Colorado Real Estate Exam Prep Flashcards

Colorado Real Estate Exam Prep Flashcards Gross Income Multiplyer=sale price/gross ANNUAL incomelarge rental or commercial property Terminating an estateeminent domainvoluntary alienationadverse possession easementright to use another's land for a specific purpose Lien creationvoluntary- consent. Ex. mortgageinvoluntary- no consentstatutory- by law. EX. tax lienequitable-common law charge accts limited liability companiestax benefits of partnership but limited liability of a corporation with flexible management structures priority of lienstaxmortgagespecial assessmentothers by date square footageL x W = A market costamount of money needed to reconstruct improvement plus the value of the land Conversionillegal use of entrusted money

• ways title can transferwilldescent- death with no willvoluntary

alienationinvoluntary alienation trade fixtureattached property for business use and considered personal property. Separate agreement needed to transfer with sale.Boundsdirection condemnationprocess of acquiring private property for public use with just compensation through judicial proceedings elements of valuedemandutilityscarcitytransferablility

Non Judicial foreclosure*CO: Public trustee has power to foreclose1.Lender

complains 2. Notice given 3. trustee sells after 125 days brokeragethe business of bringing parties together treble damagesindividual who has suffered a loss due to Sherman Anti-trust Law violation may sue for 3x damages general lienagainst individual and all propertyEX. judgments, IRS tax lien deedwritten document conveying right, title, and interest that is signed by the grantor reversionary interestowners right to retain possession after present possession is terminated.Transaction Brokerdisclose known defects and material factshelp to explain and understand without prejudice or advisenegotiate sale without representation Cominglingmixing client monies or mixing with personal monies liencharge or claim against property to enforce a debt paymentcollateral/security in real estate formencumbrance

chattelspersonal property

special warranty deed2 warranties: grantor received title and property was not

encumberedused by builders Private deed limitationsdeed restrictionsmortgagesleaseseasements exclusive right to sellone broker who makes a commission regardless of who procured sale arms length transactionno relationship between buyer and seller chain of titleunbroken chain linking conveyances to original owner

• ways to determine valuesales comparisoncost approachincome approach

Mill LevyTax rate deed restrictionsprivate restrictions against use of land that run with the land color of titleappears to be an issue statutory right of redemptionperiod of time AFTER tax sale to redeem property by paying delinquent taxes Strict foreclosureNo sale.Full legal title given to lender, loss of equity for borrower township tiers6 mi wide strips running east and west parallel to base lines determine value with GRM and GIMdetermine GRM or GIM from recent similar salesmarket value= gross MONTHLY rent x GRMmarket value=gross ANNUAL income X GIM Title Theorylender owns, borrower has equitable title MortgageeLender legal life estatecreated by law for dower, curtesy, or homestead giving 1/2 or 1/3 for their lifetime even if willed to others puffingexaggerationlegal as long as not lying or fraudulent net operating incomeeffective gross income - operating expenses intestateto die without will and testament CO Rule E-11all listing contracts must have a termination date reconveyance deedtrustee back to trustor general partnershipall partners participate in operationall share full liabilityrequires a re-org if one partner dies littoral rightwater right near ocean or lake to average high tide capitalization rateThe rate of return considered to be a reasonable return on investment - given the risk.testateto die having left a will and testament Township squares6x6 mi wide squares emblementsannual plantings that can be harvested by previous owner if he labored for them fixturesomething affixed to become part of real property and sold with property titleright to and evidence of ownership and bundle of legal rights seisinpossession novationone party to a contract is discharged and another takes their place

potential gross incomemax income on a property including all sources effective gross incomepotential gross income - vacancy rate corporationlegal entity that may own property which is managed by a board of directors. Death of a board member does not require re-org steeringchanneling homeseekers to a particular area based on racial composition negligent misrepresentationbroker SHOULD HAVE known and is liable for damagesE and O insurance will cover freehold estatehighest interest in real estate that lasts life/forever and may be passed down Lis Pendenspending lien that prevents to transfer of property Tennancy at Sufferencetenant has remained past lease termscan be evicted cloud of titledefect preventing transfer implied agencyactions of parties assume agency Judicial foreclosuredone through courts in *Title Theory states prior appropriationoldest rights may operate to the exclusion of newer ownership escheatownership transfer to city or county when owner dies with no will or heir Marketable titleno defectsnot dependent on doubtful questionswill not expose purchaser to litigationable to sell/mortage CO tax due datesJan 1- lien attachesFeb 29- 1/2 dueJune 15- other 1/2 dueJune 16-deliquent and accruing interestBefore July 1- grantee pays taxes Hypothecationpledging property as collateral for a loan without giving up possession testatorperson who acquired form will of another accesionproperty acquired due to being left behind by a tenant Mortgagorborrower equitable right of redemptionredeem property BEFORE tax sale general warranty deedgreatest protection to buyer including 5 covenants remaindermanwho is entitled to property at the end of a life estate Periodic TenancyNo specific duration but notice must be givenex. week to week, month to month Net listingbroker keeps all monies above and beyond listing price tax sale processsale of property to pay taxescourt order, public notice, public sale, certificate of sale given riparian rightwater right to halfway across a river or stream appurtenanceright or privilege associated with property and sold with property reproduction costcost at current rate of construction for an exact duplicate Ad Velorumgeneral real estate tax based on property valuespecific, involuntary, statutory lien

writ of attachmentcourt order to seize property until law suit concludes bargain and sale deedimplies grantor holds title and possessionno warranty against encumbrancesgrantee has little recourseused in foreclosures specific liensecured by specific propertyEX. vendors lien, mechanics lien, mortgage, real estate tax Express AgencyActual, formal written agreement establishing terms and conditions regressionlarger more luxurious home in modest neighborhood has less value constructive noticelegal presumption that information can be obtained through due diligence Eminent domainright of government to acquire private property for public use encumbranceright or interest of another that affect titleclaim, charge, or liability that may decrease value or restrict use attachmentsgeneral lien that attaches everything in home to judgment exclusive agency listingone broker, but seller retains the right to find a buyer without having to pay commission.Government deed limitationsPolice powereminent domaintaxationescheat section640 acres1 square mile36 per township square actual noticedirect knowledge Tenancy for yearsspecific time limitno notice to vacate unless written in limited partnershipbusiness run by general partnerslimited partners not allowed to make decisionslimited partners liable to amount invested Ranges6 mi wide strips running north and southparallel to principal meridians