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101 Cards in this Set

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EARNEST MONEY

MONEY DEPOSITED BY A BUYER VIA CONTRACT EITHER FORFEITED IF BUYER DEFAULTS OR APPLIED TO THE PURCHASE IS SALE IS CLOSE



AKA HAND MONEY

INTEREST RATE

the charge made by lenders for the use of their money, which can flucuate

ACCELERATION CLAUSE

THE CLAUSE IN A MORTGAGE OR TRUST DEED THAT CAN BE ENFORCED, IF BORROW DEFAULTS AND ENTIRE DEBT DUE IMMEDIATELY

AFTER AFFORDABILITY WHAT IS NEXT CONSIDERATION WHEN BUYING A HOME?

Location

BUNDLE OF LEGAL RIGHTS

THE CONCEPT OF LAND OWNERSHIP THAT INCLUDES ALL LEGAL RIGHTS TO THE LAND: POSSESSION, CONTROL, ENJOYMENT, EXCLUSION AND DISPOSITION

BILATERAL CONTRACT


UNILATERAL - ONE SIDED


EXPRESS CONTRACT - BY AGREEMENT


IMPLIED - BEHAVIOR OF PARTIES


EXECUTORY - ONE OR BOTH STILL NEED TO ACT


EXECUTE - ALL PARTIES FULFILLED

contract between 2 parties and one performs in exchange for other performance

COVERS BROKER OR SALESPERSON

#

CLIENT VS PRINCIPAL VS CUSTOMER

CLIENT IS THE PRINCIPAL WHO IS THE PRINCIPAL THAT HIRES THE AGENT, WHILE CUSTOMER IS A THIRD PARTY THAT REQUIRES HONEST, CARE AND SKILL

COST APPROACH (APPRAISAL)

BASED ON PRINCIPLE OF SUBSTITUTION USED FOR NEWER OR SPECIAL PURPOSE IE SCHOOL, CHURCH, GOV BUILDING

SALES COMPARISON APPROACH (APPRAISAL)


AKA MARKET DATA APPROACH

ESTIMATE OF VALUE OBTAINED BY COMPARING SUBJECT PROPERTY WITH RECENTLY SOLD COMPARABLE PROPERTIES - RESIDENTIAL

INCOME APPROACH


(APPRAISAL)

BASED ON THE PRESENT VALUE OR RIGHTS TO FUTURE INCOME - INVESTMENT/SHOPPING LOT

DEED RESTRICTION - HOW CREATED & WHAT FOR?

LIMITATIONS TO THE USE OF LAND, CREATED BY PAST OWNERS FOR A SPECIFIC PURPOSE OR USE OR PROHIBITION

DEFEASIBLE FEE ESTATE



FEE SIMPLE DETERMINABLE



FEE SIMPLE ABSOLUTE - HIGHEST INTEREST

DFE - IS A QUALIFIED ESTATE SUBJECT TO SPECIFIC EVENT



FSD - SPECIAL LIMITATION:"SO LONG AS", "WHILE", "DURING

VALIDITY OF CONTRACTS


VALID -MEETS ALL REQUIREMENTS


VOID


VOIDABLE


NOVATION -SUBSTITUTE WITH NEW CONTRACT

VOID - NO LEGAL FORCE OR EFFECT - FRAUD



VOIDABLE - APPEARS TO BE VALID BUT MAY BE RESCINDED BY ONE OR BOTH PARTIES



INDEFINITE DURATION (WHICH TYPE OF ESTATE) VS


NONFREEHOLD ESTATES WHERE LENGTH OF TIME IS DETERMINABLE

FREEHOLD ESTATES; LASTS A LIFETIME OR FOREVER

IS ALL INCLUSIVE TYPE OF OWNERSHIP FEE SIMPLE

FEE SIMPLE ABSOLUTE; OWNER ENTITLED TO ALL RIGHTS AND THIS ESTATE INTEND TO RUN FOR EVER; PASSES TO HEIRS. ONLY LIMITATIONS ARE ZONING LAWS AND RESTRICTIVE CONVENANTS

TESTATE VS INTESTATE

DYING WITH A WILL VS WITHOUT A WILL

DEED MUST BE DELIVERED AND ACCEPTED

BY THE GRANTEE TO PASS TITLE

OWNERSHIP & CO-OWNERSHIP


OWNERSHIP IN SEVERALTY - ONE OWNER



TENANCY IN COMMON - MORE THAN ONE


JOINT TENANCY - FRACTION INTEREST


TENANCY BY ENTIRETY - ALLOWS HUSBAND OR WIFE TO INHERIT OTHER SPOUSES INTEREST


TERMINATION


TENANCY IN COMMON - IF ONE DIES AND WILLS INTEREST, THEY ARE EQUAL WITH OTHER TC


JOINT TENANCY - TENANCY IS DESTROYED WHEN ONE DIES, RIGHT OF SURVIVORSHIP,ONE LESS OWNER UNTIL LAST or IF ONE DIES AND LEAVES INTEREST TO ANOTHER, THEN NEW TENANCY IN COMMON

JOINT TENANT DIES WITH A WILL (TESTATE) WHAT HAPPENS?

NOTHING BECAUSE DECEASED TENANT'S OWNERSHIP GOVERN BY JOINT TENANCY WITH RIGHT OF SURVIVORSHIP RATHER THAN WILL

INVOLUNTARY LIEN VS


VOLUNTARY LIEN

LIEN PLACED ON THE PROPERTY WITHOUT THE CONSENT OF OWNER, IE TAX, UTILITY


VS


LIEN PLACED WITH CONSENT AND KNOWLEDGE IE MORTGAGE

LAND


REAL ESTATE


REAL PROPERTY

ALL INTERCHANGABLE BUT DIFFERENT


LAND IS EARTH SURFACE, UPWARD AND DOWNWARD, INCLUDES SOIL AND NATURAL ATTACHMENTS IE TREES AND PLANTS


REAL ESTATE IS BROADERGOVERNS NATURAL COMPONENTS AND PERMANENT MAN MADE IMPROVEMENTS, IE ANYTHING ARTIFICIAL


REAL PROPERTY INCLUDES LAND/REAL ESTATE AND BUNDLE OF LEGAL RIGHTS

ELECTROMAGNETIC FIELDS


CHLOROFLUOROCARBONS (CFCS)


UNDERGROUND STORAGE TANKS


BROWNFIELDS

ELECTRICAL CURRENTS PRODUCED BY ELECTRICAL PRODUCTS AND HIGH VOTAGE LINES SUSPECT OF CAUSING CANCER HORMONAL CHANGES AND BEHAVIORAL ABNORMALITIES


BROWNFIELDS ARE ABANDONED INDUSTRIAL SITES WITH TOXIC WASTE

FIXTURE VS


TRADE FIXTURE

PERSONAL PROPERTY CONVERTED TO REAL ESTATE W/ INTENTION TO BECOME PERMANENT VS PERSONAL PROPERTY OWNED BY TENANT AND ATTACHED TO REAL ESTATE USED FOR BUSINESS - CAN BE LEGALLY REMOVED

RADON


FORMALDEHYDE


POLYCHOLRINATED BIPHENYLS (PCBS)

RADON IS NATURALLY OCCURRING COLORLESS, ORDORLESS TASTELESS RADIOACTIVE GAS PRODUCED BY DECAY OF TOHER RADIOACTIVE SUBSTANCES, COMES THROUGH CRACKS IN BASEMENT AND FOUNDATION AND CAUSES CANCER


UREA FORMADEHYDE FOAM INSULATION (UFFI) ONCE BAN, NOW IN USE

CHARATERISTICS OF LAND


PHYSICAL -IIU


ECONOMIC - SIPL

ECONOMIC AFFECTS VALUE - SCARCITY, IMPROVEMENT, PERMANANCE OF INVESTMENT, LOCATION OR AREA PREFERENCE (SITUS)


PHYSICAL - IMMOBILITY, INDESTRUCTIBILITY, UNIQUENESS (NONHOMOGENEITY)

GROSS LEASE VS NET LEASE

GROSS - TENANT PAYS RENT, OWNER PAYS ALL


NET - TENANT PAYS ALL OPERATING EXPENSES

SEVERANCE AND ANNEXATION

SEVERANCE - FROM REAL TO PERSONAL - GROWING TREE UNTIL OWNER CUT IT DOWN OR PICK AN APPLE


ANNEXATION -CHANGE OF PERSONAL PROPERTY IE BUY CONCRETE MIX WITH SAND/STONE TURN INTO WALKWAY

ASBESTOS


SEALING OFF ASBESTOS

BANNED IN 1978, FIRE RESISTANCE MATERIAL USED AS INSULATION. REMOVAL OF ASBESTOS OR ENCAPSULATION IS PREFERRED METHOD AND ASBESTOS INSPECTORS PROVIDES RECOMMENDATIONS FOR REMEDIATION

WHAT DOES HUD REQUIRE WHEN LEAD BASED PAINT IS PRESENT


LEAD BASED PAINT HAZARD REDUCTION ACT (LBPHRA)

LEAD PAINT USED AS A DRYING AGENT AND PIGMENT, LEAD PRESENT IN 75% OF HOUSE BUILT BEFORE 1978, CAUSING DEVELOPMENT DISABILITIES IN CHILDREN


FEDERAL LAW NOT REQUIRING TEST BUT DISCLOSURES OF KNOWN LEAD BASED PAINT HAZARDS TO BUYERS OR RENTERS

METES AND BOUNDS LEGAL DESCRIPTION

THE LEGAL DESCRIPTION OF A PARCEL WHICH BEGINS AND ENDS AT SAME POINT, WITH BOUNDARIES AND MONUMENTS AS MARKERS

TITLE


DEED


PERSONAL PROPERTY

TITLE IS A RIGHT TO LAND, NOT PRINTED DOCUMENT


REAL PROPERTY CONVEYED BY DEED AND IS DOCUMENT SHOWING OWNERSHIP


PERSONAL PROPERTY CONVEYED BY BILL OF SALE OR RECEIPT

WHY IS A NOTARY PUBLIC USED ON A DEED

TO ACKNOWLEDGE GRANTORS SIGNATURE

SUBORDINATION AGREEMENT (MORTGAGE)

WHEN LIEN HOLDERS AGREE TO CHANGE POSITION OF LIEN

FEDERAL NATIONAL MORTGAGE ASSOCIATION - WHO OWNS?

FANNIE MAE - THE GOVERNMENT

SUPPLY AND DEMAND


(WHAT EFFECTS?)

APPRAISAL PRINCIPLE THAT FOLLOWS INTERRELATIONSHIP OF REAL ESTATE SUPPLY AND DEMAND. THE EFFECTS FOR SUPPLY: LABOR FORCE, CONSTRUCTION COST, GOV CONTROL AND FISCAL POLICIES VS EFFECTS OF DEMAND: pop, demo, employ and wage level

PROCURING CAUSE

the chain of events leading to a sale

DUAL AGENCY

representation of both parties on same transaction, only legal if both parties agree

FIDUCIARY OBLIGATIONS

an agent's duties owed to a principal ie care, obedience, accounting, loyalty, disclosure and notice

OPEN HOUSING RIGHTS

Fair housing laws to protect consumers from discriminating in housing

CIVIL RIGHTS ACTS OF 1866 OR 1964

Act that prohibits racial discrimination in sales and rental of housing

FAIR HOUSING 1968 OR FAIR HOUSING AMENDMENT 1988

1968 prohibits discrimination based on race, color, etc


amendment - included families with children and physical and mental disabilities

EXCLUSIVE RIGHT TO SELL VS EXCLUSIVE AGENCY LISTING

exclusive right to sell when owner appoints only broker vs owner retains the right to sell w/o paying commission

NET LISTING

listing based on net price the seller receives, illegal but broker can sell for higher price

DEBT TO EQUITY RATIO

same as mortgages based on their loan to value ratio or ratio of debt to value of the property

IMPOUND ACCOUNT HOLDS REAL ESTATE TAXES FOR MORTGAGE COMPANY

Escrow

FUNCTIONAL OBSOLESCENCE

a loss of value to an improvement caused by age or bad design

GROSS RENT MULTIPLIER

the figure used as the gross monthly income of a property to produce an estimate of value


gross income multiplier - yearly



sale price /monthly gross rent = GRM


sale price/yearly gross income = GIM


Rental income x GRM = estimated market value

RESPA- REAL ESTATE SETTLEMENT PROCEDURES ACT

FEDERAL LAWS REQUIRING CERTAIN DISCLOSURES ABOUT MORTGAGE LOAN SETTLEMENTS AND PROHIBITS THE PAYMENTS OF KICKBACKS OR CERTAIN REFERRAL FEES

HOW MANY YEARS MUST BROKERS KEEP RECORDS

Three (3) years

ADVERTISING MUST INCLUDE?

written consent of the owner for sale/rent sign


broker's business name, address and phone, if licensee - use registered name and phone w/broker info

CAN A LICENSED PERSON SELL CAMPGROUND MEMBERSHIPS

yes, however a licensed is not required for a campground membership - only instruction and age

CAN THE BROKER not DEPOSIT ESCROW MONEY?

depends, if cash has until the end of the next business day to deposit, if by check with the approval of client can hold

HOW LONG MUST THE CONSUMER NOTICE BE ON FILE?

6 months

POWER OF ATTORNEY VS LICENSEE

the authority to act on another's behalf vs permission to use or one who holds a license

COMMINGLING MONIES $$$$

The escrow money is not allowed to be mixed with personal money

CONTINUING EDUCATION FOR REALTORS


HOW MANY CREDITS EVERY TWO YEARS

14 CLE

WHAT AUTHORITY DOES REAL ESTATE


COMMISSION HAVE?

Administer the law and supervise the activities of licenses, including revoking, suspending and fines up to $1,000

MATH COMPUTATIONS:


COMPUTE GROSS - INTEREST RATE PROBLEM

#

MATH COMPUTATIONS:


COMPUTE ACRES


AND


SQUARE FOOT

#

MATH COMPUTATIONS


COMPUTE EQUALIZATION FACTOR


METES AND BOUNDS


PERCENTAGE

#

MATH COMPUTATIONS:


COMPUTE 6% COMMISSION

#

CERCLA


COMPREHENSIVE ENVIRONMENTAL RESPONSES, COMPENSATION AND LIABILITY ACT

A EPA LAW THAT IDENTIFIESS WAST SITES, FORCING LIABLE PARTIS TO CLEAN UP TOXIC SITES AND BRING LEGAL ACTIONS AND FUNDING ABATEMENT OF TOXIC SITES


AKA SUPERFUND

ENVIRONMENTAL IMPACT STATEMENT (EIS)


ENVIRONMENTAL SITE ASSESSMENT (ESA)

SOME STATES IMPOSE BURDEN ON LICENSEE TO DISCOVER PROBLEMS AND ASK QUESTIONS, PROPERTY DISCLOSURES REQUIRED BY LAW

PRIVATE VS PUBLIC LAND USE


VARIANCE


NONCONFORMING USE

PRIVATE USE - RESTRICTION ON DEEDS, VARIANCE WANTS TO USE LAND DIFFERENT


PUBLIC LAND USE IS CONTROLLED BY ZONING LAWS


NONCONFORMING USE REFERS TO A USE THAT EXISTED BEFORE AN AMENDMENT OR ZONING ORDINANCE

EMINENT DOMAIN

police power authority of government; condemnation the process of taking property for public use

PARTITION

court procedure to divide cotenant interest when parties do not agree

UNAPPROVED MORTGAGE

$

SECURITY DEPOSIT DEBITS

a payment by a tenant held by landlord kept for default or damages to premise

PAYS FOR TITLE SEARCH


PAYS FOR APPRAISER

seller pays for title search


BUYER PAYS FOR APPRAISAL REPORT

#

#

EASEMENT


EASEMENT BY NECESSITY


EASEMENT BY PRESCRIPTION

#

PERMISSIVE USE

LICENSE TO USE LAND

SPECIAL PURPOSE REAL ESTATE

#

SPECIAL AGENCY

AGENT AUTHORIZED TO PERFORM SPECIFIC SINGLE ACT

DADUM

A POINT OR LINE OR SURFACE WHICH ELEVATIONS ARE MEASURED

APPURTENTANCE

RUNS WITH THE LAND, SUCH AS PARKING SPACE, EASEMENT, WATER RIGHTS AND IMPROVEMENT CONNECTS TO PROPERTY AND OWNERSHIP

ESTATE PUR AUTRE VIE - FOR THE LIFE OF ANOTHER

A LIFE ESTATE THAT IS MEASURED BY THE LIFE OF ANOTHER NOT THE GRANTEE

#

#

A MILL

1/10 OF A CENT

FRUCTUS NATURALES - REAL ESTATE

TREES, BUSHES AND GRASSES

RESTRICTIVE COVENANTS

A CLAUSE IN A DEED THAT LIMITS THE WAY OWNERSHIP MAY BE USED

EMBLEMENTS


OR FRUCTUS INDUSTRIALES - PERSONAL PROP

ANNUAL CULTIVATED CROPS OF FRUIT AND VEGETABLES

#

#

AD VALOREM TAXES

TAXES LEVIED ACCORDING TO VALUE

#

#

LAW OF AGENCY

DEFINES THE RIGHTS AND DUTIES OF THE PRINCIPAL AND AGENT

PMI - PRIVATE MORTGAGE INSURANCE


WHEN THE LOAN TO VALUE IS HIGH, LENDERS REQUIRE PMI TO MINIMIZE THEIR RISK; AFTER 22% EQUITY IS GAINED, INSURANCE CAN CANCEL

#

#

WORDS OF CONVEYANCE

#

ESTATE FOR YEARS

#

LIQUIDATED DAMAGES

#

SECONDARY MORTGAGE

#

DEED OF TRUST

#

QUITCLAIM DEED

#

REAL ESTATE RECOVERY FUND

#

DUAL AGENTS

#

REMAINDER MAN

#

AVULSION

#

CONSTRUCTIVE EVICTION

#

#

#