Real Estate Flashcards
What is the Allodial System?
a legal system that allocates full property rights to individuals the allodial system is the basis for property right in the us. Example:under the allodial system an individual may obtain fee simple ownership of a parcel of real estate. The allows the individual to enjoy the full set of rights entailed in the property ownership, subject to restriction only by government powers of taxation, police power, and eminent domain.
What is Fee Simple Ownership?
The law recognizes this form of estate (ownership) in real estate as the highest form. The property owner is entitled to full enjoyment of the property, limited only by zoning laws, deed or subdivision restrictions or covenants. The duration of this ownership is not limited and can be passed along in a will to the owners heirs.
What is Vicarious Liability?
The legal principle of vicarious lability apples to hold one person liable for the actions of another when engaged in some form of joint of collective activity. I.e. guilt by association
According to Tristam’s Landing, a broker is entitled to his/her commission only when what 3 conditions are met?
- The broker produces a purchaser ready, willing, and able to buy on the terms of the owner
- The purchaser enters into a binding contract with the owner to purchase the property
- The purchaser completes the transaction by closing the title in accordance with the provisions in the contract
What is Chapter 93A?
mass consumer protection law prohibits unfair and deceptive trade practices
What 8 requirements are needed to make a valid deed?
- Must be in writing
- Must be of sound mind
- Must identify the parties
- Must identify the property (legal description)
- Must contain a granting clause (I hereby grant)
- Must state consideration ($)
- Must be signed by grantors
- Delivered to and accepted by Grantee
What 6 things must be included in a purchase and sales?
Must contain the following 6 items to be valid:
- The names of all parties to the transaction
- Description of land
- Sales price
- Amount of buyers earnest money deposit
- Date of contract
- Signatures of buyers and sellers
What is Encroachment?
when property improvement extends onto adjoining parcel of land.
What is Squatters Rights?
Massachusetts 20 years open and notoriously using the property
What are 3 types of Liens?
Specific lien - mortgage or a city tax lien
General lien - a lien on all a persons property, such as a judgement lien/ IRS lien
Mechanics lien - involuntary lien available to anyone who provides material or labor for an improvement and was not paid for the service
What are 3 types of Deeds?
General warranty deed - not used in MA. Carries grantors express or implied assurances regarding the validity of the deed
Special warranty - not used in MA, carries grantors assurances only as to the state of the title after the grantor acquired ownership
Quit claim deed - Used in MA - transfers whatever interest the grantor may own but does not warrant that the grantor actually has any interest in the described property
What are 5 types of Leases?
Gross - landlord pays all expenses (property tax, insurance, maintenance). Generally used for apartments or other residential property
Net or triple lease - tenant pays all expenses
Percentage lease - requires that the tenant pay a percentage of gross sales as rent in addition to a base rental amount specified in a lease (shopping centers)
Graduated lease - calls for a periodic stated changes in rent during the term of the lease
99 year lease - long term land lease typically used for commercial development often used by fast food chains or signature properties
What is a bi-lateral contract?
two parties exchange promise to do or refrain from something (real-estate contract )
What is a unilateral contract?
one party makes a promise and other party does not promise but can make the contract a binding agreement by taking some action (example: lost dog poster with a reward)
What is the Torrens System?
land court - registered land
When the title (deed) has been searched by land court and given a numbered certificate.
What is a timeshare?
you do not need to be licensed to sell timeshares
Multiple owners own a proportional interest in a single condo unit with an exclusive right to use for a specific period of time each year.
What is a Cooperative?
apartments owned by a corporation, holds title to entire property, responsible for taxes, each purchaser of an apartment is a stockholder and receives a stock certificate. default of monthly fees effects the entire corporation.
What is Chapter 183-A (Condo’s)?
6-d certificate - insures that all condo fees are paid up to date
Super Lien bill- priority lien and takes precedence over the actual mortgage lien. (If you haven’t paid your condo fees the association will foreclose on the unit and then owns the unit and can resale it)
What is a feasibility Study?
every 5-10 years to calculate condo fees and reserve money
What is an open listing?
an agreement that a commission will be paid to the listing broker only if that are the procuring cause of the sale. A seller may enter into an open listing with an unlimited amount of borrowers.
What is an exclusive agency listing?
means that only one listing broker represents the seller. If the property sells through the efforts of the broker or through cooperation with MLS, the listing broker receives a commission. However the seller retains the right to sell the property on their own.
What is an exclusive right to sell listing?
provides the greatest protection to the listing broker, who will be paid a commission no matter who sells the property.
What is a Net listing?
offers the property owner a guaranteed sales price, with the listing broker taking any part of the purchase price over that amount. Net listings are illegal in MA.
How much is a brokers bond?
5k
