Real estate exam

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Oklahoma real estate commission

Agency Created in 1950 to administer any provisions in oklahoma license code

deed restrictions

private agreements, placed in the public record that control and affect land use.

Improvements

A term that refers to any additions to the land made by man. It includes building, roads and utilities and landscaping.

Uniqueness

Meaning no matter how identical they may appear, no two parcels of real estate are ever exactly alike: Each occupies its own unique geographical location

Appurtenant easement

Easement that is attached to and travels with the ownership of one parcel allowing the owner the use of the use of the neighbor's land

Method of annexation (real property)

not easily removable

Adaptation of real estate (real property)

Permanent addition to estate

Agreement of the parties (real property)

Stated as part of real estate in offer to purchase real estate

Special assessment

Always specific and statutory
May be voluntary or involuntary
Can be paid in annual installments over a period of years

Real estate tax lien

Specific, involuntary lien

Lis pending

Law suits pending

Mechanics lien

an involuntary lien that gives security to persons or companies that perform labor or furnish material to improve real property

Writ of attachment

Orders the sheriff to
Seize property in the possession of the breaching party that he or she owns, and
To sell the property at auction to satisfy the judgment.

Estate and inheritance tax lien

General,statutory, involuntary liens that encumber a deceased persons real property- cleared during probate proceedings

Lien for municiple utilities

Specific, equitable, involuntary lienon promptly when municipal utilities are unpaid

Corporation franchise tax lien

General, statutory, involuntary lien on real and personal property owned by the corporation

IRS tax lien

General, statutory, involuntary lien on all real and personal property held by a delinquent taxpayer

Exclusive right to sell

One broker to act as the sole agent of the seller. Broker is entitled to commission regardless of who sells property

Exclusive agency listing

One broker as sole agent to seller, but allows seller to find buyer w/o paying broker

Open listing (non-exclusive)

Seller can employ any number of brokers to sell. Seller only pays broker that finds buyer. Seller can find buyer w/o obligation to pay commission

Net listing

Excess over net from sale goes to broker as commission. (illegal in most states)

Broker protection clause

Preserves the brokers commission (within a number of days) if the seller transfers property to a buyer that was introduced by broker

Oklahoma real estate commissioner

Must be citizens of US
residents of Oklahoma for 3 years
Appointed by govenor w/ advice from senate
Paid travel expense

Fines for practicing w/o license

5,000 or the commission (whichever is greater)

Provisional sales associate

Must have 45 hours (post license) course during first year of licensure

Valid contract must include:

Voluntary agreement
Mutual agreement
Made by legally competent parties
Supported by legal value- money or love and affection
Concerned by legal act

Express or implied contract

Verbal consent by party - not enforceable

Bilateral

1. having two sides
2. made between two persons or groups

Unilateral

Of, on, relating to, involving, or affecting only one side. Can be accepted or rejected by other party

Void contract

One essential element of contract missing

Voidable contract

Legally incompetent, involves minor

Excuted contract

Completed contract

Executors contract

One or both parties still have act to perform in order to fulfill contract

Substantial performance

a situation in which a party has, in good faith, completed the major requirements of a contract, leaving only a few minor details unfinished

Impossibility of performance

When unforeseen circumstances make its impossible to fulfill the terms of a contract, in these cases, the contract is considered void.

Notation

Substutites a new contract or party for the original

Operation of law

Contract that was void from inception. (contract with minor)

Earnest money deposit

Money down- Shows buyer is serious about purchase

Escrow account

Savings where earnest money is held until closing

Contingencies

conditions that need to be satisfied before closing (mortgage, inspections)

Land contract

Buyer (vender) takes possession of property, agrees to down payment, monthly payments, pays taxes, insurance And upkeep. Seller (vendee) retains title

Lessor

Owner of real estate

Lessee

Renter- takes possession for specific period

Statute of frauds

Requires leases for more than one year be in writing to be enforceable

Reversionary right

The right of the landlord to reclaim the property after terms expire

Estate for years

Continues for a definite period. No notice is required to vacate

Estate from period to period

Agreement that continues for indefinite time frame. (month to month, week to week, year to year)

Holdover tenancy

When tenant remains in property after lease term expires. The landlords acceptance of rent is evidence of agreement

Estate of sufferance

Tenant stays without landlord consent. Landlord can treat tenant as trespasser and begin eviction process

Federal fair housing act

Requires that landlord allow a tenant with physical disability to make reasonable modifications

Americans with disabilities act

Requires that commercial properties be accessible/ free of barriers or that reasonable accommodations are provided

Assignment of lease

Created when tenant subleases property to another. Original tenant relieved of further o ligation

Sublease

Tenant leases property to another

Gross lease

Tenant pays rents, landlord pays all expenses of property; most common form of residential lease

Net lease

Lease requiring tenant to pay not only rent but also taxes, insurance, utilities and repairs

Percentage lease

Common lease for retail property; often a base monthly rent plus a percentage of any gross sales over that amount

Variable lease

A form of leasing agreement in which rental payments are based upon revenues.

Percentage lease

Common lease for retail property; often a base monthly rent plus a percentage of any gross sales over that amount

Ground lease

the landlord leases the land to the tenant, and the tenant builds improvements on the leased land.

Oil and gas lease

lease land to explore for oil and gas

Lease purchase

An arrangement in which the tenant leases property for a period of time with the intention of purchasing it.

Sale and leaseback

an arrangement whereby a property owner sells the property to an investor and immediately leases the property back from the investor.

Breach of lease

Failure to uphold or follow the terms of the lease by lessor or lessee. Lessor (owner) may begin eviction process. Lessee (renter) may claim "constructive evidence" if premises are usable

Uniform residential land and tenant act

Landlords right of entry
Maintenance of premises
Tenants protection against retaliation by the landlord
Disclosure of property owners name and addresses to the tenants

Fair housing amendments act of 1988

This Act makes it unlawful to discriminate against families in the sale, rental or financing of housing (with some exceptions in the case of housing communities for senior citizens).

Civil rights act 1866

Guaranteed equal housing rights to all citizens

Blockbusting

Illegal practice of inducing homeowners to sell their properties by telling them that a certain people of a certain race, national origin or religion are moving into the area

Voluntary alienation

Voluntary transfer of title to Real Estate property, either a gift or selling of property

Express contract

a contract statement that may be oral or written

Implied contract

a contract in which the terms are not expressly stated but can be inferred from the actions of the people involved and the circumstances

Latent defect

Hidden structural defect that would not be discovered by ordinary inspection

Promissory note

a written promise to pay a specified amount of money on demand or at a definite time

External obsolescence

Incurable depreciation caused by factors not on the subject ‎property, such as environmental, social, or economic factors. 18:330‎

Functional obsolescence

A loss in value due to conditions within the structure which make the building outdated when compared with a new building. (4 bedrooms and 1 bath, insulation, narrow stairway, etc.)

Physical deterioration

The loss in value due to wear and tear of the structure.

Involuntary lien

one imposed by the law that the owner does not freely accept

Voluntary lien

a lien created intentionally by the property owners action, such as when someone takes out a mortgage loan

Escheat

The reversion of property to the state or county, as provide by state law, in cases where a decedent dies intestate without heirs capable of inheriting , or when the property is abandoned

Eminent domain

the right of the state to take private property for public use (law)
Condemnation- process to take property (act)

Life estate

An interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons

Joint tenancy

Property owned by two or more people- property transfered by right of survivorship -property taken by severalty

Easement by necessity

occurs when land does not have access to a street or public right-of-way and is landlocked

Characteristics of real estate

Immobility
Indestructibility
Uniqueness

Accession

Acquiring trade fixtures after lease ends (i.e. restaurant equipment)

Situs (location)

Preference for specific area
Convince
Reputation
History

Blockbusting

Illegal practice of inducing homeowners to sell their properties by telling them that a certain people of a certain race, national origin or religion are moving into the area

Voluntary alienation

voluntary transfer of title to RE property. either a gift or selling of property

Latent defect

Hidden structural defect that would not be discovered by ordinary inspection

Promissory note

a written contract with a promise to pay a supplier a specific sum of money at a definite time

Real estate broker

Special agent

Square foot method

Appraisal method of estimating building cost; multiplying number of square feet in the improvement by cost per square foot of recently constructed similar properties (most common)

Quantity survey method

IS USED TO DETERMINE CONSTRUCTION COST BY ADDING THE COSTS OF ALL INDIVIDUAL COMPONENTS OF THE STRUCTURE TOGETHER ( LUMBER, BRICK, SHINGLES, ETC.), THEIR CURRENT PRICES AND THE LABOR HOURS REQUIRED TO INSTAL THEM

Unit in place method

Estimating the replacement cost of a structure based on the construction cost per unit of measure of individual building components, including material, labor, overhead & builders profit.

Index method

The appraisal method of estimating building costs by multiplying the original cost of the property by a percentage factor to adjust for current construction costs

4 ways to create a lien

Voluntary
Involuntary
Statutory (by law)
Equitable

4 Government powers

Police power
Eminent domain
Taxation
Escheat

Metes and bounds

Legal description that begins at a well marked point and follows the boundaries around the tract, back to the place of beginning

Pectangular

Government survey

Lot and block

A method of land description frequently used after land has been subdivided into building lots; also referred to as the recorded plat method. (Must have a plat map to find the property)

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