Unit H Law - Estate Law, Short Sale, and Environmental Hazards

Question 1

How many witnesses for a will?

Answer 1

2

Question 2

Simple will

Answer 2

This will contains easy instructions for the distribution of your assets.
-direct to heirs

Question 3

Probate court

Answer 3

how wills are distributes

Question 4

Testamentary trust will

Answer 4

This will establishes one or more trusts for the distribution of your assets.

Question 5

Pourover will

Answer 5

This type of will places some or all of your assets into a previously established trust.
- then existing assets pour over into existing will when person dies

Question 6

Holographic will

Answer 6

This must be written in the hand of the person establishing the will. It has no witnesses, and not all jurisdictions will recognize this will as a legal document. Oregon does not recognized a holographic will.

Question 7

Oral or nuncupative will

Answer 7

This type of will is spoken rather than dictated or written. Not all jurisdictions will recognize a nuncupative will as a legal document; it is often used with military personnel.

Question 8

Joint will:

Answer 8

This type of will disposes of the assets and estate of two people, often married couples or partners.

Question 9

Testate

Answer 9

A person who dies leaving a will is considered testate

–The will controls how the decedents estate is distributed, paying the debts.

Question 10

probate

Answer 10

The process of distribution is called probate. In probate. a personal representative appointed by the will or the courts represents the decedent and conveys the assets according to the will. In Oregon, a will requires two witnesses.

Question 11

intestate

Answer 11

A person who dies without leaving a will is considered intestate

Question 12

escheatment.

Answer 12

If a person dies intestate and there are no legal heirs, then the property reverts to the state through as process known as escheatment.

–If a person dies intestate with heirs, then the property will be given to the heirs according to the law of descent and distribution.

Question 13

Short Sale

Answer 13

A short sale is a real estate transaction where the proceeds of the sale will not generate sufficient funds to pay the debts secured by the property and the seller is unable to pay this difference.

–Any creditor(s) with a security interest in the property must consent to receiving less than they are owed in return for releasing any lien on the property.

–The fact that a creditor may release its lien to allow the property to be sold does not necessarily mean that the creditor has or will forgive the deficiency.

Question 14

How many parties in a short sale?

Answer 14

at least three parties; the sellers, the buyers, and the lending institution/s which may approve of the short sale

–While the bank is not the licensee’s client, the licensee, by law, has the duty to deal fairly and honestly with all parties in a transaction. A licensee must not be involved in any practice which is deceptive to any lender.

–Generally speaking, a lender will not consider a short sale without an actual bona fide offer.

Question 15

A short sale can have advantages to the lender such as:

Answer 15

–A short sale is usually less costly than a foreclosure, thus minimizing losses

–Can minimize legal fees

–The lender doesn’t have to deal with property maintenance issues should the property become bank owned.

Question 16

A short sale may have some advantages to the borrower such as:

Answer 16

A short sale may not hurt their credit history as much as a foreclosure
A borrower may be able to avoid the stigma that is associated with a foreclosure

Question 17

more than one lender on a short sale

Answer 17

When there is more than one lender on a property the negotiations for a short sale become increasingly more difficult. Second or third lien holders, often called junior lien holders, often hold up the approval process to be able to receive the largest possible payment in exchange for releasing their lien. This is also very risky for these junior lien holders since if the property does go into foreclosure, they may receive nothing.

Question 18

Specifying and Giving Notice of a Short Sale

Answer 18

licensees should be sure to include the verbiage in the Purchase and Sale Agreement “subject to all underlying lien holder approval” when dealing with a short sale or the possibility of a short sale.

Question 19

The Purchase and Sale Agreement is the only true contract, and this contract should clearly state that it is subject to all underlying lien holder approval.

Answer 19

The reason that this point is important is to protect the seller/listing broker from paying a commission when the bank will not approve of a short sale.

Question 20

A HUD-certified counselor can provide the following services:

Answer 20

Determine if a homeowner can qualify for a retention option under the Making Homes Affordable Plan or other plans
Assist homeowners is filling out the required paperwork that is necessary to submit to the lender
Explain the homeowner’s rights and obligations when requesting a retention option

Question 21

Real estate is

Answer 21

property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water and structures.

Question 22

real estate vs land

Answer 22

Land is the part of the earth’s surface, subsurface and air above it. Real estate is land and anything that becomes attached to land.

Question 23

What are we talking about when we say characteristics of real estate?

Answer 23

Real estate has unique characteristics that can affect its value. There are ECONOMIC and PHYSICAL characteristics. The economic characteristics that influence value are scarcity, improvements, permanence, and area location:

Question 24

Scarcity

Answer 24

There is only so much given land on the earth. More land cannot be manufactured or created**TEST*

Question 25

Improvements

Answer 25

Improvements can be immovable structures such as landscaping, crops, utility connections, roads, fences, driveways, etc. Each would affect the value of the land. Adjoining land and the neighboring properties could also affect a parcel of land.

Question 26

theory of progression.

Answer 26

Example: John owns a home in a neighborhood where all of the homes are larger and nicer than his property. The neighborhood with nicer homes increases the value of John’s property. This is known as the theory of progression.

Question 27

theory of regression.

Answer 27

Example: Jane and Bob own a home in a neighborhood where many of the properties and structures are lacking attention and in need of repair. The neighborhood diminishes the value of their property. This is known as the theory of regression.

Question 28

Permanence of land

Answer 28

Land is permanent and for the most part cannot be destroyed. The structure on the land however, could be destroyed.

-erosion or flooding can occur

Question 29

Property Location

Answer 29

Location can be the number one contributor to value. Included in this would be such factors as:

Proximity to employment
Proximity to transportation
View property
Climate
Natural resources such as water
Availability of utilities
Availability of transmission for television, computers, cell phones, etc.

Question 30

physical characteristics of land

Answer 30

are soil, indestructible nature such as boulders, immobility, and non-homogeneity in that each parcel is unique.

Question 31

Class I soils

Answer 31

Soils that have only slight inconsequential limitations that restrict their use and are considered the most productive soils based on the Land Capability Classification System (USDA).

Question 32

Class II soils

Answer 32

Soils that have moderate limitations that reduce the choice of plants or require moderate conservation practices based on the Land Capability Classification System (USDA).

Question 33

Conservation Opportunity Areas

Answer 33

Landscapes where broad fish and wildlife conservation goals could best be met. These areas were developed to guide voluntary actions. These are not regulatory boundaries, and there are no regulatory requirements attached to them. Land use or other activities within these areas will not be subject to any new restrictions as a result of these delineations. (ODFW, 2005)

Question 34

Exclusive farm use zoning

Answer 34

(keeps farm land farm land) EFU zoning. “…Limits development that could conflict with farming practices. It keeps farmland from being divided into parcels too small for commercial agriculture. Lands in these zones are automatically eligible for lower property taxes based on the land being farmed. All 36 counties in Oregon have applied EFU zoning to their agricultural land” (Oregon Department of Land Conservation and Development).

Question 35

Farm/Forest zoning

Answer 35

F/F zoning. Preserves land suitable for agricultural and forest uses. Allows the establishment of uses consistent with the predominant use of land for agriculture and forest use.

Question 36

Forest-Use zoning

Answer 36

F-U zoning. “The land use program requires that counties inventory their forest land and designate it for forest use. These lands must then be placed in a zone which limits nonforest uses and encourages forest uses. In these zones, dwellings and commercial uses are limited, while forest operations are allowed” (Oregon Department of Land Conservation and Development).

Question 37

Groundwater Restricted Area

Answer 37

an area designated as a critical ground water area or as a ground water limited area by the Water Resources Department or Water Resources Commission.

Question 38

High-value farmlands

Answer 38

areas of agricultural land defined by Statute and Commission rule.

Question 39

High-value forestland

Answer 39

) That is in a forest zone or a mixed farm and forest zone, that is located in western Oregon and composed predominantly of soils capable of
producing more than 120 cubic feet per acre per year of wood fiber and that is capable of producing more than 5,000 cubic feet per year of commercial tree species; or
b) That is in a forest zone or a mixed farm and forest zone, that is located in eastern Oregon and composed predominantly of soils capable of producing more than 85 cubic feet per acre per year of wood fiber and that is capable of producing more than 4,000 cubic feet per year of commercial tree species.

Question 40

Home site approval

Answer 40

approval of the subdivision or partition of property or approval of the establishment of a dwelling on property.

Question 41

Irrigated

Answer 41

having been watered by an artificial or controlled means, such as sprinklers, furrows, ditches, or spreader dikes.

Question 42

Land Capability Classification System

Answer 42

A system of grouping soils primarily on the basis of their capability to produce common cultivated crops and pasture plants without deteriorating over a long period of time. A capability class is the broadest category in the land capability classification system. It is a numeric field ranging from 1-8, which is used to represent both irrigated and non-irrigated soils (USDA).

Question 43

Land cover

Answer 43

Anything that exists on, and is visible from above, the earth’s surface. Examples include vegetation, exposed or barren land, water, snow, and ice.

Question 44

Land use

Answer 44

The way land is developed and used in terms of the kinds of anthropogenic activities that occur (e.g. agriculture, residential areas, industrial areas).

Question 45

Layer

Answer 45

Distinct map theme.

Question 46

Lot

Answer 46

A single unit of land that is created by a subdivision of land. Measure 37 - M37.

Question 47

Measure 37

Answer 47

requires that the government either waive land use regulations or compensate land owners when a regulation reduces a property’s fair market value (Gray, 2006)

Question 48

Measure 37 permit

Answer 48

Final decision by Metro, a city or a county to authorize the development, subdivision or partition or other use of property pursuant to a waiver.

Question 49

Non-irrigated capability class (dominant condition)

Answer 49

NICCDCD. Dominant capability class, under non-irrigated conditions. This is the broadest (first level) category in the land capability classification system for soils. Non-irrigated capability class definitions are often referenced when looking at land use planning issues in Oregon. The value may range from 1-8.

Question 50

Parcel

Answer 50

A single unit of land that is created by a partition of land. Partition - Either an act of partitioning land or an area or tract of land partitioned.

Question 51

Partition land

Answer 51

To divide land into two or three parcels of land within a calendar year.

Question 52

Rural Area

Answer 52

Any area within the state of Oregon except the urbanized portions of metropolitan statistical areas, as determined by the U.S. Bureau of the Census.
- Determined by the federal gov

Question 53

Subdivide land

Answer 53

To divide land to create four or more lots within a calendar year.

Question 54

Subdivision

Answer 54

An act of subdividing land or an area or a tract of land subdivided.

Question 55

Total Population

Answer 55

The total number of individuals enumerated by the US Census Bureau or estimated by the State Data Center at Portland State University Population Research Center during inter-censal years.

Question 56

Tract

Answer 56

One or more contiguous lots or parcels in the same ownership.

Question 57

Urban growth boundary

Answer 57

UGB. An acknowledged urban growth boundary contained in a city or county comprehensive plan or an acknowledged urban growth boundary that has been adopted by a metropolitan service district council.

Question 58

Zoned for residential use

Answer 58

Zoning that has as its primary purpose single-family residential use.

Question 59

Land

Answer 59

is the part of the earth’s surface, subsurface and air above it.

Question 60

Real estate

Answer 60

is land and anything that becomes attached to land.