Exam 4 Final

18,19,0,21,22

four primary test used to determine whether an item is a fixture

* the intent test
* the annexation test
* the adaptation test
* the relationship of the parties test

the physical rights to real estate generally include all the following

* air rights
* mineral rights
* surface rights

states which follow the traditional ownership in place concept

recognize the ownership of oil and gas as part of land ownership

which of the following is not a test of the court used to resolving disputes about fixtures

the text of expectation

an owner’s legal right to control entry to real property and to use the property as collateral for loans is part of an owners right of

exclusive possession

an estate having a duration set by private contract is known as

non-freehold estate

the future interest in an ordinary life estate is called the

remainder

? exist when rights of possession transfer with oral instead of written agreements

tenancies at will

if one coworker dies and the owner’s rights become divided among the surviving partners, rather than passed to the heirs of the deceased, the ownership interest

has a right of survivorship

a form of ownership of real estate with fee simple ownership of individual units and ownersip of tenants in common of the common areas is termed

Condominium

the right of government to enforce zoning and growth control measures come under the government authority known as

police power

the rights of the utility company to use a particular part of an individuals property for the installation of their utility lines is an example of an easement apartment

false

if a 20 foot wide easement crosses another property allowing the smiths to gain access to their otherwise landlocked property the smiths have what is termed a servant estate

false

if bill verbally gives Eddie the right to fish in bills pond this right is termed a license

true

the physical rights of real estate owners theoretically extend too the center of the earth in the shape on an inverted pyramid

true

all states recongnize that oil and gas are personal business property and cannot be transferred with landownership trnasfers

false

riparian land describles land adjacent to nonnaviagble bodies of water and the landowners rights to use water constitutes their riparian rights

true

some states hold the the first party to use a body of water for some beneficial economic purpose obtains a superior right to water use

true

trade fixtures such as store displays counters, mobil partitions, and cabinets used by tenants in a shopping center are fixtures and therefore deemed to be part of the real estate

false

a party with a determinable fee estate receives for example through sale , gift , or will, an interest in real property that lasts for as long as some stipulation remains satisfied

true

joint tenancy does not include the right of survivorship

false

is the concept that refers to properties that have equal Market values and those properties are assessed at the same percentage of their market value

horizontal equity

is the concept that refers to properties that have different market values and those properties are assessed at the same percentage of their market value

vertical equity

taxes on property, in addition to ad valorem taxes, often used to finance streets, gutters, sewers, and sidewalks are termed

special assessments

which of the following jurisdictions typically levy real property taxes

school districts

all of the following were taxes in common use in the British colonies of North America except

the consumption tax

the right of the owner t pay unpaid taxes plus interest and penalties prior to the public sale of the property and therefore reclaim full title to the property is known as

equity of redemption

a disadvantage of the property tax is

* that is can serve to inhibit new construction
* that it can induce premature development

when all owners of homes having different values pay property taxes at the same percentage rate of their home value this is an example of

vertical equity

while most countries tax both land and the improvements some countries such as Denmark and Argentina tax only the value of the land

true

one criticism of property taxes is that they are not necessarily related to an owners ability to pay

true

property taxes are generally viewed as progressive because lower income households may pay lower property taxes than high income households relative to their respective incomes

false

tax capitalization is the term that suggests that increases ( and decreases ) In property taxes may serve to reduce ( increase ) property value

true

in states where tax certificates are issued , to avoid losing the property the owner must pay back the owner of the tax certificate the amounts advanced to pay both the tax and interest

true

a property owners effective tax rate is defined as the tax rate ( or owed) divided by the taxable value of the property

false

in most jurisdictions the local tax assessor is hired by the local county commission ( or board of advisors )

false

some states allow home owners to deduct specified amounts from their home assessment before calculating their property tax bill. the largest of these deductions is generally the disability exemption

false

a jurisdictions tax base is equal to the Total value of the jurisdictions taxable property

true

in the US property taxes can only be levied by county governments all other governments cannot raise funds via property taxes

false

basic requirements for a valid deed in most states

* name of grantor and grantee
* legal description of the property
* words of conveyance
* statement of consideration
* deed signed by grantor
* delivery and acceptance
* deed must be recored

the general term to describe a voluntary transfer of property between private entities is

a private grant

the common law public registration systems used to maintain all legal instruments affecting title to real estate include all of the following except

tangible and intangible property books

evidence of good title can be evidenced by

a Torrens certificate

the require elements of a valid deed generally include all of the following except

the signature of the grantee

from the buyers perspective the type deed offering the most desirable features is the

general warranty deed

an instrument used to transfers the rights that a specific party has in the property, not rights in the property itself is the

quitclaim deed

when a boundary of water recedes leaving dry land, ownership rights transfer through what is termed

reliction

the oldest method used to describe real estate is

metes and bound methods

the southeast most section of a township is numbered

36

the south 1/2 of the southwest 1/4 of section 12 contains how many acres

80

the most common method for evidencing good title in residential transactions involves the purchase of a title insurance policy

true

an implied contract involves an agreement evidenced by acts, conduct , in addition to an expressed written statement

false

because plat maps contain sufficient details about the boundaries of each lot the description of the lots as part of platted parcels constitutes proper and legal description or real estate

true

the principal meridian is the primary line running east and west from which all of the other township lines in a state are described using the government rectangular survey system

false

in the government rectangular survey system GRSS the range and township lines are located at six miles intervals

true

a unilateral contract results from a promise exchanged for another promise

false

the transfer of real property must involve consideration on the part of both the grantor and the grantee

false

the exchange of property rights through adverse possession grants an individual the right to use another’s property but does not involve the. transfer of ownership

false

the method of evidencing good title that relies on the development and updating of the property abstract is termed the abstract and attorneys opinions

true

an encroachment represents an encumbrance on a title

true

fiduciary duties of the agents in a standard principal agent relationship

* confidentiality
* loyalty
* obedience
* disclosure
* accounting
* care
* skill
* due diligence

which of the following is not a valid rationale for employing a broker

brokers allow the seller to avoid costly attorney fees

a real estate agent typically works in the capacity known as

special agent

which of the following is a responsibility of the fiduciary’s to the principal

* obedience
* disclosure

in some states an agent may assist both the seller and the buyer in completing a transaction, but does not represent either party. this broker may be termed a

transactional broker

the body compromised of prominent brokers and nonbrokers ( public interest members) that is responsible for monitoring and setting the rules and regulations applied to the brokerage profession in a given state is called

real estate commission

the spreading of rumors to homeowners by a brokers, that a neighborhood is changing in its racial or socioeconomic composition to secure listings is termed

blockbusting

a listing contract between a property owner and a broker that gives the broker the right to market the property, but does not preclude the owners from listing the property with other brokers is termed

an open listing

a listing contract that allows the owner to sell a property however the broker is still owed a commission is generally

exclusive right to sale listing

one of the primary benefits of the exclusive right of sale listing is that

it does not require the seller to compensate the broker in the case of an owner sale

the brokerage commission is usually paid

when the listing contract is signed

in states that license both brokers and salespersons , generally each real estate office must have a license real estate broker

true

in the listing agreement brokers usually insist on a provision protecting their rights to a commission after the listing period expires if the property is sold to someone who learned about the property during the contract period

true

a listing contact terminates if the specified periods expires , the property is sold or if one of the parties abrogates the terms of the contract

true

on most residential transactions the sale persons commissions is paid by the seller. if another salesperson indentifies the buyer their commission is generally paid by the buyer

false

the broker is termed the principal in the seller broker agency relationship created by the listing contract

false

the duties of the principal in a fiduciary relationship are to be open , honest, and fair with the agent

true

an agency relationship in which the broker is an agent for both a seller and a buyer is termed transactional agency

false

dual agency is the typical agency relationship that exist between the broker , buyer , and the seller in the purchase of a home

false

the agency relationship that exists between the salesperson and his or her broker is known as subagency

true

to obtain a real estate salesperson license in most states an individual must have at least one year of experience working in a real estate brokerage firm

false

five requirements that must be included in a valid and enforceable contract

* parties must be competent to act
* parties must have lawful intent
* must be an offer and an acceptance
* must be. be a statement of consideration
* must be no defects to mutual assent

two additional requirements that must be part of any contract for the sale pf real estate

* contract for the sale of real estate must be in writing to be enforceable
* include a property description of the property

the completion of a real estate transaction occurs

at a meeting called the closing

a contract for sale generally creates

the right of the seller to the obtain reimbursement for any property expenses that have been paid for the period during which the property will be occupied by the buyer

if an individual enters into a contract for sale with a minor

the contract is valid but may be declared invalid at the option of the minor

if a substantial error has been made , such as the square footage of the property being sustainably overstated

the contract is invalid due to the lack of mutual assent

if one property in a sales contract attempts to perpetuate a fraud on the other party this is a violation of which element required in a valid contract

mutual assent

in addition to the elements required of a valid contract , real estate sales contract must be

in writing

equitable title

passes from seller to buyer when the contract for sale is signed but prior to closing

in calculating prorations for the settlement the buyer of the property is usually responsible for time in the property beginning on the

day after closing

at closing the mortgagee’s title insurance is typically paid by

the buyer

the real estate settlement procedures act among other things prohibits the payments of kickbacks of others involved in the transaction

true

the recording fees associated with a new deed are generally the responsibility of the seller

false

a good faith estimate of the settlement costs must be provided to the borrower by the lender within three business days of the loan application

true

an escrow agent is another term for the agent responsible for organizing and handling the loan application

false

if a buyer defaults on the contract for sale, a seller may retain all or a portion of the earnest money deposits on liquidates damages

true

if a buyer of real estate assigns the contract , new buyers , in effect, take their place e but not all of their liabilty

true

the broker holds the buyers earnest money deposit in the firms bank account on behalf of the seller untill closing

false

recording of both the mortgage and the deed is usually the sellers burden

false