Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
235 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
Rights of government
|
PETE
Right to police powers Right to eminent domain Right to tax Right to escheat |
PETE
|
|
|
Littoral rights
|
Non moving body of water
Use of water bordering land May not divert water |
|
|
|
Riparian rights
|
Landowner entitled to share use of water
If water is nonnavigable-rights to the middle |
|
|
|
Real property
|
Land and real estate
|
|
|
|
Personal property
|
Aka chattel
Property that is moveable in nature ie: table or chair |
|
|
|
Personal property
|
Aka chattel
Property that is moveable in nature ie: table or chair |
|
|
|
Differentiating real property vs personal property
|
MARIA
Manner of attachment Appropriateness to use intended Relationship of parties Intent of parties Agreement to the contrary |
|
|
|
Fixtures
|
Items of personal property that become real once affixed to real estate
ie: light fixtures, cabinets |
|
|
|
Fixtures
|
Items of personal property that become real once affixed to real estate
ie: light fixtures, cabinets |
|
|
|
Physical characteristics of land
|
Immobility
Indestructibility Nonhomogeneity (no two are exactly alike) Nonfungible (not substitutable) |
|
|
|
Fixtures
|
Items of personal property that become real once affixed to real estate
ie: light fixtures, cabinets |
|
|
|
Physical characteristics of land
|
Immobility
Indestructibility Nonhomogeneity (no two are exactly alike) Nonfungible (not substitutable) |
|
|
|
Economic characteristics of land
|
Scarcity
Situs (location) Durability |
|
|
|
Types of legal property descriptions
|
Done by survey
Metes and bounds Government rectangular Lot and block Vertical |
|
|
|
Metes and bounds
|
Oldest method
Selected monument is POB(point of beginning), property is described by natural and artificial boundaries |
|
|
|
Metes and bounds
|
Oldest method
Selected monument is POB(point of beginning), property is described by natural and artificial boundaries Must end at POB Metes= measurement of length or distance Bounds=direction of course |
|
|
|
Government rectangular survey system
|
Adopted by federal government in 1787
Used by 30 of 50 states(not used by original 13 colonies, and Atlantic coast states except florida) Meridians- line that runs north/south Baselines- runs east/west These are divided into checks(24 miles square each) Check is divided into 16 townships(6 miles square each) townships divided into 36 sections (640 acres each) Read this description backwards |
|
|
|
Benchmarks
|
Permanent reference marks
Often pins or brass markers |
|
|
|
Lot and block system
|
Used by subdividers in platting subdivisions of land
Described by lot and block number of subdivision name, section, township, and range |
|
|
|
Vertical land descriptions
|
Used by condominium owners
Measured by datum |
+ Add a hint
|
|
|
Vertical land descriptions
|
Used by condominium owners
Measured by datum |
+ Add a hint
|
|
|
Encumbrances
|
An interest in real property that diminishes value
IE: lien Mortgage Easements and licenses Encroachments |
|
|
|
Easements
|
The right of way through the land of another
Aka right of ingress and egress(entering and leaving) |
|
|
|
Easement appurtenant
|
The right one party has to use the adjacent owners land
Accompanies a piece of land IE: shared driveways, party walls |
|
|
|
Dominant tenant
|
Party who receives the easement and aquires the benefit or gain over the other
|
|
|
|
Servient tenant
|
The owner giving the easement.
This is serving the other party. The easement is an encumbrance on the servient owners property |
|
|
|
License (in regard to easement)
|
An agreement between parties for an easement in gross.
Revocable at grantors option. Is not transferable and not assigned on sale of the property |
|
|
|
Personal easement
|
Cannot be mortgaged or assigned to a third party
Is limited to holders lifetime and does not automatically pass with the land |
|
|
|
Easement in gross
|
Personal or commercial
There is a servient tenant but no dominant tenant |
|
|
|
Commercial easement
|
Usually held by utility company or agency of government
IE: gas, water, sewer Only interest in land is right of use |
|
|
|
Easement of necessity
|
Examples: a landlocked owner
A party wall |
|
|
|
Encroachment
|
One owners property infringes onto another's land
Not covered by title insurance If encroachment has lasted long enough, an easement by prescription or even claim to tile by adverse possession |
|
|
|
Estate (land)
|
Legally recognized interest person has in real property
Estate defines quantity and refers to amount grantor is deeding to grantee |
|
|
|
Freehold estate
|
Ownership for indefinite duration
Includes : fee simple, fee simple defeasible, and life estate |
|
|
|
Fee simple absolute estate
|
All rights of ownership.
Can sell it, give it away, will it,or retain possession as long as desired. Is subject to governmental regs |
|
|
|
Escheat
|
Right of state to take property of an intestate without heirs
|
|
|
|
Eminent domain
|
Right of government to take property for public use upon just payment to the owner
|
|
|
|
Fee simple defeasible estate
|
Qualified fee
2 types: fee simple determinable Fee simple to a condition subsequent |
|
|
|
Fee simple determinable
|
Conditional, limits estate holder to terms set forth by grantor
If conditions are not held, property reverts to original owner or "revisioner" named by grantor Conditions Will be seen in deed as "as long as..." |
|
|
|
Fee simple to a condition subsequent
|
Same as determinable, however grantor must take action to regain possession of property
|
|
|
|
Life estate
|
Granted by an owner through a will or deed, or by law without owners consent
Estate holder, known as life tenant, loses all rights to estate upon death Life tenant may not Waste Bequeath Life tenant may Sell Lease Mortgage But receiver only gets rights of the tenant |
|
|
|
Legal life estates
|
Established by statute,
Include dower, curtesy, and homestead as a result of marriage |
|
|
|
Legal life estates
|
Established by statute,
Include dower, curtesy, and homestead as a result of marriage Protect marriage partners rights in property Property however can be willed to another |
|
|
|
Dower
|
Right wife has to husbands estate upon his death
Husband cannot sell without wife's consent Guarantees wife at least 1/3 of estate protecting her against creditors or disinherit |
|
|
|
Curtesy
|
Right husband has in deceased wife's property
Wife cannot sell without husbands consent |
|
|
|
Inchoate rights
|
Incomplete; unfinished, such as wife's right to husbands estate in dower rights. Does not take effect until his death
|
|
|
|
Curtesy
|
Right husband has in deceased wife's property
Wife cannot sell without husbands consent |
|
|
|
Inchoate rights
|
Incomplete; unfinished, such as wife's right to husbands estate in dower rights. Does not take effect until his death
|
|
|
|
Non freehold estates
|
Gives a possessory interest in real property for a definite period of time
Leasehold interests Conveyed by contract Include: lease for years, periodic estate, estate at will, tenancy at sufferance |
|
|
|
Deed
|
Written instrument conveying property
Gives tangible proof of title conveying property from grantor to grantee |
|
|
|
Deed
|
Written instrument conveying property
Gives tangible proof of title conveying property from grantor to grantee Must be properly executed, delivered and accepted for title to pass |
|
|
|
Title
|
Evidence of ownership
Declares quality of estate as defined in the deed Intangible |
|
|
|
A deed must contain
|
1. Competent parties
2.consideration(something of value) 3.words of conveyance (granting clause) 4.description of real estate 5. Restrictions 6.quantity or quality of interest being conveyed (habendum clause) 7. Signatures of grantors |
|
|
|
Types of deeds
|
General warranty deed
Special warranty deed Grant deed Bargain and sale deed Quitclaim deed Deed of trust Gift deed Deed of surrender Deed of release Correction deed Cession deed Special purpose deed (many types) |
|
|
|
Types of deeds
|
General warranty deed
Special warranty deed Grant deed Bargain and sale deed Quitclaim deed Deed of trust Gift deed Deed of surrender Deed of release Correction deed Cession deed Special purpose deed (many types) |
|
|
|
Forms of ownership
|
Joint tenancy
Tenancy in common Concurrent ownership Tenancy by the entirety Severalty ownership Multiple ownership |
|
|
|
Forms of ownership
|
Joint tenancy
Tenancy in common Concurrent ownership Tenancy by the entirety Severalty ownership Multiple ownership |
|
|
|
Joint tenancy
|
Ownership by 2 or more persons with right of survivorship.
Meaning when one dies the survivors obtain the property(does not pass to deceased's heirs) Must be stated in deed. And must be equal: Time Title Interest Possession If one sells his interest, joint tenancy ceases . New owner is tenant in common and 1st owners are joint tenants |
|
|
|
Forms of ownership
|
Joint tenancy
Tenancy in common Concurrent ownership Tenancy by the entirety Severalty ownership Multiple ownership |
|
|
|
Joint tenancy
|
Ownership by 2 or more persons with right of survivorship.
Meaning when one dies the survivors obtain the property(does not pass to deceased's heirs) Must be stated in deed. And must be equal: Time Title Interest Possession If one sells his interest, joint tenancy ceases . New owner is tenant in common and 1st owners are joint tenants |
|
|
|
Tenancy in common
|
Ownership by 2 or more persons without right of survivorship
|
|
|
|
Forms of ownership
|
Joint tenancy
Tenancy in common Concurrent ownership Tenancy by the entirety Severalty ownership Multiple ownership |
|
|
|
Joint tenancy
|
Ownership by 2 or more persons with right of survivorship.
Meaning when one dies the survivors obtain the property(does not pass to deceased's heirs) Must be stated in deed. And must be equal: Time Title Interest Possession If one sells his interest, joint tenancy ceases . New owner is tenant in common and 1st owners are joint tenants |
|
|
|
Tenancy in common
|
Ownership by 2 or more persons without right of survivorship
Ownership does not need to be equal Title may be taken at different times |
|
|
|
Forms of ownership
|
Joint tenancy
Tenancy in common Concurrent ownership Tenancy by the entirety Severalty ownership Multiple ownership |
|
|
|
Joint tenancy
|
Ownership by 2 or more persons with right of survivorship.
Meaning when one dies the survivors obtain the property(does not pass to deceased's heirs) Must be stated in deed. And must be equal: Time Title Interest Possession If one sells his interest, joint tenancy ceases . New owner is tenant in common and 1st owners are joint tenants |
|
|
|
Tenancy in common
|
Ownership by 2 or more persons without right of survivorship
Ownership does not need to be equal Title may be taken at different times |
|
|
|
Tenancy by the entirety
|
Can only be held by husband and wife
Entire rights go to surviving spouse Neither can convey property without the other |
|
|
|
Forms of ownership
|
Joint tenancy
Tenancy in common Concurrent ownership Tenancy by the entirety Severalty ownership Multiple ownership |
|
|
|
Joint tenancy
|
Ownership by 2 or more persons with right of survivorship.
Meaning when one dies the survivors obtain the property(does not pass to deceased's heirs) Must be stated in deed. And must be equal: Time Title Interest Possession If one sells his interest, joint tenancy ceases . New owner is tenant in common and 1st owners are joint tenants |
|
|
|
Tenancy in common
|
Ownership by 2 or more persons without right of survivorship
Ownership does not need to be equal Title may be taken at different times |
|
|
|
Tenancy by the entirety
|
Can only be held by husband and wife
Entire rights go to surviving spouse Neither can convey property without the other |
|
|
|
Concurrent ownership
|
Held by 2 or more persons in co-ownership as in joint tenants, tenants in common, partnership or corporation
|
|
|
|
Forms of ownership
|
Joint tenancy
Tenancy in common Concurrent ownership Tenancy by the entirety Severalty ownership Multiple ownership |
|
|
|
Joint tenancy
|
Ownership by 2 or more persons with right of survivorship.
Meaning when one dies the survivors obtain the property(does not pass to deceased's heirs) Must be stated in deed. And must be equal: Time Title Interest Possession If one sells his interest, joint tenancy ceases . New owner is tenant in common and 1st owners are joint tenants |
|
|
|
Tenancy in common
|
Ownership by 2 or more persons without right of survivorship
Ownership does not need to be equal Title may be taken at different times |
|
|
|
Tenancy by the entirety
|
Can only be held by husband and wife
Entire rights go to surviving spouse Neither can convey property without the other |
|
|
|
Concurrent ownership
|
Held by 2 or more persons in co-ownership as in joint tenants, tenants in common, partnership or corporation
|
|
|
|
Severalty ownership
|
Sole ownership by one person
|
|
|
|
Forms of ownership
|
Joint tenancy
Tenancy in common Concurrent ownership Tenancy by the entirety Severalty ownership Multiple ownership |
|
|
|
Joint tenancy
|
Ownership by 2 or more persons with right of survivorship.
Meaning when one dies the survivors obtain the property(does not pass to deceased's heirs) Must be stated in deed. And must be equal: Time Title Interest Possession If one sells his interest, joint tenancy ceases . New owner is tenant in common and 1st owners are joint tenants |
|
|
|
Tenancy in common
|
Ownership by 2 or more persons without right of survivorship
Ownership does not need to be equal Title may be taken at different times |
|
|
|
Tenancy by the entirety
|
Can only be held by husband and wife
Entire rights go to surviving spouse Neither can convey property without the other |
|
|
|
Concurrent ownership
|
Held by 2 or more persons in co-ownership as in joint tenants, tenants in common, partnership or corporation
|
|
|
|
Severalty ownership
|
Sole ownership by one person
|
|
|
|
Community property
|
7 states recognize this. Property aquired by either husband or wife during marriage is community property
|
|
|
|
General Warranty deed
|
Conveys the highest and most complete ownership
Grantors guarantee title against the whole world. Property is free of all liens, and grantor relinquishes all rights of themselves, heirs and predecessors |
|
|
|
General Warranty deed
|
Conveys the highest and most complete ownership
Grantors guarantee title against the whole world. Property is free of all liens, and grantor relinquishes all rights of themselves, heirs and predecessors |
|
|
|
Special warranty deed
|
Grantors guarantee title through themselves and heirs, not predecessors.
Free of encumbrances Time covered is time grantor owned property |
|
|
|
General Warranty deed
|
Conveys the highest and most complete ownership
Grantors guarantee title against the whole world. Property is free of all liens, and grantor relinquishes all rights of themselves, heirs and predecessors |
|
|
|
Special warranty deed
|
Grantors guarantee title through themselves and heirs, not predecessors.
Free of encumbrances Time covered is time grantor owned property |
|
|
|
Grant deed
|
Warranties as in warranty deed but are created by grantor themselves.
|
|
|
|
General Warranty deed
|
Conveys the highest and most complete ownership
Grantors guarantee title against the whole world. Property is free of all liens, and grantor relinquishes all rights of themselves, heirs and predecessors |
|
|
|
Special warranty deed
|
Grantors guarantee title through themselves and heirs, not predecessors.
Free of encumbrances Time covered is time grantor owned property |
|
|
|
Grant deed
|
Warranties as in warranty deed but are created by grantor themselves.
|
|
|
|
Bargain and sale deed
|
Contains no warranties.
Grantors do acknowledge they have interest in the real property |
|
|
|
General Warranty deed
|
Conveys the highest and most complete ownership
Grantors guarantee title against the whole world. Property is free of all liens, and grantor relinquishes all rights of themselves, heirs and predecessors |
|
|
|
Special warranty deed
|
Grantors guarantee title through themselves and heirs, not predecessors.
Free of encumbrances Time covered is time grantor owned property |
|
|
|
Grant deed
|
Warranties as in warranty deed but are created by grantor themselves.
|
|
|
|
Bargain and sale deed
|
Contains no warranties.
Grantors do acknowledge they have interest in the real property |
|
|
|
Quitclaim deed
|
Gives no warranties
Grantors "quit their claim" Grantee receives whatever interest the grantors have Often used to remove a cloud on the title or a defect of title |
|
|
|
Deed of trust
|
A deed to secure payment of a debt held in trust by a third disinterested party
|
|
|
|
Deed of trust
|
A deed to secure payment of a debt held in trust by a third disinterested party
|
|
|
|
Gift deed
|
Used to donate real property
|
|
|
|
Deed of trust
|
A deed to secure payment of a debt held in trust by a third disinterested party
|
|
|
|
Gift deed
|
Used to donate real property
|
|
|
|
Deed of surrender
|
Sometimes used in place of quitclaim to convey interest of a life tenant or remainderman
|
|
|
|
Deed of release
|
Issued when mortgage is paid in full
|
|
|
|
Deed of release
|
Issued when mortgage is paid in full
|
|
|
|
Correction deed
|
Used to correct an error
|
|
|
|
Deed of release
|
Issued when mortgage is paid in full
|
|
|
|
Correction deed
|
Used to correct an error
|
|
|
|
Cession deed
|
Given by subdividers when dedicating streets to county or city
|
|
|
|
Special purpose deeds
|
Used to comply with certain legal purposes, court ordered.
Sheriffs deed Administrators deed Tax deed Executors deed Guardians deed Directors deed |
|
|
|
Bundle of rights
|
Legal rights an owner of real estate aquires
Right to possession Use Enjoyment Right to sell Will Mortgage |
|
|
|
Implied contract
|
Created by an act. Not written not explicitly stated orally.
Aka ostensible contract Not enforceable |
|
|
|
Implied contract
|
Created by an act. Not written not explicitly stated orally.
Aka ostensible contract Not enforceable |
|
|
|
Express contract
|
Written or oral, but ALL written contracts are express
|
|
|
|
Implied contract
|
Created by an act. Not written not explicitly stated orally.
Aka ostensible contract Not enforceable |
|
|
|
Express contract
|
Written or oral, but ALL written contracts are express
|
|
|
|
Bilateral contract
|
Promise on both parties to the contract
|
|
|
|
Unilateral contract
|
Promise on part of one party to complete contract
IE: listing contract Seller is bound, agent is protected and will be compensated, but does not bind agent to sell property |
|
|
|
Unilateral contract
|
Promise on part of one party to complete contract
IE: listing contract Seller is bound, agent is protected and will be compensated, but does not bind agent to sell property |
|
|
|
Executory contract
|
A contract that has not yet been completed
IE: A purchase agreement in which the seller has not yet transferred title |
|
|
|
Executed contract
|
Performance has completely taken place
|
|
|
|
Executed contract
|
Performance has completely taken place
|
|
|
|
Dual contract
|
When real estate is sold or purchased it is illegal to have dual contracts with each containing different purchase price
|
|
|
|
Requirements for contract validity
|
Offer and acceptance
Consideration Capacity of parties Legality of the object Written and signed contract |
|
|
|
Valid contract
|
Contains all requirements for validity
Is enforceable by law if one defaults |
|
|
|
Void contract
|
Has no legal force even if it contains all elements. Results when:
1. Contract was entered into for an illegal purpose 2. Contract cannot be completed due to operation of law 3. An act of nature prevents contract from being completed |
|
|
|
Void contract
|
Has no legal force even if it contains all elements. Results when:
1. Contract was entered into for an illegal purpose 2. Contract cannot be completed due to operation of law 3. An act of nature prevents contract from being completed |
|
|
|
Voidable contract
|
One person may cancel the contract
IE: one is a minor, or someone acted under duress or undue influence |
|
|
|
Unenforceable contract
|
Appears to be valid but cannot be enforced
Ie: an oral agreement that was not put into writing |
|
|
|
Misrepresentation
|
An erroneous statement made with intent to decieve
|
|
|
|
Fraud
|
An outright attempt to cheat someone
|
|
|
|
Fraud
|
An outright attempt to cheat someone
|
|
|
|
Mistake
|
Change of heart does not void a contract
|
|
|
|
Duress
|
Occurs when coercion, threat, or force overcomes a persons will
|
|
|
|
Performance of a contract
|
Terms should state when performance of contract is to transpire. A Set date on a purchase contract.
If a contract does not contain set date, should be performed within a reasonable time |
|
|
|
Assignment of a contract
|
All contracts are assignable unless they state to the contrary
Assignor- holder of contract Assignee- receiver of contract Assignee receives all rights in contract as stated |
|
|
|
Novation
|
Substitution of new contract for existing contract
|
|
|
|
Discharged contract
|
Completed contract
|
|
|
|
Discharged contract
|
Completed contract
|
|
|
|
Failed discharge of contract
|
1. Damage to the property
2 . death 3 . revision of contract by mutual agreement 4. Partial performance |
|
|
|
Discharged contract
|
Completed contract
|
|
|
|
Failed discharge of contract
|
1. Damage to the property
2 . death 3 . revision of contract by mutual agreement 4. Partial performance |
|
|
|
Statute of limitations
|
A set time limit when one may claim damages
Varies among states |
|
|
|
Discharged contract
|
Completed contract
|
|
|
|
Failed discharge of contract
|
1. Damage to the property
2 . death 3 . revision of contract by mutual agreement 4. Partial performance |
|
|
|
Statute of limitations
|
A set time limit when one may claim damages
Varies among states |
|
|
|
Breach of contract
|
Unless mutually agreed upon, a contract not performed is considered breached
|
|
|
|
Discharged contract
|
Completed contract
|
|
|
|
Failed discharge of contract
|
1. Damage to the property
2 . death 3 . revision of contract by mutual agreement 4. Partial performance |
|
|
|
Statute of limitations
|
A set time limit when one may claim damages
Varies among states |
|
|
|
Breach of contract
|
Unless mutually agreed upon, a contract not performed is considered breached
|
|
|
|
Remedies for breach of contract
|
Specific performance is a remedy in court compelling defendant to carry out terms of contract
|
|
|
|
Breach of contract (by buyer) in purchase of property
|
1. Seller may rescind contract and release buyer from any obligation
2. Seller may retain earnest money and declare it forfeited as liquidated damages 3. The seller may resell property and sue buyer for the difference if a loss occurs on 2nd sale 4. Seller may sue for balance of the purchase price |
|
|
|
Breach of contract (by seller) in purchase of property
|
Buyer may
1. Agree to rescind contract and receive earnest money back 2. Sue for specific performance 3. Bring action for money damages against seller |
|
|
|
Acceleration clause
|
Fully matures performance of a contract upon breach of contract
Commonly used in mortgage aggreements |
|
|
|
Agency relationship
|
Agency occurs when one party appoints another to act on his behalf in transacting business with a third party
|
|
|
|
Agency relationship
|
Agency occurs when one party appoints another to act on his behalf in transacting business with a third party
|
|
|
|
Fiduciary responsibility
|
Real estate agency relationship implies fiduciary responsibility
The agent is expected to exercise skill and knowledge in negotiating and keeping clients best interest as focus |
|
|
|
Principle
|
Client
|
|
|
|
Principle
|
Client
|
|
|
|
Customer
|
Party with whom agent does not yet have an agency relationship
|
|
|
|
Principle
|
Client
|
|
|
|
Customer
|
Party with whom agent does not yet have an agency relationship
|
|
|
|
Special agency
|
Principle and agent create relationship for one specific act
1. Limited time 2. Limited purpose 3. Limited authority |
|
|
|
General agency
|
Agent given greater authority
Can literally "speak "for the client Guidelines are set out |
|
|
|
Universal agency
|
Power of attorney
|
|
|
|
Designated agency
|
Broker appoints one agent for seller and one for buyer when both agents are from same broker
|
|
|
|
Subagency
|
Representing another agents client
Must be authorized by both client and designated broker |
|
|
|
Seller agency
|
When property is listed the real estate firm represents the seller
Is special agency |
|
|
|
Seller agency
|
When property is listed the real estate firm represents the seller
Is special agency |
|
|
|
Buyer agency
|
Representing the buyer
Have fiduciary responsibility to buyer Commission must be spelled out in agency agreement with buyer Agent must notify listing agency of agreement at first contact And that either 1. Buyer is paying buyers agency fee or 2. Agent acting as buyers agent and expects normal commission split |
|
|
|
Dual agency
|
Broker represents both parties
Many states require consensual dual agency disclosure in writing |
|
|
|
Dual agency
|
Broker represents both parties
Many states require consensual dual agency disclosure in writing |
|
|
|
Transactional agent
|
No representation by agent
Acts as an intermediary to the transaction No fiduciary responsibility to either party since no agency relationship has been formed |
|
|
|
Agents responsibility when seller is principle
|
1. Loyalty and honesty
2. Obedience 3. Disclosure 4. Skill 5. Confidentiality 6. Accounting |
|
|
|
Agents duties when buyer is client
|
1. Loyalty and honesty
2. Obedience 3. Disclosure 4. Reasonable skill and care 5. Confidentiality 6. Accounting |
|
|
|
Agents responsibility when seller is principle
|
1. Loyalty and honesty
2. Obedience 3. Disclosure 4. Skill 5. Confidentiality 6. Accounting |
|
|
|
Agents duties when buyer is client
|
1. Loyalty and honesty
2. Obedience 3. Disclosure 4. Reasonable skill and care 5. Confidentiality 6. Accounting |
|
|
|
When buyer is customer
|
1. Disclosure
2. No misrepresentation 3. Presentation of offers 4. Good service 5. Information |
|
|
|
Customer vs client
|
Customer and agent have no agency relationship. Must be sure customer understands this.
Client- becomes a client when agent and customer have a formal agency agreement |
|
|
|
Express vs implied
|
Express- agency relationship is disclosed
Implied- when parties are led to believe someone is their agent |
|
|
|
Express vs implied
|
Express- agency relationship is disclosed
Implied- when parties are led to believe someone is their agent |
|
|
|
Agency by ratification
|
Event takes place and is ratified and agreed upon after the event
|
|
|
|
Disclosure should be made when?
|
At earliest practical opportunity during or following first substantial contact with party involved
In most states |
|
|
|
Effect of dual agency on agents duties
|
With written consent of all parties enters dual agency.
Has responsibility to act on best interests of both parties equally Cannot disclose 1. That buyer is willing to pay more 2. That seller will accept less 3. The motivating factors of either buyer or seller 4. That buyer or seller will agree to financing terms other than those offered |
|
|
|
COALD
|
Common law agency duties=
Care Obedience Accounting Loyalty Disclosure |
|
|
|
Physical descriptions of property
Land and building area |
Measured by square feet,
Square miles Legal descriptions |
|
|
|
Physical descriptions of property
Land and building area |
Measured by square feet,
Square miles Legal descriptions |
|
|
|
Physical property description
Construction types and materials |
Onsite construction
Offsite construction (modular, manufactured) Materials include brick, concrete, stone, wood, stucco, man made |
|
|
|
Police power
|
Governments right to impose taxes, zoning, laws, statutes
|
|
|
|
Condemnation
|
Judicial proceeding to impose eminent domain
Taking of private property for public use |
|
|
|
Property taxes
|
Taxes collected on real property according to its value
Some places tax on appraised value Some on a percentage of appraised value Can be expressed as mill or in dollars per $100 of value x percentage of taxation |
|
|
|
Special assessments
|
Taxes to pay for improvements levied against properties adjacent to area to be improved
|
|
|
|
Special assessments
|
Taxes to pay for improvements levied against properties adjacent to area to be improved
|
|
|
|
Zoning
|
Limits rights of property owners specifying allowable and prohibited uses
|
|
|
|
Special assessments
|
Taxes to pay for improvements levied against properties adjacent to area to be improved
|
|
|
|
Zoning
|
Limits rights of property owners specifying allowable and prohibited uses
|
|
|
|
Master plan
|
Comprehensive plan for land use taking into consideration analysis of existing and future physical, economic and social conditions
Serves as a guide to promote general welfare of citizens |
|
|
|
Building codes
|
Laws governing minimum standards of how a building must be constructed
|
|
|
|
Environmental impact report
|
Prepared by EPA analyze impact developements have on economic, social and physical environments
|
|
|
|
Flood control act
|
Requires community to adopt plans to reduce losses in flood prone areas
|
|
|
|
Flood control act
|
Requires community to adopt plans to reduce losses in flood prone areas
|
|
|
|
Coastal zone management act
|
Set regulations to protect beaches from erosion and preserve wildlije
|
|
|
|
Flood control act
|
Requires community to adopt plans to reduce losses in flood prone areas
|
|
|
|
Coastal zone management act
|
Set regulations to protect beaches from erosion and preserve wildlije
|
|
|
|
Clean water act
|
Protects wetlands from dumping and dredging
|
|
|
|
Comprehensive environmental response, compensation, and liability act
Later became Superfund Amendment and Reauthorization Act(SARA) Former and present owners required to pay for toxic waste cleanup |
Superfund pa seed by congress in 1980
Act provides for programs for cleaning up nations most hazardous waste sites |
|
|
|
Resource and Recovery Act (RCRA)
|
Legislation of transporting, storage, treatment and disposal of hazardous waste
|
|
|
|
Lead based paint hazard reduction act
(LBPHRA) of 1992 |
Requires sellers disclosure of home built before 1978 of known lead hazards
Realtors must give buyer pamphlet and ensure compliance |
|
|
|
Mold
|
Be sure to encourage inspection. Agent can be Ned in suit if was not
|
|
|
|
Offer to purchase
General requirements |
Consideration
Legal description of property Date of closing Mortgage type and amount Earnest money Compensation to realtor Signatures In writing |
|
|
|
Offers/purchase agreements
General requirements |
Consideration
Legal description of property Date of closing Mortgage type and amount Earnest money Compensation to realtor Signatures In writing Any contingency Inspections Personal property to be included |
|
|
|
When an offer becomes binding
|
When accepted and signed by sellers
|
|
|
|
Contingencies
|
Provisions in a contract that must be completed before the contract becomes binding
IE: Sale of present home Mortgage Any inspections |
|
|
|
Contingencies
|
Provisions in a contract that must be completed before the contract becomes binding
IE: Sale of present home Mortgage Any inspections |
|
|
|
Time is of the essence
|
All dates in contract are binding and missing a date becomes a breach of contract
|
|
|
|
Counteroffer
|
To alter any part of offer nullifies entire agreement
Seller may make counteroffer Time is of the essence on counteroffer Buyer may accept and then it is an agreement or counteroffer Again this counteroffer nullifies the original counteroffer |
|
|
|
Priority of multiple offers/counteroffers
|
Discuss with client and allow client to decide when and how multiple offers are to be handled.
|
|
|
|
Lease and lease purchase agreements
|
Lease purchase -lease with option to buy, lessee must exercise option within set time period and at price stated in agreement
If not either: 1. Lease will expire 2.lease will be renewed or 3. Owner will place property on open market for sale |
|
|
|
Lease and lease purchase agreements
|
Lease purchase -lease with option to buy, lessee must exercise option within set time period and at price stated in agreement
If not either: 1. Lease will expire 2.lease will be renewed or 3. Owner will place property on open market for sale |
|
|
|
Right of first refusal
|
Tenant has right to match any offer that owner receives on property.
Tenant is not bound to this purchase but has first right |
|
|
|
Real estate commission
Duties and powers |
Issue licenses and registrations
Approval of schools Authority to examine applicants Power to promulgate regulations Continuing education Duty to keep records confidential Administration and enforcement Fees Reports to legislative committees |
|
|
|
Real estate commission
Duties and powers |
Issue licenses and registrations
Approval of schools Authority to examine applicants Power to promulgate regulations Continuing education Duty to keep records confidential Administration and enforcement Fees Reports to legislative committees |
|
|
|
Complaints, investigations, hearings, appeals
|
State commission has power to investigate, hold hearings, revoke or refuse license and/or impose fines not exceeding $1000
|
|
|
|
Real estate recovery fund
|
Fund out of which aggrieved person obtains recovery for judgement against a licensee for fraud, misrepresentation, or deceit
Not to exceed $20,000 for any one claim and not to exceed $100,000 per licensee License of that licensee automatically suspended upon date of payment Licensee not reinstated until repaid in full amount paid from fund plus interest of 10% per year |
|
|
|
Activities requiring a license
|
Acting as broker
Salesperson Cemetery broker Cemetery salesperson Builder-owner salesperson Campground membership salesperson Time-share salesperson Rental listing referral agent Cemetery company |
|
|
|
License types standard or reciprocal
|
Standard- be 18 y/old,
complete 60 hours of education, pass exam, pass police record check Reciprocal license-holds a current license in another state may apply for reciprocal license |
|
|
|
Brokers license
|
Pass brokers license exam
21y/o HS graduate or GED 240 hrs education Be licensed real estate salesperson for 3 years |
|
|
|
Licensure renewal and re activation
|
14 hours continuing education
|
|
|
|
Change of employment
|
License of salesperson must have broker employed by on his license
Notify commission in writing no later than 10 days after intended date of change |
|
|
|
License revocation
|
If license revoked, must wait 5 years and meet all licensing requirements at 5 years
|
|
