GA RE Metro broker exam Flashcards

GA RE Metro broker exam Flashcards BRETABrokerage relationship in real estate transaction act Curable Depreciationif it makes economic sense to fix it, if the cure would cost less than the value or the repair Set backsRequired distances a building must be placed from the front, side and rear lot lines.Tenancy in the entiretyThis is a marital estate, which can only be created between a husband and wife. It is similar to a joint tenancy except that the right of survivorship cannot be destroyed, since severance by one tenant is not possible and neither spouse can sell, mortgage or lease their interest without the other's consent. Partition suits are not permitted during a marriage, nor can a creditor force the sale for a single spouse's debts. Not recognized in Georgia What is BRETAGoverns the relationships between licensees and their clients or customers-to prevent "detrimental misunderstandings" that common law might cause in brokerage relationships What is CAM and what do they do?Community Association Manager, handles tasks involved in managing homeowner's associations Concurrent ownershipwhen two or more people simultaneously own rights in the same land. Can be in the form of a tenancy in common, joint tenancy (with rights of survivorship), tenancy by the entirety, community property, tenancy in partnership, a trust, a condominium or a co-op.Implied agencywhen a broker, showing a property to a prospective buyer, causes the buyer to feel broker is acting on their behalf

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How to deal with encroachmentsEncroachments are generally unintentional and can be

dealt with several ways: Agreement between owners to

legalize the encroachment by license or easement (which may involve payment), court action to remove the encroachment or to collect damages), or without action, could result in a prescriptive easement for the encroaching owner.examples of police powerplanning restrictions, zoning, building codes, and environmental protection laws. (DOES NOT include eminent domain) Secondary marketThe market where loans are bought from local lenders in order to provide them with a constant supply of cash to originate more loans to homebuyers

Testamentary trustCreated by will after owners death Severalty ownershipwhen an estate is owned by a single person or entity. (how corporations generally own property, authorized and signed with corporate seals) When to turn in earnest money?As soon as practically possible, to the broker. The check must be made out to the broker, not the agent.- normally within a business day Fee Simple on Condition Subsequent"On the condition that" If it states can be granted if it is used for a church can only be taken to use for a church Incurable depreciationif it does not make sense to fix/if the cost of cure would be more than the value of the correction Insurance proration- paid in advance- credited to the seller from day after closing until day Before next premium is dueFormula - Annual premium/365 = Daily rate.Daily rate x number of days Estate at sufferanceThe holdover only differs from a trespasser in that they were at one time legal occupants. "suffering" Community propertyApplies only to husband and wife so long as they are legally married, granting each spouse one half interest in any property acquired during the marriage, regardless of who holds legal title. Both spouses must sign for any conveyance. Can be passed to heirs in a will, but in the absence of such, generally given to surviving spouse. In divorce, if the parties remain co-owners, they become tenants in common. Not recognized in Georgia Capitalization Approachuses net income to project and estimate of present value Title theorythe instrument that accompanies a note of indebtedness is a DEED, conveying TITLE to the LENDER or to a trustee for whom the lender is the beneficiary. The borrower retains EQUITABLE TITLE (a right against absolute ownership) SyndicatesNot legal form of ownership, group of individuals get together to invest in real estate Leasehold estatea tenant's (lesee's) rights in real property through a lease, where the landlord (lessor) conveys the exclusive right of possession in exchange for rent, while retaining the fee simple ownership and a reversionary leased fee estate.universal agentAuthorized to perform any act the principal could perform, has authority w out limitations Tenancy in commonimposes the fewest restrictions on owners. Each owner holds separate title (with separate estate) to an undivided interest in the property, does not have to be equal ownership shares. Each owner can sell, mortgage, will or transferred without consent of other owners, as long as their rights aren't affected

NON- judiciary state (Power of sale clause) allows foreclosure on default WITHOUT a court ordered procedure.Impounds (escrow)Taxes and insurance Requirements for Broker license- 21 years old- Resident of GA or qualifying under nonresident- HS diploma or equivalent- Have held active license at least 3 of 5 past years- 60 hour approved course or equivalent- good moral character- pass state exam Economic obsolescenceArises from forces outside the property and beyond the owner's control, almost always incurable (location close to railroad, noise pollution, high taxes, oversupply, etc) Functional obsolescenceLoss of value due to inadequate, over-adequate or out of date improvements. It is obsolete because it does not meet market expectations. It can be curable (in the case of outdate appliances) or incurable (in the case of poor architectural design or floor plans) When will an agency contract terminate without a date?ONE YEAR Joint tenancy (right of survivorship)Co-tenants jointly own a single share, with only one title regardless of how many tenants there are. Upon death, it is NOT inheritable, but passes to other SURVIVORS. JT may only be created through a deed or a will and the document must state this clearly; it is never presumed. Undivided possession, equal interest, acquired at same time. their portion. Can be divided via partition suit.Priority of liens in order(1) Property Taxes(2) Special Assessments(3) Mechanic's Leans(4) Then by date of recording unless a subsequent lien includes a subordination clause Cooperative ownershipWhen a building is owner in severalty by a non-profit corporation. Individuals who wish to occupy units buy shares of stock in the corporation and then use these shares to acquire a proprietary lease, giving the right to occupy and use the apartment for so long as they own the stock or for the When can a seller sue a buyer for damages? Failure to preform according to the terms of a contract is called default or breach of contract How is an appraisal charged?The fee charged can never be based on the estimate of value POLANDAgents Duties to the Principal- (Personal Performance, Obedience, Loyalty, Accountability, Notice, Due Care) Estate in landAn Estate in Land refers to the quality, quantity, nature and extent of ownership interest that a person holds in real property. In order for and interest to be an estate, there must be a present or future right to OCCUPY the property.Encroachmentsis when an improvement, building, or other attachment illegally extends beyond the boundaries of its owner's land or air space.Usually revealed through professional survey

Declarationincludes descriptions of each unit, the percentage of common interest, description of common areas, and statement of permitted uses TILATruth in lending act- help protect consumers in their dealings with lenders and creditors, compare the cost of borrowing before commitment. Includes regulation Z Ostensible agencythird party relies on the principal's expressed or implied representation w/o agreement Police powerthe right of local, state or national governments to enact and enforce laws that regulate the use of private property in order to providefor the safety, health, morals and general well-being of the community What makes a valid deed from the grantors side? -Must be in writing,-name a competent grantor, -name a grantee,-contain a description of consideration-contain a valid legal description,-include a granting clause expressing grantors intent to convey- signature of grantro\or-and have been delivered and accepted by the grantee or the grantee's agent DURING the grantor's lifetime.putting it in the mail is considered delivery CC&Rscovenants conditions and restrictions (condo owners must abide by Defeasance clauseobligates the lender to relinquish title when the debt has been repaid (defeats mortgage) DO NOT CALL LIST RULESExisting business relationships, where calls may be placed for up to 18 months after the transactionA consumer who has made an inquiry may be called up to 3 monthsCalls may be placed to consumers who have granted written permissionSolicitation calls may only be placed between the hours of 8:00AM - 9:00 PMViolations of the law may result in penalties of up to $16,000 per violation When is a tenant relieved from paying rent? If the landlord's actions or omissions allow the leased premises to become uninhabitable or violation of quiet enjoyment, there can be a constructive eviction that allows the tenant to abandon the property and stop paying rent.Applies in life threatening situations and only if tenant moves out.TrustsA trust has three components. It is created when a property owner (trustor/giver) places the title to the property in the hands of someone else (the trustee/middleman) for the benefit of a third party (the beneficiary).Trustee holds naked title Master deedprincipal conveyance document used to create the condo, includes complete legal description and describes the entity What are not essential elements of a real estate contract- doesn't require signature of grantee- Do not have to record the deed (does give notice of ownership but not