Missed or Unknown – Flashcards

How many days after notice of discrimination does someone have to file a complaint under Colorado Fair Housing Laws with the Colorado Civil Rights Commission?

What is the monthly payment for an amortized loan with a principal of $10,000, interest rate at 5%, and a 5 Year Loan Term.

$32.50 Loan price/100 x.01

You cannot force them. Just indicate that they refused and move on.

If it was only verbally communicated, the buyer doesn't have much recourse. She could terminate but may lose escrow money if it was past inspection objection. If they can mutually agree to move date back then great, otherwise there isn't much proof.

B. Pay the renewal fee, and pay half the renewal fee for it being over 30 days I) If proper application is made within thirty-one days after the date of expiration, by payment of the regular three-year renewal fee; (II) If proper application is made more than thirty-one days but within one year after the date of expiration, by payment of the regular three-year renewal fee and payment of a reinstatement fee equal to one-half the regular three-year renewal fee; (III) If proper application is made more than one year but within three years after the date of expiration, by payment of the regular three-year renewal fee and payment of a reinstatement fee equal to the regular three-year renewal fee.

C. Death of the sales associate Contract is with broker/employing broker and not the sales associate. As a side, please note that on a purchase contract the rules change. Although the significant damage to the house would likely result in the buyer having the ability to bail on the contract, the death of either party does not automatically terminate the agreement. The agreement is still binding on the estate of the deceased. The reason for this is a contract like a buyer agency or listing contract is considered to be a personal services agreement and as such the death of either party terminates it. However a purchase contract is not a personal services agreement and as such the death of the parties does not automatically terminate the agreement.

- the house has the most beautiful view of the lake Puffing Law ; Legal Definition. The term "puffing" refers to "extravagant claims made by sellers in order to attract buyers." It is the exaggeration of the good points of a product, a business, real property, and the prospects for future rise in value, profits and growth.

Yes, as long as they've disclosed.

sign a security agreement and file a financing statement The Uniform Commercial Code (UCC or the Code), first published in 1952, is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states. The goal of harmonizing state law is important because of the prevalence of commercial transactions that extend beyond one state. For example, goods may be manufactured in State A, warehoused in State B, sold from State C and delivered in State D. The UCC therefore achieved the goal of substantial uniformity in commercial laws and, at the same time, allowed the states the flexibility to meet local circumstances by modifying the UCC's text as enacted in each state. The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property). The UCC-1 "security agreement" establishes a lien against personal property. Rather than filing the "security agreement" the UCC allows a short form called the "financing statement" to be recorded. This occurs in real estate transactions when personal property is sold with real estate; such as the sale of a furnished home or a fully equipped restaurant.

offeror and offeree To have a valid contract, it must be signed and accepted and that acceptance must be communicated to the person making the offer before the contract deadline.

a remainder interest holder purchased the life tenant's interest

implement a local master plan Zoning ordinances control the type, location and density of building. This is why you often do not see commercial enterprises in residential areas, or apartment complexes in single family home areas. These restriction are detailed in local master plans and enforced by zoning ordinances.

a homeowner Inverse condemnation is a lawsuit brought by a property owner seeking compensation for land taken for a public use by a government entity with eminent domain powers. Eminent domain is the taking of private land for public use with payment of compensation by a government entity. Inverse condemnation actions are usually brought when the government has limited use of private land to an extent that the value of that land is greatly reduced, or where the government has allowed the public to make use of private land. Inverse condemnation may be a direct, physical taking of or interference with real or personal property by a public entity. For example, inverse condemnation liability has been found due to flooding, escaping sewage, interference with land stability, impairment of access, or noise from overflying aircraft.

1 transaction every 24 months If your client(s) sold their main home and made a profit, they may be able to exclude that profit from taxable income. Here's how: Individuals can exclude up to $250,000 in profit from the sale of a principal residence (or $500,000 for a married couple) as long as s/he has owned and lived in the home for a minimum of two years. Those two years do not need to be consecutive. In the 5 years prior to the sale of the house, s/he needs to have lived in the house for at least 24 months in that 5-year period. This 2-out-of-5 year rule to can be used to exclude profits each time a principal residence is sold or exchanged. Generally, the exclusion can be claimed only once every two years. Some exceptions do apply.

Buyer's responsibility because she had missed the inspection deadline. The buyer has no recourse. After the inspection deadline passes, the buyer has no recourse to object to a pre-existing defect. Should a defect occur after the inspection deadline, the seller would have responsibility for the repair as per the terms of the purchase agreement.

RESPA applies to nearly all first loans on residential up to four family properties including construction loans Respa Applies to all loans except: - Business, commercial, or agricultural - temporary loans, such as construction (unless lender issues commitment for permanent financing - loans for vacant property in which the financing won't be used to build improvements. (if there will be improvements built in 2 years, repsa applies) - Assumptions - Conversions - Transfer of loan in secondary market

B. seller is responsible for the acts of this agent and is liable to the buyer The seller and the broker are responsible for these acts. After satisfying the buyer, the seller could sue the broker.

Indemnification Here is a definition of indemnification from The Free Dictionary: "To compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by the person." Agent duties: Loyalty Confidentiality Disclosure Obedience Reasonable Care and Diligence Accounting Honesty is required in all client/customer transactiosn

limited common element Anything that is part of the unit; stairs, balcony, etc; are limited common elements.

General warranty Because the grantor GUARANTEES that they have the right to pass title.

Request if a CERCLA assessment report has been issued in the prior 2 years making the property owner innocent of past environmental liabilities as per the Brownfield Revitalization Act Some would say the "choose the longest answer" strategy would lead you to the correct answer on this question and they would be right. A better technical explanation is CERCLA is more commonly known as the Superfund law. CERCLA generally says that all current and past owners of a property may be held responsible for environmental cleanup regardless of whether any particular owner was responsible for the contamination. Recognizing that this could a chill on anyone wanting to purchase industrial parcels, the government among other laws passed the Brownfields Revitalization Act. Brownfields is a term for contaminated properties. This act is an amendment to the federal Superfund law, which provide for BFPP (bona fide prospective purchaser) status for new buyers. This status provides assurance to lenders that the borrower will not be liable and will not affect their ability to repay the lender. Attaining BFPP status requires the client to jump through a number of hoops such as conducting a Phase 1 environmental assessment, but a lender would likely first ask if BFPP status has already been granted.

None of the above With a VA loan the seller can pay all closing costs, the funding fee and pay off the veteran's debts. The maximum amount that the VA will guarantee varies by region of the country, but there is no maximum loan amount.

The changes must be allowed as long as the tenant pays for it Owners are not required to allow the tenant to make modifications to a unit that the law deems "unreasonable." An unreasonable modification would be one that is not related to the person's disability — the installation of a dishwasher, for example. Whether a modification is reasonable must be evaluated on a case-by-case basis guided by previous HUD decisions and decisions made in federal court. However, federal fair housing laws make it illegal for owners to refuse to permit tenants to make reasonable modifications to their unit if the tenant is willing to pay for the changes. The reasonable modification process is a mutual search for a solution. More info: A housing owner must allow a person with a disability to make reasonable physical modifications to a unit if needed in order for that individual to fully use and enjoy the housing unit. Examples of modifications might be the installation of grab bars in the bath by someone with a physical disability or visual (flashing light) fire safety devices for an individual with a hearing loss. Private rental housing Owners may require that the modifications be completed in a professional manner and be in compliance with all applicable building codes. In addition, owners may require that the tenant restore the unit to its original condition before vacating. Publicly-assisted rental housing In publicly-assisted housing which is covered by Section 504 - including public housing owned and operated by Public Housing Authorities and other HUD assisted housing- the landlord is often required to make, and pay for the modifications if the cost is not prohibitive. Housing Choice Voucher rental assistance A private landlord participating in the Housing Choice Voucher program is generally not required to pay for modifications but must permit them. However, the tenant can request that the PHA administering the Housing Choice Voucher program provide a "reasonable accommodation," and pay a higher rent for the unit, in order to allow the landlord to pay for some modifications to the unit if the landlord agrees to do so.

reversionary interest Bob retained a reversionary interest. It reverts to Bob or his heirs when Sally dies. A reversion occurs when a property owner makes an effective transfer of property to another but retains some future right to the property. A reversion differs from a remainder because a reversion arises through the operation of law rather than by act of the parties. A remainder is a future interest that is created in some person other than the grantor or transferor, whereas a reversion creates a future interest in the grantor or his or her heirs. If Sara's transfer had been "to Shane for life, then to Lily," Lily's interest would be a remainder.

Tenancy in common Joint tenancy has the rights of survivorship and the other two are leasehold estates and have no right of ownership. Tenancy-in-common means they can give, will,or sell their percentage of ownership to whomever they please without disturbing the other owners interest.

voidable A voidable contract, unlike a void contract, is a valid contract. At most, one party to the contract is bound. The unbound party may repudiate the contract, at which time the contract is void. An option to purchase is a voidable contract as the holder (buyer) of the option can choose to execute or not execute the agreement whereas the seller of the option is bound to its terms. Another way to look at it is: an agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a Voidable Contract. A contract can become voidable when the consent of one or more of the parties to a contract is obtained by coercion, undue influence, misrepresentation or fraud an agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a voidable contract. This is the reason a contract with a minor is a voidable contract by the minor or a minor's legal representatives (the minor by him/herself does not have legal capacity to enter a contract) and not a void contract.

license A license gives a temporary use that is different from the zoning of a property or properties. It is a personal, revocable, nonassignable right, and is not considered an interest in the land, and it terminates upon the death of either party, or the sale of the land.

the contract remains valid and enforceable The seller's heirs are responsible for seller's actions.

writ of execution Writ of execution: a judicial order that a judgment be enforced. Writ of attachment: A writ of attachment is a court order to "attach" or seize an asset. It is issued by a court to a law enforcement officer or sheriff. The writ of attachment is issued in order to satisfy a judgment issued by the court. Lis Pendens: In United States law, a lis pendens is a written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it. The notice is usually filed in the county land records office. ... Lis pendens is Latin for "suit pending".

It is an enforceable contract and Rockwell Realty is entitled to a commission. The postmark establishes that the contract has been accepted.

3 The law is very clear on this point. RESPA (Real Estate Setlement Procedure Act) prevents lenders from holding too much money in an escrow bank account. This means they can only charge the minimum amount, and then the regular monthly charges for the escrowed items. However, they are permitted to charge the full amount if the taxes are due immediately or within 60 days of the closing. The basic rule of thumb is the mortgage holder can hold no more than three months of payments at any one time. Just how do you determine how much you need to fund the escrow account with at closing? Take all the yearly reserves required by the lender to be escrowed. This can include taxes, property insurance and sometimes other recurring costs. Divide the resulting number by 12 months. Then, multiply the monthly payment amount by the number of months required by the mortgage holder to go into escrow. The amount of fund required upfront into escrow at closing depends upon how near tax time is to the closing date. If it's within 60 days of tax time, the entire year of payments may be required at closing. If taxes are paid at closing, no more than 3 months will be required to be escrowed for next year's tax payments.

identify the broker's "escrow or trust" account including licensed name, broker's name, type of account

No, this is outside the scope of permitted activities for a holder of a real estate license This violates the Conway-Bogue court decision which in Colorado binds the conduct of agents. Agents are recognized authorities at conducting real estate transactions. We are not experts at tax and title matters. Those are within the recognized legal expertise of accountants, title examiners and lawyers. A real estate broker is expected to recommend to clients they seek expert advice when the matter is outside their area of expertise.

impossibility of performance Impossibility-of-Performance Doctrine is a principle whereby a party may be released from a contract on the ground that uncontrollable circumstances have rendered performance impossible.

Truth in Lending Act What is the right of rescission? The right of rescission is a consumer protection law found within the Truth in Lending Act Truth In Lending Act -- Regulation Z The Truth in Lending Act (TILA), Title I of the Consumer Credit Protection Act, is aimed at promoting the informed use of consumer credit by requiring disclosures about its terms and costs. In general, this regulation applies to each individual or business that offers or extends credit when the credit is offered or extended to consumers; the credit is subject to a finance charge or is payable by a written agreement in more than four installments; the credit is primarily for personal, family or household purposes; and the loan balance equals or exceeds $25,000.00 or is secured by an interest in real property or a dwelling.

2 bedrooms, large lot, nothing down Since nothing is a specific amount and the down payment is one of the trigger items.

Valuable consideration Explanation Athough consideration is an essential element of a valid deed, the law makes no distinction as to the nature of consideration. A property may be deeded for $1 or "for love and affection" or for whatever consideration the grantor considers acceptable.. Although it is recommended that a deed be recorded, in Colorado it is not required. The grantee protects his interest in the property by recording it - making the ownership transfer a matter of public record. Acknowledgement is also recommended, and usually required for it to be recorded. Required is: the signature of the grantor, words of conveyance (granting clause), that it be in writing, that the grantee is named, consideration (payment), a description of the ownership interests being conveyed, a legal desciption, delivery of the deed and acceptance by the grantee. In Colorado real estate, there are several types of deeds, depending on the type/amount of protection given and received from the seller and buyer. From the Colorado Real Estate Manual: Types Of Deeds There are four major classifications of deeds: (1) General warranty deed, (2) Special warranty deed, (3) Bargain and sale deed, (4) Quitclaim deed. The types of deeds differ solely in the degree of protection that the grantor (seller) promises or warrants to the grantee (buyer). No type of deed transfers any greater or lesser interest than another. For example, if a grantor conveys title in fee simple by a general warranty deed, the same fee simple ownership is conveyed as if he or she had used a quitclaim deed. However, the general warranty deed grantor promises to defend against any loss incurred due to any title defect, whereas transfer by quitclaim deed contains no such warrant. 1. General Warranty Deed. A deed in which the grantor warrants or guarantees title against defects that existed before the grantor acquired title or that arose during the grantor's ownership. It does not warrant against encumbrances or defects arising from the grantee's own acts. The usual covenants or warranties contained in a general warranty deed are: a. Covenant of seizin. Guarantees the grantor's ownership and that he or she has the right to convey it. The fact that the property is mortgaged or is subject to some restriction does not breach this covenant. b. Covenant against encumbrances. Guarantees that there are no encumbrances or claims against the property except those specifically excluded in the deed. c. Covenant of quiet enjoyment. Guarantees that the grantee will not be evicted or disturbed in possession of the property. Threats or claims by a third party do not breach this covenant. The grantee would have to actually be dispossessed before being entitled to seek recovery under this covenant against the grantor. d. Covenant of further assurance. Guarantees that the grantor will procure and deliver any other instruments that are subsequently necessary to make the title good. e. Covenant of warrant forever. Guarantees that the grantee shall have title and possession to the property. Sometimes considered part of "quiet enjoyment". The first two covenants relate to the past, and generally do not generally "run with the land" - meaning that only the current grantee may sue the grantor for a breach. The last three covenants protect against future defect and are said to run with the land - allowing any subsequent grantee to seek remedy for breach against any previous grantor. According to Colorado statute, "Covenants of seizin, peaceable possession, freedom from encumbrances, and warranty contained in any conveyance of real estate, or of any interest therein, shall run with the premises, and inure to the benefit of all subsequent purchasers and encumbrancers." (38-30-121 C.R.S.) 2. Special Warranty Deed. The grantor of a special warranty deed warrants the title only against defects arising after the grantor acquired the property and not against defects arising before that time. 3. Bargain and Sale Deed. Technically, any deed that recites a consideration and purports to convey the real estate is a bargain and sale deed. Thus, many quitclaim and warranty deeds are also deeds of bargain and sale. Bargain and sale deeds often contain a covenant against the grantor's acts, whereby the grantor warrants only that the grantor has done nothing to harm the title. This covenant would not run with the land. Examples of bargain and sale deeds with a covenant against the grantor's acts are an executor's deed, an administrator's deed, and a guardian's deed. 4. Quitclaim Deed. The grantor of a quitclaim deed warrants absolutely nothing. A quitclaim deed conveys the grantor's present interest in the land, if any. A quitclaim deed is frequently used to clear up a technical defect in the chain of title or to release lien claims against the property. Examples of such deeds are correction deeds, and deeds of release.

Make demand for a deed of reconveyance and sue to enforce it, if it is not forthcoming

The property may be returned to the original owner A deed restriction is a type of private agreement restricting the use of real estate. Such restrictions are usually listed within the written deed document relating to the property, and should be noted if the property is to be sold or transferred. A deed restriction can also place limitations on the title to the property, such as when a seller wishes to sell their property according specific conditions.

Refinancing of your primary residence No 3-day right on any of the approved contracts. Only on refinances.

the listing agent should fully disclose all information to the seller

The owner withdraws the counteroffer before it is accepted

realty Real property (Realty) includes that which is affixed to the land, here, the pipeline. Real property and realty are synonymous. Personal property are items not fixed to the land. A riparian right is a form of water right. Emblements are crops. .

personalty Any mineral that has been removed from below the surface is personality.

higher splits typically include higher monthly office fees

results in Moe and Joe being joint tenants with each other and tenants in common with Charles When Curly sold his interest that terminated the joint tenancy with Moe and Joe, and Charles has tenancy in common with Moe and Joe, and Moe and Joe continue to be joint tenants.

Add an escape clause to the purchase contract An Escape Clause is a seller contingency in purchase contract which allows the seller to accept a buyer's contingent offer to purchase the property, while allowing the seller to continue to market the property.

a property manager The specific duties of a residential broker will normally make them a special agent. Whereas the wider duties of a property manager generally requires them to be a general agent.

Tom had a life estate in the home.

They are tenants in common Explanation Once the joint tenancy has been broken by the sale of the property then it is tenancy in common.

receives nothing The contract was never executory; no commission earned.

When the buyer's broker is notified, that the offer has been accepted by the seller Standard contract law states that a contract must be signed and accepted to be binding. A signature alone is not sufficient to constitute valid acceptance: the accepting party must also communicate acceptance to the party who made the last offer or counteroffer. This communication is key. If the listing party signs the contract, sends an email communicating acceptance to the buyer broker and mails the signed contracts. The contract would have been accepted before the signed contract was delivered to the buyer's party. Although receipt of a signed contract is a method of communicating acceptance, it is not the only one. When it is used, acceptance would have typically occured when the buyer's representative, their broker, received the contract, not when the broker returned copies to his/her client.

A mortgage's priority is determined by the date on which it was executed The key word making A the correct answer was the word "executed". A mortgage is "executed" on the date it is signed by both parties. Yet its priority, should the loan go into default, is determined by the date it was "recorded" at the County Clerk's office. Since nobody does closings at the Clerks office, the recording date is almost always after the date upon which it was signed. Therefore A was the correct answer as the only statement that was wrong.

Contact the listing broker and inform her of the problem.

no action taken Loan fraud can also result in disbarment by HUD from all Federal programs, large fines and federal prosecution. Virtually all loan programs are affiliated with the Federal government in either the primary or secondary mortgage market, disbarment can mean the end of a career in real estate, lending or related fields. (REM 15-18)

Regulation Z

A certificate of licensing history from the other state's real estate licensing authority A certificate of licensing history that indicates the licensee's current status. Any complaints and disciplinary actions taken against the individual must accompany an application for a real estate license in a new state.

215-230 Days

A real estate option is a specially designed contract between two parties (a buyer and a seller). The seller offers the buyer the option to buy a property, for a specified period of time at a fixed price. The buyer purchases the option to buy or not buy the property during the specified time period. For the right of this option, the buyer pays the seller an option premium. If the buyer decides to buy the property (in other words, exercise the real estate option), the seller must sell the property to the buyer according to the terms of the preexisting contract.

When the duties performed by that person would not normally require a real estate license The Colorado Real Estate Commission states that a referral fee payment is permissible provided that an unlicensed person not perform duties requiring a license, and that the fee be a reasonable amount according to the circumstances.

Deeds, notes, trust deeds, mortgages Deeds, notes, trust deeds and mortgages need not be retained. Listings, settlement sheets and documents that require the signatures of the parties, must be retained for four years. Things that are recorded need not be retained.

Seller Agency b. Broker Cleary advised Seller Samuel as to the counter offer. Only a broker fiduciary relationship such as Buyer or Seller Agency can act as an advocate and coach a client on a transaction. Transaction Brokers have a non-fiduciary working relationship and as such cannot advocate on behalf of a client.

valid unless voided A voidable contract, unlike a void contract, is a valid contract. At most, one party to the contract is bound. The unbound party may repudiate the contract, at which time the contract is void. An option to purchase is a voidable contract as the holder (buyer) of the option can choose to execute or not execute the agreement whereas the seller of the option is bound to its terms. Another way to look at it is: an agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a Voidable Contract.

Buywell Realty The minimum is the employing broker's name (the firm, not the person) Chapter 2 - CREC Manual Rule E-8. Advertising "A real estate licensee who performs any act requiring a license, including advertising services or advertising property belonging to another, shall do so in the name of the employing broker;...."

only the broker under whom he or she is licensed An agent may represent the broker who employees him; the broker represents the seller.

collect deposits from the purchasers Explanation The listing broker on behalf of the brokerage firm is authorized by the seller to collect and hold earnest money as a neutral escrow agent.

An unlicensed assistant may be paid a commission by a licensee, based on the success of the transaction This question asks for FALSE not TRUE

125 days For residential properties, the public trustee schedules the sale 110-125 days ( 215-230 days for agricultural) after the initial foreclosure action was recorded. The notice of sale is published in a local newspaper for 5 weeks. The public trustee also mails a copy of the notice to the borrower. The public trustee typically conducts the sale at the courthouse. At the sale, the public trustee reads the written bid submitted by the lender, and any party may bid. If anyone other than the lender is the winning bidder, that person must deliver the bid amount in cash or cashier's check to the public trustee. The winning bidder is given a certificate of purchase.

False * CP-42 Commission Position on Apartment Building or Complex Management The Commission recognizes that owners of apartment buildings or complexes will engage the services of real estate brokerages or unlicensed, on-site managers, or both. An "owner" includes either a person or an entity recognized under Colorado law. The owner must have a controlling interest in the entity formed by the owner to manage the apartment building or complex. In the instance of an entity, the "owner" may form a separate entity to manage the apartment building or complex. The ownership entity and the entity formed by the owner to manage the apartment building or complex must be under the control of the same person or persons. Pursuant to §12-61-101(2)(b)(XII), C.R.S., a regularly salaried employee of the owner of an apartment building or complex is permitted to perform customary duties for his or her employer without a real estate broker's license. The unlicensed, on-site manager must either report directly to the owner or to the real estate broker, if a real estate broker is engaged to manage the property. The Commission views the following to be customary duties of an unlicensed, on-site manager: 1. Performance of clerical duties, including gathering information about competing projects. 2. Obtain information necessary to qualify perspective tenants for a lease. This includes obtaining and verifying information regarding employment history, credit information, references and personal information as necessary. 3. Provide access to a property available for lease and distribute preprinted, objective information prepared by a broker as long as no negotiating, offering or contracting is involved. 4. Distribute preprinted, objective information at an on-site leasing office that is prepared by an owner or broker, as long as no negotiating, offering or contracting is involved. 5. Quote the rental price established by the owner or the owner's licensed broker. 6. Act as a scrivener to the owner or the broker for purposes of completing predetermined lease terms on preprinted forms as negotiated by the owner or broker. 7. Deliver paperwork to other brokers. 8. Deliver paperwork to landlords and tenants, if such paperwork has already been reviewed by the owner, or a broker or has been prepared in accordance with the supervising broker's instructions. 9. Collect and deposit rents and security deposits in accordance with the owner's lease agreement or the brokerage firm's written office policy. 10. Schedule property maintenance in accordance with the brokerage firm's management agreement or the owner's lease agreement. If the owner has executed a Power of Attorney form or a written delegation of authority that authorizes the unlicensed, on-site manager to sign and execute leases on behalf of the owner, the unlicensed, on-site manager may execute those without possessing a real estate broker's license. Brokers supervising unlicensed, on-site managers with this authority are expected to review the executed documents to ensure compliance with lease terms, management agreements, local, state and federal laws, including the real estate brokerage practice act and Commission rules. Employing brokers need to be especially aware of their supervisory duties under the license law. Supervisory duties apply whether the on-site manager is an employee or independent contractor of the broker or brokerage firm, or if the on-site manager is a regularly salaried employee of the apartment building or complex owner. The employing broker should have a written office policy explaining the duties, responsibilities and limitation on the use of on-site managers. This policy should be periodically reviewed with all employees.

$291.42 debit to the seller, credit to the buyer $127,538 X .085 = $10,840.73 / 12 = $903.394 / 31 = $29.14 X 10 = $291.42 debit seller, credit buyer. Please note that on assumed loans interest is calculated in a unique way - Loan balance x annual interest rate = total annual interest / 12 x the number of days the seller owned the property in the month of closing.

A District Attorney Since the Real Estate Commission only has jurisdiction over people with licenses, someone performing a licensed activity without a license would be a criminal matter prosecuted by the district attorneys. The Real Esatte Commission can work with District Attorneys in the preparation of cases. What the Real Estate Commission can do is: The Real Estate Commission has the power upon its own motion to investigate any licensee's real estate activities. If a written complaint is filed, the office is compelled to investigate. If the complaint against the licensee is of such a serious nature that it may result in disciplinary action against a licensee, a hearing will be held before an administrative law judge. The judge is appointed by the Department of Personnel and Administration. The administrative law judge will make an initial decision of revocation, suspension, censure, or dismissal. Education courses, probation, and fines can also be mandated. If written objections are not filed with the Commission within 30 days, the initial decision becomes final. If written objections are filed, the Commission may adopt the findings and initial decision of the administrative law judge, modify the disciplinary action, or refer the matter back for rehearing. The Commission can also issue letters of admonishment in instances where conduct does not warrant formal disciplinary proceedings.

Explanation The amount due from the buyer appears on a closing statement as a credit to the buyer. This is a receipt for the money that the buyer has already paid. Remember that the closing is over!

Doctrine of prior appropriation Water rights in Colorado are based upon the doctrine of prior appropriation, unless sold the individual who had the first rights to that water retains those rights.

Condemnation Condemnation can convert water from agricultural to domestic use.

a kitchen sink Explanation Everything but the kitchen sink which is considered real property. Personal property, roughly speaking, is private property that is moveable as opposed to real property or real estate. Personal property may also be called chattels or personalty.

the aggrieved person Explanation An aggrieved person may file a discrimination suit in federal court. If a complaint was first filed with HUD, the federal court generally waits to hear the results of the hearing held by the HUD Office of Equal Opportunity

you do not discriminate in advertising Explanation A seller should not discriminate for any reason but may, so long as the seller does not use a real estate broker, doesn't discriminate in advertising and no more than one dwelling in which the owner was not the most recent resident is sold during any two year period.

The fee simple absolute is the greatest estate that can exist in land, the highest and most complete form of ownership. It is of potentially infinite duration and represents the whole "bundle of rights."

A fee simple estate may be qualified when it is transferred from one owner to another. For example, in a deed, the grantor may specify that the grantee's estate will continue only as long as a certain condition is met, or until a certain event occurs.

An estate for life is a freehold estate whose duration is limited to the lifetime of a specified person or persons.

leasehold estates. owner is a tenant

During the term of the lease, the landlord's interest may be referred to as a leased fee

is the property a spouse owned before the marriage, together with any property he or she acquires during the marriage by inheritance, will, gift, or purchase with separate funds

All other property the husband or wife acquires during the marriage

In most states that do not have a community property system, married couples may hold title to property as tenants by the entirety. A tenancy by the entirety (sometimes called tenancy by the entireties) involves the right of survivorship and is quite similar to a joint tenancy, but there are some differences. For one thing, a tenancy by the entirety can only be created by a married couple. Also, a tenant by the entirety cannot convey his interest without the consent of the other tenant (the spouse).

Shares in a corporation. A security is an ownership interest that represents only an investment in an enterprise, without managerial control over it. Securities are regulated by the federal government through the Securities and Exchange Commission (SEC), and also by some state governments

A real estate investment trust (REIT) is an entity created by investors to finance large real estate projects. The Internal Revenue Code offers tax benefits to real estate investors who organize their business as an REIT. An REIT must have at least 100 investors and at least 75% of its investment assets must be in real estate. Shares in an REIT are securities, subject to federal regulation.

are aspects of the condominium property that all of the unit owners have the right to use, such as the driveway, lobby, courtyard, or elevator. The land itself, the roof, and any recreational facilities such as a swimming pool are also considered common elements.

are reserved for the owners of certain units. For example, an assigned parking space would be a limited common element. A feature such as a balcony, which is designed for use with a particular unit but is outside of the unit itself, would also be a limited common element.

A townhouse development consists of multi-story, single-family homes built on small parcels of land. Townhouses may or may not share walls with neighboring units, and the developments sometimes have owners associations similar to those in condominium developments.

The process of transferring ownership of (title to) real property from one party to another is called alienation

This type of deed gives the greatest protection to the grantee.

are guarantees against title defects. If the covenants are breached, the grantee has a right to sue the grantor for financial compensation.

means possession of property under a claim of ownership. The covenant of seisin is a promise that the grantor actually owns the property interest that's being transferred to the grantee.

is a promise that the grantor has the power (the legal capacity) to make the conveyance. Note that this covenant is fulfilled if the person executing the deed is an agent of the owner and has the authority to transfer the interest in question. (The right to convey is sometimes considered part of the covenant of seisin, rather than a separate covenant.)

Warrants that the property is not burdened by any undisclosed easements, mortgages, liens, or other rights of third parties. If there are encumbrances, they must be disclosed in the deed.

guarantee that the grantee will be able to possess the property in peace, undisturbed by any lawful claim made by a third party.

warrants that the grantor will provide the grantee with any additional instruments (legal documents) that are needed, or take any other steps required, to make the grantee's title good.

This is a promise that the grantor will defend the grantee's title against any claims superior to the grantee's that existed when the conveyance was made.

A special (or limited) warranty deed contains the same covenants found in a general warranty deed, but the scope of the covenants is limited to defects that arose during the grantor's tenure

In a few states, grant deeds are used instead of warranty deeds. A grant deed generally includes the term "grant" in its words of conveyance and carries two warranties: 1. the grantor has not previously conveyed title to anyone else, and 2. the grantor has not caused any encumbrances to attach to the property other than those already disclosed.

Unlike the types of deeds we've discussed so far, a bargain and sale deed offers the grantee no warranties or covenants.

A quitclaim deed contains no warranties of any sort, and it will not convey after-acquired title. In fact, unlike a bargain and sale deed, a quitclaim deed does not even imply that the grantor owns the property

be in writing, identify the parties, have a legally competent grantor, have a living grantee, be signed by the grantor, include an adequate description of the property, recite the consideration exchanged, contain words of conveyance (the granting clause), define the interest conveyed (the habendum clause), and state any exclusions or reservations.

person who makes will/person who dies with a will.

When a private owner donates real property to the public, it is called dedication. While dedication may be voluntary (for example, a philanthropist might deed land to the city for a park, as a gift), most often it is required in exchange for a benefit from a public entity.

If a person dies intestate and the probate court is unable to locate any heirs, then the intestate person's property escheats. That means title to the property passes to the state or county government

If a property owner feels that her property has been taken or damaged by a public entity, she may file a lawsuit called an inverse condemnation action to force the government to pay the fair market value of the property.

A quiet title action is used to remove a cloud on the title when the title cannot be cleared by the more peaceful means of an agreement and a quitclaim deed. In a quiet title action, the court decides questions of property ownership

A suit for partition is a means of dividing property held by more than one person when the co-owners cannot agree on how to divide it. For example, joint tenants may wish to end their joint tenancy but be unable to decide among themselves who gets what portion of the property. The court divides the property for them, and the owners are then bound by the court's decision

another form of involuntary alienation, is the process by which the possession and use of property can mature into title. The law of adverse possession encourages the fullest and most productive use of land. Also called title by prescription, it provides that someone who actually uses property may eventually attain a greater interest in that property than the owner who does not use it.

1. actual, 2. open and notorious, 3. hostile to the owner's interest, 4. exclusive, and 5. continuous and uninterrupted for a specific period of time. (18 years in co)

when the adverse possessor has a good faith but mistaken belief that he's the true owner of the property, based on an invalid deed (or some other defective instrument).

Since the adverse possessor's interest is not recorded, he must take additional steps to acquire marketable title. Unless the true owner is willing to provide a quitclaim deed, the adverse possessor must file a quiet title action.

An easement appurtenant burdens one parcel of land for the benefit of another parcel of land. The parcel with the benefit is called the dominant tenement; the one with the burden is called the servient tenement.

An easement in gross benefits a person (a dominant tenant) rather than a parcel of land.

Most subdivision developers impose a list of restrictions on all lots within the subdivision before they begin selling individual lots. This is called a declaration of restrictions or CC&Rs (covenants, conditions, and restrictions). The CC&Rs might include rules limiting all of the lots to single- family residential use, requiring property maintenance, and preventing activities that would bother the neighbors

can arise when an area is zoned for the first time, or when a zoning ordinance is amended. Certain established uses that were previously lawful may not conform to the rules laid down in the new ordinance. These nonconforming uses will be permitted to continue. Example: Smith has been lawfully operating a bakery for seven months when his property is rezoned for single-family residential use. Smith's bakery will be allowed to continue as a nonconforming use. He is not required to apply for a permit.

if a zoning law were strictly enforced, the property owner's injury would far outweigh the benefit of enforcing the zoning requirement. Under these circumstances, a variance may be available. A variance is authorization to build or maintain a structure or use that is prohibited by the zoning ordinance.

Various special uses, such as schools, hospitals, and churches, don't fit into the ordinary zoning categories. These uses are necessary to the community, yet they may have adverse effects on neighboring properties. In most communities, the zoning authority can issue conditional use permits (also called special exception permits), allowing a limited number of these uses to operate in compliance with specified conditions.

(commonly referred to as ILSA) is a federal consumer protection law concerning subdivisions offered for sale or lease in interstate commerce. For example, when a subdivision in a particular state is advertised in a national magazine, the developer may have to comply with ILSA. The interstate commerce element also generally exists when a loan is involved, since loan funds typically come from sources crossing state lines. ILSA generally applies to subdivisions containing 25 or more vacant lots, although numerous exemptions apply. Under ILSA, developers of subdivisions with 25 or more vacant lots must disclose information to buyers in the form of a property report. The required disclosures include information regarding title to the property, payment and conveyance terms, proximity to schools and recreational areas, availability of utilities, soil conditions, easements or restrictive covenants, and so on. The property report must be given to a prospective buyer before a purchase agreement is signed. Once the report is received, the buyer has a seven-day right of rescission. During this "cooling-off period," the buyer is entitled to cancel the sales contract for any reason and have any deposit returned to her.

NEPA is a federal law that requires federal agencies to prepare an environmental impact statement (EIS) for governmental actions that would have a significant impact. NEPA also applies to private uses or developments that require the approval of a federal agency.

An EIS summarizes a proposed project's background information and its probable environmental effects (both positive and negative), along with a list of alternatives to the proposed project. The EIS is typically used by a planning or zoning commission to help assess the potential environmental effects of a project.

a federal law, concerns liability for environmental cleanup costs. In some cases, the current owners of contaminated property may be required to pay for cleanup, even if they did not cause the contamination.

Liens Explanation Liens are not laws or regulations of a government or quasi government agency. liens are related to debts. Some liens can be related to government regulations, such as a tax lien.

By deed or will Explanation Either of these can create a joint tenancy as long as the ownership is equal and that there is a right of survivorship

no interest in the property Explanation The widow would have no interest in the property since the two brothers were joint tenants, the surviving brother would now own the property in severalty.

Mr. Bones' interest was terminated upon Mr. Ackerman's demise Explanation This question illustrates the rare situation where a lease may be terminated by death. The lessor can only lease the property for the term of his life. Upon the lessor's death, he no longer has an interest in the property and the lessee's interest also ceases.

easement in gross. A utility company has an easement in gross to service its equipment. A government authority or private service provider may acquire a gross easement over private land by virtue of the public service it performs. For example, a local authority may have the responsibility of installing and maintaining the sewerage system in an urban area. Merely by the fact that it has that responsibility, usually enshrined in some statute or local laws, gives the authority the right, by virtue of a gross easement, to enter private property to carry out installation and maintenance. The location of the easement will not usually be described precisely, but its general position will be defined by the service route (i.e. the sewer pipes in this example). Power and water lines may also have gross easements linked to them, but drainage and stormwater systems are commonly precisely defined in location and recorded in the title documents for private land.

The selling price is 115% of what the seller paid for it. To find out what the seller paid for it divide $197,800 by 115% = $172,000

Real estate taxes Real estate property tax liens automatically attach to the property as of January 1 of the current year. All other liens do not attach to the property automatically.

Personal property becomes a fixture through annexation, which is the act of adding something on to real property. There are two types of annexation: physical and constructive. An item is physically annexed to real property when it has been affixed to, embedded in, or otherwise permanently attached to the land or improvements. An item is constructively annexed to real property if it is a necessary or working part of the realty.

one mill equals one-tenth of one cent, that is, $0.001. Ten mills equals one cent, 50 mills equals 5 cents, and 100 mills equals 10 cents. Formula Mill Rate*.001*assessed value Tax rates are also expressed in dollars per hundred or dollars per thousand. For example, a tax rate of 50 mills is the same as a rate of $5 per $100 of assessed value, or $50 per $1,000 of assessed value. Tax rates are applied to each property based on its assessed value. So if the tax rate is 50 mills and the property is assessed at $100,000, the property tax will be $5,000 (.05 × $100,000 = $5,000)

In a majority of states, a tax is levied on every sale of real property, unless the property is exempt. This may be called a conveyance tax, transfer tax, deed tax, or excise tax.

24mix24mi - 576 sq mi - 16 townships

6mix6mi - 36 sq mi - 36 sections

1 sq mi - 640 acres

43560 sq ft

is the original north/south line established in the government survey descriptions grid. 35 principal meridians

is the original east/west line. 32 baselines

east/west lines within principal meridian and baseline grid. divide into township tiers.

north/south lines within principal meridian and baseline grid divine into range rows

The area of land that is located at the intersection of a range and a township tier is called a township, and it is identified by its position relative to the principal meridian and base line. For example, the township that is located in the fourth tier north of the base line and the third range east of the principal meridian is called "Township 4 North, Range 3 East." (See Figure 2.7.) This may be abbreviated "T4N, R3E.

Partial sections that have an irregular shape or aren't the standard size are called government lots. Each government lot is assigned a lot number and referred to by that number.

A position above or below ground is described by reference to a datum, which is an established plane of elevation. Mean sea level is commonly used as a datum, although most large cities have an official datum of their own.

extend north and south Explanation Range strips run north and south, township tiers run east and west.

Two miles squared Explanation Remember always to compare apples to apples. Connect everything to square miles: 10% of a township is 3.6 square miles, 3 sections is three square miles, two miles squared is four square miles, 5280 ft by 5280 is one square mile. By converting everything to square miles let's look at each answer: 10% 0f a township a township is 6 miles by 6 miles or 36 square miles and 10% of that would be 3.6 square miles Each section is 1 Square mile therefore 3 sections would be 3 square miles. Two mile squared is 2 times or 4 square miles. And 5280 feet times 5280 feet is 1 square mile Therefore the largest area would be C or 2 miles squared.

Having a document recorded has two extremely important legal consequences. It provides notice of the interest conveyed in the document, and it establishes the priority of that interest.

Actual notice is straightforward. A person has actual notice of a fact if he actually knows about it. He personally observed it, read about it, or was told about it. By contrast, a person has constructive notice of a fact if, in the eyes of the law, she should have known about it, whether or not she actually did.

"first to record, first in right."

Because of the complexity of most closings, it may be difficult to reschedule the meeting if one of the necessary documents is unavailable. Instead, the parties may agree to a dry closing. In a dry closing, the parties sign the documents and turn them over to the person conducting the closing. However, the money and the deed to the property are not delivered to their intended recipients until after the missing document arrives safely.

The Internal Revenue Service generally requires a closing agent to report real property sales on Form 1099-S. The form is used to report the seller's name and social security number and the gross proceeds from the sale. However, the form doesn't have to be filed for the sale of a principal residence if: 1) the seller certifies in writing that none of the gain is taxable; and 2) the sale is for $250,000 or less ($500,000 or less if the seller is married). Certain other types of transactions are also exempt from the requirement.

The IRS requires an escrow agent who receives more than $10,000 in cash to report the cash payment on Form 8300. This rule applies whether the cash was received in a single transaction or in a series of related transactions. Example: ABC Escrow is handling the closing for buyer Sam. As part of the process, Sam will bring $12,000 cash to closing. He gives ABC Escrow $8,000 on Thursday, and the remaining $4,000 on Friday. Although the individual amounts are less than $10,000, ABC Escrow will need to submit Form 8300 to IRS because the transactions are related. The escrow agent must file Form 8300 within 15 days of receiving the cash. A copy of the form should be kept on file for five years.

Foreign Investment in Real Property Tax Act (FIRPTA) was passed in 1980 to help prevent foreign investors from evading their tax liability on income generated from the sale of real estate. FIRPTA requires a property buyer to determine whether the seller is a "foreign person," defined as someone who is not a U.S. citizen or resident alien. If the seller is a foreign person, then the buyer must withhold 10% of the amount realized from the sale and forward those funds to the IRS. (In most cases, the amount realized is simply the sales price.) Payment must be made within 20 days after the date the property was transferred

RESPA has two main goals: to provide borrowers with information about their closing costs in order to help them become better shoppers for settlement services; and to eliminate kickbacks and referral fees that unnecessarily increase the costs of settlement.

a loan used to purchase 25 acres or more; a loan primarily for a business, commercial, or agricultural purpose; a loan used to purchase vacant land, unless there will be a one- to four-unit dwelling built on it or a mobile home placed on it; temporary financing, such as a construction loan; or an assumption for which the lender's approval is neither required nor obtained. Note that RESPA also does not apply to seller-financed transactions, since they are not federally regulated.

1. Within 3 days after loan app, lender must give borrower a good faith estimate of closing costs, booklet about settlement procedures, mortgage service settlement disclosure 2. If lender requires use of specific appraisal company, title company, or service provider, lender must disclose when app signed. 3. If a settlement service provider points a borrower towards an affiliated business, they must disclose relationship. 4. Closing statement must itemize costs on a uniform settlement statement 5. No more than 3 month reserve funds in escrow. 6. No kickbacks, referral fees amongst settlement service providers or unearned fee's received. No charging for production of uniform settlement statement. 7. Seller may not require buyer to use a specific title company.

Eastern

it is the responsibility of the title company to provide the buyer and seller with copies of the closing statement Explanation The broker is always responsible for the accuracy of the figures that the title company prepares.

33 feet This is a hard one. A section is 1 mile by 1 mile. This means one edge of a section is 5280 feet (1 mile) long. Four acres (43,560 sq ft x 4 acres) contains a total of 174,240 sq. ft. 174,240 divided by 5280 equals 33. The dimension of this 4 acre easement is 5280 feet long by 33 feet wide.

Change

Its relative scarcity and the demand for it

estimating value

produces the greatest property value

original cost

Principal of Progression

are considered material facts and must be disclosed

All of the above Explanation Remember this is an offer not a contract until accepted by the seller

all of the above Explanation All are examples of a fiduciary; someone put in trust of others affairs. A fiduciary relationship is created when a principal signs a listing or buyer's agency agreement with a Listing Agent or Buyers Agent. Note: a Transaction Broker as a neutral party is not a fiduciary relationship (the T broker owes no loyalty, only Care, Obedience, Accounting and Disclosure of non-confidential items and material facts). In real estate transactions, only the Sellers or Buyer's agency relationships are fiduciary relationships. This relationship implies a position of trust or confidence, wherein one person is usually entrusted to hold or manage property or money for another. In a fiduciary relationship, one person, in a position of vulnerability, justifiably vests confidence, good faith, reliance and trust in another whose aid, advice or protection is sought in some matter. In such a relation good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who trusts.

No, because this is prohibited under the 1866 Civil Rights Act.

It varies according to the veteran's eligibility Explanation VA home loans require an upfront, one-time payment called the VA funding fee. The fee is a percentage based on the loan amount. VA-eligible borrowers can wrap this cost into the loan, reducing out-of-pocket expenses onVA home loans to buy or refinance a home. VA fees vary according to the Veterans eligibilty ( 1.5% to 3 %) and amount of the down payment.

insure housing loans. Explanation The FHA insures loans the VA guarantees loans.

does not limit the interest that can be charged, only requires total disclosure Definition of 'Regulation Z' from Investopia A specific Federal Reserve Board regulation that requires debt lenders to disclose all the specifics of a given loan. This was done to promote a level of credit protection for the underlying consumer. Most of the requirements imposed by the 1968 Truth in Lending Act are contained within Regulation Z, and the two terms are often used interchangeably. Investopedia explains 'Regulation Z' One of the end results of this regulation is how a lender has to disclose how much interest will be charged on the loan. For example, for both credit card and mortgage loans, the respective lender (credit card issuer or the mortgage issuing bank) must clearly say just how much interest will be incurred by the loan in terms of an annual percentage rate. So, a lender would not be allowed to quote a low interest rate and then state in the fine print that the interest rate is expressed in per week terms, instead of the common expression of per annum.

replenishing funds of mortgage originators by purchasing their existing mortgage loans

9975 Explanation $48,500 X .65 (amount of loan) = $31,525.00. $48,500 - $31,525.00 (amount of loan) = $16,975 - $7,000.00 (earnest money) = $9,975.00

291.66 Explanation $250,000 X .35 = $87,500 X .04 = $3500 / 12 = $291.66

a trust deed may be foreclosed without court intervention Explanation By not having to go through the courts to foreclose, a trust deed provides a faster and less expensive foreclosure process. In Colorado, to avoid having to use the courts, the Public Trustee must be named trustee in the Deed of Trust.

Deed of Trust The power of sale clause, found in a trust deed, authorizes a trustee to sell the secured property at public auction in the event of default by the borrower (trustor).

trustee With a Deed of Trust, an impartial 3rd party, the Public Trustee, holds "naked title" (title without possession) to the property. The owner of the property who morgaged the property (a voluntary lein) to secure the loan is called the "Trustor" . The lender to whose benefit the lein was placed on the property to secure the loan is called the "Beneficiary".

Trustee Explanation The party holding the trust deed, (the trustee), signs the deed of reconveyance.

Any foreclosure will be handled in the appropriate court. Explanation A deed of trust set up with a private trustee must be foreclosed through the court like a mortgage, whereas a deed of trust using the public trustee would be foreclosed through the public trustee's administrative process.

signs the note and gives the mortgage Explanation The borrower is the mortgagor; the lender is the mortgagee.

Judicial Explanation Since it is a private trustee it must be done through a judicial process, were it held by the public trustee than it could be conducted by the county trustee

signs the note Explanation The trustor is the borrower under a deed of trust.

The note provides evidence of the debt Explanation A promissory note provides evidence of a debt. A mortgage or deed of trust pledges property as collateral in conjunction with a promissory note.

a writ of execution A writ of execution is a court order authorizing the sale of a property whose proceeds will be used to satisfy a creditor who has won a court judgement. Don't confuse this with writ of attachment, which is an action taken by a creditor in which the court simply retains custody of the property while a lawsuit is being decided.

Real estate broker's license

Yes

not cooperating with a broker in the MLS

scarcity, location, and durability.

A license.

250,000

the seller accepts the offer.

a subagent of the seller.

an agent to the broker and a subagent to the principal.

the number of square feet in the building.

Credit buyer $110,000; debit seller $110,000

Mortgage loan interest, local property taxes, mortgage loan origination fees.

statute of descent

there is no dollar limit on damages paid

prepayment penalties and rebates.

264.

Condo tends to be more affordable

The Department of Housing and Urban Development.

an interest that is classified as personal property.

The principal is liable only for acts of the agents that the principal has approved, directed or ratified. vicarious liability. a principal's liability for an agent's acts performed within the scope of the agency; specifically excluded by Colorado statute from a principal's liability unless the act or omission was approved, directed or ratified.