EXAM, Flashcards
1
Q
ch 3 What are the 2 main categories of easements
A
- easement in gross - what is the most common? a utility easement
- defining characteristic - its going to go away at some time.
- 1 at a time, but as many as you want.
- servant tenement - easement is just on that 1 property. - the apartment easement - remember solely for tests purposes - remmember “PERMANENT, LAST FOREVER” the defining characterstic is that it lasts forever, it never goes away.
how many properties are involved with an apartment easement? - 2 properties
apurtnat easement have both:
-servant tenament
-dominant tenament
because their are 2 properties.
2
Q
OFFERS
A
1 way to reject an offer is to make a counter offer
3
Q
what is the property tax calendar in North Carolina?
A
jan 1
taxes become a lien on the property
taxes have to be paid by jan 5th
4
Q
a contract for deed is
A
same as an installment land contract
5
Q
ch 4 - What kind of property descriptions in north Carolina
A
metes and bounds
6
Q
a ground lease
A
youre going to build something on LEASED land. What would make it recognizable? TERM, very long term leases like building a building on a land you lease (Verizon building a tower with a 99 year lease)
7
Q
non warranty feeds
A
guarantee from the grantor that the guarantee is going to have clear mark able yitle
good till forever
8
Q
breaches of a contract and remedies or fixes of a breach
A
remidies or damages:
liquidated damages-renegotiated agreed to by both parties so we don’t go to court.
you costs me X amount” in court.
consequential damages - pain and suffering, can’t put a price tag on it
9
Q
There are three basic types of buyer agency agreements. In which type is the agent guaranteed a commission regardless of who sells the property?
A
exclusive buyer agency
10
Q
operating expenses
A
utilities, maintenance, property taxes
11
Q
how do you convert a tax rate to a mill rate?
A
multiply by 10
12
Q
very of occupancy
A
prooof that you’ve complied to building codes. Comes after they’ve inspected it to make sure it complies
13
Q
residential rental agreements act
A
applies to residential. what is the landlord promise to od in this act? provide a fit, and habitual condition. tenant agrees to pay rent. tenants can consttufctively evict themselves if landlord isn’t doing what they are supposed to do
14
Q
quitclaim deed /
A
guarantee nothings
15
Q
sam ‘the bank’ is selling the house except sam is the owner of the house
A
you’re borrowing the money from the person you’re buying the hide from. Why are you buying the house from the person who owns the house.
16
Q
ch 2 TENANCY BY ENTIRETY
A
IT OVERRIDES IT IF ITS BY ENTIRETY… IF IM MARRIED, IF I OWN PROPERTY WITH MY SPOUSE . CANT WRITE IN WILL THAT MY PART OF PROPERTY GOES TO MY MISTRESS BECAUSE TENANCY BY ENTIRETY OVERRRIDES WHAT IS IN WIL.
17
Q
the ways to increase equity in the property
A
make what i owe less pay down my mortgage. Market value, improvements, pay down my mortgage
18
Q
A real estate brokerage company has developed standardized policies regarding the inventory of properties to be shown to prospective buyers, the company’s standards for qualifying buyers, and documentation of all conversations and showings. These policies can help the firm defend itself in the event of an accusation of discrimination, but only if the policies
A
require every licensee in the firm to follow them consistently.
19
Q
A distinguishing characteristic of owning property by land trust is that
A
the identity of the legal owner is kept confidential.
20
Q
A buyer made an offer on an apartment building. The offer was not acceptable to the seller. When the buyer refused to accept the seller’s counteroffer, the seller agreed to accept the original offer. What MUST happen now?
A
Nothing; by making a counteroffer the seller released the buyer from the original offer.
21
Q
when do they become deliquement
A
jan 6th
22
Q
ch 7 How can a firm participate in a sale?
A
1. exclusive agency - exclusive buyer, exclusive seller 2. dual agency designate dual 3. corporatize sale - most common one 4. co broker - 2 diff firms
23
Q
a voidable contract is enforceable on
A
1 party. Only 1
what gives us a voidable contract?
- a contact with a minor is a voidable contract
- contract w an intoxicated person - is voidable
- a previously valid contact that was breached with 1 of the parties
24
Q
ch 4 do we have to disclose the status of streets
A
they are public or they are private
25
preliminary plat map
you can write contracts, everything but CLOSE.
| -
26
An agent has a fiduciary relationship with the
client or principal
27
ch 4 In orther states, what kind of description do they use ?
The government rectangular survey
28
ch 5. signing ownership over
voluntary. alienation
29
periodic tenancy
A leasehold estate that automatically renews itself at each expiration is a
30
alienation clause
Transfer of title - alienation
if we no longer own the property, we have to sell it off.
31
covenants and restrictions mean same thing
covenants and restrictions mean same thing
32
Exclusive right to sell listing
Exclusive right to sell listing: In this agreement, the agent gets paid no matter who sells the property, regardless of whether it’s the agent or the seller.
33
prepayment penalty clause
if your payment is paid off completely
| ... i won the lottery. If i refinancing is a prepayment penalty clause.
34
ch 2 WHAT IS A TIMESHARE IN North carolina?
"USE OF IT FOR 5 OR MORE" SEPARATE TIME PERIODS OVER THE COURSE OF 5 OR MORE YEARS." and IF I BUY ONE, I HAVE how many days to change my mind? "I have 5 DAYS TO CHANGE MY MIND."
35
A seller signs a listing agreement with a broker. The seller can cancel the listing at any time without legal liability if
the broker violates the terms of the contract.
36
ch 10-12 if buyer breaches the contract then they
specific penalties "liquidated damages" is to avoid going to court, agreed that if I screw up then I will go to court, and if you screw up then you will pay the earnest money.
anytime that the 2 parties had negotiated ahead of time, in case you screw up then we can agreed in advance on what's going to happen.
37
what is communication of acceptance?
because we don't have an enforceable binding contract/when does communcaitoion of a signature, telling client your client has signed your offer"
when both sides are aware that the contract has been accepted"
Acceptance equals SIGNING.
can't be under contract unless theyve signed the offer.
38
ch 13 terms leverage and equity
you can get a better return by borrowing money. does it make sense to borrow money or paying cash
39
option holder = buyer = optineee
the right to buy
40
And we can change the value up or down every 4 years? What is that called?
horitzonal adjustment
41
Joint Tenancy with Rights of Survivorship Vs. Tenants in Common
Joint Tenancy with Rights of Survivorship
Joint tenancy with rights of survivorship is common between married couples. In this co-ownership, each party owns the property equally and undivided. If one party wishes to transfer his share to someone else during his lifetime, the other owner must consent and sign the resulting deed. The rights of survivorship imply that upon the death of one owner, his share is transferred automatically to the surviving owner. The survivorship rights take precedence over the deceased's will or inheritance rules
Tenants In Common
In tenants in common ownership situation, two or more owners can own equal or unequal shares of the same property. For example, two owners can hold equal shares, or multiple owners can own different percentages that equal 100. The shares in ownership are separate from one another. So one owner can transfer his share to someone else at any point in time without the consent of the other owners. If an owner dies, his share in the property is passed along to the person named in his will or to his surviving heirs if no will exists.
42
private land use controls
restrictions
- who has to enforce these covenants ?
individual owners within that subdivision, only takes one.
any owner is free to enforce these covenants within any other home owner
43
enforceable contracts
have to be of consideration
44
a VOID contract
is an illegal act / don't go to court because what youre contracting is illegal
45
shareholders are
it is a corporation
46
what does the word addendum
adds terms to the contract
47
If the terms of a contract indicate that Party A will be obliged to perform her part of the contract only if Party B chooses to take a certain action, then the contract is a
unilateral contract in which only Party A has made a promise to perform.
48
ch 2 CONDOMINION
- BASICS OF A CONDO: WHAT ARE YOU BUYING WHEN YOU BUY A CONDO?
- YOU OWN THE "AIR SPACE OF YOUR UNIT
AND BUYING HIS SHARE OF THE COMMON ELEMENTS W EVERYONE ELSE IN THE SUBDIVISION."
- YOU ARE COMING IN AS TENANT IN COMMON
49
If conditions for property use are included in a deed and these conditions are violated, what is the most severe potential penalty?
A court may order the return of the property to the original owner.
50
what do we normally use a quitclaim deed for?
Fix a defect; husband and wife had a deed whatever ownership i may have had i forfeit it.
“it
primary use of quit claim deed is to clear defects/clear clouds on title’
51
a contract
```
competent parties -
of age
"un do influence"
contracts don't have to be recorded
real estate sales contracts have to be in writing according to statue of frauds"
```
52
Which type of listing provides the strongest protection of the brokers interests?
exclusive right to sell
53
liquidated damages
An amount of money, agreed to in writing by buyer and seller, that will serve as full compensation if one party does not live up to a sales contract is called
54
ch 4 how many sections in a township?
36 sections
55
New sidewalks installed only on one particular street will probably be paid for by
Correct answer: a special assessment.
56
Open listing
In this type of agreement, sellers have the right to use as many brokers as they want. However, the seller isn’t obligated to pay any of them if he or she sells the property without the broker’s help.
57
what is an "upfit"
customization for particular tenant's use. its not updating or upgrading, it is customizing or building it out to suit "will build to suit your needs" UPFIT paid for by the landlord upfront
58
Tenancy by the entirety
Ownership that’s available only to married couples, tenancy by the entirety means that property may not be sold without the agreement of both parties. The right of survivorship exists to the extent that if one spouse dies, his/her interest reverts to the other spouse.
59
ch 4 with the matth of gov. rec survery... make sure you know:
break down the 640 section based on the quarter and half to get total acres for piece of land
60
LLC’s have
members or owners
61
** review -- anything that terminate an easement?
death of an easement holder; if you buy both properties - if you have a merger
62
if its not in writing, contract is
un - enforceable
63
Listing Agreement
An employment contract between a property owner (as principal) and a real estate firm/broker (as agent) by which the broker is employed to find a ready, willing and able buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay commission.
64
ch. 10-12 how do we handle a due diligence fee in a closing statement?
both buyer and seller see it, its on both sides. Its either a debit or credit to each one.
Buyer = credit
Seller = Debit
money buyer already paid, and money seller already has.
65
A salesperson qualified a minority couple with two children and defined their price range as between $110,000 and $120,000 for the three-bedroom house they wanted. They asked to look at two listings in a nonminority neighborhood. The salesperson did not show them the properties because they were priced under $90,000 and had only two small bedrooms. Did the salesperson act appropriately and why or why not?
No, because it is appropriate to show any property for which the buyer is qualified.
66
a percentage lease
retail/ because its based on a percentage of sales
67
clauses and what they do to the note - Acceleration clause
The due date’
| when the money is due. When borrowers in default, you owe me to whole amount
68
how long does an offer stay valid?
until we revoke it or it is accepted. offers generally live forever unless its either revoked or accepted
69
ch 10 " A resale contract" is
not for new construction, vacant land, or commercial *there are no fixtures except for trees for land*
70
a Valid contract
binding on both parties
71
a gross lease
if im renting a house for 1,100 a month if the hvac blows up the money comes out of the landlords money.
72
ch 3 specific liens
what does it mean when it is specific to that property and only that property./ it creates a right to foreclose
73
Resale contract is only for
"residential resales"
74
ch 4 What is the key to the metes and bounds description is what?
must end at the same place you started
75
```
ch 14-15 finance:
2 approaches -
Title theory state
no lawsuit, the trustee filed
3 parties borrower lender and trustee
Title theory to pledge property as collateral is
deed of trust
```
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lien theory
mortgage
promissory note
lender has to
main difference is how you foreclose, the
```
```
lien theory
mortgage
promissory note
lender has to
main difference is how you foreclose, the
```
76
promissory note
what you find, ‘they are negotiable means they can be SOLD. terms of the note don’t change, they’re just simply selling it.
the lender can sell it to the investor.
77
Tenancy in severalty
Although it may sound like more, this type of ownership is by one person or a corporation.
78
equity
difference with how much i owe vs how much it’s worth. how much money i walk away with if selling the house
79
to remove a tenant
the landlord, or their property manager is responsible for evicting a tenant
80
ch 2 CONDOminium ACT OF 1986
APPLIES TO ONLY "NEW CONSTRUCTION CONDOS" NOT RESALES
81
limited special warranty deed
limited time just the time that they own the property
82
consideration means contracts needs consideration to be:
contracts needs consideration to be: enforceable, meeting of the minds, offer and acceptance, and agreement between legally competent parties,
83
definite period of time
is an estate off years
84
earnest money on a sellers side
buyer = credit (moneys sitting in an escrow account somewhere)
85
what’s a short sale
owe more than property is worth
seller has no money to pay the difference so lender is agreeing to accept what’s owed on it.
the money is ‘short’
86
seller financing
you borrowed from the person not the bank because your credit sucks
87
pg 264 "Time is of the essence"
specified time 'has to be done by this date" in a contract, make sure you do it by that date
88
a VOID contract
when a crack dealer suing a using, they agreed to pay me for that hit they just took and they never paid me for it"
89
conflict between zoning and covenants
Which ever is more restrictive -
follow both.
- if mom says be home by 8, dad said 9 you follow 8:00.
90
Exclusive agency listing
Agents get paid in this type of agreement only if they sell the property. No fee is earned if the owner alone sells the property.
91
open listing
A listing agreement under which the broker's commission is contingent on the broker personally producing a ready, willing, and able buyer before the property is sold by the seller, or another broker.
The "open listing" is mostly used by people trying to sell their home by owner who are also willing to work
with real estate agents. Basically, it gives a real estate agent the right to bring buyers around to view your
home. If their client buys your home, the agent earns a commission. There is nothing exclusive about an
open listing and a home seller can give out such listings to every agent who comes around.
92
ch 3 what order do we pay liens
property taxes, and then behind that is special assessments
93
What is it call when you re- assess a value of property every 8 years?
octanial re-appraisal
94
discharge of a contract...whats the most common way?
all promises fulfilled; both agree they don't want to be bound anymore.
95
how do you convert a mill rate to a North Carolina tax rate?
Divide it by 10.
96
ch 11 property management: do leases have to be recorded?
NO.
97
where in the contract do we disclose our compensation as brokers?
we don't ever deal with compensation on a sales contract. In writing, before buyer makes an offer we do but never on a sales contract.
98
The real estate agency relationship is best described as the
broker's representing the principal.
99
ch 4 The reference to a recorded "playmat is another method of defining property in NC
most common in surban areas , because they've been subdivided
100
Exclusive-Agency Listing
A listing contract under which the owner appoints a real estate broker as the exclusive agent for a designated period of time to sell the property, on the owner's stated terms, for a commission. The owner reserves the right to sell without paying anyone a commission if the owner sells to a prospect who has not been introduced or claimed by the broker.
101
ch 4 what matters in the government rectangular survery?
actions and townships
102
ch. 10-12 travis Everette exam review: due diligence time period
time period where the buyer can terminate. There is no penalty to terminating during due diligence period. Earnest money would be refunded.
103
ch 11 what is a net lease
tenant pays everything - taxes, maintenance, insurance, rent. money is set from the landlord side of things
104
Tenancy in common
Equal or unequal undivided ownership between two or more people is what characterizes this type of ownership. If an owner dies, the deceased person’s share is conveyed to his or her heirs, not the other owners.
105
Property tax calculations and mill rate**
make sure you know how to do that for exam, not going over it in this review today the math but you will need to know that.
106
deficiency judgement
when foreclosure sales isn’t enough money to pay off the note. lender can go back and file a ‘deficiency judgement’
107
Antitrust laws prohibit competing brokers from all of the following EXCEPT
receiving compensation from both the buyer and the seller.
108
building permit
permission to build
109
amenmenment
changes the terms of an existing contract
110
ch 2 IF YOU BUY A NEW CONSTRUCTION CONDO, WAHT TIME PERIOD DO I HAVE TO CHANGE YOUR MIND TO RESIND THAT CONTRACT?
7 DAYS FROM THE TIME YOU GO UNDER CONTRACT
111
ch 12 what is the job of a property manager
2 things:
| their job is to generate income for the owner while maintaining the value of the property
112
due diligence time period
time period where the buyer can terminate and there is no penalty to terminating. Any earnest money that is held in trust account, will be refunded
113
ch 4 One square miles is
1 square miles (or 1 sq mile is 640 acres same thing)
114
2 different types of leases
estate for years and periodic tenancy
115
When one co-owner dies, property that was held in joint tenancy with the right of survivorship automatically belongs to the surviving owner (or owners). The owners are called joint tenants.
joint tenancy
116
seller = option OR
option period where buyers have right to make all the decisions
117
An easement can be terminated by
merger of titles.
118
contract for a illegal act
a VOID
119
unilateral contract
seller has made a promise that they will sell
120
ch 2 JOINT TENANCY
ALLOWS FOR SURVIORSHIP AS LONG AS THEY PURHCASED AT THE SAME TIME.
121
if i own a house i owe $150,000 selling it to her for $200,000. assume that she gets a $150,000 loan
difference is the money that she can do it for you.
122
To be valid, every deed must
be executed by the grantor.
123
A broker learns that one of the licensees under his supervision, and the owners of a listed property, have worked out a scheme to withdraw a property from the market whenever a showing is requested by any buyer who seems to be from a foreign country. What is the most important action for the broker to take in this situation?
develop stringent policies for the firm, establishing the criteria that may be used to determine which properties are shown to prospects.
124
streeet disclosure
dedication & acceptance
125
repairs in commercial leases
repairs are negotiable in commercial leases. repairs cannot be negotiable in residential leases. the land lord does repairs in residential leases
126
periodic tenancy
automatically renee themselves
127
is earnest money requirement of a contract?
no
128
A salesperson lists a property with a contract that allows for subagency and dual agency. The salesperson is
an agent to the broker and a subagent to the principal.
129
ch 4 how many steps does the developer have to take to move it from public to private?
2 steps - first step is dedication for them to be public use.
The second step is "acceptance" the states piece is acceptance" of the change. (also you must disclose this status)
130
From buyer agency :
exclusive buyer agency
dual agency
special agency
seller sub agency
sellers perspective-
| what ways can a firm deal w a buyer?
131
nc tenant security deposit act
nc tenant security deposit act controls: how MUCH money we can keep and 2nd thing act controls is HOW we USE the money.
132
voidable
what makes a contract voidable??
