Real Estate Flashcards as of 4/2006
Terms
undefined, object
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- property
- rights or interests in the thing owned
- real property
-
immovable
bearing wall
not leasehold estates - fixtures
-
incorporated into land
not cost
not time of attachment - trade fixtures
- business office
- run with the land
-
apurtenant
easements, water co., covenants and minerals
no separate conveyance - personal property
- hypothecated, alienated, become real property
- fee simple estates (fee estate) (estates in fee)
-
indefinite duration
freehold
most interest
not free of encumbrances
inheritance - fee simple defeasible
- no alcohol
- life estate, property is leased
- owner dies, lease terminates
- less-than-freehold estates (leases)
-
lessees
not necessary to sign
6 months - estate for years
personal property, chattel real - sublease
-
transfers possession
can sublease or assign if not mentioned - quiet enjoyment
- paramount
- abandonment
- tenant leaves voluntarily
- percentage lease
- based on gross receipts
- secruity deposit
- furnished or not
- estate of years
- fixed period
- license
- personal, revocable
- title vestings
- tenancy = method
- severalty
- individual
- joint tenancy
-
free of unsecured depts
TTIP
Time
Title
Interest
Possession
Can't be willed - jjtenancy in common
-
can convey separately
unity of possession - community property
- husband & wife
- community property - agreement to sell
- unenforceable
- cloud on title
- single woman married
- quiet title action
- remove a cloud
- alienation
-
convey
opposite of acquisition - eminent domain
-
for public use, taken by the government
individuals don't have
owner must be paid just compensation - police power
- zoning
- escheat
-
individual cannot use
state recieves when no will - accretion
- natural causes
- avulsion
- dam breaks
- probate sale - commission
- set by court
- intestate succession
- no will
- deeds - purpose
- transfer interest
- grant deed
-
executed when signed
not necessary to be recorded - quitclaim deed
-
conveys rights of grantor
no covenants - deed essentials
-
granting clause
legal competance of grantor
not acknowledged
delivered and accepted - constrcutive notice
-
given by recording
first to record or possess gets property - acknowledgement
- employee without interest
- encumbrances
- limits title
- easements
- encumbered
- prescriptive easements
-
no confrontation with owner
can easily be terminated for non-use - termination of easements
- dominate tenemant records quit claim deed
- appurtenant easements
- buyer has same rights
- confirmed by
- quiet title suit
- private restrictions
-
15,000 square feet
grantor or developer - public restrictions
-
public health, safety, morals and general welfare
one lot = variance - changes cna be intiated by
- owner, subdivider, government
- commercial to residential
- down zoning
- multi-family zone
- R-3
- encroachments
- sue neighbor for trespass
- liens
-
a charge imposed on real property
trust deed (mortgage) - general lien
- all property (everything you own)
- promissory notes
- evidence of debt
- amortization
- liquidation
- level payment
- payment applied to principal increases
- negative amortization
- payments do not cover interest
- GPAM loan
- defers some principal payments
- interest rates affected by
- not unemployment
- simple interest
- home loans
- variable interest
- rate can increase or decrease
- effective interest rate
- rate paid
- nominal interest rate
- rate specified in note
- negotiable instrument
- not a mortgage
- straight note
- no principal payment made
- balloon loan
-
partially amortized
entire balance due - holder in due course
- no knowledge of defects
- discounting
- selling for less
- default
- foreclose for $15k, full amount
- more than one borrower
- jointly and severally
- trustor
- signs the deed (borrower)
- beneficiary
-
loans money
consent for consolidation & new restrictions - right to sell
- trustor to trustee
- terminated
- reconveyance deed
- court sale
-
one year redemption period
trustor possesses the property - trustee's sale
-
3 months before publishing
right of reinstatement
most expedient - deed in lieu of foreclosure
- lender assumes junior liens
- request for notice protects
- beneficiary of second loan
- lender's basic protection
- borrower's equity
- priority
- recorded first
- release clause
- releases portions of the property
- assume
- relieves seller
- subject to
- seller's liable, buyer's not liable
- subordination clause
-
future loans have priority
benefits trustor - acceleration clause
- unpaid sum due
- open-end
- borrow additional money
- beneficiary statement
- gives current balance
- prepayment penalty
- trustor making advance payments
- mechanics liens
- verified and recorded
- priority of mechanics liens
-
beginning of construction
earlier than recording
could impair trust deed - notices for mechanics liens
- completion, cessation, non-responsibility
- lis pendens
- may affect title
- lis pendens effective until
- judgment rendered or lawsuit dismissed
- execution
- court order to sell
- injucntion
- court order to stop
- chain of title
- important when decidingt to issue title insurance
- abstract of title
- written summary of documents
- preliminary report
-
seller is trustor
remove mechancis lien - standard policy of title insurance
-
most buyers obtain
no survey or on-site inspection - standard title policy protects against
-
forgery
improper delivery - extended title policy
- covers improvements on adjoining land
- ALTA policy
- includes a survey
- exclusions to title policies
-
zoning
no policy covers everything - where can title be searched
- county clerk, county recorder, federal land
- real estate law
- commissioner promulgates rules and regulations
- illegal acts
- district attorney prosecutes
- misrepresentation
-
obvious, konwlege, caused
no expenses on income property - blind ad
- no broker's name
- misleading advertising
-
misleading map
move right in - major repairs - secret profit by non-licensee
- no cause for action
- referral fees
- both broker and sales person
- gifts
-
microwaves are okay - reveal to all
$50 is okay - commingling
- funds from broker's own property
- not a member
- not a REALTOR
- salesperson as independent contractor
- broker still liable for contract
- unlicensed assistant
-
broker must read advertising
must be supervised on the Internet
both guilty if solicts buyers or sellers - manage property
- broker
- loan broker laws
- disclosure given to borrower when signed
- advertisement
- not 1-800-for-a-loan
- desk cost
- total expenses/# of sales persons
- company dollar
- income minus commission
- trust fund account
-
separate trust funds
any employee - ethical practices
- honesty and fairness
- recovery account
- only pay recovery account plus interest
- selling trust deeds
- advertising must include interest rate and discount
- can sell mobile homes
- only if registered
- must remove signs from mobile homes
- within 48 hours
- mobile homes notice to transfer
- within 10 calendar days
- expired real estate license
- can be renewed within 2 years of expiration
- temporary 150 day license
- deliquent child support
- advance fee contract
- no guarantee of sale or lease
- fair housing
-
dept. of fair employment & housing
different prices - money damages
show same homes
no gender or ethnic quotas
can refuse to answer - economic theory
- lost interest on equity is a cost of home ownership
- leverage
-
$300,000
borrow the maximum - appreciation
- trustor
- prices decrease
- value of money increases
- seller's market
- prices rise
- impact real estate
- consumerism, land use controls
- GNP and employment rise
- income rises, home sales increase
- lenders
-
portfolio risk management - concerned with all
individual savings
(financial deregulation) pay any rate of interest - insurance companies
-
large loans
work through mortgage companies - savings and loan associations
-
most funds in real estate
primary source - mortgage companies
- sell in secondary market
- private lenders
- junior loans
- secondary mortgage market
- resales marketplace
- FHLMC
- maintains secondary market
- federal reserve system increases reserves
- decreases loan activity
- federal reserve tight money
-
more second trust deeds
sellers carry back a second - FNMA
- not a demand source for money
- LTV
- lower ratio, higher equity
- a loan commitment
- result of income, borrower and property
- construction loan
- interim
- take out loan
- long term
- debt-income ratio
- loan qualifying tool
- mortgage loan
- collaterlized by real property
- mortgage yield
- investor's interest return
- lender minimize
-
substandard loans
degree of risk most important - late payment
- MORE THAN 10 days
- 100% loan
- protected by appreciation
- amortization tables
- monthly payment
- warehousing
- collecting loans
- FICO score
- credit history of borrower
- security interest
- creditor's interest in debtor's property
- discount points
- percentage of loan amount
- document preparation charges
- loan origination fee
- truth-in-lending
- not agricultural
- purpose of TIL
- meaningful disclosure by lender
- APR
- cost of credit
- advertising - only APR is used
- other disclosures not required
- right to cancel
- residence
- conditional installment sales contracts
-
legal title - vendor
security device
transers equitable title - default, quitclaim deed
- signed by buyer (vendee)
- loan insured by
- FHA or private insurer
- FHA
- protets lender against default
- VA
-
no down payment
cannot be rental property - Cal-Vet
-
land contract
department of veterans affairs - insurance
-
promise of reimbursement for damages
neither gain nor lose - escrow
- California financial code
- instrcutions executed by
- buyer, seller, third party
- closing statement
-
buyer debit - purchase price
credit seller - prepaid taxes - prorations
- not unsecured loan
- impounds
- recurring costs
- fire insurance
- neither gain nor lose
- purpose of escrow
- terms are met
- two termite reports
- get instructions from buyer & seller
- escrow can
- call for funding of loan
- report to IRS
- escrow
- move in early
- seller's written permission
- release disputed funds
- instructions from all parties or court order
- RESPA: 1-to-4 family residential dwellings
- required
- uniform settlement statement
- no charge
- buyer can require
- specific lender
- good faith estimate
- must be furnished
- Real property transfer disclosure statement given by
- transferor, even if sold "as is"
- Real property transfer disclosure statement must reveal
-
all known defects
not repairs - Real property transfer disclosure statement amended statement
- buyer can rescind
- licensee can never
- fill out seller's portion
- Alquist-Priolo Act requires disclosure
- nearby earthquake fault lines
- Alquist-Priolo zone extends
- 1/4 mile wide along fault lines
- bilateral contracts
- diligence
- executed
- completely performed
- voidable
-
binding until rescinded
duress
menace or threats
not illegal purpose - legal essentials of a valid contract
- NOT money, performance or writing
- offer and acceptance
- must have for real estate contracts
- capable parties
- minors can acquire
- consideration
- valuable, good, sufficient, adequate
- statute of frauds
- if not to be performed within one year must be written
- specific performance
- not by broker
- listings
- biliateral employment contract
- agency creation
-
reveal as soon as possible
for any period of time
employment contract
find purchaser, accept deposit
payment of consideration is not required
not voluntary offer
terminated by completion - oral agreements
-
commission permissable
broker would sue broker - lease on duplex
- broker is agent
- subagent of listing broker
- duty to seller only
- fiduciary obligations
-
licensee
integrity, loyalty, honesty, confidentiality - present all written offers
-
at same time
unless frivolous or express instructions - seller fires broker
- liable for damages
- broker owes buyer
- fair and honest deal
- material facts
-
must reveal
leaky roof
septic tank - rescind - puffing
- exaggerated features or benefits
- broker promises seller to find house
- civil suit for damages
- agent promises to advertise and does not
- actual fraud
- protect confidential information
- after listing expires
- deposits
- may be anything
- seller
- deposit belongs to seller
- hold deposit check or accept promissory note
- must inform seller
- conflict between buyer and seller
- interpleader
- commissions
-
communicate acceptance
if not shared - civil suit
cancels, owes both - commission after term of listing
- protection period clause (safety clause)
- liability
- damages if acts in excess
- fraudulent misrepresentation
- discipline, civil, criminal
- types of listings - exclusive
- must contain specific termination date
- types of listings - exclusive agency
- owner sells, no commission
- types of listings - exclusive right to sell
-
pay commission
no procurring cause
between seller & broker - offers terminated by
-
withdrawal, gets refund
death of buyer
refection by offeree
for any reason - counteroffer
- offeree becomes offeror
- buyer defaults, deposit is
- divided between seller and agent