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What are the main elements of the rectangular survey system?
Longitudes, latitudes, township grids, ranges, tiers, sections, fractions of sections
Name the components of a description using the recorded plat method.
Lot number, block identifier, subdivision name, section location, township, county, state.
Listing the important reasons for creating and maintaining title records
Maintain chain of title by listing previous owners and encumbrances; avoid ownership disputes; give notice of who owns the property and who has claims against it; reveal the marketability of the title; give notice of liens and establish lien priority.
What protections might your state offer to a homeowner against the inadvertent loss of ownership for failure to pay property tax?
Many states have grace or redemption period, a notification process, and equitable or statutory right of redemption.
What are the three phases of land use planning?
Master planning Plan administration Plan implementation—zoning, codes, permits.
What is a release clause and in what type of mortgage would you find this clause?
-A blanket loan usually includes a clause called a partial release clause. This clause allows the borrower to obtain a release of any individual lot from the lien by repaying a certain part of the loan. -The lender will issue the partial release for the one lot, with the provision that the mortgage will continue to cover the remaining lots.
Describe the difference between constructive notice and actual notice.
-Constructive notice is the legal presumption that information is available and can be obtained through due diligence. -Actual notice means that not only is the information available, but someone has been given the information and actually knows it.
What are the three types of frame construction?
-Platform -Balloon -Post and Beam
What could happen if a licensee violates a duty to a client or customer?
-Rescission of the listing agreement (causing a loss of a potential commission) -Forfeiture of any compensation that may have already been earned -Disciplinary action by the state license law authorities, including license suspension or revocation -Suit for damages in court
What is the difference between voltage and amperage?
-Voltage is a measure of how much pressure the electrons in a circuit are under. -Amperage is a measure of the amount of electrons moving through the circuit.
What are two reasons for making land the basis of taxation?
1) The usual stability of land values makes land taxes predictable. 2) The attachment of taxes to land makes enforcement reliable. 3) Land is traditionally related to productivity and wealth; government takes its share.
What five economic characteristics affect the value of land in the marketplace?
1. Demand 2. utility and usefulness 3. Scarcity 4. Transferability 5. situs or site
What are the three physical characteristics of land
1. Immobile or permanent 2. indestructible 3. non-homogeneous or unique
What are the legal tests that determine if an item is a fixture
1. Method of annexation(attachment) 2. adaptability 3. intention 4. Existence of an agreement
Name four common types of zone
1. common zones 2. commercial agricultural planned unit development(PUD) 3.Public 4.industrial 5.residential
What are a tenant's primary obligations when leasing a property?
1. pay the rent on time 2. maintain the property condition 3. comply with the rules and regulation of the building
name the six major rights included in the bundle of rights to Real estate
1. posses 2. use 3. transfer 4. encumber 5. control 6. exclude
Name the aspects of real property interests that are regulated by government.
1. the bundle of rights 2. legal descriptions 3. financing 4. insurance 5. inheritance 6. taxation
What is a Certificate of Reasonable Value and what is it used for?
A Certificate of Reasonable Value (CRV) shows the value of a property in relation to its sales price. It is issued by an approved VA appraiser when a veteran is seeking a DVA loan.
What is the difference between a bargain and a sale deed and a general warranty deed?
A bargain and sale deed covenants valid title but may not warrant against encumbrances or promise to defend against claims. A general warranty deed is a bargain and sale deed that includes assurances of valid title, no encumbrances, and willingness to defend against all claims.
How does a broker's opinion of value differ from an appraisal?
A broker's price opinion is not performed by a disinterested party or licensed appraisal professional. The broker's price opinion typically only looks at the sales comparison approach and ignores USPAP regulations.
Explain how a datum or benchmark is used to describe the elevation of a property in a legal description.
A datum or benchmark has an established elevation. A property description will state that the property is a number of feet above or below the datum or benchmark.
How are the two types of deed restriction created
A deed condition is created in the transfer documents. A deed covenant is created by mutual agreement of the owner and others.
What is a promissory note and what does it do?
A document that describes the amount of money borrowed, the terms under which it will be repaid, and any conditions that relate to either the borrowing of the money or the consequences in event of default. this document es establishes legal evidence of the debit incurred
What is the most common type of heating system in North America, and how does it work?
A forced-air heating system is the most common.draws room air through duct work and a filter into a furnace, where the air is heated. The warmed air is then blown back to rooms through duct work
what is a judgement lien and how long does it last
A judgement lien results from a lawsuit. it attaches to real and personal property as a result of a money judgement issued by a court in favor of a creditor. it lasts for ten years and can be renewed
How is a license different from a personal easement in gross?
A license may be informal and is revocable at any time. Revocation of a personal easement in gross may require the death of the grantee or express release of the easement by the grantee
How can the priority order of a junior lien be changed?
A lien can change the priority of a Junior lien by voluntarily agreeing to subordinate, or lower, the lien's position in the hierarchy
How is a life estate different from a fee simple estate
A life estate is limited in duration to the life of owner or other named person. When the life tenant dies, the estate passes to the original owner or another named party, the life tenant does not have the right to pass ownership to his or her heirs
What is a mortgage?
A mortgage is a financing instrument that creates a lien against a property
Most liens do not convey ownership. What is the one exception to that rule?
A mortgage lien conveys legal title to the lender
Define the term " predatory lender"
A predatory lender is one that literally preys on the customers who may fall into the below "A" paper lending categories, particularly those who do not speak English, are poorly educated or are elderly.
What are the qualifications to be a "comparable" property?
A property must: resemble the subject in size, shape, design, utility and location; have sold recently; have sold in an arm's length transaction.
What is a sill plate, and what does it do?
A sill plate is a wooden support member that is laid on top of and bolted to the foundation wall. This sill plate serves as the base for the wall framing.
What kind of problem can result from a straight loan?
A straight loan is an interest-only loan. If the property doesn't appreciate in value over time, the borrower could end up with less in proceeds on the sale than what he needs to pay off the loan.
What happens to Joe's real estate in your state if Joe dies leaving
A. a wife , children, and a will B. a wife and children, but no will c. no legal heirs, and no will In general, A) after all claims have been satisfied (including those legal life estates) , the estate goes to the heirs according to the will;B) after all claims have been satisfied(including life estates ), the estate goes to the heirs according to the state's laws of descent and distribution; C) after all claims have been satisfied (here, there can be no life) the estate goes to the state by escheat
Describe the difference between active and passive fraud.
Active fraud is an intentional misrepresentation of a material fact for the purpose of gaining an unfair or dishonest advantage over another person. Passive fraud is an intentional nondisclosure of a material fact.
What are the two types of heat pumps available?
Air source and ground source
Name the four exposure pathways
Air, soil, drinking water, and food
What exception exists to the duty of obedience when working with a client?
An agent is not bound by the duty of if the principal's directions are not legal.
what is the definition of a single agent
An agent who represents only one person in the transaction, either the buyer or the seller.
what is the clause that requires the borrower to pay off the entire mortgage debt when the property is sold?
An alienation clause, also known as a due-on-sale clause
Define encroachment and give an example.
An encroachment is the unauthorized, physical intrusion of one owner's real property into that of another. An example would be a driveway extending beyond the lot line onto the neighbor's land.
Define implied agency.
An implied agency is formed when the actions of the parties indicate that they have mutually consented to an agency. The persons involved may not have consciously planned to form an agency relationship. However, their actions may unintentionally, inadvertently or accidentally form the relationship.
What are some of the apparent advantages of a land trust as a way of owning property?
Anonymity; ease of transfer; ease of use as collateral; potential benefits in treatment of estate on death of beneficiary (grantor).
Describe the main features of the concept of community property
Applies to legally married spouses; distinguishes between community property and separately-owned property; protects each spouse's ownership of the whole community property while spouses live; preserves half of community property for surviving spouse.
What kind of insurance does FHA require borrowers to pay?
As of 2006, the borrower must pay two insurance premiums. The first is the "upfront" Mortgage Insurance Premium (MIP) which is a percentage of the loan amount. The borrower can pay this one-time premium at closing or the charge could be financed with the loan. The second premium, called Mutual Mortgage Insurance (MMI) is a monthly premium that is paid with the monthly principal, interest, taxes and insurance payment. MMI premiums may be dropped when the remaining loan balance is 80 percent loan-to-value ratio or less.
Jerry's property is worth $250,000, and Ira's property is worth $400,000. If these two neighboring properties are combined, the value of the new property is $700,000. This is an example of what real estate value concepts?
Assemblage and plottage value
How can a real estate professional help their clients deal with environmental issues?
Be knowledgeable, ask the right questions, call the experts, and disclose early and often.
In the rectangular survey method, why is it necessary to have guide meridians, standard parallels, and quadrangles?
Because of the curvature of the earth, a rectangle drawn on the earth's surface using longitudinal lines as sides will be narrower on the side farther from the equator than on the side nearer the equator; thus, townships would become smaller and smaller as one moved farther north of the equator. The guide meridians, standard parallels, and quadrangles limit this variance caused by the earth being round.
What principles govern an agency relationship?
Both parties must consent to the relationship. Both parties must agree to form the relationship. The relationship is fiduciary - meaning the agent owes certain duties to the principal
Greg and Joyce purchased a home from the builder who offered to pay $5,000 at closing as an incentive to get them to buy. What kind of mortgage will they get?
Buydown
How does a lender determine if the buyer's income is enough to pay the loan?
By establishing an income ratio and a debt ratio
Name three types of pipes used in plumbing systems.
Cast ironCopperPVC
What are the primary differences between a condominium and a cooperative as forms of ownership?
Condo owner actually owns real property-- airspace and share in common elements-- while co-op owner owns shares in a corporation and proprietary lease; condo unit can be transferred, encumbered or foreclosed as an entity, while co-op interest cannot be so handled, but only as an interest in the corporation; entire property is endangered by default of co-op shareholder, but only individual unit is endangered by default of a condo owner.
An agent's fiduciary responsibilities to a client usually end when the transaction closes. This is not true of which duty?
Confidentiality. This duty extends beyond the termination of the relationship. No personal information gained during the term of the agreement can ever be disclosed to another party.
A comparable property has a $5,000 porch that the subject project does not. How do you make this adjustment?
Deduct $5,000 from the sales price of the comparable.
What do deed restrictions do?
Deed restrictions place limits on how the property may be used.
What are the primary disadvantages of the cost approach?
Depreciation is difficult to measure and that the cost to create improvements is not necessarily the same as market value.
You discover there is asbestos in your home. What should you do?
Do keep activities to a minimum in any areas having damaged material that may contain asbestos. Do take every precaution to avoid damaging asbestos material. Do have removal and major repair done by people trained and qualified in handling asbestos. It is highly recommended that sampling and minor repair also be done by asbestos professionals.
what is the primary distinction between a freehold estate and a leasehold estate
Duration of the owner's right. A leasehold is temporary even if there is no specific term, while a freehold has an indeterminate duration
what are the basic types of easement and how are they different
Easement- attaches to the estate and transfers with it unless specifically stated otherwise in the transaction documents Easement in gross - a personal right to use that does not attach to the grantor's estate
What does eminent domain allow a government to do?
Eminent domain allows a government entity to purchase a fee, leasehold, or easement interest in privately owned real property for the public good and for public use, regardless of the owner's desire to sell or otherwise transfer any interest. In exchange for the interest, the government must pay the owner "just compensation."
What is loan flipping?
Encouraging a borrower to refinance a loan so that the lender can charge high points and fees for the new loan.
What are the differences between the two kinds of right of redemption and the right of reinstatement?
Equitable right of redemption gives the borrower the right to pay off loan amounts and reclaim a foreclosed property up until the completion of the foreclosure sale. Statutory right of redemption allows the borrower to pay the debt and reclaim the property for a statutory period which may go beyond the completion of the sale (up to a year, in some states). Statutory right of reinstatement allows the borrower to cure the default and reinstate the loan during a statutory period before the law suit is concluded.
Which type of leasehold estate is commonly referred to as a periodic tenancy?
Estate from period to period.
What is the first step in the cost approach?
Estimate land value
FHA and VA loans differ from conventional loans in what important way?
FHA and VA do not loan funds directly. FHA insures loans and VA guarantees loans, but the loans themselves are made by approved, qualified lenders.
What does federal law say about the termination of private mortgage insurance?
Federal law requires that any loans originated after July 1999 must have the PMI terminated after the borrower has accumulated 22% of equity in the property (loan-to-value ratio is 78%) and is current with all loan payments. However, the law also states that a borrower whose equity equals 20% of the purchase price or appraised value may request that the lender cancel the PMI.
Describe the kinds of interests regulated at each level of government.
Federal: broad standards of usage, natural disaster, environment,discrimination,land description,lending State: licensing,regional usage, ownership and inheritance Local: specific land use control taxation Judicial: case law and common law applications to ownership and use
What is the highest form of ownership interest one can acquire in real estate and why?
Fee simple estate.It includes the complete bundle of rights and the tenancy is unlimited.
why was freddie mac created and what is its mission
Freddie Mac was created in 1971 to develop a mortgage-backed security for conventional loans. Freddie Mac's mission is to provide stability, affordability and opportunity to the housing market by putting home ownership within reach for minority populations and making rental housing more affordable.
The value of a property is $236,000, and the monthly rent is $2,000. What is the gross rent multiplier (GRM)?
GRM = 118. Divide $236,000 by $2,000
Who are the three major players in the secondary mortgage market?
Ginnie Mae Fannie Mae Freddie Mac
what is the basic purpose of truth in lending - regulation
Give buyers information about the true cost of obtaining credit so that borrows can compare the costs of various lenders
What are some of the assurances about construction quality provided to home buyers by federal laws and regulations?
HUD's Minimum Property Standards provide minimum standards for HUD-regulated single-family and multi-family construction projects. The Interstate Land Sale Full Disclosure Act guards consumers against fraud by requiring developers to disclose relevant information about subdivisions before purchase. The National Electrical Code provides standards for wiring and electrical equipment. The Americans with Disabilities Act ensures that accessibility standards will be observed in certain types of residential construction.
What action demonstrate exercising care when representing a buyer ?
Helping the buyer locate appropriate housing Evaluating property values and property conditions Determining financing alternatives Presenting offers and counteroffers with the buyer's interests in mind
What obligations do licensees owe to their customers?
Honesty and fair dealing Reasonable care and skill Proper disclosure
List the steps of the appraisal process.
Identify the purpose, assimilate relevant data, assess the highest and best use, estimate the value of the land, apply the three approaches to estimating value, reconcile the values from the approaches, and compile the report.
Discuss how the right of possession determines what kind of estate or interest a party has in real estate.
If the interest-holder enjoys the right of possession the estate is an estate in land. if the interest-holder does not have the right of possession , the interest is an encumbrance in the case of a private interest-holder, or some form of public interest in the case of a non-private(i.e., governmental ) interest-holder
What are some circumstances that typically trigger a reassessment of a property?
Improvements to the property in general. Specifically, basement finishing, garage additions, swimming pool construction.
Real estate value, in general, is the present monetary worth of benefits arising from the ownership of real estate. What are the primary benefits that contribute to real estate value?
Income, appreciation, use and tax benefits
What is the function of a deed in lieu of foreclosure?
It avoids foreclosure by transferring legal title to the mortgagee.
Is a special assessment a voluntary tax lien or an involuntary tax lien?
It can be either, depending on whether the citizen has asked for the improvement which is to be paid for by a special assessment (voluntary) or whether the taxing entity has initiated the assessment (involuntary).
What is the purpose of a deficiency judgment?
It enables a lienor to attach the personal and real property of a lienee when the foreclosure sale has not produced enough funds to pay what the lienor is owed.
Why is information about Net worth important
It gives an indication of the borrower's ability to keep up the payments on the loan in the event that the borrower would lose his or her job.
What happens to the title to a foreclosed property in a strict foreclosure?
It transfers immediately to the lienholder.
What was the first mortgage-backed security called and why was it called this?
It was called a pass-through security because the monthly principal and interest payments were collected from the borrowers and then "passed through" to the investors.
What are the basic differences between the three types of foreclosure?
Judicial foreclosure: sale under court supervision Non-judicial foreclosure: sale without court supervision Strict foreclosure: no sale; immediate transfer to lien holder.
Explain the difference between legal concepts of land and real estate
Land encompass the surface of the earth, whatever is below the surface, whatever is above extending into space and every natural thing that is permanently attached to the earth. Real estate includes all this plus all man-made things permanently attached to the earth.
Give an example of a legal and illegal nonconforming use.
Legal: A motel is situated in a residential area that no longer allows commercial activity. The zoning board rules that the motel may continue to operate until it is sold, destroyed or used for any other commercial purpose. Illegal: That same motel is sold, and the new owner continues to operate the property as a motel.
What basically happens in a foreclosure?
Lienors force a property owner to give up title. This may involve either the lienors' forcing the owner to sell and pay off the creditors, or taking title directly.
What is the difference between littoral rights and riparian rights
Littoral rights concern properties that border bodies of water that are not moving Riparian rights concern properties that border moving water such as streams and rivers
What do subdivision regulations usually cover?
Location, grading, surfacing, alignment and widths of streets and highways Sewer and water main installation Minimum dimensions of property lots Setback lines for structures Areas reserved for public use, such as parks and schools Public utility easements
Why is notice important in determining who holds the title to real estate?
Ownership is a function of evidence. The best evidence is a combination of actual and constructive notice. Actual = direct knowledge; constructive = "could-have-should-have-known" knowledge (especially, public records).
What kinds of income are considered stable income?
Permanent employment Self-employment under certain conditions Employment that has generated a regular income for at least one to two years, such as bonuses or commissions Some income from secondary sources, such as rental income or investments
List at least three goals of land use control.
Preserve property values Promote highest and best use Balance property rights with public good Control growth involve community in planning process.
Why is it necessary for a complete legal description to include the county and state?
Principal meridians and base parallels extend through more than one county and state; naming the county and state in the description provides extra protection against misreading a description as applying to two different properties.
What happens to the sale proceeds in a judicial sale?
Proceeds are used to pay 1) costs of the sale; 2) special assessment and ad valorem taxes; 3) first mortgage; 4) other mortgages and liens in order of recording; 5) remainder to the borrower.
List two advantages of conventional loans over government-backed loans.
Processing a conventional loan usually takes less time. Loan approval from a conventional lender can take 30 days or less, while approval on a government-backed loan seldom, if ever, can be done in less than 30 days. There is usually no legal limit on loan amounts with conventional loans; however, government-backed loans have dollar limits that vary by agency.
Name some of the primary uses of legal descriptions.
Public recording, creating deeds and leases, mortgage documents, other legal documents
A seller's agent must disclose what kinds of things to the seller?
Purchase offers -Who the prospective purchasers are and if the agent has a relationship with them in any way -Ability of the purchaser to complete the transaction -Ability of the purchaser to offer a higher price -Purchaser's intention to resell the property for a profit
Why is radon difficult to discover?
Radon is an odorless, colorless, tasteless gas, so it's impossible to sense the presence of radon without testing for it.
What is the difference between reproduction cost and replacement cost?
Reproduction cost assumes you are building a precise duplicate where replacement cost assumes a functional equivalent of the subject improvements.
What are some of the typical requirements for well and septic systems?
Requirements for wells typically concern placement—for access, freedom from flooding, away from sources of contamination. Requirements for septic systems typically concern proper design, construction, and maintenance; suitable soil; adequate land area.
Typically, what actions are not considered to be part of a broker's authority?
Signing contracts for the seller Initialing changes to an offer Permitting early occupancy
Give a simple description of the metes and bounds method of description.
Starting at a point of beginning, it traces an enclosed space by following measured lines around an area and returning to the point of beginning
How is subagency created?
Subagency is created by the agreement of the people who are involved in the transaction.
What does a footing do
Supports the entire weight of a structure.
What are the primary differences between tenancy by the entireties and joint tenancy?
Tenancy by the entireties requires co-owners to be married; tenancy by the entireties can have only two owners; a tenant by the entireties cannot convey his or her interest separately to an outside party.
what does it mean if a person takes title to a property ''subject to' the mortgage
That person is not personally liable to the lender for payment of the mortgage. The seller is still responsible for making the mortgage payment.
What piece of legislation initiated the appraisal regulation?
The Financial Institutions Reform, Recovery, and Enforcement Act
What does USPAP stand for?
The Uniform Standards of Professional Appraisal Practice
What are the conditions necessary for involuntary transfer by adverse possession to occur?
The adverse processor must show; a claim of the right; possession with out concealment; possessions without consent; possession for a statutory.; Possibly, payment of taxes
what is the right to rescind and what is not covered by the rule ?
The borrowers has a right to cancel the transaction by notifying the lender within three days. this does not apply to reside5ntial first mortgage loan
If a transaction doesn't complete, under what circumstances would the broker still be entitled to a commission?
The broker is still entitled to receive the commission if the transaction does not complete due to the seller's default.
Give some examples of when one might own equitable title rather than legal title.
The buyer, during the period of contract contingency; a mortgagee who has the right to execute a strict foreclosure of the mortgage property (in a lien-theory state); a mortgagor (borrower) in a title-theory state; the buyer under a contract for deed purchase until the contract is fulfilled; the holder of an option to buy.
What is the function of a deed?
The deed is a transaction document, not an ownership document. It conveys title, when properly delivered and accepted (and registered, in Torrens counties), then ceases to have any transfer function except as evidence that a conveyance occurred, and as evidence of the warrants the conveyor made.
Describe the main differences between deeded time-share ownership and vacation interval ownership as forms of ownership.
The deeded time-share owner owns real property; the interval owner owns personal property; the deeded owner acquires the rights to use (a unit at a specific time), rent, sell, exchange or bequeath the interest; the interval acquires a right-to-use (no particular unit, at a specific time) and may have other rights to sell, exchange, etc., if allowed by the resort owner.
The high school district in your town needs operating funds. How does it regularly obtain them?
The district determines how much of its budget must be paid for from property taxes. Tax officials calculate the tax base and a tax rate for the school district by dividing the tax base into the revenue required. This tax rate is applied to the taxable value of each property and billed to the homeowners at the proper time. The taxing agency (usually the county) collects the revenues and distributes the earmarked portion to the school district.
Define underwriting.
The evaluation process used to determine the borrower's ability to repay a loan and estimating the value of the property being used as collateral.
Why did the federal government establish Fannie Mae?
The federal government established Fannie Mae to increase the flow of mortgage money by creating a secondary market to purchase Federal Housing Administration (FHA)-insured mortgages.
who decides how title to real estate will be held?
The grantee or buyer decides. the seller decides the type of estate transferred
What power does a lender have if a mortgagor defaults in a state that allows non-judicial foreclosure and the mortgage document includes a "power of sale" clause?
The lender can give the borrower notice of the default and a chance to cure it, after which the lender may auction the property.
what factors determine lien property
The lien's categorization as superior or junior The date the lien was recorded
Jake and Myra Smith are purchasing a $150,000 home. They are making a $15,000 down payment and getting a loan for the balance. What's the loan-to-value ratio?
The loan-to-value ratio is 90%. They making a 10% down payment and getting a 90% loan.
Why is a balloon loan a particularly bad idea for a low-income borrower?
The major problem with a balloon payment loan is that the borrower has to come up with a large sum of money at the end of the term. In some cases, the lender requires an even higher interest rate to give an extension. If the borrower doesn't have the income to meet the higher payment, he or she will be in trouble and possibly face foreclosure.
what is common example of an easement by necessity
The need for access to a property so that it is not landlocked.
What is the policy of concurrency?
The policy requires subdivision developers, at the same time as they are developing their projects, to make improvements that will minimize the negative impact of the project on municipal infrastructure.
what are the primary difference between tenancy in severalty and co-ownership?
The primary difference is the number of owners—one vs. two or more. Secondarily, the treatment of the estate on the death of an owner. In a severalty, the estate passes to heirs by probate. In a co-ownership, the estate may pass to heirs (tenancy in common) or to surviving co-owners (joint tenancy, tenancy by the entireties, tenancy in partnership) or to a combination (community property).
What are the essential characteristics of fee simple defeasible estates
The property must be used for a certain purpose or under certain conditions. If the use changes or if prohibited conditions are present, the estate reverts to the previous grantor of the estate.
What conditions are necessary for a special exception to a zoning regulation?
The requested use must be beneficial or essential to the public welfare and may not materially impair other uses in the zone.
Define the "right to use" and describe its limitations.
The right to use a property refers to the right to use it in certain ways such as mining cultivating landscaping and building on the property. the right is subject to the limitations of local zoning and the legality of the use one's right to use may not infringe on the rights of others to use and enjoy their property
what is the role of the secondary mortgage market
The secondary mortgage market consists of holding warehouse agencies that purchase a number of mortgage loans and assemble them into one or more packages of loans for resale to investors.
How many phases are in an environmental audit?
There are four total phases.
What is the Doctrine of Laches?
This doctrine states that if a property owner is lax in protecting his or her rights, the property owner may lose those rights.
What are the primary differences between tenancy in common and joint tenancy?
Title-- only one title in a joint tenancy, multiple titles in tenancy in common; ownership share-- equal shares in joint tenancy, electable in tenancy in common; transferability-- tenant in common may sell, encumber, etc., his or her share, but joint tenant's interest becomes a tenancy in common interest if sold; survivorship-- joint tenant's interest goes to other joint tenants on death, but tenant in common's interest goes to heirs; creation-- joint tenancy requires the four unities, otherwise a tenancy in common results.
Why do communities care about growth trends?
Too much growth of the wrong type or in the wrong place can overwhelm services and infrastructure.
What are the four principle forms of title evidence and describe them?
Torrents certificate- A type of title certificate that also acts as a deed of conveyance; title and encumbrances are recorded on the certificate Title insurance policy-an insurance policy indemnifying the policyholder against losses from the title defects; the insurers "guaranty "Attorney opinion of abstract- A written statement from an attorney stating an opinion of marketability based on examination of the title abstract Title certificate-A statement of the condition of a title as of the date of the certificate
How are easements created?
Voluntary action Necessity Prescriptive operation of law Grant or reservation Implication Government power of eminent domain (condemnation)
Define "undivided interest" in real estate.
When two or more owners share ownership, the interest of an individual owner is undivided and indivisible in the sense that it pertains to a fractional part of the entire estate, not to a physical portion of the real property.
what primarily distinguishes freehold estate from leasehold estate
Whether an estate in land is a freehold or leasehold estate depends on the length of time the holder may enjoy the right to possess the estate, the relationship of parties owning the estate, and specific interests held in the estate. The duration of the owner's rights in a freehold cannot be determined: they may last for a lifetime, for less than a lifetime, or for generations beyond the owner's lifetime. In a leasehold, they have a specific duration, as represented by the lease term.
Define a purchase money mortgage.
With a purchase money mortgage, the buyer borrows from the seller in addition to the lender. This is sometimes done when a buyer cannot qualify for a bank loan for the full amount, so the seller "takes back" a portion of the purchase price as a second mortgage.
Describe a reverse annuity mortgage.
With a reverse annuity mortgage, the lender is making payments to the borrower. This system allows older property owners to receive regular monthly payments from the equity in their paid-off property without having to sell.
The fee simple freehold estate is called the highest form of ownership interest, even though a fee simple defeasible Carries some restrictions on usage. Why are other estates less desirable
With all other estates in land-- life, leasehold-- the holder of the estate cannot control what happens to the estate in the future. The life estate reverts or is remaindered; the leasehold terminates when the lease expires.
Describe the four types of will.
Witnessed—written, two witnesses; holographic-handwritten or typed, signed by testator; approved-on a pre-printed form approved by the state; nuncupative-written by a witness from testator's oral statement; generally not valid for real estate transfer.
What is the last step of the income capitalization approach?
apply the capitalization rate
what is a mechanic's lien
if a property owner fails to pay for work performed or materials supplied, a worker or supplier can file a mechanic's lien to force the sale of the property and collect the debt
what kinds of limits are placed on the interest rate in an adjustable rate mortgage?
interest rate caps limit the amount of interest the borrower can charged. periodic caps limit the amount the rate can change at any one time. overall (or aggregate) caps limit the amount the interest can increase over the life of the loan
What type of lien takes priority over all other liens?
real property tax lien
