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Real Estate Exam

Terms in this set (72)

Physical characteristics of land
immobility, permanence & uniqueness
Agency
means acting on behalf of another in expectation of compensation
Principlal (client)
the individual who hires & gives authority to the agent of representing his or her insterest
Puffing
when an agent makes non-factual statements about the property that could reasonably be recognized as exaggeration.
agency
gives the agent the authority to do one particular activity for the client
Sub-agency
is created when one broker, usually the listing broker, allows other brokers to assist in selling of the property.
Innocent misrepresentation
occurs when the agent provides information or makes a statement that she believes is true, but is not
universal agency
gives the agent authority to do anything for the principal that the principal could normally do for himself
The Laws of Agency
defines the rights & duties of the principal & the agent.
Dual Agency
when the broker represents 2 principals in the same transaction.
Fraud
the intentional & successful employment of deception in order to cheat or deceive another person & to thereby gain some dishonest advantage.
severalty
when ownership is held entirely by one person
Permanence of investment
A property has great value as raw land, but has an existing building and other improvements. The removal cost of these improvements & their impact on value is an example of Permanence of investment.
Township
a piece of property which is divided into 36 sections of one square mile each is township
Economic land characteristics
are those that give value: scarcity, improvements, the performance of investment and situs
4 methods to legally describe property:
metes and bounds. government rectangular survey system, lot block and subdivision and reference to other documents
Metes and bounds
is the method of land description which identifies a parcel by specifying its shape and boundaries.
Metes
is a term of measurement indicating distance.
Bounds
stands for compass directions
Two forms of metes & bounds description
1) by monuments
2) by geographic reference
metes and bounds by monument
is the early predecessor of the current system of metes and bounds. This system is a narrative style, as if someone were to start at a fixed point and walk around the property's boundaries. Each corner of the land is identified by an object, such as a bolder, stream, tree or neighbor's fence. where no natural marker exists a man made marker can be used such a concrete slab or an artificial post. widely used before land was as valuable as it is today.
metes and bounds land description by reference to a permanent reference
marker or benchmark. From this point or the point of beginning each boundary line is identified by both length and direction.
Benchmark
typically a round bronze disks set in concrete are ground level by the US Geological Survey or the US Coast & Geodetic Survey
Bearing
the direction of a boundary line is measured by this.
a bearing is the situation or direction of one point or object with respect to another. The angular direction is shown in degrees, minutes and seconds. abbreviation 60 12' 32" would be read as 60 degrees, 12 minutes and 32 seconds.
Metes and bounds using benchmarks, point of beginnning, bearing, degrees minutes and seconds
is the system of land description most used in the U. S. today, excluding a small number of territories.
Government Rectangular Survey System
This system of land description was initiated by Thomas Jefferson in 1785 to provide a faster simpler method for describing large land masses in the newly annexed territory states
Determination of Value (D_U_S_T )
Demand_ Utility (usufulnesss/satisfy a need), Scarcity (supply vs demand), Transferability
ad valorem
amount of tax varies in accordance with the value of the property being taxed B49
escheat
forfeiture of a decedent's property to the state in the absence of heirs
forfeiture of a decedent's property to the state in the absence of heirs
eminent domain
the right of government to take private property for public use
spot zoning
Zoning a parcel of land different from the surrounding area.
nonconforming use
An improvement that is inconsistent with current land use zoning regulations.
deed restriction
Provisions placed in deeds to control how future landowners may or may not use the property.
plottage
Combining two or more parcels of land with a resulting increase in total value.
reproduction cost
The construction cost at current prices of an exact duplicate of the subject property.
arbitrage
the practice of buying and selling equivalent goods to take advantage of a price difference
anticipation
the act of predicting (as by reasoning about the future)
blanket mortgage
a mortgage secured by two or more properties
curable
Depreciation that can be fixed at reasonable cost.
naked title
title that lacks the rights and privileges usually associated with ownership
title that lacks the rights and privileges usually associated with ownership
power of sale
allows a mortgagee to conduct a foreclosure sale without first going to court
statutory right of redemption
period of time AFTER tax sale to redeem property by paying delinquent taxes. usually 6 months after the sale
Law of Agency
That body of law that governs the relationship between principal , agent and third parties.
usury
a practice of lending money at exorbitant rates
latent defects
a defect that is not obvious or cannot readily be ascertained
unilateral contract
A contract that results when an offer can only be accepted by the offeree's performance;
promise in exchange for an act
open listing
any hired broker can sell property for a commission but if owner sells no commission payable
option listing
Listing with a provision that gives the listing broker the right to purchase the listed property
index lease
allows rent to be increased or decreased periodically based on a stipulated index.
gross lease
Tenant pays rents, landlord pays all expenses of property; most common form of residential lease
tenancy of sufferance
tenant remains in possession after a lease has expired. Becomes "hold over tenancy"
Tenant (hold over tenant) continues to hold possession after expiration of the lease w/o consent, - can be evicted anytime;
if landlord accepts rent payment, converts to periodic tenancy
Lien theory
A Louisiana system the gives title to the borrower during the loan and gives the lender a lien.
Assumption
When the buyer takes over the payment but both the seller and the buyer are liable for repayment
Mil
one-tenth of one cent or $0.001 and is used in some states to compute property taxes.
vendor's privilege
granted to the seller for the unpaid sales price. The vendor's privilege has special rights granted to the seller that are not given to non-vendor (lenders other than the sellers) when granting a mortgage
After-Acquired Doctrine
LA Law states that if you acquire assets after a general lien, the lien affects the after acquired assets.
In rem
limits the borrower's liability to the thing, and protects other things. In other words, if you buy a building with an "in rem" mortgage, you can only lose the business and nothing else if you default.
Ne Varietur
a notary writes this on a note to indicate a recorded note is without change and is in the same note described in the mortgage.
Legal (Tacit)Mortgage
A mortgage stipulated by law. An example would be a mortgage against the property of a tutor (the representative of a minor's estate) as security for his administration of the property.
Judicial Mortgage
a mortgage created by monetary court judgment.
Louisiana Exemptions from Usury Law
a) FHA & VA loans 2) Wrap around & graduated payment loans subject to technical restrictions 3) owner financed loans 4) Loans for commercial or business purposes 5) Loans covered by the Louisiana Consumer Credit Law (credit card rates, etc) 6) Loans to corporations or partnerships.
Foreclosure - Ordinary Process
foreclosure with Appraisement.
1) mortgagee files suit for default by the mortgagor
2)a trial to establish merit...judgment is issued
3) Mortgagor usually ordered to pay the note, cost, interest and fees
4)mortgagor has right to appeal 5) judgment is executed by sheriff seizing & selling the property at auction 6) The property must be appraised and sell for 2/3 of appraised value - there are more laws and factors this is a brief, incomplete summary
Foreclosure - Executory Process
Foreclosure without Appraisement
1) mortgagor signs a note & mortgage agreeing to confession of judgment 2) confession of judgment means mortgagor has waived many rights, including benefit of appraisement notices and delays and agreed to Executory Process 3) no trial 4) a petition is filed by mortgagee, a court order signed & property is sold by the Sheriff within short period of time 5)Generally not allowed in residential first mortgages of consumer loans
There are other laws and factors involved, this is a brief incomplete summary
Title I
TITLE I. SCOPE OF RULES; FORM OF ACTION
Rule 1. Scope and Purpose
Rule 2. One Form of Action
plat
a map showing actual or planned features, such as streets and building lots

A plan of a city or subdivision, showing the boundaries of individual properties.
density
the frequency with which something exists within a given unit of area
buyer's brokerage agreement
...
ministerial acts
acts which do not require judgement and do not amount to advising or counseling.
onerous
burdensome; heavy; hard to endure
seizen
right to possess property of deceased prior to succession
mortis causa
[Latin, In contemplation of approaching death.] ... The donor of the gift of Personal Property must expect to die imminently from a particular ailment or event. This has important consequences in terms of the donor's ability to revoke the gift.
A gift causa mortis is distinguishable from a gift inter vivos, which is a gift made during the donor's (the giver's) lifetime. The donor of the gift of Personal Property must expect to die imminently from a particular ailment or event.

For example, an elderly man is suffering from pneumonia and believes he is going to die as a result of the sickness. He tells his grandson that if he dies, he will give the grandson his pocket watch. If the man recovers and wants to retain his watch, he will be able to do so, because a gift causa mortis is effective only if made in contemplation of death due to a known condition and the donor actually dies as a result of that condition.
disposable portion
The portion of a testator's property which he can will to anyone he chooses.
balance of the decedents estate. 3/4- one forced heir, 1/2 two or more forced heirs
THIS SET IS OFTEN IN FOLDERS WITH...