Practice Quiz Flashcards
- What are the unities of joint tenancies?
There are four unities “PITT”
1 - Unity of time - acquire at same time
2 - Unity of title - all joints tenants must acquire their interests by the same deed
3 - Unity of interest - tenants hold equal ownership interests
4 - Unity of possession - all joint tenants hold undivided possession of the property
- How does joint tenancy work when a will is involved?
The main feature of a joint tenancy is that it carries the right of survivorship automatically. Cannot be willed. The remaining tenants receive the share owned by the deceased tenant.
- How can joint tenancy become tenancy in severalty?
If one or more of the joint tenants dies and only one remains the remaining joint tenant would hold the title in severalty.
- What is the priority of liens?
The priority of a lien determines the order in which debts will be paid off. Real estate taxes and special assessments take priority over all other liens. All other liens are paid in order of priority normally determined by the the date of recording in public records of the county where the property is located.
- What is the process if a person dies Testate?
A person who dies Testate has prepared a will indicating the way to dispose of his or her property after death. Legally when a person dies, title to his or her real estate immediately passes either to their heirs by decent or to the persons named in the will. However the will must be probated and all claims against the estate must be satisfied.
- What are the freehold estates?
Fee simple - highest form of interest entitled to all rights in property. No time limit runs forever and upon death estate passes to heirs.
Fee determinable (conditional, or defeasible) - terminates upon occurrence of or nonoccurence of a specified event, future interest is called a possibility of a reverter.
Life estate - limited to the life of a specific person. Does not have right to pass along to heirs. Ends with death. Reversionary interest goes back to owner or grantor. Remainderman - goes to someone else. Pur autre vie- on the life of another. Has true ownership
- Which leasehold estate is not a legal object.
Tenancy in sufferance.
- What encumbrance is a product of a court decree?
Judgements. a judgement becomes a general involuntary lien on real property owned by a debtor when it is docketed with the county clerk.
- What are examples of involuntary alienation?
Involuntary alienation includes: Intestate( escheat), land needed for public use ( Eminent domain through condemnation suit), Non-payment of debt (Foreclosure), Open,notorious, continuous, hostile and adverse use ( adverse possession).
- Without owners consent. Transfers carried out by operation of law ranging from condemnation of land for public use to sale of property to satisfy tax lien or mortgage lien.
- Person dies intestate. Taken over by escheat.
- Power of eminent domain - when private property is taken - owner is given an opportunity to challenge money offered.
- Transferred to satisfy owners’ debts - debts that can be foreclosed are mortgage loans, real estate taxes, construction liens and general judgements against the property owner.
- Partition proceed - one co-owner seeks to force another to divide property
- What ways bridge the gap in the chain of title?
A quitclaim deed is commonly used to bridge the gap in the chain of title.
- Define devise
Devise is the gift of real property by will. the act of leaving real property by will.
- What is a rem proceeding?
If the municipalty forecloses on a tax sale certificate, it is through judicial foreclosure before a court known as a rem proceeding.
- Define a special assessment.
a tax or levy customarily imposed against only those specific parcels of real estate that benefit from public improvements like a street or a sewer.
- Know the difference between a usage encumbrance and a lien.
Liens are financial claims against the property. Physical or usage encumbrances, which include restrictions, easements,licenses and encroachments.
- Define lien?
A lien is a financial claim against property that provides security for a debt or obligation of the property to the owner. If the obligation is not repaid,the lien holder, or creditor, has the right to have it paid out of the property usually from the proceeds of a court sale.
- What are the characteristics of a limited partnership?
Limited partnerships include a general partner and limited partners. Run by general partner or partners.The limited partners are only have liability up to their initial investment.
- What types of buildings would use the cost approach?
The types of buildings would be special purpose buildings like schools,churches and public buildings.
- What is the principle of a cap rate?
It assumes the value of the property is based on its net income. It takes the capitalization rates of similar properties to the relationship of net income. IRV formula includes Net income/capitalization rate equals value.
- What are the three approaches to value and their alternate names?
- Sales comparison approach (Market data approach)
Gross rent multiplier if rented (GRM) Sales price/rental income. - Cost approach uses reproduction cost, replacement cost and deductions. Physical - normal wear and tear or. Functional obsolescence and external obsolescence.
- Income approach
- What is the principle of the math formula IRV
Income/rate = value
- What are the steps to the cost approach
- Estimate the value of the land as if it were vacant
- Estimate the current cost of constructing the building and improvements.
- Estimate the amount of the accrued depreciation resulting from physical deterioration, functional obsolescence and or external obsolescence.
- Deduct accrued depreciation from the estimated construction costs of new buildings and site improvements.
- Add estimated land value to the depreciated cost of the buildings and site improvements to arrive at the total value of the property.
- What is the definition of consideration?
That received by the grantor in exchange for the deed. Something of value that induces a person to enter into a contract. Consideration may be valuable (e.g. money), or good (love and affection).
- What type of agent is found in a standard real estate transaction?
Special agent.
- What is the process for present or transmitting offers?
All written offers must be forwarded to sellers within 24 hours.