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83 Cards in this Set
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The term used when someone is persuaded to sell their property because they were told that minorities are moving into the neighborhood is? |
B. Blockbusting - coaxing owners to sell based on minority person moving in the area, may be true/false, but this is illegal. Steering - funneling buyers to particular areas to keep the makeup of that area the same or intentionally changing it (also illegal) |
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This 1968 court case upheld the Civil Rights Act of 1866. D. Gideon vs Wainwright |
C. Jones vs Mayer Civil Rights Act 1866 prohibits racial bias in buying, renting, selling, holding, etc. Also, there are no exemptions to this Act and no limits to punitive damages due if found guidlty of this. Roe vs Wade, Plessy vs. Ferguson, Gideon vs Wainwright - all well known landmark court cases, however, none are directly related to any real estate. (just a distracter to the question) |
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The dollar amount required to reconstruct a building or other improvements, which have the same or equivalent utility as the original is called: A. Direct Cost D. Replacement Cost |
D. Replacement Cost Replacement Cost is defined as the cost to create a building or other improvements which have the same utility as the original. This is different from - Reproduction cost, which is defined as the dollar amount required to construct an exact duplicate of the subject improvements, at current prices. |
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Alex recently purchased and installed a brand new gas stove for his home. Now that Alex has decided to sell his home, which of the following would be consiered the best description? A. The Gas Stove is considered a Trade Fixture B. The Gas Stove is considered a non-Annexed Item C. The Gas Stove is considered a Fixture D. The Gas Stove is considered a Chattel |
D. The Gas Stove is considered a Chattel Chattel - an item of personal property; typically considered tangible and movable. Trade Fixture - an item installed by a tenant to carry on his or her "trade." An example of this would be shelving for storage of merchandise, etc.,. This type of installed item would remain personal property. Trade fixtures would be removed prior to the end of their lease. |
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An Act that requires lenders to inform borrowers of the true costs of botaining a loan is called? A. Truth In Lending Act C. Fair Housing Act D. Financial Institutions Reform, Recovery & Enforcement Act (FIRREA) |
A. Truth in Lending Act - aka Regulation Z is meant to protect consumers in credit transactions by requiring lenders to disclose to borrowers the true costs obtaining a loan. The following must be disclosed: 1 - Finance charge 2 - Annual percentage Rate (APR) 3 - Amount Financed 4 - Total Payments FIRREA was passed in 1989 in response to the savings and loan crisis. FIRREA changed savings & loan regulations to prevent future problems & provided funding to failed banks to prevent further loses. |
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When tenant Kainalu opened a sandwich shop in the mall, Kainalu installed counters & special freezers. When Kainalu closes the shop, can Kainalu remove those counters & freezers? A. Yes, if Kainalu repairs any damage caused by their removal C. Depends on Kainalus' lease agreement D. No, because tenants give up their right of possession. |
A. Yes, if Kainalu repairs any damages caused by their removal Trade fixtures - installed for use in a trade or business, may be removed by tenant prior to the expiration of the lease if the premises are returned to their original condition. |
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What type of contract would show the intentions of the parties by their actions? A. An bilateral contract B. An executory contract C. An expressed contract D. An implied contract |
D. An implied contract. implied contract - when an agreement between parties is merely demonstracted by their acts & conduct, rather than exchanged promises. bilateral - meaning that both parties have made promises in exchange to the other party & therefore the "meeting of the minds" are willing participants in the contract. The obvious demostration of this is that one party agrees to buy & the other party agrees to sell. Executory - contract between a debtor and another party under which both sides still have imporatant performance remaining.EXAMPLE: Real estate leases (tenant has to pay rent/landlord has to provide space) Express - when parties specifically agree on terms & show their intentions in words (either written or oral) |
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Vincent has negotiated a 2 year lease that will increase in rent from year to year. What type of lease did Vincent sign? A. Graduated lease B. Gross lease D. Percentage lease |
A. Graduated lease - agreement simply means that rent changes are predetermined for future dates. EXAMPLE: they may agree that rent starts at $1,000/month for the first year, then rent will increase to $1,200/month the second year, etc., Gross lease - the most common type of lease. When a lessee does not pay any costs of ownership & pays a given amount of money perperiod. Sometimes called a fixed, straight or flat lease. Net lease - is a lease agreement where the tenant pays some or all of the costs of building ownership in addition to their rent.EXAMPLE: additional expenses include Comma Area Maintenance (CAM) fees, taxes, insurance, etc.,. Percentage lease - most commonly found in the retail business. This lease has a base rent which is fixed & an excess rent, this is most commonly based on the percentage of the sales. |
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The Cam Building collects for the following income; residentials rents = $3,720/mo.; commercial = $24,650 annually; parking fee revenue = $2,355 annually. A recent appriasal stated the property value to be $585,500. If Cam experiences 6% vacancy & 33% expenses, what is the cap rate? B. 7.5% C. 7.7% D. 7.8% |
C. 7.7% R=I/V or Rate = Income / Valuein order to determin the CAP rate, we need to first determine the Net Operating Income (we already have the value of $585,500)total or potential gross income (minus) vacancy and collection loss (equals) effective gross income (or EGI)(minus) expenses (equals) net operating income (the figure we need to find the CAP rate)residential rents = $3,720/mo x 12 mo = $44,640$44,640 (res.rents) + $24,650 (yr comm.rents) + $2,355 (yr parking) = $71,645 total gross income - also known as 'potential gross income' PGI. Take the PGI to determine the Effective Gross Income (EGI)71,645 x .06 (or 65 vacancy rate) = $4,299 so the EGI = $71,645 - $4,299 = $67,346 (round this number)$67,346 x .33 (or 33% expenses) = $22,224 so the NOI = $67,346 - $22,224 = $45,122 (the NOI). IRV formula - Rate = Income / Value, $45,122 / $585,500 = .077 or 7.7% |
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What should an agent do if they find mold in their clients home? A. Treat affected areas with bleach. B. Inform the owner, recommend remediation & disclosure to potential buyer. C. Notify the EPA immediately & disclose to potential buyer. D. The agent has no obligation. It is the responsibility of the seller to disclose any material facts that affect the value or desirability of the property. |
B. Inform the owner, recommend remediation & disclosure to potential buyer. |
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Offering large print or audio format information on a listing would be in compliance with: A. Americans with Disabilities Act. B. Federal Fair Housing law C. Regulation Z D. RESPA |
A. Americans with Disabilities Act. ADA - established in 1992. This was created to protect from discrimination & provide access to public & commercial buildings. Also, it should be noted that new Multi-family homes (4 or more units) must be made accessible. Federal Fair Housing - law does include the protected class of handicapped, however, the specific measures are contained within the ADA. Regulation Z - of the 'Truth In Lending Act' is administered by the FTC (Federal Trade Commission). This was created to protect consumers in credit RESPA - covers consumer protection with regard to closing costs & procedures. |
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During the process of a purchase of a property, title insurance may be purchased. Which of the following is most correct? A. Title insurance will protect the buyer from all defects in the title. B. Title insurance will protect the buyer from some defects in the title C. Title insurance protects the seller against liability D. Title insurance will ensure a marketable title. |
B. Title insurance will protect the buyer from some defects in the title |
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When one spouse solely owns a property, the ownership is: A. Not eligible for homestead declaration. B. Owned in severalty. C. Owned in trust. D. Tenancy by the entities. |
B. Owned in severalty - sole ownership and, other than forming a corporation, spouses can only hold property in common through some form of joint ownership. Tenancy by the entireties - ownership between a married couple. Both spouses have equal undivided interest in property. Upon the death of one member of the married couple, the survivor becomes the sole owner of the property (severalty) Homestead rights - refer to its protection from judgements for unsecured debts or forced sale by creditors of the homestead owner. Additionally, there may be restrictions on who may receive property in wills & trusts based upon relation to the homestead owner. Trust - is a legal arrangement |
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Lani & Keoni wrote up a lease agreement that would give Lani (the tenant) the right to extend the lease when it expires. Although Lani is not obligated to extedn the lease, if the otpion is exercised, the payment amount & the length of the extension is predetermined in the option language. Which of the following terms refers to the provision described in this scenario. A. Extended Option B. Graduated Payment C. Renewal Option D. Sub-Lease |
C. Renewal Option - term refers to a provision in the lease that gives the right (not obligation) to the tenant to extend the lease for a given amount of time, at a specified rent amount stated in the option. Sublease - one party leases from an owner of a property. The lessee would then lease to a third party granting use of the leased property for the payment of rent for a period of time no longer than the original lease. EXAMPLE - you lease a property from the owner and then you sublease/sublet to a third party. This put you (original tenant) "sandwiched" between the owner and the third party (tenant), acting as lessee & lessor at the same time. As a result, you will pay & collect rent on the same property. |
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Rights that are extended to non-owners for ingress & egress over a property for things such as a roads & utilities is called: A. An Easement B. An Encroachment C. An Encumbrance D. Riparian Rights |
A. An Easement - right that extends to non-owners for ingress and egress over a property (such as a roads & utilities) Encroachment - a permanent object from one property extends over onto another property illegally. Encumbrance - anything that affects the title of a property or limits its use, such as mortgages, judgments, leases, easements, liens, or restrictions. Riparian Rights - associated with being located directly next to a flowing water source, such as a river or stream. |
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Keoni purchased a property that abuts the Waimea River. Although the Waimea River is NOT navigable, Keoni considers it his right to use the water. Which of the following statements, is true? A. Keoni is referring to Riparian Rights. B. Keoni is referring to the Bundle of Rights. C. Keoni is referring to his Rights of Reliction. D. Keoni is incorrect concerning his water rights. |
A. Keoni is referring to Riparian Rights - rights associated with being located directly next to a flowing water source, such as a river or stream. The fact that john's property abuts a body of water that is NOT navigable, he owns the land beneath the water to the exact center of the waterway. If the body of water was navigable by commercial boat traffic, then typically Keoni would NOT own the land under the water, the government would hold title. Do not confuse this wish Littoral Rights, which included rights that belong to owners of land adjacent to non-flowing lakes, seas, and oceans. |
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Aulani recently purchased & installed a bypass Humidifier for his home furnace. Now that he has decided to sell his home, the Bypass Humidifier would most likely be characterized as: A. Chattel B. Fixture C. Personal item D. Trade Fixture |
B. Fixture - an item that was once a personal property item (purchased at store, etc.) & installed in the property in a manner that it is regarded as part of the real estate. Chattel - an item of personal property; typically considered tangible & movable. Trade fixture - an item installed by a tenant to carry on his or her "trade". An example of this would be shelving for storage of merchandise, etc. This type of installed item would remain personal property. Trade fixtures would be removed prior to the end of their lease. |
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Assuming Kini has many liens on his property, which of the follow is most likely to be the superior lien. A. IRS lien B. Mechanics lien C. Real Estate Taxes D. Voluntary lien |
C. Real Estate Taxes Superior lien - issued by a Federal Court; generally the Federal court issues superior lien rights to the lender during the course of post bankruptcy petition financing. If approved, the Federal court will place the lender in front of all other creditors with teh intent to benefits all the creditors. Taxing authorities hold a superior lien against all taxable property to enforce the payment of their taxes. A superior lien has the first right to satisfaction of its lien. |
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Kai & Nalu own a Mill together as tenants in the entireties. Kai falls down & breaks his crown & Nalu becomes ill after learning that Kai's will names his son, Kaipo, as the inheritor of the Mill. Which of the following statements is correct? A. Kaipo owns the property in severalty. B. Kaipo & Nalu now both own the property as tenants in common. C. Kaipo has no legal claim to the property. D. Kaipo & Nalu now both own the property as tenants by the entireties. |
C. Kaipo has no legal claim to the property. Tenancy by the entireties is a form of ownership between a married couples. This is an ownership type where both individuals jointly own the entire estate. Both spouses has an equal undivided interest in the property (severalty). Tenancy in common is defined as an estate owned by two or more persons, each of whom has an equal undivided interest. Unlike Joint tenancy & tenancy by the entireties, there is no right of survivorship; meaning without the survivorship rights, the surviving join tenant can NOT acquire the interest of the deceased joint tenant automatically. |
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Kamuela and Kalani both own a property, each of them having an equal right to possession of the property. Kalani, upon her death, has decided to leave her rights to the property to a living heir. Kamuela, wanted full ownership of the property upon the death of Kalani, has decided to seek legal action. Kamuela's attorney, however, has informed him that given the type of property ownership, a successful legal proceeding is unlikely. The type of ownership described is likely: A. Joint Tenancy B. Tenancy by the entireties. C. Tenancy in common. D. Tenancy in severalty. |
C. Tenancy in common. Tenancy in common is defined as an estate owned by two or more persons, each of whom has an equal undivided interest. Unlike Joint tenancy & tenancy by the entireties, there is no right of survivorship; meaning without the survivorship rights, the surviving join tenant can NOT acquire the interest of the deceased joint tenant automatically. Tenancy by the entireties is a form of ownership between a married couples. This is an ownership type where both individuals jointly own the entire estate. Both spouses has an equal undivided interest in the property (severalty). Joint Tenancy - form of ownership between two or more persons, of whom have an undivided interest in the property. Unlike Tenancy in Common, owners in a Joint Tenancy have the right of survivorship. The right of suvivorship means that if one of the joint tenant dies, the remaining (surviving) tenants automatically take title to the deceased tenant's interest in the property. If, for example, there are 5 joint tenants (each owning a 20% share) and one dies, the remaining four tenants will then own a 25% share in the property. |
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The Try-N-Save construction company has just formally informed Wailana that legal action is pending against the property.. Which answer best describes the notice that Wailana has received? A. Lis Pendens B. Ex Parte C. Executory Contract D. Situs |
A. Lis Pendens - Latin phrase "suit pending" or "action pending". A noticethat a legal suit has been filed against specific lands; an action that may affect the title to the land. Ex Parte - means "one side only", in a legal setting this means that ony one side is represented inthe matter &n the other party, in most cases,is without notice. Executory Contract - not fully performed (something remains to be completed by one or more of the parties). situs - physical location of a property. It should be noted that in Real Estate terminology it also has references to buyers preference to one area over another - remember this. |
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The term used when an interest rate charged is in excess of the maximum rate allowed by law. A. Hedging B. Puffing C. Subordination D. Usury |
D. Usury - is charging an interest rate higher than state law allows Hedging - financial technique used in order to reduce (and even eliminated) financial risk. In this case the term was merely used as a distractor. Puffing - best defines as non-factual or extravagant statements and opinions made to enhance the perceived desirability of a property. There is a fine line between legal puffing and illegal misrepresentation. Subordination - is when something is lower in rank & importance. Such as the case with a subbordination clause which makes other debts in collateral real estate secondary to the claim of the mortage lender. |
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Which of the following scenarios would the Federal anti-discriminatory laws have jurisdiction? A. A private club for members only B. A single family home being sold by a broker C. Executive office buildings D. Industrial property rentals. |
B. A single family home being sold by a broker |
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What principle holds that the value of a particular components is measured as the amount its absence would detract from the value of the whole? A. Conformity B. Competition C. Contribution D. Substitution |
C. Contribution - principle that claims that an item is only worth what it contributes in value to the whole. Conformity - proper melding of the uniqueness of the individual property wit the character of the neighborhood and the desirability of the market. Substitution - principle that a knowledgeable buyer will pay no more for one item than for a comparatively equivalent substitute. |
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Mr. Kamae purchases two properties, lot A and lob B. Lot A enjoyed a dominant tenement over lot B. Now that Mr. Kamae owns both lots, what occurs? A. The easement is terminated. B. The easement is terminated through an abrogation agreement C. The easement remains D. The easement remains by virtue of the doctrine of merger. |
A. The easement is terminated. Easement - right to use the land of another for a specific purpose. Its use is limited to that purpose. There are two types of easements. 1 - Appurtenant easement - benefits land. used only by that land which benefits from the easement called 'dominant tenement'. The land, which is burdened by the easement is called, 'servient tenement'. If dominant tenement is divided into more than one parcel, each parcel has the right to use the easement. On the other hand, if the owner of the dominant tenement acquired adjoining property, the adjoining property cannot use the easement because the easement is not appurtenant to it. When an appurtenant easement is created, it "runs with the land." This means that the easement continues to benefit the dominant tenement regardless of whether it is specifically included in subsequent deeds. It cannot be severed from the dominant tenement. 2 - easement in gross - does not benefit land. Benefits person or business, such as utility company. Therefore the easement hat runs with the land would be called easement appurtenant. An abrogation agreement is when the owners of both the dominant and servient tenements agree to destroy (ie. Terminate) the easement. The doctrine of merger actually states that the easement would be terminated because one owner has come into possession of both properties, therefore nullifying the need for the easement. |
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The term used when pledging your home as security for a mortgage without giving up possession is: A. Hypothecation B. Mortgage release C. Second Mortgage D. Subordination. |
A. Hypothecation - pledging an asset as collateral for a loan. |
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Keola has a pond and has allowed his neighbor, Maka, to fish on it all year, free of any charge. Maka received a(n): A. easement appurtenant B. easement by necessity C. easement by prescription D. license. |
D. license. whereas easements grants access, a license grants use. A license would not grant any interest in the land, rather it simply allows the use of the land. A license can usually be terminated more easily than an easement and is never carried over after the death of a party or after the sale of the property. |
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Details on the closing must be reported by the person conducting the closing on IRS form: A. 1099 B. 1099 MISC C. 1099 R D. 1099 S |
D. 1099 S - when a person is conducting the closing, they must report details on IRS form 1099S. IRS also requires brokers to report commissions paid to salespersons on IRS form 1099 MISC. |
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The term used when someone is persuaded to sell their property because they have been told that minorities are moving into the neighborhood is: A. Blockbusting B. Redlining C. Steering D. Testing |
A. Blockbusting - coaxing owners to sell based on minority persons moving in the area, may be true/false, but it is illegal. Redlining - denying/restricting loans based on certain communities (also illegal) Steering - funneling buyers to particular areas to keep the makeup of that area the same or intentionally changing it (also illegal) |
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Of the following deeds, which one contains no implied or expressed warranties? A. Bargain & sales deed B. General warranty deed C. Special warranty deed D. Quitclaim deed |
D. Quitclaim deed - provides the grantee the least amount of protection of any deed. There are no express or implied covenants or warranties Bargain & sale deed - provides the grantee with an implication that the grantor actually does hold title & possession. no other express warranties exist. Special Warranty Deed - warrants that the grantor does hold title & the property was unencumbered during the time the grantor held title (except as otherwise noted in the deed). A Warranty Deed (sometimes called a General Warranty Deed) offers the most protection to the buyer. The warranty deed contains 5 covenants (or warrants). There are 1 - covenant of seisin - the grantor owns the property & has the right to convey title to it. (seisin means possession). 2 - covenant against encumbrances - the grantor warrants that the property is free from any liens or encumbrances (except thos specifically stated on the deed). 3 - covenant of quiet enjoyment - the grantor warrants that the grantee's title will defend against third parties who may want to sue for superior title. 4 - covenant of further assurance - the grantor warrants that they will perform any further acts necessary to correct any defect in the title or deed instrument. 5 - covenant of warranty forever - the grantor promises to compensate the grantee for any loss due to the failure of the title. |
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Use the following information of the "governmental survey method" to find the acreage of the parcel. NE 1/4 of NW 1/4 of section 8 A. 4 acres B. 16 acres C. 40 acres D. 160 acres |
C. 40 acres A governmental survey might look something like this: NE 1/4 of NW 1/4 of section 8 You could figure out the acreage of the property by multiplying the denominators ie. 4 x 4 = 16 Then divide 640 (acres in 1 section) by 16 = 40 acres Governmental survey - uses townships (6 miles x 6 miles) there are 36 sections in one township & 640 acres in each section. 1 acre = 43,560 ft (aka remember 7-11, 0) |
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which of the following would not be considered a patent defect? A. EIFS water penetration B. Large cracks in the ceiling C. Leaky roof D. Sagging floors |
A. EIFS water penetration patent defect is a defect in the property that is obvious & easily visible. The opposite of this would be a latent defect, which would be a defect that is not easily visible or detectable during a normal inspection. EIFS (Exterior Insulation Finish System) is a form of synthetic stucco & is very susceptible to moisture getting trapped behind the material, which causes rot. This is difficult to detect. |
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__________ gives evidence of a debt & also states the repayment terms. A. Deed B. Mortgage C. Note D. Title |
C. Note (A.K.A. promissory note) is a written agreement that gives evidence of a debt & also states the repayment terms. Deed - is like a bill of sale, it transfer the Title. Being that it is like a bill of sale, it can only be used once. A new deed is required every time the Title is transferred. Mortgage - method of using property (real or personal) as security for a loan. This is why the homeowner/borrower is the mortgagor, because they are giving the mortgage & the lender receives it (mortgage) Remember your "ees" & "ors" --- "ors " = gives & "ees" = receives Title - formal legal document that servers as evidence of ownership. |
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a lot, 130' x 150', which has a 20ft setback on all sides, is how many acres (rounded)? A. .23 acres B. .33 acres C. .45 acres D. .59 acres |
C. .45 acres A setback refers to the distance between the nearest point of a structure & the property line. This information (ie. the setback dimensions) are a distractor & are NOT to be included in your calculations. This question already gives you the lot size & is merely asking you how many acres are included in the lot. The calculation for this is simple: The area of a rectangle is equal to the Width x Depth of the lot. therefore, 130 x 150 = 19,500 Sq Ft There are 43,560 Sq Ft is in acre, therefore 19,500 / 43,560 = .44 acres (rounded .45) |
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Which of the following would a property manager take into consideration to determine the net operating income of a property? A. Debt services. B. Post tax cash flow. C. Taxes D. Vacancy & rent loss. |
D. Vacancy & rent loss. |
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A seller has just personal sold their property without the aid of his broker. However the seller was under an exclusive-right-to-sell agreement with this broker. What does the seller owe the broker in regards to commission? A. A partial commission B. The full brokers listing costs reimbursed C. The full commission D. Nothing |
C. The full commission Exclusive right to sell listing would mean that we are dating exclusively (in the agency sense), and only I will have the right to sell your property. Therefore, even if you sell it without me, it was my right to sell it & I should still be allowed my commission. Understanding, or course, that the owner always has the right to sell their own property; if the owner agreed to this type of listing, then the broker is still entitled to be paid. The commission is received at the time of closing. |
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Generally, depreciation applies to: A. The building only B. The land & building C. The land only D. The net income of the building |
A. The building only Land is not depreciated; it is to be assumed that the value of the land will recover at the end of the economic life of the building Depreciation refers to a GENERAL loss in value, as opposed to "functional obsolescence" or physical deterioration," which refers to a specific type of depreciation or losses in value. |
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Keoni has just secured a mortgage from his local bank for $100,000. Regulation Z requires his bank to disclose: A. Any and all penalties to the bank if they do not comply with the law B. The annual percentage rate C. The closing costs D. The right to recind |
B. The annual percentage rate The Truth in Lending Act - aka Regulation Z is meant to protect consumers in credit transactions by requiring lenders to disclose to borrowers the true costs obtaining a loan. The following must be disclosed: 1 - Finance charge 2 - Annual percentage Rate (APR) 3 - Amount Financed 4 - Total Payments |
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In what year did ADA (Americans with Disabilities Act) become law? A. 1968 B. 1974 C. 1988 D. 1992 |
D. 1992 ADA was passed in 1990 into loaw 1992 created to protectfrom discrimination & provide access to public & commerical buidlings. Also is should be noted that new Multi-family homes (4 or more units) must be made accessible The other dates are distracters that are familiar dates to you 1968 - Court case of Jones vs Mayer 1974 - Housing & community Development Act 1988 - Fair Housing Amendments Act |
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A mortgage on a property is equal to 85% of the sales price, with a mortgage interest of 7%. If the first month's interest payment amounts to $520.62, what was the sales price? A. $6,507.88 B. $89,251 C. $105,000 D. $111,563 |
C. $105,000 Being that we only need to consider the first month's interest payment, there is no need to use a compound interest table. $520.62 x 12 months = $6,247.44 (amount of interest owed after 1 year at 7% with no payment made). $6,247.44 / .07 = $89,249.14 (amount of mortgage) $89,249.14 / .85 = $105,000 (answer) |
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The recording of a deed that provides everyone with a notice that a valid conveyance has occurred is called: A. Deed recordation B. Special warranty deed C. Warranty deed D. Quitclaim deed |
A. Deed recordation - recording of the deed provides everyone with notice that a valid conveyance has occurred. Special Warranty Deeds are warranties by the grantor & the grantor's heirs to defend against all claims caused by the actions or omissions of the grantor or grantor's heirs. When any interest possessed by the grantor is conveyed to the grantee, without any warranties this is called "Quitclaim deed", thus the grantor quits his claim the property. A deed used to convey real property which contains warranties of title & therefore the grantor agrees to defend the premises against the lawful claims of third persons is called a warranty deed. it is used commonly in to other states (but not in California where it has been replaced by the grant deed). |
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In real estate, a mortgagor would be the one who: A. holds the trust deed B. Signs the note C. Sold the mortgage D. Sold the property |
B. Signs the note The borrower who signs the note is considered the mortgagor In real estate terms, the "mortgage" is the entity that holds the loan, not the borrower. |
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The "Status of Frauds" states that in order for Dave's real estate contract to be valid, it must be: A. An express contract B. Free from misrepresentation & fraud C. In writing D. Of a legal or lawful object |
C. In writing Statute of Frauds states that certain real estate contracts must be in writing in order to be enforceable. This would include lease for more than one year, the sale of real estate, an option (to purchase), etc.,. |
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Mr. Takahashi received a 80/20 loan on a property, at 7.9% interest. His monthly interest on the first payment amounts to $640. What is the appraised value of the home? A. $76,800 B. $81,013 C. $97,215 D. $121,519 |
D. $121,519 640 x 12 = $7,680 in annual interest payments. $7,680 / .079 = $97,215 $97,215 is only 80% of the appraised value $97,215 / .8 = $121,519 |
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When a Title Insurance Company obtains the policy owner's legal right to defend a claim against the title, this is done by __________? A. assignment B. attachment C. subordination D. subrogation |
D. subrogation - process that allows the substitution of one person in the place of another with reference to a lawful claim. In this instance, the Title Insurance Company is the substitute for the policy owner when there is a claim against the title. The Title Insurance Company pays a claim on the policy, then attempts to recover the amount of loss from the third party who is legally liable for the loss. it should also be noted that a lender's title insurance policy is assignable, whereas an owner's title insurance policy is not. Assignment - is the transfer of right & interest in a mortgage, lease etc.,, Attachment - is when someone's property is taken into legal custody by a judicial order Subordination - is when something is lower in rank & importance. Such as the case with a subordination clause which makes other debts in collateral real estate secondary to the claim of the mortgage lender. |
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Legal interest, crops that require annual planting are called: A. Annuals B. Emblements C. Parennials D. Rotations |
B. Emblements crops - requires annual planting called 'emblements' this is considered a legal consideration because crops can be personal property (see below), but if the crops are sold as part of a unencumbered (free & clear) fee estate, they will usually are part of the title to the real property. However, in situations when a tenant was involved, unless a previous agreement had been made, a tenant has the right to enter the property to harvest crops that they planted, even after their lease has expired. |
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In who's best interest does a property manager cater to? A. |
Owner |
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River Real Estate Tycoons just purchased an office property next to the Liliha Bayou. Because the office property lacked sufficient parking, they contacted the Bayou Bakery Joint next door who agreed to an easement allowing them us of seven specific parking spaces. Unfortunately, two years later a devastating flood swept away the Bayou Bakery & its parking lot. Which of the following best describes the situation? A. The Bayou Bakery dominant estate was destroyed with the Bayou Bakery. B. The River Real Estate agreement will automatically be renewed IF the parking lot is rebuilt. C. The River Real Estate dominant tenement was destroyed with the Bayou Bakery D. The River Real Estate servient tenement was destroyed with the Bayou Bakery |
The River Real Estate dominant tenement was destroyed with the Bayou Bakery Servient vs Dominant Tenement - basically means land Servient - the property that has been impeded or burdened by the right of way & use. In this case it would be the Bayou Bakery Dominant - the property that benefits from the easement, such as being the one that is granted the right of way & use of the servient property in this case it would be the River Real Estate Tycoons. A few possible ways in which easements may be terminated - by a unity of title, meaning that an owner acquries both title of the Dominant & Servient estates. The reason this terminates the easement is because a person cannot have an easement over his/her own land. - by a termiantion by the dominant owner, meaning that the dominant tenement releases the Servient of the burden (in writing) -by destruction of the servient tenement. if the servient tenement is destroyed, then the easement is terminated along with it - if the use of the easement changes & or the purpose of the easement no longer exists, then easement ceases to exist - by abandonment of the easement. This would included not only the non-use of the easement but also conduct reflecting an intention to never use the easement. - by an increase of burden on the easement which is inconsistent with the original use. |
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Which of the following best demonstrates a marketable title? A. abstract of title B. Deed of trust C. General warranty deed D. Quitclaim deed |
C. General warranty deed - sometimes called a 'warranty deed' offers the most protection to the buyer & best demonstrates a marketable title. |
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Haunani leases & owns stock in a building where a corporation owns the property. What best describes this type of ownership? A. Condominium B. Cooperative C. Severalty D. Tenancy for years |
B. Cooperative - when a corporation owns a building & the residents of the building own stock in the corporation, this is called a "cooperative". The tenants are required to make a pro-rated share of the buidings operating expenses & debt payments. Severalty - means sole ownership. FYI, a corporation could be considered to be an individual, however in this case we are asking what type of ownership Haunani enjoys. With "tenancy for years", the lease lasts for some fixed period of time. Condominium - if a owner owns a fee simple interest in a unit but also owns a percentage of the common areas, this would be called a 'condominium'. Common the areas that are called "common area" such as pools, parking, etc.,. are owner as tenants in common. |
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In a sale-leaseback the grantor would become what? A. The landlord B. The lessee C. The lessor D. The new owner |
B. The lessee - The seller or grantor of the property becomes the new tenant or lessee upon completion of the transaction. Sale-leaseback - arrangement in which one party sells a property to a buyer & the buyer immediately leases the property back to the seller. This arrangement allows the initial buyer to make full use of the asset while not having capital tied up in the asset. Also called 'leaseback'. |
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The term used when the agent is placed in the position of trust & confidence to the principal: A. Agency B. Brokerage C. Fiduciary D. Relationship |
C. Fiduciary - when a real estate agent or broker is acting in an agency capacity for a buyer or seller client in a transaction, they have certain legally mandated duties that are called 'fiduciary duties'. The position of the agent or broker is a fiduciary capacity, acting in the best interests of the client. The required fiduciary duties varies by state real estate statues, but one example common to all is "confidentiality" of the client's information. In a fiduciary capacity, it is the duty of the real estate agent or broker to protect the clients' privacy & keep all information confidential, unless required to divulge it by a court of law. |
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Which scenario would be unacceptable under the fair housing law? A. Church owned housing only allowing members to occupy B. Owner occupied 3 family unit refuses to rent to a Hispanic couple C. Private group restricting lodging to constituents only D. Senior housing for only people 62 years +. |
Owner occupied 3 family unit refuses to rent to a Hispanic couple Federal Fair Housing Act exceptions according to fair housing act, there are: -age 62 years + or even people that are 55 years + can restrict younger people from certain types of housing with at least 1 person a unit with 80% occupancy. -private clubs - if they restrict membership & lodging to members only Religious organizations - that offer housing only to members owner occupied - 2 to 4 multi family units with one that is owner occupied is exempt. remember, no exceptions in regards to race Single Family Housing - if owner does not own more than 3 units at a time. However, no more than 1 unit can be sold within 2 year period. A broker cannot be used. Biased advertising, etc.,. cannot be used. |
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When is the comparative market analysis most often used? A. As an appraisal B. Property tax purpose C. Real estate tax purposes D. Setting the listing price |
Setting the listing price 'Comparative Market Analysis' (CMA) is used to help in estimating a possible sales price for your house, the analysis will also include data on nearby houses that are presently on the market as well as those which failed to sell in the past few months, along with their list prices. Remember, a CMA is not an appraisal!!! |
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Voluntary (or involuntary) __________ is the legal term for the transfer of title. A. Accession B. Acquisition C. Alienation D. Quit Claim Deed |
Alienation - is the legal term for the transfer of title. Voluntary Alienation - EXAMPLE would include the voluntary sale, gift or will of a property. Involuntary Alienation - transfer of title is done without the owners consent or control. Involuntary alienation occurs in tax sales, enforcement of liens, cases of intestate (without a will), emient domain, adverse possession, etc.,. Accession - refers to when something is added to the property either by someone or natural forces. EXAMPLE - principle of accession is when a trade fixture is installed in a property & becomes a part of the property (ie the fixture ceases to be personal property) Acquisition - get/receive something & therefore is not the actual process for the transfer of title alienation). Quit Claim Deed - grantor transfers all his/her interests to someone else; a legal document by which a person "quits" any claim that they may have to property. |
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Which is the superior lien? A. First mortgage B. IRS tax lien C. Mechanics lien D. real estate taxes |
real estate taxes superior lien - a lien that is issued by a Federal court; generally the Federal Court issues superior lien rights to the lender during the course of post bankruptcy petition financing. If approved, the Federal Court will place the lender in front of all other creditors with the intent to benefit all the creditors. Taxing authorities hold a superior lien against all taxable property to enforce the payment of their taxes. A superior lien has the first right to satisfaction of its lien. |
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An abstract of title would not contain which of the following? A. Any deed restrictions B. Evidence of existing mortgage C. Guarantee of title D. Property description |
Guarantee of title An abstract of title is a document which provides information about the history of the legal title to a piece of real estate, with the goal of demonstrating that the title is clear. It does not guarantee title. An abstract of title report would be gin with the original grant. It would also provide a chronological list of recorded instruments & all recorded liens or encumbrances along with their current statuses. And finally the abstract of title would include the list of public records searched as evidence. |
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When the lessee does not pay any costs of ownership & pays a given amount of money per period, this is type of lease is called: A. Gross Lease B. Net Lease C. Semi-gross Lease D. Single Net Lease |
Gross Lease - the most common type of lease. Lessee does not pay any costs of ownership & pays a given amount of money per period (sometimes called a fixed, straight or flat lease) Net Lease - lease agreement where the tenant pays some or all of the costs of building ownership in addition to their rent. EXAMPLE - additional expenses include 'common area maintenance' (CAM) fees, taxes, insurance, etc.,. Percentage lease - most commonly found in the retail business. This lease has a base rent which is fixed & excess rent, this is most commonly bases on the percentage of the sales. Graduated Lease - rent changes are predetermined for future dates. EXAMPLE they may agree that |
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An owner removed items from a property prior to selling it. These removed items could not be considered which of the the following: B. Chattel C. Cultivated Annual Crops D. Personal Property |
Appurtenant If an owner removes items from a property prior to selling it, then these items would be considered personal property (chattel). Therefore, these personal property items removed WOULD NOT be considered appurtenant (meaning: belonging to) It should also be noted that cultivated annual crops are considered personal property. |
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Lei wishes to purchase a rental property that is currently for sale. The property currently has people living there with a tenancy for years lease agreement. What happens to the tenants if Lei purchases the property? A. In accordance with State law, they have 30 days to vacate the property after receiving proper notice. B. Nothing. Lei is bound by the original lease agreement. C. They still have a valid lease, however Lei may choose to raise the rent and/or lease conditions. D. They will given an opportunity to negotiate with Lei for a new lease. (right of first refusal) |
Nothing. Lei is bound by the original lease agreement. with 'tenancy for years', the lease lasts for some fixed period of time. Buyers of properties with this type of lease are bound to the original length & terms of the lease agreement. |
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Of the following liens, which do not need to be recorded to be valid? A. General lien B. Mechanic's lien C. Real Estate Tax lien D. Vendor's lien |
Real Estate Tax lien all the liens listed as possible answers need to be recorded in order to be valid, with the exception of the Real Estate Tax lien. The taxing authority of the government does not need to record the tax lien before it is valid. It should be noted that real estate taxes 'runs with the land' & therefore is binding on current & potential future owners. |
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Leilani Ah hee is listing her home for $150,000. Kalei Chong offers to buy Leilanis' home for $120,000. Leilani, shocked at the offer, counteroffers with the amount of $145,000. Kalei, in turn counteroffers with a measly $121,000 for the property. At this point, Leilani decides to counteroffer at $146,000 (a higher amount than her previous counteroffer). What best describes this situation? A. Leilani can counteroffer with any amount she likes, even if it is a higher amount than what she previously offered. B. Leilani cannot counteroffer with an amount that is higher than a figure she previously offered. C. Kalei can retroactively accept the previously offered lower amount of $145,000 D. Kalei must counteroffer with an amount greater than $121,000 or end all negotiations |
Leilani can counteroffer with any amount she likes, even if it is a higher amount than what she previously offered. Whenever an offer is presented & any change of terms is made, the original offer is void & a counteroffer is created. Anything that originally was suggested in a previous offer is no longer valid or binding once a counteroffer is put forward. Therefore, Leilani is within her rights to counter with amounts that appear to go in the wrong direct. Furthermore, Kalei has no claim on a previous offer he rejected & countered. |
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The __________ is known as the list of previous real property owners leading up to the current title holder. A. Abstract of title B. Chain of title C. Color of title D. Title cloud |
Chain of title - is the list (chain) of property transfers from one owner to the next, leading up to the current holder Abstract or Abstract of title - legal history of all transactions affecting a property Color of title - title claim has the appearance of being valid, but may be defective legally. A deed, an instrument used to convey title, is typically considered a color of title. Title cloud - defect of flaw in the title. These defects or flaws may impair an owner's title on a property. |
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Buyer Kai has secured an ARM loan in which a margin is added to the index to determine his new interest rate. What is true of the margin? A. Changes as the index changes B. Changes every year C. Decreases as the loan term decreases D. Remains constant over the life of the loan. |
Remains constant over the life of the loan. The rate of an adjustable rate mortgage (ARM) changes at predetermined intervals & is typically based on a pre-selected economic index (e.g. Treasury Bill Index) The lender's operating costs & profits are covered by the margin, which is a rate that is added to the index rate. The margin never changes over the life of the loan. EXAMPLE: if an ARM is tied to an index that is currently at 5% with a margin of 2 points, then the loan rate would be 7% A introductory rate (or teaser rate) may be offered. The teaser rate is usually a very low rate & would typically last for the first year of the loan before reverting back to the normal rate. |
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In an open listing, which of the following is correct? A. A broker is entitled to a commission regardless of who sells the property B. Commission is based on the excess over the sales price of the listing C. Only one broker would be authorized to act as an agent for the seller D. The seller can employ any number of brokers |
The seller can employ any number of brokers An Open listing is almost like "for sale by owner" listing. A home seller offers pay a sales commission, to one or more real estate agents, to the first one who brings an acceptable purchase agreement. However, no commission is owed if the seller finds a buyer on his own, without any agent's help. |
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An owner acquired the ownership of additional land that was deposited by a river running through their property. This is an example of: A. Accretion B. Avulsion C. Egress D. Reliction |
Accretion - when land is actually increased because of water depositing additional soil (or waterborne solid material) gradually. Avulsion - sudden loss of land or soil due to sudden natural act (e.g. earthquake, sudden change of river flow, etc.,.) Egress - exit. common term in real estate. Often used when talking about how a person may exit the property Reliction - water line recedes & leaves exposed land permanently dry. An easy way to remember this is think: receding / reliction. This is sometimes known & similar to "dereliction". |
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Nalu owns a life estate, his brother Kai; holds the future interest in the estate. What is true when Nalu dies? A. Kai will hold the title to the property B. Jason's life estate will pass to his heirs via his will C. Nalu's wife will hold title under her dower interest. D. The title will be held as tenants in common |
Kai will hold the title to the property A life estate is terminated when the life tenant dies. Full ownership passes to the owner of future interest, therefore Kai would hold title upon Nalus' death Life estate - form of ownership that ceases upon the death of the person who owns the interest. The person who holds the life estate is sometimes considered the life tenant. Because the life estate ceases upon the death of the life tenant, the property can not be left to an heir. Rather, the details of the life estate will name a future interest to retain ownership of the land upon the death of the life tenant. This future owner is cal the 'remainderman' Downer rights - a non-owner spouse has in the real property of his or her spouse. |
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A salesperson working under a sponsoring broker may: A. Directly receive commission from a seller B. Directly receive commission from another broker C. Place an ad without identifying the broker D. Work as an independent contractor |
Work as an independent contractor licensees can work as independent contractors for their sponsoring broker. Whether a licensee is considered an employee an dependent contractor can have an enormous impact on a licensee's work style & cash flow. Independent contractors have almost unlimited latitude in determining how & when they work - as long as the results of that work are satisfactory to the broker. Additionally, taxes are not withheld from commission checks. That ns, however, that the licensee is responsible for paying estimated taxes (penalities for late payment scan be substantial) as well as higher "social security' taxes in the form of a self-employment tax. Independent contractor salespersons work with limited supervision by the broker. This would not include following a set work schedule or specific hours. Salespersons may not accept any compensation for real estate related activities from anyone but his/her sponsoring broker. Blind Ads - advertising that omits the real estate company name & the name of the broke. Generally prohibited. |
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The rights enjoyed by an owner of a river front property are called: A. accretion rights B. littoral rights C. prior appropriation rights D. riparian rights |
riparian rights |
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Responsibilities of a broker in an agency relationship would include with of the following? A. Accepting an offer for the seller B. Accountability for all funds received C. Managing the property D. Provide financing |
Accountability for all funds received Accountability for funds received is part of the fiduciary relationship of the broker. In a typical real estate transaction, the real estate broker creates an agency relationship with the seller by means of a written agreement, known as a listing agreement. Once this agency relationship is established, the real estate broker owes certain fiduciary duties to her principal: - good faith - loyalty - due diligence - disclosure |
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Lopaka & Mikaela have negotiated a lease agreement where they pay a fixed rental amount while the owner pays for all other ownership coast for the property. What type of lease agreement have they entered into? A. Gross lease B. Index lease C. Net lease D. Percentage lease |
Gross lease - lessee does not pay any costs of ownership & pays a given amount of money per period (sometimes called a fixed, straight or flat lease) The gross lease is the most common type of lease Index lease - lease agreement where the rent change is based on a common index (e.g. consumer price index) Net lease - lease agreement where the tenant pays some or all of the costs of building ownership in addition to their rent. EXAMPLES of additional expenses include Common Area Maintenance (CAM) fees, taxes, insurance, etc.,. Percentage lease - commonly found in the retail business. This lease has a base rent which is fized & an excess rent, this is most commonly based on the percentage of the sales |
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Keaka signed a 1 year lease that does not contain an automatic renewal clause. To commonly with the lease term, how many days notice must Keaka give if he plans to move out at the end of the lease instead of renew it? A. 10 days B. 30 days C. 60 days D. Notice is not required |
Notice is not required unless otherwise regulated by state or local law, if the lease is silent about renewal, then the lease expires at the end of its term & notice is not required. If the tenant dos not move, he/she may be evicted. |
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What is an appraiser most likely referring to when he/she says "the whole is worth more than the sum of its parts"? A. Assemblage B. Commercial property C. Plottage D. Zoning |
Plottage - refers to the value of the combined sites having a total value higher than that of each parcel. Assemblage - real estate refers to the combining of two or more parcels into one ownership or use. Usually used ot piece together several properties for it to be able to be developed in some fashion. Therefore assemblage is the process of combining parcels, & plottage occurs when there is an increase of value because of the assemblage. EXAMPLE: plottage is the actual increased value resulting from assemblage. If three properties existed, each worth $100,000 individually, were assembled into one property, this would be an example of assemblage. If this newly combined property is not worth $400,000, the plottage value is $100,000 ($300,000 total value of three lots separately taken from the new value of $400,000 equals $100,000 of plottage value). Plottage occurred because the value created from assemblage exceeded the individual values of each property. Zoning - specific uses & conditional for areas within a municipality's control |
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When a lender requires a buyer to set up an escrow account for taxes & insurance, the type of mortgage would be: A. Allocated mortgage B. Balloon mortgage C. Budget mortgage D. Reverse mortgage |
Budget mortgage - includes monthly principal payments, interest, taxes & insurance (P.I.T.I) blanket mortgages - by definition, are for multiple properties, usually within a business context, such as a land or housing developer A balloon mortgage resembles a fixed rate mortgage with premiums evenly spread over a fixed period. However, a balloon mortgage does not amortize over the assigned period. Rather, it will have a balloon payment due at the end of the term; hence the name. Reverse mortgage is an arrangement in which a homeowner borrows against the equity in his/her home & receives regular monthly tax-free payments from the lender. Also called 'reverse-annuity mortgage' or 'home equity conversion mortgage'. |
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A lender would be violating the Federal Fair Housing Act by denying a loan for this reason. A. National origin B. Over extended credit C. Too old for a 30 or 40 year loan D. Undesirable income |
National origin Age discrimination is not covered in the Federal Fair Housing Acts, however the Federal Fair Housing Acts strictly forbids discrimination based on: -color -familial status (Handicap & familiar status was added in 1988 under the Fair Housing Amendments Act.) -handicap (mental or physical) -national origin -race -religion -sex/gender (added in 1974, Housing & Community Development Act) |
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The Fair Housing Act of 1968 prohibits housing discrimination on the basis of: A. Race & color B. Race, color, religion C. Race, color, religion, and national origin D. Race, color, religion, national origin, sex, familial status or handicap |
Race, color, religion, national origin, sex, familial status or handicap The Federal Fair Housing Acts strictly forbids discrimination based on: -color -familial status ( Handicap & familiar status was added in 1988 under the Fair Housing Amendments Act.) -handicap (mental or physical) -national origin -race Federal Fair Housing Act exceptions according to fair housing act, there are:-age 62 years + or even people that are 55 years + can restrict younger people from certain types of housing with at least 1 person a unit with 80% occupancy.-private clubs - if they restrict membership & lodging to members onlyReligious organizations - that offer housing only to membersowner occupied - 2 to 4 multi family units with one that is owner occupied is exempt.remember, no exceptions in regards to raceSingle Family Housing - if owner does not own more than 3 units at a time. However, no more than 1 unit can be sold within 2 year period. A broker cannot be used. Biased advertising, etc.,. cannot be used. |
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The term used for a person who receives property by a will is called: A. Devisee B. Intestate C. Testator D. Trustee |
Devisee When the transfer of real estate occurs by will or last testament, the donor is the devisor & the recipient is the devisee. Intestate - condition of the property owner who dies without a valid will Testate - condition of the property owner who dies with a valid will. |
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To whom does a tenant or prospective tenant lodge a housing discrimination complaint? A. Department of Real Estate B. Directly to the court C. None of these D. To the Secretary of HUD |
To the Secretary of HUD A tenant or a prospective tenant can file a complaint with HUD (U.S. Department of Housing & Urban Development) if a possible violation of their rights occurred under the Fair Housing Acts. It is necessary to file the complaint within one year of the alleged discrimination. HUD will conduct an investigation to determine whether to dismiss the complaint or attempt to reach a "conciliation" agreement between the parties. If conciliation is unsuccessful, a judge will conduct an administrative hearing to determine whether there is reasonable cause to believe that discrimination occurred. If the court finds discrimination, it may issue an order of relief & grant the tenant damages. Instead of having the case decided in an administrative hearing, the tenant or the landlord may choose to have the case litigated in Federal District Court by the Attorney General's office. A District Court can grant the tenant injunction relief & damages. Because state & local areas also have anit-discrimination laws, a tenant may file a compliant with the appropriate agency. Under state & local law, the statue of limitation for filing a compliant may be different from federal time limits. The same investigation & conciliation efforts that HUD uses usually occur in a state or local investigation as well. |
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Which of the following is not a public control of land use and development? A. Building codes B. Deed covenant C. Specific housing codes D. Zoning |
Deed covenant - private controls placed on real property. They are NOT public controls building codes, or housing codes - a set of rules that specify the minimum acceptable level of safety for constructed objects such as buildings & non-building structures. The main purpose of building codes are to protected public health, safety & general welfare as they relate to the construction & occupancy of buildings & structures. The building code becomes law of a particular jurisdiction when formally enacted by the appropriate authority. |
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The agent & the client have this kind of relationship. A. Exclusive B. Fiduciary C. Financial D. Unilateral |
Fiduciary - root word means "trust". In real estate, the agent has fiduciary relationship with their principal (client A.K.A. the person who they are representing). On a side note, it is good the realize that the agent workwith (not for) the customer, but in really works for the client/principal/person they actually represent. The heavy burden (C.C. - L.O.A.D) of the fiduciary duties include Confidentially, Care, Loyalty, Obedienc Accountailty, Disclosure On a side note, while the agent & client may have an exclusive agreement, this is not always going to be the case. This relationship may or may not exist. |
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Analu & Jr. are selling their 25 year old home for $325,000 & the closing is scheduled for August 6. Their current loan balance is $100,000 at 8% interest & their lender does not charge an automatic full month's interest. Assuming that Analu & Jr. are not late on their mortgage payment & the loan will fund 3 days after the closing date, how much will Analu & Jr. still owe their bank for unpaid interest? A. 129.03 B. 133.33 C. 193.55 D. 200.00 |
193.55 A borrower will typically pay interest in arrears (meaning they pay interest for the previous month). Therefore, when an August 1st payment is made, they are paying for the interest that accumulated in July. In this case, the seller will still owe for their interest accumulated in August. Because we already know the remaining loan balance as of August, 1 all we need do is determine how much interest would be charged per day in August. It is easier to calculate the annual interest payment first & then divide that into 12 months. $100,000 x 08 (or 8%) = $8,000 in annual interest $8,000 / 12 months = $666..67 in monthly interest $666.67 / 31 days August = $21.51 per day in interest charges. Because the loan will not fund until the 9th (closing on 6th + 3 days until funding) $21.51 x 9 = $193.55 |
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The Windward County board has acquired land for a new freeway. What power is the board exercising? A. adverse possession B. Eminent domain C. Escheat D. special assessment |
Eminent domain - right that the government has to take private property & use it for the good of the public, (utilities may be included in eminent domain) of course the government has to compensate you for your property. This would also be called, "condemnation" when the government uses this right. There are four powers of the government. They are (P.E.T.E) 1. Police Powers; 2. Eminent Domain 3. Taxation 4. Escheat Another word for the termin "going to the state" is Escheat. This means that if somebody were to die wihtout heirs & without a will, the property would belong to that State. Special assessments - occur when taxes are levied in order to pay for public improvements. Common examples would be sidewalks, sewer lines, roads, etc.,. Adverse Possession - process where someone may actually be able to make a claion property not owned by them based solely on the argument they have occupied or used the property for a long period of time. Legality & time constraints of adverse possession vary from State to State. |
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