Random Flashcards
a written and signed legal instrument that is used to transfer ownership of real property from the old owner (the grantor) to the new owner (the grantee).
Deed
A section in a real estate contract that transfers ownership of a property with no restrictions. The new owner has absolute ownership of the property and has the right to sell it, bequeath it to an heir, and so on. Because the clause begins with the phrase, “To have and to hold,” the ______ ________ is sometimes called the “to have and to hold clause.”
Habendum Clause > “To have and to hold clause”
A section in a real estate contract that transfers ownership of a property with no restrictions. The new owner has absolute ownership of the property and has the right to sell it, bequeath it to an heir, and so on. Because the clause begins with the phrase, “To have and to hold,” the _________ ________ is sometimes called the “to have and to hold clause.”
Habendum Clause > “To have and to hold clause”
Words in a deed of conveyance that state the grantor’s intention to convey the property at the present time. This clause is generally worded as “convey and warrant,” “grant,” “grant, bargain, and sell.”
Granting Clause
List a few examples of encumbrances.
Examples include: easements, encroachments, restrictive covenants, leases, liens, mineral and timber rights
A special, written contract for conveying a permanent interest in real property.
Deed
A deed must be _______ to be upheld by court?
in writing
legally binding promises
Covenants
Deeds differ by number of _________?
Covenants
The highest quality deed has the most ________?
Covenants
This type of deed includes no covenants and makes no assertions about grantor’s interest
Quitclaim deed
This type of covenant of a deed will defend grantee against claims of others
Quiet enjoyment
A deed is a special form of written contract used to convey a permanent interest in real property. Unlike most contracts, a deed requires?
Only the grantor to be legally competent and of legal majority age.
Oldest form of acceptable land description and the most flexible
Metes and Bounds
Voluntary conveyances without a deed include _______only
Easements
Most often used in the description of urban property, which of the following methods of land description contains information regarding the location of various easements and may even contain a list of restrictive covenants?
Subdivision plat lot and block number
The most flexible method of land description, capable of describing even the most irregular of parcels, can be described as a very precise, compass-directed walk around the boundary of a parcel. This method is commonly referred to as:
Metes and Bounds
One of the most important requirements of a land description is for it to be unambiguous. Which of the following methods of property description is the most unambiguous and is appropriate for use in legal documents?
Metes and Bounds
When a landowner subdivides land in a way that causes a parcel to be landlocked, it is possible for property to be voluntarily conveyed without a deed. If the landlocked parcel has no prior path of access, which of the following types of easements will automatically be created to make the land useful?
Easement of necessitiy
Considered a “questionable conveyance of title” by most courts, which of the following types of deeds is worded to imply no claim of title, but rather only convey what interest the grantor actually has? (Hint: This type of deed may be used by a developer to convey certain lands of a subdivision to the local government
Quitclaim Deed
Although deeds can only deliver what a grantor actually owns, they can still vary in “quality.” Which of the following types of deeds is considered to be the “highest quality” because it contains the full set of legal promises the grantor can make?
General Warrant Deed
Which of the following clauses contained in a deed defines or limits the type of interest being conveyed?
Habendum Clause
The type of deed offered by the grantor is communicated through a phrase such as “does herby grant, bargain, sell and convey unto . . .” This clause is referred to as the:
Words of Covenance
A deed is a special form of written contract used to convey a permanent interest in real property. Unlike most contracts, a deed requires:
only the grantor to be legally competent and of legal majority age.
An appraiser is hired to estimate the value of a parcel of vacant land. Which of the following is the most logical thing for the appraiser to determine first?
The highest and best use of land
What type of listing does an owner agree to that allows the listing broker to sell his/her property; pays the listing broker should a different broker sell it; and does not allow the seller the right to sell the property him/herself without paying a fee?
Exclusive right to sell
A listing which allows the owner to sell the property himself without being liable for a commission, but which appoints only one broker to act as his sole agent is a(n)
Exclusive agency listing
The duty of ___________ means that an agent must follow all of the lawful instructions of
the client.
Obedience
Sam listed his property with three different real estate brokers. In each agreement he reserved
the right to sell the property himself without paying a commission. The type of listing that
Sam signed with each broker was an:
Open listing
Commision rates are set by
broker and agent
A broker hears that his neighbor’s house is for sale, and convinces a prospective buyer to make a written offer to buy. The broker then contacts the owner who agrees to receive the offer. At this point in time
Not entitles to commission
Legal relationship created when one person known as the principal expressly authorizes the other person the agent to act on their behalf
Agency
Allows the broker to act on their behalf in a specific transaction such as the sale of a home.
Special Agency
A property owner agrees to pay a broker a
commission, provided the owner receives a
minimum amount of proceeds from the sale at
closing. This is an example of a(n)
Net listing
An owner agrees to pay a broker for procuring a
tenant unless it is the owner who finds the tenant.
This is an example of a(n)
Exclusive agency agreement
The type of listing that assures a broker of
compensation for procuring a customer, regardless
of the procuring party, is a(n)
Exclusive right to sell
One agent (broker) is hired; broker receives a commission only if he or she is the procuring cause; seller retains right to sell without obligation to pay commission
Exclusive-Agency Listing Agreement
Broker has the right to purchase the property; broker must be very honest to avoid charges of fraud
Option Listing
Multiple agents; Only the selling agent (broker) entitled to commission; seller retains right to sell independently without obligation to pay anyone a commission
Open Listing
Broker entitled to any amount above the seller’s stated net; often illegal; potential conflict of interest between broker’s interest and seller’s interest
Net Listing
A federal statute that prohibits discrimination based on disabilities and requires reasonable accommodation by employers and land owners
American with Disabilities Act of 1990 (ADA)
Prohibits discrimination in housing based on race, color, religion, sex and national origin
1968 Fair Housing Act Title VII of the Civil Right Act of 1968
The practice of showing different properties to people of different races or ethnic backgrounds in an attempt to “steer” them to neighborhoods of like composition.
Steering
The attempt to promote sales in a racially transitional neighborhood by encouraging the idea that the transition is harmful.
Blockbusting
Licensed real estate brokers or salespersons who are members of the NAR.
Realtors
A contract between a seller of real estate and a real estate broker in which the broker is authorized to serve as the seller’s agent
Listing Agreement
Have been a real estate salesperson for 2 years and must have completed a specified number of real estate classes
Broker Requirements
Salespersons Requirements
Must be supervised by a licensed broker and pass a special examination
An agent authorized under state real estate licensing laws to operate independently in a real estate brokerage business.
Real Estate Broker
- Agent is an expert in the specialized field
2. Agent always acts in the principal or client’s best interest.
Duties of the Broker
Do not have a real estate agent representing them on the sale of a property.
FSBO For sale by owner
A deed to convey property would be SIGNED by
the grantor
Purpose is to serve as a contract of employment between the owner and the broker
The primary purpose of a listing agreement
When a listing on a residential property is signed, which type of agency relationship is usually created?
special agency
Five acres of land were zoned residential that were surrounded by other properties that were also residential. The owner wanted to re-zone the 5 acres so that a commercial building could be built. Which of the following would have to be obtained to allow for the change?
Spot zoning
In some cases a broker’s commission can be earned if he can prove he set in motion a series of events which resulted in the sale of a property. If a broker produces a ready, willing and able buyer he would most likely
Be considered procurring the cause of sale
The amount of a broker’s commission usually is established by?
An agreement between the broker and the seller or the buyer.
An agent was showing a property to a prospective buyer. The buyer sees a “FSBO” sign, and requests to see the property. What should the agent do next?
Obtain written permission from the seller and then show the home
Blockbusting is best described as an attempt
to panic a neighborhood into thinking property values will decline due to unwanted person(s) moving in.
If a person believes that he or she is a victim of illegal discrimination in housing, he or she should
HUD within 1 year
Buildings that were erected before the enactment of a zoning ordinance and do not comply with the zoning limitations are called
nonconforming uses
Establishes code of ethics for realtors
National Association of Realtors (NAR)
Is FSBO beneficial to the owner?
no because realtors do not want to sell and it realtors have more exposure and know more people.
How do you list a FSBO?
Obtain sales contract from online or from a lawer.
Typical Commission for:
Residential homes ___ %
New Construction ___ %
Commercial or Land ___%
Residential homes 6-7%
New Construction 5% - more volume, more demand
Commercial or Land 10% - less demand, land is speculativee
Follow rules that seller/buyer sets
Obedience
Must be accountable for money that is a part of the real estate deal
Accountablilty
Money put in place to lock in deal, so seller knows that the buyer is serious
Earnst money
“let the buyer beware”
Cavet emptor
Realtors must keep the financial information of a client private
Confidientiality
Must keep client up to date on business, laws, and education
Reasonable care
A legal representation of the land’s size, location and basic physical features, such as a house’s location and dimensions.
Surveyor
Grantor must sign and sealed the deed.
Testimony clause
A list of successive owners of a parcel of land, beginning from the government, or original owner, to the person who currently owns the land.
Chain of title
is the process of retrieving documents evidencing events in the history of a piece of real property, to determine relevant interests in and regulations concerning that property.
Title search
A brief history of the titles for a piece of land; lists all of the legal actions that have been performed or used in conjunction with a piece of property. This is used to determine whether or not there is any kind of claim against a property.
Title abstract
The grantor (seller) guarantees ownership and can convey the rights of ownership to the grantee (buyer).
Seizin
The grantee will not be bothered by subsequent claims of ownership by others with a superior title.
Quiet enjoyment
The grantor assures they are doing everything possible to provide the grantee title and will provide further documents if there are problems or mistakes discovered at a later date.
Further Assurance and Assistance
No additional encumbrances exist other than the ones that are known and stated
Against encumbrances
Any legal document that transfers title.
conveyance
proof of ownership.
Title
Protects the owner from any defects found with the title.
●This is a one time fee paid at closing of the sale.
●It is nontransferable.
Title Insurance
Consideration for the interest in the property must be shown, but can retain privacy regarding the exact amount paid.
Good consideration
●Actual amount
●“$1 and other good and valuable consideration”
●“The sum of $10 and love and affection”
Good consideration
A term for a survey of a piece of land to identify boundaries, easements, flood zones, roadway, and access rights of way. It is the legal description of a specific piece of real property and is required if land is to subdivided for building homes, & creating parks.
Plat
A satisfactory description of the property that cannot possibly be misunderstood.
- Lot and Block System
- Metes and Bounds System
- Governmental Survey System
Legal description of a deed
