Real Estate Practice Flashcards
The death of either the tenant or the landlord will terminate the lease and the party’s heirs will NOT be bound by its terms is called
Tenancy at will
Appraisal method that includes depreciation in estimating property value is
Cost/summation Method
VA loans in Georgia are typically made by who?
Private lenders approved by the Department of Veterans Affairs.
Consideration for the use of real property is
Rent
An agreement in which the tenant pays a fixed rent and some or all of the utilities and the landlord pays all taxes, insurance, and expenses related to the property.
Gross Lease
The Clause in a contract that makes timely performance a condition of the agreement is
Time is of the essence clause
To insert additional terms or supporting documentation into an original offer, a buyer’s agent would most likely use
Addenda/Exhibit
If the buyer makes the offer to the seller he/she is
Offeror while the seller is Offeree
If the Seller makes the offer to the buyer
The seller is the Offeror while the buyer is the offeree
- A lease that has a definite starting and ending date.
- If it is for more than one year it must be in writing to be enforceable.
- Notice to terminate is not required by the landlord or tenant cos the tenant is expected to vacate the property once the lease ends.
- It is terminated by the sale of property
- Death of the Landlord or the tenant does not end the agreement.
Estate For Years
The minute the buyer counters the offer from the seller, the buyer becomes the
The Offeror while the seller becomes the Offeree
When legal action is unavailable to force performance of a contracts term, the agreement is said to be
Unenforceable
The primary purpose of closing is to
Transfer title
An executed sales contract is one in which:
All parties have fulfilled their promises
The term “Meeting of the minds” is refers to:
Mutual assent of the contractual parties
Which of the following must be included in a valid real estate sales contract?
Consideration
Which of the following contracts would be considered a unilateral agreement?
An option agreement which expires in six months.
The legal remedy of terminating a contract and restoring the parties to their original position prior to the contract is called.
Rescission
Option contracts are unilateral contracts where the seller is
Optionor and the buyer is Optionee
In land or installment contracts
The seller holds the legal title and the buyer holds the equitable title until the contract has been satisfied.
A change or modification to an existing accepted /binding contract is called?
Amendments
On an estimate of Net to Seller Worksheet, a purchase money mortgage would be entered as:
A debit
For a Georgia lender, private mortgage insurance (PMI) would typically be assessed for
95% Conventional loans
Lease tied to index or contain predetermined rental increases through escalator clauses are typically identified as
Graduated leases
A broker has an ongoing contract to manage an office park complex for a real estate investor, implement marketing decisions to attract long-term quality tenants, and set rents appropriate to the market. What type of relationship does the brokerage company has with the owner?
General agency
Georgia law requires what type of insurance coverage for a broker who manages a community association?
Fidelity bond if the broker handles more than $60,000
The holder of a leasehold estate has what type of interest in the property?
A possessory interest in property which may continue for a definite or indefinite period of time.
What Clause in a rental contract would commonly protect a tenant’s leasehold rights if the landlord defaults on a loan secured by the rental property
Non-disturbance clause.
Commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by the tenant’s gross receipts exceeding $5,000 is called
A percentage lease
A tenancy in which the tenant continues in possession after the lease has expired without the landlord’s permission is
An estate at sufferance
A lessee has a one-year leasehold interest in a house. The lease automatically renews itself at the end of each year. The lessee’s interest is
Periodic tenancy or An estate from period to period.
A lease in which the tenant pays rent, plus some or most of the operating expenses related to the property and landlord paying some property expenses is called
A net lease
