Fundamentals Final

Front 1

do you need a real estate agent or an attorney to buy a home?

Back 1

you dont need a real estate agent but you should at least use an attorney.

Front 2

duty of a real estate agent

Back 2

to connect a potential buyer and seller, gets paid by the seller with a percentage of the purchase price (generally 6%)

Front 3

FSBO

Back 3

for sale by owner

Front 4

purchase offer

Back 4

an offer to buy the house, items that are not real property must be included.

Front 5

counter offer

Back 5

in response to an offer

Front 6

are trees considered real estate?

Back 6

yes becuase they are attached to the land`

Front 7

contingencies

Back 7

conditional clauses, protection for the buyer

Front 8

common contingencies

Back 8

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

Front 9

Costs to the seller

Back 9

-real estate angents fee
-instrument survey
-attorneys fee
-redate of abstract
-transfer tax

Front 10

cost to the buyer

Back 10

-purchase price
-taxes escriow
-attorney, own and lenders
-recording fee
-points- interset up front that a vank charges payable at time of closer

Front 11

points

Back 11

interest up front that a bank charges. payable at time of closing

Front 12

equity

Back 12

value of real estate belonging to the owner

Front 13

ARM

Back 13

adjustable rate mortgage. allows buyter to purchase a home at a lower interest rate for the first year

Front 14

what happens if you dont pay your mortgage?

Back 14

the bvank/lender will foreclose, and sell the porperty at auction

Front 15

gift letter

Back 15

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.

Front 16

title insurance

Back 16

if there is a problem with the title your covered

Front 17

why use a will

Back 17

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

Front 18

intestate

Back 18

dying with out a will

Front 19

testator

Back 19

the man making a will

Front 20

testartix

Back 20

the woman making a will

Front 21

executor

Back 21

man named in the will to guard the assests and distribute them according to the intent of the testator/testratrix.

Front 22

executrix

Back 22

the females named int will to guard the assetts and distribute them accordin to the intnet of the testator/testratrix

Front 23

what is necessary for a will to valid?

Back 23

-testator needs to be at least 18
-2 witnesses (not heirs, young witnesses) signtiture
-must be in writing

Front 24

do your witnesses need to know what is in your will

Back 24

no, they are only witnesses to say that you were in good mental state when you made the will

Front 25

holographic will

Back 25

a will entirely in the handwriting of the testator, not recognized in NY enless your are a solider at a time of war

Front 26

are oral wills recognized in NY

Back 26

no

Front 27

what court deals with wills

Back 27

the surrogates court, proven by a preponderance of the evidence.

Front 28

what is the most common reason to contest a will

Back 28

un due influence

Front 29

how do attorneys charge to make a simple will

Back 29

generally, they use a flat fee

Front 30

can you disinherit a spouse?

Back 30

not in NY, your spouse has the option to elect against a will

Front 31

what happens when a testator dies.

Back 31

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

Front 32

intestate

Back 32

dying with a will. the state decides how to divide up your assests

Front 33

letters of administration

Back 33

issed by surrogates court

Front 34

how is property divided

Back 34

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)

Front 35

will substitute

Back 35

gifts during life
jointly held property, trusts life insurance

Front 36

gifts

Back 36

trump a will b/c a will is only an effective document upon the persons death

Front 37

jointly held property

Back 37

the survivor becomes the sole owner of the property upon the persons death

Front 38

life insurance

Back 38

a beneficiary is named, this passes outside of the will

Front 39

power of attorney

Back 39

while you are alive, gives another person right to act on your behalf

Front 40

limited poa

Back 40

right to preform a specific action

Front 41

general poa

Back 41

right to do anything other than write your will, they are supposed to be acting in your best interests (write checks, sell real estate)

Front 42

what can a person with POA do

Back 42

write your will, it does not trump a will upon your death

Front 43

requirements to give somebody POA

Back 43

you must be compitent

Front 44

what if you are non compos mentos

Back 44

you must go to court and have a conservator appointed

Front 45

living will

Back 45

states the intent of an individualt reguarding extreme health care measures

Front 46

health care proxy

Back 46

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

Front 47

medicaid

Back 47

long term government assistance for skilled nursing home care. $72000/ year

Front 48

administrator

Back 48

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.

Front 49

estate

Back 49

the collection of property you leave behind when you die

Front 50

pour over trust

Back 50

where the benefits of a life insurance policy are poured into his will and distributed according to the provisions set up in his will.

Front 51

probate

Back 51

means to formally the will before the surrogates court

Front 52

publishing a will

Back 52

the testator declares the will to be his last will and testament in front of the witnesses

Front 53

testamentary trust

Back 53

a trust created by will, one that comes into existence upon the death of the decedent and the probate of the will

Front 54

will signing ceremony

Back 54

the attorney arranges for the will to be singed in fron of witnesses

Front 55

Witnesses

Back 55

at least two must be present upon the signing of the will

Front 56

a will

Back 56

a formal document that passes property from one person to another upon the death of the first poerson.

Front 57

can you disinherit your children?

Back 57

yes

Front 58

can i completely disinherit my spouse

Back 58

no, if nothing is left to the spuose they can elect against the will and claim approximatly 1/3 of the estate.

Front 59

what should be contained in a will

Back 59

declares that this is the last will and testament and that he is sound ,mind and understand what he is doing.

Front 60

how much do wills cost

Back 60

they are relatively inexpensive- attorneys usually charge a flat fee, about $75-100.

Front 61

where should i keep my will?

Back 61

safe deposit box at the bank, safe deposit box at home, at your attorneys office.

Front 62

will subsititutes

Back 62

gifts, jointly held property, trusts, life insurance policies.

Front 63

gifts

Back 63

asses you five away during your lifetime will not be a part of your estate after you die

Front 64

jointly held property

Back 64

surving owners takes the real property, reguardless of whether or not there was a will.

Front 65

jointly held bank account

Back 65

goes to the surviving owner upon the others death

Front 66

trusts

Back 66

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

Front 67

spendthrift trusts

Back 67

the beneficiary can only use the income from the trust and not the body must be kept in tact

Front 68

educational trusts

Back 68

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

Front 69

totten turst

Back 69

where a trust is listed by one person for antoher, the other person does not get the trust until the frist person dies

Front 70

life insurance

Back 70

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.

Front 71

term insurance

Back 71

protects an indevidual over stated term. life insurance where the rate increases with your increasing age and deterorating health

Front 72

whole life insurance

Back 72

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.

Front 73

power of attorney

Back 73

gives a person permission to act on antohers behalf. can write checks, buy a car, but cannot write your will

Front 74

conservatorship

Back 74

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.

Front 75

living will

Back 75

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.

Front 76

health care proxy

Back 76

desingates another indiviudal to make critial life support decisions on your behalf if you were to become unable to make such decisions

Front 77

medicaid

Back 77

government paid care, available for only nurisng homes

Front 78

how much do nurisng homes cost and drafted with the assistance

Back 78

72,000 a year

Front 79

to get medicaid

Back 79

you must have used just about all of your own assests, they need to see financial records for the past 3 years

Front 80

purchase offer

Back 80

a written contract for the purchase of the property signed by both the buyer and seller, drafted with real estsate agents assistance.

Front 81

adjustable rate mortgage

Back 81

have fluctuating rates, homeowners monthly payments vary over time

Front 82

benefits of ARMS

Back 82

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

Front 83

cons of ARMS

Back 83

forced to pay a substancially higher mortgage payment in the upcoming years

Front 84

buyers closing costs

Back 84

points
legal fees
tax escrow
insuracne escorw
recording fee

Front 85

sellers closing costs

Back 85

redate of abstract of title
relators commission
instrument survey
attorneys fees
transfer tax

Front 86

tax escrow

Back 86

you must pay the lenders up to one years property tax in advance.

Front 87

insurance escrow

Back 87

you must pay one years insurance premium in advanc. fire insurance

Front 88

who qualifies for a mortgage

Back 88

good credit history
well paying job
sufficient amount of money down

Front 89

VA

Back 89

vetrans administartion. the government has guarenteed the loan. b/c he is a vet if he fails to pay the government will

Front 90

FHA

Back 90

federal housing administration. government guarnteed loan, if they dont pay the government will

Front 91

sonyma

Back 91

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.

Front 92

gift letter

Back 92

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.

Front 93

what is an assumed mortgage

Back 93

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.

Front 94

owner financing

Back 94

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

Front 95

abstract of title

Back 95

summary of all the pope who ahve ownerd your property. history of the development and subdiviosn of your property.

Front 96

title insurance

Back 96

purchased to protect against future title problems. guarantees the title to your land and they will reimburse you if there is a problem.

Front 97

PMI

Back 97

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.

Front 98

instrument survey

Back 98

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.

Front 99

zoning laws

Back 99

determine which parts of town may be used for recreation, commercial or industrial development, may prevent you from maintaing farm animals in residential areas

Front 100

easements

Back 100

allows the power comany to enter upon your land and erect poles in certina areas of your yard

Front 101

unifrom set back requirments

Back 101

possibly used. requires all houses to be 30' from the raod and no closer than 10ft to its neighbor.

Front 102

restrictive covents

Back 102

attempt to limit who you can sell your house to in the future based upon that person race/ ethnic background. no longer enforcable.

Front 103

advantages of owning a home

Back 103

you are able to deduct the interst portion of your mortage payments from you federal incom tax.

Front 104

advantages of condos

Back 104

no mowing lawn or shoveling snow.