Post License

A "chain of title" is a(n

A record of property's grantors and grantees

Signatures

All owners of record should sign. The broker, broker's associate or closing agent has a responsibility to make a reasonable effort to determine who the owners actually are and ascertain that they sign their names exactly as they received title. Buyer's names should be signed exactly as they wish to accept title. All parties should sign for themselves and the licensee should not sign for any of the parties unless there is a valid specific power of attorney that has been recorded or that can be recorded

Acknowledgment

Although a contract for deed is binding between the parties if not notarized, it cannot be recorded without acknowledgment, a declaration by the grantor to a notary public or other public official authorized to take acknowledgments. The acknowledgment certifies that the grantor, known by the notary or other authorized officer to be the identical person who executed the instrument did in fact execute the instrument, and that it was his free and voluntary act

Insurance Clause

Both parties have an insurable interest, but there is no clear duty to insure on the part of either. The typical resolution of the question of who should pay the insurance is covered by the contract provision that the purchaser obtain and keep in force adequate insurance for the benefit of both parties, with the policy to be held by Seller during the payment period. Note the provision that requires notice to Seller before Purchaser's policy may be cancelled.

Air Rights

Condominiums are a good example of a buyer purchasing an "air-space.

Seller's Mortgage Rights

If there is already an existing mortgage against the property at the time of the execution of the contract for deed, whether or not this fact is made known to the buyer, the lien thereby created will not be affected by the sale and the contract buyer's rights will be subservient to those of the lien-holder. Even where there is no such pre-existing secured debt upon the property, however, the seller may find it necessary or desirable to create it even after entering into the contract for deed. Because this action has a negative impact upon the seller's ability to perform his side of the bargain, the contract buyer is entitled to be notified of such intended actions by the seller. The lender, if aware of the contract for deed, will insist upon the contract buyer's acquiescence and recognition of the superiority of the lien of the mortgage.

A prominent part or special attraction in a piece of real estate is known as a(n)

Indirect Question

Interest Clause

Interest calculations may be figured on monthly, semiannual, or other time bases and can be computed on the balance due at the beginning or at the end of the period. In order to avoid misunderstanding, the manner of calculation should be stated clearly

Maintenance and Inspection Clause

It is usually in the best interest of the purchaser to keep the property in good repair. However, in order to protect the seller's security, it is common to impose a positive requirement upon the buyer to maintain the property. Failure of the buyer to do so will constitute a breach of the contract. The seller can terminate the contract and take back the property. Because of the difficulty that may be encountered in monitoring good repair, a good contract will reserve the right to enter and inspect periodically to verify that necessary maintenance is in fact being performed

Acceleration and Additional Expenses Clause

Like a mortgage, a contract for deed should include a clause providing that in case of default on the part of the buyer, the seller can declare the remaining amount due and payable immediately. Known as the acceleration clause, it can also indicate the grace period, the notification to the buyer of what action will be under-taken, and the allowance of additional expenses involved in the foreclosure process to be charged to the buyer.

Assignment and Lease Clause

Many contracts for deed contain an absolute prohibition against assignment. In the absence of any provision at all, the contract for deed would be freely assignable by the buyer just as almost all other contracts may be assigned. This particular covenant contemplates the possibility of assignment, but permits the seller to retain a strong element of control by requiring approval prior to assignment.

Caveat

Real estate practitioners because of the dangers and uncertainties have discouraged the general use of contracts for deeds over a long haul. A contract for deed can develop into a nightmare for both buyers and sellers if not carefully drawn with the guidance of a competent attorney. On the other hand, a well designed contract for deed can be a useful and effective tool in long term financing.

Investments in real estate are generally considered

Risky and a long term investment

Contract Binding

The purpose of a real estate contract is to bind the buyer and seller to do something at a future time. In case of death or incapacity of one or the other of the parties, a valid contract is binding upon the heirs and assigns. This covenant alerts both parties to the permanent effect of the contract that may extend the provisions beyond the life of the parties.

Possession

The risk of loss is on the seller until either title or possession of the property has passed to the buyer. Since title may not be transferred for years, the date of possession becomes significant. Also, the purchaser needs to know when he can occupy the premises.

Against removal; Mechanics' and Materialman's lien

The seller will usually seek assurance against removal or demolition of any building on the property without consent. This is necessary because the amount of money involved is generally based on value that includes both land and buildings. Some improvements may be of no value and actually a hindrance to the proposed use of the property. The seller may be pleased to approve removal of certain dilapidated structures, but the contract should clearly spell out the authority to approve or deny such action

Ad Valorem Taxes and Assessment Clause

The tax burden for property is usually imposed upon the holder of record title. In a contract for deed, the seller remains the hold of title but logically the payment of real estate taxes should be the responsibility of the purchaser who is occupying and using the property. The clause is necessary to effect the shifting of the burden of payment to the purchaser. Sellers commonly reserve the right to pay the taxes in order to protect their security, the legal title, and to add the cost back into the unpaid balance

Use Clauses

The use clause requires the buyer to refrain from breaching any existing private or restrictive covenant as well as prohibits illegal use of the property. Such protection is necessary to protect the value of any property interest retained by the seller, whether he intends to keep it or sell it to others. It is also protection for the innocent seller against asset seizure should the property be subject to confiscation for illegal substance distribution.

Rights to Land

These are leases, easements, rights of way, and licenses

Charges Against the Land

These are mortgages, tax liens and mechanic's liens

Interests in Land

These interests may be present interests such as a fee simple or a life estate, or future interests such as a reversion or a remainder

Mineral Rights

These rights may be created by virtue of grant called a "lease" or an absolute conveyance which is the "severance" of the mineral rights

Pre-payment Clause

This clause gives the buyer the privilege of paying off the contract ahead of schedule. It will usually state that the buyer may pay the entire or stated amounts on the principal at any time he chooses prior to the due date. Some such clauses, however, call for a pre-determined penalty for early payment.

Escrow Instructions

When a neutral third party is engaged to handle the details of the transaction, instructions should be set out in detail stating the conditions on which the deed is to be delivered to the grantee, the disposition of the deed on default, and other details pertinent to the escrow agreement

You will probably never get it if you don't ask for it.

a commitment to buy

A broker deposits a client's earnest money in the business checking account. Because the broker has not paid federal income taxes, Uncle Sam puts a lien on the checking account, which prevents the broker from withdrawing any money, including that of the

a trust account

The most effective medium for attracting potential customer calls is

a yard sign

To a real estate agent, prospecting is

an integral part of real estate wherein the agent is constantly seeking additional buyers and sellers to serve

Before brokers are entitled to claim or sue for commissions on the sale of real property, they must meet which of the following requirements? I. Be licensed as brokers prior to offering to sell. II. Be employed by a party through a valid listing agreement. III. Be members of the OAR

both 1 and 2

An associate receives two offers for a listed property within a ten- minute period. One offer was 2% less than the listed price and the other was 6% less than the listed price. The associate should present to the seller

both offers

Target marketing is

concentrating on a particular portion of a market either by working only in a specific geographical area or confining activities to a specific price range of properties

When the costs of inputs necessary to manufacture a product or offer a service increases, the resulting increase in price is known as

cost-push inflation.

When new industry moves into a community

development of real estate cannot respond to immediate demands

Persons who are highly decisive and seek to control people and situations may be classified by personalities as

directors

Which of the following statements about discount points is (are) correct?

each point charged by the lender cost 1 percent of the loan , each point charged by the lenders yield on the loan by 1/8 percentage point

A prominent part or special attraction in a piece of real estate is known as a(n

feature

An alienation clause, if the mortgaged property is sold

gives the lender an opportunity to eliminate low interest rate loans and allows a lender the opportunity to accept or reject the purchaser as a substitute borrower

In a sale by contract for deed, the buyer

has equitable title to the property and is entitled to a conveyance of legal title when all payments have been made

Which of the following advertising practices is allowed by law in Oklahoma

offering free radios as a premium for listing with a firm

One of the simplest and best responses to an objection is

oh ?

Brokers or associates may advertise their own property

only as licensees marketing their own property

One cause for suspension or revocation of a real estate license is

placing a blind ad (no disclosure of professional status

In general, when the supply of a certain commodity increase

prices tend to drop

A person who appears to be interested in buying a particular piece of real estate is a(n

prospect

When investigating the history of the title to a given piece of real estate, the abstracter checks

public records relating to judgments, zoning ordinances, the abstracter checks. and records maintained by the county recorder of deeds, mortgages, mechanics liens, and the like

People want to buy things from a(n

real live person who is concerned with the needs of the consumer

The major purpose of the Oklahoma Real Estate Education and Recovery Fund is to

reimburse any person adjudged by a court to have suffered loss due to a licensee violating the Code

In dealings with the public, brokers may not

remain silent as to material facts concerning the property known only to themselves

Maslow's Hierarchy of Needs include all of the following motivational factors, except

self perpetuation

The concept of insurance is to

spread the risk among many persons, and thus exchange the possibility of a major loss for a known cost of manageable proportions.

Which of the following statement is not correct?

the abstracter guarantees the title to real estate

The sales contract is silent as to who is to close the transaction. The listing broker deposits the earnest money in a trust account and appoints a title company as closing agent. The broker pays all earnest money to the title company. The title company .

the broker and sales associate is subject to disciplinary action under the licensing code for failure to provide copies of closing documents to the parties

The real estate market is subject to

the law of supply and demand and the cyclic changes in the national economy

When the purchase of real estate is financed through a contract for deed

the legal title remains with the sellers until the contract is performed and the entire purchase price is received by the sellers

Cocooning to the agents in the profession of real estate means

the movement wherein people are seeking to spend more time at home and even develop home based businesses or work in their homes

All of the following statements about FHA and VA loans are correct except

they require a prepayment penalty

Personal promotion consists o

utilizing various methods of enhancing an image to the public, such as community service, coaching athletic teams, volunteering to work in fund drives . etc.