Real Estate Exam Day Repair & Retention Deck

General warranty deed

The deed type that provides the buyer with the greatest protection and broadest guarantees from the grantor.

Conversion (Real Estate)

The illegal act of using client or trust funds for an unauthorized purpose, such as paying employee salaries.

Effect of decreased demand with constant supply

Causes market prices to tend to fall.

Legal tests for a fixture (AAA)

Method of annexation, adaptation to real estate, and agreement between the parties.

Eminent domain vs. Condemnation

Eminent domain is the government's legal power to take private land for public use, whereas condemnation is the legal process used to exercise that power.

Proprietary lease

A lease held by a cooperative shareholder that grants the right to occupy a specific residential unit.

Membership camping

A form of property access treated in real estate law as analogous to time-share use.

Quitclaim deed

The deed type that imposes the least liability on the grantor, conveying interest without broad warranties.

Real estate sales associate

A licensee who performs real estate activities on behalf of a licensed broker.

Federal antitrust violation exceptions

Commission splitting between brokers is permitted, whereas group boycotting, customer allocation, and tie-in agreements are illegal violations.

Puffing

Exaggerated sales talk or subjective opinions about a property (e.g., calling a weed-filled yard a delightful garden) that do not constitute factual misrepresentation.

Impact of a sales associate's death on a buyer representation agreement

Does not terminate the agreement, because the contractual agency relationship exists directly with the broker.

Option contract

A classic example of a unilateral contract in real estate, where only the optionor is bound until the optionee exercises the option.

Equitable right of redemption

The right of a defaulting borrower to redeem their mortgaged property prior to the foreclosure sale.

Federal Reserve System monetary limits

Influences interest rates, credit conditions, and economic stability, but does NOT make direct mortgage loans to buyers.

Sales comparison approach

The preferred appraisal method for an owner-occupied house located in an established residential neighborhood.

Role of a real estate appraiser

To estimate or develop an opinion of value, rather than to set prices or determine absolute value.

Principle of conformity

The appraisal principle stating that maximum property value is realized when land use is in harmony with surrounding neighborhood standards.

Four characteristics of value (DUST)

Demand, Utility, Scarcity, and Transferability.

Functional obsolescence

A loss in property value resulting from outdated physical design features, such as an inefficient floor plan.

Net listing

A listing agreement where the seller specifies a net profit amount and the broker retains all proceeds above that figure.

Requirement for an appurtenant easement

Two adjacent parcels of land owned by different parties (a dominant parcel and a servient parcel).

Mortgage lien

A specific, voluntary lien created by contract that attaches to a particular parcel of real estate.

Subject property

The specific real estate parcel currently being evaluated in an appraisal report.

Broker's Price Opinion (BPO)

A property valuation report prepared by a real estate broker based on research and analysis of comparable properties.

Principle of competition

The appraisal principle defined by the interaction of supply and demand in the marketplace.

Physical deterioration

Loss in value caused by physical wear and tear that can be cured by maintenance or repairs, such as repainting peeling paint.

Guam office parking requirement

One parking stall for every $400\text{ sq. ft.}$ of office space.

Guam New Agana C Zone height limit

6 stories or $75\text{ feet}$, whichever is less.

Horizontal Property Regime (HPR)

The regulatory framework governing the physical traits and structure of condominiums on Guam.

Setback

The minimum distance required by zoning laws between a property line and a building structure.

Guam Real Estate Commission scope limit

Adopts administrative rules, suggestions, and seals, but does NOT invest or reinvest funds under 4 GCA Chapter 8 (a Chamorro Land Trust function).

Guam Broker's License eligibility exceptions

Requires a written application, U.S. citizenship, and 2 years active experience as a salesperson; holding an NAR affiliate designation is NOT required.

Inactive real estate license restrictions

Allows renewal without maintaining a principal place of business, but strictly prohibits actively engaging in real estate transactions.

Guam tax assessment valuation cycle

The assessor evaluates all property that became taxable since the last valuation every $5\text{ years}$.

Guam Board of Equalization functions

Inspects tax rolls and corrects assessment inequalities, but does NOT transmit tax rolls.