Real Estate National Exam Vermont Flashcards

Real Estate National Exam (Vermont) Flashcards Client/principalA person who has entered into an agency relationship w/ a licensee & with whom there is a written contract

Attorney in Fact:A person given the authority to act on behalf of another

under a power of attorney.Less then freehold estatesLeases

Voluntary Liens:Claims imposed against real property with the consent of

the owner.Vendee is the?buyer Executory and Executed ContractsExecutory: when one or more parties has not fulfilled its

obligations under the contract.Executed: when all parties to

the contract have fulfilled their obligations under the contract.

Property Taxation:tax based on the value of privately owned real estate,

major sources of revenue for local and county governments. The taxes paid on a house for example, make the asset decrease in value (HP). The property taxes are a limitation on the rights of the property from which is not paid; you can and will lose your real estate due to the fact that it becomes a lien.Trustee is the?3rd party to the transaction Trustor is the?Buyer

Involuntary Liens:Claims imposed against real property without the consent

of the owner (e.g., taxes, special assessments).Mortgagor is the?Buyer

Personal PropertyMoveable (goes to the person) Example: Keys or lease

CAN-SPAM act:A federal law that placed guidelines on mass commercial

emails.RESPA requirements include:1) Lenders must give borrowers a good faith estimate of closing costs.2) Lenders must give borrowers a HUD booklet describing closing costs, settlement procedures & borrowers rights.3) Closing agent must prepare a HUD stmt detailing how much was paid to what companies for what services4) Borrower must be given right to inspect HUD stmt 1 day before close.5) Lenders & other parties must give full disclosure of all business relationships.6) Lender must disclose to borrower if the loan is likely to be sold to another investor.Annexation is?The act of brining something or putting something on the land. When determining annexation, value of the item is RARELY considered. The RELATIONSHIP if the parties is more important.

Estates in property:Freehold and Less than Freehold estates

Return of Investment:net profit after taxes divided by total assets

Regulation Z applies to:ALL REAL ESTATE credit transactions except for

commercial loans. For non-real estate transactions, it covers up to $25,000.Vendor is the?seller

RESPA prohibits:1) Kickbacks & fees for services not performed in

connection w/ the closing2) It limits the amount of escrow reserves a lender can hold3) The sale may not be on the condition on the use of a certain title co or escrow co.chosen by the seller.

ADA:Americans with Disabilities Act

Freehold EstatesAn estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate.Serveraltyownership of all property rights by oneself

Equity:a condition in which people receive from a relationship in

proportion to what they give to it S.T.U.DScarcityTransferabilityUtilityDemand Unilateral ContractContract containing ONE promise given in exchange for completing an act. No obligation to act.

Types of leases:gross lease, net lease, percentage lease

Priority Liens:Property taxes and special assessments, then in order of

time and date files (pure race), except mechanics lien, which dates to date labor began or materials were first provided.If the original party to an agreement is replaced due to novation, are they liable?No

Tenancy in Common:Co-ownership of property in which each party owns an

undivided interest that passes to his or her heirs at death.

Encroachment:intrusion on a person's territory, rights, etc.

Joint Tenancy:Time (all given at same time)Title (all hold title at same

time)Interest (is equal for all owners)Possession (all equal right to possession)Right of Surviorship RESPA stands forReal Estate Settlement Procedures Act

Rate of Return:the percentage of increase in the value of your savings

from earned interest Optionee is the?Buyer

Types of Depreciation:physical deterioration, functional obsolescence and

external obsolescence.

Bilateral ContractContract containing TWO promises. Example: A listing

agreement is a bilateral contract General LienA lien that attaches to all property owned by an individual.Real and personal.

Metes:The direction and distance of a line forming the boundary of

a property

LiensMoney owed

Deed Conditions:created upon property transferif violated, ownership may

revert to previous owner

Zoning:dividing an area into zones or sections reserved for

different purposes such as residence and business and manufacturing etc Types of Less then Free hold estates:Estate for years (Amount of time/summer rental)Periodic tenancy (Reoccurring time frame)Estate at Will (end at any time)Estate at sufferance (staying too long)

Real Propertyimmovable (goes to real estate) Example: house

C.L.O.Cv-competent parties-legal objective-offer and acceptance-consideration

General Agency:A principal gives an agent the power to bind him in a

particular trade or business

Contract of Sale:The agreement between the buyer and seller on the

purchase price, terms and conditions of a sale.Grantee is the?buyer Regulation Z dictatesDisclosure Requirements in Credit Transactions, including the disclosure of the Annual Percentage Rate (APR)

Agency of Estoppel:When a person's word or acts mislead another person into

believing that a third party is that person's agent and it is necessary to recognize an agency in order to avoid injustice Optionor is the?owner or landlord (seller)

Term and Payment:A home equity conversion mortgage (HECM) payment

option in which the homeowner receives equal monthly payments for a fixed period of time.

Bounds:Refers to boundaries; used with the word "metes" in the

metes and bounds method of land description.

Surrender:Tenant voluntarily gives up a lease before the expiration of

its term.Deed Vs. TitleDeed: Evidence of the transferTitle: Ownership

Government PowersP.E.T.E:Police power (government where they don't take

the property but they tell you how to use it)Eminent domain (they take the property)Taxation (Paying taxes)Escheat (takes property to give to state)

Do-Not-Call List:Under the telemarketing rule, once an individual is added to

the firm's internal do-not-call list, they remain there indefinitely.

Notice of Delivery:the notice sent through a clearing house informing the

holder of the futures contract of the sellers intention to deliver the commodity Grantor is the?Owner Types of Freehold estates:Fee simple absolute (highest degree of ownership but pay taxes)Fee simple defeasible (have the estate but can lose

it)Life estate (owe the property based on someone else's life)