Real Estate Exam III

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Author:
judithakroeger
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95563
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Real Estate Exam III
Updated:
2011-08-03 00:01:44
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Real Estate Exam
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Chapters 11-15
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  1. Freehold Estate
    Interest in real property as an owner
  2. Less-than-freehold Estate
    Interest in real property as a tenant
  3. Types of Leasehold Estates:
    • 1) Estate for years
    • 2) estate from period to period
    • 3) estate at will
    • 4) estate at sufference
  4. Estate for Years
    Tenancy for a specified time span
  5. estate for Years AKA
    tenancy for a fixed term
  6. estate from Period to Period
    repeated time frame w/o termination date
  7. Estate From Period to period AKA
    periodic tenancy
  8. estate at Will
    Tenancy can be terminated at any time without notice
  9. Estate at Sufference
    Leasee retains possession after expiration of lease
  10. requirements for Lease:
    • 1) written
    • 2) Name leasor and leasee
    • 3) description of property
    • 4) Amount of money & manner
    • 5) Time duration
    • 6) Signed by leasor
    • 7) competent persons
    • 8) Renewal and extensions in bold
  11. Security deposits:
    • 1) < 2 mo unfurnished
    • 2) < 3 mo furnished
    • 3) returned <= 21 days
    • 4) never non-refundable
  12. Assignment
    Transfers entire leasehold interest including responsibility to pay
  13. Sublease
    transfers only part of the leasehold interest
  14. Sandwhich lease
    Subleasor is sandwhiched between leasor and sublease
  15. Types of Leases:
    • 1) Gross lease
    • 2) triple net lease
    • 3) percentage lease
  16. Gross Lease
    tenant pays flat amount, landloard pays taxes, maintenence and ins
  17. Triple net Lease
    Tenant pays flat amount + taxes, ins, maintenence
  18. Triple net lease AKA
    Net lease
  19. Percentage Lease
    Tenants rent is based on a percentage of gross sale
  20. Extensin vs renewal:
    • 1) extension has same lease, more periods
    • 2) Renewal changes terms
  21. escalator Clause
    If costs inc then LL can raise rents
  22. Landlord Duties:
    • 1) Implied right of habitability\
    • 2) Advance notice of inspection
    • 3) liability for injuries
    • 4) No interfere with tenants quiet use & enjoyment
    • 5) No discrimination
    • 6) Terminate with 30 day notice
  23. Tenants duties:
    • 1) Pay rent
    • 2) Not damage
    • 3) 30 day notice
    • 4) If negligent, responsibility on tenant
  24. Constructive Eviction
    Tenant unreasonably bothered by LL and decides to vacate
  25. Rental Offset
    Offset of 1 mo rent to fix needed repairs
  26. Rental offset Rules:
    • 1) Written notice & time for LL to fix
    • 2) LL refusal
    • 3) Tenant sepnds 1 mo to fix
    • 4) Limited to 2x/yr
  27. Rental Offset Retaliation
    No eviction notice or reaised rent for 180 days
  28. Unlawful detainer Action
    process of legally removing a tenant
  29. Unlawful Detainer Action process:
    • 1) Serve 3/30 day notice
    • 2) file unlawful detainer action in court
    • 3) LL awarded judgement
    • 4) LL asks for writ of posession
    • 5) sheriff sends eviction notice
    • 6) Sherriff physically removes after 5 days
    • 7) impounds posessions
  30. Writ of posession
    Authorizes sheriff to evict tenant
  31. Serving notice:
    • OR -
    • 1) personal delivery
    • 2) leave copy & mail
    • 3) Post & mail
  32. Mobile Home Eviction reasons:
    • 1) breaks law
    • 2) annoys others
    • 3) Breaks park rules
    • 4) Doesnt pay
    • 5) Govt condems
    • 6) park usage changes
  33. mobile Home Notice
    60 days
  34. On-site residential manager
    16+ units
  35. Property manage Licensing:
    • 1) Off-site = broker
    • 2) On-site = 0
  36. Property Manage employees
    Key employees must be bonded
  37. CPM
    certified property manager
  38. Chapter 12
    Chapter 12
  39. Planning commission
    Citizens appointed by city council to mae land use recommendations
  40. general plan
    state requirement for outlining city/county goals and objectives
  41. general plan establishment Process:
    • 1) Resource analysis
    • 2) formulate community goals
    • 3) implementation
  42. Inclusionary Zoning
    requires builder to designate low & moderate income housing
  43. variance
    Deviation from the zoning regulations for a particular parcel
  44. Standard Subdivision
    Division of property into 5+ parcels
  45. Lot Split
    Division of lot into 2, 3, or 4 parcels
  46. Subdivision Map Act
    Division into 2+ lots for sale, lease or financing now or in the future concerned with physical aspects
  47. Subdivided Lands Act
    Divionsion into 5+ lots for sale, lease, or finaning now or in the future conerned with marketing aspects
  48. land Project
    Right to rescind up to 14 days
  49. Interstate Land Sale Full-Disclosure Act
    developers of 50+ lots out of state advertizing state must provide HUD report
  50. Subdivion Map Act Requirments:
    • 1) 2+ lots
    • 2) Connected lots
    • 3) No 160 acre exemption
    • 4) Local offficials administer
    • 5) No public report
  51. Subdivided lands Act requirements:
    • 1) 5+lots
    • 2) no connected requirement
    • 3) 160 + acres exempt
    • 4) CA RE Commissioner Administers
    • 5) Public report
  52. C.I.D.
    Common interest development
  53. P.U.D.
    Planned unit developments
  54. Types of CIDs:
    • 1) Condos
    • 2) PUDs
    • 3) Stock cooperatives
    • 4) Commuity Apts
  55. PUD
    Own land underneath condo
  56. Stock Cooperative
    Corp formed for the purpose of holding title to a building
  57. Community Apt
    Group jointly purchases undivded interest in apt complex
  58. CID Disclosure requirements:
    • 1) legal Docs of CID
    • 2) notice of pending liens
    • 3) Statement of current owner's assoc
  59. legal Docs of CID:
    • 1) CC&Rs
    • 2) Articles of Inc
    • 3) Bylaws
    • 4) Governing Docs
    • 5) Current Financial Statement
  60. Undivided interest rescind
    72 hours
  61. N.I.R.
    Negitive impact report
  62. E.I.R.
    Environmental impact report
  63. NIR vs EIR
    NIR is for minor projects whereas EIR is for major projects
  64. Unruh Civil Rights Act
    Unlawful to discriminate
  65. Steering
    Directing a prospective principal to certian neighborhoods
  66. blockbusting
    Attempting to create panic by stating minority groups are targeting for purchase
  67. rumford Act AKA
    CA Fair housing Act
  68. Rumford Act
    unlawful to disctiminate
  69. holden Act AKA
    Housing Financial Discrimination Act
  70. Civil Rights Act of 1968 &1988
    fair Housing Federal Law
  71. Jones vs mayer
    Applys discriminatory law on federal level
  72. Ad Valorem
    "According to value"
  73. Proposition 13
    • 1) March 1, 1975
    • 2) 1% of cash value
    • 3) 2% of inflation compounded yearly
  74. Time of Completion
    used as date to start 2% yearly collection on improvements
  75. Proposition 60
    Senior Citizens over 55 can keep base year property tax if transfer in same county
  76. Proposition 90
    Proposition 60 applies cross countys with board approval
  77. NDFA
    • No Darn Fooling Arounf
    • Nov 1, Dec 10, Feb 1, April 10
  78. Tax Sale Process:
    • 1) June 30th - intent to sale
    • 2) 5 year redemption period starts
    • 3) Pay in full or payments (so long as current taxes are not delinquent)
    • 4)No payment = deeded to state
    • 5) So long as state owns, right of redemption
  79. Tax Deed
    Can get title ins after 1 yr
  80. CA Home Owners Exemption
    $7,000 off appraised value for tax purposes
  81. VET Exemption
    $4,000 but not in conjunction with homeowner's exemption
  82. Senior Citizen Exemption
    defer property tax like reverse mortgage
  83. Street Improvement Act of 1911:
    • 1) To install or improve streets
    • 2) Pro rata charges
    • 3) If city bonds, finance
  84. Homeowner Tax Advantages:
    • 1) Interst deductable
    • 2) property taxes deductable
    • 3) 250,000 exemption for 2/5 yr residency
  85. Investor Tax Advantages:
    • 1) intrest & taxes deductable
    • 2) operating expenses deductable
    • 3) Depreciation
    • 4) 1031 tax exchange
    • 5) installment/seller carry
  86. Boot
    Unlike property received in 1031 tax exchange
  87. F.I.R.P.T.A.
    foreign investment in real Property Tax Act
  88. FIRPTA
    10% automatically held for tax purposes
  89. CA Revenue and Taxation Code Section 18805 & 26131
    3 1/3% withheld for foreign taxes
  90. Chapter 14
    Chapter 14
  91. Home Types:
    • 1) Single story
    • 2) 2 story
    • 3) Split level
  92. Mobile Homes and Subdivision Laws
    5+ lots for sale/lease
  93. Legal requirements for Mobile Homes:
    • 1) New Re license can't sell
    • 2) Transportable (hitch and axles)
    • 3) RE license responsible for title completion & delivery
    • 4) Notification of transfer 10 days before sale
    • 5) State fees paid w/in 10 days of sale
    • 6) In Lieu Tax
    • 7) HUD tax if after 1976
  94. Violations of Business and Professions Code:
    • 1) No delivery of certificate of ownership
    • 2) Knowlingly involved in stolen mobile home sale
    • 3) Bounced check for mobile home fees
  95. Mobile Home Conversion:
    • 1) Building permit
    • 2) Permanent foundation
    • 3) Certificate of occupancy
    • 4) Statement stating appurtunent to land
  96. Investment Potential Factors:
    • 1) Risk
    • 2) Liquidity
    • 3) Management
    • 4) Tax aspects
    • 5) Appreciation potential
  97. Chapter 15
    Chapter 15
  98. N.A.R.
    National Association of Realtors
  99. REALTOR
    Only used by NAR members
  100. C.A.R.
    CA Association of Realtors
  101. No need license:
    • 1) principal
    • 2) Attorney in fact
    • 3) Appraiser
    • 4) lawyer
    • 5) Trustee under deed of trust
    • 6) On-site property manager
  102. Appraiser
    Licensed by Office of RE Appraisers
  103. Prepaid Rental listing license
    Special license allowing to supply w/list of available "for rents"
  104. Bulk sale
    Sale of business with inventory
  105. Bulk sale Process:
    • 1) Public notice 12 days before sale
    • 2) Recoding notice of intent to sell bulk
    • 3) Newspaper
  106. Goodwill
    Expectation of continued patronage
  107. Ready yet???
    • Get calculator
    • Get text book

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