TRUE OR FALSE REAL ESTATE Flashcards

TRUE OR FALSE REAL ESTATE Flashcards A city could take private land for a park through the right of what?eminent domain "Time is of the essence" means that the contract must be performed within the the time limit that is specified TRUE Sole and separate ownership is known as an estate in severalty TRUE The sales comparison approach would be an appropriate method for appraising a shopping center FALSE (better for residential appraisals) If a party to a contract does not abide by the terms of the contract, that party will be in breach TRUE A lawsuit in which one party to a contract sues the other party to perform the terms of the contract is called Specific performance Limited partners are not liable for any more than the amount in which they invested TRUE An abstract of title is a historical summary of all conveyances and encumbrances for a property TRUE The day of closing always belongs to the seller FALSE (whatever the problem says is who owns the property the day of closing) An addendum is attached to an offerTRUE An option contract is a bilateral agreement FALSE (unilateral) The statute of frauds requires documents to be in writing, while the statute of limitations sets the amount of time that lawsuits can be filed TRUE In a bilateral contract, a promise is exchanged for a promise and and the contract is binding on both parties TRUE The conveyance occurs upon the delivery and the acceptance of a deed TRUE The tenant plays a base rent plus a portion of the sales in what kind of lease?percentage lease (percentage of sale) Recording laws are set at the federal level FALSE (state laws) A competent party is typically considered to be someone who is at least 21 years old, and is sane and sober FALSE (at least 18 years old) The title insurance policy or premium either annually with taxes or once at closing?Once at closing Protection against third parties who make claims against the title is given in the covenant of what?

QUIET ENJOYMENT

If the buyer does not complete all the contractual duties by the time of closing, the seller could choose not sue the buyer TRUE It is the seller's obligation to disclose and remove all lead-based paint FALSE (only to disclose, but not obligated to remove)

Police power, taxation, eminent domain, and escheat are powers of the state that may affect privately owned real property TRUE It is the broker's or salesperson's responsibility to give the buyers the lead-based paint disclosure FALSE (it's the seller's obligation; it's our obligation that everyone is IN COMPLIANCE) Tenancy in common does not allow for unequal shares of ownership amongst the co-owners.

FALSE The only warranty in a special warranty deed is against encumbrances arising during the grantor's ownership TRUE The seller, not the broken or the salesperson, should complete the seller's property disclosure TRUE Two co-owners hold title as joint tenants, one co-owner leaves his interest to his son in a will. When that co-owner dies, his son will have a one-half interest with the original owner.

FALSE A gift of real property by will is known as a devise and a gift of personal property is a bequest TRUE zThe most probable price a property will bring is market price FALSE (market value) An appraisal is required for all federally related loansTRUE Amendments modify a contractTRUE An offer becomes an executory contract upon communication of acceptance TRUE The mortgagee's title insurance policy protects who? the lender or the owner/owner's heirs the lender / mortgagee Mutual agreement means that the parties enter the contract freely and voluntarily TRUE If there is a large supply of an item for sale, will the price increase or decrease?Decrease An option is a contract in which the seller gives the buyer the right to buy or lease the property at a fixed price and fixed term TRUE Asbestos is a naturally occurring, odorless, radioactive gasFALSE (mineral used in fireproofing) If a party to a contract is a minor or was subject to fraud, duress, or misrepresentation, then the contract is void FALSE ( it is voidable) The laws regarding involuntary alienation do NOT presume real property owners regularly inspect their properties for trespassers.FALSE (they do presume that) RESPA regulates lenders, title companies, and real estate licensees TRUE An offer may be countered until there is a Meeting of the Minds TRUE An appraiser who is trying to determine the value of a fireplace should use which principle of value?Contribution

If the condition of the comparable property is worse than the subject property, the appraiser would adjust the comparable which way?upward A grantee receives the least protection with a quitclaim deed TRUE (better for grantor) A lis pendens is a recorded legal document that gives constructive notice of a legal action TRUE Documents are acknowledged or notarized to show the signature was freely given TRUE The term "right of survivorship" is most closely associated with joint tenancy TRUE The grantor becomes the lessor in a sale-leasebackFALSE (in a sale-leaseback, the grantor becomes the lessee) Radon, asbestos, and mold need to be mitigated, abated, or cleaned up TRUE (radon- mitigate; asbestos- abate; mold- clean up) A big house surrounded by smaller house will suffer from what?regression A deed conveys both real and personal property FALSE The chain of title is the succession of conveyance documents from the past (patent title) to the present TRUE A standard title insurance protects against defects found after closing TRUE (if found before closing, it is up to the seller to take care of issues) A quiet title action is used to clear a cloud on titleTRUE A contract that's binding or enforceable in court is validTRUE The common elements are owned by all property owners as

TENANTS IN COMMON

Encapsulation is often a better solution for asbestos than removal (abatement) TRUE Without a lawful objective, the contract is void TRUE The tenant may terminate the lease through constructive eviction if the landlord is in breach TRUE Land use is part of the government's right of escheatFALSE (land use is associated with POLICE POWER, escheat only comes about if we have abandoned our property The new loan amount is listed on the settlement statement as a credit to the buyer TRUE Buyers may waive their right to have lead-based paint inspection TRUE In a purchase agreement, the seller holds equitable title, and the buyer holds legal title FALSE (just the opposite) A material fact is any fact that might change a decisionTRUE (and, once we're aware of it, we have to disclose this to everyone) A condominium is created by filing what? DECLARATION The title report shows all past and present encumbrancesFALSE (only shows current recorded encumbrances, abstract shows all past and present)

Laws regarding the disclosure of stigmatized properties are set at the federal level FALSE RESPA requires lenders to provide a good-fate estimate at the time of closing FALSE (at time of application or three business days after application)

A PARTY THAT WANTS TO GAIN TITLE THROUGH

ADVERSE POSSESSION AND HAS MET THE STATE

REQUIREMENTS WOULD USE: a) a suit to quiet title b)

title insurance A suit to quiet title Ownership recognized by the courts after open, continuous, exclusive, actual, and notorious possession of another's land is ADVERSE POSSESSION (key word is possession/ownership as opposed to use, which is easement by prescription) An implied contract exists when the parties state the terms and show their intentions using words FALSE (express written contracts are this, implied contracts are when actions indicate intent) A quitclaim deed assures title to the property for a limited period FALSE (there are no warranties in a quitclaim) Consideration in a contract must be a stated amount of earnest money FALSE An appraiser who is determining value would use what?market prices (we want historical fact) When a new contract replaces the existing one, it is called a novation TRUE (nova is latin for new, so novation = new contract) For real and personal property to transfer by will, the will must go through probate upon death TRUE An example of voluntary alienation is a deed TRUE Sales prices and rental rates are set using the principle of anticipation FALSE (principle of supply and demand) When calculating prorations on the licensing exam, you should always use a 360-day year FALSE (you will have to be told who owns the property the day of closing and what time frame you should assume they want you to solve for) usually 360-day years, implying 30 days in a month A subordination agreement allows a subsequent mortgage to maintain or change its priority TRUE The right of a landlord to evict a tenant in breach is called actual eviction TRUE The deed with the most warranties that provides the greatest protection for the buyer is the general warranty deed TRUE The tenant plays a base rent plus a percentage in what kind of lease?net lease When a person dies intestate, title to his or her real estate and personal property passes to his or her heirs, as determined by the state laws of descent TRUE According to the statute of frauds, all documents used in the transfer of real estate must be in writing and signed by the parties to be enforceable in court FALSE (exception for lease of 12 months or less)