Exam notes Flashcards
(179 cards)
1
Q
Real Properties
A
Immovable, land, fixtures, appurtenances, and bearing wall
2
Q
Not Real Property
A
leasehold estates, emblements (crops), chose (personal property), picked fruit
3
Q
Personal property
A
movable, alienated, hypothecated, become real property, crop sold under contract, trade fixtures, chattel real
4
Q
Fixtures
A
incorporated into land, affixed to land, become real property, not incidental
Test for a fixture: MARIA
5
Q
MARIA
A
M – method of attachment
A – adaptability of the item
R – relationship of the parties
I – intention
A – agreement
6
Q
Appurtenances
A
run w/ the land, easements, covenants, water company stock, not fixtures
7
Q
Encumbrance
A
affects or limits title, not insurance
8
Q
Non-money encumbrance
A
easement (same rights as seller), confirmed by quiet title suit (legal action), terminate easement w/ quitclaim deed from dominant tenement, prescription gives right to use (easement), encroachment (sue neighbor for trespass).
9
Q
Money encumbrance
A
Lien (borrowing), judgment (trouble), mortgage, trust deed
10
Q
Freehold
A
Indefinite ownership
11
Q
Estate
A
degree, quantity, nature, extent of interest
12
Q
Fee simple estate
A
most interest, indefinite duration, maximum rights, leave to heirs (inheritance), not free of encumbrances
13
Q
Fee simple defeasible
A
No alcohol
14
Q
Life estate
A
base on duration of someone’s life, estate in reversion, estate in remainder, lease is valid for a long as life tenant lives
15
Q
Estate for Years
A
definite beginning and ending point, lease store building for 6 months
16
Q
Quitclaim deed
A
used to transfer the interest that a person may have in a given piece of real estate to another person
17
Q
Owner
A
Lessor
18
Q
Tenant
A
Lessee
19
Q
Police power
A
zoning, planning, promote public health, safety, morals, general welfare, legal non-conforming use is grandfathered in
20
Q
Escheat
A
Assets revert to state
21
Q
Subdivision map act
A
Cities, counties
22
Q
Planning commission
A
does not regulate ordinance
23
Q
Master plan
A
planning, zoning districts, streets, seismic
24
Q
before burning trash
A
local air district
25
local building codes
minimum standards
26
conflict between codes
higher standards
27
subdivided land laws
5 lots or more
28
Deed restrictions are private restrictions
Set by developer or grantor
29
Violating a condition
penalties are more severe
30
Most restrictive restriction
restricts
31
Quiet enjoyment
possession, paramount title (person above you)
32
Give public report
Anyone, anytime
33
Public report
does not include reasonable values
34
Building residential subdivision
acquisition, approval, development
35
Rescind approval of new subdivision:
desist and refrain order
36
Gets negative declaration
no harm to environment
37
Liquidated damages limited to
amount of deposit
38
Condominium
undivided interest in common, separate interest in airspace
39
Owners of condo, pud, co-op
common interest in airspace above common areas
40
Seller provides buyer:
bylaws, CC&Rs, financial statement
41
Infill developer
build on underutilized lot in populated area
42
Smart growth:
ecology friendly
43
Brownfield economic development initiative:
redevelop contaminated properties, a HUD (housing and urban development) program
44
EPA superfund sites:
clean up toxic waste, collection of statutes, establish liability
45
Special categories of land use
timeshares interests, resort developments, housing for the elderly
46
Water beneath surfaces:
percolating waters
47
Pump out and use underground waters:
overlying owner
48
Moving watercourse like river:
Riparian owner
49
Water w/ shoreline like lake:
littoral owner
50
Taking water from public stream:
appropriation
51
Water safe for drinking:
potable
52
Description of Agency:
agent represents principal
53
fiduciary duties:
utmost care, integrity, honesty, loyalty
54
acting in fiduciary
capacity law of agency
55
Agency law
civil code
56
Licensee generally acts
as fiduciary
57
principal
appointed an agent
58
client
principal
59
customer
owed honesty and fairness
60
agent
broker
61
salesperson responsible to
broker
62
Relationship of loyalty and trust:
trustee and beneficiary
63
Broker may not:
remain silent concerning material facts
64
Not legally proper to
keep client's secrets
65
single agency
agent is client oriented
66
dual agency
one broker for buyer/seller, knowledge and consent of both, cannot tell a buyer that seller will sell for less, in house sale w/ two sales associates
67
power of attorney
a form of agency
68
attorney in fact
must record power of attorney
69
written agreement
best way
70
signed listing agreement
special agent
71
by ratification
already acted as agent, actions accepted
72
agency not established by
voluntary offer, subornation
73
consideration
not required to compensate
74
broker works for free
gratuitous agent
75
unlicensed electrical work unknown to licensee
innocent
76
subagency
duty to seller only
77
seller's agent
agent for seller only, no fiduciary duty to buyer, not reveal confidential information
78
Listing agent
is a seller's agent
79
present multiple offers
at the same time
80
dont present offer if
frivolous or express instructions
81
failed promise
civil suit for damages
82
promises to advertise and doesn't
actual fraud
83
misrepresentation
discipline, civil, criminal
84
present all written offers
until close of escrow
85
Fiduciary duties
to buyer only
86
buyer agency
requires buyer's consent, no fiduciary duty to seller
87
Accepting unauthorized deposit
seller’s agent becomes buyer’s agent for that one act
88
Damages from broker
if acts in excess
89
buyer's agent can
present offer to seller and seller's agent
90
disclose
as soon as practicable, (DEC: disclose, elect, confirm)
91
Agency disclosure form
residential sales and leases for more than one year
92
Unlicensed investor
secret profit
93
licensee must disclose
relationship acting as principal
94
Termination of agency (7)
1. Completion of task
2. Mutual agreement
3. Principal revokes agency, liable for damages
4. death of broker
5. listing expires
6. object of agency is destroyed
7. owner files for bankruptcy
95
Termination not possible
By estoppel
96
Value: Analysis of facts (appraisals) (3)
a. Present worth, ability of one commodity, desirous persons
b. Not a fact
c. (value needs to satisfy someone)
97
Market value (3)
a. Not cost
b. Most probable price
c. Market price
98
Essential elements of value
DUST
99
DUST
DUST: Demand, utility, scarcity, transferability
100
Improved value of land
land improvements
101
Appraiser's main concern
Marketability and acceptability
102
business cycle
prosperity, recession, depression, expansion
103
Neighborhood cycle
development, stability, decline, revitalization
104
ethical for apprasier
disclose interest
105
Appraiser most interested in
date price was agreed upon
106
appraisal good for
given date
107
unaccepted methods
felony
108
Certified general license does commercial places
not assessed value
109
license for strip mall
certified general
110
narrative appraisal report
no financing available, type of value - statement of purpose
111
Fee appraiser
self employed charges a fee
112
Highest and best use (5)
1. first step for vacant land
2. deduct demolition
3. great net return
4. site analysis
5. interim use
113
Appraisal objective
support sales, price
114
Why real estate has value
maximum use of resources
115
Principal of substitution (3)
a. No prudent person will pay more
b. Use, design, income
c. Lowest price preferred
116
Increase in value (appraisal) (3)
a. Unearned increment – population
b. Over time – appreciation
c. Two or more units under common ownership – plottage
117
Maintenance of value
conformity
118
Principal of contribution
Adding a swimming pool, effect on net income
119
principal of regression
Nearby substandard property
120
Market data approach (Comparison) (9)
a. Sales prices of comparable homes
b. Similar and recent comps
c. Principal of substitution
d. Adjustments needed – no two properties identical
e. Subtract features from comparable
f. Hardest part adjusting for differences
g. Licensees use this
h. Houses and Land
i. Limited in inactive market and rapidly changing economic conditions
121
Cost (replacement) approach (4)
a. Special purpose properties
b. Cost new, minus depreciation, plus land
c. Upper limits of value
d. Replacement – same utility
122
Cost (reproduction) approach
a. Reproduction – exact replica
b. 1910 house reproduction
123
Cost Approach concepts (4)
a. Quantity survey, square foot, unit in place
b. Better for new – not old
c. Not original cost to build
d. Cost of smaller house – more per square foot
124
Income approach (capitalization
Convert income into value
125
Depreciation
a. Loss in value from any cause
b. Causes: physical, functional, economical
126
Obsolescence
a. Impairment of desirability
b. Not wear and tear
127
Functional obsolescence
a. Within property lines
b. Two houses, same costs, different values
128
Economic (external) obsolescence
a. Outside property lines
b. Not outdated kitchen
c. Most difficult to cure
129
Economic life
Building earns sufficient income
130
Effective age
15yr old house appears to be only 6 years old
131
Gross rent multiplier
Sales prices/ gross monthly rent
308,736
132
Bureau of real estate appraisers
Issues licenses, investigates complaints
133
TILA enacts to
disclosure credit terms in meaningful way
134
Party responsible to disclose
creditor furnishes disclosures
135
exemption from Reg Z for all except
residential loans
136
Right to rescind for loan on
existing principle dwelling
137
If rate placed in advertisment
must be effective rate
138
two most critical facts to be disclosed
finance charge and annual percentage rate
139
Effective interest rate vs nominal interest rate
effective is actually paid
Nominal rate is not
140
Triggering terms in advertise
discloses APR and all terms
141
If loan advertisements contains only APR
no additional disclosures are needed
142
established for what purpose
accurate closing cost information
143
RESPA applies to
a. Borrowers, buyers, sellers receive accurate closing information
b. Federally related loans 1-4 owners
144
Loan estimate must be provided
3 business days after application
145
Lender can charge for closing disclosure
nothing
146
Points used in financial services
adjust investor yields
147
Paying and receiving referral fees
agents cannot do
148
APR is higher than
state rate of loan
149
Liens definition
charge imposed
150
Created by recording
trust deed or mortgage
151
Lien is an
attachment
152
seller carries back second
specific lien
153
judgment lien
involuntary general
154
Property tax lien
involuntary specific
155
IRS Lien
involuntary general
156
Trust deed
voluntary specific
157
Mechanic liens: priority earlier than recording (3)
a. Beginning of construction
b. Verified and recorded
c. Failure to pay for materials
158
If completion recorded
60 days to file
159
if completion not recorded
90 days to file
160
Negotiable instrument
not mortgage
161
Promissory note
evidence of debt
162
Trustor
borrower
163
Trustor signs
note and trust deed
164
Beneficiary
Loans money
165
Power to sell
Trustor to trustee
166
Trustee
fiduciary to beneficiary
167
Services of trustee
trustee's sale and reconveyance deed
168
Reconveyance deed
request for full reconveyance, 21 calendar days from request
169
After NOD is recorded
4 months to sale
170
After date of sale published
21 days to sale
171
Reinstatement
5 days before sale
172
At sale winner gets
trustee's deed
173
Subordination clause
rights of beneficiary are secondary
174
Construction loan funds
released after lien period
175
Mortgage contract
mortgagor and mortgagee
176
Court (judicial) foreclosure
Deficiency judgment
One year right of redemption
177
__ acres in a section
640
178
__ feet in acre
43560
179
__ feet in ile
5280
