-
to be valid and enforceable, a contract must be
have a legal objective
-
when an easement lies on a property outside of and adjacent to real property the property benefited is the
dominant estate
-
in what manner do corporations hold title in real estate
severalty
-
the right to use another persons property that is temporary revocable and does not run with land is a
license
-
which of the following are true about easements, they cannot be revoked by the owner of the
servient tenement
-
an estate less than freehold is known as
leasehold
-
sue for specific performance?
when seller defaults on a sales contract
-
main provision of the statute of frauds is
contracts to be in writing
-
primary purpose of recording real estate sales is to
serve notice of the buyers interest in property
-
when is a sales contract consummated ?
when the deed for the property has been delivered and accepted
-
can undesirable deed restrictions ever be removed?
yes through court action
-
a lease would normally terminate with the lessor
interfering with the lessee's right of quiet enjoyment
-
how to determine priority of a lean is
the date the lien was recorded
-
to convey by will is to
devise
-
why is a deed recorded
to give constructive notice
-
land and all is permanently attached to it is referred to as
real property
-
rights in real property that are held for less than a lifetime are called
personal property
-
lease on a store is defined as
personal property
-
right of the state to assume ownership of property when abandoned is called a
escheat
-
rights in real property that are held for less than a lifetime are called
personal property
-
trade fixture is considered
personal property
-
landscaping for a house is an example of
fructus naturales
-
a right, privilege or improvement associated with land is an
appurtenance: runs with the land
-
riparian rights,
navigable body of flowing water... low water mark.....
-
item of personal property which is movable and not associated with real property is
a chattel personal
-
leases and options are examples
of chattel real
-
a freehold estate which is inheritable is a
fee estate
-
an estate only limited by the GOVT rights are
fee simple
-
indefeasible fee estate is known as
fee simple
-
least restricted form of ownership is a
fee simple
-
another name for a qualified fee estate is a
defeasible fee '
-
main type of qualified fee estate is a
fee simple determinable
-
all life estates originate from and return to a
fee estate
-
a life tenant can sell mortgage or otherwise convey a
life estate
-
when a life estate is granted the grantor's interest is a
fee estate
-
wife right to receive a share of husband's property is upon his death is
dower
-
another name for a qualified fee estate is a
defeasible fee
-
indefeasible fee estate is known as a
fee simple
-
a life tenant may not sell the
fee simple title
-
during the life of an estate less than freehold the landlord holds
reversion interest
-
another name for a periodic estate is a
estate from year to year
-
lease which may be terminated by either party at any time is a
estate at will
-
another name for an estate at will is a
tenancy at will
-
a leasehold estate that has specific starting and end dates is
estate for years
-
the two basic forms of ownership are called
sole and concurrent ownership
-
the form of concurrent ownership which requires the four unities of possession interest time and title
joint tenancy
-
acronym for 5 major characteristics of joint tenancy is
PITTS
-
form of concurrent ownership that tenants hold separate title to undivided interests,
tenancy in common
-
concurrent ownership only for spouses is
tenancy by the entirety
-
IN PA forms of concurrent ownership are
joint tenancy, tenancy by the entirety, tenancy in common
-
IN PA forms of concurrent ownership are
tenants in common
-
only unity required by tenancy in common is the unity of
possession
-
an easement which affects only one property is called an
easement in gross
-
an easement in gross held by an individual is a
personal easement
-
if a easement is created by a written agreement between landowner and easement holder it is
a private grant
-
creation of an easement by continuous and hostile possession is called a
prescription
creation of easements popcorn
-
when the need for an easement no longer exists
vacation
-
tenancy by the entirety may not be terminated by a partition
-
partition in kind is accomplished through subdivision of
servient estate under an easement in gross is held by the owner of the land which the easement exists
-
when two or more persons hold title as tenants in common:
they hold an undivided interest in the property unities of time title and interest need not be present
-
ad valorem and special assessment tax liens that attach to
real property
-
lien which attaches to all property are owned by the lienee is called a
general lien
-
the legislation which establishes priority of liens in most states is
race statutes
-
liens created by the operation of law are called
involuntary liens
-
in a condominium development the land and the walls are
common property
-
law known as the horizontal property act provides for existence of
condominiums
-
legislation enabling condominiums provides for subdividing real property into
air lots
-
in a timesharing development the form of organization which gives the buyer ownership in a unit along with others is a
fee simple ownership
-
in a condo development owners own:
fee title to units, share of landspace between walls in a separate property
-
a lien in favor of a person who has furnished
which liens have the highest priority real property tax liens
-
indefeasible is known as a
fee simple
-
another name for a qualified fee estate is
defeasible fee
-
fee simple determinable =
condition stated in the deed comes into being or terminated
-
a freehold estate which is not inheritable called
life estate
-
when a life estate is granted, the grantor's interest in the property is a
fee estate
-
indefeasible fee estate is known as a
fee simple estate
-
a fee estate which is subject to limitations other than the govt rights is a
qualified fee estate
-
freehold estate not normally inheritable is a
life estate
-
main type of qualified fee estate is called a fee simple determinable
simple determinable
-
if a specific form of concurrent ownership is not specified it is presumed to be a
tenancy in common
-
concurrent ownership limited to spouses is
tenancy by the entirety
-
two types of concurrent ownership that can be separated by partition include
joint tenancy and tenancy in common
-
from of concurrent ownership based on concept that each spouse has equal interest in property acquired is
community property
-
when landowner reserves or retains an easement in a deed,
reservation
-
deficiency judgment lien is categorized as a
statutory
-
method of legal description of property which uses a reference to a subdivision map is called description by
recorded plat
-
GOVT rectangular survey system is based on use of principal
principal meridians and base lines
-
a summary of all instruments affecting title and all encumbrances in
abstract of title
-
2 requirements for giving constructive notice of land ownership are g
physical occupation of the property or public recording
-
status and condition of title under the torrens system is
determined the courts
-
purpose of recording deeds is to give constructive notice
-
first step in establishing torrens land title is to file for
quiet action in court
-
any encumbrances to a title under the torrens system must be entered on
the certificate of title
-
getting property under the torrens system requires a
title certificate
-
owner, mortgage are the most common types of
title insurance
-
title insurance whose coverage decreases as the mortgage is paid down is called the
mortgagee's title insurance
-
owners title insurance remains in effect only as long as teh owner or the heirs have
interest in the property
-
sum of all facts on which ownership is founded on is called the
title
-
to have a valid deed in most states the grantee must be of s
sound mind only
-
warranties as to title status are provided by
covenants in the deed
-
warranties in a deed affect the certainty
that a title is sound
-
deed covenant which assumes the grantor will bear the expense of defending the title against the claims of others
is the warranty of title
-
deed often used by an agent of principle such a trustee or executor of will the special warranty deed
-
bargain and sales contain an implied interest in property but no warranty as to title statues
quitclaim not warranty as to the title
-
agent of principle( only against encumbrances by grantor)=
pecial warranty
-
gaining title to additional land is accrettion
accrettion
-
distribution of an intestate decedent's estate is governed by state laws called succession
(the laws of descent)
-
1 gift of real property in will knows as a
2 legacy is a gift of
personal
devise
-
owner of property may reclaim land lost by avulsion
-
largest to smallest subdivision,
block and lotrecorded plat description
-
,marketable title to real property is
free of reasonable doubt to ownership
-
instruments such as deeds are recorded in order to provide
constructive notice
-
covenant which grantor warrants that he/she is owner of the property and has the right to sell is the
covenant of seizin
-
by means of the covenant against ecnumbrances grantor warrants
all encumbrances are mentioned in the deed
-
in order to convey title to real property a deed must be
delivered and accepted
-
type of lease used by retail establishments is a
percentage
-
provisions for increases in rent with an index lease are contained in an
escalator clause
-
type of lease for long term commercial leases are
index
-
the transfer of some of the rights and interest in the leased property is called
subletting
-
when a leased property is sublet the new tenant is called the
sublessee
-
lease option is
two separate contracts
-
in the second through 5 years of lease security deposit may not exceed o
one month's rent
-
first step in land development is
land acquisition
-
future growth is regulated by basing local zoning ordinances on a
master plan
-
non conforming use occurs when a zoning regulation is implemented after a
property is built
-
permission to be exempt from a specific requirement within a pre existing zoning category is provided through
a variance
-
changing the zoning to a less active or intensive is is called
downzoning
-
private land use controls can be initiated through
deed restrictions
-
deed restrictions are also restrictive covenants
deed restriction which prevents owner from selling is illegal
-
if a zoning ordinance and a deed restriction have different restriction which one takes precedence,
the more restrictive
-
a clause in the lease that allows a landlord to gain judgement for such costs are delinquent rent and atty fees is a
a confession of judgement
-
in a real estate contract the consideration given by the buyer is a
promise of purchase price
-
anything of monetary value when promised in a contract is called
valuable consideration
-
under the 1988 amendments act, the maximum amount of civil damages is
50,000
-
a transaction is exempt from the PA human relations act if it involves the rental of an owner occupied
two unit dwelling
-
offer and acceptance are required in order to have
mutual agreement
-
a contract which does not have legal objective is
void
-
contracts made by persons already declared incompetent are
void
-
in PA unless the contract states otherwise, if property is destroyed before the deed has passed
the buyer obligated to go through with the sale
-
in the case of an option contract for real property a broker normally earns a commission
when the option is exercised
-
land contract, contract for deed and contract for title are all names for an t
installment contract
-
after an installment contract is closed, the legal title is held
by the seller
-
when real property is purchased using as installment contract the property taxes are paid and interest on loan payments is deducted for tax purposes
by the buyer
-
written agreement wherein a seller agrees to sell and a buyer agrees to buy real estate on the terms and conditions set forth therein is
called a contract of sale
-
deeds cannot be assigned
radon= lung damage
-
prepayment clause in promissory note
always included
-
under the title theory approach to hyphecation of mortgaged property. the legal
title is held by the lender
-
a licensee representing a seller is required to advise the seller than under the real estate seller disclosure act the seller is required to
disclose ALL material defects in the property
-
an agreement between a rental listing referral agent and a prospective tenant must include
the specifications desired by the prospective tenant
-
***escalation
clause in a mortgage that allows lender to increase payments or interest rates if certain events take place is an escalation clau
-
*under the intermediate theory approach to hypothecation of mortgaged property,
legal title is held by the borrower
-
\borrower in mortgages= the mortgagor
granting clause is for lender
alienation, optional***
-
clause in a mortgage which waives a priority of recordation is called a
subordination
-
a provision that limits the liability of the buyer to the balance of the loan is knows as the
nonrecourse provision
-
in a trust deed the two clauses which create the primary difference from a mortgage are the
power of sale and reconveyance clauses
-
an amortized loan that also included in each payment an amount to cover taxes and insurance
is called a budget loan
-
a loan from the seller to the buyer to finance all or part of the purchase price of real property is called a
purchase money loan
-
negative amortization is possible with
adjustable rate and graduated payment loans
-
a mortgage in which seller prepays interest on the buyers behalf is called
a buydown loan
-
ginnie mae provides funds by
guaranteeing securities issued by to others
-
under a title theory approach to hypothecation of mortgaged property, security for the note is
provided by the lender holding legal title
-
under lien theory approach to hypothecation of mortgaged property,
security is provided by lender holding a lien
-
under the intermediate theory approach to hypothecation of mortgaged property, the legal title
is normally held by the borrower*
-
clause used by the lender to prevent assumption of loan is the
alienation clause
-
due on sale clause is the same as the alienation**
prepayment penalty in note are optional
-
escalation clause
allows lender to increase payments or interest rates if certain events take place
-
prepayment clause is always included
certain events take place, "escalation" lender to increase payments******
-
document completed by lender that shows how much a loan remains to be paid is a called
certificate of reduction\\
-
document in which a borrower verifies the amount still owed on a loan and interest rate is ***
a called certificate of estoppel
-
a clause in mortgage that waives priority of recordation is called a
subordination clause
-
provision that limits the liability of the buyer to balance of the loan is known as the
non recourse
-
foreclosure without a court action requires a mortgage
contain a power of sale clause
-
type of foreclosure associated with a trust deed is a
non judicial foreclosure
-
a provision that limits the liability of the buyer to the balance of the loan
is the non recourse provision
-
type of loan which only interest is paid during the term of the loan is
called a term loan
-
with term loan the principal is paid at the end of a term
term loan is also a straight loan
-
the maximum amount the interest rate on an adjustable rate loan can increase in one adjustment period
is called the periodic interest rate cap
-
negative amortization is possible with
adjustable rate and graduated payment loans**
-
real estate loan which also includes a provision for an installment on some article of personal property
is called a package loan
-
negative amortization is possible with adjustable rate and graduated payment loans
those who bring borrowers and lenders together but don't make loans themselves are balled mortgage brokers
-
largest number of loans made by private lenders are made by sellers
short term loans made primarily by commercial banks include commercial and construction loans
-
the federal home loan mortgage corporation is
freddie mac
-
the FHA's primary purpose is to insure loans
the amount of loan discount refers to the actual amount of charged to the borrower
-
in comparing the effects of interest rate and discount points on the lender's yield on a loan one discount is equivalent to 1/8%
the number of discount points refers to a percentage of the loan amount
-
loan to value ratio is equal to
the amount of a loan divided by the smaller of the sales price or appraised value***** \
-
with conventional loans without private mortgage insurance the loan to value is limited to 80% (usually)
at closing title insurance is required by the lender
-
variable closing costs are
transfer tax, origination fee, lenders title insurance
-
FIXED closing costs
are credit report fee, appraisal fee, survey
-
NOT a fixed closing costs are
transfer taxorignation feelenders title insurance
-
the prepayment clause in a promissory note may provide for any of the following except
accelerating the due date of the note.
-
an acceleration clause in a promissory note permits the lender to
Advance the due date on a note if payments are not made as scheduled
-
the covenant which will not appear in a mortgage but will appear in a general warranty deed is the
covenant against encumbrances
-
a mortgagee is permitted to inspect mortgaged property to ascertain that all covenants are being adhered to
by the covenant of re-entry
-
a mortgagor may be prohibited from allowing a purchaser to assume his/her mortgage loan if the mortgage contains
, a due on sale clausean alienation clause
-
depending on state law when a mortgagor defaults on a loan the mortgagee may seek
relief through Foreclosure\
-
when a notice of lis pendens is recorded it is a
notice of pending legal action, and a quasi lien on a property in the notice
-
payments on items of personal property such as kitchen appliances are part of the monthly payments under
a package loan
-
adjustable rate loans can result in negative amortization
they contain caps on increases in the interest ratekeyed to a mutually acceptable index
-
when fraud occurs the injured party has the option to rescind the contract
in the case of a mistake in material fact resulting in no mutual agreement the contract is void
-
once an assignment is made the person primarily responsible for performance under the contract
is the assignee.
-
a contract can be assigned
when executory only
-
to apply for a time share salesperson license an applicant must complete a course
of 30 hours
-
when a home buyer assumes an existing loan and the lender releases the original borrower it
is called novation
-
after an installment contract is closed the legal title is
held by the seller ***
-
when real property is purchased using an installment contract the property taxes are paid and the interest on loan payments is deducted for tax purposes
by the buyer
-
who can create and own a qualified association?
licensees affiliated with the same broker
-
rental listing referral agreements must state the the agent
is not a real estate broker or salesperson
-
a broker must deposit escrow rents received for property management into a
rental management account
-
to apply for a time share salespersons license an applicant must complete a course
consisting of 30 hours of instruction
-
investor is considering an income producing property valued at 400,000 using a capitalization rate of 8% how much could the investor afford to pay for the property if a cap rate to 10% is used income
= .08 X 400,000 = 32,00032,000/ .10 = 320,000
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