METRO BROKERS STUDY GUIDE UPDATED QUESTIONS
AND ANSWERS GRADED A+
✔✔
✔✔Leasehold estate - ✔✔a tenant's (lesee's) rights in real property through a lease,
where the landlord (lessor) conveys the exclusive right of possession in exchange for
rent, while retaining the fee simple ownership and a reversionary leased fee estate.
✔✔Estate at will - ✔✔also called a tenancy at will, tenant can occupy the property for an
unspecified period of time. Most states require notice to terminate, but ends with the
death of either party or sale of the property
✔✔Estate for years - ✔✔Definite beginning and end, no notice to terminate
✔✔Estate at sufferance - ✔✔The holdover only differs from a trespasser in that they
were at one time legal occupants. "suffering"
✔✔When can a seller sue a buyer for damages? - ✔✔Failure to preform according to
the terms of a contract is called default or breach of contract
✔✔POLAND - ✔✔Agents Duties to the Principal
- (Personal Performance, Obedience, Loyalty, Accountability, Notice, Due Care)
✔✔Estate in land - ✔✔An Estate in Land refers to the quality, quantity, nature and
extent of ownership interest that a person holds in real property. In order for and interest
to be an estate, there must be a present or future right to OCCUPY the property.
✔✔Possessory estate - ✔✔current right to occupy.
✔✔Freehold estate - ✔✔Dealing with ownership
✔✔Fee simple absolute - ✔✔Most common and most complete form of ownership,
owner possesses the full bundle of rights (possess, control, enjoy, and dispose of the
property). Inheritable
✔✔Fee simple determinable - ✔✔Subject to limitation or based on time... "So long as..."
will AUTOMATICALLY revert to estate or remainderman via reverter clause
✔✔Fee Simple on Condition Subsequent - ✔✔"On the condition that" If it states can be
granted if it is used for a church can only be taken to use for a church
✔✔Life estate - ✔✔Ownership rights measured by a person's lifetime, not inheritable
, ✔✔Life Estate Pur Autre Vie - ✔✔life estate measured by the lifetime of an individual
other than the grantee.
✔✔Non-possessory estate - ✔✔future right to occupy
✔✔Legal life estate - ✔✔dower and curtsey
- not in GA
✔✔DO NOT CALL LIST RULES - ✔✔Existing business relationships, where calls may
be placed for up to 18 months after the transaction
A consumer who has made an inquiry may be called up to 3 months
Calls may be placed to consumers who have granted written permission
Solicitation calls may only be placed between the hours of 8:00AM - 9:00 PM
Violations of the law may result in penalties of up to $16,000 per violation
✔✔Exclusive right to sell listing - ✔✔the most common listing, has the most protection
for broker because the commission is assured if the property sells no matter by whom.
Has a definite date of termination.
✔✔Income approach to value - ✔✔is principle of anticipation, which states that the
property's value is based not only on what it consists of today but on whatever
expectation there might be for future income and benefits.
✔✔Curable Depreciation - ✔✔if it makes economic sense to fix it, if the cure would cost
less than the value or the repair
✔✔Incurable depreciation - ✔✔if it does not make sense to fix/if the cost of cure would
be more than the value of the correction
✔✔3 types of depreciation - ✔✔Physical deterioration
Functional obsolescence
Economic obsolescence
✔✔Physical deterioration - ✔✔Wear and tear, exposure or lack of proper maintenance.
It is often curable.
✔✔Functional obsolescence - ✔✔Loss of value due to inadequate, over-adequate or
out of date improvements. It is obsolete because it does not meet market expectations.
It can be curable (in the case of outdate appliances) or incurable (in the case of poor
architectural design or floor plans)
✔✔Economic obsolescence - ✔✔Arises from forces outside the property and beyond
the owner's control, almost always incurable (location close to railroad, noise pollution,
high taxes, oversupply, etc)
AND ANSWERS GRADED A+
✔✔
✔✔Leasehold estate - ✔✔a tenant's (lesee's) rights in real property through a lease,
where the landlord (lessor) conveys the exclusive right of possession in exchange for
rent, while retaining the fee simple ownership and a reversionary leased fee estate.
✔✔Estate at will - ✔✔also called a tenancy at will, tenant can occupy the property for an
unspecified period of time. Most states require notice to terminate, but ends with the
death of either party or sale of the property
✔✔Estate for years - ✔✔Definite beginning and end, no notice to terminate
✔✔Estate at sufferance - ✔✔The holdover only differs from a trespasser in that they
were at one time legal occupants. "suffering"
✔✔When can a seller sue a buyer for damages? - ✔✔Failure to preform according to
the terms of a contract is called default or breach of contract
✔✔POLAND - ✔✔Agents Duties to the Principal
- (Personal Performance, Obedience, Loyalty, Accountability, Notice, Due Care)
✔✔Estate in land - ✔✔An Estate in Land refers to the quality, quantity, nature and
extent of ownership interest that a person holds in real property. In order for and interest
to be an estate, there must be a present or future right to OCCUPY the property.
✔✔Possessory estate - ✔✔current right to occupy.
✔✔Freehold estate - ✔✔Dealing with ownership
✔✔Fee simple absolute - ✔✔Most common and most complete form of ownership,
owner possesses the full bundle of rights (possess, control, enjoy, and dispose of the
property). Inheritable
✔✔Fee simple determinable - ✔✔Subject to limitation or based on time... "So long as..."
will AUTOMATICALLY revert to estate or remainderman via reverter clause
✔✔Fee Simple on Condition Subsequent - ✔✔"On the condition that" If it states can be
granted if it is used for a church can only be taken to use for a church
✔✔Life estate - ✔✔Ownership rights measured by a person's lifetime, not inheritable
, ✔✔Life Estate Pur Autre Vie - ✔✔life estate measured by the lifetime of an individual
other than the grantee.
✔✔Non-possessory estate - ✔✔future right to occupy
✔✔Legal life estate - ✔✔dower and curtsey
- not in GA
✔✔DO NOT CALL LIST RULES - ✔✔Existing business relationships, where calls may
be placed for up to 18 months after the transaction
A consumer who has made an inquiry may be called up to 3 months
Calls may be placed to consumers who have granted written permission
Solicitation calls may only be placed between the hours of 8:00AM - 9:00 PM
Violations of the law may result in penalties of up to $16,000 per violation
✔✔Exclusive right to sell listing - ✔✔the most common listing, has the most protection
for broker because the commission is assured if the property sells no matter by whom.
Has a definite date of termination.
✔✔Income approach to value - ✔✔is principle of anticipation, which states that the
property's value is based not only on what it consists of today but on whatever
expectation there might be for future income and benefits.
✔✔Curable Depreciation - ✔✔if it makes economic sense to fix it, if the cure would cost
less than the value or the repair
✔✔Incurable depreciation - ✔✔if it does not make sense to fix/if the cost of cure would
be more than the value of the correction
✔✔3 types of depreciation - ✔✔Physical deterioration
Functional obsolescence
Economic obsolescence
✔✔Physical deterioration - ✔✔Wear and tear, exposure or lack of proper maintenance.
It is often curable.
✔✔Functional obsolescence - ✔✔Loss of value due to inadequate, over-adequate or
out of date improvements. It is obsolete because it does not meet market expectations.
It can be curable (in the case of outdate appliances) or incurable (in the case of poor
architectural design or floor plans)
✔✔Economic obsolescence - ✔✔Arises from forces outside the property and beyond
the owner's control, almost always incurable (location close to railroad, noise pollution,
high taxes, oversupply, etc)
