National Real Estate Exam- PSI Test Prep Flashcards

National Real Estate Exam- PSI Test Prep Flashcards

escrow fund record shall be:maintained for three years

Air rightsThe right to use, control and occupy the space above a particular parcel of land.can ONLY lease NOT sell Open Listingheld by more than one agency.Joint TenancyA form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivor-ship. Equal shares, equal interest, acquired at the same time, by the same deed.EscheatTo die without heirs or a will, so everything you own goes to the statepronounced "ah ssheet" like "oh shit, you messed up" Adverse PossessionA person takes possession and use of a property belonging to another after continuous and uninterrupted use Commingled Fundsun-cashed checks, mixing clients funds with any other funds Constructive Noticea recording of an instrument (recording the deed with registry of deeds) Covenantsprivate agreements, (usually in a neighborhood to uphold certain visual or value standards, must cut lawn once a week) Tenancy by the EntiretyOwnership reserved for married people.Upon the death of one spouse, the survivor becomes the owner of the property.Lis Pendens"pending action"a recorded document that gives notice of action against the property nonfreehold estatepossessor does not own the property; possession does not last a lifetime (ex. lease) Where is the deed recordedat the registry of deeds/county courthouse when determining if item is personal property or real estate

determine this:

what was the INTENT of the owner- how is the item attached

All advertisements must:name the brokerage or broker of record

Dominant TenementProperty that receives the benefit of an appurtenant easement.EmblementsAnnual crops cultivated by a tenant which are treated as the tenant's property rather than the landowner's.Statute of FraudsA state statute under which certain types of contracts must be in writing to be enforceable.appurtenancesthe right of access (beach rights) ForclosureThe forced sale of property from borrowers who are unable to repay their loans

Life estate in reversionWhen the life tenant dies the property reverts back to the grantor(A grants to B, when B dies, estate REVERTS back to A) executory contractcompleted but NOT fully performed/both sides still have duties to perform Life estate in remainderWhen the life tenant dies the property goes to a third person(A grants to B, when B dies estate goes to X. X is the remainder man)

a ventilation fan is built into a wall, the unit is:real estate

devisea gift of real property by the last will and testament of the donor Allodial SystemA system of land ownership in which land is held free and clear of any rent or service due to the government; commonly contrasted to the feudal system. Land is held under the allodial system in the United States.Deed Stampsa tax for the deed, typically paid for by the SELLER 6D Certificatesale property is a condominium, this document states the amount the seller owes in condominium fees and is used to establish if the unit is free of association fee liens.(In Massachusetts, this document is required at the time of closing.) Stigmatized PropertiesProperties branded by society as undesirable because of events that occurred there. *disclose information upon questioning*(the fact that a prior occupant had a disease which would be highly unlikely to be transmitted to new owner/buyer is NOT a stigma and shall not be disclosed) Exclusive right to sella listing that gives the broker the right to collect a commission no matter who sells the property during the listing period.Personal Propertychattel or personalty- movable items pur autre vie"For the life of another." A life estate that is measured by the life of a person other than the grantee(A grants to B, when Y dies, estate goes to X) Habendum ClauseThat part of a deed beginning with the words "to have and to hold," following the granting clause and describes the limits of the estate being granted Trade FixturesPersonal property used in a business and can be removed by the lessee when the lease terminates. - makes a living from it like a barbers chair Quitclaim Deedthe most common for basic real estate transactions "as it exists"(provides LITTLE protection) Meeting of the mindsagreement between a buyer and seller on major points BEFORE offer is made in writting

contracts MUST be in writing according to the: statute of frauds

Involuntary LienA lien placed on property without the consent of the property owner. (property tax) LiensA charge or claim which one person has upon the property of another as security for a debt or obligation Mechanic's LienLiens that arise from construction and other improvements to real estate.(if you don't pay your contractor for your new deck they could put a lien on your house) mineral rightssubsurface rights Alienationthe voluntary act of an owner of some property disposing of the property Exclusive Agencyonly one agency but the owner can sell without the named agency and not pay commision ErosionProcesses by which rock, sand, and soil are broken down and carried away (i.e. weathering, glaciation) Leasehold EstateA tenant's right to occupy real estate during the term of a lease. Renting for a fixed term.tenancy at sufferancerenting beyond lease term(a tenant of real estate continues to occupy the premises without the landlord's consent after the original lease or rental agreement between the landlord and the tenant has expired) surface rightsOwnership rights in a parcel of real estate that are limited to the surface of the property and do not include the air above it (air rights) or the minerals below the surface (subsurface rights).encroachmentthe unapproved use of land by another Easment Appurtenantmost common type of easement - benefits a neighboring property - (attaches itself to a piece of property, it's said to run with the land)**access to travel over the property to access another property when the lots of property are adjoining between a zoning ordinance and a covenant, whichever is more restrictive, will prevail which has more power when setting restrictions zoning ordinance or a covenant?Fee Simple Subject to Condition Subsequent An estate carrying the limitation that, if it is no longer used for the purpose conveyed, it reverts to the original owner.(Sally gives Bob land, as long as he never sells alchol on that land he can keep it) Executed ContractA contract that has been completely performed by both parties.Known Defects(red flag issues) material facts, MUST be disclosed Any financial interest of a broker or agent (or family/business partner) in any property subjectto sales,

lease, rent or mortgage:

must be disclosed in writing to all parties escrow fundsMoney or papers which represent unsettled financial transactions. These are given to a third party to keep until all conditions in a contract are fulfilled.

Vicarious LiabilityThe broker of record is held liable for acts comitted by agents affiliated with his/her agency.(Legal responsibility placed on one person for the acts of another) Special Warranty Deedprotects the buyer against any prior claim of title that occurred DURING the sellers term of ownership (does not protect against claims before seller) syndicatea gathering of people with a common interest, business venture. (ppl pool their resources to own or develop a piece of property) cropsalso known as emblements - can be removed by the seller and considered personal property accretionthe addition of net real estate by mother nature (sand being blown onto your beach property over long period of time giving you more "land") Tenancy in CommonCo-ownership of property in which each party owns an undivided interest that passes to his or her heirs at death NOT co-owner cooperativea business organization owned and operated by a group of individuals for their mutual benefit. each "owner" is granted stock and a lease for the particular co-op unit dedicationvoluntary gift of land to the government advertisements in regards to genderGender-preference words are prohibited. Exceptions are made for people who want to share an apartment or house with a roommate of the same sex. (Female seeking female roommate ) Procuring Cause of SaleThe actions of a real estate broker that are the direct and primary cause of a real estate sale.Voluntary Liena lien created intentionally by the property owners action, such as when someone takes out a mortgage or equity loan Syndicationowning stock in real estate holding company- rental or licensing of media products PuffingExaggerated or superlative comments or opinions(this is the most beautiful house on the block).action for forfeiturean original property owner can file if a new owner violates the condition subsequent or fee simple determinable agreement encumbrancea claim against the property (debt or lien) Super lienunpaid condo fees, holds a position superior to any mortgage real estateitems permanently affixed - land or building Unenforceable ContractA contract in which the essential elements to create a valid contract are met but there is some legal defense to the enforcement of the contract.(verbal contract or contract with a minor)