question

Feudal System

answer

Land is owned by a king or lord, workers could not own the land

question

Allodial System

answer

Real estate is easily available and affordable

question

Bundle of Rights

answer

Surface rights- most obvious to the eye Sub-Surface rights- allow owner to drill for oil Air-Rights-

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Characteristics of Land

answer

Physical and Economic

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Physical Characteristics of Land

answer

Fixity-remaining in a fixed location Permanence-it never wears out Non-Homogeneity- no two parcels are identical

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Economic Characteristics of Land

answer

Scarcity-insufficient land, prices rise Situs-location of land and its proximity to valuable resources Durability

question

Public Sector Controls

answer

Can control or restrict use of that land Police Power

question

Police Power

answer

Zoning Restrictions- restrictions as to the use of the land Eminent Domain-permits a unit of government to Condemn the land in question for some specific governmental purpose. (power of government to determine land use)

question

Private Sector Controls

answer

property owner controls who inherits land after death by a will

question

Escheat

answer

if no will exists the estate is returned to the sovereign state

question

Restrictive Covenents

answer

limit rights to all those who live in the subdivision for a limited amount of time

question

Real Property

answer

whatever is erected or affixed to the land (cannot be moved)

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Personal Property

answer

aka Chattel (ex. chairs beds money clothing and jewelry) (tests of a fixture: the intent of the owner, the method of annexation, the adaptation of the property)

question

Fixture

answer

personal property becomes real property

question

Deed

answer

The Way in which real estate ownership is transferred

question

Bill of Sale

answer

the way in which ownership of personal property is transferred

question

Ways to acquire real estate

answer

inheritance, receive as a gift, purchase it, and Adverse possession

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Adverse Possession

answer

a means of involuntary transfer, a person may gain title to another persons land by taking possession in a notorious, actual, visible, outright and hostile (without Permission) manner for an uninterrupted time(10 years)

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Color of Title

answer

indicates a suggestion of interest

question

Easement by prescription

answer

property owner allows his property to become a corridor through which people travel to arrive at another piece of property, the law specifies that after a certain amount of time the passage becomes a permanent right of way (does not grant ownership interest)

question

alienation

answer

the transfer of title of real property of from a seller to a buyer

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Testator

answer

has the right to name the executor of an estate

question

Testate

answer

died, left a will

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Devise

answer

gift of real estate by will

question

Codicil

answer

addition to a will

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Rectangular System Of Survey

answer

Grid of navigation Baseline is at the bottom of the state Principle Meridians run N to S

question

Section of Land = 1 Square mile

answer

640 acres

question

Mile

answer

5280 feet

question

Acre

answer

43560 square feet

question

Plat

answer

a map that recites the boundaries of an area of land as surveyed

question

Metes

answer

Measures and distances

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Check

answer

contains 16 townships and is 24 miles square

question

Correction Lines

answer

compensate for the curvature of the earth

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Survey

answer

the measurement and establishment of the boundaries of a particular property, usually identified by metal stakes imbedded in the ground or the corners of the lot line

question

Township

answer

contains 36 sections

question

Lot and Block System

answer

used in platting subdivisions

question

Section

answer

640 Acres

question

Monument

answer

a Marker set by surveyer

question

Special/Conditional use permit

answer

allows the holder of the permit to use their property in a manner that does not conform to the properties around it for a certain amount of time

question

Nonconforming Use

answer

when current use does not conform to current zoning, but the use was in effect before the zoning was (grandfather Rights)

question

Spot Zoning

answer

zoning on lot for a different use that the zoning of surrounding land

question

Variance

answer

when an owner requests an exception to the zoning requirements for that area

question

Down Zoning

answer

occurs when the zoning of an area is changed and the change results in a loss of value to the property owners

question

Assemblage

answer

purchasing several different properties and combing them to make one parcel

question

Plottage Value

answer

the increase in value after assemblage

question

Sanitary Improvement District

answer

offers tax free interest to the investors, provides the developer with investor's funds.

question

Warrants

answer

no fund checks bought by the underwriter, used to improve the land

question

Special Assessments

answer

are added to the cost of the individual lots as they are sold

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General Obligation

answer

is paid off by the future property owners through a mill levy assessed to their property

question

Easements

answer

the right to travel over the land of another. Can be created by: Law, between individuals, or by use.

question

Easements appurtenant

answer

easement that involves two adjacent properties. It would grant the right to ingress and egress to one property over the land of another property.

question

Dominant

answer

the property that is benefited by the easement. The easement is called a appurtenance.

question

Appurtenance

answer

The name of the easement for the dominant party. It is part of the real estate, it is beneficial to the real estate, and it will be conveyed to the new owner when the property is sold or leased

question

Servient Tennent

answer

the property across which the easement is run. The servient cannot hinder the ingress and egress of the dominant tennent. Easement is referred to as an encumbrance

question

Ecumbrance

answer

is a part of the real estate it is negative to the property, and any new owner or lessor must honor the encumbrance unless unless it is removed before conveyance.

question

Easement in gross

answer

benefits the party that holds the easement in gross

question

Easement of Necessity

answer

is one that is created in a court of law. Parcel of land cannot be "landlocked" without ingress and egress. the owner may seek a easement of necessity if no adjacent properties grant an easement across their land

question

License

answer

personal, revocable privilege

question

Encroachment

answer

when one person's property intrudes on another person's property

question

Building Codes

answer

determine material and construction standards for buildings

question

Deed restriction

answer

can restrict architectural styles of buildings and preserve the view from a particular lot

question

Zero Lot line

answer

homes can be built on the lot line

question

Freehold Estate

answer

an estate of indefinite or uncertain duration. Holding a freehold estate gives the owner one of the following types of title: 1. fee simple absolute 2. fee simple determinable 3. fee simple conditional subsequent 4. Life Estate

question

3 Characteristics that distinguish a fee simple estate

answer

1. of indefinite duration, it perpetuates 2. freely inheritable; the owner may will it to another 3. transferable; the owner may give it away or sell it

question

Fee simple Absolute

answer

title holder has the most control. Power to retain, sell, will, or mortgage the property. NO LIMITS

question

Fee Simple Determineable

answer

the owner's right has been set or determined by the past owner (grantor) of the estate. The holders rights expire automatically on the occurrence of a stated event.

question

Fee Simple Defeasible

answer

allows the title to be defeated since it has been qualified by the grantor

question

Life Estate

answer

a life interest in Real Estate. The holders possess all the rights normally associated with holding title, except they cannot commit waste. ( do anything to diminish the value) and it ceases to exist upon the death of the holder

question

Estate in Reversion

answer

life estate that returns to original owner after the new tenant dies

question

Estate in Remainder

answer

title of the property is passed on to a third party named in the deed after the death of the tenant

question

Non-Freehold Estates

answer

an estate of specified duration which may be sold assigned or willed the owner of the non-freehold property is the lessee, the person is leasing the property to another

question

Deed

answer

the instrument used to convey a title (paper/document)

question

Title

answer

specifies the quality of the estate

question

Estate

answer

defines the quantity of the estate ( the amount the holder owns)

question

A deed must contain:

answer

1. Must carry the signature of the grantor 2. All parties must be of sound mind or a court appointed guardian will sign the deed and act for the grantor 3. If there are several persons who have rights, interests or ownership they all must sign the deed 4. The deed cannot be recorded unless the grantor signs the deed in the presence of a person authorized by law to notarize the documents 5. Delivery of the deed must take place and the deed must be accepted in order for conveyance to take place 6. Grantee's name must be present on the deed 7. Consideration 8. Words of conveyance (the grantor states that he is granting and conveying his interests in the property) 9. Legal Description

question

Constructive notice

answer

Recording the deed. it is not mandated by law that a deed needs to be recorded to be valid

question

Actual Notice

answer

having actual knowledge of who actually holds the property

question

Grantor

answer

Seller

question

Grantee

answer

Buyer

question

General Warranty Deed

answer

the grantor warrants clear title from all defects offering the grantee the greatest protection of any deed

question

Severalty

answer

sole ownership, an individual owns real property solely by himself, no one else is named on the deed

question

Joint tenancy

answer

two or more people take title with the right of survivor ship. upon the death of one of the owners his share is automatically transferred to the surviving owner(s)

question

4 Unities required to create a joint tenancy

answer

1. Unity of Time - all joint tenants came into the ownership at precisely the same time 2. Unity of title - they all hold the same title 3. Unity of Interest - all joint tenants own all of the property 4. Unity of Possession - all joint tenants have equal right to use and enjoy the property

question

Partition Action

answer

must occur in order for a party to break joint ownership against the will of the other joint tenants

question

Tenancy in Common

answer

conveys title to two or more persons without the right of survivor ship and the four unities are not required

question

Tenancy by the Entirety

answer

is established between a husband and wife

question

Community Property

answer

all of the property acquired by husband and wife during marriage with the following exceptions: 1. Prior to marriage 2. After marriage by inheritance or gift 3. Income from separate properties

question

Partnerships

answer

formed to conduct business jointly with another, sharing in the work, expenses and profits.

question

Deed of Trust

answer

secures payment of a trust

question

Covenant

answer

agreement that secure payment of a trust

question

Livery of seizin

answer

transfer of possession

question

Dower

answer

right a wife has in husband's estate

question

Curtesy

answer

interest a husband has in wife's estate

question

Grant Deed

answer

Grantor warrants only his or her ownership

question

Acknowledgement

answer

sworn under oath

question

Habendum Clause

answer

to have and to hold clause

question

Statute of Frauds

answer

Listing and purchase agreements, options, leases, mortgages, and real estate management contracts must be in writing to be enforceable in the court of law

question

Statute Of Frauds requires that:

answer

1. The subject matter is defined 2. the identity of the parties is revealed 3. Essential conditions and terms of the contract are set forth in the written document

question

Elements of a Contract

answer

1. Agreement 2. Consideration 3. Capacity 4. Legality 5. Signatures of both parties

question

assignee

answer

the person to whom a contract is assigned

question

Assignor

answer

the party who assigns his interest in the contract to another

question

Optionee

answer

has the exclusive right to purchase the real estate of the optionor for a specific time period at the specific terms spelled out in the option

question

Unilateral

answer

one person is promising to act (listing contract since the seller is promising to pay a commission)

question

Bilateral

answer

requires both parties to act

question

Fraud

answer

misrepresentation of a material fact with an intention to deceive which resulted in damage

question

Duress and Undue Influence

answer

require the offender to so harass and upset the party with threats and strong persuasion that the person gives in and signs the contract

question

Dual Contract

answer

a second contract written for purposes of obtaining a larger loan from the lender

question

Latent Defect

answer

Hidden from view

question

Novation

answer

substitution of a new contract

question

Laches

answer

delayed too long in asserting legal right

question

Executory Contract

answer

performance not yet completed

question

Specific Performance

answer

court remedy, compelling compliance

question

Agency

answer

one parties hires another to act on his behalf instead of doing it himself

question

Principal

answer

the client, the party who hires the agent to represent their interests

question

Agent

answer

a licensee who represents the client

question

Customer

answer

a party who does not have representation with the licensee

question

Special/Limited Agency

answer

permits the agent to perform one specific act - upon completion the agency is terminated. Limited time, limited purpose, and limited powers are given to the agent

question

General Agency

answer

ongoing relationships with multiple functions entrusted to the agent and the agent has a great deal of authority,allowing the agent to perform tasks on behalf of the principal as outlined in the contract

question

Universal Agency

answer

unlimited power of attorney, which allows the agent to act on behalf of the principal on all matters

question

Ostensible Agency

answer

agency by implication

question

Agency by Ratification

answer

will exist when the property owner accepts a purchase agreement which specifies that the agent is representing the seller

question

Seller or landlord agency

answer

you list a property to either sell it or lease it and thus a fiduciary relationship is formed and you are representing the seller/landlord

question

Buyer or tenant Agency

answer

you are representing the buyer or the tenant in a real estate transaction and the seller or landlord is the customer

question

Buyer self representation

answer

the buyer has agreed to represent himself or hire his own agent

question

Subagency

answer

both the seller and the listing broker must agree that agents from another firm can show the property as the seller's agent under subagency selling agent represents listing agent

question

Dual Agency

answer

with written disclosure to both parties, the agent represents both their interests represents buyer and seller

question

Facilitator

answer

the agent acts as a third, disinterred party, representing neither party to a transaction - there is no representation by an agent

question

Agent Duty

answer

owes absolute loyalty and honesty to the client, the customer will be treated fairly and the agent will not misrepresent the property. Must disclose defects

question

The Basic requirements of Nebraska Agency Relationship Law are:

answer

A Licensee is considered a buyer's or tenant's limited agent unless: 1. the designated broker enters into a written agency agreement with a seller or a landlord 2. There is a subagency with another designated broker 3. By agreement with the party to be represented. In Nebraska a buyer is the agent's client unless the agent has written authority stating otherwise 4. the agent is acting as a dual agent. A licensee may work with a single party in separate transactions serving in different agency representations. Each designated broker is required to adopt a written agency policy that describes the agency relationships that broker offers to consumer A licensee does not need a written agreement to show property as a buyer's agent Disclosure of a licensee's agency representation must be made to the consumer at the earliest practicable opportunity "during or immediately following the fist substantial contact" The agent musst, during or immediately following the first substantial contact: 1. provide the individual with a copy of the Real Estate Commission prepared agency disclosure pamphlet, and 2. disclose in writing the brokerage relationship the agent is offering or the party the agent is representing 3. if the licensee will be treating the consumer as a customer, not a client, the information provided will include: a. a statement that the licensee is an agent for the other party and is not an agent for the customer, and b. a list of the "tasks" that the licensee intends to perform for the customer

question

Specific Assistance (substantial Contact)

answer

a. Asking for accepting information which could compromise the consumer's bargaining position: motivation, price, financing terms. b. showing a specific property or properties by pre-arrangement (pre-arranged showings are always specific assistance) c. other meetings with a consumer

question

Not Specific Assistance

answer

a. preliminary conversations regarding the market in general, general real estate values and general financing terms b. conveying publicly available information about properties (asking price, location, style, amenities) c. asking for or accepting information about non-compromising information about the consumer, such as their real estate needs or desires, or general preferences for location price range, features , etc.

question

Comparable Market Analysis (CMA)

answer

Comparing similar properties that have recently sold to the subject. A minimum of three properties, sales price is given a + or a - to adjust to the subject property

question

Proceeds to Seller

answer

an estimate given to the seller that indicates approximately what the net proceeds from the sale will be if the property sells for the listed price

question

Exclusive Right to sell (Listing Agreement)

answer

no matter who sells the property, the listing firm will receive a portion of the property

question

Exclusive Agency (Listing Agreement)

answer

the seller retains the right to sell the property himself through himself through his own efforts and not be obligated to pay a commission

question

Open Listing (Listing Agreement)

answer

gives no security to any of the brokers that the seller lists with; only the firm who produces this listing wins with this listing

question

Net Listing (Listing Agreement)

answer

Permits the real estate firm to retain the balance paid over and above a net amount that has been set by the owner

question

Expiration of Listing

answer

In Nebraska, the listing must have a set termination date with no automatic extensions

question

Multiple Listing

answer

Brokers pool their listings and cooperate on sales

question

RPA Section D

answer

deals with abstracts and title insurance. When an abstract is used, the seller pays to have it extended or brought up to date. When using title insurance, the property title will be examined by the title company and insured. Cost of title insurance is equally split between purchaser and seller

question

RPA Section E

answer

clarifies both the receipt of the earnest deposit and the and how it will be handled by the licensee

question

RPA Section F

answer

addresses property taxes. If taxes are paid current Provision A is used. If taxes are paid in arrears (taxes paid in 2016 will meet 2015 tax obligation) provision B is used.

question

RPA Section G

answer

states the date of closing and the date that possession will be given to the grantee

question

RPA Section H

answer

states that the buyer will pay for a termite inspection except in the case of a VA loan. If Damage is found repairs are at the seller's cost

question

RPA Section I

answer

deals with the condition of property condition. Places the responsibility of carefully inspecting the property on the buyer. Seller is responsible for any heating, air conditioning, water heater, sewer, plumbing and electrical systems, and any built in appliances

question

RPA Section J

answer

seller carrying the responsibility for any material damage to the property prior to conveyance

question

RPA Section K

answer

informs the buyer that the property is located in a sanitary Improvement District

question

RPA Section L

answer

if an escrow closing is to occur and the cost of the escrow closing

question

RPA Section M

answer

buyers receipt for the for a copy of the written offer and for the earnest deposit

question

RPA Section N

answer

sellers response for the purchaser's offer

question

RPA Section O

answer

provides the space for the acknowledgement by the notary public

question

RPA Section P

answer

provides space for both buyers and sellers to acknowledge receipt of the accepted purchase agreement

question

Escape Clause

answer

allows buyer both buyer and seller to rescind the contract if the property does not appraise for the contract price

question

RPA Section Q

answer

requests the purchaser to bring funds to closing in cash, certified check or cashiers check

question

RPA Section R

answer

requests seller to place property insurance on any personal property left on the premises since the seller's insurance terminates upon closing

question

Full Disclosure

answer

seller must price the property at its true value. All Offers must be presented to the seller for his acceptance or rejection. The buyer's financial capability must be revealed to the seller along with an explanation of the conditions of the contract.

question

Property Condition Disclosure Statement

answer

seller provides and signs. Discloses information about the property condition. i.e condition of the electrical system, structural disclosure, condition of appliances.

question

Assignment

answer

rights and responsibilities held by one are passed to another

question

Primary Mortgage Market

answer

the institution where the borrower has personal contact to obtain financing to purchase real estate - often the local savings bank

question

Conventional Loan

answer

requires 20% down payment

question

Private Mortgage Interest Loans (PMI)

answer

fill the gap between conventional and FHA or VA loans requiring 5% or 10% down payment

question

Amortized Loans

answer

equal payments that gradually reduce the debt since the borrower pays on the unpaid balence

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