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95 Cards in this Set

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What happens to the sales people empoyed by a broker if his Broker's License is suspended?
Their license is temporarily cancelled.
A Real Estate Broker's License is valid for?
4 years.
Real Estate Law is enforced by?
The Real Estate Commissioner.
A set of principles or values by which an individual guides his or her own behavior.
Ethics.
How many feet are in a mile?
5280
A fee simple estate and a life estate are both _____ estates.
Freehold.
A fee simple estate that may be lost if a certain act is performed is a _____________.
Fee simple on condition subsequent/Fee simple defeasible.
Three joint tenants share interest in a property. One joint tenant's share is sold. The new owner will hold what type of tenancy?
Tenancy in Common.
Someone holding a Real Estate License and employed by a broker and employed for pay to perform any activities or a real estate broker.
Real Estate Sales Person.
Someone permitted by law to employ those holding a sales person license, and can also negotiate sales.
Real Estate Broker.
To recall and make a deal void.
Revoke.
The law that affects the licensing and conduct of Real Estate Agents.
Real Estate Law.
The power of the state to pass laws within limits that promote the order, safety, health, morals, and welfare of the citizens.
Police Power.
Trade name by which someone is a broker or a sales person or associate.
Real Estate Agent/"REALTOR"
The term Real Estate Law refers to:
The Licensing Law of Real Estate Agents and Brokers.
Amount of fine for payment of a fee to an unlicensed person.
$100.00
Ownership concept describing the legal rights that attach the ownership of Real Property.
Bundle of Rights.
A Fee Simple Estate that may be lost when an act is performed is a:
Fee Simple Subsequent.
The most complete form of ownership in property; can be passed by descent or by will after death of the owner.
Estate in Fee, Fee Simple Absolute, or Estate of Inheritance.
I am a renter with a lease, what type of estate do I have?
Less than freehold estate.
An estate in real property which continues for an indefinite period in time.
Freehold estate.
A legal interest in land; Defines the nature, degree and the extent of the ownership in land.
Estate.
In a trust deed, who is the trustor?
The borrower.
What are the requirements of a promissory note.
1) Has to be in writing.
2) Has to be a legal capacity to contract.
3) Has to be signed by borrower.
4) Has to be payable on demand at a given time.
5) Has to be paid to bearer.
6) Has to be voluntariily delivered to borrower.
If the loan borrower can get their payment up to date within ____ days of the trustee sale, this causes _____ of the loan to occur.
FIVE days/REINSTATEMENT to occur. (Loan continues as if there were no lapses, although credit may be damaged for showing 60 or 90 day late payments.)
The fact that the owner has the rights to all increase of equity in the property is known as:
Equitable title.
The parties of a trust deed include:
Trustor (Borrower)
Trustee (Third/Neutral party, Usually bank)
Beneficiary (Lender, Holds Note)
What are the two major differences between a mortgage and a deed of trust?
1) The foreclosure process.
2) Mortgage has two parties, the borrower and lender.
Deed of trust has three parties - Borrower, lender and trustee.
What is the remedy for a default of a payment on a note?
Foreclosure.
Who must sign the reconveyance deed?
The trustee.
A straight note is an ____ only note.
Interest.
A note where the interest can change up or down on the term of the loan.
Adjustable note/ARM/Adjustable Rate Mortgage
What is an Adjustable Rate Mortgage?
A loan where the interest can change up or down on the term of the loan.
When the final payment on a note is greater than the preceding normal installments, the final installment is termed a:
Balloon payment.
The breaking of or failure of duty, either by an act or omission. The violation of or failure to perform an obligation.
Breach.
A process of the court under which property may be seized. An order from the court to the sheriff or other law enforcement officer directing and authorizing a specific act.
Writ.
When a party is behind in loan payments, what notice must be filed to begin the foreclosure process?
Notice of default and election to sell under deed of trust.
What is the time frame for foreclosure from start to finish?
3 months and 21 days. 20 days after the notice is served, 3 months for notice to satisty loan)
A contract is...
A legally enforcable agreement between two or more people to do or not to do something.
What are the five necessities for a legal contract to exist?
Offer
Acceptance
Consideration
Capacity
Legality
What three items must exist in an offer?
A serious offer.
Definiteness: Terms
Communications to seller.
A realtor gives an offer to another realtor on a listing. The listing agent says "We accept." Is this legal? Why?
No.
All offers must be presented to the seller/owner and accepted by the seller/owner.
I have listed a home for 750K in the MLS. Am I obligated to sell at 750K? Why?
No.
An advertisement is not a GUARANTEE to sell, it is an INVITATION.
Minor child "A" enters a contract to sell his mini bike. when the buyer comes, he says "No, I don't want to sell". Is he contracted? Why?
No.
You can't contract with a minor.
Offer revocations are valid when?
When they are RECEIVED.
Offer acceptances are valid when?
The day they are MAILED and POSTMARKED.
Sandra gave an offer on a property with a three day acceptance period. On the sixth day, the seller replies with acceptance. Is Sandra bound to the offer? Why?
No.
Lapse of time occured.
A _______ is a title used for a title that may be clouded.
Quitclaim.
A _________ is what is used to transfer real property.
Grant deed.
What must you serve a tenant is to be evicted?
A notice to pay or quit.
How long does a tenant have to respond to a notice to pay or quit?
3 days.
To assign their entire leasehold property to someone else, what should someone use to show they no longer have interest in their property?
Assignment.
How long can a landlord keep the security deposit after a tenant moves out?
3 weeks.
Vesting is best known as:
How the buyer will take title.
At the close of escrow, the way the funds will be dispursed is:
Proration.
T or F

Leases must be signed by both parties.
False.
Only the Lessor must sign the lease.
A _______ is a title used for a title that may be clouded.
Quitclaim.
A _________ is what is used to transfer real property.
Grant deed.
What must you serve a tenant is to be evicted?
A notice to pay or quit.
How long does a tenant have to respond to a notice to pay or quit?
3 days.
To assign their entire leasehold property to someone else, what should someone use to show they no longer have interest in their property?
Assignment.
How long can a landlord keep the security deposit after a tenant moves out?
3 weeks.
Vesting is best known as:
How the buyer will take title.
At the close of escrow, the way the funds will be dispursed is:
Proration.
T or F

Leases must be signed by both parties.
False.
Only the Lessor must sign the lease.
Agent Dan told perspective buyers that the home was in wonderful condition and the neighborhood was wonderful. When in fact, the home had many flaws, and the neighborhood had much violence and gangs. What agent Dan did was an example of _____. What can be consequences?
Puffing.
Consequences can be fines or license suspension.
A civil wrong such as negligence or libel behavior.
Tort.
Due to the Easton Case, what is the responsibility of the broker regarding disclosure?
To provide a reasonably competent visual inspection of the property.
The case that has helped determine the obligation of disclosure was what famous law suit?
Easton vs. Strassburger
When you authorize someone to perform acts in a listing, you are establishing what type of agency?
Special agency.
Meridians run...
North-South.
Base lines run...
East-West.
Dan and Sandra own a house together as co-owners. If Sandra dies, what happens to the title of the home?
It becomes the sole ownership of Dan.
Property owned by a married couple is most likely what kind of ownership?
Community property with the right of survivorship.
Crystal and Danielle share a beauty shop business. What type of tenancy do they have? If one of them dies, can their heir inherit their share of the property?
Tenancy in partnership.
No, tenancy in partnership cannot be inhertited.
When a property is owned by two or more people, it can be held as what four types of ownership?
1) Joint tenants: Equal ownership
2) Tenancy in Common: Divided Interest
3) Community Property: Married only
4) Tenantcy in Partnership: Business Partners (Cannot be inherited)
Three children inherit their parents' estate in unequal shares. They have what type of estate?
Tenancy in common.
Someone dies and leaves his four children his estate with equal shares. They have what type of estate?
Joint tenancy.
A property that is burdened with legal obligations on the titled is _______.
Encumbered.
What are some types of encumbrances might you see on a title?
1) Loans.
2) Mechanics liens for debt.
3) Judgements against a party.
An agency is normally established between a broker and a principal by:
Expressed contract.
James, a homeowner, led a third party to believe that David, a broker, was his agent, which he was not. This is an example of ______.
Ostensible Agency.
Given gy a developer on the property to ensure proper use and maintenance of the property.
Restrictions.
CC&R.
Conditions, covenants & Restrictions.
Permanent improvements that align on adjacent property owned by another are called _______.
Encroachments.
Common examples of encroachments are _______.
Fences, sheds, shrubs, walk paths, trees...
What type of contract is one that is void if performance is not completed within the specified amount of time?
Executory.
Consideration is...
Anything of value, or that is legally sufficient, given to induce someone to enter into a contract.
When a promise to do something is followed by a promise to do something, you have what type of contract?
Bilateral.
Two parties have a contract where all the terms are outlined clearly. What kind of contract do they have?
Express contract.
Does a contract have to be written?
No. Exceptions:

Real estate, over $750.00, a contract that will exist over 1 year, contracts of debt, and contracts of administration.
There are few exceptions to having a written contract. What are the exceptions?
Real estate
Over $750.00
A contract that will exist over 1 year
Contracts of debt
Contracts of Administration
I have a contract that will take effect once the other party meets a condition... This is called a _______.
Condition precedent.
A fee simple estate that is conditioned on the owner remaining in occupancy is a _______.
Fee simple defeasible.
What are the four units of Joint Tenancy?
Time: Become tenants at the same time.
Title: All on the same deed.
Interest: All have the same share.
Possession: Equal right of possession.
A lease holder possesses what rights to the property?
Use and quiet possession.