real estate Flashcards
appurtenant
runs with the land
deed of trust
secures the property as collateral (kind of insurance) for the loan
promissory note
the borrowers promise to repay the loan
easemant appurtenant
easement allowing the use of neighboring property
- automatically transfers upon the sale of the dominant/servient property
quieting a title
the legal process of resolving any claims, liens, encumbrances, defects, etc. the could cloud the property title
what is the highest level of property ownership?
fee simple absolute
if your broker sells a triangular parcel of land for $750 an acre and your commission rate is 8%, what will be your commission if the land has a base length of 1,200ft and a height of 700ft?
$578.51
(1/2)x 1200 (base) x 700 (height) = 420,000 sq ft
420,000/43560=9.642 acres
9.642*750=7,231.5
7231.5*8%= $578.52
recording a _____ establishes ownership rights
deed
comparative market analysis
analysis of current listings, recent sales, and expired listings
merchantable title/ marketable title
title free from clouds/defects
which appraisal principle states that two similar businesses attract more customers when within close proximity than they would separately?
competition
if a landlord receives a months rent at the beginning of the month and sells the property 10 days later, how should the rent be disbursed at settlement?
rent is divided based on the number of days owned by the seller and the buyer
patrol evidence rule
any verbal agreements/discussions made prior to written contract are invalidated and cannot be considered
what is the formula used to determine value through the income approach?
Value = Gross Rent Multiplier x monthly rent
- provides estimate of properties worth based on its income potential
Truth in Lending Act
law that requires lenders to provide consumers with costs and terms of their loans on advertisements.
- does NOT apply to property owners
at what point does the legal title transfer from seller to buyer?
closing/settlement
the civil rights act of 1866
prohibits racial discrimination in the sale/lease of residential/commercial property
executory contract
contract between 2 parties that involves ongoing obligations to be fulfilled over time but is binding
servitude
a right by which land owned by one person is subject to a specific use/enjoyment by another person.
- this is binding to all later owners of the property
T/F: oral leases are enforceable
False: leases generally require written documentation to be legally binding
acceleration clause
when the lender calls for the note to be paid in full in one lump sum immediately when a borrower falls behind in payments
on a 90’x90’ lot with building setbacks of 30’ front, 10’ from the sides and 20’ from the rear, what is the net building area in square feet?
2800 sq ft
subtract setbacks from dimensions (90-30-20=40)(90-(210))= 40
40*70=2,800 sq ft
how do you determine property taxes for a property?
multiply assessed value by tax rate set by local gov
negative amortization
in a lease purchase agreement, what is the buyer required to do?
buy the property at the end of the lease
what is a lease option?
give tenant the right to purchase the property at an agreed upon price either during lease term or the end of the lease term
what is a lease purchase
used when tenant wants to purchase property but can’t do so yet
when a party passes away before the contract is fully executed, can the contract still be enforced?
yes, by the estate of the deceased party
T or F: death terminates a contract
false
