FINAL DEFINITIONS EXAM
An action taken by a creditor in which the court simply retains custody of the property while a lawsuit is being decided is known as: 1 a writ of attachment 2 a writ of execution 3 constructive eviction 4 actual eviction
"A writ of attachment is a court order to "attach" or seize an asset. It is issued by a court to a law enforcement officer or sheriff. The writ of attachment is issued in order to satisfy a judgment issued by the court.
A mortgage that covers several parcels of land and contains a provision that allows for the sale of an individual parcel with clear title is called: 1 An amortized mortgage 2 A declining balance mortgage 3 A blanket mortgage 4 A wraparound mortgage
A blanket mortgage A blanket mortgage covers several properties and individual properties can be sold off this is called the partial release clause
If a tenant pays taxes, insurance, their share of common area maintenance, as well as a monthly fixed rent, he has what type of lease? 1 A net lease 2 A gross lease 3 A percentage lease 4 A graduated lease
A net lease This is the definition of a net lease.
Ernie Pyle offers to pay $100.00 to anyone who will clear his driveway of snow. This is an example of which of the following? 1 A bilateral contract 2 A license 3 An implied contract 4 A unilateral contract
A unilateral contract It is made by one party and anyone who fulfills the contract will receive the compensation.
A court order that authorizes and directs the proper officer of the court to sell the property of a defendant as required by the judgment or decree of the court is known as: 1 a writ of attachment 2 a writ of execution 3 constructive eviction 4 actual eviction
A writ of execution authorizes the sale of the property. Don't confuse this with writ of attachment, which is an action taken by a creditor in which the court simply retains custody of the property while a lawsuit is being decided.
An exercise of police power by a municipality to regulate and control the character and use of the property is called a(n): 1 zoning ordinance 2 littoral rights 3 riparian rights 4 Subrogation
A zoning ordinance is an exercise of police power. Building codes can be another form of police power.
The permanent right to use another's land for the benefit of a neighboring parcel is known as: 1 An easement in gross 2 An appurtenant easement 3 An easement by necessity 4 A license
An appurtenant easement is one that benefits the dominant estate and "runs with the land", i.e., an easement appurtenant generally transfers automatically when the dominant estate is transferred.
To the owner of the land an easement runs across, it is a/an 1 An appurtenance 2 An attachment 3 An annexation 4 An encumbrance
An easement is an encumbrance
The type of lease that allows for the rent to be increased or decreased periodically based on changes in the government cost-of-living index is known as a: 1 percentage lease 2 graduated lease 3 index lease 4 assignment lease
An index lease allows for increases OR decreases in the rent dependent on the cost-of-living index.
Usury is: 1 Collecting more interest than allowed by law 2 Building a structure that is totally on someone else's land 3 selling property for less than the asking price 4 Building a structure that is partially on someone else's land
Collecting more interest than allowed by law charging more than the legal rate of interest for the use of money. In Colorado the general maximum rate is 45%. Please remember that figure for the state licensing exam.
The appraisal principle that states that the value of any component of a property is what it gives to the value of the whole or what its absence detracts from the whole is called: 1 conformity 2 anticipation 3 competition 4 contribution
Contribution says that the value of any component of a property is what its addition contributes to the value of the whole.
A term used to refer to any document that transfers title to real property is known as: 1 conveyance 2 conversion 3 consideration 4 counteroffer
Conveyance describes any act of transferring. Don't confuse this with conversion, which is simply changing the status of a property; consideration, which is something of value given to induce a party into a contract; or counteroffer, which happens BEFORE the purchase agreement is completed
A refusal to make reasonable accommodations in rules, policies, practices, or services when such accommodations may be necessary to afford such person equal opportunity to use and enjoy a dwelling is one definition of: 1 Fair Housing 2 redlining 3 blockbusting 4 discrimination
Discrimination is the correct term in this case, the broad term to describe all types of discriminatory acts. Discrimination can occur if its a violation of Federal, State, or Local Fair Housing Laws; or if a violation of ADA laws and statues..
Private property that is abandoned is taken by the local government. This is an example of: 1 Police power 2 Taxation 3 Escheat 4 Eminent Domain
Escheat - This is a classic example of property that government can take over through escheat, another example would be a person dying without a will and no living relatives. The term is often now applied to the transfer of the title to a person's property to the state when the person dies intestate without any other person capable of taking the property as heir. For example, a common-law jurisdiction's intestacy statute might provide that when someone dies without a will, and is not survived by a spouse, descendants, parents, grandparents, descendants of parents, children or grandchildren of grandparents, or great-grandchildren of grandparents, then the person's estate will escheat to the state.
The legal procedure in which property is pledged as security is sold to satisfy the debt is known as: 1 foreclosure 2 actual eviction 3 constructive eviction 4 deficiency judgment
Foreclosure brings the rights of the parties and all junior lien holders to an end.
If a landlord breaches a lease by allowing the property to fall into severe disrepair, which causes her tenant to leave the property because it is uninhabitable, this is known as: 1 actual eviction 2 breach of lease 3 termination of lease 4 constructive eviction
In a constructive eviction, it is the LANDLORD breaching the lease, rather than the tenant. In an actual eviction, it is the tenant breaking the lease.
A situation in which the tenant's lease has expired and the tenant is no longer paying rent, but is living on the property is known as: 1 an estate for years 2 estate at will 3 estate from period to period 4 estate at sufferance
In an estate at sufferance, the tenancy is by a lessee who lawfully occupies the landlord's property, but then continues to occupy the property improperly after his rights have expired
An estimate based on an analysis of comparable sales and other pertinent market data is known as: 1 income approach 2 market value 3 market price 4 cost approach
Market value is the estimate based on the analysis of comparable sales.
A defect or a cloud of title of a property is best cured by: 1 Quitclaim deed 2 A partition action 3 Obtaining title insurance 4 Repudiating adverse claims
Quitclaim deed All parties who may have an interest (ownership) in the property can via a quit claim deed correct the cloud on title. "title" means an individual has ownership of a property. A cloud means there is a possible defect in the physical proof of ownership for example the deed has a wrong legal description or address.
The earth's surface extending downward to the center of the earth and upward into space, including all things permanently attached, but not the rights such as an easement, is known as: 1 Real property 2 Real estate 3 Land 4 A bundle of legal rights
Real estate
If a person lives in an apartment, and owns stock in the corporation possessing the proprietary lease, this is known as a: 1 Condominium 2 Cooperative 3 time sharing 4 community property
Remember that with a cooperative, or co-op, the person is actually a tenant with stock in the company - not to be confused with a condominium, in which the person actually OWNS the unit.
The process of changing a property's status from rental to condominium is known as: 1 conversion 2 anticipation 3 competition 4 contribution
Remember, conversion is "CONVERTING" a property's status from rental to condominium.
The buyer's legal procedure to enforce a contract is: 1 Lis pendens 2 Specific performance 3 An attachment 4 An injunction
Specific performance is buyers legal remedy to enforce the terms of the contract
This appraisal approach estimates the value of the present worth of the future rights to the income the property generates by converting the net income of the property into a value. This is known as: 1 comparative market analysis 2 substitution 3 cost approach 4 income approach
The income approach, also called capitalization, is used to appraise investment or income-producing properties.
The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate, as when an owner conveys a life estate to one party and the remainder to another, is called: 1 the right of survivorship 2 the remainder estate 3 the reversionary right 4 the reversionary interest
The remainder estate is that which is left from a life estate. Don't confuse this with reversionary interest, which is the future interest that reverts to a grantor or his heirs.
An encumbrance that affects the title, usually related to money, is known as: 1 a lien 2 an easement in gross 3 an easement by necessity 4 an easement by prescription
a lien is a charge against a property -- a financial encumbrance. The other easements listed here do not deal with finances, but are considered usage encumbrances and affect the way in which the land may be USED.
A condensed history of a title to a particular piece of real estate, including a summary of the original grant, and all subsequent conveyances and encumbrances affecting the property, is known as the: 1 abstract of title 2 evidence of title 3 certificate of title
abstract of title An abstract of title is the condensed history of title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate. The abstract of title furnishes the raw data for the preparation of a policy of title insurance for the parcel of land in question.
The term for something that grants the right to use another's land for a specific purpose, and is considered an incorporeal interest in land is: 1 an encumbrance 2 an easement 3 an encroachment 4 an equitable lien
an easement grants the right to use another's land for a specific purpose. Remember that an EASEMENT is one type of encumbrance, and liens are another type of encumbrance.
A claim or liability attached to a property is called: 1 an encumbrance 2 an easement 3 a buyer's claim 4 Explanation
an encumbrance Remember that an encumbrance is any claim against a property. Restrictions, liens, and buyer's claims (also known as a vendee's lien) are all FORMS of encumbrances
A claim or interest revealed by a title search is called a: 1 cloud on title 2 lien 3 judgment 4 lis pendens
cloud on title It's easy to remember a cloud on a title as something marring the clear title, like a cloud in the sky marring an otherwise clear sky.
A type of value estimate approach, in which value equals the estimated land value plus reproduction costs of any improvements, after the depreciation costs have been subtracted, is called the: 1 market approach 2 cost approach 3 substitution approach 4 income approach
cost approach is what is described here - it estimates the amount needed to reproduce or replace the property.
The sealing off of disintegrating asbestos is one method of asbestos control. This is known as 1 irradiation 2 encapsulation 3 capping 4 removal of tanks
encapsulation is one method of asbestos control that is usually preferable to removal.
This document that defines the relationship between the real estate firm and the seller is the: 1 listing agreement 2 exclusive agency contract 3 purchase contract 4 disclosure statement
listing agreement that clearly defines the relationships and agreements between the broker and principal.
The law that requires real estate contracts to be in writing to be enforceable is the 1 statute of frauds. 2 statute of limitations. 3 law of descent and distribution. 4 parole evidence rule.
statute of frauds contracts for sale of real property must be in writing to be enforceable -- this is to prevent FRAUD from occurring
A one-sided contract is known as a: 1 unilateral contract 2 bilateral contract 3 involuntary lien 4 voluntary lien
unilateral contract is ONE-sided while a bilateral contract involves TWO persons.
A type of junior mortgage in which the existing mortgage amount, plus any additional purchase funds, is loaned to a buyer by the seller is known as: 1 a writ of attachment 2 a writ of execution 3 a voluntary lien 4 wraparound mortgage
wraparound mortgage Remember that a wraparound mortgage "wraps around" -- in other words, another lender, usually the seller, finances a borrower by lending an amount over and above the existing first mortgage amount without disturbing the first mortgage.
