National Real Estate Exam Prep, Questions with accurate answers, Rated A.

Document Content and Description Below

National Real Estate Exam Prep, Questions with accurate answers, Rated A. Unilateral Contract - ✔✔Contract containing ONE promise given in exchange for completing an act. NO obligation to act... . Bilateral Contract - ✔✔Contract containing TWO promises. Example: A listing agreement is a bilateral contract Client/Principal - ✔✔A person who has entered into an agency relationship w/ a licensee & with whom there is a written contract Customer - ✔✔Any 3rd party w/ whom a licensee works In-Company Transaction - ✔✔Transaction in which the buyer and seller are both represented by the same brokerage. Management-Level License - ✔✔A licensee who is employed by or affiliated w/ a brokerage who has supervisory responsibility over other licensees. Statute of Frauds requires the following: - ✔✔1) Certain contracts be in writing to be enforceable, 2) All real estate contracts for the sale of LAND & ALL LEASES for more than one year, options for more than 6 months, must be in writing & signed by all parties. Novation - ✔✔Substituting a new obligation for an old one. Also, a transfer of rights and/or duties under contract. If the original party to an agreement is replaced due to novation, are they liable? - ✔✔No Mailbox Rule - ✔✔Acceptance that becomes effective as soon as it is sent in the mail, unless the contract specified a certain means for delivery. Grantor is the - ✔✔Owner Grantee is the - ✔✔Buyer Optionor is the - ✔✔Seller Optionee is the - ✔✔Buyer Lessor is the - ✔✔Landlord Lessee is the - ✔✔Tenant Vendor is the - ✔✔Seller Vendee is the - ✔✔Buyer Mortgagor is the - ✔✔Buyer Mortgagee is the - ✔✔Lender Trustor is the - ✔✔Buyer Trustee is the - ✔✔3rd Party to the transaction Regulation Z dictates - ✔✔Disclosure Requirements in Credit Transactions, including the disclosure of the Annual Percentage Rate (APR) Regulation Z applies to: - ✔✔ALL REAL ESTATE credit transactions except for commercial loans. For non-real estate transactions, it covers up to $25,000. The Cooling Off Period is a condition of: - ✔✔Regulation Z. It gives the customer the right to rescind the transaction for up to 3 business days following the transaction for liens placed on a principal residence. RESPA stands for - ✔✔Real Estate Settlement Procedures Act RESPA requirements include: - ✔✔1) Lenders must give borrowers a good faith estimate of closing costs. 2) Lenders must give borrowers a HUD booklet describing closing costs, settlement procedures & borrowers rights. 3) Closing agent must prepare a HUD stmt detailing how much was paid to what companies for what services 4) Borrower must be given right to inspect HUD stmt 1 day before close. 5) Lenders & other parties must give full disclosure of all business relationships. 6) Lender must disclose to borrower if the loan is likely to be sold to another investor. RESPA prohibits: - ✔✔1) Kickbacks & fees for services not performed in connection w/ the closing 2) It limits the amount of escrow reserves a lender can hold 3) The sale may not be on the condition on the use of a certain title co or escrow co. chosen by the seller. Annexation is - ✔✔the act of bringing something or putting something on the land. When determining annexation, value of the item is RARELY considered. The RELATIONSHIP if the parties is more important. Doctrine of Emblements - ✔✔says that a TENANT farmer may return to pick the 1st crop after the land has been sold. Fixtures - ✔✔Man made attachments Bundle of Rights - ✔✔1) Right of use 2) Right of enjoyment 3) Right of disposal Riparian Rights - ✔✔Rights of the landowner ADJACENT to a river Remember "R" - riparian/river Littoral Rights - ✔✔rights of a landowner adjacent to a lake Remember "L" - Littoral/Lake Appurtenances are rights that go along with real estate and include: - ✔✔Air Rights, Water Rights, & Mineral rights to name a few. Fee Simple (also called Fee Absolute) - ✔✔The best interest in real estate recognized by law; it represents the most complete ownership. Life Estate - ✔✔The estate CANNOT be passed on to the life estate holder's heirs. Pur Autre Vie - ✔✔A life estate that is dependent up the life of another. Estate for Years is a type of leasehold that: - ✔✔Has a specific expiration date or specific term. Period to Period is a type of leasehold that: - ✔✔Has no specific expiration but the length is specified (like a month to month lease) Joint Tenancy - ✔✔2 or more ownership holders own a fraction of UNDIVIDED interest. Rights of survivorship apply. The types of deeds are: - ✔✔1) Warranty Deed 2) Special (or limited) Warranty Deed 3) Quitclaim Deed 4) Special Purpose Deed 5) Transfer on Death Deed. Warranty Deed - ✔✔Offers the greatest protection that a deed can give. Special Warranty Deed (Limited warranty deed) - ✔✔1) Owner warrants only that he has not done harm to the title 2) Covers only the period of time when the sellers owner the property. Quitclaim Deed - ✔✔The seller agrees to convey whatever interest, IF ANY, they have in the property. The reason a deed is recorded is - ✔✔for protection against a third party. Elements necessary to a valid deed: - ✔✔1) signed & acknowledged by grantor 2) Lists marital status of the grantor 3) Use words of conveyance - also called a granting clause 4) Names & addresses of grantees 5) Acknowledged by Grantor in front of Notary Public 6) Signed in front of two witnesses (in most states) 7) Legal description 8) Delivery & acceptance of deed Lot & Block System - ✔✔Subdivision Township - ✔✔36 Square Miles Eminent Domain - ✔✔The RIGHT of the government to condemn & take the property. Condemnation - ✔✔The PROCESS of the government taking a property by eminent domain. Escheat - ✔✔The state takes property upon an owners death if there is no will & no heirs exist. Adverse Possession - ✔✔A person takes possession & use of a property belonging to another. Possession must be open, notorious, hostile & uninterrupted for a certain period of time. Abstract of Title - ✔✔A complete history of ownership. Encumbrance - ✔✔A claim or liability that attaches to the land & is held by one who is NOT the fee owner. Examples of Specific Liens - ✔✔real estate taxes, mortgages, mechanics liens Easement - ✔✔Right to use a property for a specific use Easement in Gross - ✔✔An entity's personal right to use property. The receiver DOES NOT own the adjoining property. Example: utility easement Easement Appurtenant - ✔✔Runs with the land. Easement by Necessity - ✔✔Created when no other access to land exists...right of ingress & egress Easement by Prescription - ✔✔Created through continual use over a certain period of time. It must be continual, visible, & w/o approval. Example - a private road becomes public. License - ✔✔A privilege granted to an individual for a specific purpose. It is NOT assignable to others. Accretion - ✔✔Physical addition to the land by natural forces. Alluvium (also Alluvion) - ✔✔The soil on a shore or bank of a river Lis Pendens - ✔✔A pending notice of a lawsuit giving notice of a possible claim to the property Writ of Attachment - ✔✔A document filed during a lawsuit that prevents a debtor from conveying the property Fixtures - ✔✔items of personal property attached to real property that are not removed by the seller Trade Fixtures - ✔✔Personal property used in a business and can be removed by the lessee when the lease terminates. Appraisal - ✔✔is an estimate or an opinion of value Market Value - ✔✔An estimate of probably price on the date of the appraisal. Market Price - ✔✔What the property actually sells for The 3 approaches to value are: - ✔✔1) Market Data Approach (single family homes) 2) Cost Approach (commercial property) 3) Income Approach (income producing property) Blockbusting - ✔✔Encouraging owners to sell their properties because minorities are moving into a neighborhood Steering - ✔✔Trying to influence a buyer's housing choice using race, religion, ethinicity, national origin, or ancestory factors as the reasoning. Redlining - ✔✔Denying loans in certain areas due to race, religion, sex, familial status, or a disability. The Civil Rights Act of 1866 Covers: - ✔✔1) Race 2) Color 3) Ancestry (it's the only act that covers this) It applies to all property (Real & Personal) There are no exceptions The Federal Fair Housing Act Covers: - ✔✔1) Race [Show More]

Last updated: 1 year ago

Preview 1 out of 13 pages