CO 48-Hour Real Estate Law and Practice Course

Gross Income

"Income received before expenses are deducted"

In certain cases, antitrust violators may be subject to court-ordered supervision. How long can this supervision last?

1o years

John wants to do a 1031 tax exchange with a property he just sold. How many calendar days does he have to identify a new property for the exchange?

45

Client Bette asked licensee Frank about a home equity line of credit versus home equity loan. Which of the following offers an brief overview of what a home equity line of credit is?

A borrower borrows against the equity in the house and pays back the amount withdrawn plus interest.

Which of the following is true about a home equity line of credit?

A borrower can use the funds as needed, repay them, and borrow them again.

Which of the following is the best example of a tie-in arrangement?

A business requires its clients to also purchase services from another business.

What is a carryback loan?

A carryback loan is the term used when a seller provides financing to supplement the first mortgage.

If Freddie Mac didn't exist, which of the following would be a likely effect?

A decrease in the amount of credit available to loan originators

The person named as the recipient of real property in a will is called the

A devise, and the person who is named as the recipient of the property is called the devisee.

Planned unit development

A large land area that's divided into separately developed areas, often with areas of green space or public development in between, is a planned unit development, or PUD.

Mortgage Lien

A mortgage is a specific lien because it affects one particular property. It's also a voluntary lien because buyers who purchase real property via financing agree to the mortgage lien, which remains in place until the loan is paid off.

When offer and acceptance has occurred, both parties enter into ______.

A mutual agreement

Your seller clients have received an offer, and the buyer has included a pre-approval letter. Your clients are a little confused and think a pre-qualification letter is necessary. What's true regarding pre-approval and pre-qualification?

A pre-approval letter comes with lender verification of buyer-provided data and provides more assurance to the seller.

An example of blockbusting would be:

A real estate agent approaches a homeowner as soon as a demographic shift starts to occur in her neighborhood and convinces her that she needs to sell now, or she'll never be able to sell.

Buyer agency

A real estate licensee agrees and contracts to represent the buyer in her purchase of a home/property.

What is a township

A square that is six miles by six miles (36 square miles) and makes up the principal unit of the rectangular government survey system.

Grace found herself in a breach of contract situation where the other party met some of the terms but not others. Grace thought it would cost a lot of time and money to sue, so she decided to accept the work that had been done and call it good. This is an example of

Accepting partial performance (Grace accepted partial performance as a means of remedying the breach of contract)

Which term is defined as land that is built up by water depositing sand, silt, or gravel?

Accretion

Which term is defined as land that is built up by water depositing sand, silt, or gravel?

Accretion is the gradual build-up of land by water depositing sand, silt, or gravel.

An example of illegal market allocation:

An agreement between competing firms to segment the market would be illegal market allocation.

Which of the following occurs if a tenant dies during the term of an estate at will tenancy lease?

An estate at will is not inheritable, which means that upon the death of either party to the lease, the leasehold automatically terminates.

excuted contract

An executed contract is one in which the parties have met all terms of the contract.

What is a base line

An imaginary line that runs east and west and crosses the principal meridian at a specified point; it is used by surveyors as a reference point to locate and describe land under the rectangular survey system.

What is a principal meridian

An imaginary line that runs north and south and crosses a base line at a specific point, and used by surveyors of reference to locate and describe land using the rectangular survey system.

What's a negative impact on your property's vacancy rates?

An increased number of renters due to any circumstance is likely to reduce your vacancy rate, but direct competition with nice units may negatively impact your occupancy rate.

Investment Value:

An investment value can tell a consumer about the expected rate of return for a property.

Which of the following statements is true about appraisals?

Appraisals may only be performed by certified appraisers (with certain exceptions in some states).

When considering loan risk, which two items will lenders consider in equal measure?

Borrower and property

After switching careers, Alice just graduated from culinary school and is looking to purchase a house. Until she gets her feet wet with her new job, she knows the cost of living with her mortgage is going to be tight. Which mortgage might help her manage her expenses each month?

Budget- Budget mortgages help borrowers "budget" their expenses since the interest, principal, taxes, and insurance are all included in the monthly payment.

If a buyer's agent gives the buyer misinformation about the property, who is responsible?

Buyer's agent

Which of the following statements about the lead-based paint inspection is true?

Buyers can waive their right to an inspection.

The return of principal at the end of ownership is known as return of investment or ______.

Capital recapture

Real estate acquired by either spouse during a marriage (in most cases) is considered:

Community property rights---(require that most property acquired by a married couple-or one spouse- during their marriage be considered community property) (Property obtained via inheritance, gift, or personal injury are exceptions to this rule.)

You're preparing a CMA for a new listing. Which of the following will you use to estimate market value?

Comparable sales--A licensee uses limited data about comparable sales to complete a CMA, whereas an appraiser uses a variety of data to create an appraisal.

The two fiduciary duties that survive the termination of agency are ______.

Confidentiality and accounting

Commercial banks offer interim financing in the form of ______ loans.

Construction

Construction loans

Construction loans are a form of interim financing, which means the loan will be replaced after construction is complete.

Your tenant, Tom, has called to complain about a broken water heater. You hire someone to replace it. What type of maintenance are you performing?

Corrective-(Property managers may be called to perform corrective maintenance, like repairing leaking pipes, fixing a cracked window, or recaulking a bathtub.)

Rhonda is an unrepresented buyer who's purchasing Tony's townhome. Gary represents Tony in the sale of his property. What's Rhonda's relationship to Gary?

Customer

A ______ is a method of conveying real property from one party to another.

Deed

Public hearings that allow citizens to voice their opinions about zoning ordinances are examples of _________________.

Due process allows for citizens to voice their opinions about zoning ordinances before they're enacted.

Termination of tenancy in common by partition allows

Each tenant to have a specific, divided portion of the property exclusively. If the property can't be divided, the court may rule that the property be sold and the proceeds divided by the tenants.

In Colorado, what contract is used for the purpose of entering into an agency relationship to provide leasing services for a landlord?

Exclusive Right-to-Lease Listing Contract

Janice wanted to sell her townhome, and her neighbor was considering buying it. She wanted to put it on the market while she waited to find out if her neighbor was going to buy. In order to receive the best possible representation but avoid paying a commission if her neighbor buys the property, which type of listing agreement would best suit Janice's needs?

Exclusive agency

Which of the following is one a way a loan may be modified when a borrower is having difficulty making payments?

Extend the amortization schedule.

Which of the following entities buys primarily conventional loans from large commercial banks?

Fannie Mae

What entity enforces the Telephone Consumer Protection Act?

Federal Communications Commission (The FCC enforces the TCPA)

Freddie Mac mission

Freddie Mac's mission is to provide liquidity, stability, and affordability in the U.S. housing market.

Single agency firms prohibit their licensees from doing what?

From representing the buyer and seller in the same transaction

You need to perform a sales comparison for your clients. Comparable A's adjusted sales price is $277,000. Comparable B's adjusted sales price is $255,000. How might you use this data to determine a list price range for the clients' home?

Give more weight to the list price on the comparable that's most similar to the property

Which type of loan is insured by the Federal Housing Administration?

Government- Loans insured by the FHA are considered to be government loans.

Which of the following terms is most closely associated with legal nonconforming use?

Grandfathering- Legal nonconforming use is when a legal use is no longer permitted because of a zoning change. The owner may continue the use but future owners may not be grandfathered in.

HOA-Related Lien

Homeowners who don't pay may find that their HOA has placed a lien on their home, which could bring on foreclosure proceedings. The Colorado Common Interest Ownership Act (CCIOA) created a statutory lien called a super priority lien, or super lien, giving HOA liens priority over first mortgages or deeds of trust.

Your neighbor hires a middle school student to mow his lawn every two weeks. He draws up a written contract in which he clearly outlines the student's mowing responsibilities and the payment the student will receive in return. Which of the following is true in this situation?

If the neighbor and the student are content to uphold their agreement, the fact that it's not legally binding doesn't matter.

In Colorado, what contract is used for the purpose of entering into an agency relationship to provide leasing services for a landlord?

In Colorado, the Exclusive Right-to-Lease Listing Contract is used for the purpose of entering into an agency relationship with a landlord.

Gross lease

In a gross lease, all expenses related to the property, such as taxes, insurance, and maintenance, are part of the lease payment.

Land doesn't cease to exist, and it's not depreciated or covered by property insurance because of its ______.

Indestructibility

To whom would a 1031 tax exchange usually appeal?

Investors

Which one of the following statements is true about groundwater?

It's a source of drinking water.

What term is used in the Dates and Deadlines section to indicate items that require resolution?

Items the buyer disputes are called objections. For example, the Inspection Objection Deadline is the deadline for the buyer to complete and submit the Inspection Objection form outlining requested repairs to the property.

What is the name for a loan that creates a lien against property that already has been pledged as collateral?

Junior Loan (When a second loan places a lien against property already pledged as collateral, it creates a junior lien and so is called a junior loan)

Kevin listed his house with you but isn't offering a cooperating agent's commission. Ji-eun represents the buyer, Marta, and Marta's parents, Jean and Tom, are paying Ji-eun's commission. On which of these factors is your agency relationship based?

Kevin signed a listing agreement with you. (Neither compensation nor ownership create an agency relationship)

In terms of investment, liquidity means an investment ___.

Liquidity is related to how easy it is to get your money out of an investment by selling it or converting it into cash.

The right to access ponds, lakes, and other stationary bodies of water is

Littoral (If it helps, remember that littoral and lake (a stationary body of water) both begin with an 'l.' Riparian and river (a moving body of water) both begin with an 'r.')

In addition to the closing transaction documents, what will most buyers sign at closing?

Loan documents

Marcy wants to collect economic data about businesses and local growth and decline. Where can she go to find this data?

Local chamber of commerce

When the lender gathers all kinds of information about the borrower's assets, debts, income, employment history, and pulls their credit report, the buyer is

Making an application for a loan

If an item is permanently attached to a property, a court would most likely consider it a fixture if it passes which of the following tests?

Method of annexation

What is the borrower charged for all FHA loans?

Mortgage insurance premium

What must every deed contain?

Must be in written, Grantor's name, Grantee's name, legal property description, Consideration (the compensation given for the property's transfer), "words of conveyance", and Habendum clause (begins with "to have and to hold")

Private loan companies may be found in many places. There are ______, regional, and local lenders, and even individual entrepreneurs who loan money.

National

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

Natural processes

A listing agreement is terminated by:

No matter how well a licensee performs his tasks, a listing agreement is terminated by completion /performance only if it successfully closes.

Randolph, a seller, has an open listing agreement with you. Randolph locates a buyer himself. Who is owed a commission?

No one

What is the key difference between assignment and novation of a contract?

Novation releases the original party from all obligations, while assignment does not.

Which of the following is prohibited under federal fair housing laws?

Offering different terms, conditions, or privileges based on protected class status

How often can the capital gains exclusion be claimed?

Once every two years

Under which types of agency agreement may a buyer and agent operate?

Open, exclusive right to represent, and exclusive agency

What kind of budget serves two primary purposes: to help property managers maximize profitability and to avoid unforeseen major expenses?

Operating- the operating budget helps managers maximize profitability and avoid unforeseen major expenses.

What section of the property management agreement states that the owner actually owns the property, and it's not facing foreclosure?

Owner's covenants

Which type of listing can help a real estate professional determine how quickly a home in a given price range received an accepted offer?

Pending

Tyra owns a nail salon that's located in a strip mall. Her rent every month includes $1,800 base rent and 10% of her gross sales. What kind of lease does Tyra have?

Percentage

Rohit bought 31 acres of undeveloped and mostly forested land. He is planning a weekend with friends where they'll camp on the property while scouting good locations to place a cabin. Which right in the bundle of rights allows Rohit to do the camping weekend on undeveloped land?

Possession- A property owner's right of possession gives that person the right to occupy the property, whether developed or undeveloped

What does PITI stand for?

Principal, Interest, Taxes, Insurance

The smallest property on the block is priced lower than any others, but the higher-priced properties that surround it help to drive the property's market value up. What economic principle is at work here?

Progression-- is the bump in value that a lower-value property gets by being near a higher-value property.

The Uniform Standards of Professional Appraisal Practice

Provides standards for appraisers to follow.

Property Tax Lien

Real property is subject to government taxes to pay for government services and programs. Ad valorem property taxes, in which the tax amount is based on a property's transaction value, are assessed on January 1 for the previous year.

What discriminatory lending practice by lenders resulted in the destruction of whole neighborhoods, with perfectly good housing left abandoned?

Redlining

A loan that's offered based on a homeowner's equity in which funds are drawn over time and the bank gains corresponding property ownership is called a ______.

Reverse annuity mortgage

Custodial maintenance

Routine or custodial property maintenance keeps the property in good shape. This could include trash and recycling removal, routine landscaping, and cleaning windows and doorways.

Which approach to finding property value is most commonly used when appraising singlefamily homes for lending purposes?

Sales comparison approach

Rachel loves convenience. As you can imagine, she was thrilled when she was able to finance her mortgage through the same institution where she deposits her payroll checks. Which of these most likely financed Rachel's mortgage?

Savings and loan

A landlord refuses to show available units to certain applicants based on their race. What makes this type of housing discrimination a problem that extends beyond the damage to the individual applicants?

Society must spend time and resources to try to fix the damage

What does the term "taking" describe

Taking is when the government regulates a property to the detriment of the owner and must include just compensation for the property owner

Which agency enforces Title II under the Americans with Disabilities Act of 1990, when it relates to state and local public housing, housing assistance, and housing referrals?

The Department of Housing and Urban Development (HUD) enforces Title II when it relates to state and local public housing, housing assistance, and housing referrals.

What is FHA mission?

The FHA has a mission which includes stabilization of the mortgage market.

Which banking-related entity shares similarities with the purpose and function of the NCUA?

The Federal Deposit Insurance Corporation (FDIC), with the full faith and credit of the U.S. as backing.

With a land contract, who retains the title to the property?

The Seller

The property management agreement cements what relationship between the property manager and the owner?

The agency relationship

Fred is seriously considering signing a buyer's representation agreement with an agent. What benefit will the agent gain if Fred does become a client?

The agent will avoid a conflict of loyalties between the buyer and seller.

Who's generally responsible for ordering and reviewing a survey of the property?

The buyer

A Colorado buyer reviews the seller's counteroffer and agrees provided the closing date is changed. What is the BEST course of action to respond?

The buyer's agent should complete a new CBS that reflects the seller's counterproposal but changes the closing date to reflect buyer's proposed date.

Who or what entity is responsible for determining the validity of a will as part of the probate process?

The court -- they hold a hearing to determine the validity of the will and/or the order of descent, if a valid will doesn't exist.

What is an executor role?

The executor carries out the provisions of the will and sees to property distribution after the will has been through probate.

Appraiser Jerry is looking past how a property is being used to determine a more optimal function. What is he determining?

The highest and best use--- meaning they look past the current use to determine if another use provides a higher value.

What would happen if your client's rate lock expires three days prior to closing?

The interest rate will revert to the current rates.

What does an REO on a lender's assets mean?

The lender owns real estate after a foreclosure sale.

In addition to its potential health hazards, what is a common consequence of a brownfield's presence in a community?

The presence of a brownfield, and the belief that it is contaminated and a health and environmental hazard, has been known to negatively impact property values. (decrease property's value)

Two competing firms are found guilty of illegal market allocation. Which of the following scenarios must be true?

The two firms have agreed not to compete in one another's markets.

Jan is a real estate licensee gathering information to help her seller determine a good listing price. How could expired listings help her in this process?

They illustrate the price at which the property won't sell.

Which of the following is true of all Colorado Real Estate Commission-provided brokerage disclosure forms?

They provide definitions of the possible brokerage relationships.

Which of the following is a true statement regarding savings and loans?

They were originally formed to encourage residential lending

Which of these is an example of antitrust violations common to real estate?

Tie-in arrangements, market allocation agreements, and group boycotting

Title Insurance

Title insurance protects the buyer from title defects covered by the policy. If a defect is found, and it's covered, the insurance policy will reimburse the buyer for losses, up to the amount specified in the policy.

What's the primary purpose of a CMA?

To determine an appropriate listing price range

Who needs to sign the deed?

To execute a deed, the grantor conveying the interest to the property must sign. Only the grantor executes the deed. The grantee is not required to sign unless the grantee is assuming a mortgage.

What's the purpose of an assessor's parcel number?

To identify a property for tax purposes. They appear on many legal documents.

Which statement describes the purpose of the Interstate Land Sales Full Disclosure Act?

To protect consumers from fraudulent purchases.

How long must a taxpayer have lived in a home in order to claim a capital gain exclusion?

Two of the preceding five years

As a court-appointed guardian, Marion serves as which type of agent?

Universal

Special Assessment Lien

When a local government makes improvements to property, such as putting in sidewalks or installing streetlights, these are considered public improvements, meaning that the public benefits from them

Vendee's and Vendor's Liens

When a seller defaults in performing a contract, the buyer has a vendee's lien against the property for sale to receive an earnest money reimbursement. A vendor's lien allows a seller to repossess a sold property until the buyer pays the full, agreed-upon purchase price.

When there's no buyer agency agreement in place, which of the following tasks can a licensee perform for the buyer?

When there's no agency agreement in place with a buyer, the licensee represents the seller and can only submit the buyer's offer on a listing.

Exclusive agency vs. exclusive right to sell

With exclusive agency, the seller retains the right to find a buyer and avoid paying the commission, but the seller's listing will likely receive more attention from the agent than it would with an open listing.

Area variance

allows an owner to use the land in a way that is not normally allowed by the physical or dimensional requirements of the current zoning

Which of the following duties are still owed after a listing agreement expires?

confidentiality, even after the brokerage agreement is terminated.

Exclusion

gives the owner the right to refuse others the use of his own property.

Mechanic's Lien

his type of lien protects anyone who furnishes professional and skilled services, labor, or materials for real property improvement, such as new construction and renovation. They're also placed higher in priority to subsequent liens or encumbrances, either filed or unrecorded.

Accretion

is the gradual build-up of land by water depositing sand, silt, or gravel.

A purchase money mortgage

is the term for seller financing that's typically used to bridge the gap between the home's list price and the institutional loan, though it can also be used to finance the entire purchase price

Equity skimming

occurs when an investor receives title to a property, usually rents out the home but doesn't make the mortgage payments. When types of equity skimming fraud like this occurs, houses usually end up in foreclosure.

An express contract is

one in which the terms of the agreement and consideration to be exchanged are defined in words, whether orally or in writing.

Method of annexation

refers to whether an item is attached to the property and how permanent the attachment is. Method of annexation is factored heavily when determining if an item is a fixture.

Adverse possession means

someone lives on, or possesses, the property without the owner's permission.

Land is defined as

the earth's surface, extending downward to the center of the earth and upward to infinity, including permanently attached natural objects.

Seller agency

the listing broker and the seller enter a written contact under which home price, duration of agreement, commission, rights and obligations, duties, etc., are specified.

An assignment

the new tenant becomes directly responsible to the landlord, but the previous tenant may remain responsible to the landlord for unpaid rent or property damage unless the assignment specifically releases the previous tenant from responsibility.

Real property ownership includes

the rights of enjoyment, disposition, possession, control, and exclusion, along with other rights.

What is a true statement about adjustments when using the sales comparison approach?

Adjustments are made to the comparables, and not to the subject property

When must lenders deliver the Closing Disclosure form to buyers?

At least three days before closing

Which loan is a type of gap financing that is used temporarily until the consumer can obtain permanent financing?

Bridge loan--(also known as a swing loan) is a temporary (usually 90-day) loan

The Supreme Court case of ______ paved the way for the fair housing laws used today by overturning the doctrine of "separate but equal."

Brown vs. Board of Education

Which act provides consumers with remedies if they become victims of discrimination in the sale, rental, or financing of housing?

Fair Housing Amendments Act of 1988 (provided consumers with certain remedies for discrimination, which added teeth to existing laws.)

When it comes to landlord-tenant relations, a property manager needs to know _____

Fair housing laws

Conventional loans from large commercial banks are the primary target for which secondary market player?

Fannie Mae (Fannie Mae buys conventional loans, mainly from large commercial banks)

Seller-financed transaction

In a seller-financed transaction, the Closing Disclosure and Loan Estimate aren't required. Some other form of statement may be prepared to show the buyer and the seller their respective closing figures.

John is selling his rental property to Tony. Marcus represents John, and Meredith is working with Tony, though there is no agency relationship between them. In this scenario, who is/are the principal(s) in an agency relationship?

John--- Marcus is John's agent and fiduciary; John is Marcus's client and principal.

What could be a consequence if there were no secondary mortgage market?

Lenders might not have funds available to make new loans to the public.

After Wynn and Lianne enter into a contract for Lianne to buy Wynn's house, Lianne finds out that there are serious problems with the foundation. Lianne has already signed the contract. Which of the following can she do, if anything?

Lianne can declare the contract void, since a possible misrepresentation of the property invalidated her consent.

Private loan companies may place a ______ on the property for which the loan is being taken.

Lien- If the underlying property is being used as collateral to secure the loan, a lien may be placed against the property.

Life insurance companies participate in real estate in the ______ arena.

Life insurance companies participate in real estate funding in the secondary mortgage market.

Which of the following is a passive type of real estate investment?

Limited partnership-Limited partners are passive investors who invest funds, but don't get involved in the day-to-day activities related to the business.

Net Listing

Net listings are prohibited in several states, and there's no guarantee of commission. The conflict could occur if the listing agent didn't present offers that left little for a commission, even though the offers met the seller's needs.

Which components make up a monthly mortgage payment?

Principal, interest, taxes, and insurance

Redlining

Redlining is the practice of selecting geographical areas in which no mortgage loans will be written (based on demographics instead of creditworthiness).

Which of these situations represents a unilateral contract?

Sherry promises to give Brent a ride home from work, and then doesn't show up.(A promise is a unilateral contract if there's no reciprocal promise. Breaching a contract in which one party performs isn't a unilateral contract)

Landlord Cindy rents a home to tenant Dave. While visiting, Dave's Aunt Myra got burnt while sifting logs in the built-in fire pit. According to Colorado law, unless stated in the lease, who is liable for Aunt Myra's injury?

Tenant Dave

The umbrella organization that's authorized by Congress to develop and oversee the standards and requirements real estate appraisers must follow is called ______.

The Appraisal Foundation

Who benefits from a stronger negotiation strategy in the buyer agency relationship?

The Buyer

Your client is considering two separate investments. One has a low capitalization rate, and the other has a high capitalization rate. Which of the following is a true statement?

The investment with the lower capitalization rate will be valued higher.

Which type of appraisal report is lengthy and often used for complex properties?

The narrative report is a lengthy formal report often used for complex properties. It includes a detailed discussion of the methods used, the steps taken, and the analyses used to interpret the data collected

Eminent domain

The power of the government to take private land for public use is known as eminent domain.

Who does the agent assisting the buyer in a transaction represent if there's no buyer agency agreement?

The seller (Without a buyer agency agreement in place, the agent assisting the buyer actually represents and owes loyalty to the seller.)

Which type of antitrust violation occurs when the providing of one service is made dependent on the customer or client obtaining another recommended service?

Tie-in arrangement

In Colorado, who usually acts as the closing agent?

Title company representative

The introduction of a development into an area can impact ____________, which, in turn, can have an effect on local businesses.

Traffic patterns

The Federal Housing Administration is part of the ______.

U.S. Department of Housing and Urban Development (The FHA has been part of HUD since 1965)

If the responsible parties refuse to clean up hazardous contamination, the EPA can hire its own contractors and seek damages in court for _______.

Up to three times the actual clean-up costs

Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this?

Voluntary

Gus has applied for a home equity line of credit from his federally insured bank so that he can make some renovations to his kitchen. The same bank is his lender for his home mortgage. Will this loan be subject to Real Estate Settlement Procedures Act requirements?

Yes, because RESPA applies to any residential loan transaction from a federally insured financial institution, including equity lines of credit.

Steve is preparing a market analysis for the Joneses and has selected three comparable properties. How many adjustments should Steve make to the Joneses' property?

ZERO (Steve won't adjust the subject property. Only the comparable sales price is adjusted. If it is inferior, adjust upward. If it's superior, adjust downward)

Regression is when

a lower-quality property is adjacent to a higher-quality property, and it can diminish the value of the higher-quality property.

Group Boycotting

involves a group of agents agreeing not to do business with another group.

Which real property ownership right protects the owner from harassment or interference?

Enjoyment

Which term is defined as occurring when land is washed away gradually, which results in decreasing property size?

Erosion ---- is the gradual washing away of land that, over time, decreases the size of a property.

If a party to a contract lacks legal capacity but enters into a contract anyway, which party may void the contract?

If the party doesn't have legal capacity and enters into a contract anyway, the contract is voidable by the party lacking legal capacity. So an adult can't hold a minor to a contract; however, the minor can hold the adult to the contract.

Plottage

is an increase in property value when two neighboring parcels of land are joined together.

Sales volume

is the number of houses sold. A sales data map can assist you with locating areas of high activity and anticipating the direction of future growth.

Novation 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.

Counterproposal form

is used to amend an original offer to purchase. (The Counterproposal form amends the original offer to purchase)

RESPA regulations apply to

loans on one- to four-family residential properties, including assumptions, refinances, home improvement loans, and equity lines of credit.

Lower capitalization rates mean

lower risk and higher value. (The capitalization rate is an estimate of the rate of return.)

Plessy vs. Ferguson

originated the "separate but equal" doctrine that legalized racial segregation,

Brown vs. Board of Education

overturned that doctrine, finding that separation is inherently unequal.

This is an accrued expense, and will appear as a seller debit and a buyer credit.

this bill is due but hasn't been paid, it's an accrued item and will appear as a buyer credit and seller debit at closing.