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122 Cards in this Set
- Front
- Back
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6 fundamental stages of the development process
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idea, site, fesibility, contract and approvals, improvements, project completion
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adding improvements on the land, rather than to the land, involves
installing exterior electrical service lines construction of a building storm sewer facilities securing zoning changes |
b
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development combines which of the following to produce real estate
enterpreneurial talent capital all of above none of above |
d
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publice provided products, such as highways, utilities and services,..fire police are termed
public products pulbic utilities infastructure structural assets |
c
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joint venture arrangements in which all of the necessary funds are provided by"money" partners are termed:
equity joint ventures fee arrangements cash deals split-equity arrangements |
a
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in mortgage joint venture arrangement, the developer receives:
portion of the mortgage payment portion of mortgage payment as well as proceeds after debt service shares int he proceeds after debt service and the proceeds from sale as compensation a share of the cash flows, some or all the tax benefits, and a development fee |
d
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according to text debt capital providers usually contribute between---- of the financial capital for the development projects:
60-70 70-80 80-90 90-100 |
a
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engineering services generally include
prepared structural drawing advising the developer with respect to the selection of heating and air conditioning systems both neither |
c
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an agent hired by the general contract specifically to complete a plumbing task is called a:
plumbing sub plumbing specialist owner subagent indipendant contractor |
a
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a----generally requires a substantial deposit in exchange for the rights of first refusal to purchase a property, but does not prevent the property owner from selling the property to others
option letter of intent contrat for sale with contingency binder |
d
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technically, a project is deemed substantially complete when:
a letter of completion is signed by developer all subs have been fully compensated a CO is issued project is 95 percent complete |
c
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for most income producing propertie, land development, and construction generally occur in one long step by a single individual or firm referred to as the developer
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t
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in a mortgage joint venture, lenders recieve compensation solely through the periodic payment of the debt service on the loan
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f lenders recieve mortgage payments and and portion of cash flow after debt
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architects do not serves as a development agent with respect to dealing with the general contractor, that is the scope of the construction manager.
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f they serve as technical agent in development
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the initial stage of the development process involves site acquisition
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f development and refinement of idea
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typically, construction managers hire and supervise the subcontractors
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f general contractors
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a purchase option generally allows the developer to purchase property at a set price within a specific period of time, during which the owner cannot sell the property to another buyer
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tt
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the major concerns of the developmet during "the improvement" stages are the timely completion of the project and the quality of construction
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f time and markering..lease or sale
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permanent loan commitments often contain rental-achievement clauses that restrict the amount of funds available to repay construction loans unless preleasing achieves some prescribed level
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t
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a Q ration substantially ore than one, denotes that the likelyhood of developing a profitable project is strong
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t
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the most profitable time to develope occurs when the current vacancy rate of the target market is lower than the long-run vacanct rate and the q ration exceeds one
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t
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4 test to determine whether an item is a fixture
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intent, annexation, adaption, relationship of the parties...test
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physical rights to real estate generally include all of the following, except:
air mineral surface easement |
d
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states which follow the traditional ownership-in-place concept:
recognize the ownership of oil and gas as part of personal property recognize the use of water as controlled by those having prior use recognized the ownership of oil and gas as part of land ownership do not recognize the right of a property owner to sell a propertys air rights |
cc
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which of the following is not a rest of the court used to resolving disputes about fixtures
the annexation test intent test test of expectation adaption test |
c
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an owners legal right to control entry to real property and to use the property as collateral for loans is a part of an owners right of:
disposition quiet enjoyment exclusion possession redemption |
c
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An estate having a duration set by private contract is known as a:
freehold estate non-freehold estate fee simple estate determinable fee estate |
b
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the future interest in an ordinary life estate is called the:
remainder legal life estate, conditional revertor contingent estate |
a
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---exist when rights of possession transfer with oral instead of written agreements
tenancies at will periodic tenancies estates for year joint tenancies |
a
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if one co-owner dies and the owners rights become divided amoung the surviving partners, rather than passes to the heirs of the deceased, the ownership interest:
has adverse possession does not have adverse possession does not have right of survivorship has right of survivorship |
d
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a form of ownership of real estate with fee simple ownership of individual units, and ownership as tenants in common of the ground area is termed:
cooperative condominium conjoint estate townhouse estate |
b
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the right of government to enfore zoning and growth control measures come under the goverenmnt authority known as:
police power taxation eminant domain escheat |
a
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the right of the utility company to use a paticualr part of an individuals property for the installation of their utility lines is an example of an easement appurtenant
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f ex of easement in gross
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if a 20 ft wide easement crosses another property allowing the smits to gain access to their otherwise landlocked property, the smiths have what is terment a servient estate.
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f domain estate..property crossed is serveint estate
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if bill verbally gives Eddie the right to fish in bills pond. the right is termed a lisence
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t
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the physical right of real estate owners theoretically extend to the center of the earth in the shape of an inverted pyramid
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t
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all states recognise that oil and gas are personal business property and cannot be transferred with land ownership transfers
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f some do some do not
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riparian land describes land adjacent to nonnavigable bodies of water, and the landowner rights to use the water constitute their riparioan rights.
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t
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some states hold the first party to use the body of water for some benficial economic purpose obtain a superior rights to the water use
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t
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trade fixture, such as store display counters, mobile partitions, and cabinets used by tenants in a shopping center are fixtures, and therefore deemed to be part of the real estate
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f not
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a party with a determinable fee estate, for exampe, through sale, gift, or will, an interest in real property the lasts for as long as some stipulation remains satisfied
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t
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joint tenancy does not include the right of survivorship
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f it includes
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-----is a concept that refers to a property that have equal market value and those properties are assessed at the same percentage of their market value
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horizontal equity
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----is a concept that refers to property that have different market value and those properties are assessed at the same percentage of their market value
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verticle equity
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which of the following jurisdictions trypically levy real property taxes?
social services area school districts police districts all of the above |
b
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all of the follwing were taxes in common use in the british colonies of north america except:
poll tax import tax property tax consumption tax |
d
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taxes on property, in addition to ad valorem taxes, often used to finance streets, gutters,sewers and sidewalks are termed:
infastructure utility service special assessment |
d
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the right of the owner to pay unpaid taxes plus interest and penalties prior to the public sale of the property and therefore reclaim full title to the property is known asL
statutory redemption assignment equity of redemption commencement |
c
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a disadvantage of the property tax is:
that it can serve to inhibit new construction that is can induce premature development all of above none of above |
c
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when all owners of homes have different values pay property taxes at the same percentage rate...eg 2% of their home value, this is example of:
vertical equity horizontal equity vertical efficency horizontal efficency |
a
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while most countries tax both land and the improvements, some countires such as denmark and argentina tax only the value of the land
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t
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once criticsm of property taxes is that they are not necessarily related to an owners ability to pay
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t
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property taxes are generally viewed as progressice, because lower income housholds may pay lower tax rates than higher income households relative to their perspective incomes
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f regressive its the opposite
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tax capitalization is the term that suggests that increases (and decreases) in property may serve to reduce or increase property value.
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t
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in states where tax certificates are issued, to avoid losing the property the owner must pay back the owner of the tax certificate the amount advanced to pay both the tax and interest
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t
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a property owners effective tax rate is defined as the tax paid or owed divided by the taxable value of the property
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f tax paid or owed divided by market value of property
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in most jursidictions the local tax assessor is hired by the local county commission or board of advisors
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f tax assessor or property appraiser is and elected gov official
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some states allow homeowners to deduct specified amounts for their home assessments before calculation their property taxes bill. the largest of these deductions is generally the disability exemption
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f homestead exemption
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a jurisdiction's tax base is equal to the total value of the jurisdications taxable property
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t
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in the u.s. property taxes can only be levied by county goverentment, all other governemtns cannot raise funds via tax
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f fed gov may not be able to levy tax but state and city can
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5 elements for a valid deed
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name of guantoor and guarantee, description of property, words of converance, statement of consideration deed must be signed, must be accepted, deed must be recorded
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the general term to describe a voluntary transfer of property between private entities is:
private grant public grant private trade public trade |
a
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the common law public registration system used to maintain all legal instruments affecting title to real estate include all of the following except:
grant-grantee books plat and plan books tangible and intangible property books secured personal property books |
c
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evidence of good title can be found by:
a torrens certificat registration at the local county court house a contrace a letter of registration |
a
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the required elements of a valid deed generally include all of the following except:
description of property signature of quantor signature of grantee stateemet of consideration |
c
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from the buyers perspective, the type deed offering the most desirable feature is the :
sheriffs deed all claims deed quitclaim deed general warranty deed |
d
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an instrument used to transfer the rights that a specific party has in the property, not rights in the property itself is the:
special warranty deed all claims deed quiteclaim deed executors deed |
c
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when a boundary of water recedes leaving a dry land ownership rights transfer through what is termed :
acceretion reliction recession riparian |
b
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the oldest method used to describe real estate it the:
metes adn bounds method government rectangular meathod street address meathod recorded plat method |
a
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the southern most section of a township is numbered:
1 6 30 36 |
d
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the south hald of the shouthwest 1/4 of section 12 contains how many acres
10 20 40 80 |
D 604 acres x 1/4 x 1/2
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the most common method for evidencing good title in residential transactions involves the purchase of title insurance policy
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t
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an implied contract involves an agrrement evidenced by acts, conduct, in addition to an expressed written statement
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f does not need written concent
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because pay map contain sufficient detail about the boundaries of each lot, the description of the lot as part of "platted" parcels constitues proper and legal description of real estate
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t
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the principle meridian is the primary line running east and west from which all of the townships lines in a state are described using the government rectangular survey system
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f runs north and south
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In the GRSS gov rect system the range and township lines are located at six mile intervals
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t
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a unilateral contract results from a promise exchange form another promise
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f bilateral
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the transfer of real property must involve consideration on the part of both the grantor and the grantee
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f it could be done through grant or will
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the exchane of property rights through adverse possession grants an indvidiual the right to use anouther's property but does not involve transfer of ownership
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F it does include
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the method of evidencing good title that relies on the development and updating of the property abstract is termed the abstract and attorney's opinion
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t
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an encroachment represents and encumbraces on a title
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t
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which of the following is not a valid rationale for employing a broker?
brokers often have knowledge regarding the price and terms of recent transactions of similar properties brokers allow the seller to avoid costly attorney fees brokers can offer the seller access to the MLS which they would otherwise not have access too all of the above |
b
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a real estate agent typically works in the capacity known as:
special agent universal agent brokerage agent general agent |
a
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which of the following is a responsible of the fiduciarys to the principle
obedience disclosure all of above non of above |
c
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in some states an agent may assist bout the seller and the buyer in completing a transaction, but deos not represent either party. this broker may be termed a:
dual broker split broker transactional broker dual agent |
c
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the body comprised of prominent brokers and nonbrokers that is responsible for monitoring and setting the rules and regulations applied to the brokerage profession in a given state is called the:
real estate commission county commission state board of enforcers professional requlation committee |
a
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the spreading of rumors to homeowners by a broker, that a neighborhood is changing in its racial or socioeconomical composition to secure listing is termed:
blockbusting steering seeding segmenting |
a
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a listing contract between a property owner and a broker that gives the broker the right to market the property but does not preclude the owners from listing the property with other brokers is termed:
net listing open listing agency listing nonbinding listing |
b
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a listing contract that allows the owner to sell a property, however the broker is still owed a commission is generally a:
exclusive agency listing exclusive right to sale listing restrictive agency listing restricted right to sale listing, with commission contingenicies |
b
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one of the primary benefits of the exclusive right of sale listing is that
it provides the seller exposure to the MLS it does not require the seller to compensate the broker int he case of an owner sale it provides for commission rates that are generally less those specified in other listing agreements |
a
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the brokerage commission is usually paid:
when the listing contract is signed when a purchase agreement is signed when the listing contract is signed..half paid... and when the purchase agreement is signed..remaining balance at the time of closing |
d
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in states tha license both brokers and slaes persons, generally each real estate office must have a real estate broker
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t
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in the listing agreement, brokers usually isist on a provision protecting their right to a commission after the listing period expires it the property is sold to someone who leared about the property during the contract period
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t
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a listing contract terminates if the specified period expires, the propery is sold, or if one of the parties abrogates the terms of the contract
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t
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on most residential transactions, the salespersons commission is paid by the seller. If another salesperson identifies the buyer, their commission is generally paid by the buyer
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f it is split with any other salespersong and brokers participating in the sale
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the broker is termed the principle in a seller broker agency relationship created by the listing contract
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f termed agent
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the duties of the principle in a fiduciary relationship are to be open, honest, and fair with the agent
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t
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an agency relationship in which the broker is an agent for both a seller and a buyer is termed transactional agency
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f dual agency
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dual agency is the typical agency relationship that exists between the broker, buyer, and the seller in the purchase of a home
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f broker is special agent for seller...buyer is generally not represented by an agent
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the agency relationship that exists between the salesperson and his or her broker is known as subagency
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t
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to obtain a real estate salesperson license, in most states an individual must have at least one years of experience working in a real estate brokerage firm
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f
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typical buyer expenses are
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stamps an tax on note
mortgage and deed recording fees appraisal, credit report, survey mortage points attorneys fees and title insuracne |
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typical seller expenses are
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stamps on deed
mortgage satisfcation fees sellers attorneys fees brokerage commission |
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the completion of a real estate transaction occurs:
when the sale contract is executed at a meeting called a closing when a listing contract is terminated at the loan approval date |
b
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a contract for same generally creates:
the right of the seller to the obtain reinbursement for any property expenses that have been paid for the period during which the property will be occupied by the buyer the right of the seller to obtain and recored clear title to the property on the date specified the right of the seller to first refusal on the sale of the property the right of the seller to terminate the transaction prior to closing |
a
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if an individual enters into a contract for sale with a minorL
the contract is valid, minor may be legally competent to particiapte in real estate transactions the contract is invalid the contract is valid, but may be declared invalid at the option of the minor non of the above |
c
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if a substantial error has been made, such as a sq footage of the property being way over stated:
the contract is invalid due to lack of consideration the contract is valid, but may be declared invalid at the option of the buyer the contract is invalid due to the lack of mutual assent none of the above |
c
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if one party in a sales contract attempts to perpetrate a fraud on the other party, this is a violation of which element required in a valid contract
consideration lawful intent power of attorney mutual assent |
d
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in addition to the elements required of a vaild contract, real estate sales contract must be;
in writting prepared by an attorney prepared on a HUD approved form signed prior to the day of closing |
a
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Equitable title:
passes from seller to buyer at the time of closing passes from seller to the broker when the listing contract is signed passes from buyer to seller when cash is exchanged in the sales transactions passes from seller to buyer when the contract for sale is signed, but prior to closing |
d
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in calculating prorations for the settlement, the buyer of the property is usually responsible for time in the property beginning on the :
day prior to closing day after day of first day of the month of closing |
b
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at closing the mortgagee's title insurance is typically paid by:
seller buyer lender nobody, the appraisal is generally paid prior to closing |
b
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the real estate settlement procedures act RESPA amoung other things, prohibits the payment of kickbacks to others involved in transactions
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t
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the recording fees associated with a new deed are generally the responsiblity of the seller
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f buyer
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a good faith estimate of the settlement costs must be provided to the borrower by the lender within three business days of loan application
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t
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an escorw agent is another term for the agent responsible for organizing and handeling the loan applicaiton
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f 3rd party they fllfill and follow the contract
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if a buyer defaults on the contract for sale, a seller may retain all of a portion of the earnest-money deposits as liquidated damages
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t
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if a buyer of real estate assign the contract, new buyers, in effect, take their place but not all of their liabilities
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t
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the broker holds the buyers earnest money deposit in the firms bank account, on behalf of the seller until closing
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f in escrow account at seperat firm
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recording of both the mortgage and deed is usually the sellers burden
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f buyers
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legal title passes from seller to buyer at the time of closing
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t
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the street address is generally preferred over a recorded plat decription in describing property in a contract sale.
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F Record plat
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