Real Estate Law Examination

To record the estimated amount owed for capital gains on the transaction if the seller is an out-of-state entity.

A Delaware licensee's seller clients will complete tax form 5403 as part of the transaction. Why?

campground membership

A __ gives the purchaser the right to use all of the campground facilities, such as water or electric hookups, restrooms, and recreational facilities, like pools or playgrounds. Members may use the facilities at any time during the year.

cloud on the title

A __ is any encumbrance, such as a lien or a contested inheritance, that can halt the conveyance of the title.

group home

A __ is not an institution, but it provides an alternative to independent living for unrelated adults.

Timeshare estate

A _______ is a piece of real estate owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit based on the specific terms of a timeshare agreement, usually in one- to two-week intervals during the year.

void

A contract for an illegal purpose is __!

beginning and ending

A listing agreement includes the list price and has a __ date.

A public record of subdivision plats held at the county clerk's office

A plat book can be defined as ______.

Indicating or suggesting that homeowners shouldn't or aren't allowed to communicate with their lender

According to the Delaware Mortgage Loan Modification Services Act (MLMSA), loan modification service providers are prohibited from ____.

Impose any necessary sanctions or other penalties against the licensee.

After holding license law violation hearings, what action will the Delaware Real Estate Commission take?

Trethlon's adjusted basis in the property is $3,900,000 + $970,000 + $ 358,000 = $5,228,000. $5,700,000 - $5,228,000 = $472,000.

After operating the firm for 17 years, Trethlon Manufacturing just sold its entire operation for $5.7 million. The adjusted purchase price was $3.9 million. While the corporation ran the business, it spent $970,000 on capital improvements. Real estate commissions and other costs of the sale were $358,000. What is Trethlon's capital gain?

21 hours

After their first renewal, how many hours of CE courses do Delaware real estate licensees need to take to renew their license?

It's not valid in Delaware, which requires a special warranty deed.

Alex has purchased a Delaware property from Jensen. At closing, Alex receives a general warranty deed. What's NOT true about Alex's deed?

deed

Although Delaware statute makes a special warranty deed the form most commonly used to convey real estate, other __ types are also used and are valid.

estate at will

An __ is a leasehold estate with an unknown duration.

attachment lien

An __ is when the courts place on encumbrance on the property of a defendant in a lawsuit for monetary damages.

estate for years

An __ still has a fixed termination date.

Servient estate

An easement dictates that property owner A gives the right to property owner B to use a portion of the property. Which term describes property A?

Scarcity

Annette really wants to move to San Francisco, but she's unsure whether she'll be able to afford to live there. Housing is very expensive because there simply is no room to build any new housing units. Which economic characteristic does this reflect?

Misdemeanor

Anyone in violation may be called before the justices of the peace for a __ hearing, and disciplinary sanctions may be imposed. Financial penalties include fines between $1,000 and $10,000 per offense.

Disposition

Basic property rights include the rights of possession, control, exclusion, enjoyment, and ______.

He can sue Blake for benefit of the bargain for $25,000.

Blake backs out of his $400,000 sales contract to purchase Larry's property. Larry eventually sells the property for $375,000. Which of the following remedies is available to Larry under Delaware law?

health and safety

Building codes specify construction standards to ensure the __ of those using the buildings. Sanitary drainage and disposal are a common building code standard.

File a written complaint, with the licensee's name and details of the alleged license law violation, with the Delaware Division of Professional Regulation.

Buyer Darrin believes his real estate agent talked him into paying too much for the condo he bought. He's angry and wants to file a complaint against the agent. What should he do?

Assemblage

Catherine has decided to purchase additional parcels to add to the existing farm ground she's planning to sell. Catherine knows combining the parcels into one larger plat will increase the value of the land. What's this called?

Townhome

Charlene shares one wall with her neighbors to the side, but her home has three levels and she has no upstairs or downstairs neighbors nor a neighbor on the other side. What type of dwelling does Charlene own?

Points deduction

Clay and Myra just bought a home. Based on where they are in the property ownership life cycle, which tax-related item is likely to be of the most concern to them?

Campground membership

Clint was looking for alternatives to the traditional vacation condo rental for his family. He purchased the right to use a given set of facilities at any point throughout the year. What did Clint purchase?

disclosed

Condos are subject to CC&Rs and rules established by a homeowners' association. The existence of and subjugation to an HOA must be __ to the buyer in addition to any other disclosures required by law.

Use variance

Damien and Sandy bought a lot with a condemned house. They want to tear it down and build a duplex, so that they can live on one side and rent out the other. Unfortunately, the property is zoned single-family residential. If they can make a case for economic hardship, they may apply for and be granted a ________.

Yes, as long as he disclosed to his client in writing that he'd made a gift to the buyer.

Delaware buyer Leon is upset because he didn't realize the seller could take away all the potted plants that made the backyard such an inviting getaway. Licensee Ed, who represents the seller, wants to appease Leon, so he offers to pay for landscaping services to make the backyard beautiful again. Leon agrees, and the sale closes successfully. Did Ed act according to commission rules?

tenancy by the entirety

Delaware is one of 26 states that recognize __ for married couples. If Jeff and Linda don't specify a form of ownership, the default form for a married couple is tenancy by the entirety.

Waive tenants' rights under the law

Delaware landlord Kip wants to include a provision in his leases that prohibits tenants from making a claim against him for not providing things such as heat and water. His lawyer explains that this is illegal because lease provisions that ______ are prohibited.

Agree to electronic contracting

Delaware licensee Shawn typically uses electronic records and signatures in his transactions, but he makes sure he's following the state's Uniform Electronic Transactions Act by having the parties ______.

Yes, Delaware law makes an electronically-signed contract enforceable.

Derrick is a Delaware real estate licensee working with Mac on the purchase of his new home. A contract requires Mac's signature, which Derrick obtains electronically. Is the contract enforceable?

A lawful objective

Doris and Kathleen, who are neighbors, enter into an agreement to not permit their real estate agents to sell their homes to families with children. This agreement lacks ______, so it's void.

Real estate contracts must be in writing.

Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable?

Dwight has committed fraud, which has invalidated Jamie's consent.

Dwight tells his buyer Jamie that a nearby stream could possibly flood the basement, though it's never happened to him. After signing the contract, Jamie's home inspector shows proof that the basement flooded last year, when Dwight was still living in the home. What's true about this situation?

access to a road

Easement by necessity. One way to remember this type of easement is by thinking of the importance of getting --.

ditch manager officers and a secretary/treasurer

Ellios and other property owners in the area must petition the Superior Court to establish a tax ditch. If the organization is approved and created, they'll elect __ to oversee the tax ditch.

Tax ditch

Ellios lives in Sussex County. He and his neighbors need help with drainage and flooding concerns, so they petition the Superior Court to establish a ______.

Tenancy in Common

Eva, Stella, and Lynn own a vacation home two blocks from the beach. Sadly, Stella passed away this winter, and so when summer arrives Eva and Lynn will be sharing the home with Stella's nephew Drew, to whom Stella willed her share of the property. What type of ownership is this?

5403

Form __ is titled Real Estate Tax Return Declaration of Estimated Income Tax. All sellers will complete it, but only those who are non-resident entities are required to pay this tax on capital gains from the transaction.

An option fee

Gloria has an option to purchase the cottage she leases from Jacob and Lori. She can exercise the option within the next two years. To gain that right, Gloria paid Jacob and Lori $5,000. This is called ______.

Prior appropriation

Hal and Sara own a 212-acre farm. Their property is landlocked (almost or entirely surrounded by land), but they have permitted water rights to use the stream located six miles away for irrigation purposes. What kind of water rights do they hold?

Lot and block

Harmony is looking at the legal description on her purchase contract. It mentions that the plat of her property is recorded in Map Book 12, page 14, at the county courthouse. What type of legal description is this?

It protects the lender from loss due to defective titles.

How does title insurance affect the lender?

By multiplying the property's assessed value by the tax rate

How is ad valorem property tax calculated?

taxes

Ida and Barry are allowed to make this early withdrawal without penalty if they follow the rest of the rules outlined in the Taxpayer Relief Act of 1997, but they must still pay any __ that may be due.

The amount they can withdraw for this purpose is $10,000 or less. They can exclude the amount of the IRA withdrawal when filing their income taxes. They must use the money within 120 days of withdrawal for the purpose of acquiring, improving, or building their home, or they'll be charged a penalty. They won't pay a penalty on this withdrawal, even though they're both 58 years old.

Ida and Barry are buying a home. They'll withdraw money from their traditional IRA to help with the down payment and closing costs. What's NOT true about this withdrawal?

No later than 60 days before the biennial license renewal date

If a licensee needs a waiver for completion of Delaware CE requirements, when must the request be submitted?

Cloud on title

If a property has a legal claim against it, what is the property said to have?

The broker may be fined up to $1,000 per violation.

If a supervising broker doesn't maintain associated licensees' CE certificates properly, what may happen?

permanence of investment

Improvements include structures, such as homes or commercial buildings, while the concept of __ is used when considering more permanent changes, such as roads, structures, and utilities.

Tenants by the entirety

In Delaware, married couple Jeff and Linda will take title to their new home as ______ unless they specify otherwise.

At least 10 feet from the edge of a public road

In Delaware, which of these is a legal spot to place a sign advertising one of your listings?

title theory

In a __ state, the lender holds the legal title to the property (usually through a third-party trustee) until the loan is paid off. This makes it easier for the lender to foreclose.

It's generally much easier for a lender to foreclose on a property.

In a title theory state, which of the following is a true statement?

Sub-surface rights

In many areas of the country, Marcellus shale has become a hot commodity. This type of rock produces gas, which can be mined, stored, and sold. Abe learned that his family farmstead sat over a rich deposit of Marcellus shale. What type of rights does Abe have relative to this shale?

Ownership includes both the structure and the land.

In what way is a townhome similar to a single-family detached home?

Building code

Jackson Elementary School is undergoing some major renovations during the summer while school is out of session. The renovation crew has a detailed list of requirements for the disposal and drainage of wastewater and sewage. These requirements are likely part of the ________ with which the renovators must comply.

Plat map

Janson Industries worked with architects and engineers to draw up plans for a planned community that will include residential, shopping, dining, and entertainment uses within the community itself. As a property that falls under mixed-use zoning, what does the company have to provide to the planning commission?

The grantor's signature must be acknowledged.

Jerry's client Carla has successfully closed on the purchase of a home. The deed shows she's taken sole ownership of the property. Which of these actions is necessary before the escrow agent can have the deed recorded?

Buyer

Jessica enters into a contract to acquire real property in return for some form of consideration. On the contract, Jessica is regarded as the ______.

inheritable

Joint tenants are allowed to sell their interests, so Tom became a property owner when Ivan sold his interest. However, joint tenancy is not __ but instead includes the right of survivorship. Trace's and Chad's interests passed to Lucas and Tom.

$387,000

Juan purchased a property for $420,000 and financed $336,000 of it. The assessed value of the property is $387,000. The property appraisal came in at $432,000. Which of these amounts is used in calculating the property tax?

Shares in the cooperative corporation

Kendrick bought into a cooperative housing project. When Kendrick purchased his unit, he received a proprietary lease. What else did he receive?

60%

Kent County taxes at ______% of the assessed value.

$60,000

Kent County taxes at a 60% proportion of the assessed value. Example $100,000 x 60% = __, which would be the tax assessed value.

60

Licensees can submit a written request with proof of an illness, injury, family or financial hardship, or other circumstance that barred their completion of the CE requirements no later than __ days before the biennial license renewal date.

Lucas and Tom

Lucas, Ivan, Chad, and Trace own a property as joint tenants. After a few years, Ivan sells his interest to Tom (with permission from Lucas, Chad, and Trace). Chad dies intestate but is survived by a wife, Amy. Trace also then passes away but wills his property to Monique. Who owns the property after Trace's death?

Give the mobile homeowners the opportunity to purchase the park themselves.

Mark, a Delaware mobile home park owner, has grown sick of managing the property and wants to sell. What's he required to do before entering into a purchase agreement for the community with investor Carol?

Novation

Mary contracted to buy her mother's house when her mother moves to a senior living community, but now Mary has to move because of work and no longer wants to buy the house. With their mother's agreement, Mary's sister, Tina, steps in, releasing Mary from her obligation. They write up a new contract, with the only change being that Tina is now the party to the contract rather than Mary. This is an example of ______.

Performance

Mary has a contract to buy her mother's house when her mother is finally ready to move to a senior living community. This way, the house stays in the family. After her mother finds a suitable senior apartment and moves, Mary writes a check for the agreed-upon amount, and her mother transfers the deed to Mary. What is happening in this scenario?

Jun's influence is invalidating Mika's consent. Jun's threat of prosecution is enough to invalidate Mika's consent.

Mika has borrowed $5,000 from her cousin Jun and not repaid it. Now, Mika is selling her house to Jun's nephew, Cheong. As Mika writes up the contract, Jun tells her that if she doesn't sell the house at a steeply discounted price, Jun will take the matter of the $5,000 to court. What is true about this situation?

Trying to help his buyers determine affordability of a home purchase

Oliver is a licensee who helps his buyers estimate their closing costs. Oliver is most likely ______.

Help them estimate closing costs

One way licensees can help buyers determine the affordability of a home purchase is to ______.

flood insurance or regional taxes and fees

Online calculators may not take localized factors such as required __ into consideration.

Purchase it first, by forming a cooperative or HOA.

Patrick Sloan is a Delaware developer hoping to buy the Sunny Acres Mobile Home Park and turn it into a lucrative condominium community. However, before he can buy the property from the landlord, the Manufactured Home Owners and Community Owners Act's right of first offer clause gives the current homeowners the right to do what?

Estate at will

Penny landed a great job in a new city, but now she needs to find a place to live. Rather than commit to a long-term lease, she wants a short-term rental while she explores the various neighborhoods. She's hoping to sign a lease which can be terminated at any time, also known as a(n) ______.

24

Per the Delaware Mortgage Loan Modification Services Act (MLMSA), contracts for mortgage loan modification services must be in writing, free of alterations or modifications, and given to homeowners for their review at least __ hours before they sign.

development costs

Physical features of the land, such as contours (outlines), soil composition, and drainage, all factor in to __.

Three years

Piper contracted with Alex to sell her Dover home to him for $350,000. If Alex breaches the sales contract, how long does Piper have to sue Alex for breach of contract?

Enforceable

Real estate sales contracts must be valid, express, bilateral, ______, and executed or executory.

Enforce

Regulation B is the set of regulations used to ______ the Equal Credit Opportunity Act.

Void

Rex needs to handle some money he acquired during an "unsavory" business deal. He agrees to sign his boat over to his colleague, Ben, if Ben can launder the money and return it to Rex as part of a legal business dealing. What kind of contract do Rex and Ben have?

She hasn't been a homeowner during the last two years.

Rosie wants to make an offer on a home, but she's having trouble coming up with a down payment. She can withdraw $10,000 from her IRA without penalty to use for this purpose, but only under what circumstances?

The CFPB

Rules and regulations that protect consumers of financial services are now the responsibility of ______, which was created by the Dodd-Frank Act.

profit

Suppose your neighbor had gold in his soil, and you removed some. You would be infringing on your neighbor's right of __.

Loan flipping - is a tactic that predatory lenders use.

Talking the consumer into refinancing over and over so a lender can charge fees is ______.

Inflated appraisal

The Wilsons are selling their home and have asked that an appraiser they know perform the appraisal on the property. Sidney, the buyer's agent, is surprised when the appraised value comes in considerably higher than the competitive market analysis she prepared. Sidney is concerned that this might be an example of which type of mortgage fraud scheme?

Taxpayer Relief Act of 1997

The __ established rules that allow a homebuyer to withdraw money from an IRA without penalty if the funds will be used to acquire, build, or improve a personal residence. The option is available to "first-time homebuyers" which is defined as anyone who hasn't been a homeowner for the previous two years.

doctrine of prior appropriation

The __ grants water rights based on need, not adjacency. Hal and Sara likely live in the western part of the U.S. where many states subscribe to this doctrine.

statute of frauds

The __ requires that real estate contracts be in writing. Drew's offer was oral and thus didn't create an enforceable contract.

Consumer Financial Protection Bureau

The ______ uses education, enforcement, and research to promote fairness and transparency for consumer financial services.

the habendum clause and an act of conveyance

The grantor is the seller; the grantee is the buyer. The grantor must sign the deed, be of legal capacity, and be positively identified. The deed must include __.

life estate

The holder of a __ has the rights of ownership, possession, and control. When a life estate terminates, ownership reverts to the grantor of the life estate.

closing

The lender is usually represented by the lender's own attorney at the __.

assemblage

The process of combining several parcels into one larger plat to increase the value of the land is known as __.

Clear and Marketable Title

The seller is responsible for paying for any recording documents to clear any defects from the title. That way, the seller can convey __ to the buyer.

Regulatory taking

The state has seized a strip of Marge's land. It's relatively small but goes right through her sheep pastures. She just found out that the state will use it for a six-lane highway. She's pretty sure that the value of her land is going to plummet, and she can't figure out how to use it as pastureland anymore. What kind of involuntary alienation is she dealing with?

a use variance

This is __. The existing zoning only allows single-family homes, so a duplex represents a use other than the originally intended use.

inheritability

This is a form of shared ownership, but only tenancy in common provides for __—the other forms share the rights of survivorship (the existing tenants assume the deceased's share of the property).

costs

Though buyers will eventually receive closing cost information from the lender and the closing agent, an early estimation of these __ helps buyers determine how much house they can afford.

Investors

To whom would a 1031 tax exchange usually appeal?

Spot zoning

Tres owns a warehouse in an area that is zoned light industrial. With an increased demand for housing in the area, Tres wants to create loft-style condos and have his property designated as residential, even though the surrounding buildings will remain light industrial. What type of zoning is this?

Disposition

What basic property right is NOT available to the holder of a life estate?

Planned unit development

What describes both the type of the development and the regulatory process that allows the developer to meet the community's goals for land use and density without being restricted by existing zoning requirements?

Compass headings and directions

What does the metes and bounds system use to develop a property's legal description?

A word or phrase that, when used in advertising, requires the disclosure of all of the terms of a loan

What is a triggering term?

A percentage of market value; also the amount of property value to which the tax rate is applied

What is assessed value?

Special assessment tax

What kind of tax could be levied on property owners for a public project that benefited the property owners only in that district?

A copy of the Summary of the Delaware Residential Landlord-Tenant Code

What must Delaware landlords provide to all new tenants when they sign a lease?

The listing agreement

What type of agreement accounts for commission to be paid and includes the seller's permission for marketing the property?

Timeshare

What type of estate involves a piece of real estate owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit in one- to two-week intervals during the year?

Open

What type of listing agreement is unilateral?

Promotion for the sale of large tracts of land to be developed (at least 50 lots)

What's a promotional land sale?

Written for a lawful objective

What's the best definition of legal purpose?

A facility where unrelated adults live

What's the definition of a group home?

The trustee holds the deed, and the lender holds the note.

When a deed of trust is used as a security instrument, who holds the deed and the note?

value

When something is evaluated according to ______, this is called finding the value on an ad valorem basis.

$1,000-$10,000

When the Delaware Real Estate Commission finds that individuals have performed unlicensed real estate activities for the second time, what's the estimated fine?

Closing documents for the appropriate side of the transaction

Which document(s) will the closing agent deliver to the buyer and seller after the closing?

Improvements

Which economic characteristic of land contains the concept that a land's value can be affected by the changes made to it, such as construction of a home or shopping center?

Acquisition Depreciation Ownership Reversion

Which investment cycle is an investor in when there is depreciated basis and tax-deferral through 1031 exchanges?

Adverse possession Descent Natural processes Regulatory taking

Which method of involuntary alienation involves accession, accretion, reliction, or avulsion?

A dock that a neighbor shares with another for launching his boat A fence that divides two neighbors' properties A recreation area of a condo that anyone can rent out for parties Land that a railroad company runs its track through

Which of the following describes a right-of-way easement?

In some states, it's a form of property ownership for married couples with equal ownership and possession of any property acquired during the marriage.

Which of the following describes community property rights?

Flood insurance premiums Homeowners insurance premiums Loan origination fees Prorated expenses

Which of the following factors might an online closing cost calculator not take into account?

Inheritance License Profit Reserve

Which of the following is a legal term that can mean the right to take products out of the soil?

A short sale can negatively impact the seller's credit, and the lender may seek a deficiency judgment for the amount not repaid. Completing a short sale means the seller will never again be legally allowed to own property. Not all states have ramifications for short sales, so it depends on which state the seller lives in. There are no ramifications. Short sales are just a quicker way to get a property sold.

Which of the following is a potential ramification to the seller if a short sale is completed?

Government agencies may exercise police power only when it does not restrict the freedom of its citizens. Local governments and their planning boards control budgeting, site-plan review, and building codes. Planning, zoning, and subdivision development are primarily controlled at the state level. Police power is citizens' rights to police themselves.

Which of the following is a true statement about police power and public land use controls?

A parcel of land located near an industrial center will work equally for commercial, residential, or agricultural development. Land far from current metropolitan areas is best for residential development. Land for commercial development needs to be close to a customer base. Location is the least important factor considered in a feasibility study for investors.

Which of the following statements about the importance of location in land investment is true?

Physical features of the land factor into development costs.

Which of the following statements about topography (land surfaces) in land investments is true?

All property purchased before the marriage and owned individually must be sold. The profits are divided equally between the partners. All property purchased before the marriage automatically comes under the community property rights requirement. Any property purchased before the marriage must have the spouse as the beneficiary should the owning partner die. Both partners may own other properties purchased before the marriage separately (in severalty), but any properties purchased during their marriage are owned equally.

Which of the following statements is true regarding community property rights and property ownership?

Assemblage Excess land Plottage Surplus land

Which of the following terms refers to the process of combining separate adjacent parcels into one piece of land?

Beth's clients ask her what will happen if they don't closely follow the terms of the contract they signed, and she advises them to consult an attorney. Carl tells his seller client how he can legally extricate himself from the purchase contract he's now sorry he signed. Dan advises his clients to engage an attorney to review the contract and gives them three recommendations when they say they don't know any attorneys. Jean prepares a sales contract with her clients by filling in the blanks on the Agreement of Sale for Delaware Residential Property form according to her clients' stated wishes.

Which of these Delaware licensees is guilty of the unauthorized practice of law?

Complete CE requirements prior to the renewal date Pay the renewal fee Submit certification of CE Submit the renewal application

Which of these is NOT a part of the license renewal process for real estate licensees in Delaware?

Be competent to transact the business for which the individual is licensed, and do so in a manner that safeguards the public's interests. Be demonstrably professional, honest, and able to assist others in a patient and knowledgeable manner. Demonstrate experience with real estate transactions in Delaware over the previous three years. Prove experience with supervising others and holding responsibility for handling funds for others.

Which of these is a requirement of ALL levels of real estate licensure in Delaware?

They must deposit buyer earnest money in an escrow account.

Which of these is a requirement of developers who sell property governed by DUCIOA?

The deed includes an act of conveyance and may include a habendum clause. The grantee must be legally competent. The grantee must be of legal age. The grantee must sign the deed and provide consideration.

Which of these statements accurately represents one of the required elements in a deed?

Conduct an audit of the escrow accounts at ABC Brokerage during normal business hours.

Which of these things is the Delaware Real Estate Commission empowered to do to ensure that licensees are following license laws appropriately?

Community property rights

Which one of the following says that real estate acquired by either spouse during a marriage (in most cases) is considered community property?

Credits and debits

Which two items will appear on a closing disclosure?

Large, flat acreage properties in rural communities

Which type of property lends itself more to farming and agriculture?

Lender's attorney

Who usually represents the lender at a closing?

The seller

Who's responsible for paying for recording documents to clear all defects from the title?

To gather closing-related information agreed to in the contract

Why does the closing agent review the purchase contract?

Because the unit is governed by a homeowners' association

Why would additional documentation and disclosures be required for the purchase of a condo?

Attachment

Will was sued for damages related to a car accident in which he was involved last year. As part of the proceedings, the court placed a lien against his primary residence. What type of lien is this?

gross

With __ leases, the landlord typically pays all expenses, such as taxes, maintenance, and insurance.

Proprietary lease

With this type of commercial lease, the lease holder does not own the apartment but instead holds the lease to the residential unit.

Easement by necessity

Without this easement—usually involving access to a road—the owner requiring the right of passage would be landlocked.

The right of first offer

__ allows the homeowners to purchase the property first by forming a cooperative or HOA. The cooperative or HOA has 30 days to accept, reject, or counter the offer.

Sales

__ contracts must be enforceable, which means they will hold up in court.

Right-of-way

__ easements allow pass-through and can be as short as a driveway or as long as a railroad track.

Legal purpose

__ means that contracts must be written for a lawful objective. A contract for an illegal purpose is void.

Novation

__ of a contract is the substitution of one party for another, with the full and complete release of the original party from any obligations under the terms of the contract.

Community

__ property is a form of ownership used in some states for married couples to own property that's purchased during the marriage, regardless of which spouse's name is on the title.

Townhomes

__ typically have shared walls and are two or more stories.

Ad valorem

___ taxes are based on property value. To calculate ad valorem property tax, multiply the property's tax-assessed value by the jurisdiction's tax rate.

The title insurance representative

______ delivers the evidence of a clear title at the closing.

Recasting

______ is when the outstanding loan balance is reconfigured. It is a form of loan modification.

Predatory

______ lending was a contributing factor to the housing collapse in the mid-2000s.

periodic estate

a __ is automatically renewed at the end of the lease.