Real Estate Exam Flashcards
Void Contract
A contract that was never legal to begin with.
Voidable Contract
A contract that seems to be valid on the surface, but may be rejected by one or both parties.
Buyer Agency Agreement
A principal-agent relationship in which the sponsoring broker is the agent for the buyer. Opposite of a listing agreement.
Exclusive Buyer Agency Agreement
The broker is entitled to payment regardless of whether she locates the property.
Exclusive-Agency Buyer Agency Agreement
Brokers are only entitled to payment if they locate the property the buyer purchases.
Open Buyer Agency Agreement
Nonexclusive relationship between the buyer and broker. The buyer is obligated to compensate only the broker who locates the property the buyer purchases.
General Warranty Deed
A deed in which the grantor fully warrants good clear title. Offers the most protection of any deed, and is used in most real estate transfer. Has FIVE covenants.
Special Warranty Deed
A deed in which the grantor guarantees the title only against defects arising during the period of her ownership of the property (not against defects existing before that time).
Bargain and Sale Deed
A deed that carries no warranties against liens or other encumbrances but does imply that grantor has the right to convey title. The grantor may add warranties to the deed at his discretion
Quitclaim Deed
Grantor provides no warranties. Usually used when putting a family member on a deed.
Deed in Trust
The trustor conveys real estate to a trustee for the benefit of a beneficiary. The real estate is held by the trustee to fulfill the purpose of the trust.
Trustee’s Deed
Is used when a trustee conveys real estate held in the trust to the beneficiary.
Deed Executed Pursuant to Court Order
Result of a foreclosure or bankruptcy.
Who needs to sign a valid deed?
Grantor signature required, but not grantee.
When is title transferred?
When the deed is actually delivered to and accepted by the grantee.
In Illinois, a grantor’s spouse is expected to sign any deed of conveyance to waive homestead rights. True or False?
True
Remainder Interest
Who the property will pass to when the life estate ends. Created by the grantor.
Reversionary Interest
The creator of the life estate (grantor) may not choose to name a remainderman. If so, the grantor will recapture ownership when the life estate ends. The ownership is said to “revert to the original owner.”
Police Powers
The government’s right to impose laws, statutes, and ordinances, including zoning ordinances and building codes, to protect the public health, safety, and welfare.
How many square feet in an acre?
43,560 square feet.
National Do Not Call Registry
A list of phone numbers of consumers who do not want to be contacted by commercial telemarketers. Managed by the Federal Trade Commission (FTC). Licensees are allowed to call consumers with whom they have an established business relationship up to 18 months after the consumer’s last payment. For consumers who made inquiries, licensees are allowed to contact them for up to 3 months.
Liquidated Damages Clause
Allows the seller to keep the earnest money deposit after a breach of contract from the buyer.
Statute of Limitations
Oral Contracts: 5 years
Written Contracts: 10 years
Amendment
A change to an existing contract.
Addendum
Any provision added to an existing contract without altering the content of the original.
Land Contract
The seller retains legal title, and the buyer takes possession and gets equitable title. Also called a Purchase Money Mortgage.
Civil Rights Act of 1866
Race/Color
Fair Housing Act of 1968
Race, Color, Religion, National Origin
Housing and Community Act of 1974
Race, Color, Religion, National Origin, Sex.
Fair Housing Amendments Act of 1988
Race, Color, Religion, National Origin, Sex, Disability, and Familial Status
Illinois Human Rights Act
Race, Color, Religion, National Origin, Sex, Disability, and Familial Status, Age and Marital Status.
General Lien
Affects all the property, both real and personal, of a debtor. Includes judgements, estate and inheritance taxes, decedent’s debts, corporate franchise taxes, and IRS taxes.
Specific Lien
Secured by specific property and affect only that particular property. Includes mechanics liens, mortgage liens, real estate tax liens, and special assessment/utility liens.
Subordination Agreements
Written agreements between lienholders to change the priority of mortgage, judgment, and other liens.
Conditional Use Permit
Written governmental permission allowing a use inconsistent with zoning but necessary for the common good, such as locating an emergency medical facility in a predominantly residential area.
Variance
Permission obtained from zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws; an exception from the zoning ordinances.
Nonconforming Use
A use of property that is permitted to continue after a zoning ordinance prohibiting it has been established for the area.
Tenancy in Common
Each tenant holds an undivided fractional interest in the property.
Joint Tenancy
Ownership of real estate between two or more parties who have been named in one conveyance as joint tenants. Upon death of a joint tenant, the decedent’s interest passes to the surviving joint tenant or tenants by the Right of Survivorship.
Rescission
Terminate the contract, and returns the parties to their original positions before the contract.
Cancellation
Terminates a contract without a return to the original position.
Escheat
When the state may acquire privately owned or personal property.
Straight Loan
Also called a Term Loan. When only interest is paid during the term of the loan, while the entire principal amount due with the final interest payment.
Appurtenance
A right, privilege, or improvement belonging to, and passing with the land.
