RE level 4
Per the Wood Infestation Inspection and Report section of the Residential Contract of Purchase, who must pay for a wood infestation inspection and report of the property?
Only the seller must pay for both Per the Wood Infestation Inspection and Report section, the seller must pay for both the inspection and the report.
Which section of the Residential Contract of Purchase identifies the fees associated with the sales transaction that the seller and the buyer are responsible for paying?
The Expenses; Prorations; Rollback Taxes section of the Residential Contract of Purchase identifies the fees associated with the sales transaction that the seller and the buyer are responsible for paying.
what are the top three primary commercial leases
gross, net and percentage
lead concerns
house built before 1978
contract terminated by operation of law
in the instance of fraud the contract can be terminated
amendment
is a change to an existing document.when added, it changes the original terms of the sales contract.
easement
is a right to cross over or otherwise use another person's land for a specified purpose. A common type of easement is a utility company's right to access a property's lot to maintain its power lines. Generally, existing easements are included in lot sizes, though size calculations may vary.
addendum
is an addition.Addenda may be added without changing the original contract.
Specific performance
means that a party must do exactly what it agreed to do. So if a seller agreed to sell a property and then later reneged, the buyer can sue for specific performance, meaning the seller must sell the property as agreed. No other property or monetary damages equal specific performance—only meeting the terms of the original contract qualifies.
Partial performance
means that only a portion of what a party has agreed to has been completed. Sometimes partial performance is enough for the other party; sometimes it results in a termination.
breach of contract
occurs when one party fails to meet the obligations of the contract.
Impossibility of performance
occurs when the property is destroyed or made the subject of eminent domain. The parties cannot legally or practically do what they've agreed to do, so they are released from their obligations under the contract.
Performance
of a contract means meeting the agreed-upon terms. When both parties fully perform the contract, the contract has been executed, and the parties are now discharged from their duties.
option contract
option, is an offer to purchase a specic piece of real estate, but without the obligation to buy it.
Tax abatement
programs reduce or eliminate the amount of property tax owners pay on new construction, rehabilitation and/or major improvements. They won't completely eliminate your property tax bill - you'll still have to pay taxes on the value of the property before it was improved.
Net Leases
A triple net lease (or NNN lease) is one in which the tenant pays all expenses related to the property in addition to the rent: • Taxes • Insurance • Maintenance (CAM)
A wronged party can take any of the following options to remedy a breach-of-contract situation:
Accept partial performance Rescind the contract unilaterally Sue for damages Sue for specific performance Accept liquidated damages Mutually rescind the contract
T.I.M
taxes, insurance, maintenance
percentage lease
the tenant pays a base rent plus an additional charge that is a percentage of the tenant's gross sales
With a single net (N) or double net (NN) lease,
the tenant pays one or two of these expenses, but not all three.
Exclusive Agency Agreement
work with one agent but if the seller finds the buyer you dont get anything
VA's Statute of Limitations for Real Estate Transactions
5 years
Benefits of Leasing (commerical) Lease benefits include the following:
Credit ratings are not as crucial for leasing as compared to buying. • Monthly rent is a tax deduction as a business expense. • There is no equity loss of owning in a bad market. • Leasing provides a business with the opportunity to rent a greater variety of properties with a good location and to create a better image than one the business might otherwise be able to afford. With many businesses, such as retailers, the business is dependent on location and image, and leasing provides a more affordable solution. • When the business owner's capital is not tied up in real estate, that money can be used elsewhere in the business, which would allow the business owner to respond to opportunities in the market faster. • If the business grows more quickly than expected, a decision to move to larger premises can be executed faster if the business owner does not have to worry about selling first, which can take time. If, on the other hand, the business is terminated or significantly downsized, the ability to sublet can help minimize the financial loss. • Leasing is not a long-term financial commitment, compared to purchasing, which makes leasing beneficial for businesses just starting out.
Reggie has a buyer client who is purchasing a home built before 1978. Which two documents must Reggie ensure that his client receives as part of the Residential Lead-Based Paint Hazard Reduction Act?
EPA lead-based paint brochure and state-specific lead-paint disclosure Reggie must ensure that his client receives copies of the EPA lead-based paint brochure and Virginia's Disclosure of Information and Acknowledgement Lead-Based Paint and/or Lead-Based Paint Hazards document.
paid by the buyer at settlement
In addition to your portion of the fees that we just discussed, which will be prorated, you're also responsible for paying the fees for the title exam (except as otherwise provided), survey, recording, and, of course, your own legal fees. In addition, you're responsible for paying the seller for any fuel, oil, and/or propane that remains in the tanks at the property, if applicable.
balance of the purchase price
Indicates that the buyer will provide the remainder of the purchase price at settlement.
third party first trust
Indicates the primary type of financing, if any, the buyer is using to purchase the property.
What are paint, soil, pipes, dust, and drinking water all potential sources of?
Lead contamination
Loft Leases
Loft leases provide for rental of oor space for wide open loft type spaces. Because there are no (or few) roomdividers, the tenant may wish to divide the space. Loft leases, however, generally preclude the tenant from making structural changes or any changes that could impact utility services
Open Listing Agreement
Multiple agents, whoever finds buyer win
Drawbacks of Leasing (commercial) Lease drawbacks include the following:
Rental rates can include annual increases based on market conditions. • The landlord holds the right of reversion at lease end. The tenant may be required to move at the end of the lease. • The tenant may have little or limited control over what the owner of the property decides to do. If the building owner sells, the tenant may have to relocate, which causes disruption and extra expense. This can result in a loss of goodwill that has been gained and potentially a loss of customer base. • If the business has no equity in the property, the lease repayments essentially build the property owners' equity. • There can be many obligations and hidden costs in a lease, which can be onerous for tenants if they are not aware of them.
Robert is selling his home, which is a single family dwelling built in 1994. Although not far from a new development, Robert's home is not part of any homeowners' association. Robert had an addition put on the home several years ago. Which of the following must Robert provide to the buyers?
Robert must disclose if there are any mechanic's liens against the property.
If the buyer is putting earnest money down, which of the following statements is true?
The buyer must specify the exact amount in the Residential Contract of Purchase. If the buyer is putting earnest money down, the buyer must specify the exact amount in the Deposit section of the Residential Contract of Purchase.
paid by the sellers at settlement
These include the fees for the preparation of the deed and the recordation fees for grantors—or sellers. Sellers will also have to pay their portion of the taxes, assessments, interest, rent escrow deposits, and other ownership fees will be prorated as of the settlement date. Obviously, they'll also have to pay their own legal fees
Ground Lease
This is a type of lease in which the tenant leases property on which the tenant intends to build. The lease term is designed to be long enough for the tenant to recoup the investment for the outlay of cash to build the building. When the lease expires, the improvement belongs to the landowner. Generally a net lease is used where the tenant must pay rent plus taxes, insurance and maintenance (plus repairs). A net ground lease typically has a term of just under 50 years.
Proprietary Lease
This is the lease used by owners of cooperative apartments who purchase shares of the corporation that own the building; the proprietary lease holder does not own the apartment, but a proprietary lease to the residential unit.
Modied gross leases
Typically, a modied gross lease will include all the nets in the base rent, but not utilities or janitorial.
Oil and Gas Leases
Under these special lease agreements, the landowner receives a cash payment for executing the lease. The lease typically gives the oil or gas company time to determine whether oil or gas exists, and a deadline by which drilling must begin. If the option to drill is not exercised within the stated timeframe, the lease expires. If it is exercised, the landowner generally receives royalties on the oil or gas extracted.
Gross Leases
With a gross lease, all expenses related to the property are part of the lease payment and are paid by the landlord. Full service leases, referred to as "FS," include the base rent, the nets, utilities and janitorial expenses in one price per square foot lease rate, which allows the base rent to remain stable over time. The tenant pays a pre-determined lease rate each month, and there are no pass-through expenses for changes in operating expenses.
Exclusive Right-to-Sell Agreement
You get the commision no matter who finds the buyer
Contingencies
are conditions that must be met before the agreement of sale is complete and enforceable. They usually include the actions necessary to remove the condition, a deadline for its removal, and the party responsible for the accompanying actions or costs involved.
Prescriptive easements
are easements gained with regular use that aren't approved by a property's owner. An example is your neighbors encroaching onto your property by moving their fence three feet onto your lot, reducing its size. Prescriptive easements become "squatter's rights" and can be difficult to eliminate once granted.
for an option to be valid it must contain
• To be enforceable, there must be consideration (something of value—generally, money) given in exchange for the promises made in the contract. • It must state how long the option period is; (The typical option period is often six months. Option periods cannot be "forever," or even be extended indefinitely.) • It must clearly state the sales price of the property, or the way in which the price will be determined, if the optionee chooses to purchase the land during the option period. • It must comply with the statute of frauds, which means it must be: o Written o Signed by the optionor In addition to these elements, an option contract must clearly state any other terms or conditions that apply to the optionee's exercise of the option to purchase the property. For example, the optionee might, under the contract terms, be required to exercise the option only by written notice to the optionor, or the optionor's attorney.
