory contracts are agreements, commonly used in insurance policies in which the parties involved do not have to perform a particular action until a specified “chance event” occurs. Events covered are those which cannot be controlled by either party, such as natural disasters, like floods or hurricanes, and/or death.
What are the requirements for a contract to be considered valid?
A contract requires a willing buyer and a willing seller, each of age, sane, under no pressure and unrelated. They both have to understand the terms of the contract the same way. There has to be good and/or valuable consideration. If there are contingencies (Title search, survey, physical inspections, and financing availability) that are not fulfilled, the contract is subject to possible rescission by either party. In that case the contract will be declared NULL and VOID.
A contractor planning to build a new apartment complex, needs to be sure that the architect drawing the plans has consulted the _______________ (ADA) to include the latest rulings and avoid any potential _______.
Americans with Disabilities Act, fines.
The type of construction most used in the construction of residential homes is the…
platform-frame method.
When a licensee has a listing for a particular property with instructions to market that property for sale or lease, the licensee is a ____________ .
When a licensee has the authority to manage, lease or sell any of a client’s real estate properties, the licensee is a ____________.
But when a licensee has a power of attorney that allows him to make decision for another individual as if he were in fact that individual, the licensee is a ___________.
Specific agent.
General agent.
Universal agent.
What does ACOLD stand for?
“ACOLD” represents the licensees’s duties to the principal stated by the brokerage services agreement he/she signed. This means he/she has to be:
- ACCOUNTABLE for any property (money, real estate) of the client in which the agent controls;
- Act with CARE AND DILIGENCE;
- Be OBEDIENT to the clients’ lawful instructions;
- Be LOYAL to the client’s interests above those of anyone else;
- DISCLOSE or give notice of all information that will help the client while keeping confidential all information that might harm a client.
A licensee who has not signed a brokerage services agreement has to be fair and honest with all parties.
A good agent communicates _____ with listing clients about activity and inquiries regarding the client’s property. When there has been no interest for a week, the client _____________.
weekly, needs to know that as well.
What is an active or intentional fraud when dealing with lenders?
Because lender’s work with ratios related to income and they agree upon sales prices, a major form of fraud is reporting an incorrect price to a lender. For instance, if there are repairs to be made and the seller doesn’t have the money, a buyer and a seller will sometimes agree to report a higher sales price to the lender, so the lender will loan more money to the buyer to give to the seller at closing. Then after the closing the seller will give the buyer the extra money to make the repairs. This is called intentional fraud.
What is a subagent?
A subagent is an “agent of an agent.” When a listing agreement is signed a seller does have the right to reject the use of a sub-agent by the agent who is obtaining the listing from the seller.
All licensees who are entering into an agency relationship should provide a ____________ at the first substantive contact with a potential client, stating what ______________ (if any) the licensee has with either the property, the buyers, the sellers, or any other situation which might affect the agent’s ability to be unbiased when providing service.
written disclosure, personal interests.
Ever since the late 1990’s there has existed a common formal agency relationship between licensee’s and buyers and between licensees and Tenants. The licensee representing the seller is usually called the “__________” and the licensee representing a buyer (or a tenant) is usually called the “___________”
listing agent, selling agent.
What is an Exclusive Right to Sell Listing?
What is an Exclusive Agency?
What is an Open Listing?
An Exclusive Right to Sell Listing means only one agent can market the property.
Exclusive Agency means one agent can market the property, but the owner can sell, too.
Open Listing means multiple agents and the owner can market the property.
What happens to listing contracts obtained before a licensee transfers from a managing broker to a new one?
When a licensee transfers from a managing broker to a new managing broker the listing contracts that the licensee had obtained while at the former brokerage stay at the former brokerage, unless transferred in writing to the new brokerage, with permission of both the former broker and the new broker.
What does Joint Tenancy mean?
What happens if a joint tenant dies?
Joint Tenancy means that the Joint Tenants have PITT:
- Have an undivided POSSESSORY INTEREST;
- Have acquired the property at the same TIME (in the same deed) and with the same TITLE.
If a Joint Tenant dies the remaining owners automatically receive an equal portion of the decedent’s share (Right of Survivorship). Depending on what agreement exists between joint tenants, a joint tenant has the right to sell his undivided interest in a property. When sold, however, the buyer will be a Tenant in Common with the remaining owners who will still be Joint Tenants.
Who is not required to have a real estate license in order to have legal authority to sign a contract to sell property that is owned by the estate?
Owners, trustees and executors of an estate are not required to have a real estate license.
When there is a written lease that is for a definite period of time, the tenant is said to have an __________.
But when a property owner and a tenant enter into an agreement where there is no minimum or maximum term stated, and the tenant can leave whenever he wants to or the owner can cancel the agreement whenever he wants to it is a __________ or an __________.
- Estate for Years.
- Tenancy at Will or Estate at Will
What is AIDA?
AIDA is an acronym used in Marketing and Advertising to describe a common sequence of events. The events follow the orderAttention,Interest,Desire,and Action. Moving from action-to-action, one loses some percentage of prospective customers.
Are most licensees employed or independent contractors, and how does it work with taxes and benefits?
Most licensees are independent contractors which means they are self-employed, working under a contract as agents for a real estate brokerage, with a managing broker who is responsible for the brokerage agents. No income tax is deducted, no workman’s compensation insurance is provided. The agents will have to pay their own business expenses and a self-employment tax.
A property that is valued so much above the typical market price (such as a multi-million-dollar home) may require ________________ in media that reaches beyond the local market, such as ________ or _________ in major markets to broaden the size of the area for prospective purchasers.
special advertising, magazines or TV media
It seems obvious but one of the ways suggested to make a home more attractive to potential buyers would be to _____ all drapes/curtains and let the light of day in before the open house begins.
An agent is not helped by telling the neighbors to stay away; showing a home that looks too “______” or one where pets are roaming around inside. If a home is vacant it is very helpful to have it “______ with rental furniture.”
open, lived in, staged.
Is Earnest Money required to make a contract legal?
No, earnest money is NOT required in order to have a valid contract. Earnest money is traditionally offered by a buyer to induce (or convince) the seller that the buyer is serious (in earnest) about wanting to buy the property.
Can trust accounts be interest-bearing?
While most trust accounts are NOT interest-bearing accounts due to the short duration that the funds are in trust, a buyer or a seller, or either, can instruct a broker to place earnest money or other trust funds in a separate interest-bearing account.
The history begins withThe Civil Rights Act of _____- the basic law affecting discrimination by _____ in the use or occupancy of any kind of real estate, including land,commercial and residential.
Then, conversely, the Supreme Court caseknown as Plessy V. Ferguson,which, in 1896 established the ruling that “separate but equal” was okay, and it wasn’t repealed for sixty yearsuntilpassage of TheCivil Rights Act of 1964. ThenTitle VIII of the Civil Rights Act of _____(called _________ or FHA) was passed, which prohibited discrimination in the sale, rental and financing of dwellings based on _____, _____, _______, or _______ _____.
In_____, Congress passed the ________ _________ ___ to include prohibition of housing discrimination based on the ____ of an individual. The Fair Housing Act (Title VIII) was then amended in ____ (effective March 12, 1989) by the Fair Housing Amendments Act, whichexpanded the coverage to prohibitdiscrimination based on ________or on_______ ______ (presence of children under age of 18, and pregnant women).While Federal laws recognize the seven basic categories, some states have added other categories, such as ______ _________ and ___________ (age) to their individual state Fair Housing Laws.
- 1866.
- Race.
- 1968.
- Fair Housing Act.
- Race, Color, Religion or National Origin.
- 1974.
- Community Development Act.
- Sex (gender)
- 1988.
- Disability, Familiar Status.
- Sexual Orientation, Elderliness (Age)
A lender that restricts the number of loans in certain areas of a community because of its racial or ethnic make-up, or the lender’s poor collection record in the neighborhood is referred to as…
Redlining
How are buildings classified?
Buildings are classified according to the age, amenities, and current condition. An office building that is relatively new, at the center of town, with up-to-date materials, a concierge in the lobby and perhaps a small restaurant might be classified as Class A building. A building that is old, in a poor location, and poorly maintained would be classified as a CLASS D Building.
What is a property manager’s primary responsibility?
A property manager with a written management agreement is and agent and as an agent he has to work in his client’s best interest. This will of course mean protecting the property, maintenance and repair, collecting rents, etc. But the primary management responsibility is to generate as much investment profit as possible.
A building that has retail on the ground floor, offices on the next ten floors and condos on the next ten floors and a restaurant at the top is a…
Mixed-use Development.
The typical home loan is secured by a ________ or a ____ __ ____.
mortgage or a deed of trust.
What is PITI?
Principal, Interest, Taxes and Insurance.
The repayment of an amortizing home loan is “amortized” over a period of time with payments that include both…
Principal and Simple Interest.
If the Loan-to value (LTV) ratio is greater than 80% the lender, for its own security may insist the payment contain an ______ payment which will accrue at the lender’s office to pay the annual Taxes and Insurance. That is why an amortizing home loan payment is often referred to as containing _____. But there are other payments that are not included in the PITI payment, such as the monthly _____ ____.
escrow, PITI, utility bills.
What happens to a property subject to special tax assessments that is sold at a foreclosure sale?
If a property is subject to special tax assessments it is being additionally taxed because it is receiving some special benefit. If it happens to be sold at a foreclosure sale, after payment of (1) the costs of the sale, including the advertising, the attorney fees, and any trustee fees (2) any owed special assessments are collected, then regular unpaid property taxes and then the next lien in priority.
If a loan is arranged where the loan is to be paid off completely over a set number of years and each monthly payment contains the amount interest due for the previous month and a portion of the principal balance the loan is said to be an __________ _____.
The Latin word “Amort” means to kill and the objective is to “kill the debt”, a little each month. But if the payments don’t completely eliminate the debt and NW the payment contains only interest and none of the principal is due until the end of the term as a balloon payment, the loan is called a ______ _____.
amortizing loan, straight loan.
Which organizations warehouse loans for the lending industry?
FNMA (Fannie Mae), GNMA (Ginnie Mae) and FHLMC (Freddie Mac).
ROBBIE MAC does NOT warehouse loans.
When a seller transfers title to his property to a buyer under a _______ ________ _____, he is warranting that the title is good and marketable and has no defects. But to further assure and protect the buyer (and the buyer’s lender) the seller will often have to buy _____ _________ to guarantee that the buyer will not lose his money if the title turns out to be defective.
general warranty deed, title insurance
What is the last step in the appraisal process?
When an appraiser has completed all of the relevant calculations and comparisons involved in the three approaches to value, he will not average the numbers, he will consider all numerical and conditional factors available in his analysis and RECONCILE the numbers to estimate the value of the subject property.
What is Aesthetic Zoning?
Aesthetic Zoning means a zoning in which, zoning regulations such as conformity to architectural and landscaping requirements are imposed to preserve the aesthetic features or values of an area.
When is an agreement between buyer and seller referred to as an arms-lenght transaction?
When a property has been on the market for a long period of time; when the buyer and the seller are not related; when both parties have a good knowledge of the property’s condition; when neither is under undue pressure, the agreement they reach is referred to as an arms-length transaction.
What are riparian rights?
What are littoral rights?
What are the terms for water rights for owners of property whose land abuts a river, lake or ocean?
There are several terms for water rights for owners of property whose land abuts a river or a lake or ocean. If the water is large enough and deep enough for commercial boats, the property owner owns the land only to the “high water mark” of the river or lake/ocean. The government (the state) owns the bottom and the public has a right to use the water for transportation. Water rights along a river are called Riparian Rights. Water rights on a lake or ocean are called Littoral rights. If the water is just a shallow creek, each property owner owns to the middle (the thread) of the creek.
Metes and bounds survey must begin and end at…
POB (Point of Beginning)
When a property is legally described using the “lot, block and plat” method it is probably in a ________ and the plat is recorded at the __________. Only the lot’s boundaries will appear on the plat. A purchaser will want a “______ _______” that shows not only the boundaries where all the improvements are located so he can see if there are any encroachments.
subdivision, courthouse, location survey.
A tenant who has signed a lease usually has the right to exclusively occupy and use the property covered by the lease. This interest that the tenant has in the landlord’s property, which exists for a definite period of time, is called an…
Estate for Years (even though it may be only six months).
When a person owns a Co-Op Apartment, they don’t own real estate. They own _____ in a corporation that owns the property where the apartment is located. As stockholders in the corporation they own what is called a “________ ______” that entitles them to use a particular apartment in the building. If they want to sell their apartment they are selling the stock in the corporation and their lease goes to the new owners.
Stock, Proprietary Lease.
Are residential apartment or condominium managers responsible for seeking offers to purchase the property?
No, that is not one of their duties.
A couple living together who are not married but are co-owners of the residential property are most likely _____ __ ______. They can own equal or unequal portions of the property. It is possible, however, if they have _____ (____, ____, ______ and ________) they are _____ ______ with a right of __________.
Tenants in Common, TTIP (Time, Title, Interest and Possession), Joint Tenants, Survivorship.
What is interest?
Interest is the market rate fee that is charged a borrower to be able to use someone else’s money. It is usually earned (during the term of the loan) before being paid but can be paid in advance (discount points).
What is the priority of a mechanic lien?
Depending on the jurisdiction a mechanic’s lien may be treated as any other lien as far as priority date of filing is concerned, or it may receive special treatment with regard to priority. This may involve using either the date that the mechanic’s work began on the property or the date the mechanic’s work was completed.
What is an easement and how can it be terminated?
An easement is a recorded right to cross or use someone else’s property. There are several ways it can be terminated: By agreement of the parties, by abandonment for a specified period of time under state law, or by merger - which means one of the property owners buys the other’s property. The sale of one of the properties, either the encumbered property or the appurtenant (benefiting) property would NOT terminate the easement.
A person who holds a Life Estate is also referred to as a Life Tenant because the term for which he/she can control property will only exist for his or her life. What happens after the death of the life tenant?
After the death of the person who is the “measuring life” (either the life tenant or someone else under the term “pur autre vie”) of a Life Estate, the ownership will either revert to the “grantor” (of the life estate) or will be passed on to a “remainderman.”
What is Could on Title?
There are many ways that the title to a property may be considered “less than perfect.” When this happens, the title is not a “clear title” but is said to have a “cloud” on it. One way this can occur is when a relative, often a brother or sister, claims to have an interest in the property. Until the cloud is cleared away, the marketability of the title is greatly reduced because no buyer wants to pay for something that the seller may not completely own.
What is Legal Title?
What is Equitable Title?
When a home owner has received a deed transferring title which contains a full bundle of rights (Exclusive right to occupy, right to enjoy without interference and right to waste destroy or sell/lease) he is said to have Legal Title. A person who is buying property under a land contract or contract for deed and has occupancy and enjoyment rights but hasn’t received the deed yet, has Equitable Title.
What is a non-judicial foreclosure?
A non-judicial foreclosure means that the lender has a right to sell the debtor’s property without having to go through a long legal foreclosure process. This is because the lender’s trustee is holding the title to the property under a Deed of Trust, or Trust Deed, given to the trustee by the debtor to secure the debt. The loan documents contain a “Power of Sale” clause, allowing the lender to place the property on the market for sale if the borrower defaults.
When a homeowner fails to pay his home loan as promised, the loan documents and the mortgage have provisions to allow the lender to begin a ______ _________ proceeding. The decision to begin the foreclosure process is determined by the ______ after attempting to collect from the borrower. The borrower then has an ______ _____ ___ _________ by paying the debt completely before the foreclosure reaches the stage of a public sale. After the sale the debtor has a _______ ______ ___ ___________, usually for a year, to come back and redeem his ownership by paying the debt and all costs related to the sale.
judicial foreclosure, lender, equitable right of redemption, statutory right of redemption.
When entering information on a closing statement, a Debit is shown as a _____ and a Credit is shown as a ______. The sales price of a property would be a ______ to a buyer and a _____ to a seller. The remaining loan balance would be a debit to the _______.
charge, payment, debit, credit, seller.
What is the contribution principle of value?
Adding a new porch to property will also add to the property’s market value. This is an example of the Contribution principle of value.
What is a Net Listing?
Net Listings are illegal. It may occur when an owner sets a minimum amount that he wants to receive from the sale of the property and lets the broker have as commission whatever amount is received above the set minimum net proceeds.
What is a common consequence suffered by a mortgagor in a foreclosure procedure?
A common consequence suffered by a mortgagor in a foreclosure procedure is that the borrower’s credit rating is damaged for a significant period of time.
What is a trade fixture?
Items attached as a fixture when installed by a tenant in a commercial rental space, that are used for trade or business, such as a grill in a restaurant, and that can be easily removed without damage to the property, are called trade fixtures, even though they are permanently attached, can be removed.
The National Environmental Policy Act of 1969 was passed to create the _________ ________ ___ (EPA).
Environmental Protection Agency.
What is a Planning Commission and what are its member’s responsibilities?
A Planning Commission is a local government agency which determines plans for the physical growth of a community. Its members are responsible for approving developers site plans, subdivision plans, and to make sure that zoning ordinances in a community are properly enforced.
What does the county and local government need to do in order to determine how to calculate the property tax rate to provide enough revenue to cover a community’s budget?
The county and local government needs to (1) assess all properties (2) derive a taxable value by subtracting any exempted property values from the total assessed values and (3) divide community’s budget by the taxable value. The millage rate that is derived is used to multiply against the value of a property to determine that particular property’s tax owed.
Can conditions/restrictions be changed? Can covenants be changed?
When a property is restricted, and the ownership is dependent (conditioned) on a particular use as set forth in a deed, the condition will remain in effect no matter how many times the property is sold. But any covenants (promises) between the parties can be changed by agreement of the affected property owners.
