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99 terms

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)