Real estate National Exam Prep - 2024 Flashcards

Real estate National Exam Prep - 2024 Flashcards Personal Propertycrops that require annual planting Term Loanrequires a borrower to pay INTEREST only until due date and then pay the entire principal of the maturity date Replacement costmost common method of estimating property value for insurance purposes Deed restrictionapplicable to the activities of present and future owners Concurrencyseller does not have to give notice to the contingent buyer, the seller is free to accept an unconditional offer Lead Paintrequired in homes built before 1978 RESPAdisclosure fo transaction costs/ limits money in reserves percentage of a borrower's income can be used to service debt on a conventional loan 36% Escheatabandoned private property redeemed by local gov Mortgagorsacknowledges mortgage All liens areencumbrances Grants zoning authority to municipal gov Police Rectangular surveyT3N, R4W principal meridian FHAfunctions like an insurance company Amortization Provisiongovs ability to put time limits on nonconforming uses Zoning ordinance/ Conditional use permit will be needed to be obtained for permission to build a grocery store in a residential zone Unconventional Loana loan that does not conform with Fannie Mae Completioncauses termination of Real Estate contract Allodialgov system that allows us to hold title to land Competitive Market Analysisperformed when pricing properties Contigencyseller has to give the contingent buyer a chance to remove condition if another offer is received by owner Broker's commissionis paid when seller accepts the offer Marker pricethe price a property actually sold for Reconciliationdetermined to be the final estimate of value when theres one than one factor Protection Clauseallows broker to sue for commission if owner waits for expiration of listing to contact a buyer to purchase without broker GRMThe Gross Rent Multiplier, used in estimating value of income property based on its gross income.Package Deed of trusttype of financing that allows purchaser to finance personal property along with purchase price of the home The Truth in Lending Actborrower has 3 DAYS to change their mind Inherit / deviseeto receive title through a last will/ testament

Foreclosuresold through public auction Fully Amortized Loanpayed off in equal installments that pay off entire balance during loan term Special AssessmentNew sidewalks installed only on one particular street will probably be paid for by Specific Agencywhen a principal authorizes agent to perform to a particular act or transaction Covenantrestriction in the deed Executory ContractAgreement to purchase which has not been closed Conversionagent uses money that belongs to others Joint Tenancyright of survivorship Uniform Commercial Codegoverns negotiable instruments 28%of an income can be dedicated to housing expenses for a conventional loan Buyer isGrantee Property Management Accountcan earn interest Surveydetermines size / boundaries to a property Law of AgencyPrincipal and client - same person Statue of Fraudscontract must be in writting Lender isbeneficiary UsaryCollecting more interest than is allowed by law Open End loantype of mortgage that allows a borrower to borrow additional sum Subleasethe tenant transfers the interest only for part of the lease term Listing agreementnot covered by statue of frauds Leasehold Estateestate for YEARS Meets and Boundslegal system that uses feet, degrees and natural markers Fee simple absolutefullest estate a property owner can have Equitable Right of RedemptionHomeowner getting back their house by paying of ALL debt prior to foreclosure Voidable contractmade by a minor Probate courthas jurisdiction over estates of deceased Land Contracta way for a vendor to help a vendee finance their property Tenancy in commona parcel of real estate owned by 2 or more ppl without right of survivorship Landdefined by scarcity, location and durability Exclusive agencyallows seller to procure buyer and forgo paying broker commission Depreciationcalculated based on the cost of building only Novationsubstitute a new contract / a new party to an existing contract/ relieved of liability Reverse Condemnationhomeowner can file lawsuit Chatteltrade fixture - annexed converted to real property

Equitable Titlean interest in real property created by execution of a valid sales contract Advertisingan agent can advertise a property under its own name if the official name of broker is also on the ad Jones vs. Mayer 1968This prohibited all racial discriminated based upon civil rights act of 1866 in public or private sale of real estate or personal property.Usuary lawsregulates interest rates charged by lenders First Substantive Contractrealtor gives a buyer a consumer guide to agency Discount Pointscharged by lender to LOWER interest rate Straight term loancalls for interest payment during the term of the loan and principal due at the end of loan Deed elementswords of conveyance Acceleration Clausewhen the borrower defaults on the mortgage, the lender can DEMAND IMMEDIATE payment of the ENTIRE note Constructive NoticeA judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given Land Trustthe ID of legal owner is kept confidential LenderMortgagee Seller isgrantor Truth in lendingloan cost disclosure material FactsAlways must be disclosed to the principal (client) by broker Purchase conditions violatedproperty must be returned to original owner Appraisaldoes not take into account interest expense General Warrantycontains MOST covenants Codicila change to last will/ testament Conveyance taxseller pays for when transferring tile to real property Lessor dieseveryone already signed, lease is unchanged Valid Contract requiresoffer, acceptance and consideration Sec of Stateholds trust docs Periodic tenancymonth-month lease, temporary housing Assignmenttenant transfers entire interest for remainder of lease Sales comparison approachmost weight on a single family home Rescissioncontract void Legateea person who receives money as a gift through a will Negative Cash Flowtoo much leverage may result in Specific performancelegal procedure brought forth by a buyer to enforce contract's term Dominant tenementbenefits from easement FNMA (Federal National Mortgage Association) privately owned secondary market player Title to a propertyis conveyed when accepted Sherman Antitrust actdiscussing commission rates Adverse Possessionacquiring title to land by continuous use

Benefit of a deed of trustforeclosure is usually simpler and faster.A landlord can refuse to rent to a tenant who has been convicted of selling illegal drugs