National Real Estate

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Speculative versus custom construction

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Large brokerages

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Brokerage operations for single family homes

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Other areas agents can specialize in

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Timber and mineral rights brokerage

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Business opportunities broker

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Escrow and title insurance

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Appraisal

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Federal courts have exclusive jurisdiction...

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All bankruptcy cases, all civil actions in which the United States is a party, and all cases involving disputes between persons of different states where the amount involved is over $10,000

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National Association of Realtors

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Only a member may call himself a realtor. It does not have the power to take away licenses or determine that a person may or may not engage in the real estate business.

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Cooperatives

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Hint 11

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Estate

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Possessory right or ownership interest in real property

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Freehold vs non freehold estates

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Fee simple estate or fee estate

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Has no restrictions as to inheritance, it may be transferred by will. Such a transfer is referred to as a devise, and those receiving the estate by device are called devisees. With no well, it goes to the heirs and may go on forever.

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Fee simple absolute estate

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The most complete form of ownership or law recognizes. The state cannot be taken from the holder due to the occurrence of any event other than the death of the estate holder without any living heirs. There are no conditions imposed on the estate

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Qualified fee estate

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More defeasible fee estate stuff

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Life estate

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Reversion and estate in remainder

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Estate for years

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Periodic estate or periodic tenancy

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Estate at will

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Estate at sufferance

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Sale-leaseback

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Concurrent ownership - undivided interest

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Each co-owner has a right to possession of the entire property, as each is a part owner of the entire property. Each owner has an interest in the land, but no specific interest in any one part of the land.

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Concurrent ownership - unity of possession

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Tenancy in common

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Exist whenever two or more persons hold an undivided interest in an estate that is passible to their heirs or devisees. Has no right of survivorship

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Right of survivorship

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Exists in a joint tenancy or tenancy by the entirety, means that when one co-owner dies the remaining owners acquire that person's interest.

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Tenancy in common example

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Partition suit - tenancy in common

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Joint tenancy

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4 unities of a joint tenancy

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Joint tenancy example

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Community property and separate property

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Tenancy by the entirety

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Dower and Curtesy

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Syndication

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A group of investors who joined together to make and operate a real estate investment.

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General and limited partnerships

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Corporation definition and advantages

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Corporation disadvantages and S corporations

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LLC

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Joint venture

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Trusts

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Advantages to holding property in a trust

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Real estate investment trust REIT

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Transfer of title to and from the government

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Eminent domain condemnation

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Types of accession

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Adverse possession

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Adverse possession

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Foreclosures

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Essential elements of a deed

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Habendum Clause

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Deed covenants and conditions

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A covenant is a promise by the grantee to either do something or to not do something with regard to the property. A condition is a qualification of the estate being granted for example telling a church they can use your property for the church but then they use it for something else.

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Deed exception and reservation

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An exception leaves out, with holds, or accept a part of the real property described in the deed. For example John conveyed lot for, block 5, excepting the north 10 feet to Tom. A reservation reduces the rights conveyed by creating a new right in favor of the Grand Tour. For example keeping an easement or the mineral rights on the land he is conveying.

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Warranty deed

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Special warranty deed

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Same as the warranty deed, except the covenant against encumbrances can be amended or changed

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Bargain and Sale Deed

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Quitclaim Deed

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Lot and block

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Written as the lot number, block number, the name of the subdivision, and the county and state in which the subdivision is located.

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Air lots

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Consists of air space within specified boundaries above a parcel of land. Often used in condominiums where the unit owner will only air space within the floor, ceiling and walls of his unit. Description includes elevation. Elevation is measured by benchmarks, which are metal discs set in rock throughout the country to precisely measure elevation.

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Riparian vs littoral owners

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Riparian adjoins a river or stream. Littoral adjoins ocean or lake. If waterway is non navigable, owner has title to the center line of the river or stream. If it is navigable, owner has rights to the mean high water mark.

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Government or rectangular survey method

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Meridian runs north south and range lines run parallel 6 miles apart. Bass line runs east west and township lines are 6 miles apart parallel to it. Each Township is divided into 36 sections measuring one mile by one mile and containing 640 acres.

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Math for government survey method

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Each section is 640 acres. So start with 640 and read right to left, dividing by the bottom number in each fraction.

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Easement

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An irrevocable right to use all or a portion of another's land for a specific person. It does not give that person possession, just limited use. Land with an easement on it is called a servient estate or servient tenement.

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Easement in gross

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The right of an individual or company, considered personal property of the easement holder. For example, selling your beachfront property but reserving the right to have access to the beach.

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Easement appurtenant

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Involves at least two parcels of land under separate ownership. The easement is a burden on the servient estate and a benefit or appurtenant to the dominant estate.

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Affirmative and negative easement

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Affirmative is a right to physically use the servient tenement. For example, running a driveway through the neighbors property. In- easement is a right held by the dominant Estate which restricts the use of the servient estate. For example restricting Neighbor ability to grow tall trees which would block your sunlight.

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Ways to create easements

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Hint 69

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Types of encumbrances

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General versus specific lien

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Voluntary or involuntary lien

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Attachment, specific liens

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To protect the creditor the judge may allow the seizure of certain property of the defendant as security. This happens at the start of or during trial. It is not dependent upon a judgment being rendered

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Lid Pendens

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Because the trial may be lengthy, the plaintiff me record this notice. This notice tells any future purchaser that he will be bound by the rulings of this action. Any future judgment resulting from the lawsuit would date back to the date of the recording and would have priority over claims that had constructive notice of the possible judgment.

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Special assessment lien

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Governmental lien placed against real property to pay all or part of the cost of a local improvement that will benefit the property for example water main sidewalk sewers street lights.

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Property tax lien

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Involuntary lean that has priority over all other liens. If property is sold during tax year with no agreement as to who will pay, buyer and seller will each be liable for a prorated amount.

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Mathematics for property tax

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Conditions and covenants

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Zoning

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Zoning ordinance is a restriction on the use of private land. It is not considered to be an encumbrance and does not make title unmarketable. Has large effect on the value of real property

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Types of zoning

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Spot zoning

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Involves a small parcel of land that differs significantly from the surrounding parcels. Like a barber shop and a residential neighborhood.

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Zoning variance

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Special permission to allow a land use that would normally be in violation of current zoning. Like if the required lot size is 10000 square feet and your lot is only 9990 square feet.

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Interstate land sales full disclosure act

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Non exclusive listing

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Broker may recover a commission if he is licensed, has found a buyer, and was the procuring cause of the sale. Broker will not be entitled to commission if another broker was the procuring cause of the sale or if the owner sold the property himself.

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Exclusive agency listing

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Eliminates the competition from other brokers by making the listing broker the seller's exclusive representative. Owner is not liable for a commission if he sells the property himself.

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Exclusive right to sell listing

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Entitles the broker to a commission regardless of who sells the property during the listing. This is the most common.

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Termination of listing agreement

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Listing requirements

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Liquidated damages

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Options

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Options are contracts. It is an agreement granting the exclusive right to buy, sell, or lease property at a given price within a stated period of time. Differs from a purchase and sale agreement in that the option contractually bind the seller to sell at the agreed price and terms but does not require the buyer to complete the purchase. To be valid, the buyer must put down a non-refundable deposit or fee that will be kept by the optionor whether or not the option is exercised. Does not need to be recorded and may be transferred

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MARS Rule

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Purchase and sale agreement

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Types of leases

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Gross lease used in apartments and housing. Landlord pays taxes, property expenses, insurance premiums, etc. Net lease has tenant paying all or some of the property expenses, taxes, insurance premiums. Often used in rental of office space, retail space, and industrial property. Index lease contains an escalator clause allowing rent go up. Percentage lease, used in retail space, allows the lessor a percentage of the gross sales or income.

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Actual vs constructive eviction

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Actual is court in forest, Normal, eviction. Constructive cuz when the landlord deprives the tenant of proper use of the premises. Like letting the property go to crap.

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Lease option vs lease purchase agreement

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Lease with option to purchase gives the tenant the right to buy the property he is leaving at preset turns prior to the end of the lease. If the tenant exercises the option, the landlord must sell. A lease purchase agreement is a contract purchase. Differs from the option in that it is an actual purchase and sale agreement, whereas the other is an option of the renter / buyer.

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Novation

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Innovation releases the original tenant of all liability if the tenant has assigned his interest in the property to a third party. For example if Jim were to assign his lease to Bill, Jim would still be liable for the lease unless unless lessor agreed to a Novation

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Elements of a contract

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Corporate and trustee contracts

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To sign a contract on behalf of a corporation, person must be authorized by the Board of Directors. Authorization of a trustee to contract on behalf of an organization will be contained in the Charter and by laws of the organization. In the case of a general partnership, any partner is presumed to have authority to contract for the partnership.

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Contracts with minors

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Contracts that need to be in writing

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Mutual assent

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Executory vs executed contract

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Full, partial, and substantial performance.

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Contract specifics

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Fiduciary duties of a licensee

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Exemptions from the Fair Housing Act

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Timing and penalties for the Fair Housing Act

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Ginnie Mae

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Freddie Mac

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Mortgage banker vs mortgage broker

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Loan- to -value ratio

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Title 1 and title 2

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Title one includes loans to finance repairs, improvements or alterations of existing residences. Title 2 are those used to buy or build housing.

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Open market operations

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Appraisal approaches

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Forms of title evidence

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Title policies

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Buyers credits and debits

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Seller's credits and debits

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Hint 118

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Closing statements debits and credits

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Formula cheat sheet

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Formula cheat sheet

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Formula cheat sheet

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