MO Real Estate Exam Practice Flashcards

MO Real Estate Exam Practice Flashcards Special Purpose Deeds=used for diff purposes, to convey certain interests, or by

certain parties-D OF Trust: convey prop to 3rd party as

collateral for loan-D IN Trust: convey property to the trustee

of a land trustSpecial purpose deeds:personal

representatives deed, guardians D, sheriff's D, D of trust, D in trust, Master deed, partition D, patent D, tax DTransfer

tax: state tax on conveyances based on price

Contract=intangible agreement "mtng of hte minds"Valid contract is

legally enforceable by meeting contract law requirements:

Competent parties, mutual consent (offer & acceptance), valuable consideration, legal purpose, voluntary act of good

faithConveyance validity if RE: in writing, contain legal

descrip, signed by 1+ (excl 1 yr lease) Warranty deedused to transfer title from one party to anotherone of the forms licensees can use Going behind the signlicensee from another co contacts seller with property listed with another broker - violation of license law Commingling/ Conversion=doing something wrong with someone's money; i.e.depositing late, taking out too soon, or using $ without permission Testamentary trustsame as living, but takes effect when trustor dies Aleatory contract"dependent on chance"; effects are triggered by the occurrence of a chance event Timeshare=fee or LeaseHold interest in property whose owners or TTs agree to use on a periodic, non overlapping basis Bill of salewhen personal property (movable in nature, "Chattel" or "Personalty") not listed on sales contractone of the forms licensees can use Title InsuranceProtects lender against possibility that lender's lien can't be enforcedInsurer's guaranty against defects AddendumAddition to contract, aka Rider Allodial SystemIndividual entitled to own property without proprietary

control by the king/govt (U.S. system)Fed Reg: broad stds

of real prop usage, nat disaster, land descrip, and

descrim.State Reg (*primary regulator of RE): est RE

license laws and qualifications, regional influence on usage and environemental control, ownership and

inheritanceLocal: land use control, improvements, and

taxationJudicial: case law and common law applications to

ownership and use

Statutory Deeds-Bargain and Sale- General Warranty-Special Warranty-Quitclaim Deed -B&S: I own and will NOT defend-Gen Warr: I own and will

defend *(most commonly used)-Special War: I own & will

defend against my acts only-Quitclaim deed: transfers

interest in property whether known to exist or not. "may or may not own and will not defend"; used to clear title not convey;--QC deed can terminate private deed restrictions Quit claim deeds- to transfer property or correct mistakes made in previous transfers of property- one of the forms licensees can use ConsiderationIncludes $ compensation, exchange of free services, or any other valuable good or service that a person expects to be paid (Vital in license law requirement) Freehold vs Leasehold Estates in landFreehold: duration of right can't be determined, assoc with

prop ownershipLeasehold: dist by specific duration; not

associated with ownership bc temporaryBoth are

tenanciesFreehold TT: owner of freehold estateLeasehold

TT: the renter or lessee

Rectangular Survey System/ Govt Survey Method Meridians=N-S lines 6mi apart (latit)Parallells: E-W lines 6mi apart (longit)Base Parallel/Base Line= designated line

for identifying townshipsRange:N-S area between

consecutive meridiansTier: E-W area bt 2 parallels/ aka

townsh stripTownship: area encl by intersection of 2

consecutive meridians and 2 consec parallells; area 36

miSections: townsh / into 36 squares called sections; each

side 1 mile, 640 acres*** Deed Conveyance Clauses- granting or premises clause- habendum clause-reddendum or reserving clause-tenendum clause Describe details of the transfer-Granting or Premises

clause: ONLY REQUIRED CLAUSE; contains conveyance

intentions, name parties, describe property, indicates

nominal consideration-Habendum Clause: type of interests/

estate being conveyed (fee simple, life, etc); "to have and

to hold"-Reddendum or Reserving clause: recites

restrictions and limits being conveyed-Tenendum clause:

identify property being conveyed in addition to land Dual AgencyMust disclose, commission source must be wirtten, sig/date of all parties, copiesListing broker FIRST disclose to buyer the broker agency relationship with the seller BEFORE buyer gives personal or financial infoListing licensee = transaction broker unless otherwise specified in writingDual Agents = Transaction Brokers Equitable titleinterest or right to obtain legal title in accordance with sale or mortgage contract Last Will & Testament=voluntary transfer to heirs after deadh-maker: devor or

testator-heir (beneficiary): devisee-estate (property

transferred): devise

Branch Office MgmtManager must have broker, broker salesperson, broker officer, broker partner, or broker associate license-

salesperson may be an officer of a corporation, but not involved in management

Probate=court proceeding to settle estate-testate= left a valid well-intestate= failed to do soProbate of real property

occurs in court where property is located3 Channels:1.

testate proceeding2. Intestate w/ Heirs - state laws (1/3 spouse, remaining kids)3. Intestate w/o Heirs - escheat after claims/liens cleared Involuntary Title Transfer-Laws of Descent: state laws determine distribution of

share to heirs (or state without)-Abandonment: for statutory

period of time may escheat to state or

county-Foreclosure-Eminent Domain-Adverse Posession:

lose legal title to adv possessor, must:...be able to show cl

of right or color of title, have notorious possession (w/o concealment), hostile possesion, occupy continuous for X time, pay taxes (in some states)-- To avoid Adverse Possession, owner could sue to quiet title or Torrens system Branch Offices- Broker salesperson office (NOT salesperson) can manage branch office- branch office under a principal broker would operate under principal broker's license

Water RightsDoctrine of Prior Appropriation: owners obtain permits for

use of waterIf State does'nt operate under Prior Appropriation:Littoral rights: concern bodies of water not moving; owners don't own water or land beneath the water"Navigable" and public prop owned by stateRiparian Rights: flowing water- navigable: wate ris public

easement-non nav: owner unrestricted use and owns land

beneath stream to streams mid point License LawAny person who performs a RE service on behalf of another party for CONSIDERATION must be licensed; i.e.broker transactions, managing property, appraising, counseling, syndicating, auctioning Foreclosure- mortg lien forecl-judicial forecl-non judicial forecl-strict forecl =enforcement of liens through liquidation or transfer of

propertyMortgage lien foreclosure: liquid. or transfer of

collateral property by judicial, nonjudicial, or strict

foreclosure- Lis Pendis: public noticre property soon have

judgement against it- Write of Execution: court authorizes

official to seize and sell forecl of propertyJudicial

foreclosure: lawsuit and court ordered public sale;

deficiency judgements, lender=lien if deficient funds from

sale, redemption rights- Stat Rt of Redemption: recover

property-Right of Reinst: cure defaultNon-judicial forecl: when "power of sale" provision in deed doc, force sale

without foreclosure suitStrict Forecl: court proceeding gives

lender title directly instead of $ from public sale; begin with proper notice to DQ borrower, value of property< value of