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412 Cards in this Set
- Front
- Back
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T/F: There will always be plenty of land for everyone who wants to buy some |
FALSE.
The supply of land is fixed and can never be increased (Scarcity) |
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T/F: Because investments in real estate tend to be long-term, the real estate market is slow to respond to changes in supply?
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TRUE
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T/F: Combining two or more contigious parcels of real estate into a single parcel is know as "Plottage"? |
FALSE
STATEMENT DEFINES ASSEMBLAGE
PLOTTAGE VALUE: any increase in value resulting from ASSEMBLAGE |
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T/F: AN INCREASE IN VALUE RESULTING FROM PLOTTAGE IS KNOWN AS ASSEMBLAGE VALUE? |
FALSE
PLOTTAGE VALUE IS any increase in value resulting from ASSEMBLAGE |
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T/F: The real estate market is just like the market for any other commodity?
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FALSE |
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A real estate developer who plans to build a large industrial park must buy property from 3 different owners before he can proceed with his development plans. This would be considered?
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ASSEMBLAGE
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All of the following are considered to be economic characteristics of land EXCEPT:
A: Assemblage B: Scarcity C: Production D: Improvements |
D: IMPROVEMENTS
Improvements are part of the physical characteristics of land not economical Economic Characteristics of Land (Scarcity, Situs, Permanency of Improvements, Production, & Assemblage) |
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Soil from Smith's Land is washed down and deposited onto Brown's Property. Who owns the soil? |
Brown owns the soil.
Land/Soil acquired by natural causes, such as this example of ACCRETION, belongs to the one who acquired it.
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Two real estate developers are working on similar competing commercial developments. Both projects are finished at approximately the same time. Which of the following would most likely characterize the reasons that one succeeds while the other fails?
A: Supply and Damand B: Situs C: Plottage Value D: Nonhomogeneity |
B: Situs
The most logical reason for the different outcomes is the nature of the specific locations or "situs" |
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The accumulation of soil on an owner's property cause by movement of water is know as? |
Accretion |
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Items of personal property that extend to an interest in real property, such as a lease |
Chattel Real |
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Articles of personal property that are necessary parts of tenant's trade or business that may be affixed to real estate and remain personal property? |
Trade Fixtures |
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Examples are cattle, horses, cars, and boats |
Chattel Personal |
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A mortgage secured by personal property |
Chattel Mortgage |
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T/F: Personal property is immovable |
False
Personal property is movable Land is immovable |
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T/F: Stocks, bonds, notes and mortgages are person property |
True |
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T/F: A bill of sale is to personal property as a deed is to real property? |
TRUE
PERSONAL PROPERTY IS TRANSFERRED BY BILL OF SALE; REAL PROPERTY IS TRANSFERRED BY A DEED. |
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T/F: Trade fixtures may not be removed from leased premises once they are affixed? |
FALSE:
TRADE FIXTURES ARE GENERALLY REMOVABLE BY THE TENANT |
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T/F: TRADE FIXTURES DO NOT INCLUDE REPLACEMENT FIXTURES? |
TRUE:
WHEN A TENANT REPLACES AN EXISTING FIXTURE, THAT DOES NOT MAKE IT A TRADE FIXTURE |
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A BILL OF SALE WOULD BE USED INSTEAD OF A DEED FOR ALL EXCEPT:
A: BOAT B: CAR C: MOTORCYCLE D: REAL ESTATE |
D: REAL ESTATE |
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All of the following are true about trade fixtures except?
A: They are articles of personal property B: If affixed to leased premises, they belong to the landlord after the lease ends. C: They are necessary parts of the tenant's trade or business. D: They do not usually include replacement fixtures |
B: If affixed to leased premises, they belong to the landlord after the lease ends.
Trade fixtures remain the personal property of the tenant. |
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All property other than real property is known as: |
Chattel |
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Which of the following is NOT recognized as personal property:
A: A Lease B: A mortgage that is secured by personal property C: Cattle and horses D: An easement |
D: an easement
An easement is real property |
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Fructus industriales is another term for: |
Emblements
Refer to crops |
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A party in a real estate transaction who does not employ a broker: |
Customer |
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Employed by a broker |
Salesperson |
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Hired by Client |
Brokerage Firm (Broker) |
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The party employing the broker |
The Client |
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T/F: When pricing is allowed to react to the principles of supply and demand, the free enterprise system determines what will be produced.
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TRUE
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In an ideal market, the forces of supply and demand are always chaotic? |
FALSE.
In an ideal market, supply and demand are always balance |
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T/F: Our free enterprise system is free from government economic controls |
FALSE |
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______ is the amount paid for a parcel of real estate in an actual transaction
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Price
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Realtors determine the price of land? |
FALSE
Prices are determine by buyers and sellers, not REALTORS |
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The state agency that promulgates rules and regulation concerning real estate licensees and how they deal with the public is the: |
REAL ESTATE BOARD
(names may vary for state to state) |
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Which of the following is NOT required to hold a real estate license?
A: Employing broker B: Associate Broker C: Homeowner selling his/her own property D: None of the Above (All must be licensed) |
C: Homeowner selling his/her own property |
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An associate broker who sells a house for a client is paid a commission by the: |
Broker
Associate broker is paid by the employing broker, not by the client, customer, or anyone else. |
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Economic controls which affect the free enterprise system are enacted by whom:
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Federal and State Government
(Through regulations and laws) |
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The person who actually hires the broker to sell a property is most accurately referred to as the? |
Client
The property owner who signs the listing is referred to as the "client" |
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Campground and resort properties |
Recreational Property |
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Dwelling places and land suitable for home contruction |
Residential Property |
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Office buildings, shopping centers, and parking lots |
Commercial Properties |
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Warehouses, plants, and factories |
Industrial Properties |
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T/F: Public property includes property owned by Churches? |
False
Public property is government-owned property |
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T/F: A mushroom farm is industrial property
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False
It would be agricultural property |
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T/F: A nursing home is a special purpose property |
True |
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T/F: A hospital is a commercial property |
False
Hospitals are special purpose property |
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T/F: An industrial park is commercial property? |
False
Industrial park is industrial property |
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What are the 7 Types of Real Estate Properties |
Residential, Commercial/Investment, Industrial, Agricultural, Recreational, Special Purpose, Public |
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Industrial property includes each of the following, EXCEPT:
A: Parking Lots B: Warehouses C: Factories D: Utility Plants |
A: Parking Lots |
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Commercial Property includes each of the following, EXCEPT:
A: Horse Ranch B: Office Building C: Restaurants D: Vacant land suitable for commercial development |
A: Horse Ranch
Horse Ranch is an agricultural property |
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Public property would likely include all the following EXCEPT:
A: Parks B: Schools C: Libraries D: Synagogues |
D: Synagogues
Synagogues are special purpose property. They are not owned by government and there for not public property. |
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Residential property is composed primarily of: |
Single Family Homes |
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How many square feet are in an acre |
43,560 sq ft |
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Which method of description is used to describe a subdivision |
Recorded Plat Method |
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Which method of description is used to describe an irregularly shaped parcel of land |
Metes and bounds method |
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Which method of description uses naturally occurring physical features of land to determine boundaries? |
Monuments method |
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T/F: An accessor's parcel number is an adequate legal description |
FALSE |
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T/F: An informal reference is adequate for use in a rental agreement? |
TRUE
Rental agreements do not require a full legal description of the property. |
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T/F: Land cannot be legally described by referring to other publicly recorded documents |
False |
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T/F: Both the parcel of land beneath the air lot and the elevation of the air lot are described for air lots |
TRUE |
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A _________ is used to describe both air and subsurface rights |
DATUM |
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How many acres in a section? |
640 acres in a section |
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How many feet in a mile? |
5,280 feet in a mile |
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How many square feet to an acre |
43,560 sq ft in an acre |
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Which description method contains enough different measurements to provide the most accurate physical description of an irregularly shaped parcel of land? |
Metes and Bounds Method
Metes and Bounds are used to describe irregularly shaped parcels. |
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An adequate metes and bounds description will have all of the following? |
- Definite Point of Beginning - Closure - Linear measurements and compass directions. |
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All property other than real property is/are? |
Chattel or Personal Property |
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Land located in a rural area of an eastern state would most likely be described by: |
Metes and bounds
(Original method used in the eastern United States) |
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All of the following are physical characteristics of land EXCEPT:
A: Situs B: Immobility C: Heterogeneity D: Indestrutibility |
A: Situs
Situs refers to an economical characteristic of property |
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The characteristic that distinguishes personal property from real property is: |
Mobility
Personal property is movable, while real property is not. |
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Ownership of a parcel of land would include what property boundaries:
A: The earth's surface and all minerals and substances beneath, B: The surface to the center of the earth and upward of infinity C: The earth's surface marked by boundaries D: The earth's surface, extending a reasonable distance up and down. |
B: The surface to the center of the earth and upward to infinity.
Ownership of a parcel includes a pie-shaped wedge from the center of the earth to infinity |
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Real property is changed into personal property by: |
Severance
When a portion of real property is severed, it becomes personal property. |
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A legal land description must be___________.
A: Be sufficient to identify the property B: Carry measurements to the nearest inch C: Show the area of the land being described D: Contain an informal reference |
A: Be sufficient to identify the property
The primary requirement of a legal description is that it should sufficiently (and uniquely) identify the property. |
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Which of the following terms does NOT refer to a land description method adopted because of western expansion:
A: Government survey system B: Geodetic survey system C: Rectangular survey system D: Subdivision plat method |
D: Subdivision Plat Method |
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All of the following are appurtenances, EXCEPT:
A: Riparian Rights B: A Garage C: An apple orchard D: Trade Fixtures |
D: Trade Fixtures
Trade fixtures are personal property and therefor not appurtenances which are real property |
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The right to, or ownership of land |
Title |
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The right of ownership, possession, use, occupancy, and enjoyment |
Legal Title |
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When the seller still has legal title, but the buyer has the right to obtain ownership upon performance |
Equitable Title |
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Lacking the usual rights and priviledge of ownership |
Naked Title |
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Notice where information has been available to the public |
Constructive Notice |
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Notice where an individual has been given actual information or documents |
Actual notice |
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A formal declaration made before a notary public or other public officier |
Acknowledgment |
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Lodging copies of documents in the city or county office where land records are kept |
Recording |
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T/F: Bare legal title lacks the usual rights and privileges of ownership |
TRUE
Statement is true. For example, a lender could hold naked legal title while the borrower holds equitable title. |
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T/F: Constructive notice means that an individual has seen or been given actual information or documents |
FALSE
Constructive means that information has been made available to the public.
Actual notice means that an individual has seen or been given actual information or documents |
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T/F: Inquiry notice is a legal notice presumed by law. |
TRUE
It means that the person could have investigated and learned the information |
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T/F: Alienation refers to change of ownership by deed |
FALSE
Alienation refers to any change in ownership |
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T/F: An abstract of title is a full summary of the title history, with a statement of all recorded liens and encumbrances |
TRUE |
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T/F: Most incorporated cities and counties in the United States have land records |
TRUE |
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T/F: Surveys just measure the boundaries of land |
FALSE
Surveys measure the boundaries of land, locate improvements, and determine the existence of easements, encroachments, and setback requirements |
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Which of the following is NOT true about title insurance?
A: The policy will include a list of exclusions B: It is the same as homeowner's insurance C: It will insure the owner against losses due to title defects D: It will generally include exclusions for unrecorded easements |
B: It is the same as homeowner's insurance
Homeowner's insurance protects against losses from fire and other risks, and does not relate to marketable title to the property |
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Which of the following is an example of constructive notice:
A: Recording documents in the land records B: Telling a person that you have an easement across his land C: Looking at a parcel of Land D: A neighbor telling you about a mineral right he has to your land |
A: Recording of a document gives constructive notice |
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Which is NOT a cloud on title:
A: A valid first mortgage B: A defaulted contract for deed which has not been removed C: Lack of a recorded certificate of title insurance D: A recorded mortgage that was paid in full but not released |
C: Lack of a recorded certificate of title insurance
The lack of a recorded certificate of title insurance would not constitute a cloud on the title |
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Title that is reasonably free from the risk of litigation over possible defects in ownership |
Marketable Title |
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Which of the following is NOT true about a title search?
A: It is an examination of public records B: The purpose is to to determine defects in the chain of title C: The title searcher goes back at least 100 years D: It is usually performed by a title company or title abstractor |
C: Title examinations usually go back 40-60 years, not 100 years. |
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The legal proceedings by which the government obtains ownership of private property |
Condemnation |
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The right of government to take ownership of private property for public use |
Eminent Domain |
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The exercise of the police power can result in this __________. |
Uncompensated Regulation |
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This lien arise automatically when tax is assessed on property.
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Tax Liens
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Payment for taking of property in a condemnation hearing |
"Just Compensation" |
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Land is owned by individual, not the king or sovereign |
Allodial System |
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Right of government to adopt and enforce laws for the general welfare |
Police Power |
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The power of the state to claim title over abandoned property |
Escheat |
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T/F: Police power is the same thing as eminent domain |
FALSE
Police power is the uncompensated regulation of property; eminent domain is a compensated taking |
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T/F: The government can pay any price it wants for property taken by condemnation |
FALSE
Either the government and the owner agree to a price or a court decides. |
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T/F: The federal government also has the power of eminent domain |
TRUE |
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T/F: Escheat keeps property from becoming ownerless |
TRUE
Escheat is the power of the government to take property when an owner dies and leaves no will or heirs |
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T/F: Taxes do not become liens until the due date for payment has passed |
FALSE
Property taxes become a lien when they are assessed, which is prior to the due date |
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T/F: You could sue a municipal fire department for damaging your building in the process of putting out a fire. |
FALSE |
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Eminent domain does NOT apply to: |
A: Parochial Schools |
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2. The government's right to make laws and regulations for the general welfare is known as:
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B: Police Power |
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3. Police power includes all of the following, EXCEPT: |
(B) Condominium covenants, conditions, and restrictions;
Condominium CC&Rs are private limitations on ownership. The text listed the other three as public limitations on ownership. |
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4. Condemnation is the exercise of: |
(C) Eminent domain; |
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5. When the last heir of a property owner dies, as well as the last surviving tenant, absent a provision in a will devising the property, title will revert to: |
The STATE
Under the power of escheat, such property would revert to the state. |
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Private agreements contained in a deed, lease, or will restricting the use and occupancy of real property are: |
Deed restrictions (also referred to as covenants, conditions, and restrictions)
The most common deed restrictions involve the size, price, design, and setback lines of improvements. |
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Unauthorized infringements on a property owner’s rights as a result of physical intrusion |
Encroachments
An encroachment is a trespass if it encroaches on the land (as a fence or driveway), and a nuisance if it violates a neighbor’s airspace (as in the case of overhanging tree branches). |
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An encumbrance that arises as a result of debt. |
Lien |
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Limitations on the rights of real property owners. |
Emcumbrances |
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Illegal entry onto the property of another. |
Trespass
(Land Encroachment) |
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Tree branches hanging over a neighbor's property |
Nuisance
(Airspace Encroachment) |
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A legal right to enter upon another's land. |
Easement |
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This will reveal an encroachment. |
Survey |
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An encumbrance is an impediment on title. |
TRUE
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You can obtain title insurance to protect the title against encroachments. |
FALSE
Most title insurance companies will not insure against an encroachment. |
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A survey performed after an encroachment should reveal the encroachment. |
TRUE |
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An easement is just another form of encroachment. |
FALSE
An easement is the legal right to enter onto another's land. Encroachments are ILLEGAL. |
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Restrictive covenants are not encumbrances against property. |
FALSE
Restrictive covenants are private agreements that constitute encumbrances. |
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Which of the following is NOT a correct statement about encumbrances: |
(D) Encumbrances do not affect the title of the property.
The fourth choice is the FALSE statement. Encumbrances burden the title to the property. |
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Which of the following is NOT an encumbrance that affects property physically: |
(A) Mechanic's liens;
Mechanic's liens are a claim for money and do not physically affect the property. A deed restriction could affect it physically, as it can limit what improvements are allowed. |
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Sara builds an addition to her home, part of which turns out to be on land belonging to June. This is an example of: |
(D) Encroachment. |
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All of the following are encumbrances, EXCEPT: |
(B) Emblements; |
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Which of the following is NOT a private limitation on title: |
(C) Eminent domain;
Eminent domain is a power of government, and therefore not a private limitation on title. |
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An estate in land that is of indeterminable duration, meaning that it is not limited by a specific time frame. |
A freehold estate |
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Types of FREEHOLD ESTATE: |
* Fee simple estate; |
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HIGHEST A MOST COMPLETE TYPE OF OWNERSHIP OF LAND IS |
FEE SIMPLE ESTATE |
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TYPE OF OWNERSHIP OF LAND THAT EXISTS FOR AN INDEFINITE DURATION AND CAN BE SOLD, GIVEN AWAY, AND PASSED TO HEIRS IS? |
FEE SIMPLE ESTATE |
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PERSON HOLDING FREEHOLD HOLD ESTATE ARE TO BE__________ |
SEIZED OF THE LAND |
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POSSESSION OF A FREEHOLD ESTATE IS ______________________ |
SEISEN |
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TYPE OF FREEHOLD ESTATE THAT HAS LIMITATIONS IN WHICH THE OWNER HOLES A FEE SIMPLE TITLE SUBJECT TO CERTAIN CONDITIONS. |
QUALIFIED FEE ESTATE (FEE SIMPLE DEFEASIBLE OR DEFEASIBLE FEE OR DEFEATABLE FEE)
(SHOULD BE REFERRED TO AN ATTORNEY) |
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2 TYPES OF QUALIFIED FEE ESTATE |
- FEE SIMPLE DETERMINABLE - FEE SIMPLE SUBJECT TO A CONDITION SUSEQUENT |
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FEE SIMPLE ESTATE THAT IS CONVEYED TO PERSON FOR THE DURATION OF SOMEONE'S LIFE? |
LIFE ESTATE |
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PUR AUTRE VIE |
FOR ANOTHER'S LIFE |
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IMPROPER USE OR ABUSE OF PROPERTY BY ONE IN POSSESSION WHO HOLDS LESS THAN FEE OWNERSHIP (SUCH AS A TENANT, LIFE TENANT, MORTGAGOR, OR VENDEE) |
WASTE |
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FREE HOLD ESTATE THAT IS A FUTURE INTEREST IN REAL ESTATE CREATED AT THE SAME TIME AND BY THE SAME INSTRUMENT AS ANOTHER ESTATE AND ARISES AUTOMATICALLY UPON THE TERMINATION OF THE PRIOR ESTATE. |
REMAINDER ESTATE |
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THE PERSON DESIGNATED TO TAKE TITLE UPON THE TERMINATION OF PRIOR ESTATE |
REMAINDERMAN |
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WHERE THE ESTATE IS LEFT TO THE GRANTOR AFTER A GRANTOR HAS CONVEYED A LESSER ESTATE (LESS THAN FEE INTEREST) TO A GRANTEE. |
REVERSION ESTATE |
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AN ESTATE THAT IS CREATED BY LAW OR ENACTED OF LEGISLATION) |
STATUTORY ESTATE |
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DOWER, CURTESY, COMMUNITY PROPERTY AND HOMESTEAD EXEMPTION ARE EXAMPLES OF_______________? |
STATUTORY ESTATES |
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TYPES OF LEASEHOLD ESTATES |
ESTATE FOR YEARS ESTATE FROM YEAR TO YEAR ESTATE AT WILL ESTATE AT SUFFERANCE |
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AN ESTATE FOR DEFINITE DURATION THAT DOES NOT INVOLVE OWNERSHIP |
LEASEHOLD ESTATE |
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TYPE OF LEASEHOLD ESTATE THAT HAS DEFINITE BEGINNING AND ENDING DATE AND DOES NOT RENEW. |
ESTATE FOR YEARS |
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TYPE OF LEASEHOLD ESTATE THAT RENEWS AT THE END OF THE TIME PERIOD |
ESTATE FROM YEAR TO YEAR |
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TYPE OF LEASEHOLD ESTATE WITH NO DEFINITE TIME PERIOD AND DOES NOT RENEW AND IS TERMINATE BY SALE OF PROPERTY, BY DEATH OF EITHER PARTY, OR BY NOTICE BY EITHER PARTY. |
ESTATE AT WILL |
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TYPE OF LEASEHOLD ESTATE WHERE THE TENANT OCCUPIES REAL ESTATE AFTER HIS LAWFUL RIGHTS HAVE RUN OUT. TERMINATION DOES NOT REQUIRE NOTICE |
ESTATE AT SUFFERANCE |
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AN ESTATE OF INDEFINITE DURATION |
FREEHOLD ESTATE |
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THE DEGREE, QUANTITY, NATURE AND EXTENT OF OWNERSHIP IN REAL PROPERTY IS CALLED __________________ |
ESTATE |
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T/F: THE WORD "FEE" MEANS POSSESSION |
FALSE
"FEE" MEANS ESTATE OF INHERITANCE |
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T/F: THE WORDING IN A DEED "TO B FOR LIFE OF C" CREATES AN ESTATE KNOWN AS PUR AUTRE VIE |
TRUE
"PUR AUTRE VIE" MEANS "FOR ANOTHER'S LIFE" |
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T/F: COMMUNITY PROPERTY IS A STATUTORY ESTATE |
TRUE |
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T/F: LIFE TENANTS MAY DO ANYTHING THEY WANT TO WITH THE PREMISES OF THEIR LIFE ESTATE PROPERTY |
FALSE
TENANT MAY NOT COMMIT WASTE, MUST MAINTAIN THE PREMISES IN GOOD REPAIR, AND PAY MORTGAGE, TAXES, AND INSURANCE |
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T/F: A REMAINDER INTEREST CAN BE CREATED AT ANY TIME |
FALSE
REMAINDER INTEREST MUST BE CREATED AT THE SAME TIME AND IN THE SAME INSTRUMENT AS ANOTHER ESTATE |
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T/F: A FEE SIMPLE ESTATE MAY BE DEFEATED BY CERTAIN CONDITIONS. |
TRUE
PRIVATE RESTRICTION CAN SOMETIMES LEAD TO LOSS OF TITLE IF THEY ARE VIOLATED |
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If a third party is not named, the grantor of a life estate retains a:
(A) Reversionary interest; |
(A) Reversionary interest;
If the interest reverts to the grantor, it is an estate in reversion. If it went to a third party, it would be an estate in remainder. The first choice is correct. |
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Sam has a life estate in a five-acre tract of land. When Sam dies, the property will pass to his nephew. Sam wishes to sell his interest in the property. Which of the following is true?
(A) Sam's buyer will acquire the same interest held by Sam; |
(A) Sam's buyer will acquire the same interest held by Sam;
Sam holds a life estate. He has the legal right to sell his interest, but cannot sell more interest than what he holds. |
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Which of the following is NOT a freehold estate: |
(B) Leasehold estate;
A leasehold estate is a lease, and is not a freehold estate. |
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An estate that may be terminated by any party at any time is an estate: |
(B) At will; |
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Which of the following is NOT a leasehold estate: |
(B) Life estate;
A life estate is a freehold estate, because it involves ownership. |
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TITLE TO A FEE SIMPLE ESTATE MAY BE HELD AS:
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* tenancy in severalty (single or sole owner);
* joint tenancy or co-ownership (two or more owners); * tenancy by the entireties; * tenancy in partnership; and * tenancy in trust (title is held by a trustee). |
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Individual ownership of real property where the Title is held in a fee simple estate or in a life estate in the name of one natural person or one artificial person (such as a corporation). |
A tenancy (or estate) in severalty |
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CORPORATIONS, STATES, AND COUNTIES FREQUENTLY HOLD TITLE AS WHAT? |
ESTATE IN SEVERALTY |
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An estate owned by two or more persons, each with the right of survivorship (JTROS) |
A joint tenancy or joint estate |
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JTROS |
JOINT TENANCY RIGHT OF SURVIVORSHIP |
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WHAT IS THE BASIC PRINCIPLE OF JOINT TENANCY? |
UNITY OF OWNERSHIP - ONLY ONE TITLE EXISTS AND THAT TITLE IS A UNIT WITH ALL PERSON OWNING EQUAL SHARES. |
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WHEN ONE JOINT TENANT TENANT DIES IN A JOINT TENANCY WHAT HAPPENS TO THAT PERSON'S INTEREST IN THE ESTATE? |
THE REMAINING JOINT TENANTS AUTOMATICALLY RECEIVE HIS INTEREST BY RIGHT OF SURVIVORSHIP |
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To create a joint tenancy THESE four things must occur simultaneously as to all owners. |
FOUR UNITIES * Unity of Title * Unity of Time * Unity of Interest * Unity of Possession |
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Joint tenants must acquire title from the same instrument (same deed or same will). |
* Unity of Title
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All joint tenants must be named at the same time. New names cannot be added later. If joint tenants wish to add to their number, they must form a new joint tenancy. |
* Unity of Time
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All joint tenants own one single interest together, equally. They all have the same right in that interest. If joint tenants list individual interests they will be treated as tenants-in-common because they lack unity of interest. |
* Unity of Interest
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Joint tenants must have undivided possession of the whole property. They must have the use of the entire property, and no individual tenant owns a particular portion of the property. |
* Unity of Possession
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When a joint tenant sells his interest to an outside party, the outside party takes title as a....? |
Tenant-in-common to the remaining joint tenants |
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JOINT TENANCY CAN ONLY BE SEVERED OR TERMINATED BY: |
Valid conveyance or death. Mutual consent by all tenants or by sale.
Joint interest cannot be heired unless he or she is the only survivor |
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When there is only one surviving joint tenant, he or she takes the title as what? |
Title in severalty in which they can convey the property by deed or leave it to his heirs. |
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ESTATE OWNED BY HUSBAND AND WIFE |
Tenancy by the Entireties (Estate by the Entireties) |
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MOST COMMON FORM OF CO-OWNERSHIP |
TENANCY-IN-COMMON OR ESTATE IN COMMON
THIS IS ASSUMED UNLESS SOME OTHER FORM OF TENANCY IS CLEARLY SPECIFIED. |
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Co-tenants hold title to property in fee simple, in their own names. They may have equal or unequal ownership interests, but each co-tenant has a unity of possession |
Tenancy-in-Common (Estate in Common) |
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WHICH UNITY IS REQUIRED IN TENANCY-IN-COMMON? |
UNITY OF POSSESSION |
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If tenants-in-common or joint tenants cannot agree to a termination of tenancy or severance of interests, WHAT IS THE JUDICIAL REMEDY? |
PARTITION SUIT
TENANCY BY ENTIRETIES TYPICALLY CANNOT BE SEVERED BY PARTITION SUIT. HOWEVER A COURT MAY ORDER DIVISION OR SALE OF THE PROPERTY AGAINST THE WISHES OF ONE OR BOTH TENANTS IN DIVORCE PROCEEDINGS
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A ___________________ is an association of two or more persons who carry on a business for profit as co-owners. |
Partnership |
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Title to real estate is in the name of the partnership. |
Tenancy in partnership (partnership tenancy) |
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WHAT ARE THE 2 TYPES OF PARTNERSHIP TENANCIES |
GENERAL & LIMITED PARTNERSHIPS |
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In a general partnership all owners are general partners and, as such, each is individually and totally liable for debts and obligations of the partnership.This partnership tenancy does not need to be in writing, though it is always advisable to get agreements in writing when possible. |
GENERAL PARTNERSHIP |
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THIS PARTNERSHIP MUST BE IN WRITING AND FILED IN THE OFFICE OF THE SECRETARY OF STATE |
LIMITED PARTNERSHIP |
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This partnership is composed of one or more general partners, and one or more limited partners. General partners control the operation of the business and are individually and totally liable for debts and obligations. Limited partners must make a definite, declared investment of money or property, but not services of any kind. Limited partners are liable only to the extent of their investment. However, if a limited partner takes part in the control of the business, he automatically becomes liable as a general partner (individually and totally). |
LIMITED PARTNERSHIP |
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Where at fee simple title to real estate can also be held in a trust. The real estate is conveyed by a trustor (grantor) to a trustee which the trustee holds the the title to real estate and must manage it for the beneficiary. |
Tenancy in trust. |
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If a buyer wants to maintain confidentiality, he can place title to a piece of real property in a ______________. |
Land Trust |
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INDIVIDUAL OWNERSHIP OF PROPERTY |
TENANCY IN SEVERALTY |
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AN ESTATE OF TWO OR MORE OWNERS, EACH WITH RIGHT OF SURVIVORSHIP |
JOINT TENANCY |
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CO-OWNERS WITHOUT SURVIVORSHIP RIGHTS |
TENANCY-IN-COMMON |
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A PARTNERSHIP THAT HAS LIMITED AND GENERAL PARTNERS |
LIMITED PARTNERSHIP |
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ALL PARTNERS ARE INDIVIDUALLY AND TOTALLY LIABLE FOR OBLIGATIONS OF THE PARTNERSHIP |
GENERAL PARTNERSHIP |
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HOLDS TITLE FOR SOMEONE ELSE |
TRUSTEE |
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A METHOD OF HOLDING TITLE THAT MAINTAINS THE CONFIDENTIALITY OF THE TRUE OWNER |
LAND TRUST |
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Fee simple title can be held in a trust. |
TRUE |
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It is possible for the creator of the trust, the trustor, and the beneficiary to be the same person. |
TRUE |
|
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Husband and wife can sue to partition an estate held by the entireties. |
FALSE
Tenancy-in-common and joint tenancy can be severed by a partition action, but not tenancy by the entireties. |
|
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If one owner in a joint tenancy sells his interest, the purchaser will be a joint tenant as well.
(A) True; (B) False. |
FALSE
The purchaser would not have the unity of time, and would become a tenant in common, not a joint tenant. |
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Tenancy-in-common is the most common form of co-ownership. |
TRUE |
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A tenancy by the entireties will be severed by divorce. |
TRUE |
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A tenancy in severalty exists when: |
(C) One person owns real estate;
Ownership in severalty means sole ownership or individual ownership. |
|
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Which of the following types of ownership CANNOT be created by operation of law, but must be created by the parties' expressed intent: |
(C) Joint tenancy;
Joint tenancy involves an automatic right of survivorship, and therefore requires an agreement between the parties. |
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What is the one unity in tenancy-in-common ownership: |
(B) Possession;
In tenancy-in-common, all owners have the right to possess the entire property. |
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Property held in joint tenancy passes to the ______ upon the death of one of the owners. |
(D) Surviving owners.
The surviving joint tenant(s) would automatically receive ownership of the interest of the deceased. |
|
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A married woman may NOT own property with a man other than her husband as: |
(C) Tenants by the entireties;
Tenancy by the entireties is only available to married couples. |
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A CLAIM OR ENCUBMRANCE AGAINST THE PROPERTY OR TITLE TO REAL ESTATE OF ANOTHER AS SECURITY FOR A DEBT OR CHARGE |
LIEN |
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|
Legally enforceable rights to the limited use of another’s land |
EASEMENTS |
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A LIEN LEVIED AGAINST SPECIFIC PROPERTY BY THOSE WHO FURNISH MATERIALS AND/OR LABOR FOR ITS CONSTRUCTION, IMPROVEMENTS, OR REPAIRS. |
MECHANICS LIEN |
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A LEGAL RIGHT OR INTEREST HELD BY ANOTHER THAT REDUCES THE VALUE OF ONE'S PROPERTY |
ENCUMBRANCES |
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MORTGAGES, LEASES, AND LIENS ARE EXAMPLES OF ____________________? |
ENCUMBRANCES |
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T/F: Easements can be held by private citizens or by governments |
TRUE |
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T/F: If a lien is not released prior to sale, the buyer buys the property subject to all existing liens and other encumbrances. |
TRUE |
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When dealing with liens as encumbrances affecting title, it is necessary to consider these 3 things: |
* priority of liens;
* satisfaction of liens; and * enforcement of liens. |
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|
REFERS TO THE SEQUENCE IN WHICH IT A LIEN WOULD BE PAID OFF IN A LIQUIDATION. |
PRIORITY OF A LIEN |
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WHICH LIENS TAKE PRECEDENCE? |
REAL ESTATE PROPERTY TAX LIENS AND ASSESSMENTS TAKES PRECEDENCE OVER OTHER TYPES OF LIENS REGARDLESS OF THIER DATE OF RECORDING. |
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LIENS
Specific |
* Property taxes
* Special Assessments * Mechanic's Liens * Lis Pendens |
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LIENS
General |
* Federal taxes
* Court judgments |
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|
LIENS
Specific |
* Vendor's liens
* Vendee's liens |
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|
LIENS
Specific |
* Mortgages
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|
3 CLASSIFICATION OF LIENS |
* General or specific;
* Voluntary or involuntary; and * Statutory or equitable. |
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A lien that is directed against the individual debtor and therefore attaches to all of his property, both personal and real. Usually is a result from court judgments, IRS taxes, estate and inheritance taxes. |
General Lien |
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A lien that is attached to one specific parcel of real estate. These do not attach to people. |
A specific (or special) lien |
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Mortgage liens, property tax liens, special assessment liens, utility liens, and mechanic’s liens are example of? |
Specific or Special Liens |
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A lien entered into by agreement of the parties |
voluntary lien
(mortgage given to secure a promissory note) |
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Lien created by operation of law |
Involuntary Lien - Statutory (Legislated) - Equitable results from (1) a private, written contract that shows an intention to pledge property as security for a debt, or (2) a court decision based on English common law and a sense of “fairness.”
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A lien that is established by, or results from, laws passed by the legislature. (Created by Law) |
statutory lien |
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Lien that is specific, statutory, involuntary liens filed against real property at the beginning of each tax year (generally January 1) |
Property Tax Liens |
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__________________ means that they take priority over other types of liens regardless of when prior liens were recorded. |
Superior Liens (ie Property Tax Liens or Special Assessment) |
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Lien that is specific, statutory, usually involuntary liens filed against those real properties that will benefit from a proposed public improvement. |
Special Assessment |
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Lien that is general, statutory, involuntary liens imposed for non-payment of federal estate taxes, federal income taxes, or payroll taxes. |
Federal tax liens |
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|
T/F: FEDERAL TAX LIENS ARE SUPERIOR TO PROPERTY TAX AND SPECIAL ASSESSMENT? |
FALSE
Real estate tax and special assessment liens are superior to federal tax liens. However, some federal tax liens (such as liens involving federal estate taxes) are superior to most other liens, regardless of the date of recording. |
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A lien that is specific, equitable, voluntary liens filed by a mortgagee against a piece of real property that has been pledged as collateral for repayment of a debt. |
Mortgage liens |
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A lien that is specific, equitable, involuntary liens filed by a seller (vendor), against the property sold, in the amount of any unpaid purchase price. |
Vendor’s liens |
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A lien that is specific, statutory, involuntary liens filed against real property by materialmen or mechanics (laborers) who have supplied materials for, or worked on, improvements, repairs, or maintenance of real property. |
Mechanic’s liens |
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A lien that is general, statutory, involuntary liens that attach to a debtor’s real and personal property |
Judgment liens |
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This lien is the result of a legal process involving the seizure of a defendant’s real and personal property and holding it in the custody of the court as security, while a lawsuit is being decided. |
Attachment liens |
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Lis pendens |
“action pending.” - Gives constructive notice to the world that an action affecting a particular piece of property has been filed and that the property is, or is about to become, involved in a lawsuit that may result in a judgment against the property. It is notice of a possible future lien. |
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A legally enforceable agreement between competent parties who agree to perform, or refrain from performing, certain acts for consideration. |
A Contract |
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|
A Contract refers to the _______________ ___ ________________ of the parties involved |
Meeting of the minds |
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|
What are the 5 primary elements of every contract? |
* Legally competent parties;
* Clearly identified property description; * A meeting of the minds as to the essential terms; * Consideration; and * A legal purpose. |
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|
Contracts with a minor are said to _______________ by the minor? |
Voidable |
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When an offer has been accepted we that there has been a ______________________ |
Meeting of the minds or mutual agreement |
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The offeror (one making the offer) may withdraw his offer at any time prior to _______________________? |
Acceptance by the offeree (the one receiving the offer) |
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Offers may be terminated by what 6 ways? |
* Acceptance
* Withdrawal prior to acceptance. * Rejection by offeree. * Counteroffer * Lapse of time when the offerer has set a deadline for acceptance. * Death or insanity of either party prior to acceptance. |
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Something of value given in return for the act or promise of another. |
Consideration |
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Term referring that contracts must have legality of object and cannot require one to break the law |
Legal Purpose |
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This requires certain types of transaction be in writing in order to be binding or enforceable |
Statute of Frauds |
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Contract that has all of the essential elements and is binding all parties and usually enforceable in a court of law? |
Valid Contract |
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A contract that has one or more of the five essential elements missing, and thus has no legal force or binding effect? |
Voidable Contract |
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|
Fair Housing Laws state you can discriminate based on |
Race, Religion, Sex, Color, Handicap Familial status |
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A contract that appears to have all five essential elements but is capable of being voided by one of the parties. |
Voidable Contracts |
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Contracts made with a minor are considered to be ____________________ |
Voidable |
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Contracts made under duress are considered to be _______________ |
Voidable |
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Contracts made with an insane person are considered to be____________________ |
Void |
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Contracts that require some to break the law such as gambling are considered to be ___________ |
Void |
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Contracts that has a restrict convenant that discriminates based on race, religion, sex, color, handicap, or familial status are considered __________________________ |
Void |
|
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This term refers to any form of deceit by which one party intentionally attempts to gain unfair advantage over another. |
Fraud |
|
|
This term refers to making a false statement or concealment of material facts. |
Misrepresentation
This can intentional (considered FRAUD) This can be unintentional |
|
|
This term refers to an error or misunderstanding |
A Mistake |
|
|
A contract that contains a "mistake" or misunderstanding is considered __________________ |
Voidable |
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Term that refers to a harmless statement of exaggeration that a reasonable person would be expected to recognize. |
Puffing
Examples: “This is the most beautiful house in the city,” and “You will never find a buy like this again.” Puffing does not constitute misrepresentation. |
|
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Term that refers to the use of force or threatened force |
Duress |
|
|
Taking advantage of a grieving widow is an example of __________________________. |
Undue influence |
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This legal term refers to state laws that prescribe time limits on legal actions or lawsuits seeking enforcement of contracts must be started within a specified period of time. |
Statute of Limitations |
|
|
T/F: Real estate sales contracts survive the death of either party? |
TRUE |
|
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Term that refers to the termination of an agreement |
Discharged |
|
|
Ways that a contract may be discharged |
* Performance;
* Abandonment by one party or both parties; * Lapse of time, whether specified, or a reasonable time; * Revocation by a party legally entitled to revoke; * Breach by one party, giving the other party the right to terminate; and * Rescission by a purchaser if exercised during the legally allowed time frame. |
|
|
A _____________ occurs when there is a violation of any of the terms or conditions of a contract without legal excuse and the injured party can seek action for money or an action for specific performance. |
Breach of Contract |
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|
Legal term that refers "of or pertaining to money" |
Pecuniary
Pecuniary Loss = Financial Loss |
|
|
Legal remedy that terminates the contract and returns the parties to their original state. |
Rescission. |
|
|
A contract may be rescinded by a ____________________ between all parties
|
Mutual agreement
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A type of contract which all terms and conditions are mentioned and agreed to in writing or orally. |
Express Contract |
|
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A type of contract in which certain terms have not been expressly stated but they can be inferred from the nature of the transaction or conduct of the parties. |
Implied Contract |
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|
A type of contract when one party obligates to perform without receiving a promise of performance from the other party |
Unilateral Contract |
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|
A type of contract when both parties make promises of performance |
Bilateral Contract |
|
|
An open listing contract in which the seller agrees to pay a commission to the first broker who brings a ready, willing and able buyer is an example of a _____________ contract |
Unilateral |
|
|
A real estate contract is an example of a _________________ contract |
Bilateral |
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|
This contract refers to when both parties has not yet performed |
Executory Contract |
|
|
This contract refers to when both parties have both performed |
Executed Contract |
|
|
A sales contract where a seller has pledged to sell, a buyer pledged to buy, but neither has yet performed is an example of a _______________ contract |
Executory |
|
|
A sales contract becomes executed at closing upon ______________________________________. |
Upon delivery and acceptance of the deed. |
|
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The term that refers to an unconditional promise intended as binding |
Covenant |
|
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The breach of a written covenant in a contract would usually _____________________________ |
Entitle injured party to collect damages |
|
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A term in a contract that refers to something that has be established or agreed upon as a prerequisite to doing or taking effect of something else. |
A Condition |
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|
CCRs |
Private COVENANTS, CONDITIONS AND RESTRICTIONS |
|
|
Term that refers to the transfer of the right, title or interest of person to another. |
An Assignment |
|
|
A lega document that authorizes a person to act on someone's behalf |
Power of Attorney |
|
|
Legal term that refers to the the person that is authorized to act on someone's behalf. |
Attorney-in-fact |
|
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A legal doctrine that stops, or prevents, a person from asserting certain rights, or stating certain facts, if such action is judged to be inconsistent with, or contrary to, a previous position. |
Estoppel |
|
|
A legal document that clarifies the exact amount of debt owed by one party to another party and/or the situation between the parties as of a certain, specified date |
Estoppel Certificate |
|
|
A contract for the sale of land where payments are made by installments and title does not pass until the last payment is made |
Contracts of Deeds
or Conditional Sales Contract or Installment Sales Contract |
|
|
A legal document used to secure performance of an obligation |
Mortgage |
|
|
An agreement or a pledge between 2 or more parties
|
Covenant
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Private convenants and conditions imposed on the use of real property |
Restrictions |
|
|
A legal doctrine that stops a person from asserting rights |
Estoppel |
|
|
Courts will not enforce contracts that require one to do something that is illegal. |
TRUE |
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2. A real estate contract does not survive the death of one of the parties. |
FALSE |
|
|
An open listing contract in which the seller agrees to pay a commission to the first broker who produces a ready, willing, and able buyer is a bilateral contract. |
FALSE
This is an example of a unilateral contract, since only the seller made any promise. |
|
|
A listing contract signed by both the seller and the broker, in which the seller promises to pay and the broker promises to do things such as advertise and show the property, is a unilateral contract. |
FALSE
Since both parties have made promises, this is an example of a bilateral contract. |
|
|
When someone assigns his contract to buy real estate to a third party, he, the assignor, is no longer liable for the performance of the contract. |
FALSE
The assignor remains secondarily liable for the obligation. |
|
|
"Time is of the essence" means a reasonable time within which a contract (or portion of a contract) must be performed. |
FALSE
The phrase "time is of the essence" means that the contract must be performed within the time period specified in the contract. |
|
|
A novation is the substitution of a new legal obligation for an old one. |
TRUE |
|
|
It is necessary to prove that money damages were sufficient in order to rescind a contract. |
FALSE
Rescission does not require proof of damages. |
|
|
Oral leases for a period of a year or less do not fall within the Statute of Frauds that requires many contracts to be in writing. |
TRUE
Leases of one year or less do not always have to be in writing to be enforceable. (Leases of more than one year must be in writing.) |
|
|
A state law that sets a time frame within which someone must bring a lawsuit is called a statute of limitations. |
TRUE |
|
|
Which of the following is subject to the Statute of Frauds: |
(C) Two-year lease for real property;
Leases of more than one year are subject to the Statute of Frauds and therefore must be in writing. |
|
|
When a seller makes a counteroffer, which of the following statements is NOT true: |
(A) It is a partial acceptance of the original offer;
A counteroffer is considered a rejection of the earlier offer. |
|
|
John, an adult, entered into a contract with Paul, who is 16 years old. when John learned that Paul was a minor he decided to terminate the contract. Which of the following statements is true: |
(D) The contract is valid and binding only on John.
The contract is binding only on the adult. It is voidable by the minor. |
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4. Which of the following is not always required of a valid contract? |
(C) Written agreement;
Not all contracts must always be in writing. |
|
|
One party to a contract has the right to change his mind and not perform as agreed. This right:
(A) Can be a condition of the contract itself; (B) Can be created by statute; (C) May require payment of monetary damages; (D) Could be any of the above. |
(D) Could be any of the above.
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A(n) ________________ relationship is created when the client delegate the agent the right to act on his behalf in a business transcation |
Agency Relationship |
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|
A ___________ agent is authorized to perform a particular act or transaction. |
Special Agent |
|
|
A ______________ agent is authorized to perform many different services within one general field. |
General Agent |
|
|
A ______________ agent is given the legal power to transact matters of all types on behalf of the principal. |
Universal Agent |
|
|
A _____________ is an agent of an agent |
Subagent |
|
|
A _______________ is a person who is placed in position of trust to act for someone else's benefit. Implies a position of trust and confidence. |
Fiduciary |
|
|
A broker is typically what type of agent unless otherwise stated. |
Special Agent |
|
|
A property manager is what type of agent |
General Agent |
|
|
A licensed salesperson is the general agent for whom? |
The employing broker |
|
|
A person with an unlimited power-of-attorney would be considered a(n) __________________ agent |
Universal Agent |
|
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A subagent lawfully appointed by a listing broker, must represent the interests of the _________________ |
Client |
|
|
What are the 6 agent duties |
* Loyalty
* Obedience * Disclosure * Confidentiality * Reasonable care and due diligence * Accounting |
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|
_________ is the most fundamental duty of the agent to the client? |
Loyalty |
|
|
A duty of an agent where all legal instructions of the client must be followed without exception. |
Obedience |
|
|
Any arrangements concerning the sharing of compensation, financial conditions of the other party to the transaction, and sales of comparable properties also must be _________________________. |
Disclosed to the client. |
|
|
Refers to any any information given to the licensee by the client must be kept confidential if the client could suffer potential harm by disclosing this information. |
Confidentiality |
|
|
An exception of the confidentiality between an agent and client would be... |
Disclosure of material defects in the property or misrepresent the property. |
|
|
An agent's duty that refers to the action of staying informed about anything that might affect the client’s decision. Licensees are expected to be more knowledgeable than the average person but are not expected to have the knowledge of other professionals such as lawyers, engineers, or accountants. |
Reasonable care and due diligence |
|
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An agent's duty where all money and property held by licensee for the client must be protected and accounted for by the licensee. |
Accounting Duty |
|
|
Client Duties to the Agents |
Availability Informed Compensation Indemnification |
|
|
Reasons for Termination of Agency
|
* death or incapacity of either party;
* destruction or condemnation of the property; * expiration of the agency; * mutual agreement; * renunciation by the agent/licensee (possible lawsuits); * revocation by the principal/client (possible lawsuits); * by operation of law (such as bankruptcy of the principal); and * by completion of the agency (performance). |
|
|
A real estate broker who represents both the buyer and the seller in a real estate transaction is a _________ agent |
Dual Agent |
|
|
Escrow agents are example of _________ agents |
Special and Dual Agents |
|
|
The act of mixing or mingling personal funds with funds that should be held in trust for others in a separate escrow account. |
Commingling |
|
|
Term that refers to the misappropriation of entrusted funds |
Conversion |
|
|
Funds deposited in escrow will necessarily include monies that will ultimately belong to the licensee. This will not constitute commingling as long as: |
(1) the broker can clearly identify the total funds that belong to him and keeps an accounting of such
(2) withdrawals are made at least every six months. |
|
|
This means that the title passes when the deed is delivered into escrow |
The doctrine of relation-back
The delivery of the deed to the grantee is said to “relate back” to the date it was deposited into escrow. |
|
|
Generally, State laws require that escrow funds be: |
* deposited in a federally insured banking institution in the state where the agent or broker is doing business;
* be maintained in the same name by which the firm is licensed to do business; * be designated as an escrow account by the use of the term “escrow.” All such accounts, checks, and bank statements should be labeled “escrow”; and * be used for such funds as down payments, earnest money deposits, rental payments collected on behalf of an owner, rental security deposits, and monies advanced by buyers or sellers to cover closing expenses. |
|
|
Who is ultimately responsible of the escrow accounts? |
The Principal Broker |
|
|
Escrow account records are required to be kept in the __________________________ |
Principal broker’s place of business, or in a designated branch office |
|
|
___________________________ are the most common, and most serious, source of licensee discipline. |
Escrow Account Violations |
|
|
A person who has entered into a brokerage relationship with a licensee. |
Client |
|
|
A person who has not entered into a brokerage relationship with a licensee. |
Customer |
|
|
A licensee who has a brokerage relationship with both the seller and buyer. |
Dual Agent |
|
|
A relationship in which a real estate licensee acts for, or represents, a person in a real estate transaction. |
Agency |
|
|
An agency relationship that is implied by actions or words of the parties. |
Implied Agency |
|
|
To approve, sanction, or make valid. |
Ratify |
|
|
In many states, the Statute of Frauds applies to listing agreements. |
TRUE
The Statute of Frauds would require the listing to be in writing. |
|
|
A salesperson may receive compensation from any broker, not only from his or her employing broker. |
FALSE |
|
|
A broker earns his or her commission when the seller is presented an offer from a ready, willing and able buyer on the exact (or acceptable) terms of the listing. |
TRUE
While normally paid upon completion of the transaction, the commission is earned when the seller is presented with an offer from such buyer on the exact terms of the listing, or if the seller agrees to other terms. |
|
|
A salesperson need only disclose such offers to the seller-client that the salesperson thinks the seller-client will seriously consider. |
FALSE
The salesperson must disclose all offers to the client. |
|
|
The client may be obligated to compensate the salesperson for financial losses incurred as a result of performing duties for the client. |
TRUE
This is the clients duty of indemnification. |
|
|
If a seller has delivered a deed into escrow, but dies before the closing of the sale, the deed is not considered to have been delivered, and the sale need not be consummated. |
FALSE
The delivery of a deed into escrow relates back to the date of delivery. |
|
|
A salesperson can set up escrow accounts for each of his or her clients, in the name of the client and the salesperson. |
FALSE
The account must be opened in the name of the brokerage firm. |
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Escrow account violations are the most common, and most serious, source of licensee discipline. |
TRUE |
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Unless agreed to in writing by all of the parties, the broker is not entitled to a commission unless the transaction has been consummated. |
TRUE |
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A broker must acknowledge the fact in the contract when accepting a non-negotiable deposit (for instance, promissory note or post-dated check). |
TRUE
This is material information that must be disclosed to the seller. |
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In agency representation, the employer is called the: |
(C) Client; |
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When a real estate broker is retained to perform one specific act for a client, it is known as: |
(B) Special agency; |
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An escrow account is maintained by a broker for the purpose of: |
(D) Impartial protection of both parties.
The purpose of an escrow account to protect money held in trust for other parties. |
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A general agency empowers the agent to: |
(B) Transact the client's affairs in a certain business;
General agency permits the agent to represent the client in a particular area, but not in all areas of the client's life. |
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A client is obligated to her agent for: |
(A) Indemnification against loss not caused by the agent;
The client is responsible for indemnification against loss not caused by the agent, but is not required to perform in the listing contract, nor is the client always required to reimburse the agent for expenses. |
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_____________ is the most popular reason cited for fair housing lawsuits filed against licensees |
Steering |
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Illegal practice where an agent directs members of a minority group away from certain neighborhoods and towards certain neighborhoods.
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Steering
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The illegal practice of inducing the sale of property or properties by overtly creating the impression that the neighborhood is about to change for the worse |
Blockbusting |
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The unfair denial of a mortgage loan or insurance policy. |
Redlining |
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For a lender to deny a loan due to the fact that the subject property was located in a deteriorating neighborhood is an example of ______________ |
Redlining |
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Illegally showing property only in specific areas in order to maintain or change the character of an area. |
Steering |
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Illegally inducing owners to sell by saying that "unwanted" or "undesirable" ethnics are moving into the area. |
Blockbusting |
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Includes single individuals, whether male or female. |
Families |
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One or more people under age 18 who are domiciled with a parent or other legal custodian. |
Familial Status |
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A person having a physical or mental impairment that substantially limits one or more major life activity. |
Handicapped Person |
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Title VIII of the Federal Civil Rights Act of 1968, as amended in 1974, prohibiting discriminatory housing practices based on race, color, national origin, religion, sex, familial status and handicap. |
Federal Fair Housing Act of 1968 |
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This law prohibited racial discrimination |
Civil Rights Act of 1866 |
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With respect to Fair Housing Laws, the term "familial status" is applicable if at least one member is under the age of 18, is pregnant, or has applied for custody of a minor child. |
TRUE |
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The Fair Housing Amendment Act of 1988 concerning handicapped access applies to all multi-family dwelling units, regardless of when they were built. |
FALSE
The law applies to multiple family dwellings with four or more units. |
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A seller who refuses to sell his home to a person from Afghanistan after the person has made a bona fide offer for the home is violating the Federal Fair Housing Law. |
This would be discrimination based on national origin or race |
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Some forms of housing for the elderly are exempt from Federal Fair Housing Laws. |
TRUE |
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A local ordinance that limits the maximum number of occupants permitted to occupy a dwelling would violate Fair Housing Laws. |
FALSE
Local laws can reasonably limit the number of occupants. |
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Who is required to comply with the Civil Rights Act of 1866? |
(D) Everyone, unless specifically exempted by law.
Unless specifically exempt, everyone is subject to the Civil Rights Act of 1866. |
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Claims filed with HUD for alleged Fair Housing violations must be filed within: |
(C) 1 year; |
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Which of the following is NOT specifically protected by fair housing statute: |
(C) Current drug users; |
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An agent may discriminate against a potential buyer on the basis of: |
(A) Inability to pay;
Buyers must be dealt with on the basis of the ability to purchase, not on racial, gender, or religious grounds. |
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The 1988 amendment to the Fair Housing Law affords protection on the basis of familial status. Which of the following best defines a family as it applies to this amendment: |
(C) A household in which there are children under the age of 18; |
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Which of the following is an example of blockbusting? |
(C) Soliciting listings based on a fear of racial change in an area; |
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All of the following are less than freehold estates, except: |
(A) Conditional fee estate; |
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A broker holding an earnest money deposit: |
(B) Is a trustee for her client; |
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If a seller breaches a valid and enforceable sales contract, the purchaser may: |
(D) Any one of the above.
The purchaser would normally have the right to choose any of these actions. |
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Under a net lease, which of the following is the tenant NOT required to pay: |
(D) Mortgage.
Even in a net lease, the mortgage payment is still the responsibility of the owner, not the tenant. |
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Which of the following is NOT required for a valid real estate sales contract: |
(A) Performance;
The contract would be valid whether or not there was performance. |
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A clause in a lease that provides for increases in rents due to changes in costs or taxes is known as a/an: |
(A) Escalator clause; |
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If an offer is rescinded, it is: |
(C) Terminated;
To rescind a contract is to cancel, or terminate it. |
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The amount of a broker's commission is: |
(B) Established by agreement between the broker and the client;
By law, commissions are negotiable between the broker and the client. |
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A contract between an adult and a minor is: |
(C) Voidable by the minor; |
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When may a counteroffer be withdrawn? |
(C) At any time before acceptance;
Offers of any kind may be withdrawn for any reason, or for no reason, prior to acceptance of the offer. |
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The Federal Fair Housing Act may be enforced by bringing complaints to: |
(B) The Department of Housing and Urban Development;
Complaints are filed with the Department of Housing and Urban Development (HUD). |
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If a seller deposits the deed with an escrow agent but the seller dies before it is delivered to the purchaser, the transfer of title becomes effective on the date the deed was deposited into escrow due to the: |
(D) Doctrine of relation-back. |
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When does title pass in an installment sales contract (land contract)? |
(C) When the debt has been satisfied;
In a land contract, the title does not pass until the buyer has paid off the contract. |
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Which of the following sets forth that contracts must be in writing to be enforced: |
(C) Statute of Frauds; |
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When a valid contract of sale is executory: |
(B) The buyer has equitable title;
A contract that has not been completed is executory. The buyer has equitable title and will receive legal title upon closing. |
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Baker gives a real estate licensee a power of attorney. The licensee is called a/an: |
(D) Attorney-in-fact. |
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An action to oust someone who is not legally in possession of real property is called: |
(B) Ejectment; |
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The type of lease most commonly used in shopping centers is a/an: |
(B) Percentage lease;
Shopping centers most often use percentage leases, where some or all of the rent is based on the gross sales of the tenant. |
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A forged deed is: |
(C) Void; |
