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100 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Statute of frauds
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Certain contracts must be in writing in order to be enforceable in a court of law
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Statute of frauds
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Real estate interest must be conveyed in writing
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Parol evidence rule
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Verbal testimony cannot be used to alter a written contract it may be used to describe a verbal contract
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Statute of limitation
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Time limits that a wrong person has for restitution
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Larches
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Law suit may be dismissed due to unreasonable time in making claim
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Sherman Antitrust Act
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Prohibits interference with the free flow of trade or commerce
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Agency law
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When one person an princple delegates another person and Agent the right to act on their behalf
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Three types of agencies
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1. expressed agency 2. implied agency 3. ostensible agency
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Expressed agency
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verbal or in writing ability to act actual is in writing
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General Agency
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Gives the power to an agent to bind a princple in a to take your trade for business
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Designated agency
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Office policy that a broker man have to minimize dual agency conflict on in house business
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Termination of agency relationship
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BADDMICE
bankruptcy abandonment Death of princple or agent Destruction mutual consent incompetence completion expiration |
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Listing agreement
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Also known as a service provision agreement seller promises to pay a commission if the agent can bring forth of reading willing and able buyer that meets all the terms and conditions of the principal
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Responsibilities to the principal
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Confidentiality, loyalty, obedience, trust, due diligence, accountability, disclosure
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Clotdad
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Seller's disclosure statement
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Applies to 1 to 4 family residential family property this seller is required to disclose all known to be fine in the property and must sign Lead base Paint disclosure.
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Requirements of the listing
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Must identify the parties must have an accurate description of the property must have a beginning and ending date must have a non discrimation clause must have signatures of all parties when completed must be recorded with a legal discrimination
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Voidable contract
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Minors
Conditions and contingencies Duress Incompetence Fraud |
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6 essentials of a valid contract
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consideration
Coompetant parties lawful objective Offer and acceptance Mutual agreement Proper legal form |
cclomp
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unilateral contract
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Promise change for performance ie listing property
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Bilateral contract
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A promise for a promise ie a purchase agreement
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Uniform vendor purchase risk act
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Allows the risk of loss remain with the seller until possession is conveyed of the title
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Installment sale
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Both parties must sign to execute conveys equitable interest in title and possession
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Purchase agreement
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Both parties must sign it conveys equitable interest but not possession
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Proper legal form
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1 identify the names of the parties 2 accurate description of the property 3 definite beginning 4. terms and conditions
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Leasehold estates
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3
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Police power
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Zoning government regulation for land use variance permission to vary slightly somewhat restricted on the land spot zoning permission to change the zoning characteristics
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nonconforming use
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Forr established use zoning is changed until. Abandoned property or just remain
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escheat
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Ownership goes back to the state
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Freehold estates
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Fee simple absolute highest and most complete form of ownership the complete bundle of rights
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Qualified fee simple estates aks Defeasible fee title
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Title is conveyed with a condition attached example the rack on golf course
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Life estate
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Must be conveyed in the deed whose lifetime is based upon and who receives it when they die
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Reversionary interest
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Who does property revert to upon death
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Remainder interest
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Third party named in the deed to receive when the life partner dies. Can be sold or leased during that person's life
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Easements
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Must be in writing to convey is giving out property its gone in the deed
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easement by prescription
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Granted by the courts when someone has adversely used another person's property for a period of time
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Havoc Hostel actual visible open continuous
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Easement ingross
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Conveyed to a person or a business to use
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Joint tenancy
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Possession at the same time, equal interest, ties all on the same, time required at the same time
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PITT
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Parts of a deed
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The granting clause words of conveyance
Habendum have and to hold Testimonium signatory of grantor |
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covenant of Seizin
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Grantor warrants he is the owner
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Covenant of further assurance
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Grantor guarantees that they will procure and deliver any documents to make the title good
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Forever warrant
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Grantor guarantees that they wold bear the expense of defending the title
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General warranty deed
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Contains all 5 covenants and warranties it's the best deed for guarantee to have. Greatest potential risk for the grantor
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Special warranty deed
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Only has one covenant guarantor guarantee against defects or occurring during the Grantors ownership
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Bargain and Sale Deed
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Has no covenants or warranty however it implies ownership it is not used in Michigan
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Will Devise
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Gift of real estate
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Will Bequest or Legacy
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Gift of personal property
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Holographic Will
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Handwritten not witnessed
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Non-Cupative
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Spoken at close to dive only conveys personal property
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Will Codcil
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Amendment to an original well
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Actual notice
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See it or hear it first hand
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Constructive notice
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Writing so that the world can see like in the newspaper
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2 no ' s for salespeople
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Cannot sign closing statement and cannot be primary signatories on a trust account
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Assemblage
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2 or more parcels brought together but have no gained value
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Plottage
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Value gained by bringing two or more parcels together
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Emblements
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Its property even though it is attached it goes with the seller ie crops
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Littoral rights property
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Property bound by the Great Lakes ocean or sea
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Riparian rights
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Property bound by inland lakes and rivers or streams
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Accession
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Process of gaining or losing of land by water
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Accretion
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Result of gaining land through movement of water
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Alluvion
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action deposits of soil and rock
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Reliction
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Water recedes providing more land
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Avulsion
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Losing land by movement of water
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rectangular survey government survey
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Uses imaginary lines principal meridians north and south base lines run east and west most common survey
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Metes and bounds
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Oldest survey iiiii old oak tree has a point of beginning and a. Of N it includes angles and degrees as well as minutes and seconds contains inches by 10 inches in a foot
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Lot and block
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Each parcel is identify with a lot number and subdivision name that cannot be duplicated is governed by the Division land act
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note
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Promise to pay could be secured or unsecured. Doesn't create a lien
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Mortgage
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Pledge of real estates to secure it. Mortgages collateral for the DAT lean money claim on property
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Lien theory
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Boys mortgage only conveys a lien right does not convey interest in the title
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Title Theory
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Vendor believes mortgage conveys an interest in title
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Hypothecation
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Where you pledge something but you'll maintain possession of it
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Power of sale clause
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Lender has the ability to foreclose without taking you to court
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Defeasance Clause
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Mortgage automatically became is Null & Void because it is paid off
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Condemnation clause
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Clause in the mortgage for the lender has the right in any and all proceeds up to the amount
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Buying subject to a mortgage
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Buyer is aware of the underlying mortgage but is not liable for it in case of default only the seller is liable
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Assumption mortgage
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Buyer is assuming responsibilities along with the seller in case of a default both are liable
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Strict foreclosure
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CL recourses the property in case of default the laundry keeps everything even the equity
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Sheriff's deed
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Issue to the highest bidder subject to rights of redemption
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Trustor
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Borrower gives deed of trust to the trustee
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Term loan
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Only the interest is paid and then lump Sum
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Take out mortgage
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You take it out after the construction loan to pay off the construction loan
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wrap around mortgage
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Second mortgage is taken out and overtakes the first and you make the payment to the second person only
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Purchase money mortgage
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The most common anytime you have a purchase agreement that is subject to a mortgage this seller is Take Back mortgage as part of the purchase agreement seller becomes the mortagee
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Regulation Z Truth in Lending Act federal consumer protection app
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Requires advance disclosure of all fees and a percentage and dollar amount all of all consumer credit
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Advertisers of credit
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Are not allowed to give any dollar amount or age unless they give all the charges in the ad
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If somebody violates reg Z the penalties to be 10,000 a day
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10,000
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Respa
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requires advance statement cost on wonderful family homes allows a borrower to shop around and compare cost.
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Fannie Mae
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Largest secondary market its on the New York Stock Exchange single-family conventional mortgages
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Freddie Mac
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Largest secondary market created quasi corporation to work closely with savings and loans
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Geni mae
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Regulated by HOD Public Assistance corporation government-sponsored high risk loans FHA and VA
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Four factors that create value DUSE
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1 desire 2 utility 3 supply for effective purchasing power
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Types of appraisals
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One sales comparison approach 2 cost approach
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Cost approach used for unique properties
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Must attract the land
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Reproduction method
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Today's cost using exact materials
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Replacement method
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Today's cost of using similar material
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Obsolescence cos depreciation
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1 physical deterioration to functional obsolescence 3 external economic obsolescence ie airport
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Valuation process
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Define the problem reconciliation
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Installment sale
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sale of real estate in which the proceeds of the sale are deferred beyond the year of sale
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Constructive eviction
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Tenant breaks the lease because the landlord does not keep the premises habitable
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Freehold estates
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It's basically freehold ownership rights to do what you want with the estate ie fee simple absolute, qualified fee simple, life estate reversionary and remainder
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Leasehold estates
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The right to possess real estate / range ie estate for years periodic estate estate at will and estate at sufferance
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