Real Estate Property Ownership
This lesson covers real estate property ownership.
What is not a basic rights of real property ownership?
The right of adverse possession.
Remainderman definition (The question will involve a real-world death example)
The designated future real property owner in a life estate.
What is an example of a physical characteristic of land?
Fixed Location
Easement definition
The right to use land owned by another person.
What happens when there is intestate death of one owner?
Transferred to heirs.
Statute of frauds definition
A law in each state that attempts to prevent fraud in contracts by requiring them to be in writing.
Declaration of Condominium definition
A very lengthy document that creates a condominium; includes an exact legal description of all the individually owned airspace units as well as the common elements: it establishes the condo association, the condo bylaws and any restrictive covenants on the condo.
What is the time limit for a broker to deposit money into an escrow account?
1 business day
Subordination agreement definition
A document that changes the order or priority of liens.
Do all real estate brokers have to have an office in a fixed location?
Yes
Lis pendes definition
A notice that is recorded in the county at the time a lawsuit is filed against real property to inform any interested party of the pending litigation that could affect the property.
All are necessary components of a real estate contract except…
written signature and notary seal
What is the time period for keeping records in a real estate office?
3 years.
What deed represents the greatest possible legal liability?
General Deed
All are ways of terminating tenancy by entirety except…
failure of both husband and wife to sign off.
You are unable to execute a valid real estate sales contract to…
a person who is 17 years and Unemancipated.
Net Lease definition
a lease in which the tenant pays the rent and most of or all the expenses on the leased propery.
Abstract of Title definition
a summarized list of the recorded claims, conveyances, documents and legal instruments that affect the title to the real property.
What is the largest sum a aggrieved party can claim from the Real Estate Recovery Fund?
$20,000
Special Assessment definition
A tax that is imposed on an owner of real property where the property will directly benefit from some public improvement such as sewers.
All are examples of a specific lien except…
a judgement lien.
Deed in Lieu of Foreclosure definition…
an unofficial type of foreclosure by which the owner, who is usually in severe debt, simply walks away from the burden of the mortgage loan payments by giving ownership of the real property to the lender.
Cooperative Ownership definition…
a type of real property ownership in which a building is typically owned by a corporation that gives a tenant the right of occupancy of a unit in the building through the purchase of shares of stock.
What is a rule involving real estate advertisement?
It must contain the name of the real estate office.
Who provides compensation for a real estate person?
The broker with whom they employed for.
Ownership “in severally” definition…
ownership by one person
What is the object of recording a deed?
To give public notice of ones interest in property.
Who is NOT required to hold a real estate license?
A trustee
Suit to Partition definition…
A court action taken by a tenancy in common or joint tenancy co-owner of real property to have the court dissolve the ownership of the property by forcing the sale of the property and requiring a division of the proceeds according to the proportionate ownership interests.
What is a characteristic of a bilateral contract?
Restriction by 1 party limits the other party.
In a fully amortized mortgage payments are…
to be paid by the maturity of the loan.
Alienation Clause in a mortage
a mortgage provision that requires that if real property on which the loan exists is sold, the borrower is required to pay off the mortgage debt in full.
The type of deed which is most likely to be used to convey title that is less than fee simple?
Special Warranty
Assignment definition…
A transfer of interest in real property from one party to another party.
Latches definition…
The loss of one’s right to enforce a subdivision restriction as a result of unreasonable delay or the failure to take action.
In a unilateral contract which of the following would consistute?
lessee buying property at a guaranteed price.
What is the Superfund Law?
(CERCLA) Comprehensive Environmental Response Compensation and Liability Act—-Requires id of major toxic waste sites.
What is the required signature on a deed?
Grantor
.Mortgagor definition…
The official name for the BORROWER in a mortgage agreement.
. All are requirements for changing from one real estate office to another except…
Retake the license exam
(3 True, 1 Not) What is not a rule on listing agreements, yards signs and commingling?
An open listing can exceed one year.
What is the status of a lease upon the death of the landlord?
It is not affected in any way.
Encroachment definition…
a trespassing situation when one owner’s real property extends beyond the property boundary line.
What is the purpose of a Bill of Sale?
It conveys the sale of personal property.
Deficiency judgement definition…
a mortgage provision that allows a lender to seek a court order to collect additional money from a borrower’s assets when a foreclosure sale of the borrower’s property does not pay debt fully.
Freddie Mac
Federal Home Loan Mortgage Corporation
What is quieting the title?
The removal of a cloud on the title by court action
What is an example of a police power?
fire code
What is the reason lenders include taxes along with principal and interest?
To allow the lien position to remain more secure.
What is the recourse of an unpaid subcontractor?
A lien is placed on the owners property
Servient Tenement definition…
the real property on which an easement exists whereby another party has the right to use that land.
Easement by Prescription definition…
Open, visible, hostile, prolonged use against the owner’s consent.
What is a characteristic of condominium ownership?
It can be individually mortgaged.
Variance example…
exception to zoning regulations
Defeasance provision in a mortgage…
requires lender to removed the mortgage lien from the county records when the borrower pays the mortgage debt in full.
Who can impose a deed restriction?
Grantor
All require course credits for real estate licensees except…
builder owner salesperson
Setback requirement definition…
limits distance from boundary lines.
What is an example of nonconforming use?
Building a 3 story house prior to zoning requirements of 2 story only homes.
Example of personal property
emblements
Means of changing personal property into real property…
owners affixes to the structure
Chattel is
personal property
Assignee is
person who is sold mortgage
Fee Simple Ownership
The highest and most complete form of ownership in real estate that is possible.
Escheat definition…
State exercises what happens, this is when the owner dies intestate without heirs.
Easement defintion…
The right to use land owned by another person.
Riparian rights…
the special ownership rights of an owner whose land lies adjacent to a body of water
Adverse possession definition…
A way a property owner can lose his title… Happens when a non-owner occupies property in an open, visible, continuous manner against the owner’s consent for 21 years in PA.
What is the status of the terms of a lease when the property is sold?
Lease terms remain binding
Characteristic of tenancy by the entirety and other tenancies…
3 or more can not own tenants in entirety.
All are examples of voluntary liens except…
special assessment lien
Acceleration clause definition…
a mortgage provision that indicates that if the borrower defaults on the mortgage the lender may declare the entire debt to be immediately due and payable.
Suit for Specific Performance definition…
A lawsuit filed to make the seller honor the terms of the agreement
Point of beginning definition
Refers to meets and bounds
When is the expiration of real estate licenses?
Last day of May on even numbered years.
Earnest money deposit…
Money offered at initial offer to show buyers sincere desire to purchase.
All real estate agents have to affiliate with a broker except…
rental listing referral agent
When is the conveyance of title of real estate to the purchaser of a property?
Final when “Delivered and accepted”
Eminent Domain definition…
The RIGHT of the government to take public property for public use with just compensation.
Executory Contract definition
A contract in which the parties are in the process of fulfilling the contract but have not yet completed all the terms and conditions.
Tenancy in Common can….
dispose of all his interest without affecting other parties
Promissory Note definition…
A formal IOU the borrower signs to promise they will pay it back over time with interest.
Time limit to apply for real estate license after passing the exam is…
3 years
License interest in real property is…
a personal privileged
Sally and John live together, they have not declared a type of ownership… they will
automatically be tenancy by entirety
All are characteristics of a ground lease except…
lease is usually a gross lease.
Right of Redemption definition…
The opportunity for an owner in default of a debt to recover real property from a tax sale
All are legal instruments through which a title can be conveyed except…
agreement of sale.
PA law on real estate license inactivity is…
5 years.
All are members of the PA Real Estate Comission except…
Director of Division of Real Estate
Reversion definition…
the return of a life estate to the original grantor if no remainderman is designated.
Alternatives of the buyer if the seller breaches the agreement of sale?
Cancel the contract
What is a reason for contract voidability?
Duress or undo