Real Estate Sales License Study Guide with complete
solution - Rhode Island
Deed of Trust Loan
Deed wherein legal title in real property is transferred to a trustee, which holds it as
security for a loan
Factors influencing real estate demand
- Population
- Demographics
- Employment and wage levels
Uses of Real Property
- Residential
- Commercial
- Mixed-Use
- Industrial
- Special Purpose
Bundle of Legal Rights, as part of Real Property, include:
Right of:
- Possession
- Control
- Enjoyment
- Exclusion
- Disposition
Title is:
- Right to ownership
- Bundle of legal rights
- Evidence of ownership provided by a deed
Emblements (personal property)
Annual plantings (not perennials) or crops or grains; also called Frutus industriales
Transactional broker (same as nonagent or facilitator)
a broker helps buyer and seller with paperwork and performs minimal duties
Legal tests for a fixture
- not easily removable (means of annexation)
- considered a permanent addition (adaptation to real estate)
- agreement of the parties (in the offer to purchase)
Accession
Trade fixtures that are not removed and become part of the real property being
purchased
,Physical characteristics of real estate
- Immobility
- Indestructibility
- Nonhomogeneity or uniqueness
Personalty
any tangible asset that can be moved (not fixed to land)
Loan programs with more flexible terms for those with lower credit ratings
- FHA (Federal Housing Administration)
- VA (Dept. of Veterans Affairs)
Investment considerations
- Appreciation
- Equity increase with an amortized loan
- Tax deductions
- Capital gains taxation exclusion (principal residence)
- Tax-free withdrawals from an IRA for downpayment
National Flood Insurance Act of 1968
- Subsidizes flood insurance
- Administered by FEMA (Federal Emergency Management Agency)
Planned Unit Development (PUD)
master planned communities with single family homes
Does a homeowner's insurance policy typically cover theft?
Yes, but not for a person injured in the home
Capital gains tax exclusion on a primary residence
- $500,000 if filing jointly
- $250,000 for a single filer
Basic form of homeowner's policy covers:
theft, smoke damage, damage from fire, glass breakage, riot, vandalism
Non-Agent
- Facilitator
- Intermediary
- Transactional Broker
- Transactional Coordinator
- Contract Broker
Real estate agency relationships are covered by:
- Common Law (established by tradition and court decisions)
- Statutory law (passed by state legislators and governing bodies)
Universal agent
Empowered to do anything the principal could do personally
Special or Limited Agent
Only for one specific business transaction
Designated Agent
, Authorized by the broker to act as the agent of a specific principal
Doctrine of prior appropriation
The right to use water other than limited domestic use is controlled by the state rather
than by the land owner adjacent to the water. A person must show a beneficial use for
the water, such as crop irrigation, in order to secure water rights.
Legal life estate
Homestead, dower, curtesy
a broker helps buyer and seller with paperwork and this is:
Transactional brokerage
Informed consent to act as a dual facilitator does not require:
that the dual facilitator refer client to another company if consumer refuses to give his or
her consent to licensee to act as a dual facilitator
Uniform Electronic Transactions Act (UETA)
Act served to make electronic transactions as enforceable as paper transactions.
Electronic Signatures in Global and national Commerce Act
Enacted by Congress in 2000 to facilitate the use of electronic records and signatures in
interstate and foreign commerce by ensuring the validity and legal effect of contracts
entered into electronically
Procuring cause
The effort that began a chain of events that brings about the desired result. Under an
open listing, the broker who is the procuring cause of the sale receives the commission.
Penalties for violating the Sherman Antitrust Act
- For individuals: $1M and ten years in prison
- For corporations: As high s $100M
- In a civil suit, triple damages plus legal fees and costs
Listing agreement is an employment contract between:
broker and seller (principal)
Real estate salesperson is a _____ of the broker
general agent
Listing agreement can be terminated when:
- Purpose is fulfilled
- Term expires
- Property is destroyed
- Title is transferred by law
- Broker and seller mutually agree to end the listing
- Either party dies or becomes incapacitated
- Broker or seller breaches the agreement
Condemnation
Eminent domain that begins with a judicial or an administrative proceeding
Freehold estate
lasts for an indeterminable period of time
solution - Rhode Island
Deed of Trust Loan
Deed wherein legal title in real property is transferred to a trustee, which holds it as
security for a loan
Factors influencing real estate demand
- Population
- Demographics
- Employment and wage levels
Uses of Real Property
- Residential
- Commercial
- Mixed-Use
- Industrial
- Special Purpose
Bundle of Legal Rights, as part of Real Property, include:
Right of:
- Possession
- Control
- Enjoyment
- Exclusion
- Disposition
Title is:
- Right to ownership
- Bundle of legal rights
- Evidence of ownership provided by a deed
Emblements (personal property)
Annual plantings (not perennials) or crops or grains; also called Frutus industriales
Transactional broker (same as nonagent or facilitator)
a broker helps buyer and seller with paperwork and performs minimal duties
Legal tests for a fixture
- not easily removable (means of annexation)
- considered a permanent addition (adaptation to real estate)
- agreement of the parties (in the offer to purchase)
Accession
Trade fixtures that are not removed and become part of the real property being
purchased
,Physical characteristics of real estate
- Immobility
- Indestructibility
- Nonhomogeneity or uniqueness
Personalty
any tangible asset that can be moved (not fixed to land)
Loan programs with more flexible terms for those with lower credit ratings
- FHA (Federal Housing Administration)
- VA (Dept. of Veterans Affairs)
Investment considerations
- Appreciation
- Equity increase with an amortized loan
- Tax deductions
- Capital gains taxation exclusion (principal residence)
- Tax-free withdrawals from an IRA for downpayment
National Flood Insurance Act of 1968
- Subsidizes flood insurance
- Administered by FEMA (Federal Emergency Management Agency)
Planned Unit Development (PUD)
master planned communities with single family homes
Does a homeowner's insurance policy typically cover theft?
Yes, but not for a person injured in the home
Capital gains tax exclusion on a primary residence
- $500,000 if filing jointly
- $250,000 for a single filer
Basic form of homeowner's policy covers:
theft, smoke damage, damage from fire, glass breakage, riot, vandalism
Non-Agent
- Facilitator
- Intermediary
- Transactional Broker
- Transactional Coordinator
- Contract Broker
Real estate agency relationships are covered by:
- Common Law (established by tradition and court decisions)
- Statutory law (passed by state legislators and governing bodies)
Universal agent
Empowered to do anything the principal could do personally
Special or Limited Agent
Only for one specific business transaction
Designated Agent
, Authorized by the broker to act as the agent of a specific principal
Doctrine of prior appropriation
The right to use water other than limited domestic use is controlled by the state rather
than by the land owner adjacent to the water. A person must show a beneficial use for
the water, such as crop irrigation, in order to secure water rights.
Legal life estate
Homestead, dower, curtesy
a broker helps buyer and seller with paperwork and this is:
Transactional brokerage
Informed consent to act as a dual facilitator does not require:
that the dual facilitator refer client to another company if consumer refuses to give his or
her consent to licensee to act as a dual facilitator
Uniform Electronic Transactions Act (UETA)
Act served to make electronic transactions as enforceable as paper transactions.
Electronic Signatures in Global and national Commerce Act
Enacted by Congress in 2000 to facilitate the use of electronic records and signatures in
interstate and foreign commerce by ensuring the validity and legal effect of contracts
entered into electronically
Procuring cause
The effort that began a chain of events that brings about the desired result. Under an
open listing, the broker who is the procuring cause of the sale receives the commission.
Penalties for violating the Sherman Antitrust Act
- For individuals: $1M and ten years in prison
- For corporations: As high s $100M
- In a civil suit, triple damages plus legal fees and costs
Listing agreement is an employment contract between:
broker and seller (principal)
Real estate salesperson is a _____ of the broker
general agent
Listing agreement can be terminated when:
- Purpose is fulfilled
- Term expires
- Property is destroyed
- Title is transferred by law
- Broker and seller mutually agree to end the listing
- Either party dies or becomes incapacitated
- Broker or seller breaches the agreement
Condemnation
Eminent domain that begins with a judicial or an administrative proceeding
Freehold estate
lasts for an indeterminable period of time
