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101 Cards in this Set
- Front
- Back
EARNEST MONEY |
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 |
the charge made by lenders for the use of their money, which can flucuate |
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ACCELERATION CLAUSE |
THE CLAUSE IN A MORTGAGE OR TRUST DEED THAT CAN BE ENFORCED, IF BORROW DEFAULTS AND ENTIRE DEBT DUE IMMEDIATELY |
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AFTER AFFORDABILITY WHAT IS NEXT CONSIDERATION WHEN BUYING A HOME? |
Location |
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BUNDLE OF LEGAL RIGHTS |
THE CONCEPT OF LAND OWNERSHIP THAT INCLUDES ALL LEGAL RIGHTS TO THE LAND: POSSESSION, CONTROL, ENJOYMENT, EXCLUSION AND DISPOSITION |
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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 |
contract between 2 parties and one performs in exchange for other performance |
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COVERS BROKER OR SALESPERSON |
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CLIENT VS PRINCIPAL VS CUSTOMER |
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) |
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 |
ESTIMATE OF VALUE OBTAINED BY COMPARING SUBJECT PROPERTY WITH RECENTLY SOLD COMPARABLE PROPERTIES - RESIDENTIAL |
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INCOME APPROACH (APPRAISAL) |
BASED ON THE PRESENT VALUE OR RIGHTS TO FUTURE INCOME - INVESTMENT/SHOPPING LOT |
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DEED RESTRICTION - HOW CREATED & WHAT FOR? |
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 |
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 |
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 |
FREEHOLD ESTATES; LASTS A LIFETIME OR FOREVER |
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IS ALL INCLUSIVE TYPE OF OWNERSHIP FEE SIMPLE |
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 |
DYING WITH A WILL VS WITHOUT A WILL |
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DEED MUST BE DELIVERED AND ACCEPTED |
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
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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? |
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 |
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 |
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 |
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 |
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) |
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 |
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CHARATERISTICS OF LAND PHYSICAL -IIU ECONOMIC - SIPL |
ECONOMIC AFFECTS VALUE - SCARCITY, IMPROVEMENT, PERMANANCE OF INVESTMENT, LOCATION OR AREA PREFERENCE (SITUS) PHYSICAL - IMMOBILITY, INDESTRUCTIBILITY, UNIQUENESS (NONHOMOGENEITY) |
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GROSS LEASE VS NET LEASE |
GROSS - TENANT PAYS RENT, OWNER PAYS ALL NET - TENANT PAYS ALL OPERATING EXPENSES |
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SEVERANCE AND ANNEXATION |
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 |
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) |
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 |
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 |
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 |
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WHY IS A NOTARY PUBLIC USED ON A DEED |
TO ACKNOWLEDGE GRANTORS SIGNATURE |
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SUBORDINATION AGREEMENT (MORTGAGE) |
WHEN LIEN HOLDERS AGREE TO CHANGE POSITION OF LIEN |
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FEDERAL NATIONAL MORTGAGE ASSOCIATION - WHO OWNS? |
FANNIE MAE - THE GOVERNMENT |
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SUPPLY AND DEMAND (WHAT EFFECTS?) |
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 |
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PROCURING CAUSE |
the chain of events leading to a sale |
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DUAL AGENCY |
representation of both parties on same transaction, only legal if both parties agree |
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FIDUCIARY OBLIGATIONS |
an agent's duties owed to a principal ie care, obedience, accounting, loyalty, disclosure and notice |
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OPEN HOUSING RIGHTS |
Fair housing laws to protect consumers from discriminating in housing |
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CIVIL RIGHTS ACTS OF 1866 OR 1964 |
Act that prohibits racial discrimination in sales and rental of housing |
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FAIR HOUSING 1968 OR FAIR HOUSING AMENDMENT 1988 |
1968 prohibits discrimination based on race, color, etc amendment - included families with children and physical and mental disabilities |
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EXCLUSIVE RIGHT TO SELL VS EXCLUSIVE AGENCY LISTING |
exclusive right to sell when owner appoints only broker vs owner retains the right to sell w/o paying commission |
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NET LISTING |
listing based on net price the seller receives, illegal but broker can sell for higher price |
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DEBT TO EQUITY RATIO |
same as mortgages based on their loan to value ratio or ratio of debt to value of the property |
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IMPOUND ACCOUNT HOLDS REAL ESTATE TAXES FOR MORTGAGE COMPANY |
Escrow |
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FUNCTIONAL OBSOLESCENCE |
a loss of value to an improvement caused by age or bad design |
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GROSS RENT MULTIPLIER |
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 |
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RESPA- REAL ESTATE SETTLEMENT PROCEDURES ACT |
FEDERAL LAWS REQUIRING CERTAIN DISCLOSURES ABOUT MORTGAGE LOAN SETTLEMENTS AND PROHIBITS THE PAYMENTS OF KICKBACKS OR CERTAIN REFERRAL FEES |
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HOW MANY YEARS MUST BROKERS KEEP RECORDS |
Three (3) years |
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ADVERTISING MUST INCLUDE? |
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 |
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CAN A LICENSED PERSON SELL CAMPGROUND MEMBERSHIPS |
yes, however a licensed is not required for a campground membership - only instruction and age |
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CAN THE BROKER not DEPOSIT ESCROW MONEY? |
depends, if cash has until the end of the next business day to deposit, if by check with the approval of client can hold |
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HOW LONG MUST THE CONSUMER NOTICE BE ON FILE? |
6 months |
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POWER OF ATTORNEY VS LICENSEE |
the authority to act on another's behalf vs permission to use or one who holds a license |
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COMMINGLING MONIES $$$$ |
The escrow money is not allowed to be mixed with personal money |
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CONTINUING EDUCATION FOR REALTORS HOW MANY CREDITS EVERY TWO YEARS |
14 CLE |
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WHAT AUTHORITY DOES REAL ESTATE COMMISSION HAVE? |
Administer the law and supervise the activities of licenses, including revoking, suspending and fines up to $1,000 |
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MATH COMPUTATIONS: COMPUTE GROSS - INTEREST RATE PROBLEM |
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MATH COMPUTATIONS: COMPUTE ACRES AND SQUARE FOOT |
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MATH COMPUTATIONS COMPUTE EQUALIZATION FACTOR METES AND BOUNDS PERCENTAGE |
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MATH COMPUTATIONS: COMPUTE 6% COMMISSION |
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CERCLA COMPREHENSIVE ENVIRONMENTAL RESPONSES, COMPENSATION AND LIABILITY ACT |
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 |
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ENVIRONMENTAL IMPACT STATEMENT (EIS) ENVIRONMENTAL SITE ASSESSMENT (ESA) |
SOME STATES IMPOSE BURDEN ON LICENSEE TO DISCOVER PROBLEMS AND ASK QUESTIONS, PROPERTY DISCLOSURES REQUIRED BY LAW |
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PRIVATE VS PUBLIC LAND USE VARIANCE NONCONFORMING USE |
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 |
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EMINENT DOMAIN |
police power authority of government; condemnation the process of taking property for public use |
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PARTITION |
court procedure to divide cotenant interest when parties do not agree |
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UNAPPROVED MORTGAGE |
$ |
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SECURITY DEPOSIT DEBITS |
a payment by a tenant held by landlord kept for default or damages to premise |
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PAYS FOR TITLE SEARCH PAYS FOR APPRAISER |
seller pays for title search BUYER PAYS FOR APPRAISAL REPORT |
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EASEMENT EASEMENT BY NECESSITY EASEMENT BY PRESCRIPTION |
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PERMISSIVE USE |
LICENSE TO USE LAND |
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SPECIAL PURPOSE REAL ESTATE |
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SPECIAL AGENCY |
AGENT AUTHORIZED TO PERFORM SPECIFIC SINGLE ACT |
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DADUM |
A POINT OR LINE OR SURFACE WHICH ELEVATIONS ARE MEASURED |
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APPURTENTANCE |
RUNS WITH THE LAND, SUCH AS PARKING SPACE, EASEMENT, WATER RIGHTS AND IMPROVEMENT CONNECTS TO PROPERTY AND OWNERSHIP |
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ESTATE PUR AUTRE VIE - FOR THE LIFE OF ANOTHER |
A LIFE ESTATE THAT IS MEASURED BY THE LIFE OF ANOTHER NOT THE GRANTEE |
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A MILL |
1/10 OF A CENT |
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FRUCTUS NATURALES - REAL ESTATE |
TREES, BUSHES AND GRASSES |
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RESTRICTIVE COVENANTS |
A CLAUSE IN A DEED THAT LIMITS THE WAY OWNERSHIP MAY BE USED |
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EMBLEMENTS OR FRUCTUS INDUSTRIALES - PERSONAL PROP |
ANNUAL CULTIVATED CROPS OF FRUIT AND VEGETABLES |
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AD VALOREM TAXES |
TAXES LEVIED ACCORDING TO VALUE |
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LAW OF AGENCY |
DEFINES THE RIGHTS AND DUTIES OF THE PRINCIPAL AND AGENT |
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PMI - PRIVATE MORTGAGE INSURANCE
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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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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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REAL ESTATE RECOVERY FUND |
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DUAL AGENTS |
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REMAINDER MAN |
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AVULSION |
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CONSTRUCTIVE EVICTION |
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