Test Questions Flashcards
Who needs a license?
Anyone who represents the pubic and collects a fee, needs a license
What is capital gains?
If you sell something for more than your “basis” in the item, then the difference is a capital gain, and you’ll need to report that gain on your taxes. Your basis is usually what you paid for the item.
What is the amount of capital gain exclusion for a single person?
$250,000
What is the amount of capital gain exclusion for a married couple?
$500,000
What does the FHA do?
Insure the lender
What does VA do?
Guarantee
What is earnest money?
Is evidence of the buyers intention to carry out the terms of the contract in good faith.
What is a bilateral contract?
Both parties promise to do something; one promise is given in exchange for another. Real estate contracts are bilateral because the seller promises to sell a parcel of real estate and convey the property title to the buyer, who in turn promises to pay a certain sum of money for the property.
What is a unilateral contract?
This is a one-sided agreement. One party makes a promise to induce a second party to do something.
In IL are brokerage contracts, bilateral or unilateral.
unilateral (pg268)
What is the Homestead Exemption
It protects a person from creditors. page 41
What is the amount of the Homestead Exemption?
single: $15,000
married: $30,000
What is an encumbrance?
Debts, liens, easements, encroachments, licenses. page 42
What is the IL Statue of Frauds?
States that all contracts must be in writing to be enforceable in courts. page 268
What is ownership of severalty?
The title is held by one person
what is co-ownership?
title is held by two or more people. not divided into a specific third or half
what is trust ownership?
a third party holds the title.
what is tenant in common?
more than two people own the property and each tenant holds an undivided fractional interest in the property. they can hold 1/3 or 1/2 interest in the property.
List 8 aspects of tenant in common?
- if no fractions are stated, the tenants are presumed to have equal shares
- owners can sell, convey, mortgage, or transfer their individual interest without consent of other co-owners
- no individual tenant may transfer ownership of the entire property
- when on co-owner dies, the interest passes to the co-owner’s will, heirs, or living trust
- in IL, tenant in common can be conveyed in single deed.
- when a single deed is used, lack of description means all co-owners hold equal, undivided shares
- In IL, a separate deed can be issued for each person
- in IL, the law presumes that two or more owners are tenants in common if the deed does not state specifically how the title is held.
what is joint tenancy aka rights of survivorship?
Each tenant holds undivided fractional interest. ALL SHARES MUST BE EQUAL.
What are 6 aspects of joint tenancy?
JTWRS
- cannot bypass to heirs
- upon death of a joint tenant, the interest of that tenant goes directly to other tenants.
- a will has no effect here. joint tenancy bypasses probate
- with each successive joint tenant death, the surviving tenants.
- joint tenancy continues until one owner remains
- the last survivor takes title in severally and has all the rights of sole ownership, including right to pass property to heirs.
what are the four unities that create joint tenancy?
- possession - undivided right to possession
- interest - equal ownership
- time- acquire interest at the SAME TIME
- title- all interest listed on the same document
what is tenancy by entirety?
married couples
what does assignment or assignment mean?
to transfer ownership
