Nevada National Real Estate Exam Flashcards

Nevada National Real Estate Exam Flashcards Broker price opinion - BPOFor lenders/attorneys - higher grade CMA Demand - characteristic of valueThe need or desire for possession or ownership back by the financial means to satisfy that need Estate at willOpen ended, terminates by notice or death LiensA charge against property that provide security for the debts or other obligations of the property owner. Deed of trust; mortgage. Promise/obligation GNMA- Ginnie mae - GSEGovernment; special assistance loans- Managed by government Abstract of TitleSummary of activity since route of title; accompanied by a lawyer's opinion Transferability - characteristic of value Ease with which ownership rights can be transferred Leasehold EstatesDeath/sale will not terminate lease EncroachmentIllegal intrusion FHLMC - Freddie Mac - GSEGovernment; buys primarily conventional- Managed by government LeasebackSeller leases back after closing; model homes Cloud on titleAny claim that may impair title - HOA, foreclosures Living trustCreated while the trustor is alive, usually by detailed trust agreement PartnershipsTwo or more people who carry on a business for profit as co-owners Fee simple absoluteNo limitations except for public and private restrictions; such as zoning laws and restrictive covenant's; HOA; can be willed Quitclaim deedLeast protection to the grantee; no covenants or warranties. Only transfers interest grantor has remises, releases, and quitclaims Factors affecting valueSupply and demand - increasing and diminishing returns - plottage - regression and progression Short saleSeller selling short of what is owed; needs lender approval Bargain and sale deedGrants and releases or grants, bargains and sells - most common Estate at sufferanceWrongful holdover Limited partnershipThe general partner or partners provide the management for the limited/non-participating partners; limited partners are only liable to the extent of their investment Reversionary interestReturned to the original owner or the original owners heirs when the life estate ends Life estate - limitedTo the duration of a lifetime, either the holder of the life estate or of another designated person; not inheritable -

limited by life- Cannot be willed, not inheritable

Percentage LeaseFixed + % of profits ;; mall, retail spaces Fee simple estateHighest type of interest in real estate recognized by law; Forever; Freehold General partnershipAll partners participate in the partnership; share full liability Truth in lending - financing/credit laws Implemented by regulation Z, borrower has three business days right of recession; strict regulation of trigger terms in advertising; disclosure - always refer to lender Substitution - principles of valueMaximum value set by the cost of equal replacement Characteristics of valueDUST; demand, utility, scarcity, transferability Feesimple subject to a condition subsequent Exists provided condition is not violated/; former owner retains a right every entry if the condition is broken.Example. Condition; no conception of alcohol. Will need to go to court to exercise right of reentry; Sue Assign/subleaseRenting then leasing to someone else; air B& B Secondary- source of moneyLoans are bought and sold after being funded Highest and best use - principles of value The most profitable single use Lender policyProtects lender; buyer pays based on loan amount EncumbrancesEffects on property ownership. Claim, charge or liability that attaches to real estate; restrictions easements, encroachments that affect the condition or use of the property Pur Autre VieCreated by the owner by deed for the life of a person other than the life tenant - life of another AnnexationProcess of changing personal property to real property; how is it attached?Increasing and diminishing returns- value affect Improvements and structures will eventually reach a point at which they no longer increase property value Periodic estateMonthly, weekly, annually, notice required for that period Quiet titleCourt order closing the gap in chain of title - name change, fix without quitclaim deed Change - principles of valueNo physical or economic condition remains constant Sheriffs deedPursuant to a court order; judicial foreclosure - no warranties; any liens will convey Estate for yearsDefinite termination date/no notice required Principles of valueAnticipation, change, competition, conformity, contribution, highest and best use, substitution Utility - characteristic of valueUsefulness for its intended purpose Fee simple defeasibleQualified/limited; subject to the occurrence or non-occurrence of a specified event Joint tenancyRight of survivorship. Two or more natural owners only - inherit right of survivorship among the owners - creation of joint tenancy requires four unities; PITT; possession, interest, time, title. Termination occurs when one unity is terminated

TrustDevice which one person transfers ownership of property to someone else to hold or manage for the benefit of a third-party; Ask clients - tell escrow for title insurance purposes Community property rightsSpecial form of ownership for married couples only; property acquired during the marriage is community property; husband and wife are considered equal partners, with both signatures required for conveying or mortgaging community property.Plottage - value affectEmerging may produce a higher total value than the sum of lots valued separately; assemblage - combining lots for more money EmblementsCrops are personalty; fruits of labor Chain of titleHistory of all grantors and grantees since patent Limited liability companies - LLCCombines features of limited partnerships and corporations

• members have the limited liability of a corporation plus the

tax advantages of a partnership FNMA- Fannie Mae - GSEGovernment; buys FHA, VA and conventional - managed by the government Primary - source of moneyLenders who originate/fund loans- Commercial banks, credit unions, savings associations, insurance companies, pension funds, endowments, etc CorporationsA legal entity/artificial person; chartered understate law; exist until formally dissolved; managed and operated by board of directors; provide its shareholders with limited liability's - asset protection Special warranty deedWarrants only title not encumbered while grantor held it except as noted in the D - remises, releases, alienates and conveys Gross LeaseFixed amount- Residential rental Remainder interestA future interest in the fee simple estate for the remainder man - the identified person to whom the property will pass when the life estate ends. Property to pass on to you; plan for future Competition - principles of valueSupply and demand; excess profits tend to attract competition Equal credit opportunity act - ECOA - financing/credit lawsProhibits discrimination in lending - fair housing for lenders Conformity - principles of valueMaximum value when use is in harmony with surroundings Net LeaseFixed plus maintenance; Triple Net = tax & insurance also Severalty OwnershipSingle; one -corporation Fee simple determinableQualified by a special limitation. Exists "so long as" limitation is Met; former owner retains a possibility of reverter. No need to bring court action.; So long as it is used for church - no Sue