Pa Re Fundamentals

PERSONAL PROPERTY. At the time of delivery, lumber is considered personal property; once it is used to construct the porch, the lumber is considered real property.

COAL NOTICE. Because of the possibility of mine subsidence, Pennsylvania law requires the seller to provide notice to a purchaser about whether a structure on the land is entitled to support from the underlying coal. This is known as the coal notice.

FIXTURES. Items that were once personal property are now affixed and have become part of the real property, and the tenant may remove them. However, tenants are permitted to remove emblements (the growing crops planted by the tenant), trade fixtures (necessary for the tenants' business), and chattels.

FARM EQUIPMENT. Farm equipment is an example of personal property. Fences, buildings, and growing trees are all included in the definition of real estate.

EXCLUDE THE UTILITIES METER READER. Within the framework of the law, real estate owners may invite anyone onto their property, exclude others by means of No Trespassing signs, but they may not exclude those who have the right to legally enter the property, such as the utility meter reader or any party who has the easement rights.

UNIQUENESS. Nonhomogeneity is another way of stating one of the physical characteristics of land, the characteristic that recognizes that land is unique.

PROPERTY. The general term property refers to anything that can be owned. This includes a wide range of things such as stocks, bonds, trademarks, and patents. The common characteristic is that ownership of property provides certain rights, interests, or benefits to the owner.

A FIXTURE OR PERSONAL PROPERTY. The tests used to determine whether an item is real or personal property include the intent of the parties, method of annexation, adaption to real estate, and the agreement between the parties.

AREA PREFERENCE. Area preference, or situs, refers not only to geography but also to people's preference for a specific area; it is the unique quality of these preferences that results in the different price points for similar properties. Location is often considered the single most important economic characteristic of land.

COST OF THE ITEM WHEN PURCHASED. Tests used to determine whether an article is a fixture include intention, manner of annexation, adaptation to the real estate, and the existence of an agreement. The cost of an article is not a relevant issue.

USE THE PROPERTY FOR ANY PURPOSE, LEGAL OR OTHERWISE. The bundle of legal rights recognizes the right of an owner to use the property for a legal purpose. There is no legal right to use property for an illegal purpose.

AREA PREFERENCE. Area preference, or situs, refers not only to geography but also to people's preference for a specific area; it is the unique quality of these preferences that results in the different price points for similar properties. Location is often considered the single most important economic characteristic of land.

UNIQUENESS. Nonhomogeneity is another way of stating one of the physical characteristics of land, the characteristic that recognizes that land is unique.

MINE SUBSIDENCE. Mine subsidence is the process of downward land shifts due to groundwater flows and the collapse of underground mine shafts, which usually result in sinkholes or troughs. Damage to structures may be functional, structural, or cosmetic.

OPERATE AS USUAL. Air rights, the rights to use the space above the earth, may be sold or leased independently, provided the law has not preempted such rights; the trains may operate as usual on the ground level. To construct such a building, the developer must purchase not only the air rights but also numerous small portions of the land's surface for the building's foundation supports.

PERSONAL PROPERTY. In Pennsylvania, newly manufactured homes are defined as motor vehicles that may subsequently be considered real estate if the home is permanently attached to a foundation and the owner cancels the registration with the Pennsylvania Bureau of Motor Vehicles.

MANUFACTURED HOMES. Manufactured homes are built at the factory under these HUD specifications: constructed on a nonremoveable steel chassis, at least 8 feet wide and 40 feet long (320 square feet), can be lived in with or without a permanent foundation, and contain a red label.

SUBSURFACE RIGHTS. Mineral rights are subsurface rights to the natural resources lying below the earth's surface.

SUBSURFACE RIGHTS. Rights to the natural resources lying below the earth's surface are classified as subsurface rights, which are distinct from surface or air rights. As such, subsurface rights may be transferred without a transfer of surface rights.

COST OF THE ITEM WHEN PURCHASED. Tests used to determine whether an article is a fixture include intention, manner of annexation, adaptation to the real estate, and the existence of an agreement. The cost of an article is not a relevant issue.

THE EVIDENCE OF COMPLIANCE WITH MUNICIPAL REGULATIONS. Through the permit requirement, municipal officials are made aware of new construction or alterations and can verify compliance with building codes and zoning ordinances.

IMPACT FEES. When development takes place in a municipality, the municipality is responsible for off-site improvements, such as highways, roads, and streets. The Pennsylvania Municipalities Planning Code permits the local governing body to charge impact fees to fund off-site public improvements.

THE DEVELOPER. Generally, the developer is responsible for installing streets within a subdivision (known as on-site improvements), and the municipality is responsible for off-site improvements.

SUBDIVIDER. A subdivider is a person who buys undeveloped acreage and divides it into smaller lots for sale to individuals or developers, or keeps the land for the subdivider's own use. A developer (who may also be a subdivider) improves the land by building streets and constructing homes or other buildings on the lots.

GO TO COURT IN AN ATTEMPT TO OBTAIN INJUNCTIVE RELIEF. Private restrictions can be enforced in court when lot owners apply to the court for an injunction to prevent a neighboring lot owner from violating the recorded restrictions. The court injunction will direct the violator to stop or remove the violation. The court retains the power to punish the violator for failure to obey.

PREVENTING VARIANCES FROM BEING ISSUED. Municipal planning commissions develop comprehensive plans to ensure that social and economic needs are balanced against environmental and aesthetic concerns. Land use, conservation, and policy issues are within the domain of the planning commission. Zoning issues, including variances, are handled by the municipality's zoning hearing board.

BUILDING OWNERSHIP. Police power refers to the inherent authority of the government to adopt regulations necessary to protect the public health, safety, and welfare. The government does not regulate ownership of real estate.

APPLY TO AND BIND ALL SUCCESSIVE OWNERS OF THE PROPERTY. Deed restrictions are limitations on the use of property imposed by a past owner or current owner and are binding on future grantees. They may include a restriction specifying the kind of structure that may be erected on the land, a requirement that the property be used for a specific purpose, or a prohibition of a specific use, but such restrictions may not be used for illegal purposes, such as the exclusion of members of certain races, nationalities, or religions.

PROVIDE EACH PURCHASER WITH A REPORT OF THE DETAILS OF THE LAND, AS REGISTERED WITH HUD. The interstate sale of unimproved lots, with land being sold without having been seen by the purchaser, may be subject to the federal Interstate Land Sales Full Disclosure Act. This law requires registration of the details of the land with HUD and also requires that the purchaser be provided with a detailed property report.

COURT INJUNCTION. When a deed restriction has been violated, the party affected by the violation has the right to go to court and seek a court order, or an injunction, that will direct the violator to stop or remove the violation.

DEDICATION. Dedication is a voluntary transfer of private property by its owner to the public for some public use, such as for streets, schools, or parks.

DEED RESTRICTIONS. Deed restrictions are private restrictions created by property owners at the time they convey the ownership.

THE DEVELOPER. Generally, the developer is responsible for installing streets within a subdivision (known as on-site improvements), and the municipality is responsible for off-site improvements.

CONTROL DENSITY AND AVOID OVERCROWDING. Bulk zoning is used to control density and avoid overcrowding by imposing restrictions such as setbacks, building heights, and percentage of open area—or by restricting new construction projects.

PROVIDE EVIDENCE OF COMPLIANCE WITH MUNICIPAL CONSTRUCTION REGULATIONS. Building permits allow municipal officials to verify compliance with building codes and other ordinances that apply to construction, renovation, or repair of buildings.

PROVIDE EACH PURCHASER WITH A REPORT OF THE DETAILS OF THE LAND, AS REGISTERED WITH HUD. The interstate sale of unimproved lots, with land being sold without having been seen by the purchaser, may be subject to the federal Interstate Land Sales Full Disclosure Act. This law requires registration of the details of the land with HUD and also requires that the purchaser be provided with a detailed property report.

BUILDING OWNERSHIP. Police power refers to the inherent authority of the government to adopt regulations necessary to protect the public health, safety, and welfare. The government does not regulate ownership of real estate.

PERCOLATION TEST. The purpose of a percolation test is to measure soil absorption or drainage capacity. Percolation tests are often used to determine whether the soil being tested will support a septic system.

THE EFFECTS OF A ZONING ORDINANCE. Zoning hearing boards are municipal bodies for the specific purpose of hearing about the effects of zoning ordinances on specific parcels of property.

BE SUED AND REQUIRED TO ALTER THE STRUCTURE TO CONFORM WITH THE RESTRICTIONS. Private restrictions can be enforced in court when lot owners apply to the court for an injunction to prevent a neighboring lot owner from violating the recorded restrictions. The court injunction will direct the violator to stop or remove the violation. The court retains the power to punish the violator for failure to obey.

RESTRICTIVE COVENANTS. Developers often use conditions, covenants, and restrictions (CC&Rs) to control and maintain the desirable quality and character of a property or subdivision.

AFTER A NEWLY CONSTRUCTED BUILDING HAS BEEN INSPECTED AND FOUND SATISFACTORY BY THE MUNICIPAL INSPECTOR. A certificate of occupancy is issued once a completed structure has been inspected and found satisfactory; the building is fit for occupancy and has no building code violations.

THE PURCHASER MAY REVOKE THE CONTRACT, AT THE PURCHASER'S OPTION, UP TO MIDNIGHT OF THE SEVENTH CALENDAR DAY FOLLOWING THE SIGNING OF THE CONTRACT. Any contract to purchase a lot covered by the Interstate Land Sales Full Disclosure Act may be revoked at the purchaser's option until midnight of the seventh day following the signing of the contract. If a contract is signed for the purchase of a lot covered by the act and a property report is not given to the purchaser, the purchaser may bring an action to revoke the contract within two years.

APPLY TO AND BIND ALL SUCCESSIVE OWNERS OF THE PROPERTY. Deed restrictions are limitations on the use of property imposed by a past owner or current owner and are binding on future grantees. They may include a restriction specifying the kind of structure that may be erected on the land, a requirement that the property be used for a specific purpose, or a prohibition of a specific use, but such restrictions may not be used for illegal purposes, such as the exclusion of members of certain races, nationalities, or religions.

IT IS A NONCONFORMING USE. This structure is an example of a nonconforming use and may be allowed to continue legally as long as it complies with the regulations governing nonconformities in the local ordinance, until the improvements are destroyed or torn down, or until the current use is abandoned. If the nonconforming use is allowed to continue, it is considered to be grandfathered in to the new zoning ordinance.

THE USE OF THE LAND. An owner may impose restrictions on the right to use property, but any attempt to restrict the right of free alienation (transfer) or occupancy of the property is considered to be against public policy and therefore unenforceable.

RESTRICTIVE COVENANT. Restrictive covenants are created by subdividers or developers to affect the use of parcels within a particular subdivision. A purchaser of real estate in that subdivision holds title subject to the recorded covenants, conditions, and restrictions.

ENSURE THE HEALTH, SAFETY, AND WELFARE OF THE COMMUNITY. Zoning ordinances are regulatory tools that help communities regulate and control how land is used for the protection of public health, safety, and welfare. They also help implement the comprehensive plan by regulating and controlling the use of land and structures within designated land-use districts, in part by separating conflicting land uses.

DEED RESTRICTIONS. Deed restrictions are private restrictions created by property owners at the time they convey the ownership.

COMPREHENSIVE PLANS. A comprehensive plan sets forth the development goals and objectives for the community. Existing citizens and developers are aware of the permitted land uses, housing projections, transportation issues, and objectives for implementing future controlled development.

GO TO COURT IN AN ATTEMPT TO OBTAIN INJUNCTIVE RELIEF. Private restrictions can be enforced in court when lot owners apply to the court for an injunction to prevent a neighboring lot owner from violating the recorded restrictions. The court injunction will direct the violator to stop or remove the violation. The court retains the power to punish the violator for failure to obey.

SUBDIVIDER. A subdivider is a person who buys undeveloped acreage and divides it into smaller lots for sale to individuals or developers, or keeps the land for the subdivider's own use. A developer (who may also be a subdivider) improves the land by building streets and constructing homes or other buildings on the lots.

THE MUNICIPALITY MUST ISSUE AN OCCUPANCY PERMIT. Before building a structure or altering or repairing an existing building, the owners usually must obtain a building permit. Once the completed structure has been inspected and found satisfactory, the municipal inspector issues a certificate of occupancy or occupancy permit.

CONTROL DENSITY AND AVOID OVERCROWDING. Bulk zoning is used to control density and avoid overcrowding by imposing restrictions such as setbacks, building heights, and percentage of open area—or by restricting new construction projects.

THE DEVELOPER. Generally, the developer is responsible for installing streets within a subdivision (known as on-site improvements), and the municipality is responsible for off-site improvements.

RESTRICTIVE COVENANT. Restrictive covenants are created by subdividers or developers to affect the use of parcels within a particular subdivision. A purchaser of real estate in that subdivision holds title subject to the recorded covenants, conditions, and restrictions.

THE EFFECTS OF A ZONING ORDINANCE. Zoning hearing boards are municipal bodies for the specific purpose of hearing about the effects of zoning ordinances on specific parcels of property.

PROVIDE EACH PURCHASER WITH A REPORT OF THE DETAILS OF THE LAND, AS REGISTERED WITH HUD. The interstate sale of unimproved lots, with land being sold without having been seen by the purchaser, may be subject to the federal Interstate Land Sales Full Disclosure Act. This law requires registration of the details of the land with HUD and also requires that the purchaser be provided with a detailed property report.

RESTRICTIVE COVENANTS. Developers often use conditions, covenants, and restrictions (CC&Rs) to control and maintain the desirable quality and character of a property or subdivision.

ENSURE THE HEALTH, SAFETY, AND WELFARE OF THE COMMUNITY. Zoning ordinances are regulatory tools that help communities regulate and control how land is used for the protection of public health, safety, and welfare. They also help implement the comprehensive plan by regulating and controlling the use of land and structures within designated land-use districts, in part by separating conflicting land uses.

KNOWN PAINT HAZARDS BE DISCLOSED. Sellers have to disclose known information on lead-based paint and hazards prior to the execution of a contract for sale. However, no one has to test and no one has to remove any such paint.

CHLOROFLUOROCARBONS. Chlorofluorocarbons (CFCs) used as refrigerants in air conditioners, refrigerators, and freezers, are safe in most applications and are inert in the lower atmosphere. Once CFC vapors rise to the upper atmosphere, where they may survive up to 150 years, they are broken down by ultraviolet light into chemicals that deplete the ozone layer.

ENVIRONMENTAL IMPACT STATEMENT. A federally funded project requires that an environmental impact statement (EIS) be performed that details the impact the project will have on the environment.

A DISCLOSURE STATEMENT MUST BE ATTACHED TO ALL SALES CONTRACTS AND LEASES INVOLVING PROPERTIES BUILT BEFORE 1978. The Federal Lead-Based Paint Hazard Reduction Act requires owners and landlords of target housing (built before January 1, 1978) to disclose what they know about lead-based paint or lead-based paint hazards to prospective buyers or renters in any sales contract or lease. The law does not require testing or removal of the lead-based paint or hazard.

CERCLA. The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) was created in 1980 to address hazardous waste sites and provide a process for identifying parties responsible for cleanup actions.

ENCAPSULATION. Encapsulation, or the sealing off of disintegrating asbestos, is an alternate method of asbestos control that may be preferable to removal in certain circumstances. However, an owner must periodically monitor the condition of the encapsulated asbestos to make sure it is not disintegrating.

MOLD. Exterior insulation finish systems (EIFS), also known as synthetic stucco, do not allow moisture to escape. If a moisture problem is not discovered or addressed, mold growth can gradually destroy the underlying structure.

REAL ESTATE EDUCATORS. Parties involved in some way in the transaction process, including brokers, mortgage lenders, and appraisers, all have potential liability under current environmental laws.

GATHER AND DISSEMINATE AUTHORITATIVE INFORMATION. Although sellers often carry the most exposure to environmental liability, real estate licensees could also be held liable. Therefore, licensees should be aware of possible hazards and where to see professional help.

4 PCI/L. Because neither the EPA nor current scientific consensus has been able to establish a threshold safe level of radon exposure, the EPA suggests an action level of 4 pCi/L, a level chosen because 95 percent of the time, current technology can bring the level below this amount, and 75 percent of the time, levels can be reduced to 2 pCi/L.

METES-AND-BOUNDS SYSTEM. The metes-and-bounds method relies on a property's physical features to determine the boundaries and measurements of the parcel, always beginning and ending at a designated place on the parcel, called the point of beginning (POB).

DATUM. A datum is a point, line, or surface from which elevations are measured or indicated; a datum can be used to determine the height of a structure or to establish the grade of a street.

$3,200. A lot measuring 264 feet by 660 feet is 174,240 square feet. If 43,560 square feet equals one acre, 174,240 square feet equals four acres (174,200 ÷ 43,560). At $800 per acre, four acres would cost $3,200 (800 × 4).

PLAT MUST SHOW THE ELEVATIONS OF FLOORS AND CEILING ON A VERTICAL PLANE. Pennsylvania's condominium property acts require that a registered land surveyor prepare a plat showing the elevations of floors and ceilings on a vertical plane and the boundaries of a condominium unit with reference to an official datum. Typically, a separate plat will be prepared for each floor in the condominium building.

12. One lot is 72.5 × 100 = 7,250 sq ft. The entire parcel is 43,560 × 2 = 87,120 sq ft. Entire parcel divided by 7,250 = 12 lots.

LOT AND BLOCK. In describing a lot from a recorded subdivision plat, three identifiers are used: lot and block number, name or number of the subdivision plat, and the name of the county and state.

STREET ADDRESS. A street address is not precise or unique to a particular parcel, nor does it permit a surveyor to define the exact boundaries of the property.

MUST COMMENCE AND FINISH AT THE SAME IDENTIFIABLE POINT. A metes-and-bounds description starts at a designated place on the parcel, called the point of beginning (POB) that is also the point of ending (POE), but often only the POB is used in describing the property.

USED IN THE DESCRIPTION OF AN AIR LOT. The term datum refers to a point, line, or surface from which elevations are measured. It is used for determining the height of buildings or the location of property lines in multistory condominium structures.

THE SERVIENT TENEMENT. In an easement appurtenant, the parcel over which the easement runs is the servient tenement—meaning that it serves the other property. Your property is subject to the easement, which benefits the neighbor, who is the dominant tenement.

AN EASEMENT. A legal right to cross over the land of a neighbor would be classified as an easement. Typically it would be an easement in gross, which benefits a person rather than the land.

THE DOCTRINE OF PRIOR APPROPRIATION. In states that subscribe to the doctrine of prior appropriation, the right to use water is controlled by the state. To secure water rights in these states, a landowner must secure a permit to use a specified amount of water for a beneficial use.

AN ENCROACHMENT. If all, or part, of an improvement, such as a fence, extends beyond the property line, the fence becomes an encroachment on the property of the neighbor.

FEE SIMPLE INTEREST. The highest quality of interest in real estate is fee simple ownership. The owner is entitled to all rights of ownership, limited only by public or private restrictions. The owner's rights last for an unlimited duration.

PERSONAL PRIVILEGE. A personal privilege or right to use land of another for a specific purpose is known as a license. It does not create an interest in the land for the license holder but provides a temporary right of use.

AN APPURTENANT EASEMENT. An appurtenant easement is attached to the ownership of one parcel of land and allows the owner the use of a neighbor's land. For an appurtenant easement to exist, two adjacent parcels of land must be owned by two different parties.

ENCROACHMENT. An encroachment is the illegal extension of a building or fence that extends beyond the land of the owner and is usually disclosed by either a physical inspection of the property or a spot survey.

RUNS WITH THE LAND. An appurtenant easement is said to "run with the land," in that it is binding not only on the current owner but also on future owners. The appurtenant easement can be terminated if one of the owners becomes the owner of both properties (merger) or if the servient tenement relinquishes the right.

EMINENT DOMAIN. Under our system of property law, the government retains the right to take ownership of privately owned real estate if the taking is for the public good and the owner receives just compensation. The right or power of the government is eminent domain; the method or process is condemnation.

A PRESCRIPTIVE EASEMENT. If a party uses real estate owned by someone else, does so without the owner's consent, and continues to do so for the period established by state law, that using party may be able to successfully claim an easement by prescription.

THE DOCTRINE OF PRIOR APPROPRIATION. In states that subscribe to the doctrine of prior appropriation, the right to use water is controlled by the state. To secure water rights in these states, a landowner must secure a permit to use a specified amount of water for a beneficial use.

RUNS WITH THE LAND. An appurtenant easement is said to "run with the land," in that it is binding not only on the current owner but also on future owners. The appurtenant easement can be terminated if one of the owners becomes the owner of both properties (merger) or if the servient tenement relinquishes the right.

A PERSONAL PRIVILEGE. A personal privilege or right to use land of another for a specific purpose is known as a license. It does not create an interest in the land for the license holder but provides a temporary right of use.

VALID EVEN THOUGH THE OWNER DID NOT KNOW ABOUT IT. A landowner cannot interfere with the rights of an easement holder. Rights-of-way of utility easements (such as for a pipeline or high-tension power line) are easements in gross and may be assigned, conveyed, and inherited.

ENCROACHMENT. An encroachment is the illegal extension of a building or fence that extends beyond the land of the owner and is usually disclosed by either a physical inspection of the property or a spot survey.

CONDEMNATION. Condemnation is the process by which the government acquires ownership of private property. Condemnation is not a right, but rather the method by which the government exercises its right of eminent domain.

THE TAKING MUST BE FOR A PUBLIC PURPOSE. Eminent domain is the right of the government to acquire privately owned real estate for public use. Use considered to be in the public interest varies widely from state to state and region to region.

FEE SIMPLE ON CONDITION SUBSEQUENT. Property conveyed "for educational purposes only" or some other condition creates a fee simple estate qualified by a "condition subsequent." If the condition is broken, the former owner can initiate legal action to reclaim ownership.

EASEMENT BY NECESSITY. An easement by necessity is created by court order based on the principle that owners must have the right to enter and exit their land; they cannot be landlocked.

IS THE SERVIENT TENEMENT. The parcel over which the easement runs is known as the servient tenement; the neighboring parcel that benefits is known as the dominant tenement.

ACCRETION. The natural action of water can increase or diminish the amount of land owned. The increase, and hence the acquisition of land, by the water's action is accretion. The actual deposits of soil are known as alluvion or alluvium. Erosion diminishes the amount of land owned.

THE HOUSE MUST BE CONSTRUCTED TO AVOID THE EASEMENT. Easements can hinder the owner's use of the property. A landowner should be familiar with any easements, preferably before purchasing a property or making plans for using it.

A FEE ESTATE. Fee simple estate is ownership in which the owner is entitled to all rights to the property by law. This estate is intended to run forever; upon the death of its owner, it passes to the owner's heirs.

FEE SIMPLE INTEREST. The highest quality of interest in real estate is fee simple ownership. The owner is entitled to all rights of ownership, limited only by public or private restrictions. The owner's rights last for an unlimited duration.

A LEASEHOLD INTEREST. A tenant occupying an apartment under a lease acquires a leasehold interest in the property. A leasehold is less than an ownership or freehold interest.

EASEMENT IN GROSS. Many utility companies hold easements in gross. Under an easement in gross, the company has the right to cross over many servient tenement properties; however, there is no dominant tenement.

FEE SIMPLE ESTATE. An estate in fee simple (also called fee simple absolute) is the highest interest in real estate recognized by law, entitling its owner to all rights to the property by law. This estate is intended to run forever; upon the death of its owner, it passes to the owner's heirs.

EMINENT DOMAIN. Under our system of property law, the government retains the right to take ownership of privately owned real estate if the taking is for the public good and the owner receives just compensation. The right or power of the government is eminent domain; the method or process is condemnation.

AN EASEMENT. A legal right to cross over the land of a neighbor would be classified as an easement. Typically it would be an easement in gross, which benefits a person rather than the land.

LIFE ESTATE PUR AUTRE VIE. A life estate pur autre vie (for the life of another) provides for inheritance by the life tenant's heirs only until the death of the third party. A life estate pur autre vie is often created for people who are physically or mentally incapacitated in the hope of providing incentive for someone to care for them.

A FUTURE INTEREST. The man has conveyed a future interest to his daughter, known as a remainder interest. During his life, the man owns the life estate and is the life tenant. Upon his death, ownership passes to the daughter as the remainderman.

THE HOUSE MUST BE CONSTRUCTED TO AVOID THE EASEMENT. Easements can hinder the owner's use of the property. A landowner should be familiar with any easements, preferably before purchasing a property or making plans for using it.

IS THE SERVIENT TENEMENT. The parcel over which the easement runs is known as the servient tenement; the neighboring parcel that benefits is known as the dominant tenement.

ACCRETION. The natural action of water can increase or diminish the amount of land owned. The increase, and hence the acquisition of land, by the water's action is accretion. The actual deposits of soil are known as alluvion or alluvium. Erosion diminishes the amount of land owned.

AN ESTATE PUR AUTRE VIE. While the duration of a life estate can be measured by the duration of the life tenant's life, it may also be measured against the life of someone other than the life tenant. Such an estate is known as an estate pur autre vie, meaning "for the lifetime of another."

EASEMENT BY NECESSITY. An easement by necessity is created by court order based on the principle that owners must have the right to enter and exit their land; they cannot be landlocked.

THE TAKING MUST BE FOR A PUBLIC PURPOSE. Eminent domain is the right of the government to acquire privately owned real estate for public use. Use considered to be in the public interest varies widely from state to state and region to region.

VALID EVEN THOUGH THE OWNER DID NOT KNOW ABOUT IT. A landowner cannot interfere with the rights of an easement holder. Rights-of-way of utility easements (such as for a pipeline or high-tension power line) are easements in gross and may be assigned, conveyed, and inherited.

FEE SIMPLE DETERMINABLE. One ownership interest that is subject to a special limitation, such as a limitation on use for a specific purpose, is a fee simple determinable estate. The key phrase is "so long as." If the new owner fails to comply with the limitation, the former owner reacquires full ownership.

LANDLORD HAS RECOURSE AGAINST THE DRESS STORE OWNER ONLY. The original lessee, the owner of the dress store, remains primarily liable for payment of rent to the original lessor. The original lessor has recourse against the dress store owner only; the lessor has no contractual relationship with the cigar store owner.

GRADUATED. A graduated lease states specific rent increases at specific times.

A LEASE IN WHICH THE TENANT PAYS RENT IN ADDITION TO SOME OR ALL OPERATING EXPENSES. Under the terms of a net lease, the tenant pays all or some of the operating expenses in addition to the rent. Operating expenses include such items as taxes, insurance premiums, maintenance costs, and assessments.

STATEMENT OF THE SPECIFIC LENGTH OF TIME. A valid lease must include an offer and acceptance and a statement as to the length of the lease. A valid lease is not required to include a security deposit or a complete legal description of the premises.

TOTAL DESTRUCTION OF THE PROPERTY. A tenant who leases part of a building, such as a residential apartment, is released from the lease when the premises are destroyed. Sale of the property or death of the tenant does not terminate the lease.

The answer is LANDLORD CAN FILE SUIT FOR POSSESSION. When a tenant remains in possession without a current lease and without the consent of the landlord, the tenant is a tenant at sufferance. The landlord may regain possession through a suit for possession.

FROM PERIOD TO PERIOD. The key feature of a tenancy from period to period is that it automatically renews itself under the original terms until one of the parties gives notice to terminate. This tenancy may run for an indefinite duration.

THE SALE DOES NOT AFFECT THE LEASE. In general, a tenant has the right to use the premises for the entire lease term. That right is unaffected by the original lessor's death or the sale of the property, unless the lease states otherwise.

SHERIFF. If the tenant fails to leave, the landlord can have the judgment enforced by a court officer (sheriff), who forcibly removes the tenant and the tenant's possessions. The landlord then has the right to reenter and regain possession of the property.

WITH THE LANDOWNER'S PERMISSION, A TENANT BUILDS AND OWNS A SHOPPING CENTER ON VACANT LAND LEASED FROM THE LANDOWNER. In a ground lease, the landowner leases unimproved land to a tenant who agrees to construct a building, which the tenant then owns. A ground lease is generally a long-term net lease, which provides certain tax advantages to the lessee.

A LEASE IN WHICH THE TENANT PAYS RENT IN ADDITION TO SOME OR ALL OPERATING EXPENSES. Under the terms of a net lease, the tenant pays all or some of the operating expenses in addition to the rent. Operating expenses include such items as taxes, insurance premiums, maintenance costs, and assessments.

LANDLORD HAS RECOURSE AGAINST THE DRESS STORE OWNER ONLY. The original lessee, the owner of the dress store, remains primarily liable for payment of rent to the original lessor. The original lessor has recourse against the dress store owner only; the lessor has no contractual relationship with the cigar store owner.

SHERIFF. If the tenant fails to leave, the landlord can have the judgment enforced by a court officer (sheriff), who forcibly removes the tenant and the tenant's possessions. The landlord then has the right to reenter and regain possession of the property.

WITH THE LANDOWNER'S PERMISSION, A TENANT BUILDS AND OWNS A SHOPPING CENTER ON VACANT LAND LEASED FROM THE LANDOWNER. In a ground lease, the landowner leases unimproved land to a tenant who agrees to construct a building, which the tenant then owns. A ground lease is generally a long-term net lease, which provides certain tax advantages to the lessee.

ESTATE AT WILL. An estate (tenancy) at will is a tenancy of indefinite duration and allows the tenant the right to possess property with the landlord's consent for an unspecified or uncertain term. It continues until it is terminated by either party giving proper notice.

$270,000. The base rent paid for one year would be $14,400 ($1,200 × 12). If the total paid was $19,200, it means that $4,800 ($19,200 – $14,400) was the portion attributed to the terms of the net lease. If $4,800 equals 4 percent of the gross business over $150,000, then $120,000 (4,800 ÷ 4%) equals the amount over $150,000. The total volume therefore is $270,000 ($150,000 + $120,000).

TENANT IS A HOLDOVER TENANT. When a tenant remains in possession, or holds over, after the lease term expires, a holdover tenancy is created. The landlord's acceptance of rent indicates consent to a periodic tenancy. A tenancy at sufferance would be created if the tenant remained in possession without the consent of the landlord.

THE ENFORCEMENT OF A COURT ORDER TO REMOVE LESSEE. When a court issues a judgment for possession to a landlord, the tenant must vacate the property. If the tenant fails to leave, the landlord can have the judgment enforced by a court officer, who forcibly removes the tenant and the tenant's possessions. The landlord then has the right to reenter and regain possession of the property.

A SUBLEASE. When a tenant transfers less than all the leasehold interests by leasing them to a new tenant, the original tenant has subleased (or sublet) the property. The original tenant remains responsible for rent being paid by the new tenant and for any damage done to the rental property during the lease term. The new tenant is responsible only to the original tenant to pay the rent due.

SHOULD HAVE SHOWED THE COUPLE ALL AVAILABLE APARTMENTS. Withholding an apartment that is available for rent, segregating certain people in separate sections of an apartment complex or parts of a building, and charging people in the protected classes different amounts for rent or security deposits all constitute violations of the law.

WITH THE LANDOWNER'S PERMISSION, A TENANT BUILDS AND OWNS A SHOPPING CENTER ON VACANT LAND LEASED FROM THE LANDOWNER. In a ground lease, the landowner leases unimproved land to a tenant who agrees to construct a building, which the tenant then owns. A ground lease is generally a long-term net lease, which provides certain tax advantages to the lessee.

FROM PERIOD TO PERIOD. The key feature of a tenancy from period to period is that it automatically renews itself under the original terms until one of the parties gives notice to terminate. This tenancy may run for an indefinite duration.

The answer is SALE-AND-LEASEBACK. Sale-and-leaseback arrangements are often used to finance large commercial or industrial properties enabling the business to free money tied up in real estate to be used as working capital. The land and buildings are sold to an investor who becomes the lessor/landlord while the seller continues to conduct business on the property as the lessee/tenant.

TOTAL DESTRUCTION OF THE PROPERTY. A tenant who leases part of a building, such as a residential apartment, is released from the lease when the premises are destroyed. Sale of the property or death of the tenant does not terminate the lease.

TENANT IS A HOLDOVER TENANT. When a tenant remains in possession, or holds over, after the lease term expires, a holdover tenancy is created. The landlord's acceptance of rent indicates consent to a periodic tenancy. A tenancy at sufferance would be created if the tenant remained in possession without the consent of the landlord.

SUING THE LANDLORD FOR BREACH OF THE COVENANT OF SEISIN. If the landlord breaches the terms of the lease, the tenant may sue and recover damages. The tenant may also have the right to abandon the property and have the lease terminated under the theory of constructive eviction. The covenant of seisin refers to deeds, not leases.

ACTUAL EVICTION. The landlord recovers possession of the property by filing for a court action called actual eviction.

NEGOTIATE AN INDEX LEASE. An index lease allows rent to be increased or decreased periodically based on changes in the consumer price index or some other index.

LESSOR. A lease is a contract between an owner of real estate (the lessor) and a tenant (the lessee) and transfers the lessor's rights to exclusive possession and use of the property to the tenant for a specified period.

THE TENANT IS ENTITLED TO MAKE THE NECESSARY ALTERATIONS. Tenants with disabilities must be permitted to make reasonable modifications to a property at their own expense; if the modifications would interfere with a future tenant's use, the landlord may require that the premises be restored to their original condition at the end of the lease term.

The answer is SALE-AND-LEASEBACK. Sale-and-leaseback arrangements are often used to finance large commercial or industrial properties enabling the business to free money tied up in real estate to be used as working capital. The land and buildings are sold to an investor who becomes the lessor/landlord while the seller continues to conduct business on the property as the lessee/tenant.

NEGOTIATE AN INDEX LEASE. An index lease allows rent to be increased or decreased periodically based on changes in the consumer price index or some other index.

WITH THE LANDOWNER'S PERMISSION, A TENANT BUILDS AND OWNS A SHOPPING CENTER ON VACANT LAND LEASED FROM THE LANDOWNER. In a ground lease, the landowner leases unimproved land to a tenant who agrees to construct a building, which the tenant then owns. A ground lease is generally a long-term net lease, which provides certain tax advantages to the lessee.

A LEASE IN WHICH THE TENANT PAYS RENT IN ADDITION TO SOME OR ALL OPERATING EXPENSES. Under the terms of a net lease, the tenant pays all or some of the operating expenses in addition to the rent. Operating expenses include such items as taxes, insurance premiums, maintenance costs, and assessments.

GRADUATED. A graduated lease states specific rent increases at specific times.

TENANT IS A HOLDOVER TENANT. When a tenant remains in possession, or holds over, after the lease term expires, a holdover tenancy is created. The landlord's acceptance of rent indicates consent to a periodic tenancy. A tenancy at sufferance would be created if the tenant remained in possession without the consent of the landlord.

ASSIGNING THE LEASE. A tenant who transfers all rights to a third party for the remainder of the lease term assigns the lease. An assignment does not automatically relieve the original lessee of obligations under the lease.

A SUBLEASE. When a tenant transfers less than all the leasehold interests by leasing them to a new tenant, the original tenant has subleased (or sublet) the property. The original tenant remains responsible for rent being paid by the new tenant and for any damage done to the rental property during the lease term. The new tenant is responsible only to the original tenant to pay the rent due.

SHOULD HAVE SHOWED THE COUPLE ALL AVAILABLE APARTMENTS. Withholding an apartment that is available for rent, segregating certain people in separate sections of an apartment complex or parts of a building, and charging people in the protected classes different amounts for rent or security deposits all constitute violations of the law.

ESTATE AT WILL. An estate (tenancy) at will is a tenancy of indefinite duration and allows the tenant the right to possess property with the landlord's consent for an unspecified or uncertain term. It continues until it is terminated by either party giving proper notice.

STATEMENT OF THE SPECIFIC LENGTH OF TIME. A valid lease must include an offer and acceptance and a statement as to the length of the lease. A valid lease is not required to include a security deposit or a complete legal description of the premises.

FROM PERIOD TO PERIOD. The key feature of a tenancy from period to period is that it automatically renews itself under the original terms until one of the parties gives notice to terminate. This tenancy may run for an indefinite duration.

LEASE PURCHASE AGREEMENT. A lease purchase is used when a tenant wants to purchase the property but is unable to do so. Part of the periodic rent is applied toward the purchase price of the property until it is reduced to an amount for which the tenant can obtain financing or purchase the property outright, depending on the terms of the lease purchase agreement.

LESSOR. A lease is a contract between an owner of real estate (the lessor) and a tenant (the lessee) and transfers the lessor's rights to exclusive possession and use of the property to the tenant for a specified period.

TOTAL DESTRUCTION OF THE PROPERTY. A tenant who leases part of a building, such as a residential apartment, is released from the lease when the premises are destroyed. Sale of the property or death of the tenant does not terminate the lease.

WITH THE LANDOWNER'S PERMISSION, A TENANT BUILDS AND OWNS A SHOPPING CENTER ON VACANT LAND LEASED FROM THE LANDOWNER. In a ground lease, the landowner leases unimproved land to a tenant who agrees to construct a building, which the tenant then owns. A ground lease is generally a long-term net lease, which provides certain tax advantages to the lessee.

NEGOTIATE AN INDEX LEASE. An index lease allows rent to be increased or decreased periodically based on changes in the consumer price index or some other index.

DEFINITE MONTHLY RENT PLUS A PERCENTAGE OF THE TENANT'S GROSS RECEIPTS IN EXCESS OF A CERTAIN AMOUNT. A common form of lease used in retail businesses is one that requires the tenant to pay rent based on a percentage of the gross or net income generated by the business. This is known as a percentage lease.

A REVERSIONARY RIGHT TO POSSESSION. The lessor grants the lessee the right to occupy the real estate and use it for purposes stated in the lease. In return, the landlord receives payment for use of the premises and retains a reversionary right to possession after the lease term expires.

LANDLORD HAS RECOURSE AGAINST THE DRESS STORE OWNER ONLY. The original lessee, the owner of the dress store, remains primarily liable for payment of rent to the original lessor. The original lessor has recourse against the dress store owner only; the lessor has no contractual relationship with the cigar store owner.

The answer is THEY CAN FILE A PARTITION SUIT. Partition is a legal way to dissolve a co-ownership when the parties do not voluntarily agree to its termination.

THE LAST SURVIVOR BECOMES A SEVERALTY OWNER. Trusts may be created by agreement during a property owner's lifetime (a living trust) or established by the terms of a will (a testamentary trust).

THE FIRST TWO OWNERS REMAIN JOINT TENANTS. While a joint tenant is free to convey interest in the property, doing so destroys the joint tenancy between the three people. While the two remaining people remain as joint tenants with regard to their two-thirds ownership interest, the friend becomes a tenant in common with regard to his one-third interest.

JOINT TENANCY. The co-owner was a joint tenant with right of survivorship. With or without a will, his interest passes to the remaining co-owner, and nothing goes to the deceased's heirs.

TENANTS IN COMMON. If the deed of conveyance does not stipulate the tenancy being created, Pennsylvania law recognizes the concurrent owners as tenants in common.

LIMITED ONLY BY WEATHER AND ACCESS. Campground membership is similar to time-share use. Normally, the owner is not limited to a specific time for using the property; use is limited only by weather and access.

COOPERATIVE UNIT. The woman lives in a cooperative. She has a possessory interest as evidenced by a proprietary lease. A corporation holds title to the land and building, with tenants owning shares of stock (personal property) in the corporation. The tenant-shareholder occupies a unit under the terms of a proprietary (owner's) lease.

BECAME STOCKHOLDERS IN A CORPORATION. Co-op purchasers become shareholders in the corporation that owns the building by virtue of stock ownership and receive a proprietary (owner's) lease to the apartment for the life of the corporation.

THEY MAY VOID THE AGREEMENT WITHIN FIVE DAYS OF RECEIVING THE INFORMATION. The unit owner must furnish the resale certificate along with the condominium documents for the prospective purchasers' review prior to the closing. Buyers who receive this information after they've signed an agreement of sale have the right to void the agreement within five days after receiving the information, if they so choose.

THE MAN IS THE TRUSTOR, THE SISTER IS THE TRUSTEE, AND HIS DAUGHTER IS THE BENEFICIARY. The trustor (the man) is the party creating the trust. Title to the vineyard is held by the trustee (the sister) for the benefit of the beneficiary of the trust (the daughter).

LIMITED ONLY BY WEATHER AND ACCESS. Campground membership is similar to time-share use. Normally, the owner is not limited to a specific time for using the property; use is limited only by weather and access.

HEIRS OF THE DECEASED. In a tenancy in common, each cotenant holds interest in severalty. When the cotenant dies, the undivided interest passes to heirs of the cotenant or is passed to a devisee under the terms of a will.

TIME-SHARE USE. Freehold interests are ownership interests. A time-share use interest refers to the contract right to use real estate owned by a developer for a specified time. It differs from a time-share estate, which creates an ownership interest in property.

ASSESS UNIT HOLDERS. The expenses of maintaining and operating the building are paid by the unit owners in the form of fees and assessments that are imposed and collected by the homeowners' association.

IN SEVERALTY. The disposition of the deceased tenant's ownership is governed by the joint tenancy with right of survivorship, rather than by the person's will or the state's inheritance laws. In this situation, the sister becomes the sole owner, in severalty.

CONDOMINIUM. Real estate ownership that involves holding title to an individual unit and a specified share of the undivided interest in the common elements is a condominium.

THE CO-TENANTS MUST BE HUSBAND AND WIFE. Tenancy by the entirety is recognized in Pennsylvania. Each spouse has an equal, undivided interest in the property. Unless another form of co-ownership is specified, a tenancy by the entirety is automatically created, by virtue of a legally formed marriage, when the owners take title as husband and wife.

THEY MAY VOID THE AGREEMENT WITHIN FIVE DAYS OF RECEIVING THE INFORMATION. The unit owner must furnish the resale certificate along with the condominium documents for the prospective purchasers' review prior to the closing. Buyers who receive this information after they've signed an agreement of sale have the right to void the agreement within five days after receiving the information, if they so choose.

A RESALE CERTIFICATE. A resale certificate prepared by the owners' association and containing pertinent financial information must be provided to second and subsequent owners. First purchasers of newly constructed units must be provided with a public offering statement, a property report, and a two-year warranty against structural defects.

THE LAST SURVIVOR BECOMES A SEVERALTY OWNER. Trusts may be created by agreement during a property owner's lifetime (a living trust) or established by the terms of a will (a testamentary trust).

THE MAN IS THE TRUSTOR, THE SISTER IS THE TRUSTEE, AND HIS DAUGHTER IS THE BENEFICIARY. The trustor (the man) is the party creating the trust. Title to the vineyard is held by the trustee (the sister) for the benefit of the beneficiary of the trust (the daughter).

TENANTS IN COMMON. If the deed of conveyance does not stipulate the tenancy being created, Pennsylvania law recognizes the concurrent owners as tenants in common.

THE CO-TENANTS MUST BE HUSBAND AND WIFE. Tenancy by the entirety is recognized in Pennsylvania. Each spouse has an equal, undivided interest in the property. Unless another form of co-ownership is specified, a tenancy by the entirety is automatically created, by virtue of a legally formed marriage, when the owners take title as husband and wife.

BE APPROVED BY THE BOARD OF DIRECTORS. Many co-op bylaws require that the board of directors approve any prospective shareholders. However, state and federal fair housing laws prohibit such decisions based on racial or religious criteria.

A DECLARATION BY ONE SPOUSE. In addition to the death of one spouse, a tenancy by the entirety may be terminated by an agreement between both parties (through the execution of a new deed), a divorce (which leaves the parties as tenants in common), and a court-ordered sale of the property to satisfy a judgment against the husband and wife as joint debtors (the tenancy is dissolved so that the property can be sold to pay the judgment).

LIMITED ONLY BY WEATHER AND ACCESS. Campground membership is similar to time-share use. Normally, the owner is not limited to a specific time for using the property; use is limited only by weather and access.

IN SEVERALTY. The disposition of the deceased tenant's ownership is governed by the joint tenancy with right of survivorship, rather than by the person's will or the state's inheritance laws. In this situation, the sister becomes the sole owner, in severalty.

THE DEBT BECOMES A LIEN AGAINST THE UNIT. If the condo fees are not paid, the homeowners' association may seek a court-ordered judgment to have the delinquent owner's unit sold to cover the outstanding amount or place a lien on the property.

TENANCY BY THE ENTIRETY. When property is conveyed to grantees or devisees who are clearly identified as husband and wife, Pennsylvania law recognizes the estate created as a tenancy by the entirety.

TIME-SHARE USE. Freehold interests are ownership interests. A time-share use interest refers to the contract right to use real estate owned by a developer for a specified time. It differs from a time-share estate, which creates an ownership interest in property.

GENERAL LIEN. The terms voluntary and involuntary refer to the manner in which a lien is created, not what property the lien affects. Specific liens affect only one particular property. A general lien affects all property, real and personal, owned by a debtor.

A SPECIAL ASSESSMENT. Municipal improvements that benefit particular parcels of property are funded by special assessments levied against those properties.

REAL ESTATE TAXES DUE. If a property is sold at a foreclosure proceeding, outstanding real estate taxes and special assessments will be paid first. Tax liens take priority over other liens.

RECORD A NOTICE OF THE LIEN AND FILE A COURT SUIT WITHIN THE TIME REQUIRED BY STATE LAW. In Pennsylvania, a contractor can record a notice of the lien and enforce the lien by court action (a foreclosure) to collect the debt from the sale of the real estate.

AN UNPAID MORTGAGE LOAN. All liens are encumbrances, but not all encumbrances are liens. Easements and encroachments are encumbrances, not liens. Liens are financial claims to enforce payment of a debt. An unpaid mortgage loan creates a specific, voluntary lien against the property.

A LIS PENDENS. When any suit is filed that affects title to real estate, a special notice, known as a lis pendens (Latin for litigation pending ) is recorded. A lis pendens is not itself a lien, but rather a notice of a possible future lien.

THEY TAKE PRIORITY OVER MECHANICS' LIENS. Special assessments are tax liens affecting a particular property. They take priority over other types of liens, including mechanics' liens.

FORECLOSURE. A lien can be used to force the payment of an assessment or other special charge. If a lien is not paid in the allotted time, the lienholder may foreclose on the lien, potentially forcing the sale of the property.

A JUDGMENT. The seller of the real estate can sue the purchaser in court. If the suit is successful, the court issues a decree establishing the amount the debtor owes and provides for money to be awarded. This decree is known as a money judgment.

$3,904.69. $255,000 × 35 percent × 1.5 ÷ 100 × $3.50 = $3,904.69.

A JUDGMENT. The seller of the real estate can sue the purchaser in court. If the suit is successful, the court issues a decree establishing the amount the debtor owes and provides for money to be awarded. This decree is known as a money judgment.

A GENERAL LIEN COVERS ALL OF THE DEBTOR'S PROPERTY, WHILE A SPECIFIC LIEN IS COVERS ONLY A CERTAIN PIECE OF REAL PROPERTY. General liens affect all property, both real and personal, of a debtor while specific liens are secured by a specific parcel of real estate and affect only that particular property.

INVOLVE A DEBT. A mortgage lien is a specific voluntary lien. A judgment is a general involuntary lien that results from a court decree. Both involve a debt incurred by the property owner.

FILE A MECHANIC'S LIEN WITHIN SIX MONTHS AFTER THE WORK WAS COMPLETED. Under the Pennsylvania Mechanic's Lien Law, a contractor or subcontractor can file a claim with the court of common pleas in the county in which the property is located within six months after the work is completed (entitlement to a lien is subject to certain exceptions and compliance with procedures for serving notice on the property owner).

AD VALOREM TAXES. General real estate taxes are levied and assessed according to the value of the property subject to taxation. Ad valorem is the Latin term foraccording to value .

$1,477. Equalization factors are applied to achieve uniformity by raising or lowering assessments. The assessed value of the property is multiplied by the equalization factor, and then the tax rate is applied to the equalized assessment. A property assessed at $47,250 with an equalization factor of 125 percent would be taxed at a value of $59,062.50 ($47,250 × 125%). With a tax rate of 25 mills (0.025), the tax would be $1,477 ($59,062.50 × 0.025).

PHILADELPHIA. Pennsylvania counties are divided into nine different classes, depending on population. Philadelphia, whose population is more than 1,500,000, is the only first class county.

WITHIN SIX MONTHS OF COMPLETING THE WORK. Under the Pennsylvania Mechanic's Lien Law, a contractor or subcontractor can file a claim with the court of common pleas in the county in which the property is located within six months after the work is completed.

AN APARTMENT BUILDING. In Pennsylvania, the general theory is that property used for certain public purposes is tax exempt. Apartment buildings owned by private individuals or entities are generally not exempt from real estate taxes.

REAL ESTATE TAXES DUE. If a property is sold at a foreclosure proceeding, outstanding real estate taxes and special assessments will be paid first. Tax liens take priority over other liens.

A GENERAL LIEN COVERS ALL OF THE DEBTOR'S PROPERTY, WHILE A SPECIFIC LIEN IS COVERS ONLY A CERTAIN PIECE OF REAL PROPERTY. General liens affect all property, both real and personal, of a debtor while specific liens are secured by a specific parcel of real estate and affect only that particular property.

RECORD A NOTICE OF THE LIEN AND FILE A COURT SUIT WITHIN THE TIME REQUIRED BY STATE LAW. In Pennsylvania, a contractor can record a notice of the lien and enforce the lien by court action (a foreclosure) to collect the debt from the sale of the real estate.

THE CURRENT YEAR'S REAL ESTATE TAX LIEN. In general, the rule for priority of liens is first to record, first in right (priority); however, real estate taxes and special assessments generally take priority over all other liens, regardless of the order in which the liens are recorded.

$3,904.69. $255,000 × 35 percent × 1.5 ÷ 100 × $3.50 = $3,904.69.

INVOLVE A DEBT. A mortgage lien is a specific voluntary lien. A judgment is a general involuntary lien that results from a court decree. Both involve a debt incurred by the property owner.

$1,350. Market value ($180,000) times the tax ratio (25%) equals the assessed value ($45,000). A tax rate of 30 mills is expressed as 0.030. Therefore, $45,000 × 0.030 equals a tax bill of $1,350.

PHILADELPHIA. Pennsylvania counties are divided into nine different classes, depending on population. Philadelphia, whose population is more than 1,500,000, is the only first class county.

73.94. $84,500 × 35% = $29,575 (assessed value) × 0.03 = $887.25 (annual tax) ÷ 12 = $73.94 monthly tax.

SPECIAL ASSESSMENTS. Special assessments are special taxes on real estate to fund public improvements to the property. Property owners in the improvement area are required to pay for them because their properties benefit directly from the improvements.

A LIS PENDENS. The general contractor would protect his interest or claim by recording a notice of lis pendens (litigation pending). This serves as notice of a possible future lien against the property.

The answer is GENERAL WARRANTY. A general warranty deed binds the grantor to covenants or warranties that provide a grantee with the greatest protection of any type of deed.

The answer is THE GRANTOR GUARANTEES THAT THE TITLE WILL BE GOOD AGAINST THE TITLE CLAIMS OF THIRD PARTIES. Of the five covenants in a general warranty deed, the covenant of quiet enjoyment establishes that the grantee's claim to title will be defended against third parties who bring court action in an attempt to establish superior title to the property.

The answer is GRANTOR. Only a grantor executes (signs) the deed. Title passes when the deed is delivered and accepted by the grantee.

The answer is INVOLUNTARY ALIENATION. Devise, descent, and escheat all refer to transfer of title subsequent to the death of the titleholder. Involuntary alienation occurs by operation of law, as in a foreclosure or condemnation action.

The answer is STATUTE OF FRAUDS. A deed is a written instrument by which an owner of real estate intentionally conveys the owner's right, title, or interest in a parcel of real estate to another. The statute of frauds requires all deeds to be in writing.

The answer is A TESTATOR. From a legal perspective, a person dies either testate (with a will) or intestate (without a will.) The person who dies leaving a will is known as the testator.

The answer is BARGAIN AND SALE DEED. A bargain and sale deed contains no expressed warranties against encumbrances. It does, however, imply that the grantor holds title to the property.

The answer is ADVERSE POSSESSION. An individual who makes a claim to a property, takes possession of it and, most important, uses it may take title away from an owner who fails to use or inspect the property for a period of years by adverse possession. The law recognizes that the use of land is an important function of its ownership.

The answer is THE DELIVERY OF THE DEED. A title is not considered transferred until the deed is actually delivered to and accepted by the grantee. The grantor may deliver the deed to the grantee either personally or through a third party.

The answer is TO ENSURE THAT THE SELLER CAN DELIVER MARKETABLE TITLE. Title insurance is considered the best defense of title; the title insurance company will defend any lawsuit based on an insurable defect and pay claims if the title proves to be defective

The answer is A SEARCH OF THE PUBLIC RECORDS WILL PROVE THAT THE TITLE IS MARKETABLE. Public records contain detailed information about each parcel of real estate and are crucial in establishing ownership, giving notice of encumbrances, and establishing priority of liens. They protect the interests of real estate owners, taxing bodies, creditors, and the public.

The answer is THE AMOUNT OF COVERAGE IS COMMENSURATE WITH THE LOAN AMOUNT. A lender's policy is issued for the benefit of the mortgagee. The amount of the coverage depends on the amount of the mortgage loan.

The answer is A SUIT TO QUIET TITLE. If ownership cannot be traced through an unbroken chain, a gap or cloud in the chain of title is said to exist. In these cases, the cloud on the title makes it necessary to establish ownership by a court action called a suit to quiet title.

The answer is FINANCING STATEMENT. For a lender to create a security interest in personal property, the Uniform Commercial Code (UCC) requires the borrower to sign a security agreement. A short notice of this agreement, called a financing statement or UCC-1, must be filed with the recorder of deeds.

The answer is A RECORD OF THE PROPERTY'S OWNERSHIP. The term chain of title refers to the record of a property's ownership over a period of time. Each owner is linked to the next, and then to the next, and so on, so that a "chain" is formed.

The answer is SUBROGATION. When a title company makes a payment to settle a claim covered by a policy, the company generally acquires the right to any remedy or damages available to the insured. This right is called subrogation.

The answer is PROTECTS THE INTERESTS OF THE GRANTEE. Properly recording documents in the public record serves as constructive notice to the world of an individual's rights or interest, as does taking physical possession of a property.

The answer is IMPROPERLY DELIVERED DEEDS. A standard title insurance policy usually covers improperly delivered deeds, defects found in public records, forged documents, incompetent grantors, and incorrect marital statements.

The answer is ANYONE. By entering documents into the public record, the information becomes available to anyone who may be interested in researching the title to a parcel of real estate. Access to public records in unlimited.

The answer is UNIFORM COMMERCIAL CODE. The Uniform Commercial Code (UCC) is a commercial law statute that applies to personal property transactions; it does not apply to real estate. The UCC governs the documents when personal property is used as security for a loan.

The answer is COUNTY RECORDER OF DEEDS. In Pennsylvania, the county recorder of deeds maintains most of the public records that affect title to real property. The county treasurer and clerks of courts and other county and municipal offices maintain other important records as well.

The answer is ACKNOWLEDGED. To be eligible for recording in Pennsylvania, a document must be in writing, properly executed (signed), and acknowledged before a notary public.

The answer is TO ENSURE THAT THE SELLER CAN DELIVER MARKETABLE TITLE. Title insurance is considered the best defense of title; the title insurance company will defend any lawsuit based on an insurable defect and pay claims if the title proves to be defective.

The answer is BUYER'S INTEREST IS NOT FULLY PROTECTED AGAINST THIRD PARTIES. Recording acts also generally give legal priority to those interests recorded first—the first in time, first in right, or first come-first served principle; such protection is not available until the deed is recorded.

The answer is SUBROGATION. When a title company makes a payment to settle a claim covered by a policy, the company generally acquires the right to any remedy or damages available to the insured. This right is called subrogation.

The answer is RIGHTS OF PARTIES IN POSSESSION. A standard coverage title insurance policy normally insures the title as it is known from public records. This coverage does not include the rights of the parties in possession, but it does include such defects as forged documents, conveyances by incompetent grantors, incorrect marital statements, and improperly delivered deeds.

The answer is TITLE INSURANCE. Title evidence establishes proof of ownership. In Pennsylvania, a certificate of title or title insurance is used as proof of ownership.

The answer is EXCLUSIONS. The policy generally names certain uninsurable losses, called exclusions. These include zoning ordinances, restrictive covenants, easements, certain water rights, current taxes, and special assessments.

The answer is WRITES A BRIEF HISTORY OF THE TITLE AFTER INSPECTING THE COUNTY RECORDS FOR DOCUMENTS AFFECTING THE TITLE. An abstractor examines public records in the recorder of deeds and other government offices. Following the search, the abstractor prepares a summary report of events and proceedings throughout the title's history. This report is an abstract of title.

The answer is IMPROPERLY DELIVERED DEEDS. A standard title insurance policy usually covers improperly delivered deeds, defects found in public records, forged documents, incompetent grantors, and incorrect marital statements.

The answer is THE BUYER. By taking physical, actual possession of the property, the buyer has given constructive notice of the buyer's interest. Even though the buyer did not record the deed, the buyer's interest would be superior to that of future purchaser.

The answer is BUYER'S INTEREST IS NOT FULLY PROTECTED AGAINST THIRD PARTIES. Recording acts also generally give legal priority to those interests recorded first—the first in time, first in right, or first come-first served principle; such protection is not available until the deed is recorded.

The answer is A RECORD OF THE PROPERTY'S OWNERSHIP. The term chain of title refers to the record of a property's ownership over a period of time. Each owner is linked to the next, and then to the next, and so on, so that a "chain" is formed.

The answer is ANYONE. By entering documents into the public record, the information becomes available to anyone who may be interested in researching the title to a parcel of real estate. Access to public records in unlimited.

The answer is WRITES A BRIEF HISTORY OF THE TITLE AFTER INSPECTING THE COUNTY RECORDS FOR DOCUMENTS AFFECTING THE TITLE. An abstractor examines public records in the recorder of deeds and other government offices. Following the search, the abstractor prepares a summary report of events and proceedings throughout the title's history. This report is an abstract of title.

The answer is GIVE CONSTRUCTIVE NOTICE OF THE REAL ESTATE INTEREST. Constructive notice is the legal presumption that information is available and can be obtained by an individual through diligent inquiry.

The answer is A SUIT TO QUIET TITLE. If ownership cannot be traced through an unbroken chain, a gap or cloud in the chain of title is said to exist. In these cases, the cloud on the title makes it necessary to establish ownership by a court action called a suit to quiet title.

The answer is A SEARCH OF THE PUBLIC RECORDS WILL PROVE THAT THE TITLE IS MARKETABLE. Public records contain detailed information about each parcel of real estate and are crucial in establishing ownership, giving notice of encumbrances, and establishing priority of liens. They protect the interests of real estate owners, taxing bodies, creditors, and the public.

The answer is ONE OF THE FORMS OF PROOF OF OWNERSHIP. Proof of ownership is evidence that title to the property is marketable. The grantor's interest in the property, as well as proof of the condition of the grantor's interest at the time of conveyance, can be ascertained by a certificate of title or title insurance. Both are used as proof of ownership.

The answer is IMPROPERLY DELIVERED DEEDS. A standard title insurance policy usually covers improperly delivered deeds, defects found in public records, forged documents, incompetent grantors, and incorrect marital statements.

The answer is THE AMOUNT OF COVERAGE IS COMMENSURATE WITH THE LOAN AMOUNT. A lender's policy is issued for the benefit of the mortgagee. The amount of the coverage depends on the amount of the mortgage loan.

The answer is THE AMOUNT OF COVERAGE IS COMMENSURATE WITH THE LOAN AMOUNT. The lender's title insurance policy is issued for the benefit of the mortgage company, and the amount of coverage depends on the amount of the mortgage loan.

The answer is PROTECTS THE INTERESTS OF THE GRANTEE. Properly recording documents in the public record serves as constructive notice to the world of an individual's rights or interest, as does taking physical possession of a property.

The answer is RECORDING GIVES CONSTRUCTIVE NOTICE TO THE WORLD OF THE RIGHTS AND INTERESTS IN A PARTICULAR PARCEL OF REAL ESTATE. Properly recording documents in the public record serves as constructive notice to the world of a party's right, claim, or interest in real estate. The information is available to and can be obtained by anyone through diligent inquiry.

The answer is UNIFORM COMMERCIAL CODE. The Uniform Commercial Code (UCC) is a commercial law statute that applies to personal property transactions; it does not apply to real estate. The UCC governs the documents when personal property is used as security for a loan.

The answer is CAN BE SOLD IF A BUYER AGREES TO TAKE IT, SUBJECT TO THE ENCUMBRANCES. An encumbrance is a right, claim, or interest held by someone other than the landowner. The fact that title is encumbered does not prevent that title from being transferred, but the new owner's title would be subject to those existing encumbrances.

The answer is A SEARCH OF THE PUBLIC RECORDS WILL PROVE THAT THE TITLE IS MARKETABLE. Public records contain detailed information about each parcel of real estate and are crucial in establishing ownership, giving notice of encumbrances, and establishing priority of liens. They protect the interests of real estate owners, taxing bodies, creditors, and the public.

The answer is A VALID CONTRACT. A contract is a voluntary agreement or promise between legally competent parties to do or refrain from doing certain things. A contract is valid if it meets the essential requirements of contract law that make it legally sufficient to be enforceable in court.

The answer is PAROL EVIDENCE RULE. Under the parol evidence rule, a written contract takes precedence over oral agreements or promises.

The answer is AN OFFER FROM A THIRD PARTY. An offer from another party does not terminate an offer on the table; however, offers are terminated by revocation before acceptance, the death of the offeror before acceptance, and a counteroffer by the offeree.

The answer is PARTIAL PERFORMANCE. Partial performance of the terms, along with a written acceptance by the other party for whom acts have not been done or to whom money is owed. For instance, if the parties agree that performance is close enough to completion, they can agree that the contract is discharged even if some minor elements remain unperformed.

The answer is ALL REAL ESTATE SALES AGEREMENTS. The statute of frauds requires certain types of contracts to be in writing to be enforceable. By statute, agreements of sale for real estate and certain lease agreements must be written.

The answer is AN OFFER. Offer and acceptance is essential for a valid contract. The seller has not accepted the terms of the offer made by the buyer. Therefore, the buyer has only signed and made an offer to purchase, but the document has no legal standing as a contract.

The answer is AS LONG AS THEY DO NOT CHARGE A FEE FOR THIS SERVICE. In Pennsylvania, licensees are permitted to fill in the blanks on certain preprinted documents such as agreements of sale and leases as long as they do not charge a separate fee for completing the forms.

The answer is AGREEMENTS OF SALE AND LEASES. The Plain Language Consumer Contract Act in Pennsylvania promotes the use of plain language to protect consumers from making contracts they do not understand, such as loan documents and agreements of sale and leases; exempt documents include deeds, mortgages, certificates of title and title insurance contracts, documents used by state or federal financial institutions, contracts to buy securities, insurance policies, and commercial leases.

The answer is UNENFORCEABLE. An oral agreement is valid between the parties, but not enforceable in a court of law.

The answer is EARNEST MONEY. The requirements of a valid contract include offer and acceptance, consideration, and legality of object. An earnest money deposit is not necessary for a contract to exist.

The answer is BREACHED. "Time is of the essence" means that the contract obligations must be performed within the specific time frames stated in the contract. A party who fails to perform on time is liable for breach of contract.

The answer is UNENFORCEABLE. An oral agreement is valid between the parties, but not enforceable in a court of law.

The answer is AN OFFER FROM A THIRD PARTY. An offer from another party does not terminate an offer on the table; however, offers are terminated by revocation before acceptance, the death of the offeror before acceptance, and a counteroffer by the offeree.

The answer is VOIDABLE BY THE BUYER BECAUSE OF FRAUD. A voidable contract appears on the surface to be valid, but may be rescinded or disaffirmed by one or both parties based on some legal principle. In this situation, the buyer, but not the seller, is permitted to void the contract if so desired.

The answer is ALL PARTIES TO THE CONTRACT ARE BOUND TO ACT. A bilateral contract is one in which all parties (both sides of the contract) promise to do something. The basis of the contractual relationship is an exchange of promises: "I will do this, and in return you will do that."

The answer is VOID. A definite statement of consideration must be included in a contract as evidence that something of value was given in exchange for the promises made. If there is no consideration, the contract is void.

The answer is NOT LEGALLY ENFORCEABLE. A void contract has no legal force or effect because it lacks some or all of the essential elements of a contract. A void contract was never a legal contract.

The answer is A VALID CONTRACT. A contract is a voluntary agreement or promise between legally competent parties to do or refrain from doing certain things. A contract is valid if it meets the essential requirements of contract law that make it legally sufficient to be enforceable in court.

The answer is AGREEMENTS OF SALE AND LEASES. The Plain Language Consumer Contract Act in Pennsylvania promotes the use of plain language to protect consumers from making contracts they do not understand, such as loan documents and agreements of sale and leases; exempt documents include deeds, mortgages, certificates of title and title insurance contracts, documents used by state or federal financial institutions, contracts to buy securities, insurance policies, and commercial leases.

The answer is VALID. Pennsylvania's Electronic Transaction Act facilitates e-commerce and protects the rights of consumers in electronic transactions. The law generally provides that, with the consumer's consent, electronic records or signatures meet the requirement for a record to be in writing, and that an electronic signature is recognized as valid.

The answer is TRUSTOR. In financing arrangements in which a deed of trust rather than a mortgage is used, the borrower transfers title to the property to a trustee, who then holds title for the lender as the beneficiary. The borrower is the trustor.

The answer is $75,943.76. At a 7½ percent interest rate, a $76,000 loan would result in $5,700 interest per year ($76,000 × 7.5% or 0.075). Interest for one month would equal $475 ($5,700 ÷ 12). If the principal and interest payment was $531.24, the amount attributed to principal is $56.24 ($531.24 – $475). After that payment, the remaining principal balance would be $75,943.76.

The answer is DEED IN LIEU OF FORECLOSURE. As an alternative to foreclosure, the lender may accept a deed in lieu of foreclosure from the borrower by mutual agreement rather than by lawsuit. The lender loses rights pertaining to mortgage insurance claims and junior liens are not eliminated.

The answer is TO PROVIDE SECURITY FOR THE LOAN. A mortgage is a lien on the real property of a debtor to provide security for the loan. If a borrower defaults on the payments or fails to fulfill any of the other obligations set forth in the mortgage or deed of trust, the lender's rights can be enforced through foreclosure

The answer is LOCAL CREDIT UNION. A local credit union participates in the primary market. The secondary market consists of Fannie Mae, Freddie Mac, and Ginnie Mae.

The answer is INTEREST MAY BE CHARGED IN ARREARS, MEANING AT THE END OF EACH PERIOD FOR WHICH INTEREST IS DUE. A fully amortized mortgage loan requires fixed payments at regular intervals, usually monthly. Interest is paid in arrears and is calculated on the principal owed for that period. The amount attributed to principal and interest changes with each payment, with the entire debt and all interest having been paid in full at the end of the loan term.

The answer is HYPOTHECATION. When a borrower is required to pledge specific real property as security (collateral) for the loan, and the debtor retains the right of possession and control, the creditor receives an underlying equitable right in the pledged property. This type of pledging is termed hypothecation.

The answer is DISCOUNT POINT. Discount points are used to increase the lender's yield (rate of return) on its investment, especially when the interest rate that a lender charges for a loan might be less than the yield an investor demands. To make up the difference, the lender charges the borrower discount points.

The answer is ACCELERATION CLAUSE. When a borrower is delinquent in making payments or breaches other conditions of the mortgage, the lender may declare the entire debt due and payable immediately. This right is provided in the acceleration clause.

The answer is ASSIGNMENT OF MORTGAGE. Without changing the provisions of a contract, the original mortgagee can sell the mortgage note by endorsing the note to the third party and executing an assignment of mortgage.

The answer is ACCELERATION CLAUSE. When a borrower is delinquent in making payments or breaches other conditions of the mortgage, the lender may declare the entire debt due and payable immediately. This right is provided in the acceleration clause.

The answer is EQUITABLE REDEMPTION. Certain states, though not Pennsylvania, allow defaulted borrowers a period during which they can redeem their real estate after the foreclosure sale. This period is known as a statutory redemption period.

The answer is $34.37. $85,000 × .07 = $495.83 interest due for first month. $530.20 – $495.83 = $34.37 applied to principal. After the first month's payment, the borrower owes $84,966.63.

The answer is ACCELERATION CLAUSE. An acceleration clause permits the lender to declare the entire debt due and payable immediately. Without the acceleration clause, the lender would have to sue the borrower every time a payment was overdue.

The answer is ALIENATION CLAUSE. An alienation clause, also known as a due-on-sale or resale clause, permits the lender to declare the entire loan balance due immediately upon the sale of the property. Lenders include this clause to prevent a second borrower from assuming a loan that has a current lower interest rate.

The answer is $99,925. $100,000 × .06 ÷ 12 = $500 first month's interest payment. $575 – $500 = $75; the $75 reduces the principal. After the first payment, the borrower owes $99,925.

The answer is INTEREST MAY BE CHARGED IN ARREARS, MEANING AT THE END OF EACH PERIOD FOR WHICH INTEREST IS DUE. A fully amortized mortgage loan requires fixed payments at regular intervals, usually monthly. Interest is paid in arrears and is calculated on the principal owed for that period. The amount attributed to principal and interest changes with each payment, with the entire debt and all interest having been paid in full at the end of the loan term.

The answer is DEED IN LIEU OF FORECLOSURE. As an alternative to foreclosure, the lender may accept a deed in lieu of foreclosure from the borrower. This is sometimes known as a friendly foreclosure because it is carried out by mutual agreement rather than by lawsuit.

The answer is A LOAN ORIGINATION FEE. Most lenders charge a loan origination fee to cover the expenses involved in generating the loan; such expenses include the loan officer's salary, paperwork, and the lender's other costs of doing business.

The answer is STRAIGHT. Under a straight, or term, loan, the borrower makes interest-only payments for the term and then pays the principal in one payment at the end of the term.

The answer is THE LICENSEE'S LICENSE IS SUSPENDED UNTIL THE FULL AMOUNT RECOVERED OUT OF THE FUND, PLUS INTEREST, IS REPAID. Chapter 8 of the RELRA addresses the Real Estate Recovery Fund, including the fact that a license is suspended until the amount paid from the fund is restored in full plus interest at the rate of 10 percent per year.

The answer is IS THE LICENSEE RESPONSIBLE FOR THE ACTIVITIES IN A REAL ESTATE CORPORATION. The broker of record is the individual broker responsible for the licensed real estate activities of a partnership, association, or corporation licensed as broker.

The answer is ACCEPTING A COMMISSION OR OTHER VALUABLE CONSIDERATION FROM A PERSON OTHER THAN THE EMPLOYING BROKER. Section 604 of the RELRA lists more than 24 specifically prohibited acts, among which is accepting a commission from anyone other than the employing broker. Licensees who engage in a prohibited act may be fined or have their licenses suspended or revoked.

The answer is THREE YEARS OF ACTIVE LICENSURE. A broker candidate must be at least 21 years of age and have been engaged as a licensed real estate salesperson for at least three years or have experience and/or education that the Commission considers equivalent.

The answer is VIOLATING BLUE-SKY LAWS. Violation of the blue sky laws would result in prosecution by federal and state authorities, but not the State Real Estate Commission (SREC). The SREC has jurisdiction over violations of the RELRA and its Rules and Regulations, which includes Section 604 (22) of the rules for violations of the Pennsylvania Human Relations Act.

The answer is IMMEDIATELY UPON MAILING THE CHANGE OF EMPLOYMENT NOTIFICATION. The change of employment notification serves as temporary license. A current license will be issued at the new location (as long as it is an approved office) for the unexpired license period.

The answer is MEMBERS OF THE COMMISSION ARE SELECTED BY THE STATE ASSOCIATION OF REALTORS ®. Members of the Real Estate Commission are appointed by the governor (202(a)), not the state association of REALTORS ®. The Commission prescribes subjects for testing, but the department contracts with a professional testing service to write and administer exams (403). The Commission also promulgates the Rules and Regulations (404) and reports to legislative committees (408).

The answer is PROVIDE A MEANS BY WHICH AN INJURED PARTY CAN COLLECT A JUDGMENT AWARD. The Real Estate Recovery Fund was established to provide a means for aggrieved persons to collect judgments awarded in civil court. These judgments must result from civil suits against real estate licensees for fraud, deceit, or misrepresentations in a real estate transaction.

The answer is ANYONE ACTING UNDER A POWER OF ATTORNEY. Sections 304 of the RELRA and 35.202 of the Regulations establish 11 exclusions from requirements for licensure, including owners who sell or rent their own property, those acting under a recorded power of attorney from the owner or lessor of real estate, and attorneys-at-law who receive a fee but do not represent themselves as brokers.

The answer is THE BUYER AND THE SELLER CAN AGREE IN WRITING THAT THE ESCROW MONEY WILL NOT BE DEPOSITED UNTIL THE AGREEMENT OF SALE IS ACCEPTED. The Commission's Rules and Regulations provide that a broker negotiating an agreement of sale may, with the written consent of both the buyer and seller, refrain from depositing earnest money into the escrow account until the agreement is signed by both parties.

The answer is PROVIDE A MEANS BY WHICH AN INJURED PARTY CAN COLLECT A JUDGMENT AWARD. The Real Estate Recovery Fund was established to provide a means for aggrieved persons to collect judgments awarded in civil court. These judgments must result from civil suits against real estate licensees for fraud, deceit, or misrepresentations in a real estate transaction.

The answer is INDEPENDENTLY HOLD AN OPEN HOUSE FOR OTHER LICENSEES. Unlicensed people (including unlicensed personal assistants) may not perform activities for which a license is required, including telemarketing. They may, however, host open houses that are not conducted for the public (such as open house tours for licensees) and communicate, but not interpret or explain, property information to the licensees.

The answer is BROKER'S BUSINESS NAME. The Commission's Rules and Regulations require the broker's business name to be included exactly as it appears on the license. Blind ads are expressly prohibited.

The answer is IMMEDIATELY UPON MAILING THE CHANGE OF EMPLOYMENT NOTIFICATION. The change of employment notification serves as temporary license. A current license will be issued at the new location (as long as it is an approved office) for the unexpired license period.

The answer is IMMEDIATELY. Although the broker must deposit these funds by the end of the business day following their receipt, if the funds are in the form of a check in connection with an offer to buy or lease real estate, the broker may hold the check until the offer is accepted, at which time the check must be deposited into the trust account by the end of the next banking day. If the offer is not accepted, then the broker (salesperson or associate broker) can return the uncashed check to the buyer or lessee.

The answer is ANYONE ACTING UNDER A POWER OF ATTORNEY. Sections 304 of the RELRA and 35.202 of the Regulations establish 11 exclusions from requirements for licensure, including owners who sell or rent their own property, those acting under a recorded power of attorney from the owner or lessor of real estate, and attorneys-at-law who receive a fee but do not represent themselves as brokers.

The answer is TURNED OVER TO THE BROKER. A salesperson or associate broker who receives deposits or any escrow moneys must immediately turn the funds over to the employing broker. If the offer is not accepted, then the broker (salesperson or associate broker) can return the uncashed check to the buyer or the lessee. Otherwise, it must be deposited into the broker's trust account by the end of the next business day.

The answer is BROKER OF RECORD. The activities for which a salesperson is licensed are performed under the supervision and ultimate responsibility of the employing broker.

The answer is CEMETERY SALESPERSONS. A cemetery salesperson is employed by a broker or a cemetery broker for the exclusive purpose of the cemetery lot sales. No education or examination is required for this license.

The answer is ONE 7-HOUR GENERAL MODULE AND ONE 7-HOUR RESIDENTIAL MODULE. All new salespersons licensed after December 1, 2007, must complete the mandated 7-hour general module and an additional 7 hours of either the residential module or the commercial module.

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