Real Estate Express Final Exam 100% Correct

Real estate that includes non-physical interests, such as easements and restrictions is known as __ - Answer Real Property An item permanently attached to real property, such as an attached fence, is included in the definition of real property. Townships and sanctions - Answer A rectangular survey is composed of Townships that are square tracts of land six miles on each side. A township then is divided into 36 Sections which are square tracts of land one mile on a side. One mile is 5,280 square feet. So, 5,280 x 5,280 = 27,878,400 square feet. An acre is 43,560 square feet so one Section has (27,878,400 / 43,560 = 640) acres. What type of survey describes the perimeter of a tract of land. Its legal description contains angles and distances. It begins at a reference point, moves to a Point of Beginning (POB); traverses the perimeter of the property and returns to the POB. - Answer metes and bounds Eminent domain is the power of government to - Answer take private property for public use eminent domain uses - Answer A public entity can employ Eminent Domain to acquire private property FOR PUBLIC USE, not to then sell to another private owner for private use. But PUBLICLY OWNED property that has been acquired through Eminent Domain can be LEASED to a private entity for a use that the public will have access to, and the right to enjoyment such as a sports complex or entertainment center. what term refers to ownership of a single property by a single person or an entity. - Answer ownership in severalty When a person owns property in _______, they have the right of exclusive occupancy (keep everyone else off); the right of enjoyment without interference; and the right to waste, destroy or sell the property. - Answer fee simple A fee simple owner does have the right to grant an easement to someone to cross the property or use the property. A fee simple owner CANNOT condemn his own property. If a Joint Tenant dies the Surviving Joint Tenants automatically acquire the deceased interest per stirpes. Each receives a prorata share of the deceased property. This is known as - Answer Right of Survivorship A _____________ is an arrangement where a Trustors asset is transferred, to benefit someone over time. A _____ is charged with managing the Trust. A ______ is set up while the person establishing the trust, the _____ , is alive. A _____ is one that is set up and becomes effective only after the Trustor has died. - Answer beneficiary trust trustee living trust trustor testamentary trust What is the downside to a business owning its own property? - Answer it must operate, maintain and repair the building and pay all costs What term is used to describe revocable permission for the temporary private use of someone's property. - Answer a license *a ticket to a sporting event held on private property would be a license. What are the types of liens? - Answer voluntary and involuntary Property taxes are involuntary. A judgment lien is involuntary. A mechanic's lien is involuntary. A mortgage is a voluntary lien. When a deed is recorded, the purpose is to protect the owner's rights but also to provide notice to any buyer regarding any liens or attachments provided regarding the condition of the title of the property they are buying. This is known as - Answer constructive notice *The purpose of the recorded records at the court house is to provide notice to all members of the community. The primary purpose of a deed is to transfer title from a seller to a buyer. The seller who believes he is transferring "marketable" title without any problems will sign and deliver a _______. A seller who only wants to warrant no problems during the period of time he owned the property will provide a___________. A seller who does not want to guarantee anything will simply sign a _______. - Answer General Warranty Deed. Special or Limited Warranty Deed. Quit Claim Deed Enforcing repayment of a lien: - Answer The powers granted the lender in the promissory note and mortgage which are filed of record as a lien against the title is one of the means of enforcing the lien against the property. Distribution of Foreclosure Proceeds - Answer When a property is sold on the courthouse steps because the borrower failed to pay the loan, the first item to be paid is the costs of the sale, including advertising, attorney fees and trustee fees. Then any outstanding property taxes are paid. Then the liens against the property, ranked in order by filing date, until the money is exhausted. If there happens to be any money left over it will be paid to the debtor. A _________ usually occurs only if the value of the property is less than the debt owed. The lender files suit asking a court to order the borrower to pay the mortgage debt by a certain date or the lender will automatically gain full title to the property. - Answer strict foreclosure Constitutional Rights to Ownership - Answer The U. S. Constitution's Fifth Amendment mentions the right to property. The Founding Fathers upheld the economic view of property. They believed that private property ownership, as defined under common law, pre-existed government. The state and federal governments were the mere contractual agents of the people, not sovereign lords over them. All rights, not specifically delegated to the government, remained with the people-including the common-law provisions of private property. Zoning calls for defined areas that allow particular uses of property. Sometimes a use such as residential will be allowed next to a use such as industrial or manufacturing. In that event, to fulfill the objective of zoning, which is to "protect the people" a more moderate use will be allowed between the two zoned areas, called _____ - Answer buffer zones In order to qualify as a living space, a newly constructed home must be inspected by the local municipality's building inspector to make sure it was constructed in accordance with the local building codes. If it passes inspection a ______ will be issued. - Answer Certificate of Occupancy Reassessing the tax classification for a single property is called ___ - Answer spot assessments.... and is NOT allowed unless a material use of the property is changed. Some of the properties in every community are exempt from real estate and other property taxes. These include: - Answer churches, schools, and other not-for-profit organizations as well as state, county and city owned buildings, such as the Department of Transportation building. If a property owner does not pay the taxes for a property by the date set for being "delinquent," the property can be sold at auction to collect the taxes. In that case the winning bid gets a _____ - Answer tax deed, but not possession of the property, until a period of time has elapsed, allowing time for the original owner to redeem the property by paying taxes and interest on the amount owed. If the taxes are not paid by the delinquent owner within the allowed redemption period, the person holding the tax deed becomes the owner. Earning a commission - Answer When a licensee has a listing to market a property and has produced a ready, willing and able buyer who has agreed to pay what the seller has asked, and the seller decides to back out of the deal, the agent's brokerage has still earned and is due the agreed-upon commission Option Contracts - Answer While the rights to an option contract can usually be sold by the optionee to someone else before exercising the option the optionee cannot use the property before executing (closing) the contract. Counteroffers - Answer Offers must be accepted without a change in order to be a contract between an offeror and an offeree. When any change is made to an offer, the ORIGINAL offer is extinguished, becomes NULL and VOID and is no longer binding on the original offeror. The document, as altered, becomes a new offer, perhaps with handwritten changes initialed by the offeree (who now becomes the offeror of the new offer). If the original offeror (now the offeree) accepts the changes by initialing them, the document, with approved changes, becomes a new offer. Agreements, commonly used in insurance policies in which the parties involved do not have to perform a particular action until a specified "chance event" occurs. Events covered are those which cannot be controlled by either party, such as natural disasters, like floods or hurricanes, and/or death. - Answer Aleatory Contracts - Insurance Rescinding Contracts - Answer A contract requires a willing buyer and a willing seller, each of age, sane, under no pressure and unrelated. They both have to understand the terms of the contract the same way. There has to be good and/or valuable consideration. If there are contingencies (Title search, survey, physical inspections, and financing availability) that are not fulfilled, the contract is subject to possible rescission by either party. In that case the contract will be declared NULL and VOID. ADA Standards and Rules - Answer A contractor planning to build a new apartment complex, needs to be sure that the architect drawing the plans has consulted the Americans with Disabilities Act to include the latest rulings and avoid any potential fines. The type of construction most used in the construction of residential homes is the __ - Answer platform-frame method. Types of Agency - Answer When a licensee has a listing for a particular property with instructions to market that property for sale or lease, the licensee is a specific agent. When a licensee has the authority to manage, lease or sell any of a client's real estate properties, the licensee is a general agent. But when a licensee has a power of attorney that allows him to make decision for another individual as if he were in fact that individual, the licensee is a universal agent. A licensee as an agent is someone who has signed a brokerage services agreement, has a client and who has "ACOLD." This means he or she has to be __ - Answer Accountable for any property (money, real estate) of the client in which the agent controls; act with Care and diligence; be Obedient to the clients' lawful instructions; be Loyal to the client's interests above those of anyone else and Disclose or give notice of all information that will help the client while keeping confidential all information that might harm a client. A licensee who has not signed a brokerage services agreement has to be fair and honest with all parties. How often does a "good agent: communicate with their clients? - Answer weekly- regardless of interest from buyers/sellers Is lying to a lender about the sell price of a home, because it needs repairs and the buyer can't afford to pay for them an example of active or intentional fraud? - Answer Intentional Subagency - Answer A subagent is an "agent of an agent." When a listing agreement is signed a seller does have the right to reject the use of a sub-agent by the agent who is obtaining the listing from the seller. written disclosures by licensees - Answer All licensees who are entering into an agency relationship should provide a WRITTEN DISCLOSURE, at the FIRST SUBSTANTIVE CONTACT with a potential client what personal interests (if any) the licensee has with either the property, the buyers, the sellers, or any other situation which might affect the agent's ability to be unbiased when providing service. The licensee representing the seller is usually called the ______ and the licensee representing a buyer (or a tenant) is usually called the ____. - Answer "listing agent" "selling agent"