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79 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Improvements |
Quality of infrastructure; Structures, landscaping, access, etc.. effect value |
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Long term |
Improvements are permanent and beneficial in use |
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Scarcity |
Supply and demand |
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Intestate |
To die without a will |
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3 legal descriptions of real property |
Lot, block, and tract Metes and bounds Government survey |
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Benchmarks |
Permanent markers set by US national geodetic survey which Indicate elevation above sea level. |
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Datum |
Horizontal plane where elevation is measured. |
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Shelley V. Kraemer |
Racial restrictions are void and unenforceable. |
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Dower |
A wife’s rights to a life estate |
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Encroachment |
Trespassing by placing improvements |
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Laches |
Unreasonable delay in bringing action that works to the detriment of another party. |
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Encumbrance |
To limit something. |
Claim, lien, burden, zoning, or restrictive covenants. |
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CC&R Covenants, conditions, and restrictions |
Limit owners use of property |
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Certificate of occupancy |
Building inspectors certify that the building is fit for occupancy and complies with codes. |
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Immobile |
Land cannot be moved and location is fixed. |
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Curtesy |
A husbands right to a life estate |
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Conservation easement |
Easement right that prohibits development |
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Dominant tenement |
Uses an easement or right of way |
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Servient tenement |
His land “serves” the other. Easement is on his property. |
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Easement in gross |
Easements that do not transfer. |
Signs or utility lines |
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Anticipatory breach of contract |
An action or statement of a party before the performance due date that indicates the party will breach the contract. The other party can bring suit upon this without waiting for an actual breach. |
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Compensatory damages |
Money awarded by the courts to the injured party to make up for the loss suffered. |
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Puffing |
Merely a statement of opinion. It is not generally considered sufficient basis to void a contract, even though the statement influences another party to act to that party’s detriment. |
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Unconscionable contracts |
A contract that is so harsh a court considers it to be shockingly unfair. Court with |
Court will refuse to enforce it. |
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Undue influence |
This exists when a persons actions are the result of an over powering relationship rather than voluntary. |
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Consideration of a valid contract |
The parties must give or promise something of value. “Love and affection” are deemed “good consideration” but not valuable. Need not be valuable but must have worth. |
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Duress |
A Contract entered into under force. May be voided by the injured party. |
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Menace |
A contract entered into under threat or force. May be voided by injured party. |
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Fraud |
Lie. Could be a false statement made by someone who didn’t know if it was true or false. |
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Fiduciary duty |
Care Obedience Accounting Loyalty Disclosure An agent has this duty to the principal. |
COALD |
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Installment sales contract |
This is a sales contract where the seller retains legal title but transfers possession to the purchaser |
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Options in a contract |
This keeps an offer open. In order to have a valid option, optionee must have given optioner (owner) something of value as non refundable consideration. |
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Reasons to void a contract |
Duress or menace, fraud, misrepresentation, undue influence, minor status, unconscionable contracts, puffing |
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Competent parties for a valid contract |
Must have legal and mental capacity. Legal age is 18. Has to own the property to sell. People in jail cannot sell. |
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Required elements of a valid contract |
Competent parties, mutual agreement, consideration, legal purpose |
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Executory contract |
A contract that has yet to be fully performed but is not in default. |
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Executed contract |
A contract that has been fully performed. |
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Agency by estoppel |
Prohibited from denial when caused others to act |
Look up in book again |
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Agency by ratification |
Accepting benefits of action of unauthorized party |
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Capitalization rate |
The rate of return an investor wants on a particular property. |
High risk=high rate Secure investment = lower rate |
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Unilateral contract |
A contract that contains a promise contingent on the performance of an act. |
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Doctrine of equitable conversion or uniform vendor and purchaser risk act |
Provides that: If buyer has not received possession or title and damages occur to property not caused by buyer the risk of loss is on seller. If buyer has received title or possession and damages occur risk of loss is on buyer |
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Contract of adhesion |
Take it or leave it contract |
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Arbitration |
A process where an arbitrator acts as a judge and reaches a binding decision |
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Death of offeror |
Voids the offer automatically |
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Revocation of offer |
Offeror May withdrawal or revoke offer at any time before acceptance |
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Time is of the essence |
A statement that makes prompt performance mandatory |
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Parol evidence rule |
This prohibits the introduction of prior or contemporaneous verbal testimony to modify a written contract that appears complete upon its face |
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Doctrine of estoppel |
Although a verbal agreement isn’t enforceable, a party is prohibited from disavowing a verbal promise after the other party has acted to his detriment based on that promise. |
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Novation |
The substitution of a new contract for an old one. |
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Accord and satisfaction |
The agreement to accept a lesser consideration than that specified in contract |
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Waiver |
A party to a contract can waive a contractual breach by the other party and choose to remain bound by the contract |
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Rescission |
This cancels the contract and restores the parties to the position held before entering into the contract. |
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Restitution |
The return of consideration paid when a contract is rescinded or cancelled. |
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Reformation |
An action to correct a mistake in an agreement or a deed. |
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Injunction |
This is a court order to stop doing a certain activity. May be permanent or temporary. |
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Specific performance |
If an owner enters into a contract to sell real property and later refuses to convey the property, the buyer can request this performance rather than money damages |
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Liquidated damages |
These damages are breach of contract compensation agreed on by the parties at the time of their agreement. |
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Nominal damages |
If a breach doesn’t result in an actual dollar loss, this is awarded. |
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Agency by implication |
An agency that is understood by the words or conduct of the parties although not specifically agreed to. |
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Express agency |
An agency created by written or verbal agreement. |
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Universal agent |
An agent appointed to perform all acts that the principal can delegate lawfully to another. |
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General agent |
an agent who has all the authority necessary to conduct a business or trade |
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General agent |
an agent who has all the authority necessary to conduct a business or trade |
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Special agent |
A real estate broker who has authority only for designated acts. |
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Bilateral contract |
A contract that contains a promise made in exchange for a promise. |
An exclusive right to sell listing is this in which the owner agrees to to pay a commission if the agent is successful and the agent agrees to use best efforts to locate buyer. |
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Implied contract |
A contract that is understood because of actions of the parties although a specific agreement is not stated. |
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Implied contract |
A contract that is understood because of actions of the parties although a specific agreement is not stated. |
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Express contract |
What one has agreed to either verbally or in writing. |
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Implied contract |
A contract that is understood because of actions of the parties although a specific agreement is not stated. |
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Express contract |
What one has agreed to either verbally or in writing. |
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Good faith |
Refers to acting honestly without deception |
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Contract |
An enforceable agreement |
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Contract |
An enforceable agreement |
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Adjusted cost basis |
Original cost and improvements less depreciated. |
$100,000 cost + $10,000 improvements = $110,000 book value |
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Taxpayer relief act of 1997 |
Homeowners were given an advantageous exemption from taxation. |
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Income tax considerations |
Unless subject to an exemption, gains or profits from the sale of property are taxable. While losses from the sale of business or investment property can be used as deductions against other income, a tax loss can not be taken for the sale of a personal residence. |
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Broker price opinion (BPO) |
A brokers estimate of potential selling price. Customarily made for lenders and mortgage companies in foreclosure or refinance situation |
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Comparative market analysis (CMA) |
A real estate agents tool to help the owners set a listing price. |
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