Real Estate Law and Property Rights: A Comprehensive Guide, Exams of Real Estate Management

Download Real Estate Law and Property Rights: A Comprehensive Guide and more Exams Real Estate Management in PDF only on Docsity! WV Real Estate Exam solution 100% correct What are the types of fee simple estates? - ANS; Fee Simple Absolute Fee Simple Defeasable Fee Simple Absolute - ANS; The best type of ownership you can get. Fee Simple Defeasible - ANS; Subject to occurrences or non occurrences of specified time. Two types of fee simple defeasible? - ANS; Fee simple determinable 2 Condition subsequent Fee Simple Defeasible - ANS; Will include: so long as, while, during and includes the term reverter. Reverter - ANS; Former owner can take back land with no legal action if land isn't used correctly. Fee Simple Condition to Subsequent - ANS; Will include the terms on condition that and can take land back with legal action. Life Estate - ANS; Limited to the duration to either the life of the holder . Who is the holder of a life estate? - ANS; Life Tenant Who creates a legal life estate - ANS; Established by state law Pur Autre Vie - ANS; For the life of another Dower - ANS; Wife gets land if the husband dies. Curtesy - ANS; Husband gets land if the wife dies. Homestead - ANS; Protected from most creditors during the occupants lifetime. Bundle of legal rights - ANS; 1. Possession of Property 2. Control 3. Enjoyment 4. Exclusion 5. Disposition (sell, will, or transfer of the property) Land - ANS; Ground to Earth Real Estate - ANS; Land + Property Real Property - ANS; Real estate + legal bundle of rights Riparian Rights - ANS; Rivers Littoral Rights - ANS; Lakes own to high water mark. Accretion - ANS; Land build up somewhere due to water. Avulsion - ANS; Sudden loss of land due to nature Emblements - ANS; Crops in the field personal property. Not natural occurring. Annexation - ANS; Personal property becoming real property( putting up a fence). Trade fixtures - ANS; Fixtures associated with a business. Personal property if left after lease. Economic characteristics of real property - ANS; Scarcity Improvements Permanence of investment Situs ( location) Physical characteristics of real property - ANS; IUI ( cheat) Immobility Uniqueness Indestructibility Heterogeneity and non homogeneity - ANS; Uniqueness Common Law - ANS; Judge Involved Statute Law - ANS; Written Law Please vs Ferguson - ANS; Separate but equal Jones vs Mayer - ANS; Supreme Court stopped private clubs that segrated. Title 8 of Civil Rights Act of 1968 - ANS; Prevents the segregation of real estate What is included in the fair housing act of 1968 - ANS; Race, Color, Religion, natural origin, gender, familial status, disability. Abstract title - ANS; The summary report of what the lawyer found during the title search. Abstract - ANS; List of everything liens, encumbrances, and current status. Subrogration - ANS; Insurance company goes after the people responsible for the title issue. Uniform Commercial Code (UCC) - ANS; Common law concerned with personal property transactions. Usury - ANS; Changing more interest than allowed. Discount point - ANS; 1% of the amount being borrowed which are used to increase the lenders yield. Hypothecation - ANS; Using real property as collateral to get a loan. Alienation Clause - ANS; Lender wants to prevent a future purchase of a home at a current interest rate. Straight loan - ANS; Interest only for a few years Deed in Lieu of Foreclosure - ANS; Friendly foreclosure Redemption - ANS; Gives borrowers a chance to redeem their loan. Deficiency Judgement - ANS; If the foreclosure doesn't cover the amount of the loan the bank can personally sue the borrower. Primary Mortgage Market - ANS; Made up of lenders who originate mortgage loans for borrowers. Secondary Mortgage Market - ANS; Loans are bought and sold only after they have been funded. Fannie Mae - ANS; Conventional FHA insured, Va guaranteed loans Freddie Mac - ANS; Most conventional loans Ginnie Mae - ANS; Special assistance loans Blanket Loan - ANS; Covers more than on parcel of land or lot. Wraparound Loan - ANS; Enables a borrow with existing mortgage loan to obtain additional financing from a second lender without paying off the first loan. Open ended loan - ANS; Allows the borrow to withdraw funds from the equity in their home. Market value - ANS; An opinion of a property worth Market price - ANS; The asking, offer, or sales price of a property Progression - ANS; Larger nice home being built will inincrease - ANS; Larger nice home being built will inincrease other homes Who appoints the commission with the consent of who - ANS; Governor appoints and with the senate consent How long are the real commission appointed - ANS; 4 years Application for sales person - ANS; 18 yrs of age High school diploma or equivalent The only way someone from the commission can be removed by the governor - ANS; Official misconduct Can the commission serve more than two consecutive full terms - ANS; No What policy is West Virginia real estate license law under - ANS; Wv Code 30-40 How much can the Wv real estate commission fine an agent - ANS; $1k per day unto the full amount of the commission Continuing education each year - ANS; 7 hours ce each fiscal year License expire on ? - ANS; June 30 of each year How much personal money may a broker have in their account - ANS; Not more than a $100 Fines for real estate from a judge - ANS; Misdemeanor / 2 k a year Implied agency - ANS; Not in written contract Expressed agent - ANS; In written contract Fiduciary duties of an agent ( hint cold AC - ANS; Care, obedience, loyal, disclosure, accounting, and confidentiality. Example of a general agent - ANS; Property manager Example of special agent - ANS; Real estate agent Megans law - ANS; Pertains to sex offenders Exclusive agency - ANS; FSBO agency can find there own buyers and the agent doesn't get commission. Option listing - ANS; Unilateral contract How do you test a lien - ANS; Is the lien voluntary, or innvoluntary then general or specific, and then is the lien statutory or equitable. What are general or specific liens - ANS; General affects all property we own. Specific liens affect certain things like a roof. What statutory or equitable liens - ANS; Statutory on the books and automatic in nature. Equitable a judge decides if we broke the law. Priority of liens go in this order. - ANS; Sheriff, city, municipal utilities, and mechanics liens. Subordination - ANS; Liens cut line. Ad Valorem Taxes - ANS; According to the value Real estate taxes Equalization - ANS; Used to lower or rise assessed values Writ of execution - ANS; Permits the sheriff to seize the property Regression - ANS; Trailer being built in subdivision will lower value of other properties. External obsolescences - ANS; Outside factors that affect value bad neighborhood. Income approach ( hint: given) - ANS; Gross, income, vacancy, expenses, net operating cost. Reconciliation - ANS; Appraisal term for considering all three value approaches. Estate for years - ANS; Leasehold estate that continues for a definite period. Estate from period to period - ANS; Landlord and tenant enter into a agreement for indefinite time. Net Lease - ANS; Tenant pays all properties expenses. General partnership - ANS; All partners participate operation and management of the business and share full liabilities. Tenancy will survivorship means - ANS; The tenancy interest will pass to the surviving tenants upon the death of one. In a land trust the public _______ know the list of beneficiaries. - ANS; Doesn't Define the term devise - ANS; A transfer of real property by will. The descendent is the deviate and the recipient is the devisee. Which type of deed will include "remiss, release,alienate, and convey" - ANS; Special Warranty Deed Why would you use a suit to to quiet a title? - ANS; To clear a defect from the title records. When does a abstract of title provide evidence of a title? - ANS; When it comes with a certificate of title. Title 11 of FIRREA states - ANS; Any federal related transaction will involve a competent and licensed appraiser FIRREA - ANS; Financial Institutions Reform Recovery and Enforcement Act of 1989. USPAP - ANS; Uniform Standards of Professional Appraisal Practice BPO - ANS; Broker's Price Opinion is used a less expensive alternative to an appraisal but less in depth. Appraisal determines - ANS; Opinion of Market Value Market Value vs Market Price - ANS; Market value is opinion of value determine by an analysis of data. Market Price is the property's asking price, offer, or sales price. Anticipation - ANS; Economic principle of of value. Value is created by the expectation that certain events will occur. Law of increasing returns - ANS; Money spent on improvements produced an increase in value. Law of diminishing returns - ANS; No matter the amount of money spend on a house the property value doesn't increase. Plottage - ANS; Adding multiple Lots to create a large lot. Substitution - ANS; Being a similar property . What are the three approaches to value - ANS; The sales comparison approach ( market data approach, the cost approach, and the income approach. Sales comparison approach ( market data approach) - ANS; The value is obtained by comparing the property being appraised. The comparable are adjusted. Most reliable for of the three approaches for a residential home. Elements of the comparison approach - ANS; Property rights, financing concession, market conditions, and condition of sale. What is property rights - ANS; Ex. Owing a the land fee Simple or if the land lease. What is financing concessions - ANS; Financing terms under which a property was sold must be considered. What are Market conditions - ANS; Interest rates, supply and demand. Condition of sale - ANS; Adjustments must be made for motivational factors such foreclosures. Market conditions since the day of the sale - ANS; Adjustments must be made if economic changes have occurred since the sale. Location or area of preference - ANS; Similar properties might differ in price from neighborhood to neighborhood. Physical features and amenities - ANS; Physical features such as structures age, size, and condition. Highest best use - ANS; The most profitable single use of a property. Must contain physically possible, legally permitted, economically or financially feasible, and the most profitable. The cost approach type of appraisal - ANS; To value is based on the principle of substitution. Depreciation - ANS; In a real estate appraisal is the loss of value for any reason. Not the same as deprecation in taxes. What are the Three types of depreciation - ANS; Physical deterioration, functional obsolescence, and external obsolescence. Physical deterioration - ANS; Can be curable or incurable. Curable - painting Incurable- fixing a crack in the foundation. Functional obsolescence - ANS; Obsolescence means a loss in value from the markets response to the item. Ex outdoor plumbing. External obsolescence - ANS; Depreciation caused by negative factors not on the subject property such as bad neighborhoods. What is the easiest way to determine depreciation in a appraisal - ANS; Straight line method also called the economic ave life method. Property's cost divided by the number of years it's expected to last. Hint used to remember income approach - ANS; GIVEN Gross Income Vacancy Expenses Net operating cost Income approach is used in what type of property? - ANS; Income generated property Rate of return is cost - ANS; Capitalization rate Capitalization rate is used for - ANS; To compare other income producing properties. Explain how capitalization rates work - ANS; Net annual income divided by sold price. Annual income is 15k and the property sold for 187,500 the capitalization rate would be 8%. If a property makes annual income of 10k take that number and divide it by .08. What does GRM stand for - ANS; Gross rent multiplier which is used for 1-4 units. What does GIM stand for - ANS; Gross income multiplier which is used for five or more units. How do you determine GRM - ANS; Sales price \ monthly gross income How do you determine - ANS; Sales price\ annual gross income Reconciliation - ANS; Act of analyzing all three approaches of appraisals. Characteristics of value hint dust - ANS; Demand Utility Scarcity Transferability