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PA Real Estate National > Untitled Deck > Flashcards

Untitled Deck Flashcards

(86 cards)

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1
Q

What was the primary purpose of the Civil Rights Act of 1866?

A

To protect all citizens from racial discrimination, particularly individuals of African descent

This act aimed to ensure equal rights and opportunities for formerly enslaved individuals.

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2
Q

Which amendments were made to the Civil Rights Act to include additional protections?

A

Amendments included provisions for handicap and familial status, protecting people with disabilities

The act was further amended in 1974 to prohibit discrimination based on sex and gender.

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3
Q

Define ‘power of attorney’.

A

A legal document that grants one person the authority to act on behalf of another in legal or financial matters.

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4
Q

What are fiduciary duties?

A

Obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care

Privacy is not considered a fiduciary duty.

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5
Q

What is a construction loan?

A

A short-term loan used to finance the building of a property, typically requiring a detailed project plan.

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6
Q

What does the loan-to-value ratio (LTV) express?

A

The ratio of a loan to the value of an asset purchased.

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7
Q

What is cash flow?

A

Money available after deducting all expenses

Positive cash flow is necessary to profit from an investment.

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8
Q

What is a blanket mortgage?

A

A mortgage that allows a borrower to finance multiple properties under one loan.

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9
Q

What is a graduated mortgage?

A

A mortgage that allows for lower initial payments that increase over time.

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10
Q

Fill in the blank: A _______ mortgage allows the seller to absorb an existing loan to allow the buyer another mortgage.

A

wraparound

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11
Q

What does proration refer to in real estate transactions?

A

The division of expenses at the time of closing between the buyer and seller in proportion to the actual use of property.

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12
Q

Define ‘freehold ownership’.

A

Ownership that grants the owner full rights to the property and land.

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13
Q

What is joint tenancy?

A

Co-ownership with rights of survivorship, complicating matters in cases of divorce or death.

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14
Q

What happens in a tenancy in sufferance?

A

The tenant continues living on the property once the lease has expired until a written notice is given to vacate.

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15
Q

What is the concept of escheat?

A

Property reverts to the state when an owner dies without heirs.

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16
Q

What is an acceleration clause?

A

A clause that allows lenders to demand full repayment of a loan if the borrower defaults.

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17
Q

What is the privacy act of 1974?

A

Mandates federal agencies disclose records, impacting documentation in real estate transactions.

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18
Q

Define ‘tenancy by entirety’.

A

A form of joint ownership for married couples, providing rights of survivorship.

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19
Q

What is a qualified fee estate?

A

A type of property ownership with conditions that can lead to termination of ownership rights if breached.

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20
Q

What is the role of title insurance?

A

Protects a lender from loss due to disputes over ownership of a property and defects in the title.

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21
Q

What is a chain of title?

A

The chain of deeds and documents used in transferring title of land from one owner to another.

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22
Q

What is a lis pendens?

A

A legal notice that a lawsuit concerning real property is pending.

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23
Q

What does the term ‘habendum clause’ refer to?

A

The estate granted within the lease, detailing rights and interests of the property being transferred.

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24
Q

What is a settlement statement?

A

A document summarizing all the fees incurred by the lender and borrowers during the settlement of a loan.

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25
What is the purpose of a notice of default?
To notify a borrower that they have missed a repayment deadline.
26
Define 'easement appurtenant'.
An agreement that allows a property holder to cross another person's land, transferable with ownership rights.
27
What is an encumbrance?
A non-possessory interest in property or a restrictive covenant burdening the property.
28
What is a shortfall in financial terms?
A situation where the amount of funds required to meet an obligation is not available
29
Define easement appurtenant
An agreement that allows a property holder to cross another person's land
30
What is an encumbrance?
A non-possessory interest in property or restrictive covenant burdening the title
31
What is homeowners warranty insurance?
Insurance taken out as protection against malfunctions associated with the acquisition of a new home
32
What are studs in construction?
Vertical beams that frame the house; they form or position walls
33
What are eaves?
The lowest section of the roof that extends into the sidewalls
34
Define joists in a building
Long beams that span the piers of a foundation offering support to the floor or ceiling
35
What is sheathing?
The exterior layer of a house, serving as a covering structure for the roof, floor, and walls
36
What is the purpose of flashing in construction?
Materials used to cover joints where two or more types of material meet to prevent water leaks
37
What does a fuse do in an electrical circuit?
Acts as a conductor designed to melt under high current to break the circuit
38
What is the minimum amp requirement for a home?
100 amps
39
How many square feet are in an acre?
43,560 square feet
40
What can house rules prohibit in a coop/condo?
Having loud parties
41
What is the role of architectural review boards?
Responsible for maintaining the aesthetic view of a town
42
What is a lease break?
When a tenant breaks a rent before the expiry date without legal reasons
43
Define lease back
An arrangement that allows a seller to lease a property from a purchaser after selling it
44
What is a lease option?
A lease that gives the tenant an option to purchase the property within or at the end of the lease
45
What is a forced air system?
An HVAC system that uses air ducts and vents for both heating and cooling
46
What is economic obsolescence?
The loss of property value caused by factors beyond the control of the property owner
47
What are offsite improvements?
Outside amenities that maximize the use of property and increase its value
48
Define capital improvement
Alterations made to a property to increase its market value
49
What are fixtures in real estate?
Items considered real property because they are permanently attached to the physical property
50
What is chattel?
Personal property, which can be either mobile or immobile
51
Define accessory building
A separate building from the main house used for a specific purpose
52
What does percolation refer to in real estate?
The downward movement of water through soil
53
What is an HO3 policy?
A homeowner policy that covers property and liability
54
What does HO4 insurance cover?
Renter's insurance that protects the insured's belongings from losses
55
What is title insurance?
A policy that protects a lender from loss due to disputes over ownership of a property
56
What does a British thermal unit measure?
Furnace or air conditioner capacity
57
What is effective age in real estate?
An estimate of a property's age based on utilities and physical wear and tear
58
Define abstract of title
A brief summary of the history of a title, including all title transfers and legal actions
59
Who reforms the percolation test?
The Department of Health
60
What roles do assessors play in property taxation?
Estimate the value of real property for taxing purposes
61
What is leverage in real estate?
Using borrowed money to purchase a property
62
Who is a grantor in a real estate transaction?
The individual required to sign a deed for the transfer of ownership
63
What is the waiting time for a real estate agent to renew a revoked license?
One year
64
What is Regulation Z?
A full disclosure of all credit terms for consumer loans under the Truth in Lending Act
65
Define riparian rights
The rights of a person whose property is adjacent to or crossed by a river
66
What is the abstraction method in real estate?
A value estimating process using similar properties to determine land value
67
What is a special agent?
A real estate agent employed for a specific task
68
What is the role of a broker in real estate?
Acts as an intermediary for brokers and lenders
69
What is community property?
Income earned by one spouse during marriage
70
What is a notice to cure?
Given when a tenant violates lease terms, allowing them to correct the issue
71
How long must an asset be held to be categorized as long-term capital gains?
One year
72
What are considered operating expenses?
Repairs, depreciation, and payroll
73
Who can receive partial tax reductions on property taxes?
Disabled, veterans, elderly, farmers, gold star parents, and star programs homeowners
74
What happens if a salesperson's commission is not paid?
They must resort to the broker for payment
75
What is the length of time allowed for depreciation for residential property?
27.5 years
76
What are the essential elements of a contract?
* Legal purpose * Competent parties * Offer and acceptance * Consideration * Consent
77
Define passive income
Income generated from rental property with little daily input
78
What is a condop?
A building divided into two condos, one for residential units and one for commercial use
79
What is a general agent?
Authorized to handle a principal's affairs in more than one specific area
80
What is co-broking?
The relationship where agents work together in the best interest of their clients
81
What is the role of the Department of Building?
Oversees that code restrictions are followed and renovations are done by licensed professionals
82
What are discount points?
Fees paid to the lender at closing in exchange for a reduced interest rate
83
What is not an essential element of a deed?
Signature of the grantee
84
Define void in legal terms
Obsolete, unenforceable terms not bound by its terms
85
What is vicarious liability?
When a superior is held accountable for the actions of subordinates
86
What does it mean when real property is converted into personal property?
It involves severance, either actual or constructive

PA Real Estate National (1 decks)

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