State Test Flashcards
Tenants in Common
Tenants in common may transfer their interest to any person at any time.
This may be made by a conveyance such as a deed or by will or intestate succession.
beneficiary’s statement
a statement by the beneficiary (lender) of the balance due to pay off the loan in full
trustOR
Borrower
TrustEE
3rd party
mortgage loan
loan that is obtained by a borrower using real estate as the collateral or the security
jointly & severally
obligated both together and individually
promissory notes
evidence that money is owed by one person to another.
trust deed
the security for the note. not a contract but rather a conveyance of the naked legal title with the power of sale from the truster to the trustee. is an encumbrance
when there is a default on a trust deed a trustee’s sale would be the recommended procedure
default
occurs when property is used for an illegal purpose, the refusal of the borrower adequately maintain & delinquent loan payments
security interest
the lender’s (creditor’s) right to foreclose against the borrower’s property if the loan is not repaid.
personal property can become
real property and can be:
- Alienated
- Hypothecated
Alienated
transfered
hypothecated
used as security for a loan
open end mortgage
an extension of credit from the lender to the borrower, allowing them at a later time to borrow additional funds
fully amortized loan
as the equal monthly payments are made, the amount credited to principal will increase while the amount credited to interest will decrease. However the principal amount will not increase by a constant amount.
soil pipe is commonly used in
sewer lines
selling a property “As Is”
is permissible but only when all disclosure requirements are met including the Transfer Disclosure Statement to disclose all known defects.
Secondary Mortgage Market
is where existing loans are bought and sold.
method used when an appraising a special purpose property
a church or court house, the cost approach is most commonly used
Value
Demand, utility, Scarcity & Transferability DUST
Bill of Sale
includes the inventory of the stock, the trade name & a list of fixtures & equipment.
Perscription
refers to an easement, which is the right to use the property of another.
The return from real property should be
higher than from bonds, first trust deeds & first mortgages
Easement
an interest which can be protected against interference by a third persons, capable of being created by a conveyance, considered a non-possessory interest. not an estate but a non-possessory interest one has to use land belonging to another.
lease (leasehold)
a personal interest in real property known as a less-than-freehold estate (chattel real)
Devise
the transfer of real property under a will.
When a buyer makes a low down payment &/or lengthens the life of the loan
the financing costs increase because of higher interest cost.
fee simple title
of indefinite duration, can be transferred with or without consideration and is transferable by will or intestate succession.
Encumberance
may be defined as anything/action which burdens or affects the title such as easements, restrictions, encroachments or trust deeds, mortgages, judgments. anything which affects or limits the fee simple title to property.
encroachements
non-money encumbrances
judgements
money encumbrances
Appropriation
giving certain rights by a judicial governmental body.
Percolation
the ability of the soil to absorb & drain water
Estoppel
a principle of law that bars people from asserting certain rights
eminent domain
the right of the state to take property for public use
Zoning
A city’s general plan for which areas will be used for which types of development.
percentage lease
when the rent is computed on the gross sales of a business occupying real property / is tied to a percentage of the gross receipts of a business.
landlord/tenant arrangement is called
less-than-freehold estate (sale-leaseback results in this)
when the tenant has the use of the property for a specified period of time which may be days,weeks,months or years
estate for years
the remedy of unlawful detainer action is used by offended
Lessors
A mortgage is what type of property
personal property
examples of appurtenances
easement, mineral rights (real property)
Growing trees are _____ property
real
