to be valid and enforceable, a contract must be
have a legal objective
when an easement lies on a property outside of and adjacent to real property the property benefited is the
dominant estate
in what manner do corporations hold title in real estate
severalty
the right to use another persons property that is temporary revocable and does not run with land is a
license
which of the following are true about easements, they cannot be revoked by the owner of the
servient tenement
an estate less than freehold is known as
leasehold
sue for specific performance?
when seller defaults on a sales contract
main provision of the statute of frauds is
contracts to be in writing
primary purpose of recording real estate sales is to
serve notice of the buyers interest in property
when is a sales contract consummated ?
when the deed for the property has been delivered and accepted
can undesirable deed restrictions ever be removed?
yes through court action
a lease would normally terminate with the lessor
interfering with the lessee's right of quiet enjoyment
how to determine priority of a lean is
the date the lien was recorded
to convey by will is to
devise
why is a deed recorded
to give constructive notice
land and all is permanently attached to it is referred to as
real property
rights in real property that are held for less than a lifetime are called
personal property
lease on a store is defined as
personal property
right of the state to assume ownership of property when abandoned is called a
escheat
rights in real property that are held for less than a lifetime are called
personal property
trade fixture is considered
personal property
landscaping for a house is an example of
fructus naturales
a right, privilege or improvement associated with land is an
appurtenance: runs with the land
riparian rights,
navigable body of flowing water... low water mark.....
item of personal property which is movable and not associated with real property is
a chattel personal
leases and options are examples
of chattel real
a freehold estate which is inheritable is a
fee estate
an estate only limited by the GOVT rights are
fee simple
indefeasible fee estate is known as
fee simple
least restricted form of ownership is a
fee simple
another name for a qualified fee estate is a
defeasible fee '
main type of qualified fee estate is a
fee simple determinable
all life estates originate from and return to a
fee estate
a life tenant can sell mortgage or otherwise convey a
life estate
when a life estate is granted the grantor's interest is a
fee estate
wife right to receive a share of husband's property is upon his death is
dower
another name for a qualified fee estate is a
defeasible fee
indefeasible fee estate is known as a
fee simple
a life tenant may not sell the
fee simple title
during the life of an estate less than freehold the landlord holds
reversion interest
another name for a periodic estate is a
estate from year to year
lease which may be terminated by either party at any time is a
estate at will
another name for an estate at will is a
tenancy at will
a leasehold estate that has specific starting and end dates is
estate for years
the two basic forms of ownership are called
sole and concurrent ownership
the form of concurrent ownership which requires the four unities of possession interest time and title
joint tenancy
acronym for 5 major characteristics of joint tenancy is
PITTS
form of concurrent ownership that tenants hold separate title to undivided interests,
tenancy in common
concurrent ownership only for spouses is
tenancy by the entirety
IN PA forms of concurrent ownership are
joint tenancy, tenancy by the entirety, tenancy in common
IN PA forms of concurrent ownership are
tenants in common
only unity required by tenancy in common is the unity of
possession
an easement which affects only one property is called an
easement in gross
an easement in gross held by an individual is a
personal easement
if a easement is created by a written agreement between landowner and easement holder it is
a private grant
creation of an easement by continuous and hostile possession is called a
prescription
creation of easements popcorn
when the need for an easement no longer exists
vacation
tenancy by the entirety may not be terminated by a partition
partition in kind is accomplished through subdivision of
servient estate under an easement in gross is held by the owner of the land which the easement exists
when two or more persons hold title as tenants in common:
they hold an undivided interest in the property unities of time title and interest need not be present
ad valorem and special assessment tax liens that attach to
real property
lien which attaches to all property are owned by the lienee is called a
general lien
the legislation which establishes priority of liens in most states is
race statutes
liens created by the operation of law are called
involuntary liens
in a condominium development the land and the walls are
common property
law known as the horizontal property act provides for existence of
condominiums
legislation enabling condominiums provides for subdividing real property into
air lots
in a timesharing development the form of organization which gives the buyer ownership in a unit along with others is a
fee simple ownership
in a condo development owners own:
fee title to units, share of landspace between walls in a separate property
a lien in favor of a person who has furnished
which liens have the highest priority real property tax liens
indefeasible is known as a
fee simple
another name for a qualified fee estate is
defeasible fee
fee simple determinable =
condition stated in the deed comes into being or terminated
a freehold estate which is not inheritable called
life estate
when a life estate is granted, the grantor's interest in the property is a
fee estate
indefeasible fee estate is known as a
fee simple estate
a fee estate which is subject to limitations other than the govt rights is a
qualified fee estate
freehold estate not normally inheritable is a
life estate
main type of qualified fee estate is called a fee simple determinable
simple determinable
if a specific form of concurrent ownership is not specified it is presumed to be a
tenancy in common
concurrent ownership limited to spouses is
tenancy by the entirety
two types of concurrent ownership that can be separated by partition include
joint tenancy and tenancy in common
from of concurrent ownership based on concept that each spouse has equal interest in property acquired is
community property
when landowner reserves or retains an easement in a deed,
reservation
deficiency judgment lien is categorized as a
statutory
method of legal description of property which uses a reference to a subdivision map is called description by
recorded plat
GOVT rectangular survey system is based on use of principal
principal meridians and base lines
a summary of all instruments affecting title and all encumbrances in
abstract of title
2 requirements for giving constructive notice of land ownership are g
physical occupation of the property or public recording
status and condition of title under the torrens system is
determined the courts
purpose of recording deeds is to give constructive notice
first step in establishing torrens land title is to file for
quiet action in court
any encumbrances to a title under the torrens system must be entered on
the certificate of title
getting property under the torrens system requires a
title certificate
owner, mortgage are the most common types of
title insurance
title insurance whose coverage decreases as the mortgage is paid down is called the
mortgagee's title insurance
owners title insurance remains in effect only as long as teh owner or the heirs have
interest in the property
sum of all facts on which ownership is founded on is called the
title
to have a valid deed in most states the grantee must be of s
sound mind only
warranties as to title status are provided by
covenants in the deed
warranties in a deed affect the certainty
that a title is sound
deed covenant which assumes the grantor will bear the expense of defending the title against the claims of others
is the warranty of title
deed often used by an agent of principle such a trustee or executor of will the special warranty deed
bargain and sales contain an implied interest in property but no warranty as to title statues
quitclaim not warranty as to the title
agent of principle( only against encumbrances by grantor)=
pecial warranty
gaining title to additional land is accrettion
accrettion
distribution of an intestate decedent's estate is governed by state laws called succession
(the laws of descent)
1 gift of real property in will knows as a
2 legacy is a gift of
personal
devise
owner of property may reclaim land lost by avulsion
largest to smallest subdivision,
block and lotrecorded plat description
,marketable title to real property is
free of reasonable doubt to ownership
instruments such as deeds are recorded in order to provide
constructive notice
covenant which grantor warrants that he/she is owner of the property and has the right to sell is the
covenant of seizin
by means of the covenant against ecnumbrances grantor warrants
all encumbrances are mentioned in the deed
in order to convey title to real property a deed must be
delivered and accepted
type of lease used by retail establishments is a
percentage
provisions for increases in rent with an index lease are contained in an
escalator clause
type of lease for long term commercial leases are
index
the transfer of some of the rights and interest in the leased property is called
subletting
when a leased property is sublet the new tenant is called the
sublessee
lease option is
two separate contracts
in the second through 5 years of lease security deposit may not exceed o
one month's rent
first step in land development is
land acquisition
future growth is regulated by basing local zoning ordinances on a
master plan
non conforming use occurs when a zoning regulation is implemented after a
property is built
permission to be exempt from a specific requirement within a pre existing zoning category is provided through
a variance
changing the zoning to a less active or intensive is is called
downzoning
private land use controls can be initiated through
deed restrictions
deed restrictions are also restrictive covenants
deed restriction which prevents owner from selling is illegal
if a zoning ordinance and a deed restriction have different restriction which one takes precedence,
the more restrictive
a clause in the lease that allows a landlord to gain judgement for such costs are delinquent rent and atty fees is a
a confession of judgement
in a real estate contract the consideration given by the buyer is a
promise of purchase price
anything of monetary value when promised in a contract is called
valuable consideration
under the 1988 amendments act, the maximum amount of civil damages is
50,000
a transaction is exempt from the PA human relations act if it involves the rental of an owner occupied
two unit dwelling
offer and acceptance are required in order to have
mutual agreement
a contract which does not have legal objective is
void
contracts made by persons already declared incompetent are
void
in PA unless the contract states otherwise, if property is destroyed before the deed has passed
the buyer obligated to go through with the sale
in the case of an option contract for real property a broker normally earns a commission
when the option is exercised
land contract, contract for deed and contract for title are all names for an t
installment contract
after an installment contract is closed, the legal title is held
by the seller
when real property is purchased using as installment contract the property taxes are paid and interest on loan payments is deducted for tax purposes
by the buyer
written agreement wherein a seller agrees to sell and a buyer agrees to buy real estate on the terms and conditions set forth therein is
called a contract of sale
deeds cannot be assigned
radon= lung damage
prepayment clause in promissory note
always included
under the title theory approach to hyphecation of mortgaged property. the legal
title is held by the lender
a licensee representing a seller is required to advise the seller than under the real estate seller disclosure act the seller is required to
disclose ALL material defects in the property
an agreement between a rental listing referral agent and a prospective tenant must include
the specifications desired by the prospective tenant
***escalation
clause in a mortgage that allows lender to increase payments or interest rates if certain events take place is an escalation clau
*under the intermediate theory approach to hypothecation of mortgaged property,
legal title is held by the borrower
\borrower in mortgages= the mortgagor
granting clause is for lender
alienation, optional***
clause in a mortgage which waives a priority of recordation is called a
subordination
a provision that limits the liability of the buyer to the balance of the loan is knows as the
nonrecourse provision
in a trust deed the two clauses which create the primary difference from a mortgage are the
power of sale and reconveyance clauses
an amortized loan that also included in each payment an amount to cover taxes and insurance
is called a budget loan
a loan from the seller to the buyer to finance all or part of the purchase price of real property is called a
purchase money loan
negative amortization is possible with
adjustable rate and graduated payment loans
a mortgage in which seller prepays interest on the buyers behalf is called
a buydown loan
ginnie mae provides funds by
guaranteeing securities issued by to others
under a title theory approach to hypothecation of mortgaged property, security for the note is
provided by the lender holding legal title
under lien theory approach to hypothecation of mortgaged property,
security is provided by lender holding a lien
under the intermediate theory approach to hypothecation of mortgaged property, the legal title
is normally held by the borrower*
clause used by the lender to prevent assumption of loan is the
alienation clause
due on sale clause is the same as the alienation**
prepayment penalty in note are optional
escalation clause
allows lender to increase payments or interest rates if certain events take place
prepayment clause is always included
certain events take place, "escalation" lender to increase payments******
document completed by lender that shows how much a loan remains to be paid is a called
certificate of reduction\\
document in which a borrower verifies the amount still owed on a loan and interest rate is ***
a called certificate of estoppel
a clause in mortgage that waives priority of recordation is called a
subordination clause
provision that limits the liability of the buyer to balance of the loan is known as the
non recourse
foreclosure without a court action requires a mortgage
contain a power of sale clause
type of foreclosure associated with a trust deed is a
non judicial foreclosure
a provision that limits the liability of the buyer to the balance of the loan
is the non recourse provision
type of loan which only interest is paid during the term of the loan is
called a term loan
with term loan the principal is paid at the end of a term
term loan is also a straight loan
the maximum amount the interest rate on an adjustable rate loan can increase in one adjustment period
is called the periodic interest rate cap
negative amortization is possible with
adjustable rate and graduated payment loans**
real estate loan which also includes a provision for an installment on some article of personal property
is called a package loan
negative amortization is possible with adjustable rate and graduated payment loans
those who bring borrowers and lenders together but don't make loans themselves are balled mortgage brokers
largest number of loans made by private lenders are made by sellers
short term loans made primarily by commercial banks include commercial and construction loans
the federal home loan mortgage corporation is
freddie mac
the FHA's primary purpose is to insure loans
the amount of loan discount refers to the actual amount of charged to the borrower
in comparing the effects of interest rate and discount points on the lender's yield on a loan one discount is equivalent to 1/8%
the number of discount points refers to a percentage of the loan amount
loan to value ratio is equal to
the amount of a loan divided by the smaller of the sales price or appraised value***** \
with conventional loans without private mortgage insurance the loan to value is limited to 80% (usually)
at closing title insurance is required by the lender
variable closing costs are
transfer tax, origination fee, lenders title insurance
FIXED closing costs
are credit report fee, appraisal fee, survey
NOT a fixed closing costs are
transfer taxorignation feelenders title insurance
the prepayment clause in a promissory note may provide for any of the following except
accelerating the due date of the note.
an acceleration clause in a promissory note permits the lender to
Advance the due date on a note if payments are not made as scheduled
the covenant which will not appear in a mortgage but will appear in a general warranty deed is the
covenant against encumbrances
a mortgagee is permitted to inspect mortgaged property to ascertain that all covenants are being adhered to
by the covenant of re-entry
a mortgagor may be prohibited from allowing a purchaser to assume his/her mortgage loan if the mortgage contains
, a due on sale clausean alienation clause
depending on state law when a mortgagor defaults on a loan the mortgagee may seek
relief through Foreclosure\
when a notice of lis pendens is recorded it is a
notice of pending legal action, and a quasi lien on a property in the notice
payments on items of personal property such as kitchen appliances are part of the monthly payments under
a package loan
adjustable rate loans can result in negative amortization
they contain caps on increases in the interest ratekeyed to a mutually acceptable index
when fraud occurs the injured party has the option to rescind the contract
in the case of a mistake in material fact resulting in no mutual agreement the contract is void
once an assignment is made the person primarily responsible for performance under the contract
is the assignee.
a contract can be assigned
when executory only
to apply for a time share salesperson license an applicant must complete a course
of 30 hours
when a home buyer assumes an existing loan and the lender releases the original borrower it
is called novation
after an installment contract is closed the legal title is
held by the seller ***
when real property is purchased using an installment contract the property taxes are paid and the interest on loan payments is deducted for tax purposes
by the buyer
who can create and own a qualified association?
licensees affiliated with the same broker
rental listing referral agreements must state the the agent
is not a real estate broker or salesperson
a broker must deposit escrow rents received for property management into a
rental management account
to apply for a time share salespersons license an applicant must complete a course
consisting of 30 hours of instruction
investor is considering an income producing property valued at 400,000 using a capitalization rate of 8% how much could the investor afford to pay for the property if a cap rate to 10% is used income
= .08 X 400,000 = 32,00032,000/ .10 = 320,000