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104 Cards in this Set

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do you need a real estate agent or an attorney to buy a home?
you dont need a real estate agent but you should at least use an attorney.
duty of a real estate agent
to connect a potential buyer and seller, gets paid by the seller with a percentage of the purchase price (generally 6%)
FSBO
for sale by owner
purchase offer
an offer to buy the house, items that are not real property must be included.
counter offer
in response to an offer
are trees considered real estate?
yes becuase they are attached to the land`
contingencies
conditional clauses, protection for the buyer
common contingencies
1. contingent upon approval of their attorney
2. contingent upon satisfactory inspection of premise within 24hrs of closing
-contingent upon selling present home
-contingent upon satisfactory inspection by engineer
-contingent upon the buyer getting financing
Costs to the seller
-real estate angents fee
-instrument survey
-attorneys fee
-redate of abstract
-transfer tax
cost to the buyer
-purchase price
-taxes escriow
-attorney, own and lenders
-recording fee
-points- interset up front that a vank charges payable at time of closer
points
interest up front that a bank charges. payable at time of closing
equity
value of real estate belonging to the owner
ARM
adjustable rate mortgage. allows buyter to purchase a home at a lower interest rate for the first year
what happens if you dont pay your mortgage?
the bvank/lender will foreclose, and sell the porperty at auction
gift letter
an altnernate way for a young child to buy a home. money is given to them as a downpayment and the bank makes them write a letter saying that it is not a loan or a second mortgage.
title insurance
if there is a problem with the title your covered
why use a will
to pass on our estate to hose we want, reduce disagreements between heirs.
to name a guardian for your children, name the person responsible to carry out the will of the testator
intestate
dying with out a will
testator
the man making a will
testartix
the woman making a will
executor
man named in the will to guard the assests and distribute them according to the intent of the testator/testratrix.
executrix
the females named int will to guard the assetts and distribute them accordin to the intnet of the testator/testratrix
what is necessary for a will to valid?
-testator needs to be at least 18
-2 witnesses (not heirs, young witnesses) signtiture
-must be in writing
do your witnesses need to know what is in your will
no, they are only witnesses to say that you were in good mental state when you made the will
holographic will
a will entirely in the handwriting of the testator, not recognized in NY enless your are a solider at a time of war
are oral wills recognized in NY
no
what court deals with wills
the surrogates court, proven by a preponderance of the evidence.
what is the most common reason to contest a will
un due influence
how do attorneys charge to make a simple will
generally, they use a flat fee
can you disinherit a spouse?
not in NY, your spouse has the option to elect against a will
what happens when a testator dies.
will filed in surrogates court, court will issue letters testamentary to the executor, give excutor power to act as owner of assests pending distribution. letters of administartion
intestate
dying with a will. the state decides how to divide up your assests
letters of administration
issed by surrogates court
how is property divided
if you have a spouse they get ther first $50,000 and 1/2 of the remainer of the estate (if you have no will)
will substitute
gifts during life
jointly held property, trusts life insurance
gifts
trump a will b/c a will is only an effective document upon the persons death
jointly held property
the survivor becomes the sole owner of the property upon the persons death
life insurance
a beneficiary is named, this passes outside of the will
power of attorney
while you are alive, gives another person right to act on your behalf
limited poa
right to preform a specific action
general poa
right to do anything other than write your will, they are supposed to be acting in your best interests (write checks, sell real estate)
what can a person with POA do
write your will, it does not trump a will upon your death
requirements to give somebody POA
you must be compitent
what if you are non compos mentos
you must go to court and have a conservator appointed
living will
states the intent of an individualt reguarding extreme health care measures
health care proxy
gives to another the power to make extreme health care decisions they can decide whether to pull the pulg. you can put restrictions on it
medicaid
long term government assistance for skilled nursing home care. $72000/ year
administrator
when a individual dies intestate, the surrogates court appoints an administator to protect the assest of the estate and to make sure they are distributed in accordance with law. recieves letters of administration from the court which are proof that this person has authroity to act on behalf of the estate.
estate
the collection of property you leave behind when you die
pour over trust
where the benefits of a life insurance policy are poured into his will and distributed according to the provisions set up in his will.
probate
means to formally the will before the surrogates court
publishing a will
the testator declares the will to be his last will and testament in front of the witnesses
testamentary trust
a trust created by will, one that comes into existence upon the death of the decedent and the probate of the will
will signing ceremony
the attorney arranges for the will to be singed in fron of witnesses
Witnesses
at least two must be present upon the signing of the will
a will
a formal document that passes property from one person to another upon the death of the first poerson.
can you disinherit your children?
yes
can i completely disinherit my spouse
no, if nothing is left to the spuose they can elect against the will and claim approximatly 1/3 of the estate.
what should be contained in a will
declares that this is the last will and testament and that he is sound ,mind and understand what he is doing.
how much do wills cost
they are relatively inexpensive- attorneys usually charge a flat fee, about $75-100.
where should i keep my will?
safe deposit box at the bank, safe deposit box at home, at your attorneys office.
will subsititutes
gifts, jointly held property, trusts, life insurance policies.
gifts
asses you five away during your lifetime will not be a part of your estate after you die
jointly held property
surving owners takes the real property, reguardless of whether or not there was a will.
jointly held bank account
goes to the surviving owner upon the others death
trusts
allow you to have asses such as stocks and bonds managed by one person for the benefit of another, the trustee (person managing) can be a person or a bank
spendthrift trusts
the beneficiary can only use the income from the trust and not the body must be kept in tact
educational trusts
documents that allows the trustee to invest and accumulate all the imcome and principal from the trust until the child reachest the age of 18, when at which time the trustee would be required to pay such sums for a college education
totten turst
where a trust is listed by one person for antoher, the other person does not get the trust until the frist person dies
life insurance
a contract between an individual and a life insurace company whereby the compnay agrees to pay a state sum upon the deaht of the individual. the person who buys the contract designates an individual who will recive the money upon their death.
term insurance
protects an indevidual over stated term. life insurance where the rate increases with your increasing age and deterorating health
whole life insurance
provide a means of saving while paying life insurance. the preimums you pay include a percentage of investment money and therefore while paying premiums the contrct holder is accumulating cash value.
power of attorney
gives a person permission to act on antohers behalf. can write checks, buy a car, but cannot write your will
conservatorship
if durable power of attonrye has not been executed, you go to the court for permisission to oversee the assestsof a loved one who cannot care for themself.
living will
statement made by a person prior to his life-threatening disease or injury oultinng under what cirumstances he wishes to be allowed to die without the intervention of life-sustaining procedures and equiptment.
health care proxy
desingates another indiviudal to make critial life support decisions on your behalf if you were to become unable to make such decisions
medicaid
government paid care, available for only nurisng homes
how much do nurisng homes cost and drafted with the assistance
72,000 a year
to get medicaid
you must have used just about all of your own assests, they need to see financial records for the past 3 years
purchase offer
a written contract for the purchase of the property signed by both the buyer and seller, drafted with real estsate agents assistance.
adjustable rate mortgage
have fluctuating rates, homeowners monthly payments vary over time
benefits of ARMS
allows buyer to puchase ahome at a relativily low interst rate, they raise the interst rate as the person starts making more money. generally banks put caps on where they can can only increase it so much per year, and never increase it past a certian number
cons of ARMS
forced to pay a substancially higher mortgage payment in the upcoming years
buyers closing costs
points
legal fees
tax escrow
insuracne escorw
recording fee
sellers closing costs
redate of abstract of title
relators commission
instrument survey
attorneys fees
transfer tax
tax escrow
you must pay the lenders up to one years property tax in advance.
insurance escrow
you must pay one years insurance premium in advanc. fire insurance
who qualifies for a mortgage
good credit history
well paying job
sufficient amount of money down
VA
vetrans administartion. the government has guarenteed the loan. b/c he is a vet if he fails to pay the government will
FHA
federal housing administration. government guarnteed loan, if they dont pay the government will
sonyma
state of new york mortgage authority, loan from a special progrma in NY allowingfirst time buyers the chance to qualify for a low interst loan.
gift letter
you give them money for a down payment and write a letter to the bank saying that it was a gift and not a loan or second mortgage.
what is an assumed mortgage
where you pay the seller the differnce between the selling price and the unpaid balance on the mortgage and contine to pay the mortgage payments every month at their interest rate. no bank attorney needed.
owner financing
with difficult to sell property where the seller holds the mortgage and recives a downpayment from the buyer and steady monthly payments (mortgage) on the house
abstract of title
summary of all the pope who ahve ownerd your property. history of the development and subdiviosn of your property.
title insurance
purchased to protect against future title problems. guarantees the title to your land and they will reimburse you if there is a problem.
PMI
private mortgage insurance. if you buy a home and borrow more that 85% of its value, you buy these. its to reduce the risk by requirng you to pay each moth for insurace protecting the lender against a default on your part.
instrument survey
a mpa drqn of your property showing lot lines, swere easements, fencse, and the location of any strucctures cuh as house, garages, sheds and pools.
zoning laws
determine which parts of town may be used for recreation, commercial or industrial development, may prevent you from maintaing farm animals in residential areas
easements
allows the power comany to enter upon your land and erect poles in certina areas of your yard
unifrom set back requirments
possibly used. requires all houses to be 30' from the raod and no closer than 10ft to its neighbor.
restrictive covents
attempt to limit who you can sell your house to in the future based upon that person race/ ethnic background. no longer enforcable.
advantages of owning a home
you are able to deduct the interst portion of your mortage payments from you federal incom tax.
advantages of condos
no mowing lawn or shoveling snow.