NC real estate broker pre-licensing exam

NC real estate broker pre-licensing exam Syndication -Answer-Two or more forms joining together as an entity to own real estate Estate in severalty -Answer-Ownership by one individual Concurrent ownership -Answer-Two or more persons share ownership with undivided interests Tenancy in common -Answer-Co-ownership without right of survivorship to other owners Police power -Answer-The broad right of the government to place reasonable restrictions on the use of privately held land Easement -Answer-A right of use or enjoyment that one person has in the hands of another for a specific purpose Leasehold estate -Answer-A tenant's right to possess real estate for the term of a lease Homestead rights -Answer-Protection of a primary home against certain creditors Deed restrictions -Answer-Private agreements that govern the use of land Lien -Answer-A claim that a party has against the property of another to secure payment of a debt Easement in gross -Answer-An easement given to a utility company in perpetuity Real property tax lien -Answer-A lien that takes property over all others Zoning ordinances -Answer-Enforced by local municipalities as a part of their right to govern land use License -Answer-Revocable in assignable permission granting privilege to use property Writ of attachment -Answer-Used to create encumbrance against real property Encroachment -Answer-Unauthorized use of another persons land Survey -Answer-Administered to reveal encroachments Lien waiver -Answer-Releases an unrecorded lien Methods of terminating easements (3) -Answer-1. Merger 2. Release 3. Abandonment Express agreement (easement) -Answer-Easement is real property interest and therefore transferred by deed and typically recordsd Types of specific liens (3) -Answer-1. Government lien 2. Mechanic/construction lien 3. Mortgage Types of general liens (3) -Answer-1. Judgment lien 2. IRS or state lien 3. Personal property tax lien Joint tenancy -Answer-Co-ownership with right of survivorship to other owners (not typical in NC) PITT -Answer-Possession, interest, title, time; must be present for joint tenancy Tenancy by the entirety -Answer-Only married couples; each spouse owns equal interest regardless of financial contribution Automatic survivorship -Answer-In a tenancy by the entirety, the surviving spouse becomes owner in severalty Termination of tenancy by the entirety (3) -Answer-1. Death of spouse 2. Mutual agreement 3. Divorxe Eminent domain -Answer-The right to take private land for public use Condemnation -Answer-The process of taking private land for public use Eminent domain vs. Condemnation -Answer-ED = right Condemnation = process Ad valorem -Answer-Latin meaning "at assessed value" Mill rate -Answer-Tax rate expressed as "dollars per $1000" (not used in NC) Escheat -Answer-Government acquisition of personal property when a property is abandoned and no heirs are assigned PETE (acronym) -Answer-Police power Eminent domain Taxation Escheat Annual tax (calc. formula) -Answer-Annual tax = assessed value x tax rate Assessed value (formula) -Answer-Market value x assessment rate Condominium -Answer-Real estate, portions of which are designed for separate ownership and the remainder for common ownership Common elements -Answer-Used by all unit owners in a tenancy in common (usually in condominiums and townhomes) Functions of a HOA (6) -Answer-1. Manage common elements 2. Adopt rules, regulations, and budgets 3. Adopts and amends bylaws 4. Impose and collect assessments 5. Holds annual meeting 6. Maintain insurance on common elements Types of freehold estates (3) -Answer-1. Fee simple absolute 2. Fee simple defeasible 3. Life estate Fee simple absolute -Answer-Freehold estate, highest level of property ownership; lasts forever and is transferable and knheritable Fee simple defeasible -Answer-Freehold estate based on conditions; can be a gift and has strict deed restrictions; transferable and inheritable Life estate -Answer-Grantee is the owner, grantor is fee simple absolute; when grantee dies, property returns to either grantor or remainderma