(Summary) Pearson Real Estate Exam, With Complete Solution

(Summary) Pearson Real Estate Exam, With Complete Solution abatement legal action to stop a nuisance. can also be a reduction of a property tax assessment holographic will a handwritten, signed, and dated will. No witnesses are needed. inverse condemnation an action by an owner to force a government unit to take property when, by its action, the government has wrongfully restricted use. laches the doctrine that upholds the loss of the right to enforce an agreement or a restriction because of the delay in bringing action worked to the detriment of the other party lis pendens a recorded notice of a pending lawsuit concerning a property. Though not a lien, this provides a constructive notice that an action is pending against the property lien a monetary encumbrance that is secured by real estate liquidated damages advance agreement as to the amount of damages for nonperformance when exact damages may be difficult to ascertain. If so unreasonable that the court considers them a penalty, they will not be enforced. accretion a gradual buildup of soil by action of water or wind accession obtaining title as a result of attaching or joining property to other property attachment the legal seizure of property under court order prior to judgement when there is belief that the property will not be available after judgment easement by implication encumbrance anything that affects title, such as liens, easements, or restrictions easement by prescription an easement created by open, notorious, and hostile use of property for a prescribed period of time tacking on adding a previous owner's use to satisfy the statutory period of use for an easement by prescription or a title by adverse possession adverse possession a means of obtaining title from another by open, hostile, and continuous use for a statutory period of time. In some states, it requires payment of taxes. cumulative zoning zoning that allows the designation category of use as well as less restrictive uses reliction/dereliction land that forms after water recedes (such land belongs to owners of waterfront property) special warranty deed a deed in which the seller warrants title only as to defects arising during the grantor's ownership injunction a court action to cease and desist from a course of action specific performance the legal remedy of requiring a party to perform as agreed; ordinarily granted when money damages are inadequate devise the passing of real property by will legacy a bequest of money by will bequest (verb: bequeath) personal property given by will descent hereditary succession by act of law when property does not pass by will seisin possession by one who claims rightful ownership value= net/rate contract of adhesion a one-sided "take it or leave it" contract rescission of contract setting aside the contract and placing the parties back in the conditions they were in prior to the contract (as opposed to a waiver, which leaves them as they are) reformation a court action to rectify a mistake in a deed or contract so it reads as it was intended to read novation the substitution of one agreement for another, or the substitution of parties to the agreement duty of care reasonable or diligent care, in carrying out the duties of the agency duty of obedience obey the lawful instructions of the principal duty of accounting the agent must account for all funds received or disbursed on behalf of the principle duty of loyalty the agent must be loyal to the principal. Cannot disclose to 3rd party any fact about the principal or agency that are not beneficial to the principal. Includes making a "secret profit" duty of disclosure the agent has a duty of full disclosure and must inform the principal of any facts likely to influence the principal's decision making process nominal damages a token amount awarded by a court when no actual damages result from a wrongful act Sherman Antitrust Act federal law that makes price-fixing, market allocation agreements, and other actions to reduce competition illegal situs the preference of buyers for particular areas accord and satisfaction the act of accepting a different consideration than agreed Civil Rights Act of 1866 Law that prohibits race discrimination in housing Civil Rights Act of 1964 Law that prohibits discrimination in government-related housing Civil Rights Act of 1968 Title VIII of this act is known as the federal Fair Housing Act. It prohibits discrimination. exclusive-agency listing A listing whereby the broker is the exclusive agent of the owner and is entitled to a commission if the broker or any other agent sells the property. If the owner sells the property without an agent, the broker is not entitled to a commission. exclusive-right-to-sell listing A listing whereby the agent is entitled to a commission if the property is sold during the listing term by anyone, including the owner. accrued depreciation depreciation to date; measured by the difference between the replacement cost new and the present value agency by estoppel an agency created when the principal's words or conduct lead another to believe in the agency and thereby act to the other's detriment agency by ratification an agency created by a principal approving an unauthorized act of another agency coupled with an interest an irrevocable agency under which the agent has an interest in the subject matter of the agency warranty deed a deed under which the grantor warrants the marketability of the title beneficiary the person receiving payments under a deed of trust; similar to a mortgagee beneficiary deed a deed that does not take effect until death of grantor book value cost plus improvement less depreciation taken boot money, personable property, or debt relief given to even off a trade. Taxable to the person receiving it. bulk zoning zoning for density with height, setback, and open space requirements capitalization rate a desired rate of return for an investment that is divided into the net income to determine a property's value mortgagee the lender mortgagor the borrower redlining refusing to make loans within designated areas; considered to violate the Civil Rights Act of 1968 steering the illegal practice of directing buyers to certain areas, based on race or national origin blockbusting the act of inducing panic selling for gain by exploiting the fear of loss in value due to minority members moving into an area. Illegal under the Civil Rights Act of 1968. caveat emptor "Let the buyer beware." Consumer rights laws have modified this old rule. certificate of title evidence of title issued by a registrar under the Torrens title system annual percentage rate (APR) an interest rate expressed in simple interest considering all finance charges bait and switch Truth-in-Lending Part of the Consumer Credit Protection Act; also known as Regulation Z. It is a disclosure act requiring the lender to show the interest as an annual percentage rate (APR) Fair Housing Act Same as Civil Rights Act of 1968 fee simple (aka fee simple absolute) the highest ownership possible; has no time limit and can be transferred or inherited. (Fee: an inheritable estate) Fannie Mae a private corporation that provides a secondary marketplace for mortgages lien theory the theory in a majority of states that a mortgage is a lien and not a transfer of title. title theory the theory that a mortgage is a transfer of title to secure a loan and not just a lien (used in a minority of states) time is of the essence a statement that makes prompt performance mandatory beneficiary the lender in a trust deed Torrens title a system of registering ownership in which the court keeps the record of title and issues certificates of title trustor the debtor who gives title to the trustee as security for the loan