Understanding Real Estate Contracts, Deeds, and Property Rights: Q&A, Exams of Real Estate Management

Download Understanding Real Estate Contracts, Deeds, and Property Rights: Q&A and more Exams Real Estate Management in PDF only on Docsity! National Real Estate Questions and answers Unilateral Contract CORRECT ANSWERS✅ Contract containing ONE promise given in exchange for completing an act. NO obligation to act. Bilateral Contract CORRECT ANSWERS✅ Contract containing TWO promises. Example: A listing agreement is a bilateral contract. Client/Principal CORRECT ANSWERS✅ A person who has entered into an agency relationship w/ a licensee & with whom there is a written contract Customer CORRECT ANSWERS✅ Any 3rd party w/ whom a licensee works In-Company Transaction CORRECT ANSWERS✅ Transaction in which the buyer and seller are both represented by the same brokerage. Management-Level License CORRECT ANSWERS✅ A licensee who is employed by or affiliated w/ a brokerage who has supervisory responsibility over other licensees. Statute of Frauds requires the following: CORRECT ANSWERS✅ 1) Certain contracts be in writing to be enforceable, 2) All real estate contracts for the sale of LAND & ALL LEASES for more than one year, options for more than 6 months, must be in writing & signed by all parties. Novation CORRECT ANSWERS✅ Substituting a new obligation for an old one. Also, a transfer of rights and/or duties under contract. National Real Estate Questions and answers If the original party to an agreement is replaced due to novation, are they liable? CORRECT ANSWERS✅ No Mailbox Rule CORRECT ANSWERS✅ Acceptance that becomes effective as soon as it is sent in the mail, unless the contract specified a certain means for delivery. Grantor is the CORRECT ANSWERS✅ Owner Grantee is the CORRECT ANSWERS✅ Buyer Optionor is the CORRECT ANSWERS✅ Seller Optionee is the CORRECT ANSWERS✅ Buyer Lessor is the CORRECT ANSWERS✅ Landlord Lessee is the CORRECT ANSWERS✅ Tenant Vendor is the CORRECT ANSWERS✅ Seller Vendee is the CORRECT ANSWERS✅ Buyer Mortgagor is the CORRECT ANSWERS✅ Buyer National Real Estate Questions and answers Littoral Rights CORRECT ANSWERS✅ rights of a landowner adjacent to a lake Remember "L" - Littoral/Lake Appurtenances are rights that go along with real estate and include: CORRECT ANSWERS✅ Air Rights, Water Rights, & Mineral rights to name a few. Fee Simple (also called Fee Absolute) CORRECT ANSWERS✅ The best interest in real estate recognized by law; it represents the most complete ownership. Life Estate CORRECT ANSWERS✅ The estate CANNOT be passed on to the life estate holder's heirs. Pur Autre Vie CORRECT ANSWERS✅ A life estate that is dependent up the life of another. Estate for Years is a type of leasehold that: CORRECT ANSWERS✅ Has a specific expiration date or specific term. Period to Period is a type of leasehold that: CORRECT ANSWERS✅ Has no specific expiration but the length is specified (like a month to month lease) Joint Tenancy CORRECT ANSWERS✅ 2 or more ownership holders own a fraction of UNDIVIDED interest. Rights of survivorship apply. National Real Estate Questions and answers The types of deeds are: CORRECT ANSWERS✅ 1) Warranty Deed 2) Special (or limited) Warranty Deed 3) Quitclaim Deed 4) Special Purpose Deed 5) Transfer on Death Deed. Warranty Deed CORRECT ANSWERS✅ Offers the greatest protection that a deed can give. Special Warranty Deed (Limited warranty deed) CORRECT ANSWERS✅ 1) Owner warrants only that he has not done harm to the title 2) Covers only the period of time when the sellers owner the property. Quitclaim Deed CORRECT ANSWERS✅ The seller agrees to convey whatever interest, IF ANY, they have in the property. The reason a deed is recorded is CORRECT ANSWERS✅ for protection against a third party. Elements necessary to a valid deed: CORRECT ANSWERS✅ 1) signed & acknowledged by grantor 2) Lists marital status of the grantor 3) Use words of conveyance - also called a granting clause 4) Names & addresses of grantees 5) Acknowledged by Grantor in front of Notary Public National Real Estate Questions and answers 6) Signed in front of two witnesses (in most states) 7) Legal description 8) Delivery & acceptance of deed Lot & Block System CORRECT ANSWERS✅ Subdivision Township CORRECT ANSWERS✅ 36 Square Miles Eminent Domain CORRECT ANSWERS✅ The RIGHT of the government to condemn & take the property. Condemnation CORRECT ANSWERS✅ The PROCESS of the government taking a property by eminent domain. Escheat CORRECT ANSWERS✅ The state takes property upon an owners death if there is no will & no heirs exist. Adverse Possession CORRECT ANSWERS✅ A person takes possession & use of a property belonging to another. Possession must be open, notorious, hostile & uninterrupted for a certain period of time. Abstract of Title CORRECT ANSWERS✅ A complete history of ownership. Encumbrance CORRECT ANSWERS✅ A claim or liability that attaches to the land & is held by one who is NOT the fee owner. National Real Estate Questions and answers Blockbusting CORRECT ANSWERS✅ Encouraging owners to sell their properties because minorities are moving into a neighborhood Steering CORRECT ANSWERS✅ Trying to influence a buyer's housing choice using race, religion, ethinicity, national origin, or ancestory factors as the reasoning. Redlining CORRECT ANSWERS✅ Denying loans in certain areas due to race, religion, sex, familial status, or a disability. The Civil Rights Act of 1866 Covers: CORRECT ANSWERS✅ 1) Race 2) Color 3) Ancestry (it's the only act that covers this) It applies to all property (Real & Personal) There are no exceptions The Federal Fair Housing Act Covers: CORRECT ANSWERS✅ 1) Race 2) Color 3) Religion 4) Sex 5) National Origin 6) Disability 7) Familial Status National Real Estate Questions and answers It applies ONLY to housing & land for housing Exceptions: 1) FSBO 2) FSBO - 4 plex 3) Religious Groups 4) Private Clubs The Federal Equal Credit Opportunity Act applies to: CORRECT ANSWERS✅ 1) Race 2) Color 3) Religion 4) Sex 5) National Origin 6) Age 7) Marital Status 8) Receipt of Public Assistance A real estate broker is a CORRECT ANSWERS✅ Special Agent Dual Agent CORRECT ANSWERS✅ One broker representing both the buyer & the seller in a single transaction A salesperson CORRECT ANSWERS✅ is a subagent of the client, has no direct relationship to the principal, is only responsible to the broker. National Real Estate Questions and answers Puffing CORRECT ANSWERS✅ an opinion or exaggeration of the property's benefits. Fraud CORRECT ANSWERS✅ Intentional misrepresentation of facts Violations of the Sherman Antitrust Act include CORRECT ANSWERS✅ 1) Price Fixing 2) Allocation of the market Exclusive Right to Sell Listing CORRECT ANSWERS✅ 1) Only one broker is authorized to sell 2) the broker receives a commission no matter who finds the buyer Exclusive Agency Listing CORRECT ANSWERS✅ 1) Only one broker is authorized to sell 2) If the owner finds a buyer, no commission is owed Open Listing CORRECT ANSWERS✅ 1) Any # of brokers may be retained 2) The broker who sells the property receives the commission. After a purchaser signs a sales contract, the salesperson must do which of the following? 1 Keep the original contract & give the purchaser a copy the next day. 2. Give the purchaser a copy immediately 3. Mail the purchaser a copy after the statutory 3 day cooling off period National Real Estate Questions and answers A mortgage note must be: 1 a negotiable instrument 2 Signed by the mortgagor 3 Signed by the mortgagee 4 Recorded to be valid CORRECT ANSWERS✅ Answer: 2, Signed by the mortgagor (the borrower) The Federal Truth in Lending Law: 1 Requires a lender to estimate a borrower's approximate loan closing costs before accepting a loan. 2 regulates advertising that contains information regarding mortgage terms 3 prevents brokers from using a phrase like "FHA financing available" in any ad 4 Dictates that mortgage applications be made on specific government forms CORRECT ANSWERS✅ Answer: 2, regulates advertising that contains information regarding mortgage terms The rights of the owner with property abutting the bank of a stream are called: 1 Littoral rights 2 riparian rights 3 avulsion 4 dominant tenenments CORRECT ANSWERS✅ Answer: 2, riparian rights What is the primary purpose of a deed? National Real Estate Questions and answers 1 Transfer of title 2 proof of ownership 3 recordation 4 legal evidence CORRECT ANSWERS✅ Answer: 1, transfer of title Who would NOT need a real estate license? 1 An attorney selling real estate in an estate 2 a salesperson working on a commission for a builder 3 a property management company 4 a friend selling a neighbor's lot for $1,000 CORRECT ANSWERS✅ Answer: 1, an attorney selling real estate in an estate The responsibility for recording a deed lies with the: 1 grantor 2 grantee 3 county 4 state CORRECT ANSWERS✅ Answer: 2, the grantee