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430 Cards in this Set
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Imovable by law
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when the law states that an item of personal property is required to stay with the land. it then becones real property
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Free simple defeasible
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Owner holds title subject to deed restrictions
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3 methods used to describe and locate
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1.lot block and tract system
2.mets and bounds system 3. government survey aka US section and township system |
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Life estates
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Created by deed or will for the life of one or more designated human beings
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Estate and remainder
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Upon death of the life estate holder property can transfer to someone else
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Estate
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Degree, quantity, nature and extent of interest a person has in property.
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The life tenant has the rights of?
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Possession, or income during the life of the designated person
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Real property estates falls into 2 major classifications
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Freehold estate and less than freehold estate
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Tendency in common
1. Who can hold title 2. Ownership interest 3. Upon death 4. Disposition of title |
1. Any two or more persons
2. Any percentage equal or not 3. Probate required 4. Convey interest with out permission |
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Joint tenancy
1. Who can hold title 2.Ownership interest 3. Upon death 4. Disposition of title |
1. Any two or more persons
2. All shares must be equal 3. Right of survivorship no will 4. Convey interest without permission |
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Community property
1. Who can hold title 2. Ownership interest 3. Upon death 4.Disposition of title |
1. Couples
2. Equal shares 3. Special probate, right to will, goes to surviving spouse 4. Need both signatures to convey title |
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A person can hold title and severalty
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As single as unmarried as married as a registered domestic partner as a widow or widower
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The right of survivorship
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If one tenant dies the surviving joint tenant acquired the deceased's interest without a court action
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Limited liability
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Limited partners can lose only their investment and cannot be held liable for partnership debts.
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ownership in severalty
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When a person acquires real property and holds title solely in their name
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Community property
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All property acquired during a valid marriage
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Living trust
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Created during a person's life time to avoid probate
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Concurrent ownership
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When two or more people hold title together
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To create and maintain a valid joint tenancy four unities must exist
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Unity of time
unity of title unity of interest unity of possession |
T
T I P |
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Free simple qualified
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Owner holds, special conditions, limitations or private deed restrictions that limit the use of the property
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Free simple absolute
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Owner holds without any qualifications or limitations (private deed restriction) highest form of interest a person can have
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Less than freehold estate
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Are interest held by tenants who rent or lease property
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Freehold estates
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One's interest as an owner of real property
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Separate property
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Property owned by couples that is not community property or property acquired by couples before marriage or by gift after marriage
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Estate in reversion
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The property is to be returned to the person who gave the life estate to their heirs
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Most important characteristic of joint tenancy is
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right of survivorship
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1 Square acre =
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208.71 feet
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Ownership
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The right of one or more persons to possess and use the thing which is owned to the exclusion of others
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The bundle rights
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To own to possess
to use to enjoy to encumber or borrow money to dispose to exclude others who do not share ownership of property |
7
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US government survey system
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Establishes monuments as point of beginning
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A deed is void or invalid if...
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1. Grantor is incompetent
2.Deed is signed blank 3. Deed is not delivered 4. Deed is forge 5. Grantee does not exist 6. Deed is altered in escrow |
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1 mile=
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5280 feet or 320 rods
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1 rod=
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16 1/2 feet
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Partition action
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co owners sue other co owners
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Acquiring property by transfer
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Private grant
public grant gift public dedication court action |
5
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Limited Partnership
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Real estate syndicate's hold title to property
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Tenancy in partnership characteristics
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1. Partner can only use the property for business
2. Partnership property is not assignable 3. Not subject to attachment or execution 4. Form of survivorship when one partner dies |
4
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5 test of fixtures
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Method of attachment
Adaptability Relationship Intention of parties Agreement between parties |
maria
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Real property
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1. Land
2. That which is affixed to the land 3. That which is appurtenant or incidental to the land 4. That which is and immoveable by law |
4
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the law of intestate sucession
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When a deceased person has no will the law decides to will get the property
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Chattel and chose stand for
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Personal property
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Appurtenant
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Is anything used by the land for it's benefits and goes with the land
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Public dedication
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Property owner transfers land to public
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like schools or playground
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Quit claim deed
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Provide the grantee with the least protection of any deed
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Emblement
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Growing vegtable crops
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riparian rights
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Owners of the land that borders on a river or stream
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escheat
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The reverting of property to the state when heirs cannot be found
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Trade fixtures
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Personal property that a business tenant has attached a real property because of their needs to be used in a trade or business
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cash register counters shelves
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statutory will
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State approved pre printed form requires two witnesses
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Trust deed
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Title is held by trustee as security for a loan
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deed
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Written title to real property is transferred from 1 person to another
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Essentials of a valid deed
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1. In writing
2.Parties correctly described 3. Competent grantor and capable grantee 4.Clear description 5. Granting clause 6. Bearing the signatures of the grantor |
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Grantor
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Person who gives title
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Grantee
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Person who receives title
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3 types of wills
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1. witnessed will
2. holographic will 3. statutory will |
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eminet domain
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power of the state to take land from private ownership by due process of law
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Probate
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Find the creditors of the deceased and pay of those creditors
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Property
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That which is subject of ownership
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Private grant
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When an owner voluntarily gives up their ownership rights to another
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Witness will
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An attorney prepared document signed by the maker and 2 witnesses
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Holographic will
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Written document that is dated and signed by the maker
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Right of appropriation
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State gives permission to a nonriparian to take water from a river
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1 acre =
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43,560 square feet
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A deed is not effective unless
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It is delivered to an accepted by the grantee
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Subdividing
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Dividing a large parcel of land into smaller parcels
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Public grant
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Governmental agency deeds property to an individual
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Tax deed
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An after acquired title provision occurs
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Recording a deed gives
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Constructive notice
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Reasonable air space above the land
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Is considered to be land
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Acknowledgement
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Formal decoration before a duley authorized officer by the person who signed it
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Benchmark
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Fixed or enduring object that is used as an elevation point
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Metal stake or rock
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Grant deed
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The most commonly used instrument for transferring title to real estate
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mets and bounds system
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When the property is not covered by a recorded subdivision map or when the property is irregular in shape
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The executrix of an estate is
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named in the teatator's will
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5 elements of adverse possion
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1. Actual occupation
2. Person using property without permission (hostile) 3. Claim of right or color title4. 4.Continuous & uninterrupted possession for 5 years 5. Payme5 by possessor of all real property taxes |
A
P C C P |
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A will is also called a
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Testament
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Adverse possession
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The process by which title to another's property is acquired without compensation
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Accession
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Acquired title to property that is added to your existing realestate
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Encumbrances
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Is anything that burdens the owner's title with a legal obligation. It is right of interest in the property possessed by someone other than the owner.
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Encumbrances fall into two categories
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nonmoney encumbrances and money encumbrances
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Nonmoney (phsysical) Encumbrances
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Affect the physical condition or use of the property .
examples easement public and private restrictions an encroachment |
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money encumbrances
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Realestate loans or property taxes, where the property is held as security for repayment of a debt
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Easement
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Is a right to enter or use another person's property or a portion thereof, within certain limitations without paying rent or being considered a trespasser.
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the most common type of easement is
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a right-of-way aka easement for ingress and egress
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dominant tenement
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the property that benefits from the ise of the easement
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servient tenement
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the property subject to the easement or the easement is exposed.
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party wall
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a wall dividing ajoining buildings
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easement appurtenant
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stays attached to the property
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easement in gross
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when utility companies but poles in people's land
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5 most common ways easements can be created
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1.deed
2. necessity 3. dedication 4. condemnation 5. prescription |
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easement by deed
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written. must comply with the law. and signed by the owner.
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landlock
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buyer must appeal to court to create an easement.
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easement by dedication
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an owner voluntarily dedicates an easement for publis use
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easement by condemnation
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acquire easement against the land owners will. its for public use. owner will be reimbursed.
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easement by prescription requirements
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1. property hostile to owners wishes
2. using property openly and notoriously 3. right of claim or color title |
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termination of an easement
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1.quick release.
2.quiet title action. 3.when the owner of the dominant tenement becomes the owner of the servient tenement. 4. filing abandonment. 5.nonuse of 5yrs. |
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cc&r
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covenant, conditions. and restrictions
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public restrictions
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government imposes public restrictions
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police power to restrictions
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1. zoning
2. building codes 3. health codes |
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encroachment
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wrongful construction of a building
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lien
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Property is held as security for payment of debt.
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voluntary lien
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a mortgage or deed
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involuntary lien
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law action required. mechanics lien, tax lien, attachments and judgement liens
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general lien
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income tax and judgement liens
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preliminary notice
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mechanics must give written notice to the owner, general contractor, and construction lender. served 20days of the 1st day of labor.
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attachments
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Property is seized pending the outcome of a court action
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judgement
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is a decision of court as a result of a lawsuit.
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writ of execution
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to collect on a judgement
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declared homestead
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1.must be recorded
2.claimant lives on the premises 3. description of the premises |
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six month rule
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owner has 6 months to invest equity into a new home
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an easement is an example of
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encumbrance on real property
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formally declared homestead can be terminated by
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1. untrue statements in homesread declaration
2. selling the property 3. filing an abandonment |
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when a property owner discovers that a neighbor has built a structure on a portion of his or her property, how long does the property owner have to bring an action against the neighbor?
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6 months
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a deed does not have to be recorded to be
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valid
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abstract of judgement
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a plaintiff goes to court to get a judgement to create a lien on defendant's property
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if zoning laws allow a property to be used in such a mannwe that is prohibited by a lawful deed restriction the
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deed restriction should prevail
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once property recorded an abstract of judgement is good for
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10 years
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landlord must file a nonresponsibility within
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10 days
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a judgement is considered to be a
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general lien
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commingling
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broker mixes the funds of their principal with the broker's own money.
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conversion
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misappropriating and using the client's money
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subagent
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real estate agent can assign some of their duties to other licensed agents
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misappropriation
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the failure of a broker or a salesperson to disclose a material fact about the property.
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Dual Agency
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Broker represents both the seller and buyer in the same transaction with both parties consent.
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false promise
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false statement about what the promiser is going to do in the future.
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trust funds
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Money or other items of value that an agent receives on behalf of a principal in a real estate transaction
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single agency
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broker acts as an agent to only the seller or only the buyer
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buyers agent
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to find property for the buyer
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sellers agent
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sellers ask the broker to find a buyer for the sellers property
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fiduciary relationship
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is loyal, obedient, and confidential, for the principals best interest
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agencies are created in 3 ways
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agreement, ratification, and estoppel
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general agency
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broad powers to act on behalf of the principal
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special agency
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limited or well-defined powers real estate agent are special
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agent
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represents a principal by making a deal with a third party for the principals benefits
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independent contractor
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an individual is hired to accomplish results with little or no supervision
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recovery refunds
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public can tecover money when there are uncollectable court judgements obtained against a real estate licensee max per person $50k max for multiple claims is $250k
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secret profit
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broker who already has a higher offer from another buyer, makes a low offer
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broker receives a deposit has 3 days to
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1. give the deposit to the principal
2. put deposit in escrow 3. put the deposit in a trust fund account |
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termination of real estate
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1. completion of agency agreement
2. expiration of time 3. death of the principal or agent 4. destruction of the property 5. unilateral action of the agent or the principal. |
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cooperating agents
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find a buyer for the other brokers and act as the agent of the buyer
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commingling
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broker mixed the funds of his or her principal with the broker's own money.
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cooperating agents
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find a buyer for the other brokers and act as the agent of the buyer.
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transfer disclosure statement
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detail facts about the property.
inspected by real estate agent must be signed by all |
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major mandatory disclosures
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1. disclosure regarding real estate agency relationship
2. Real Estate transfer disclosure statement 3. Residential Environmental and Earthquake hazards disclosures 4. Natural hazard disclosure statement 5. common interest development general info 6. seller financing addendum and disclosure |
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seller financing addendum
and disclosure statement |
if a sale involves a seller carry loan then a statement clearly outling all the financing terms must be signed by the buyer, seller and real estate agent.
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option
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is a contract between the owner of a property and potential purchaser
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these contracts must be in writing to be enforceable
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1. agreement with 1year
2. special promise 3. agreement made on consideration of marriage 4.an agreement to lease real estate 5. an agreement to employ an agent 6. an agreement to not perform during a persons lifetime 7. agreement to pay in debtness by mortgage |
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executory contract
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some act of the contract remains to be completed by 1 or more of the parties.
real estate listing. seller promises to pay a commission if the broker finds a buyer. not complete until the broker finds a buyrt5 |
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valid contract
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is one that is binding and enforceable. you can sue.
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void contract
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is an agreement that the courts will not consider a contract. contract has no legal effect. (like a minor)
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emancipated minors
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minors who are married, serving in the military, or whose parents have been relieved of legal responsibility
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voidable contract
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one of the parties has the option of proceeding with the contract or calling it off (force or fraud)
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unenforceable contract
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is valid but can not be sued upon
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5 essential elements of a real estate contract
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1. capable parties
2. mutual consent 3. sufficient consideration 4. lawful object 5. must be in writing |
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Parties capable of contracting
(essential elements of a real estate contract) |
2 or more parties with the legal capacity to contract (not minors or incompetent people)
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mutual consent
(essential elements of a real estate contract ) |
both agree to terms on the contract
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lawful object
(essential elements of a real estate contract ) |
something that is required to be done or not be done.
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sufficent consideration
(essential elements of a real estate contract) |
return of one promise for another
or something of value exchanged for something of value |
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the statue of fraud
(essential elements of a real estate contract) |
contract must be in writing to be enforceable in court. Any changes must be in writing dated and initialed
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full performance discharge of contracts
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Parties accomplish what they set out to do in the contract
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breach of contract
(discharge of contracts) |
at least one of the parties did not fulfill its part of the agreement
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in case of a breach contract the injured party has 2 remedies
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1. sue for damages
2. sue for specific performance |
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statue of limitations
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begin the lawsuit within a legally prescribed time period
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4 statue of limitations
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1. 3 years for removal of encroachment
2. 4 yeats to bring action on an unwritten contract 3. five years for recovery of title to property 4. 90 days after filing a mechanic's lien |
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other ways to discharge a contract 7
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1. part performance
2. substantial performance 3. impossibility of performance 4. agreement between parties 5 . release 6. operations of law 7. acceptance of a breach of contract |
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provisions on contracts of real estate 7
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1. date of agreement
2. names & addresses 3. description of property 4. the consideration 5. other provisions that may be required or requested 6. mortgage terms & conditions 7. date & place for closing contract |
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bilateral contract
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a promise from one person is made in exchange for a promise from another person (most real estate contracts)
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expressed contract
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the parties have agreed to perform an act or acts verbally or under a written agreement
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implied contract
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the parties have not formally agreed verbal or through a written contract to perform an act. they agree to perform through their actions (building a fence)
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executed contract
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all parties have performed and fulfilled their obligations.
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types of authorization to sell 4
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1. open listing
2. exclusive agency listing 3. exclusive authorization and right to sell listing 4. net listing |
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listing agreement
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authorization to sell. a contract between a broker and seller
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counter offer
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by the seller automatically doss away with the buyers original offer. offer made by the seller to the buyer.
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multiple listing service
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group of brokers who are with a real estate association
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common interest development general info
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if a buyer is making a purchase in a planned unit development pud the buyer must be given information about the covenant, conditions and restrictions cc&r and the amount of homeowners dues.
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real estate transfer disclosure statement
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before closing the sales the seller must give the buyer a statement regarding the condition. the agent must do a physical inspection. seller, buyer and agent must sign the form.
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disclosure regarding real estate agency relationship
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agent & principal agree on the agent representing them in the sales transaction
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open listing
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is geiven to more tgen one agent. the agent who finds a buyer first gets the sale. one commission is paid.
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exclusive agency listing
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1. one brokers name is on the contract
2. more then one brojer can share on commission 3. seller may sell the property themselves without paying a broker commission 4. definite termination date |
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exclusive authorization and right to sell listing
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the most common form of listing, the broker gets comission no matter who sales the property.
can split commission. has a definite termination date |
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real estate purchase agreement aka deposit receipt
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contract between the buyer and seller that outtlines the terms for the purchase of real property. receipt for the buyers deposit
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natural hazard disclosure statement
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1. special flood area
2. an area of potential flooding if a dam fails 3. a very high severity area 4. a wildland forest fire risk area 5. an earthquake fault zone 6. seismic hazard zone |
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residential environmental & earthquake hazards disclosures
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the buyer & seller sign a disclosure form about various earthquake issues. like a unreinforced masonry and other building construction items.
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unilateral contract
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one party making a promise without the promise of the other party. like $100 reward for a lost wallet.
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a listing is a
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bilateral contract
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within a prescribed time periof an inexcusable delay might limit a lawsuit according to the
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doctrine of laches
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when a buyer purchases subject to the existing loan
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the buyer agrees to take over the payments but not be responsible for the debt.
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exempt from the real property loan law 4
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1. regulated institution lenders (bank)
2.purchase money transaction 3. loan by first trust deed principal os $30k or more 4. loan secured by junior trust deed when principal amount is $20k or more |
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right of reinstatement
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5 days beforr the date of sale. The trustor (borrower) can reinstate the loan by paying all delinquent installments, foreclosure cost and trustee fees.
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deficiency judgement
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lender sues a borrower after a foreclosure when the proceeds from a foreclosure where not enough to cover the loan
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installment sales contract
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is an agreement between the seller, (vendor) and the buyer (vendee) where the buyer is given possession and use of the property and makes regular payments to the seller
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truth in lending law
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requires a lender to quote the cost of borrowing as an annual percentage rate
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hypothecation
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to give something as security for a loan without giving up possession
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acceleration clause
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the lender can say all sums are immediately sue if the borrower has not made mortgage payments, property tax payments or destroyed the property
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a deed of trust
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3 party instrument consisting of a borrower (trustor) a lender (beneficiary) and a neutral third party (trustee). trustee keeps title as security until paid off
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notice of sale
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is filed if the borrower fails to reinstate the loan.
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final sale
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anyone can bid on the property through public auction. all bidd must be in cash
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loan modification
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borrowers may try to renegotiate their loan terms with the lender
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alienation (due -on-sale) clause
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the lender has the right to say all money is now due if the borrower gives the title to a new owner.
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prepayment penalty clause
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allows a lender to charge the borrower a penalty if the loan is paid before the scheduled due date. No prepayment penalty on FHA insured, VA guranteed or CalVet home loans
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mortgage loan broker law
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mortgage brokers to give a loan disclosure statement to all borrowers before they become obligated for the loan. it shows closinf cost, loan expenses and commissions.
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installment note
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most common type of note. payments included both principal and interest
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straight note
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interest only note
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leverage
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the use of borrowed funds to obtain an asset
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balloon payment
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smaller monthly payments but there is a lump sum due at the end
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balloon payment is prohibited if the term of the loan is for
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6 years or less and the loan is secured by the dwelling place of the borrower.
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amortized loan
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a loan that is completely paid off, interest and principal by regular payments
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negative amortized
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loan payment does not cver even the monthly interest
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wraparound mortgage or deed of trust aka all inclusive trust deed
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fiancing device used to increase the lenders yield upon the sale of real property to make it easier for the buyer.
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real estate settlement procedure act RESPA
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requires a lender to give a borrower a good faith estimate of closing cost and requires a hud-1 closing statement
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regulation z
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requires a lender to give the bo5 a disclosure statement showing a complete breakdown of all loan costs. they have 3 days to cancel
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subordination clause
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new construction loan to be put as a first deed of trust
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junior deed of trust
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when buyer does not have enough money to cover the cost of the sale. second loan by the seller.
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notice of default
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record a notice of default in the county where the property is located. has a 90 day grace period.
|
|
|
adjustable rate loan
|
monthly payments may decrease or increase over the life of the loan
|
|
|
fixed interest rate
|
the interest rate is set and does not change
|
|
|
Assume A sellers existing loan
|
the buyer agrees to take over payments and become personally responsible for the debts
|
|
|
What government program has the lowest interest ?
|
Cal-vet
|
|
|
the VA requires how much of a down payment
|
zero
|
|
|
During a Cal -vet loan title to real property usually rest with
|
The Department of Veteran Affairs
|
|
|
A secondary mortgage market is
|
when existing real estate loans are bought and sold
|
|
|
Fannie Mae refers to
|
The federal National Mortgage Association
|
|
|
A loan that meet Fannie Mae and Freddie Mac guidelines is known as
|
Conforming loan
|
|
|
When a seller carries back a junior loan this is best described as
|
Secondary financing
|
|
|
calHFA
|
Is a program for first time home buyers
|
|
|
negligent misrepresentation occurs when
|
a broker should have known that a statement about a material fact was false
|
|
|
failure to specify definite termination date in a listing contract is grounds for
|
suspension or removal of real estate licenses.
|
|
|
when a person dies testate they die with
|
a will. real property would be transferred by devise
|
|
|
fee simple defasible
|
possibility of reverter/right of entry
|
|
|
if state law permits, the unities of time, title interest, posession and person would be created when
|
someone buys real estate
|
|
|
land contract aka installment sale
|
seller agrees to finance a loan for the buyer
|
|
|
habendum clause
|
is found in a deed. the seller is transferring their rights to the new owner.
|
|
|
the RESPA real estate settlement procedure act
|
prohibits a kick back from service providers. like a gift from a lender for a referral
|
|
|
value in use (utility value)
|
the value that you place in a property that has been in your family for 100 years.
|
|
|
market value
|
the highest price for property that would sell in the open market
|
|
|
depreciation
|
a loss in value
|
|
|
physical deterioration is a loss in value caused by
|
wear and tear
lack of maintenance damage by termites weather conditions |
|
|
functional obsolescence is a loss in value caused by
|
unpopular floor plan
lack of updated modern appliances poor or unpopular architectural design |
|
|
economic obsolescence is a loss in value resulting from
|
zoning
misplaced improvements (a house next to a all night gas station) drop in demand for real estate |
|
|
appreciation
|
is an increase in value by inflation or supply and demand
|
|
|
for most home buyers the value they want to know is
|
market value
|
|
|
the best use of land is that which produces the greatest net return to the land
|
principle of highest and best use
|
|
|
the most comprehensive type of appraisal report is
|
summary (short- form) report
|
|
|
for existing residential homes the best appraisal approach is
|
the market approach
|
|
|
the most comprehensive appraisal skill level is
|
certified general
|
|
|
When evaluating a 20 year old home the appraiser assigns it an age of only 10 years because of the extreme good care taken by the owner this is an example of
|
Effective age
|
|
|
the higher the capitalization rate
|
the lower the value
|
|
|
a change in zoning is what type of force that influences values
|
political
|
|
|
the value of one home tends to be influenced by the price of acquiring equally desirable homes is called
|
substitution
|
|
|
the most difficult depreciation to cure is
|
economic
|
|
|
4 elements for property to have value
|
transferability
scarcity utility demand |
|
|
the final step in the appraisal process bringing together the market, cost and income is
|
correlation aka reconciliation
|
|
|
estate for years
|
a leasehold that continues for a fixed time span. can be a day, a week, a month a year or years.
|
|
|
estate from period to period (periodic tenancy)
|
a leasehold that continues from period to period. no specified termination date
|
|
|
Estate at will
|
a lease can be terminated without notice at any time by the lessor or lessee. has no termination date
|
|
|
estate at sufferance
|
a leasehold where a lesse retains possession of the property after the lease has expired.
|
|
|
requirements for a valid lease
|
1. be in writing
2. contain the names of the lessor & lessee 3. contain a description of the property. 4. show the rent amount 5. state the length of the lease 6. signed by the lessor 7. lessor and lesse legally able to contract 8. have renewal provisions in boldface type. |
|
|
an assignment of a lease
|
tranfers the entire leasehold interest to another party including the responsibility of making payments to the landlord
|
|
|
sublease
|
transfers only a part of the term of the lesse to a sublessee. the original lessee is is still liable to the landlord
|
|
|
sandwich lease
|
a leasehold interest that lies between the primary leaseand the operating lease.
|
|
|
lease wiyh option to buy
|
Property is rented for a period of time, at the end of which the lessee is given the right to purchase.
|
|
|
gross lease
|
the tenant pays a flat rental amount, and the landlord is responsible for taxes, maintenance and insurance
|
|
|
triple net lease (tim)
|
the tenant pays rent, landlord's property taxes, hazard insurance and maintenance.
|
|
|
net lease
|
commercial property is leased on a long term basis
|
|
|
percentage lease
|
rent is based on the percentage of the tenants gross sales.
|
|
|
if yhe tenant has occupied the property for over a year the landlord can terminate a month to month lease by giving the tenant a
|
60 day notice.
|
|
|
if the tenant has occupied the property for less then one year the landlord can give the tenant a
|
30 day notice
|
|
|
unlawful detainer action
|
process of legally removing a tenant from possession.
30 notice landlord files unlawful detainer action writ of possession by sheriff the sheriff sends the tenant an eviction notice |
|
|
seller closing cost
|
transfer tax
prepayment penalty structural pest control real estate brokerage comission discount points recording & notary fees title & ecrow fees natural hazard disclosure fees |
|
|
nonrecurring closing cost
|
loan orgination fee
appraisal fee credit report fee structural pest control inspection fee tax service fee recording fees notary fees assumption fee title escrow fee |
|
|
escrow
|
a neutral third party acts as the closing agent for the buyer and seller
|
|
|
legal requirements for valid escrow
|
1. a binding contract
2. conditional delivery of transfer instru2 to a neutral 3rd party |
|
|
interpleader action
|
a court action forcing the principals in escrow to figure out their differences
|
|
|
services performed by an escrow company 7
|
1. prepares escrows
2. request pay off for sellers loans 3. collects pest control reports 4. collects fire insurance policy 5. balance accounting details 6. collects money required to close 7. verifies all documents are recorded |
|
|
uniform settlement statement
|
itemizes all closing charges.
borrower must see this form one day before the close of escrow |
|
|
RESPA real estate settlement procedure act
|
-A federal law that applies when a person purchases an owner occupied residence.
-requires a lender to give the borrower a special info booklet and good faith estimate of closing cost. -prohibits kickbacks -$10k fine or 1 year in jail |
|
|
title insurance companies services
|
1. search and gather public records for legal title of real estate
2. examine and interpret the title records 3. insure an owner/lender against financial loss from unreported defects in the title |
|
|
the standard policy (types of title insurance policies)
CITA California Land Title Association |
most used
1.standard owners policy-insures the amount of purchase 2. standard lender policy- insure the lender for the loan amount 3. standard joint protection policy- co-insures the owner & lender |
|
|
a history of all title transfers of a particular parcel of land is called
|
chain of title
|
|
|
termination of lease
|
expiration or mutual consent
|
|
|
mobile home park tenants
|
gets a 60 day notice
|
|
|
covered by title insurance policies
|
forged deeds
liens of records incompetent owners of records |
|
|
extended coverage policy
(types of title insurance policy) ALTA American Land Title Association |
a physical inspection of the property and insures against certain unrecorded title risks
|
|
|
the title records in the office of the title company are called
|
plant
|
|
|
the most extensive title assurance is
|
insurance of title
|
|
|
recurring closing cost
|
hazard insurance
tax proration tax & insurance reserved aka impound account or trust account intetest due before the 1st loan payment |
|
|
CPM stands for
|
certified property manager
|
|
|
an unfurnished apt deposit amount is up to
|
two months rent
|
|
|
a deposit for a furnished apt amount is up to
|
3 months rent
|
|
|
the law that states that certain leases must be in writing to be enforceable is the
|
statue of frauds
|
|
|
most unlawful detainer actions are heard in
|
superior court
|
|
|
in an apt complex an insite resident manager is required if there are
|
16 or more units
|
|
|
government use of police controls
|
rent controls
building codes zoning ordinance |
|
|
the subdicision map act is administered by
|
local officials
|
|
|
before a developer can sell a lot in a new cali subdivision containing 5 or more lots the prospective buyer must receive a copy of
|
public report
|
|
|
A developer from Nevada wishes to sell 300 Los Vegas lots to California residents and open sales offices in Los Angeles and San Francisco. The developer need not conform to the
|
subdivision map act
|
|
|
The right of the consumer within a specified time to rescind a land purchase contract and receive a full refund applies to new
|
Land projects of 50 lots or more
|
|
|
A development where a person individually owns his or her living unit but has an undivided interest with the other owners in the land and common area is a
|
condominium
|
|
|
the selling of 1/2500 share in a northern California recreational ranch is an example of a
|
undivided interest
|
|
|
The law that prevents agents from discriminating when providing real estate services is the
|
unruh Civil Rights Act
|
|
|
The law that makes it illegal for real estate lenders to redline a neighborhood is the
|
Housing financial Discrimination Act
|
|
|
Which of the following is the best example of a common interest development
|
Condominium
|
|
|
recorded cc&r and an homeowners association are mandatory for a
|
condominium
|
|
|
a deviation from the established zone requirements is called
|
a variance
|
|
|
if private deed restrictions allow some use that is prohibited by zoning the rule is that
|
zoning prevails
|
|
|
a simple lit split is governed by the
|
subdivision map act
|
|
|
the illegal act of directing potential buyers and tenants to a certain neighborhood is called
|
steering
|
|
|
if a real estate commissioner issues a preliminary publix report for a subdivision a developer is allowed to
|
reserve the lots
|
|
|
the power of eminent domain requires government agencies to
|
pay just compensation for the private property
|
|
|
prior to issuing a building permit involving a minor project with little if any environmental damage the local government may require a
|
negative impact report
|
|
|
The establishment of a community general plan requires three major steps
|
1 resource analysis
2 formulation of community goals 3 implementation of the plan |
|
|
a condominium is sometimes called
|
a vertical subdivision
|
|
|
townhouse
|
is a type of architecture
|
|
|
disclosure requirements when a unit in an existing common interest development is offered
|
1. a copy of the cc&r
2. a written statement of any known pending special assessments or claims. 3. a current statemrnt showing whether the seller has any unpaid assesments or dues. |
|
|
the buyer of a time share has 7 days to
|
rescind the purchase contract under the California business and professional code for ant reason snd receive a full refund.
|
|
|
state housing laws
|
establish minimum housing standards for the entire state.
are enforced by local building inspectors |
|
|
contractors license law
|
contractor must be licensed
|
|
|
NIR negative impact report (minor)
EIR environmental impact report (major) |
the purpose of both repots is to address what impact the real estate construction will have on the social, economic, physical and biological environment.
|
|
|
housing financial discrimination act (holden act)
|
state law that prohibits institutions from engaging in discriminatory loan practices.
|
|
|
redlining
|
a loan practice under which a lender refuses to grant a housing loan in certain geographic areas based on neighborhood trends, regardless of the merits of the borrower or of the individual home.
|
|
|
planned unit development
|
a person owns their living unit and lot. no one lives in the airspace above or below
|
|
|
stock cooperative
|
coporation formed for the purpose of holding title to a building
|
|
|
Community apartments
|
a group of people jointly purchase an undivided interest in an entire apartment complex
|
|
|
3 most powerful tools for implementation of the plan
|
1. zoning
2. subdivision 3. environmental regulations |
|
|
uhruh civil rights act
|
can not discriminate when providing business products and services
|
|
|
steering
|
unlawful directing of a prospective buyer or tenant to certain neighborhoods or the refusal to tell about the availability of housing in another neighborhood
|
|
|
zone
|
an area defined on a map by a boundary line. within the land use regulations are the same.
|
|
|
rezoning
|
the process of changing labd use regulations from one zone to another
|
|
|
variance
|
a deviation from the zoning regulations for a particular parcel
|
|
|
conditional use permit
|
a requirement imposed by government in connection with the approval of a permit or a division of property
|
|
|
development plan
|
plans showing the details of thr proposed development. bormally includes plot plan, architectural rendering and statistical information relative to acreage, building area, units and parking
|
|
|
standard subdivision
|
a division of property into lots that does not include common areas
|
|
|
minor subdivision or lot split
|
a division of residential property into two, three or four parcels
|
|
|
major subdivision
|
a division of residential property into five or more parcels
|
|
|
appeal
|
the right to request review of a negative planning commission decision
|
|
|
the establishment of a community general plan requires 3 steps
|
1. reaource analysis
2. formulation of community goals 3. implementation of the plan |
|
|
inclusionary zoning
|
is an ordinance that requires a vuilder of new residential housing to set aside a designated number of units for law and moderate income people
|
|
|
national environmental policy act
|
requires an environmental impact report all projects using federal funding
|
|
|
clean air act
|
reqyiree business to meet air quality standards
|
|
|
subdivision map act
|
covers the division of land into two or more lots for the purpose of sale, lease or financing whether now or in the future
|
|
|
planning commission
|
an appointed body of citi charges with the responsibility of advising the elected board of supervisors or city council memebers in matters of land use.
|
|
|
planning department
|
city or county staff employees whi lend professional and technical assistance to electes officials and citizens
|
|
|
public report
|
allows, the subdivider to take reservations for purchase pending the issuance of the first sale of each lot in a new subdivision
|
|
|
land project
|
the e purchaser of the lot is allowee to rescind or cancel the purchase contract and receive a full refund up to 14 days aftrt signing the purchase agreement
|
|
|
police power
|
constitutional right of government yo regulate private activity to promote the general health, welfare and safety of society.
like zoning, building & health codes, setback requirements, environmental regulations and rent controls |
|
|
eminet domain
|
allows the government to acquire totle to rpivate land for public use in exchange fr the payment of just compensation
|
|
|
interstate land sales full disclosure act
|
regulates land sales between two or more states
|
|
|
common interest development
CID |
are condominium, planned unit development, stock cooperatives and community apartments are examples of intensified owner occupied developments
|
|
|
condominium
|
a system of individual fee ownership of units in a multifamily structure combined with joint ownership of common areas of the structure and the land. also known as vertical subdivision
|
|
|
california fair housing act
rumford act |
state law that forbids discrimination in the sale, rental, lease or financing of practically all types of housing
|
|
|
mobile home park
|
as any area or tract of land here one one or more mobile jome lots are rented or leased.
|
|
|
new mobile homes can not be sold by real estate licensees
|
only through mobile home dealers licensed by the department of housing and community development
|
|
|
a real estate licensee can sell used mobile homes
|
but they have to be already registered with the state and on a lot.
|
|
|
the mobile home must be capable of being transported
|
hitch must be attached to a unit.
axles must be attached to the frame |
|
|
the licensee is responsible for the mobile home to
|
have completion and delivery of title to the buyer
|
|
|
mobile home notification of transfer of ownership must be made
|
within 10 days of the sale date
|
|
|
mobile home all fees must be paid to the state within
|
10 days of the sale date
|
|
|
mobile home owners must pay an
|
in lieu tax similar to regular property taxes paid by homeowners
|
|
|
if the mobile home was manufacturered after june 15, 1976
|
it must have a department of housing and urban development HUD tag, guaranteeing its proper construction
|
|
|
converting a mobile home to real property 4
|
1. must have a building permit
2. must be on a permanent foundation 3. must have a certificate of occupancy 4. a document stating that the mobil home os attached to a permanent foundation must be recorded |
|
|
modular homes
|
are not considered vehicles.
they become real estate upon placement |
|
|
risk
|
is the possibility that you wil lose all or part of your initial investment
|
|
|
liquidity
|
the ability to convert your investment to cash quickly
|
|
|
management
|
the cost and time involved in overseeing the investment
|
|
|
tax aspects
|
the income tax laws and their impact on the investment
|
|
|
appreciation
|
an increase in value when demand exceeds supply
|
|
|
the ownership of a mobile home is transferred by means of a
|
certificate of ownership
|
|
|
all fees relating to licensing or transferring of tiyle to mobile homes must be paid to
|
the department of housing and community development
|
|
|
all things being equal the least cost per square foot should be found in a
|
two story home
|
|
|
mobility
|
the ability to move to another location quickly
|
|
|
architectural styles
new england colonial |
a box shaped two story house with a center entrance, wood siding and shutters
|
|
|
architectural styles
Georgian colonial |
a brick two story house with a center entrance and a hip roof
|
|
|
architectural styles
southern colonial |
a two story house with pillars and shutters
|
|
|
architectural styles
dutch colonial |
a two story house with a gambrel roof
|
|
|
architectural styles
california bungalow |
a small one story house with a low pitched roof
|
|
|
architectural styles
california ranch |
a one story house with a low pitched roof and a sprawling floor plan
|
|
|
architectural styles
spanish |
a house with a tile roof and arches
|
|
|
architectural styles
cape cod |
a house with a second story above the eaves, a high pitched roof, wood siding, and a large chimney
|
|
|
architectural styles
french provincial |
a formal house with a high pitched slate hip roof. a stone or brick exterior , and shutters
|
|
|
architectural styles
Victorian |
a house with ornate gables
|
|
|
architectural styles
English Elizabeth |
a house with a high pitched slate roof, rough half timbers and a plaster exterior.
|
|
|
architectural styles
monterey |
a two story house with a balcony
|
|
|
architectural styles
french norman |
a house with a tower as the main entrance and a steep roof.
|
|
|
architectural styles
English Tudors |
a house with a high pitched slate roof, a cathedral like entrance, and a masonry exterior
|
|
|
architectural styles
Mediterranean or Italian |
a house with a tile roof, a stucco exterior and rounded decorative work above the windows
|
|
|
architectural styles
contemporary |
a house of modern design
|
|
|
hip roof
|
all sides slope to ease
|
|
|
gable roof
|
roof with shed dormer
|
|
|
pyamid roof
|
all sides slope from one point .
no ridge line |
|
|
gambrel roof
|
found on barns and Dutch colonial homes
|
|
|
mansard roof
|
French style
|
|
|
once a mobile home is converted to real property, title to the mobile home is tranferred using
|
a deed
|
|
|
in terms of complication the most difficult tenant to evict is one located in a
|
mobile home park
|
|
|
ridge board
|
the highest point in a standard frame house
|
|
|
footing
|
base or bottom of a foundation
|
|
|
rafters
|
boards designed to support the roof loads
|
|
|
header or lintel is
|
a horizontal board over a door or window
|
|
|
the ultimate responsibility for thr management of an entire condominium building after all the individual units have been sold rests with the
|
owners association
|
|
|
second homes
|
are usually purchased to enjoy not as investments
|
|
|
for income tax purposes an owner of a second home who does not rent out the property is allowed
|
to deduct property taxes and loan interest
|
|
|
one advantage of owning versus renting a home is
|
income tax deductions
|
|
|
national association of realtors
|
is broken down to state associations. provide services to state members
|
|
|
the California association of realtors
CAR |
1. unit
2. high standards 3. safeguard the land buying public 4. legislation for the benefit & protection of real estate 5. cooperate in the economic growth and development of the state |
|
|
real estate commissioner is appointed by the
|
governor and serves as the chief executive of the CalBRE
|
|
|
restricted license
|
allows licensee to continue to work but under limited conditions
|
|
|
suspended license
|
a temporary loss of license
|
|
|
revoked license
|
a loss of license
|
|
|
an appraiser license is issued by
|
the office of real estate appraisers
|
|
|
business opportunity
|
the sale or lease of a buiness including stock, trade fixtues, trade name, and goodwill.
|
|
|
a real estate license agrnt is also allowed to sell
|
business opportunities
|
|
|
balance sheet
|
shows the financial position of the business as of a given date
|
|
|
assets
|
things of value owned by business
|
|
|
liabilities
|
unpaid debts and expenses of the business
|
|
|
net worth
|
owners equity the difference between the assets and liabilities
|
|
|
profit and loss statement
|
shows the profit and loss of the business during a specific time period
|
|
|
bulk sales rules apply when
|
a business is sold that involves inventory
|
|
|
a bulk transfer
|
the transfer of a major portion of inventory other thsn a sale to customers
|
|
|
the term REALTOR can only be used by
|
national association of REALTORS
|
|
|
after getting your real estate license you have 4 years to take 15hour CalBRE courses which are
|
1. ethics
2. agency 3. fair housing 4. trust fund handling 5. risk management |
|
|
after the 1st renewal of a salespersons license every 4 years after that you must
|
take 45 hours of approved continuing education
|
|
|
the maximum fine for an unlicensed individual who receives an illegal commission is
|
$20k
|
|
|
under bulk sales rules the buyer must give public notice at lease
|
12 days before transfer takes place
|
|
|
goodwill
|
expectation of continued patronage
|
|
|
freehold estate
|
one's interest as an owner of real property. freehold estates can be subdivided into fee estates and life estates
|
|
|
under freehold estates is
|
1A. estates in fee. 1B. Life Estates
2A. free simple 2B. Estates in absolute & fee remainder simple qualified. reversion reserva |
|
|
under less than freehold estate
(tenant) |
estate for years
estate from period to period estate at will estate at sufferance |
|
|
under joint tenancy what does unity of time, title, interest and posession mean?
|
1.unity of time- the owners got their interests at the same time
2.unity of title- must come into title on the same document. ( example A&B are joint tenants. B sells his interest to C. A&C are Tenants in common.) 3. unity of interest-all owners have equal interest. 4. unuty of possession- equal rights of possession. no owner can tell another owner not to use the property |
|
|
a coporation is not allowed to hold totle as a joint tenant
|
because in theory a coporation never dies
|
|
|
real estate syndicates usually hold property as
|
limited partnership
|
|
|
freehold estate are sometimes called
|
inheritance
|
|