RE Contracts Ch. 2 Property

  1. Double check the lot and block on a computer system, such as _____ or _________ if you have access.
    • -RDI
    • -Real-Comp
    • check the legal description on the sellers deed.
    • call title company if you need help
  2. If you are a cooperating agent for a buyer trying to submit the contact as an offer, be careful  about trusting the listing broker to get the right legal description for you.
  3. Why is just putting the street address not sufficient enough for legal description?
    -because streets can be renumbered or renamed.
  4. What is all on Property description?
    • -lot, block, city, county, address, 
    • -zipcode, sudivison, section
  5. If a house is not a platted subdivision, what can you use for the description?
    -metes and bounds description; found on last deed of property; attach it to an exhibit to the contract.
  6. Permanently installed and built in items are mostly personal property.
    false; they are fixtures
  7. Define fixture
    -an item that was once personal property but which was adapted or attached to real estate in a manner intended to make it a part of the real estate.
  8. Personal property is governed by ______________ whereas, real property is governed by __________ and ____.
    • -Uniform Commercial Code (UCC)
    • -special laws and cases
  9. Fixture items are part of the real estate so title is conveyed by a deed, but personality, such as furniture, is conveyed by a ___________.
    bill of sale.
  10. What are the three tests for a fixture?
    • -annexation; the method of physical attachment, such as nails, bolts, glue, mortar, or welding
    • -adaptation; is to create or fashion an item or locate it in such a way that it must be considered part of the real estate; customer built counter
    • -Intention; is the objective desire to make the item of personalty a part of the real estate.
  11. What is MARIA on a fixture?
    • M; Method of attachment
    • A; Adaptation to the property; go with surrounding fixtures
    • R; Relationship to the parties
    • I; Intention of the parties
    • A; Agreement between the parties
  12. The intent of a fixture being a fixture or keep as personalty is stated in the _______.
  13. Accessories
    • -are not fixtures, but they are fixture like items associated with the property
    • -**general rule is that an accessory to property passes with the title to the property when it is sold.
  14. Methods with dealing with fixtures and accessories
    • -seller must decide what to sell and what to keep; licensee should tour house and take note of any fixtures; ceiling fans and chandeliers; must go with the house unless otherwise agreed; contract has a big list of fixtures
    • -permanently installed and built in items; list
  15. Accessories tend to be in one of the two categories:
    • -curtains, shades, blinds, draperies
    • -electronic controls
  16. All Equipment and Appliances
    • -can be troublesome
    • -have to decide if it is a fixture or personalty
  17. Curtains, rods, draperies, shades, etc. are what?
    • -accessories that go to the buyer
    • -if a seller wants them it should be stated in contract or preferably removed before showing
  18. Electronic Controls
    -controls for satellite dish system, garage door openers, etc., go with the property; make sure they work
  19. Mailbox keys
    -go idea to change keys
  20. Chandeliers
    -are defined as by the TREC contract as fixtures; seller should be made aware that if it is in the contract or available for viewing it will be sold.
  21. Swimming pool maintenance accessories
    • -hard to define and contract doesn't really define them
    • -should be removed if not wanting to sell
    • -discuss with buyer what they will and will not get
  22. Landscaping
    • -grass, trees, flowers, and items associated with the landscaping, including birdbaths, stepping stones, fountains, bricks, and timber edging
    • -if not wanting to be sold, should be removed or listed under exclusions.
  23. Artificial fireplace logs
    • -accessory under contract, along with fireplace screens
    • -if not willing to sell remove from viewing or list in contract
  24. Stoves
    • -are accessories
    • -if meant to be kept, put in exclusion or remove
    • -***Put it on the MLS as exclusions
  25. Door Keys
    -buyers should always rekey all locks upon move-in
  26. If a fixture or accessory is not included it should be listed as a personalty in paragraph ____.
    11; most lender prefer the objects to be removed
  27. Personalty
    personal property
  28. What is best to do with personalty or fixtures that the seller does not what to sell?
    • -remove them
    • -list them in exclusions or para 11
    • -if staying in house, mark with tags and list in the MLS lisiting
  29. A buyer can sue for a deceptive trade practice if the seller or agent does not remove or list that a fixture is not to be sold.
    true; a mishaps with a fixture can come out of a licensee's commission
  30. Writing exclusions into the contract
    • list items seller will retain
    • -describe them in clear and unmistakable terms, including location.
    • -if changes occur, have both parties initial and make new copy
  31. What happens if you run out of room on the exclusions lines?
    • -create an addendum with lists and describes the other fixtures that are not to be sold with the property.
    • -The addendum should be mention in para 22 as well as para 2 on the lines
    • -entitle the addendum with an exhibit number or letter
  32. Removable fixtures (dishwasher, ex) can have their own financing.
    true; mechanic's lien, can be foreclosed on; most likely takes priority over loan on property
  33. What are some examples of removable fixtures?  How are they dealt with?
    • -burglar alarms, hot tubs, window air conditioners, air conditioning compressors, built in kitchen items (appliances), hot water heaters, etc.
    • -if the seller is not done making payments, then the loan must be payed off at closing, seller must continue payments (take with them), or convince the buyer to pick up payments.  Lender does have a say in how this fixtures are dealt with.
  34. What type of personal property is considered troublesome?
    washer and dryer, microwave, unattached counter-top kitchen equipment, stand alone refrigerator or freezer; do NOT list in special provisions para 11, list in Non-realty Items Addendum and mention the addendum in para 22
  35. Built-in refrigerators are fixtures.
    true; stand-alones are considered personal property
  36. If the seller wants to sell personal property with the house, this should be mentioned to the buyer, why?
    -in case buyer does not want it, than the personal property must be removed
  37. Lenders do not like including ___________ in paragraph 11, because buyers can scam in that area.  Lenders prefer this to be handled or scratched out before closing
    personal property
Card Set
RE Contracts Ch. 2 Property
property contracts