Final Exam-Career Academy of Real Estate Flashcards

Final Exam-Career Academy of Real Estate Flashcards Life Estate-Ownership for only one lifetime-2 types of life estate-Voluntary/Conventional (set up voluntarily by the grantor of the life estate)-Involuntary/Statutory (set up because of a requirement of law) Equitable LienThe fair and equitable thing to do Judgement LienA lien placed on property to settle a judgement from a lawsuit When is a new chairperson elected?Every time a commissioner is added What are commissioners paid?-$300/month-Travel expenses-A per diem ContingencyA stipulation in a contract that has to be satisfied before the contract is binding Is a commissioner liable when performing duties? No commissioner shall be liable for damages resulting from any act performed in carrying out duties as a commissioner Lot and Block/Plat Map-Lot & block numbers referred to on a plat map-Plat map is a map of a town, section, or a subdivision indicating boundaries of individual properties-Begins w/preparing a subdivision plat by a licensed surveyor or engineer-Plat is divided into numbered or lettered lots & blocks-Lot sizes & street details must be described completely and must comply with all ordinance & requirements-Plat map becomes part of the legal description Easement in Gross-Involves 1 property-Similar to a license EncroachmentsAn unauthorized physical intrusion of real property onto an adjoining property Mechanic's and Materialman's lienA legal claim against property that has been remodeled or improved Tenancy in Common-Most common-Upon death of one of the tenants in common, ownership is inherited by the co-owners's heirs instead of other co-owners-Common with siblings-No right of survivorship (there are heirs) Unilateral vs BilateralUnilateral- a contract that requires performance, contract is completed when action is takenBilateral- complete when promises are exchanged Encumbrances-Attached to the property so it transfers or conveys when

the property is sold-Affects the title & use-Types: liens

(claim on the property of another to satisfy an unpaid debt), restrictions, easements & encroachments Valid, Void and VoidableValid-all the essential elements are presentVoid-Was never a contract b/c on or more of the essential elements is not presentVoidable-Can be rescinded by one or both parties based on some legal principle

Expressed vs ImpliedExpressed- clearly stated all terms, either orally or writtenImplied- "implied in fact", based on the actions of the parties, no words have been written or spoken IRS Tax LienLien by IRS for failure of a taxpayer to pay federal income tax Qualifications for Ownership-2 qualifications for ownership-Condition subsequent (states a specific use of the property that is prohibited)-Fee simple determinable (states that property must be used for a specific purpose) Who do the Commissioners employ?-An executive director-An assistant executive director-Other staff if necessary Contractual LienThe lien is created because the property owner entered into a contract Qualifying Broker-Person under whom the company is licensed-Supervising broker responsible for acts of company & licensees-Licensed in AL-Principal business must be that of a QB-Must be in a position to to supervise activities of licensees working for them on a full-time basis How does one become a RE Commissioner?-APPOINTED by the governor-CONFIRMED by the senate Pur Autre Vie-Estate is based on life of a person other than life tenant-Upon death of life tenant, grantor determines what happens to estate (determined when life estate is established) Rectangular/Government Survey-Land is divided into rectangles-System is based on 2 intersecting lines (latitude & longitude)-Township squares 6 miles square & contain 36 sq miles-Township squares are divided into sections-Each section is 1 sq mile & contains 640 acres-Each acre contains 43,560 sq ft How many terms does a commissioner serve? -5 year terms-Cannot serve more than 2 consecutive terms How does QB terminate a licensee?_Give written notice to licensee-Give written notice to commission-Send licencee's license to commission Condiminiums-Ownership in a multiple-unit complex like an apartment building/office building-Individual units are individually owned, each owner receives a recordable deed to the individual unit purchased-Common grounds are owned jointly as tenants in common RedliningLenders that refuse to make loans within an area based upon some characteristics of the property owners in the area Qualifications for an Original License?-Trustworthy/competent so as to safeguard the interests of the public-Cannot have had a RE license rejected or revoked in any state during the previous 2 years for any reason except failure to pass state exam-19 y/o+-US citizen/legally present w/appropriate documentation/alien w/permanent resident status-High school graduate or

equivalent-Complete 60 hour course within 1 year from date of enrollment (including passing course exam w/70%+)-Pass AL State exam w/70%+ AvulsionSudden loss of land by forces of nature Ad Valorem Tax Lien (aka RE tax)Property taxes paid annually on a state level Temporary QBIf a QB dies/becomes disabled, company license would become inactive-HOWEVER, company has 30 days to designate a temporary QB-Must be a broker or salesperson

w/at least 1 year experience-Company has 6 months to designate the real QB AL Reciprocal License-Complete 6 hour reciprocal salesperson/broker course-Pass AL reciprocal state salesperson/broker exam