Real Estate - Pennsylvania Fundamentals Course: Chapter One Study

Real Estate - Pennsylvania Fundamentals Course: Chapter One Study

Guide/Summary Flashcards Department of State (The Department)Acts through the Commissioner of Professional Occupational Affairs.· Arrange for the services of professional testing services to write and administer examinations on behalf of the Commission with Commission guidance and approval.· Issue license and registration certificates to any person who complied with the Real Estate Act.Corporealactual possession of the property.Bundle of Rights· sell· use· lease· encumber (mortgage)· enjoy· exclude (no trespassing!)· will (give after death)· occupy· cultivate· exchange· explore· share· trade· license (give permission to others to use the property)· dedicate (give private property for public use, such as streets or parks) Natural Rights: Accretionincrease of land created by deposits of soil by the natural action of water M.A.I.D.Legal test to see if an item has become a fixture.M from M.A.I.D.Method of Annexation - How is the item attached?Ex. Is it permanently attached such as a central air conditioning unit (fixture) or is it temporarily inserted such as window unit air conditioner (personal)?Nolo Contenderea plea in a criminal case which says "I will not contest it." Essentially, this plea does not indicate guilt or innocence on the part of the defendant.I from M.A.I.D.Intent of the Parties - What do the buyer and seller agree upon in the written contract?Ex. A Martin bird house tower may become personal property if the buyer and seller agree in the contract, even if the bird house has been cemented in the ground.Annexationchanges personal property to real property.Ex. Tree is planted to become real property.T from D.U.S.T.S.Transferability Complainantperson making the complaint to a licensing group such as the Pennsylvania Real Estate Commission.Economic Characteristic of Land: Transferability Can the property be deeded? If a property cannot change hands (be transferred) because of legal problems, the value is limited. The ownership rights to a property, often referred to as the "title" may not be transferrable if there is a legal issue. Until the issue is resolved, and the title is clear, the property may have little value.

Allodial Systemindividuals were entitled to own property without the proprietary control of the king/government.United States is under this type of ownership.Power of Attorneya legal document which is signed and notarized for the express purpose of representing another to the extent indicated in the document.

Air Rights: Generalscenic easement and light & air easement can be sold

separately from the land with an easement deed.Air Rights: Scenic Easementmay be sold so another building cannot be built to block the view.

Real Estate includes:· Land· Man-made appurtenances· Natural appurtenances·

Air rights· Gas rights· Solar rights· Light/Sound rights· Mineral rights· Surface rights· Water rights What happens if a trade fixture is not removed by the expiration of the lease?a trade fixture isn't removed prior to the expiration of a lease.What happens if the funds from the Real Estate Recovery Act are insufficient to pay the judgement?The $100,000 shall be distributed among any aggrieved parties and the commission shall, when sufficient money has been deposited in the fund, satisfy the unpaid claims plus accumulated interest of 6% per year.What happens when a complaint investigation is completed by the Bureau?forwards the investigation report back to the Complaints Office, which send the matter to a prosecuting attorney for review. This attorney determines if formal disciplinary charges should be filed. If there is not enough evidence or the case is not warranted, the case is closed. The prosecuting attorney sends a letter to the complainant notifying the complainant of that action.Licensed Persons Disciplinary Acts: Revocation a permanent loss of license, although a person may apply after 5 years for reinstatement.

Water rights: GeneralDoctrine of Prior Appropriation requires that property

owners obtain permits for use of water. Littoral or Riparian Incorporealrights in a property, rather than possession of land.D from D.U.S.T.S.Demand S from D.U.S.T.S. (1)Scarcity An individual who is employed by an owner of a multifamily residential dwelling doesn't need a license to manage and

maintain so long as that person does not:

• Enter into any leases on the owner's behalf2. Negotiate

the terms and conditions of occupancy with current or prospective tenants3. Hold money belonging to tenants other than on the owner's behalf.4. Have the authority to make decisions.Licensed Persons Disciplinary Acts: Reprimand Documentation of the disciplinary that becomes a permanent part of the licensee's record How should personal property always be transferred?With a Bill of Sale Water Rights: Littoralconcern properties that border bodies of water that are not moving. Along a large navigable lake or ocean, the owner owns to the average high water mark.

Chattels (real vs. personal)personal property or belongings.Real - Annexed to real estate.Personal - Movable and transferred by bill of sale.Personal Propertyis portable, readily movable from one location to another.Attorney-in-Facta competent person acting for another under the power of attorney, carrying with it the responsibilities of a fiduciary. It is not necessary to be an attorney to be an attorney-in-fact.Economic Characteristic of Land: Scarcity How much of this type of property is available? Typically, certain price ranges have a limited number of properties available and other price ranges have too much property available. This affects the price of that property - too little property available makes it more expensive, too much makes it less expensive.

Appurtenances: Generalrights, privileges, and improvements that belong to and

pass with the transfer of the property. Come in man-made or natural.Fructus NaturalesTrees, perennial bushes, and grass that does not require annual cultivation and are considered real property.Leaseholda possession of real estate such as leasing rather than ownership; an estate.Natural Rights: Alluvial Plainan increase of land on a river bank or shoreline by the act of water where soil deposits (called Alluvion) are left.Real Estate Recovery Actestablished on February 19, 1980.Its purpose is to provide relief and compensation for any aggrieved person who has been the victim in a real estate transaction. The victim must have received a final judgment in any court of competent jurisdiction against any person licensed under the Act.If an investigation is required for a PA Real Estate complaint, where is it sent?to the Bureau of Enforcement and Investigation. The investigation is not public information at this time but the complainant is sent a notice that the complaint has been received.Adjudication and OrderThe decision from a case that is heard and rendered after a complaint has been scheduled.Appurtenances: Man-Made· houses, fences, barns, swimming pools, (man-made items that are added to the property).Comminglingplacing other people's money into a personal or operating account of the broker. It is expressly forbidden.The PREC is empowered by the Commonwealth to upholdthe Licensing and Registration Act and to create and enforce Rules and Regulations for their own use.D from M.A.I.D.Damage - · How much damage will the removal of this item cause?If the parties agree that it is personal and there is damage, the owner must repair the damage.Surface Rightsinclude the rights to anything on the land or water.Licensed Persons Disciplinary Acts: Suspension temporary loss of license for a stated time period.The commission may require auditing or education as a condition for reinstating the license.

Types of RE Licenses· Broker· Salesperson· Associate Broker· Broker of record, Partner or Officer· Cemetery Broker· Cemetery Salesperson· Builder-owner Salesperson· Rental Listing Referral Agent· Campground Membership Salesperson· Time Share Salesperson· Out of state licenses Aggrieved persona person who has suffered loss or injury or whose rights were violated.Who needs a license to practice Real Estate in PA?Any person or entity that, for another and for a fee, commission or other valuable consideration does one or

more of the following:· Negotiates with/aids person in

locating/obtaining for purchase, lease, acquisition of interest in real estate· Negotiates the listing, sale, purchase, exchange, lease, time share and similarly designed interest, financing or option for real estate;· Manages real estate· Undertakes to promote himself or itself as a real estate consultant, counselor or house finder;· Undertakes to promote the sale, exchange, purchase or rental of real estate. This does not apply to an individual or an entity whose main purpose is advertising, promotion or public relation work.· Undertakes to perform a comparative market analysis; Economic Characteristic of Land: Utility/UsefulnessHow useful is it? The real estate has certain characteristics that are useful or appropriate to certain buyers such as a 3 bedroom house for a family of four or a property with a loading dock for a commercial business owner.Fixturesomething that once was personal property but has been installed to real property.

Licensed Persons Disciplinary Acts: Fines of up to $1000.

Economic Characteristic of Land: DemandHow badly do people want this piece of property in this location, price range, school district, etc.?If an unlicensed person acts in what ways can they be penalized?· Holds himself out directly or indirectly, as a licensed salesperson, broker, cemetery broker, time-share salesperson, builder-owner sales person, rental listing referral or cemetery company within the Commonwealth without a current real estate license· Conducts business as if he were a licensee· Employs a person who is acting as a salesperson but does not have a license· Acts as a real estate person but has a revoked or suspended license· Advertises as a licensee How many members make up the Pennsylvania Real Estate Commission?Eleven Grounds for receiving judgment under Real Estate Recovery Act · Fraud· Misrepresentation· Deceit in a real estate transaction Pennsylvania law is also very specific about suing a buyer or seller for compensation unless

the person suing is a licensed person.In other words: No

license = No commission or compensation for real estate