Georgia Real Estate Exam 2022: Comprehensive Study Guide, Exams of Real Estate Management

Download Georgia Real Estate Exam 2022: Comprehensive Study Guide and more Exams Real Estate Management in PDF only on Docsity! Georgia Real Estate Exam 2022 With Complete Solution Easement by prescription - Easement acquired by continuous open and hostile use of the property for the period of time prescribed by state law Easement by necessity - Easement allowed by law as necessary for the full enjoyment of parcel of real estate .(right of ingress and egress over a grantors land) Rescission - The practice of one party canceling or terminating a contract. Mortgagee - The bank(receiving the house) Tax prorations - Taxes are paid July 1st, 365 days, seller pays the day of closing. Alienation clause - Clause stating that the balance of the secured debt becomes immediately due and payable at the lenders option if the property is sold by the borrower. Prevents the borrower from assigning the debt without the lenders approval. Deed - Does not need to be recorded to be valid. Economic characteristics of real estate ( LIPS) - Location Improvements Permanence of investment Scarcity Fiduciary relationship with the principle (COLDAC) - Care Obedience Loyalty Disclosure Accountability Confidentiality Types of real estate ( SIR MAC) - Special purpose Industrial Residential Mixed use Agricultural Commercial PITI - Principle Interest Taxes Insurance Diminishing returns - The point when additional improvements do not increase value Increasing returns - Produces an increase in income and value Cancel a contract - Stop where you are Recind contracts - Start over back to starting place Servient tenement - The parcel I which the easement runs Dominate tenement - Neighboring parcel that benefits from the easement Lis pendens - A recorded legal document giving constructive notice that an action affecting a particular property has been filed in either state or federal court Pur autre vie - For the life of another Doctrine of prior Appropriation - Determines ownership and use of water Hypothecation - To pledge as security without giving up possession Deed to secure debt - Mortgage Collateral for the loan Lien theory state - Mortgagors retains both legal and equitable title Title theory state - Mortgagor actually gives legal title to the mortgagee and retains equitable title Intermediate theory State - Georgia!! Uses a combination of lien theory and title theory. Deed passes title to the lender(grantee) until the loan is paid in full. Promissory note - The borrowers personal promise to repay a debt according to agreed terms Payments in arrears - Made at the end of a period Usury - Charging interest in excess of the maximum rate allowed by law License activation fee - $45 for individual $75 for a firm $20 goes to the real estate education, research , and recovery fund Dower - The life estate that a wife has in the real estate of her deceased husband Curtesy - Interest the husband has in the real estate of his deceased wife Years support - In Georgia!!! Permanent award of property Homestead - Legal life estate in real estate as the family home Years support - In Georgia!!! Permanent award of property from a descendent estate to surviving spouse or children Homestead - Legal life estate in real estate as the family home RESPA Real estate settlement procedures act - Designed to ensure that the buyer and the seller are both fully informed of all settlement cost Regulation Z Truth in lending act - Requires that credit institutions inform borrowers of the true cost of obtaining credit. Equal credit opportunity act - No discriminating against credit applicants on the basis of the race, color, religion , national origin, sex, marital status, age , or dependence on public assistance CLO - Computerized loan origination Freddie Mac - Buy and pool blocks of conventional mortgages Purchase money mortgages(pmm " - Created when seller agrees to finance all or part of the purchase price . (Seller financing) Package loan - Includes real and personal property Blanket loans - Covers more than one parcel of land(subdivision development) Wraparound loans - Enables borrower with an existing mortgage to obtain additional financing from a second lender without paying off first loan Open end loans - Secures note executed by the borrower to he lender and also secured any future advanced of funds made by the lender Leasehold estate - A tenants right to possess real estate for the term of the lease . Generally considered personal property Gross lease - The tenant pays a fixed rent and the landlord pays all taxes, insurance, repairs, utilities, and maintenance