Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
RE Study Guide
NC RE Study Guide
| Question | Answer |
|---|---|
| Appurtance | Legal right that goes along with the property |
| Riparian | granted to owners of land along a river, stream or lake has unrestricted rights to water use own land that borders non-navigable waterways, own the land under the water to the exact center of the waterway, in navigable rivers land owned only to the bank |
| Littoral Rights | Land bordering oceans an large navigable lakes that have a tide, unrestricted use of water, own adjacent land to the mean high water mark, land below owned by government |
| Foreshore | Strip of land between high and low tide lines belong to North Carolina |
| Accretion | increase in land from deposits of soil by the water, owner entitled to new land |
| Reliction | water recedes or disappears |
| Erosion | gradual wearing away, owner can lose land |
| Fixtures | fixtures total circumstances test items listed in listing agreement that are fixtures |
| IRMA | Intention, relationship, method of annexation, adaption to real estate |
| Estates | fee simple absolute, fee simple defeasible, life estate, conventional or pur autre vie |
| Freehold estates | indeterminable length of time |
| Fee-simple estate | inheritable |
| Defeasible fee estate | inheritable |
| Pur Autur vie | estate for the life of another with remainder or reversion (inheritable) |
| Life estate | ordinary conventional life estate with remainder or reversion (not inheritable) |
| Leasehold | exist on property in addition to a freehold estate when property owner has rented the property to a tenant |
| Four types of leas house estates | estate for years, estate from year to year, estate at will, estate at sufferance |
| Estate for years | Automatic termination after a definite period of time |
| Estate from year to year | Automatic renewal after a definite initial period, until terminated by either party with require notice |
| Estate at will | Terminated by either party at any time with no required notice |
| Estate at sufferance | Landlord must evict illegal holdover tenant |
| Fee simple estate | highest form of ownership, complete ownership, passes to heirs |
| Fee simple absolute | no limitations, can do what they wish as long as no violation to public land use regulations, deed restrictions or the rights of others, highest form of ownership |
| Fee simple defeasible | can be lost if don't obey deed restrictions |
| Fee simple subject to condition subsequent | some actions the new owner, must not perform if they do former owner retains a right of re-entry and former owner can retake possession through court proceedings does not automatically revert to original owner |
| Fee simple determinable estate | requires a specific activity or land use if not ownership automatically reverts back to original owner or their heirs, no lawsuit necessary |
| Life estate | freehold estate in land limited to the life of the owner or other designated person |
| Pur autre view | owned for the life of a third person known as the measuring life |
| Remainder interest | Grantor names someone other than the grantor to receive title when life estate terminates |
| Reversionary interest | grantor does not name a remainderman then ownership returns to the grantor when life estate terminates |
| Severalty | One Owner |
| Tenancy in common | undivided interested usually equal (can be unequal) can acquire at different times, usually not husband and wife, can transfer without others signing |
| Tenancy by the Entirety | Only husband and wife, each own 100%, both must sign when sold divorce changes to tenants in common but legal separation doesn't, automatic right of survivorship |
| Joint Tenancy | usually shared equal, each can sell, of one sells new owner becomes tenant in common, must acquire at same time |
| Townhouse | Own land underneath (footprint) do not stack vertically, no cancel period, own entire unit and half of party wall, common areas owned by homeowners association |
| Condominium | no land underneath, can stack vertically, 7 days to cancel, own enclosed airspace, common areas owned by tenancy in common |
| Time-share | 5 or more separated periods, 5 year period (at least), 5 day cancellation (without penalty), 10 days developer keeps money in trust, 30 days to refunds, $500 fine to developer (per violation) |
| Cooperative | owns share of stock in the corporation, has a proprietary lease to the unit |
| Easement appurtenant | personal use of your land by your neighbor, giving the easement is the servient tenement receiving the easement is dominant tenement |
| Easement in gross | can be personal easement in gross would be granting an easement to someone other than your neighbor to cross your property, typically don't run with the land. Easement appurtenant typically runs with the land. |
| Easement by necessity | by implications of law, cannot be landlocked |
| Easement by prescription | without approval of owner, must use for 20 years, prevented by giving permission |
| Easement by condemnation | acquired for a pubic purpose through the power of eminent domain, must be compensated |
| Terminating an easement | reason is gone, holder of easement buys land, release of the right, abandonment, non-use of prescriptive, adverse possession, by destruction, nonrecordation, lawsuit (quite title), excessive use |
| General Lien | Judgments, personal property tax liens, state and federal tax liens |
| Specific Lien | mortgage and mechanics liens |
| Ad Valorem Taxes | tax amount varies depending on value of property, reappraised every eight years, called octennial appraisal, county or city may make adjustments every four years, governed by the machinery act |
| Mills | equals thousand |
| Special Assessment | Levied by county or local municipalities to cover cost of public improvements such as new sewers, sidewalks, curbs or paving to the real property that benefits from them, special assessment lien #2 on list of exceptions to Conner act |
| government survey system | ranges, tiers, sections, 36 sections in a Township, each section is 1 sq. mile, 640 acres per section |
| adverse possession | Open, Continuous, Exclusive, Adverse, Notorious/hostile OCEAN without permission |
| General Warranty deed | greater protection than other deeds, best deed for grantee, also greatest liability, bound by basic covenants or warranties; they are legal owner, free of liens, title will be good against third parties, warranty forever |
| Special deed | also called limited warranty deed, warrants received title to land and wasn't encumbered at the time, banks use |
| Quickclaim deed | also called non-warranty deed, lease protection, no warranties, might convey an easement, could re-convey equitable title back to seller, might convey nothing |
| Conner Act | Must delivery to pass title |
| Zoning | Know difference between legal and illegal non-conforming use |
| subdivision representation | Restrictive/Protective covenants, any owner can bring lawsuit, don't need to prove damage |
| Working with buyer | check zoning and deed restrictive covenants if they want to use for specific reason |
| Streets in Subdivision | If not gate then public road, but may not mean the government is taking care of maintenance, owners are responsible if government isn't, check with DOT |
| Lead | property built prior to 1978 lead hazard reduction act lead disclosure signed by everybody |
| Agency Law | General Agent one specific task, special agent buyers/sellers agent, universal all things for them |
| Open Houses | Not first substantial contact unless they come up to you can try to tell you their person info |
| Oral buyer agent contract | express of terms of that agreement, must tell them agreement is non-exclusive, must make agreement into written before first offer is made or can't represent anymore |
| Fiduciary duties | to clients fiduciary LOADS and customers honesty and fairness disclosure of material facts |
| Residential property disclosure act. | Sellers have to provide the statement must be provided before or no later than time of offer. If after, buyer has three day period from receipt or no later than contract formation the buyer can cancel contract. Sellers can mark no representation, |
| Willful misrepresentation | takes place when agents who have actual knowledge of a material fact deliberately misinform |
| negligent misrepresentation | takes place when agents unintentionally misinform concerning a material fact because they do not have actual knowledge |
| willful omission | takes place when agents have actual knowledge of material facts and a duty to disclose but fail to disclose |
| negligent omission | takes place when agents do not have actual knowledge of a material fact but should reasonably should have known |
| Agency Contracts | Oral buyer non-exclusive, can be oral until first offer, written must have a specific begin and end point, property management only contract that auto renews, can't put in limited liability statement of mess ups of broker |
| Listing contract | written from beginning, find ready, willing, and able buyer even if no closing you earn comm. |
| Anti trust | can't be set between firms because of antitrust laws price-fixing. Who pays you can be buyer or seller depending on agreement |
| Married Couples | Both must sign listing or not valid |
| DNC List | Exceptions, if done business with them within 18 month, if they contact you through ad have 3 months to contact them, if only been on DNC list for last 30 days, email CAN SPAM some restrictions, no restrictions on mail |
| Residential sq. ft. | heated, living area, finished, directly assessable to house, must have all 3 to count |
| Employment Taxes | General business situations, employee or independent contract? Depends on degree of control of employer |
| Oral buyer agent contract | Open-ended unless otherwise state, written has to have specific start and end date |
| Contract breaches | Specific performance, compensatory damages, liquidated damages, contract specifies or formula is provided to figure out damages, earnest money is liquidated damages |
| Contract Law | 3 steps, written offer, written acceptances, and communication of acceptance back to offeror, because of statue of frauds contract has to be in writing |
| contracts | real estate commission defines rules and guidelines of what should be in the contract and the Bar Association and the realtors actually write the forms, can't put commission or liability disclaimer in contract |
| never in offer to purchase | anything about our commission. Commission must be included in the agency agreement – listing agreement. |
| offer to purchase | contract and rules surrounding them |
| not in contract | pick which one isn't in a contract |
| backing out | must notice by 5 or no earnest money still won't get due diligence fee, if seller breaches or house destroyed can get earnest money back |
| Contract | must bring up issues that need to be in contract or can be held liable |
| Offers | Reasonable amount of time, can specify time, counter offer rejects and cancels initial offer |
| Contract formation | 3 steps, written offer, written acceptances, and communication of acceptance back to offeror, because of statue of frauds contract has to be in writing |
| Option to purchase | optionee has no rights yet |
| Equity | amount of value of property that is free of dept, appreciation, payments made, improvements |
| Discount points | 1 point |
| Promissory note | evidence of debt, deed of trust or mortgage property up as collateral |
| Clauses | Acceleration Clause all due now if late on payments, unpaid property taxes, Subordination clause swap positions |
| Foreclosure | right of redemption, 10 day upset bid |
| Loans | Conventional federal government not involved, open end, not taking |
| PMI | Private Mortgage Insurance on conventional loan, insures extra risks up to 80% before need coverage |
| FHA Mortgage | high LTV 95-97%, higher loan amount, insuring mortgage, bank/lender sets rate |
| Adjustable-rate mortgages | known as ARMS. Usually based on some sort of an index, payments can fluctuate, typically there are payment caps typically amount of time specified, controls on limits of frequency can be made, caps on interest rate or amount of monthly payment |
| Blanket Mortgage | on 2 or more properties |
| Package Loan | personal and real put up for collateral |
| Wrap around loan | buyer gives note/deed of trust that wraparound the sellers mortgage |
| regulation Z | truth in lending, disclose what cost to get into a loan, disclose all credit terms, LOW payment ISN'T a trigger term |
| Closing statement | go over closing statement, not checking attorney's fee, pick something there's no way to verify |
| Debit Seller | Debit seller, Personal property taxes, existing loan, deed prep, excise tax(revenue stamps), recording deed, broker's commission, delinquent real/personal property taxes, tax liens |
| Debit Buyer | Debit buyer; Homeowners, policy, loan origination fee, financing documents prep fee, deed recording, title insurance, survey, title exam, attorney fee, advanced escrow deposits, interim interest on buyer's new loan, loan discount points |
| Sale of rental property | who gets the rent money, property sold on 20th then 21st on the buyer gets rental money, double entry, debit - seller and credit buyer |
| Closing process | attorney puts money in trust account, lender, court house to check title, record deed, release money to all parties |
| Appraisal | good for 1 day, certified appraiser |
| Three methods of appraisal | income capitalization, sales comparison, cost approach |
| Cost approach | land, improvements, $110*3,000 |
| Depreciation | loss of value due to any reason, physical, functional, economic, economic always incurable |
| Income Approach | IRV circle NOI/Cap rate * value of property |
| Landlord tenant area | residential rental agreement must be habitual or fit to live in |
| Tenant security deposit act | dictates what you can do with the security deposit, what you can spend it on, as well as how much you can charge, accounting done within 30 days, final in 60 days |
| Types of leases | Fixed Rental lease, Residential, tenant pays a fixed amount of rent but none of property charges |
| Percentage Lease | Commercial lease, Tenant pays a percentage of the gross or net income as rent |
| Net Lease | Commercial lease, Tenant pays rent plus all or some of the property charges |
| Graduated Lease | Commercial lease, Tenant pays rent, which increases at predetermined dates |
| Ground Lease | commercial lease, Tenant typically pays rent on land and builds on it, for 99 years |
| property management agreement | have to be in writing, responsibilities are to find renters, evaluate them, market the property, deal with maintenance, be familiar with these, need to know what owners do |
| Upfitting | before tenant moves in, remodeling |
| Operating expenses | debt is not operating expenses |
| Property Manager | can do credit, criminal background check, can't ask about race or ethnicity |
| Fair housing and tenancy | as property manager best practice for evaluating tenants, setting criteria if owner and live in property can discriminate but can't advertise that your discriminating still can't discriminate against race |
| Income tax | adjusted basis, amount realized gain or loss |
| Investing | Chapter 22, equity, cash flow, leverage using dep, appreciated |
| License Law | Commission rules, trust accounts, who have to be licenses, LLBEANS, and STAPLES |
| Unlicensed Assistant | hiring an unlicensed assistant – difference between sales and property management in sales cannot show property but under property management can show property to rent. |
| Broker's License | Provisional, BIC, Post licensing requirements - 90 hours, in 3 years if not inactive |
| RE Commission | Can revoke or suspend license cannot fine or imprison |
| CE | 8 hours per year, is CE goes inactive June 30th, miss post licensing inactive, don't pay expires July 1 |
| Reporting | 10 days of address change, 60 days convicted of crime not if only charged and not convicted |
| Blind ad rule | if broker or firm have to say name of broker, name, broker or realtor |
| Offers | must present immediately and all at one time |
| Shopping an offer | disclose terms with competing parties, let others know of terms unless have permission |
| Trust Money | if provisional must give to BIC, BIC must put in trust account within 3 banking days |
| BIC | Responsible for all acts of provisional broker, advertising, agency disclosure, trust account, make sure everyone pays their fees, doing their post licensing and CE |
| Time-share | 5 or more separated periods, 5 year period (at least), 5 day cancellation (without penalty), 10 days developer keeps money in trust, 30 days to refunds, $500 fine to developer (per violation) |
Created by:
ahendrix1977
Popular Real Estate sets