Final Test - Pa Real Estate Course Exam

Front 1

EARNEST MONEY

Back 1

MONEY DEPOSITED BY A BUYER VIA CONTRACT EITHER FORFEITED IF BUYER DEFAULTS OR APPLIED TO THE PURCHASE IS SALE IS CLOSE

AKA HAND MONEY

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INTEREST RATE

Back 2

the charge made by lenders for the use of their money, which can flucuate

Front 3

ACCELERATION CLAUSE

Back 3

THE CLAUSE IN A MORTGAGE OR TRUST DEED THAT CAN BE ENFORCED, IF BORROW DEFAULTS AND ENTIRE DEBT DUE IMMEDIATELY

Front 4

AFTER AFFORDABILITY WHAT IS NEXT CONSIDERATION WHEN BUYING A HOME?

Back 4

Location

Front 5

BUNDLE OF LEGAL RIGHTS

Back 5

THE CONCEPT OF LAND OWNERSHIP THAT INCLUDES ALL LEGAL RIGHTS TO THE LAND: POSSESSION, CONTROL, ENJOYMENT, EXCLUSION AND DISPOSITION

Front 6

BILATERAL CONTRACT

UNILATERAL - ONE SIDED

EXPRESS CONTRACT - BY AGREEMENT

IMPLIED - BEHAVIOR OF PARTIES

EXECUTORY - ONE OR BOTH STILL NEED TO ACT

EXECUTE - ALL PARTIES FULFILLED

Back 6

contract between 2 parties and one performs in exchange for other performance

Front 7

COVERS BROKER OR SALESPERSON

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#

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CLIENT VS PRINCIPAL VS CUSTOMER

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CLIENT IS THE PRINCIPAL WHO IS THE PRINCIPAL THAT HIRES THE AGENT, WHILE CUSTOMER IS A THIRD PARTY THAT REQUIRES HONEST, CARE AND SKILL

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COST APPROACH (APPRAISAL)

Back 9

BASED ON PRINCIPLE OF SUBSTITUTION USED FOR NEWER OR SPECIAL PURPOSE IE SCHOOL, CHURCH, GOV BUILDING

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SALES COMPARISON APPROACH (APPRAISAL)

AKA MARKET DATA APPROACH

Back 10

ESTIMATE OF VALUE OBTAINED BY COMPARING SUBJECT PROPERTY WITH RECENTLY SOLD COMPARABLE PROPERTIES - RESIDENTIAL

Front 11

INCOME APPROACH

(APPRAISAL)

Back 11

BASED ON THE PRESENT VALUE OR RIGHTS TO FUTURE INCOME - INVESTMENT/SHOPPING LOT

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DEED RESTRICTION - HOW CREATED & WHAT FOR?

Back 12

LIMITATIONS TO THE USE OF LAND, CREATED BY PAST OWNERS FOR A SPECIFIC PURPOSE OR USE OR PROHIBITION

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DEFEASIBLE FEE ESTATE

FEE SIMPLE DETERMINABLE

FEE SIMPLE ABSOLUTE - HIGHEST INTEREST

Back 13

DFE - IS A QUALIFIED ESTATE SUBJECT TO SPECIFIC EVENT

FSD - SPECIAL LIMITATION:"SO LONG AS", "WHILE", "DURING

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VALIDITY OF CONTRACTS

VALID -MEETS ALL REQUIREMENTS

VOID

VOIDABLE

NOVATION -SUBSTITUTE WITH NEW CONTRACT

Back 14

VOID - NO LEGAL FORCE OR EFFECT - FRAUD

VOIDABLE - APPEARS TO BE VALID BUT MAY BE RESCINDED BY ONE OR BOTH PARTIES

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INDEFINITE DURATION (WHICH TYPE OF ESTATE) VS

NONFREEHOLD ESTATES WHERE LENGTH OF TIME IS DETERMINABLE

Back 15

FREEHOLD ESTATES; LASTS A LIFETIME OR FOREVER

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IS ALL INCLUSIVE TYPE OF OWNERSHIP FEE SIMPLE

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FEE SIMPLE ABSOLUTE; OWNER ENTITLED TO ALL RIGHTS AND THIS ESTATE INTEND TO RUN FOR EVER; PASSES TO HEIRS. ONLY LIMITATIONS ARE ZONING LAWS AND RESTRICTIVE CONVENANTS

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TESTATE VS INTESTATE

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DYING WITH A WILL VS WITHOUT A WILL

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DEED MUST BE DELIVERED AND ACCEPTED

Back 18

BY THE GRANTEE TO PASS TITLE

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OWNERSHIP & CO-OWNERSHIP

OWNERSHIP IN SEVERALTY - ONE OWNER

TENANCY IN COMMON - MORE THAN ONE

JOINT TENANCY - FRACTION INTEREST

TENANCY BY ENTIRETY - ALLOWS HUSBAND OR WIFE TO INHERIT OTHER SPOUSES INTEREST

Back 19

TERMINATION

TENANCY IN COMMON - IF ONE DIES AND WILLS INTEREST, THEY ARE EQUAL WITH OTHER TC

JOINT TENANCY - TENANCY IS DESTROYED WHEN ONE DIES, RIGHT OF SURVIVORSHIP,ONE LESS OWNER UNTIL LAST or IF ONE DIES AND LEAVES INTEREST TO ANOTHER, THEN NEW TENANCY IN COMMON

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JOINT TENANT DIES WITH A WILL (TESTATE) WHAT HAPPENS?

Back 20

NOTHING BECAUSE DECEASED TENANT'S OWNERSHIP GOVERN BY JOINT TENANCY WITH RIGHT OF SURVIVORSHIP RATHER THAN WILL

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INVOLUNTARY LIEN VS

VOLUNTARY LIEN

Back 21

LIEN PLACED ON THE PROPERTY WITHOUT THE CONSENT OF OWNER, IE TAX, UTILITY

VS

LIEN PLACED WITH CONSENT AND KNOWLEDGE IE MORTGAGE

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LAND

REAL ESTATE

REAL PROPERTY

Back 22

ALL INTERCHANGABLE BUT DIFFERENT

LAND IS EARTH SURFACE, UPWARD AND DOWNWARD, INCLUDES SOIL AND NATURAL ATTACHMENTS IE TREES AND PLANTS

REAL ESTATE IS BROADERGOVERNS NATURAL COMPONENTS AND PERMANENT MAN MADE IMPROVEMENTS, IE ANYTHING ARTIFICIAL

REAL PROPERTY INCLUDES LAND/REAL ESTATE AND BUNDLE OF LEGAL RIGHTS

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ELECTROMAGNETIC FIELDS

CHLOROFLUOROCARBONS (CFCS)

UNDERGROUND STORAGE TANKS

BROWNFIELDS

Back 23

ELECTRICAL CURRENTS PRODUCED BY ELECTRICAL PRODUCTS AND HIGH VOTAGE LINES SUSPECT OF CAUSING CANCER HORMONAL CHANGES AND BEHAVIORAL ABNORMALITIES

BROWNFIELDS ARE ABANDONED INDUSTRIAL SITES WITH TOXIC WASTE

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FIXTURE VS

TRADE FIXTURE

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PERSONAL PROPERTY CONVERTED TO REAL ESTATE W/ INTENTION TO BECOME PERMANENT VS PERSONAL PROPERTY OWNED BY TENANT AND ATTACHED TO REAL ESTATE USED FOR BUSINESS - CAN BE LEGALLY REMOVED

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RADON

FORMALDEHYDE

POLYCHOLRINATED BIPHENYLS (PCBS)

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RADON IS NATURALLY OCCURRING COLORLESS, ORDORLESS TASTELESS RADIOACTIVE GAS PRODUCED BY DECAY OF TOHER RADIOACTIVE SUBSTANCES, COMES THROUGH CRACKS IN BASEMENT AND FOUNDATION AND CAUSES CANCER

UREA FORMADEHYDE FOAM INSULATION (UFFI) ONCE BAN, NOW IN USE

Front 26

CHARATERISTICS OF LAND

PHYSICAL -IIU

ECONOMIC - SIPL

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ECONOMIC AFFECTS VALUE - SCARCITY, IMPROVEMENT, PERMANANCE OF INVESTMENT, LOCATION OR AREA PREFERENCE (SITUS)

PHYSICAL - IMMOBILITY, INDESTRUCTIBILITY, UNIQUENESS (NONHOMOGENEITY)

Front 27

GROSS LEASE VS NET LEASE

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GROSS - TENANT PAYS RENT, OWNER PAYS ALL

NET - TENANT PAYS ALL OPERATING EXPENSES

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SEVERANCE AND ANNEXATION

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SEVERANCE - FROM REAL TO PERSONAL - GROWING TREE UNTIL OWNER CUT IT DOWN OR PICK AN APPLE

ANNEXATION -CHANGE OF PERSONAL PROPERTY IE BUY CONCRETE MIX WITH SAND/STONE TURN INTO WALKWAY

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ASBESTOS

SEALING OFF ASBESTOS

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BANNED IN 1978, FIRE RESISTANCE MATERIAL USED AS INSULATION. REMOVAL OF ASBESTOS OR ENCAPSULATION IS PREFERRED METHOD AND ASBESTOS INSPECTORS PROVIDES RECOMMENDATIONS FOR REMEDIATION

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WHAT DOES HUD REQUIRE WHEN LEAD BASED PAINT IS PRESENT

LEAD BASED PAINT HAZARD REDUCTION ACT (LBPHRA)

Back 30

LEAD PAINT USED AS A DRYING AGENT AND PIGMENT, LEAD PRESENT IN 75% OF HOUSE BUILT BEFORE 1978, CAUSING DEVELOPMENT DISABILITIES IN CHILDREN

FEDERAL LAW NOT REQUIRING TEST BUT DISCLOSURES OF KNOWN LEAD BASED PAINT HAZARDS TO BUYERS OR RENTERS

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METES AND BOUNDS LEGAL DESCRIPTION

Back 31

THE LEGAL DESCRIPTION OF A PARCEL WHICH BEGINS AND ENDS AT SAME POINT, WITH BOUNDARIES AND MONUMENTS AS MARKERS

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TITLE

DEED

PERSONAL PROPERTY

Back 32

TITLE IS A RIGHT TO LAND, NOT PRINTED DOCUMENT

REAL PROPERTY CONVEYED BY DEED AND IS DOCUMENT SHOWING OWNERSHIP

PERSONAL PROPERTY CONVEYED BY BILL OF SALE OR RECEIPT

Front 33

WHY IS A NOTARY PUBLIC USED ON A DEED

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TO ACKNOWLEDGE GRANTORS SIGNATURE

Front 34

SUBORDINATION AGREEMENT (MORTGAGE)

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WHEN LIEN HOLDERS AGREE TO CHANGE POSITION OF LIEN

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FEDERAL NATIONAL MORTGAGE ASSOCIATION - WHO OWNS?

Back 35

FANNIE MAE - THE GOVERNMENT

Front 36

SUPPLY AND DEMAND

(WHAT EFFECTS?)

Back 36

APPRAISAL PRINCIPLE THAT FOLLOWS INTERRELATIONSHIP OF REAL ESTATE SUPPLY AND DEMAND. THE EFFECTS FOR SUPPLY: LABOR FORCE, CONSTRUCTION COST, GOV CONTROL AND FISCAL POLICIES VS EFFECTS OF DEMAND: pop, demo, employ and wage level

Front 37

PROCURING CAUSE

Back 37

the chain of events leading to a sale

Front 38

DUAL AGENCY

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representation of both parties on same transaction, only legal if both parties agree

Front 39

FIDUCIARY OBLIGATIONS

Back 39

an agent's duties owed to a principal ie care, obedience, accounting, loyalty, disclosure and notice

Front 40

OPEN HOUSING RIGHTS

Back 40

Fair housing laws to protect consumers from discriminating in housing

Front 41

CIVIL RIGHTS ACTS OF 1866 OR 1964

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Act that prohibits racial discrimination in sales and rental of housing

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FAIR HOUSING 1968 OR FAIR HOUSING AMENDMENT 1988

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1968 prohibits discrimination based on race, color, etc

amendment - included families with children and physical and mental disabilities

Front 43

EXCLUSIVE RIGHT TO SELL VS EXCLUSIVE AGENCY LISTING

Back 43

exclusive right to sell when owner appoints only broker vs owner retains the right to sell w/o paying commission

Front 44

NET LISTING

Back 44

listing based on net price the seller receives, illegal but broker can sell for higher price

Front 45

DEBT TO EQUITY RATIO

Back 45

same as mortgages based on their loan to value ratio or ratio of debt to value of the property

Front 46

IMPOUND ACCOUNT HOLDS REAL ESTATE TAXES FOR MORTGAGE COMPANY

Back 46

Escrow

Front 47

FUNCTIONAL OBSOLESCENCE

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a loss of value to an improvement caused by age or bad design

Front 48

GROSS RENT MULTIPLIER

Back 48

the figure used as the gross monthly income of a property to produce an estimate of value

gross income multiplier - yearly

sale price /monthly gross rent = GRM

sale price/yearly gross income = GIM

Rental income x GRM = estimated market value

Front 49

RESPA- REAL ESTATE SETTLEMENT PROCEDURES ACT

Back 49

FEDERAL LAWS REQUIRING CERTAIN DISCLOSURES ABOUT MORTGAGE LOAN SETTLEMENTS AND PROHIBITS THE PAYMENTS OF KICKBACKS OR CERTAIN REFERRAL FEES

Front 50

HOW MANY YEARS MUST BROKERS KEEP RECORDS

Back 50

Three (3) years

Front 51

ADVERTISING MUST INCLUDE?

Back 51

written consent of the owner for sale/rent sign

broker's business name, address and phone, if licensee - use registered name and phone w/broker info

Front 52

CAN A LICENSED PERSON SELL CAMPGROUND MEMBERSHIPS

Back 52

yes, however a licensed is not required for a campground membership - only instruction and age

Front 53

CAN THE BROKER not DEPOSIT ESCROW MONEY?

Back 53

depends, if cash has until the end of the next business day to deposit, if by check with the approval of client can hold

Front 54

HOW LONG MUST THE CONSUMER NOTICE BE ON FILE?

Back 54

6 months

Front 55

POWER OF ATTORNEY VS LICENSEE

Back 55

the authority to act on another's behalf vs permission to use or one who holds a license

Front 56

COMMINGLING MONIES $$$$

Back 56

The escrow money is not allowed to be mixed with personal money

Front 57

CONTINUING EDUCATION FOR REALTORS

HOW MANY CREDITS EVERY TWO YEARS

Back 57

14 CLE

Front 58

WHAT AUTHORITY DOES REAL ESTATE

COMMISSION HAVE?

Back 58

Administer the law and supervise the activities of licenses, including revoking, suspending and fines up to $1,000

Front 59

MATH COMPUTATIONS:

COMPUTE GROSS - INTEREST RATE PROBLEM

Back 59

#

Front 60

MATH COMPUTATIONS:

COMPUTE ACRES

AND

SQUARE FOOT

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#

Front 61

MATH COMPUTATIONS

COMPUTE EQUALIZATION FACTOR

METES AND BOUNDS

PERCENTAGE

Back 61

#

Front 62

MATH COMPUTATIONS:

COMPUTE 6% COMMISSION

Back 62

#

Front 63

CERCLA

COMPREHENSIVE ENVIRONMENTAL RESPONSES, COMPENSATION AND LIABILITY ACT

Back 63

A EPA LAW THAT IDENTIFIESS WAST SITES, FORCING LIABLE PARTIS TO CLEAN UP TOXIC SITES AND BRING LEGAL ACTIONS AND FUNDING ABATEMENT OF TOXIC SITES

AKA SUPERFUND

Front 64

ENVIRONMENTAL IMPACT STATEMENT (EIS)

ENVIRONMENTAL SITE ASSESSMENT (ESA)

Back 64

SOME STATES IMPOSE BURDEN ON LICENSEE TO DISCOVER PROBLEMS AND ASK QUESTIONS, PROPERTY DISCLOSURES REQUIRED BY LAW

Front 65

PRIVATE VS PUBLIC LAND USE

VARIANCE

NONCONFORMING USE

Back 65

PRIVATE USE - RESTRICTION ON DEEDS, VARIANCE WANTS TO USE LAND DIFFERENT

PUBLIC LAND USE IS CONTROLLED BY ZONING LAWS

NONCONFORMING USE REFERS TO A USE THAT EXISTED BEFORE AN AMENDMENT OR ZONING ORDINANCE

Front 66

EMINENT DOMAIN

Back 66

police power authority of government; condemnation the process of taking property for public use

Front 67

PARTITION

Back 67

court procedure to divide cotenant interest when parties do not agree

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UNAPPROVED MORTGAGE

Back 68

$

Front 69

SECURITY DEPOSIT DEBITS

Back 69

a payment by a tenant held by landlord kept for default or damages to premise

Front 70

PAYS FOR TITLE SEARCH

PAYS FOR APPRAISER

Back 70

seller pays for title search

BUYER PAYS FOR APPRAISAL REPORT

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#

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#

Front 72

EASEMENT

EASEMENT BY NECESSITY

EASEMENT BY PRESCRIPTION

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#

Front 73

PERMISSIVE USE

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LICENSE TO USE LAND

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SPECIAL PURPOSE REAL ESTATE

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#

Front 75

SPECIAL AGENCY

Back 75

AGENT AUTHORIZED TO PERFORM SPECIFIC SINGLE ACT

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DADUM

Back 76

A POINT OR LINE OR SURFACE WHICH ELEVATIONS ARE MEASURED

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APPURTENTANCE

Back 77

RUNS WITH THE LAND, SUCH AS PARKING SPACE, EASEMENT, WATER RIGHTS AND IMPROVEMENT CONNECTS TO PROPERTY AND OWNERSHIP

Front 78

ESTATE PUR AUTRE VIE - FOR THE LIFE OF ANOTHER

Back 78

A LIFE ESTATE THAT IS MEASURED BY THE LIFE OF ANOTHER NOT THE GRANTEE

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#

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#

Front 80

A MILL

Back 80

1/10 OF A CENT

Front 81

FRUCTUS NATURALES - REAL ESTATE

Back 81

TREES, BUSHES AND GRASSES

Front 82

RESTRICTIVE COVENANTS

Back 82

A CLAUSE IN A DEED THAT LIMITS THE WAY OWNERSHIP MAY BE USED

Front 83

EMBLEMENTS

OR FRUCTUS INDUSTRIALES - PERSONAL PROP

Back 83

ANNUAL CULTIVATED CROPS OF FRUIT AND VEGETABLES

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Front 85

AD VALOREM TAXES

Back 85

TAXES LEVIED ACCORDING TO VALUE

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Front 87

LAW OF AGENCY

Back 87

DEFINES THE RIGHTS AND DUTIES OF THE PRINCIPAL AND AGENT

Front 88

PMI - PRIVATE MORTGAGE INSURANCE

Back 88

WHEN THE LOAN TO VALUE IS HIGH, LENDERS REQUIRE PMI TO MINIMIZE THEIR RISK; AFTER 22% EQUITY IS GAINED, INSURANCE CAN CANCEL

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Front 90

WORDS OF CONVEYANCE

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ESTATE FOR YEARS

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LIQUIDATED DAMAGES

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SECONDARY MORTGAGE

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DEED OF TRUST

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QUITCLAIM DEED

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Front 96

REAL ESTATE RECOVERY FUND

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DUAL AGENTS

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Front 98

REMAINDER MAN

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AVULSION

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Front 100

CONSTRUCTIVE EVICTION

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