Download Real Estate Exam Problem Areas: Questions and Answers and more Exams Real Estate Management in PDF only on Docsity!
Superior School of Real Estate Exam Problem Areas
Questions and answers with 100% Complete solutions
| verified &updated 202 5 | Graded A+
tenements - ✔✔all of the rights and interests that go with the land hereditaments - ✔✔land and all of the tenements that can be inherited appurtenance - ✔✔a right interest of privilege that goes with the land (item in the bundle) accretion - ✔✔a gradual process in which the boundary of riparian land is extended by natural forces reliction - ✔✔the permanent receding of the water which leaves the ground under it dry and exposed
erosion - ✔✔a natural process in which the flow or movement of water gradually produces a loss of riparian land avulsion - ✔✔a rapid or sudden change in riparian land, either loss or gain, resulting from violent natural causes eminent domain - ✔✔the government's power to take private property for public use by paying the owner fair and just compensation condemnation - ✔✔the taking of property under the power of eminent domain police power - ✔✔the power a government has to enable it to fulfill its responsibility to provide for the health, safety, and welfare of the public fee simple absolute - ✔✔provides the greatest form of ownership available in real property
estate from year to year - ✔✔a periodic nonfreehold estate that automatically renews at the end of its period if the parties do not provide otherwise estate at will - ✔✔a nonfreehold estate for an indefinite time and may be terminated by either party instantaneously by giving notice to the other party estate at sufferance - ✔✔not truly a nonfreehold estate, but rather a holdover situation created when the tenant's lease has expired and she fails to vacate the premises tenancy in common - ✔✔two more more persons holding title to a property at the same time with no right of survivorship joint tenancy - ✔✔exists where there are four fundamental unities: time, title, interest, and possession
survivorship - ✔✔the surviving partners automatically take over the share of a deceased partner tenancy by the entirety - ✔✔limited to husband and wife, must have a legal marriage, terminated by death, divorce, agreement by the parties, but NOT separation. Right of survivorship. cooperative (co-op) - ✔✔ownership of shares of stock in a corporation that owns a building containing cooperative apartments. Proprietary lease. Tenants hold stock. encumbrance - ✔✔anything that diminishes the bundle of rights of real property (liens, easements, encroachments, land use controls, zoning ordinances, deed restrictions)
easement in gross - ✔✔not dependent upon ownership of an adjoining property (most prevalent are commercial easements held by utility companies for gas lines, phone lines, etc.) essential elements of a deed - ✔✔must be in writing, grantor must be legally competent, property description, words of conveyance, execution, delivery, and acceptance nonessential elements of a deed - ✔✔acknowledgment, consideration, seal, recording, witnessing, date constructive notice - ✔✔all the world is bound by knowledge of existence of the conveyance of title; public notice; everything from the day you make offer up to, including, recordation of transfer
general warranty deed - ✔✔provides the greatest protection to the grantee and greatest liability to the grantor covenant of seisin - ✔✔provides an assurance to the grantees that the grantors hold the title that they specify in the deed that they are conveying to the grantees, promising they have fee simple title to the property covenant of right to convey - ✔✔the grantor provides an assurance to the grantee that the grantor has legal capacity to convey the title and also has the title to convey covenant against encumbrances - ✔✔the grantor is assuring the grantee that there are no encumbrances against the title except those of record, typically states "that said premises are free from encumbrances" covenant of quiet enjoyment - ✔✔"the grantee, his or her heirs and assigns, shall quietly and peaceably, have, hold, use, possess, and enjoy the premises", the
quitclaim deed - ✔✔contains no warranties whatsoever but simply a deed of release; lowest form of deed; used to clear title defects quiet title action - ✔✔court action to establish disputed rights to ownership (title) and use (easements); resolves questions about adverse possession, prescriptive easements, proof of abandonment title examination - ✔✔only concerned with recorded documents on the public record title assurance - ✔✔the seller delivers marketable title (title that is reasonably free from unknown claims, liens, and defects) title insurance - ✔✔policy insuring for the buyer and lender that the title is free of defects; one-time premium paid at closing by BUYER, insures the promises in the grantor's deed
NC Marketable Title Act - ✔✔creates marketable title when ownership has existed for a 30 - year period of time; attorneys and title companies must prove a 30 - year unbroken and defect-free chain of title actual notice - ✔✔the knowledge a person has of a fact; once it is on public record/once recorded setback - ✔✔the distance from a front or interior property line to the point where a structure can be located examples of public land use controls - ✔✔zoning, urban and regional planning, subdivision regulations, building codes, highway access controls, federal legislation (interstate land sales, environmental laws)
material fact - ✔✔anything that would affect the buyer or seller's decision to enter into or continue with a transaction exclusive buyer agency - ✔✔the buyer is the broker's principal (client) and the agency relationship is between the buyer and the broker; can work orally at first but an agreement must be in writing prior to first presentation of an offer oral buyer agency - ✔✔must be completely non-exclusive; it needs to be in writing ASAP as soon as you ask to dedicate your time sellers/listing agreements - ✔✔must be in writing to start the relationship buyers/buyer broker agreements - ✔✔must be in writing before presenting an offer
termination of listings - ✔✔completion of the agreement, expiration of term, mutual agreement, breach, bankruptcy of the seller, destruction of property, death of principals open listing - ✔✔the seller lists a property with the assistance of one or more brokers; the broker generating the sale is entitled to the commission; if owner sells property, no commission is owed exclusive agency listing - ✔✔the property is listed exclusively with one broker; if the owner sells the property, the broker receives no commission exclusive right to sell listing - ✔✔the seller will owe the listing firm a commission regardless of who sells the property, even the seller express contract - ✔✔either oral or written; a contract in which the parties to the contract have definitely expressed all the terms and conditions as agreed upon between them
DREAM OILS - ✔✔Documents that according to the Statute of Frauds must be in writing in order to be enforceable: deeds, restrictive covenants, easements, assignments, mortgages, options, installment land contracts, leases for longer than three years, and sales contracts sole proprietorship - ✔✔just you (from a tax perspective), tax as regular income, no shelter, no limit of liability corporation - ✔✔legal entity, owned by stock holders, can be one or many, double taxation, "s" corp reports income but doesn't pay it limited liability company - ✔✔single business entity, liability protection, each owner is a manager, reports income but pays no tax partnerships - ✔✔general partner = full liability, limited partner = liability to extent of investment, every partnership has general partners
Delivery of Instruments Rule - ✔✔PAPER in 5 calendar days, MONEY is three banking days upon receipt, CHECK is three banking days upon acceptance; deliver all documents immediately due diligence fee "money rules" - ✔✔ 3 business days from acceptance earnest money "money rules" - ✔✔ 3 banking days from acceptance lease and contracts "money rules" - ✔✔ 3 banking days from acceptance Calendar vs. Banking days - ✔✔PAPER is calendar days, MONEY is banking days (except DDF which is business days)
AFTER 5:00PM on due diligence date - ✔✔seller keeps DDF, seller keeps earnest money deposit negative amortization - ✔✔the payment is insufficient to cover the interest which is added to the loan balance; both a fixed and a variable rate mortgage can have negative amortization but it is most common with ARMs amortized loan - ✔✔a loan where a portion of each payment goes to the principal and the interest LTV concept - ✔✔the percentage of the loan is relative to the home's value or price, lenders base it on the sales price or appraised value (whichever is less), the amount over the LTV is the owner's equity hypothecation - ✔✔the act of pledging real property as security for payment of a loan without giving up possession or title
acceleration clause - ✔✔promissory note clause; bring all of your money now; in the event of default alienation clause - ✔✔promissory note clause; bring all of your money now, at the time of sale conventional conforming loan - ✔✔most secure; LTV is 80% or higher; sold from primary market to secondary market; loan limits based on predominant market value; FNMA and Freddie Mac only buy conforming loans private mortgage insurance (PMI) - ✔✔required on conventional loans over 80% LTV; default protection for lender; charged as an upfront premium and a monthly amount; different rules for elimination
