Help

Options

focusNode

Didn't know it?
click below

Knew it?
click below

Don't Know

Remaining cards (0)

Know

retry

shuffle

restart

0:00

Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

Normal Size Small Size show me how

Real Estate Cards

Key Point Review for Unit 1-30

Term	Definition
Real Estate Brokerage	is a business of bringing people together in a real estate transaction conducted by a real estate broker
Real Estate Broker	a person or company licensed to buy, sell, exchange, or lease real property for others for compensation and who may 1.) be the agent of a buyer, seller, or both, 2.) not be the agent of any party to the transaction
Real Estate Salesperson	who conducts brokerage activities on behalf of the broker
Appraisal	the process of estimating a property's value (typically, market value) that is based on established methods and an appraiser's professional judgement and is regulated.
Appraisal Regulations	1.) licensing or certification is required for many federally related transactions, 2.) many states require licensing or certification for local transactions
Property Manager (conductor of Property Management)	a person or company hired to maintain and manage property on behalf of its owner whose scope of work depends on a management agreement and basic responsibility is to protect owner's investment while maximizing owner's financial return
Financing	the business of providing the funds that make real estate transactions possible through 1.) mortgage or deed of trust loans secured by the property and, 2.) commercial banks, savings associations, mortgage bankers, and mortgage brokerage companies
Subdivision and Development	involve splitting a single property into smaller parcels (subdividing) and constructing improvements on the land (development)
Home Inspection	a growing area of interest to both purchasers and homeowners but note: 1.) a state license may be required of a home inspector 2.) an inspection report will show results of a thorough visual survey of a property
Real Estate Counseling	involves independent advice based on sound professional judgement
Types of real property:	1.) Residential- single-family and multifamily 2.) Commercial- office space, shopping centers, etc. 3.) Mixed Use- commercial/ residential uses in the same building 4.) Industrial- warehouses 5.) Agriculture-farm 6.) special purpose- schools, churches
The real estate market reflects principles of supply and demand, influenced by the uniqueness and immobility of parcels of real estate so that..	1.) when the supply increases and demand remains stable, prices go down, and 2.) when demand increases and supply remains stable, prices go up.
The factors affecting the supply of real estate:	1.) Labor force availability, 2.)Construction and material costs, 3.) Government controls- environmental restrictions, land use, building coded, zoning, 4.) Government financial policies that impact interest rates and money supply
Th factors affecting the demand for real estate:	1.) population- some ares grow faster than others; some decline 2.) Demographics- family size, lifestyles, niche marketing 3.) Employment and wage levels- influencing housing affordability
Land/Water Rights	Earth's surface, where water rights are held by owners of land adjacent to rivers, lakes, and oceans
Subsurface/Mineral Rights	extends downward to the center of the Earth, where subsurface rights include mineral rights and other natural resources that can be transferred separately from surface rights
Air Rights/Naturally Attached to Properties	stretches upward to infinity, where air rights can be sold separately from surface rights with some limitations to enable air travel and; includes things naturally attached to the land, such as trees and crops that do not need cultivation (ex: vineyard)
Real estate includes:	land at, above, and below the Earth's surface, plus and all things permanently attached to the land, both natural and man-made.
Real Property includes:	interests, benefits, and rights that are automatically included in the ownership of land and real estate
Bundle of Legal Rights include:	1.) right of possession, 2.) right to control the property, 3.) right of enjoyment, 4.) right to exclusion, and 5.) right of disposition
Title is the...	1.) right to ownership of the land, 2.) bundle of legal rights and 3.) evidence of ownership provided by a written document, a deed, by which title is transferred.
Appurtenance	is a right or privilege associated with real property in some way, such as a parking space in a multiunit building, an easement, or water rights, and is normally conveyed to the new owner when the property is sold
Personal Property (chattel) includes:	1.) moveable items, such as a chair, 2.) emblements, annual planting/crops of grains, etc. 3.) items of real property that can become personal property by severance 4.) construction materials 5.) manufactured homes permanently affixed to land
a Fixture	personal property that has been affixed to the land or to a building so that by law it becomes part of the real property.
Legal Tests for a Fixture include:	1.) Method of annexation-not easily removable 2.) Adaption to real estate- ordinarily considered a permanent addition 3.) Agreement of the parties- stated as part of real estate in the offer to purchase
Trade Fixtures include property attached to the structure but used in the course of business such as:	1.) personal property, if removed by tenant and the premises are returned to original condition before the lease expires, 2.) real property if I left behind by tenant. The landlord can acquire this type of property by accession.
The Characteristics of Real Estate include:	economic and physical
Economic characteristics	1.) Scarcity, 2.) Improvements, 3.) Permanence of investment 4.) Location (Most Important)
Physical characteristics	1.) Immobility, 2.) Indestructibility, 3.) Nonhomogeneity, or uniqueness
Laws that affect real estate include:	1.) contracts, property, agency, and real estate licensing, where all states require brokers and salespeople to be licensed with requirements differing from state to state; state/local land-use/zoning laws and; fed/state environmental regs and tax laws
Types of Housing includes:	1.) single-family homes, 2.) apartment complexes, 3.) Condominiums, 4.) Cooperatives, 5.) Planned Unit Development (PUDs) 6.) Mixed-use Developments (MUDs) 7.) Modular homes (prefabricated homes) 8.) Manufactured housing (mobile homes) 9.) Time-shares
Housing Affordability has been aided by creative financing. low interest loans, adjustable-rate loans, interest-only loans, and low-down-payment loans sponsored by the ..?	Federal Housing Administration (FHA) and Department of Veteran Affairs (VA)
The decision to rent or buy is influenced by:	1.) Length of time individual will reside in the area 2.) Individual's financial situation 3.) Housing affordability 4.) Current mortgage interest rates 5.) Tax consequences of owning vs renting property 6.) what could happen to tax laws and home prices
PITI stands for:	Principal, Interest, Taxes, Insurance
Investment Considerations include:	1.) Appreciation the value of the property 2.) Equity increase with an amortized loan as the principal is paid 3.) tax deductions 4.) Capital gains taxation exclusion of $250,000 or $500,000 profit on sale of principal residence 5.) penalty-free IRA
Capital Gains Taxation Exclusion of $250,000 or $500,000 profit on sale of principal residence IF...	IF owned and occupied at least two of the past five years
Penalty-free withdrawals from an...	individual retirement account (IRA) for a down payment on a home within certain limits
A homeowners' insurance policy usually covers:	1.) fire and lightning, windstorm and hail, and glass breakage 2.) explosion, riot, and civil commotion, 3.) damage by aircraft, vehicles, and smoke 4.) vandalism, malicious mischief and theft 5.) loss of property removed when it is dangered by fire, etc.
The Homeowners' Insurance Broad-Form Policy covers:	1.) falling objects and damage due to weight of ice, snow, sleet 2.) collapse of all or part of the building 3.) bursting, crackling, burning, or bulging of steam or water heating system or appliances used to heat water
Part 2 of what the Homeowners' Insurance Broad-Form Policy:	4.) accidental discharge, leakage, or overflow of water heating system from within a plumbing, heating, or air-conditioning system 5.) freezing of plumbing, heating, and air-conditioning systems/domestic appliances/damage to electrical devices
Coinsurance Clause	requires the homeowner to maintain insurance equal to at least 80% of replacement cost of the dwelling for full replacement on loss; if not, the loss will be settled for actual cash value or a prorated amount
Comprehensive Loss Underwriting Exchange (CLUE)	is a database of a consumer insurance claim history
The National Flood Insurance Act of 1968	1.) subsidize flood insurance, 2.) is administered by the Federal Emergency Management Agency (FEMA)
An Agent	is hired by principals to act on their behalf
Agency	is the fiduciary relationship in which the agent is held in a position of special trust and confidence by the principal
A Client	Is the principal
A Customer	is the non represented party for whom some level of service is provided and who is entitled to fairness and honesty.
A Non-agent (facilitator, intermediary, transactional broker, transactional coordinator, or contract broker):	assists one or both parties with the transaction without representing either party's interests and often is subject to specific statutory responsibilities
Real Estate Agency Relationships are governed by:	common law which is established by tradition and court decisions, and statutory law, which is passed by state legislatures and other governing bodies
Disclosure by real estate brokers of an agency relationship is...	required in every state
Agency Relationships include:	1.) Express Agency is based on a formal agreement between the parties 2.) Implied agency results from the behavior of the parties 3.) the compensation source does not determine agency because the agent may be compensated; gratuitous agency
Gratuitous Agency	agency can exist even if no compensation is involved
An agent has a fiduciary relationship of trust and confidence with the principal; the six common-law fiduciary duties (COLD AC)	1.) Care- an agent must exercise a reasonable degree of care 2.) Obedience-an agent must act in good faith at all times, with obedience toward the principal instructions 3.) Loyalty- must place the principal's interest above those of others
COLD AC continued	4.) Disclosure- agent is duty-bound to inform the principal of certain relevant facts concerning the transaction 5.) Accounting- agent must be able to report the status of all funds received from or on behalf of principal. 5.) Confidentiality
Termination of Agency may be accomplished by the:	1.) completion/performance/fulfillment of purpose of agency 2.) destruction/condemnation of the property 3.) expiration of the terms 4.) mutual agreement of all the parties to the contract 5.) breach by client who may be liable 6.) operation of law
Agency coupled with an interest...	cannot be revoked by the principal or terminated upon the principal's death
A Universal Agent...	is empowered to do anything the principal can do personally
A General Agent...	represents the principal in a broad range of matters
A Special Agent (Limited Agent)...	represents the principal in one specific act or business transaction only, under detailed instruction
A Designated Agent (Designated Representative):	is authorized by the broker to act as the agent of a specific principal
A Single Agency	is one in which an agent represents only one party in a transaction
A Dual Agency (Limited Agency)	is one in which an agent represents represents two principals in the same transaction
a Buyer's Broker...	represents a buyer as an agent to find property that meets the buyer's specifications, as set out in the buyer-broker agreement
statements to clients and customers should be clearly identified as opinion or fact:	1.) puffing- is legal exaggeration of a property's benefits 2.) Fraud- is the intentional misrepresentation of a material fact to harm or take advantage of another person
Negligent Misrepresentation	occurs when a broker should have known that a statement about a material fact was false
A seller has the duty to discover and disclose any known latent (hidden) defects that threaten a building's structural soundness or an occupant's personal safety, the following is important:	in some states, an agent has an independent duty to conduct a reasonably competent and diligent inspection of the property and to disclose defects to prospective buyers
Stigmatized properties...	may require an agent to consult an attorney
All 50 states, Canadian provinces, and the District of Columbia have real estate license laws and rules with the force and effect of law that...	1.) establish basic requirements for obtaining a real estate license 2.) may require continuing education for license renewal 3.)which activities require licensing 4.) acceptable standards of conduct 5.)enforce standards through disciplinary system
a real estate broker is licensed to buy, sell, exchange, or lease real property for others for a fee and may operate as a..	1.) sole proprietorship 2.) partnership 3.) corporation
a real estate brokerage may be independent or...	part of a regional or national franchise
a real estate salesperson is licensed to perform real estate activities only...	on behalf of a licensed real estate broker
a broker-employer is liable for the actions of the salesperson within the scope of...	the employment agreement
An independent contractor is a real estate salesperson who...	1.) usually receives a commission, with no withholding for Social Security, income tax, and other purposes 2.) has freedom to set hours and accomplish goals 3.) does not relieve the broker of liability for related work 4.) must comply IRS requirements
An employee is a salesperson...	1.) may receive salary instead of/addition to commission 2.)may receive benefits 3.) whose broker is required to withhold Social Security, and other applicable fed/state taxes 4.) whose broker sets hours, duties 5.) liability for related work activities
a Real Estate Assistant is	1.) a licensed employee of the employing broker 2.) if unlicensed, is limited in the activities that can be undertaken
The Internet is invaluable for communication, researching, marketing, and advertising of a brokerage and includes:	1.) email 2.) blogs 3.)vlogs (video blogs) 4.) Multiple listing services (MLS) 5.) Web Page 6.) Realtor.com 7.) effective advertising, which must comply with fed and state law
Electronic Contracting includes	Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-Sign)
The Uniform Electronic Transactions Act (UETA) which has been adopted in most states and does not require electronic communication, but if it is used, the	1.) contract cannot be denied legal effect just because electronic record was used, and 2.) the record or signature cannot be denied legal effect just because it is in electronic format
The Electronic Signatures in Global and National Commerce Act (E-Sign)	which functions as electronic transactions law in states that have not enacted UETA and makes contracts (including signatures) and records legally enforceable, regardless of the medium in which they are created
Broker's compensation must be agreed upon before agency relationship is established and can be a commission based on sales price, flat fee, or hourly rate:	1.) Fee for service 2.) Some states require minimum services to be offered by the broker 3.) broker may set a minimum commission rate acceptable for the firm, but any attempt to impose a uniform commission rate, violation of fed and state antitrust law
Entitled to compensation:	means that an individual must be 1.) a licensed real estate broker, 2.) employed by the buyer or the seller under a valid contract and, the procuring cause of the sale by starting or causing a chain of events that resulted in the sale.
The commission is earned when the seller...	accepts an offer from ready, willing and able buyer prepared to buy on the seller's terms and ready to take positive steps toward consummation of the transaction.
A salesperson's compensation is set by...	mutual agreement of the employing broker and the salesperson.
Antitrust laws are both state and federal (Sherman Antitrust Act) laws that prohibit:	1.)monopolies; 2.) contracts, combinations, and conspiracies that unreasonably restrain trade, including price fixing, group boycotting, allocation of markets, tying agreements forcing customers to purchase a product when only another was wanted.
Penalties for antitrust violations include:	1.) Sherman Antitrust Act- violators face up to $1 million fine and ten years in prison with corporate fines as high as $100 million. 2.) Civil suit- successful plaintiff may recover triple damages plus attorney's fees and costs.
Do-not-call legislation is found at federal and state levels:	1.) The National Do Not Call Registry- lists telephone numbers of consumers who have asked to be registered and prohibits interstate calls to those numbers o sell goods or services; many states provide their own do-not-call legislation for in-state calls.
A listing agreement:	an employment contract between a broker and a seller. in all states, the agreement must be in writing to be enforceable in court.
As an agent, the broker is authorized to represent the...	principal and the principal's real estate to consumers.
A real estate salesperson is a...	general agent of the broker and can carry out listing services only in the name of and under the supervision of the broker.
The Characteristics of an exclusive-right-to-sell listing include:	1.) one broker is appointed as the seller's sole agent, 2.) if the property is sold while the listing is in effect, the broker is entitled to a commission, no matter who sells the property.
An exclusive-agency listing:	1.) authorizes one broker t act as the sole agent of the seller, but 2.) allows the seller to retain the right to sell the property without obligation of payment to the broker
In an open listing (also known as a nonexclusive listing):	1.)the seller retains the right to employ any # of brokers, 2.)the seller is obligated to pay a commission to the broker who produces a ready, able buyer, 3.) the seller is not obligated to pay a commission if the seller sells the property (no broker).
A multiple-listing clause:	permits cooperation with other brokers in the multiple listing service (MLS)
A net listing has the following characteristics:	1.)the excess over the net from the sale will go to the listing broker as commission, 2.)the broker is free to offer the property at any price greater than the net amount, 3.)net listings may be prohibited by state law.
A listing agreement may be terminated when:	1.)agreement's purpose is fulfilled, 2.)term expires, 3.)property destroyed, 4.)title of property is transferred, 5.)broker and seller mutually agree to end the listing, 6.)either party dies, 7.)broker or seller breaches the contract
The broker protection clause:	preserves a broker's commission if, within a certain number of days, the owner transfers the property to someone teh broker introduced to them.
Disclosures of agency relationships and property conditions are important...	consumer safeguards and may be required by state law.
Government powers can be recalled by using the letters PETE: P-Police power: is the state's authority-passed down to municipalities and counties through enabling acts-to enact non discriminatory legislation to:	1.)Preserve order, 2.)protect the public health and safety and, 3.)promote the general welfare of citizens.
Government powers can be recalled by using the letters PETE: E- Eminent domain:	the government's right to acquire privately owned a real estate for a public or economically beneficial use through; condemnation- a process that begins with a judicial or an administrative proceeding or compensation paid to the owner.
Government powers can be recalled by using the letters PETE: T- Taxation:	is a charge on real estate to raise funds to meet public needs.
Government powers can be recalled by using letters PETE: E- Escheat:	occurs when the deceased has no will or lawful heirs.
A freehold estate lasts for an indeterminable length of time:	1.)fee simple- the highest estate recognized by law, 2.) fee simple defeasible- a qualified estate subject to occurrence or nonoccurrence of some specified event. 3.)life estate is based on the lifetime of a person.
An encumbrance:	is a claim, charge, or liability that attaches to real estate.
An encumbrance may be one of the following:	1.)Liens, 2.)Covenants, conditions, and restrictions (CC&Rs)
Liens:	are charges against property that provides security for a debt or obligation of the property owner.
Covenants, conditions, and restrictions (CC&Rs):	are private agreements that affect the use of land.
Easements:	rights to use the land of another.
An appurtenant easement is said to...	run with the land when the title is transferred.
An easement in gross:	an individual or company interest in or right to use another's land.
An easement is usually created by...	written agreement between the parties.
An easement by necessity arises when...	land has no access to a street or public way.
An easement by prescription is acquired when:	a claimant has used another's land for 10 to 21 years. the use must be visible, open, and notorious.
An easement is terminated when:	1.) need no longer exists, 2.) the owner of either the dominant or the servient tenement becomes the sole owner, 3.) the owner of a servient tenement releases the right of easement, 4.) easement is abandoned, 5.) the nonuse of prescriptive easement.
License:	a personal privilege to enter the land of another for a specific purpose.
Encroachment occurs when:	all or part of a structure illegally intrudes on the land of another or beyond legal building lines.
Water rights are determined by common law and statute:	Riparian rights, Littoral rights, the doctrine of prior appropriation
Riparian rights:	common-law rights granted to owners of land along rivers, streams, or similar bodies of water.
Littoral rights:	belong to owners of land the borders commercially navigable lakes, seas, and oceans.
The doctrine of prior appropriation in some states provides that water use, aside from limited domestic use, is controlled by the:	state rather than the landowner adjacent to the water; to the use of water, the landowner must demonstrate beneficial use of the water, such as irrigation of crops.
Ownership in severalty:	title held by one individual
Ownership in severalty characteristics:	1.)sole rights to ownership, 2.)sole discretion to transfer part or all ownership rights to another person, 3.)may be a single individual or an artificial person, such as corporation.
Co-ownership:	title held by two or more individuals
Co-ownership four forms:	1.)Tenancy in common, 2.)Joint tenancy, 3.)Tenancy by the entirety, 4.)Community property
Tenancy in common:	1.)each tenant holds an undivided fractional interest, 2.)co-owners have unity of possession, 3.) each interest can be sold, conveyed, mortgaged, or transferred; and 4.)interest passes by will when a co-owner dies.
Unity of Possession:	all joint tenants have undivided right to possession
Joint Tenancy: tenants enjoy the four unities (PITT):	1.)unity of possession, 2.)unity of interest, 3.)unity of time, 4.)unity of title
Unity of interest:	all joint tenants own an equal interest
Unity of time:	all the joint tenants acquire their interest at the same time
Unity of title:	title is conveyed to all joint tenants by the same document
Joint tenants also enjoy the right of survivorship:	upon the death of a joint tenant, interest passes to the other joint tenant or tenants.
Termination of joint tenancy is by:	1.)death of all but one joint tenant, who then owes the property in severalty; 2.)conveyance of a joint tenant's interest, but only as to that interest; or 3.)partition, which can be brought to force division or sale of property.
Tenancy by entirety, recognized by some states, has the following characteristics:	1.)only available to husband and wife, 2.) title conveyed by deed signed by both, 3.) carries right of survivorship; survivor becomes owner in severalty.
Community Property:	1.)recognized by 9 states as of 2010, is generally property acquired during marriage that is not separate property, 2.) requires the signatures of both spouses to be conveyed.
Separate Property:	1.)property owned by one spouse before marriage, or by inheritance or gift or with proceeds of separate property, 2.)one spouse requires only that spouse's signature to be conveyed.
On the death of one spouse, the other spouse owns...	one-half of community property and other half is distributed according to deceased spouse's will or according to state law.
A partnership:	an association of two or more persons who carry on a business for profit as co-owners in general or limited partnership, as provided by state law.
In a general partnership:	1.) all partners participate in operation and management and 2.) partners share full liability for business losses and obligations, 3.) run the business.
A limited partnership:	1.)has both general partners and limited partners, 2.) do not participate in running the business and are liable for business losses only up to the amount of the individual's investment.
A limited liability company (LLC): may be permitted by state law, and offers members benefits:	1.)limited liability offered by a corporate form of ownership, 2.) tax advantages of a partnership (no double taxation), 3.) flexible management structure without corporation requirements or restrictions on limited partnership.
Condominium laws of each state define the following:	1.)the condominium owner holds fees simple title to the airspace of a unit as well as an undivided share in the remainder of the building and land, known as the common elements 2. ) units mortgaged; default on payments do not affect other unit owners.
Common elements:	are owned by condominium unit owners as tenants in common.
The condominium is administered by the homeowner's association of unit owners that may...	decide to hire an outside property management firm.
Maintenance of common elements is funded by...	fees charged to each unit owners
The condominium association may have a right of first refusal...	when a unit owner wants to sell.
In a cooperative:	title to the land and the building is held by a corporation, which sells shares of stock to prospective tenants.
A purchaser of a stock becomes a...	shareholder in the corporation and receives a proprietary lease to the apartment for the life of the corporation.
Stock is owned as...	personal property and not real estate.
The lender may accept stock as...	collateral for financing, which expands the pool of potential owners.
The IRS treats a cooperative the same as...	houses or condominiums for tax purposes.
In a townhouse, a form of ownership in which houses share...	common vertical walls
titles to individual units include a...	fractional interest in common areas.
A time-share permits the sale of a leasehold interest (time-share use) or deeded ownership (time-share estate) that allows...	occupancy during a specific period, typically weekly.
Timeshare ownership permits:	multiple purchasers to buy interests in real estate, a form of ownership most commonly found with resort property.
The Model Real Estate Timeshare Act:	deals with timeshare management and protections for purchasers of units.
The Three methods of legal description of land:	1.)metes-and-bounds method, 2.) rectangular survey system (government survey system), 3.)lot and block (recorded plat) system
The metes-and-bounds method:	1.)measures distances (metes), 2.) starts from a point of beginning (POB) 3.)follows compass directions/angles (bounds), 4.) arrives at POE (point of end), must be same as POB, 5.)uses monuments to identify the POB/where boundary lines change direction.
The rectangular survey system (government survey system):	1.)divides land into rectangles, 2.) measured from the intersection of principal meridians and baselines; referenced by degrees of longitude and latitude; uses township lines; 6 miles apart, units called townships of 36 squ miles, rows- tiers; rangle line
The lot-and-block (recorded plat) system:	1.)divides a larger parcel further into block (subdivision) and lot (individual parcel) numbers and, 2.) references all data in a subdivision plat map, noting info required that is; approved by the governing body, and filed in public record, etc.
Survey preparation includes both a...	legal description and survey sketch.
Legal description must be transcribed exactly as written to avoid	future problems over incorrect boundaries.
Elevations must be measure if air loys above the surface or subsurface rights are to be described and conveyed, with...	1.)distances noted above or below datum, defined by U.S. Geological Survey (USGS) as mean sea level at New York Harbor. 2.) permanent benchmarks often based on local official datum, 3.) monuments marking surface measurements between points.
The most common units of land measurements include...	1.) mile-5,280 feet, 2.) acre- 43,560 square feet, 3.)square mile- 640 acres.
A lien:	a claim of a creditor or taxing authority against the real property of a debtor that is used as security to ensure repayment of the debt; a lien is not an ownership interest in real estate, lessens its value or impairs; binds all involved until paid/clear
if a debtor defaults in payment of debt, a lienholder must bring legal action to...	1.)force the sale of the property, or 2.) acquire title.
Creation of lien may be VISE:	1.)Voluntary-if created by action of the property owner, such as a mortgage,2.) Involuntarily-if created without the property owner's express permission, 3.)Statutory- if created by statute, 4.) Equitable- if created by a court based on the common law.
A lien is either....	General or specific
General Lien:	affects all of a debtor's property, both real and personal. general liens include judgments, estate and inheritance taxes, decedent's debts, corporate franchise taxes, and Internal Revenue Service taxes.
Specific Lien:	affects only identified property. specific liens include vendor's liens, a mechanic's lien, a mortgage lien, a real estate lien, and a lien for special assessments and utilities.
Priority of liens determine the order in which claims will be satisfied (paid off):	1.)generally, first to record is first in right, 2.) real estate taxes and special assessments take priority over all other liens. 3.)a subordination agreement between lienholders can be used to change order of priority.
Real estate taxes include:	1.) ad valorem, 2.) exemptions, 3.) reductions, 4.) property assessments (valuations) 5.) tax rates for each taxing body
ad valorem taxes, based on value of property taxed, are...	1.)specific, involuntary, statutory liens; and 2.) levied by states, counties, municipalities, school districts, utility districts, parks and recreation districts.
Exemptions may be available for...	schools, parks, hospitals, or property owned by municipal, state, or federal governments, or religious or charitable organizations
Reductions in tax may be made for...	certain homeowners, including low-income homeowners, senior citizens, and veterans, or for property owned by industries, sports, franchises, or farmers.
Property assessments (valuations) are conducted by..	county or township tax assessors or appraisers.
Assessed value:	generally based on sales prices of comparable properties. land value may be assessed separately from building value and improvements and different valuation methods may be used for different types of property.
Equalization factor:	may be applied to correct inequalities in statewide tax assessments.
Tax rates for each taxing body are...	computed separately (and may be expressed in mills- 1/1,000 of a dollar, or $0.001). mills may be shown as dollars per hundred or thousand dollars of assessed value.
Enforcement of tax liens:	1.)delinquent taxes collected through tax sale. 2.)statutory notice requirements must be followed before a tax sale. 3.)taxpayer usually has equitable right of redemption. 4.)state must allow statutory right of redemption; if no bidders-property forfeited
The bidder at a tax sale who bids the lowest redemption interest rate receives:	the certificate of sale.
Levied on property that benefits from public improvements, special assessments:	1.)are always specific and statutory, 2.)may be voluntary or involuntary, and 3.) are usually paid in annual installments over a period of years.
A mortgage or deed of trust lien is a:	voluntary lien given to a lender by a borrower as security for a real estate loan. The lien takes effect when the lender records the documents in the country where the property is located.
A first mortgage lien on a property, when recorded, has...	priority over other liens (except for tax liens); subsequent liens are junior liens.
A mechanic's lien is a:	specific, involuntary lien that gives security to persons or companies that perform labor or furnish material to improve real property; is filed when an owner has not fully paid for work or the general contractor has been compensated but has not paid.
A judgement:	a decree issued by court, is a general, involuntary, equitable lien on both real and personal property owned by a debtor that must be filed in every country in which judgement debtor owns property.
While a lawsuit is pending:	1.) lis pendens 2.) writ of attachment
lis pendens:	can be filed to give notice of a possible future lien and establish priority of the claimant
writ of attachment:	can be sought from the court to authorize the sheriff to seize the property that the debtor may attempt to transfer.
Estate and inheritance tax liens:	are general, statutory, involuntary liens that encumber a deceased person's real and personal property and are normally paid or cleared in a probate proceeding.
A lien for municipal utilities:	is a specific, equitable, involuntary lien on the property of the owner who refuses to pay bills for municipal utility services.
A corporation franchise tax lien:	is a general, statutory, involuntary lien on real property and personal property owned by the corporation
An IRS tax lien:	is a general, statutory, involuntary lien on all real and personal property held by a delinquent taxpayer; it does not supersede previously recorded liens (which is also true of most state income tax liens).
Characteristics of valid contract: A voluntary agreement based on consent:	if a mistake, misrepresentation, fraud, undue influence, or duress occurs, it is voidable by the injured party.
Characteristics of valid contract: The agreement or promise is based on...	an offer by one party (offeror) that is accepted by the other (offeree).
Characteristics of valid contract: Mutual assent or meeting of...	the mind exists.
Acceptance and revocation must be...	communicated by offeree and offeror.
A counteroffer:	terminates the original offer and initiates a new offer
Characteristics of valid contract: Made by legally competent parties between parties of legal age who are able to understand the nature or consequences of their actions:	a contract with a minor is voidable.
Characteristics of valid contract: Supported by legal consideration:	1.)something of legal value, which could be love and affection and 2.) free of undue influence or fraud; concerned with legal act.
A contract may be:	1.)implied by conduct of parties,2.)required to be in writing, enforceable in a court of law; 3.) bilateral or unilateral, 4.)executed or executory; 5.) void if one essential element is missing/voidable if may be rescinded and disaffirmed
Contract vocab: Bilateral, unilateral, executed, and executory:	1.)bilateral- having obligations on both sides,2.) unilateral- a promise by one side that can be accepted or rejected by the other side,3.) executed-all parties have fulfilled their promises,4.) executory-one or both parties still have an act to perform
How contracts may be discharged (completed): (performance, partial performance, substantial performance, impossibility of performance)	1.)performance- completes the contract terms,2.)partial performance-if agreeable to both parties,3.)substantial performance-depending on circumstances,4.)impossibility of performance-require acts cannot be legally accomplished
How contracts may be discharged (completed): Part 2: (hint:novation, breach, statute of limitations, mutual agreement, operation of law)	1.)novation-substitutes a new contract for the original, 2.)breach by one of the parties, 3.) failure to enforce contract within statute of limitations,4.)mutual agreements of parties,5.)operation of law, contract is voided,6.)cancelation
Real estate contracts may be completed by...	real estate licensees if preprinted, standard contract forms are used. 1.) real estate licensees who are not licensed attorneys may not practice law.
Standard forms may include:	1.)real estate sales contract, 2.) land contract- contract for deed, bond for title, installment contract, land sales contract, articles of agreement for warranty deed 3.) escrow agreement- between buyer, seller, and escrow holder
Real estate sales contract:	1.)usually accompanied by an earnest money deposit held in trust or escrow account to void commingling with broker's funds. 2.)contingencies to the sale (such as mortgage, property sales contingencies) must be stated in contract; disclosures required.
Title is:	ownership, or the right to ownership, of land and evidence of that ownership .
Voluntary alienation is the:	voluntary transfer of title to real estate by gift or sale, using some form of deed.
Grantor: (all names the grantor has used should be provided)	1.)person who transfers the title, must be of legal age and legally competent to execute (sign) a deed. A deed executed by a minor is voidable. 2.)mental impairment at signing deed makes deed voidable; if grantor declared incompetent by judge, deed void.
Grantee:	must be identifiable with sufficient certainty
Consideration (payment) of some form...	must be stated
Granting clause (words of conveyance)...	must be used
Habendum clause must...	define ownership interest taken by the grantee; it specifies limits on ownership, such as with a timeshare.
What is essential to the property conveyed?	legal description
Exceptions or reservations of any relevance...	must be included.
Signature of the grantor(s) must be acknowledged by a...	notary public or other official authorized by the state in which the property is located
Delivery of the deed and acceptance by the grantee...	is necessary.
Types of deeds include:	1.)general warranty deed,2.)special warranty deed,3.)bargain and sale deed,4.)quitclaim deed
General warranty deed:	provides the greatest protection to the grantee and includes; covenant of seisin;covenant against encumbrances;covenant of quiet employment; covenant of further assurance; covenant of warranty forever.
Covenant of seisin (under General warranty deed):	warrants the grantor has the right to convey title
Covenant against encumbrance (under General warranty deed):	warrants the property is free from liens or encumbrances, unless expressly stated
Covenant of quiet enjoyment (under General warranty deed):	makes the grantor liable for damages if the grantee's title is found to be inferior
Covenant of further assurance (under General warranty deed):	the grantor's promise to obtain any other document necessary to convey good title
Covenant of warranty forever (under General warranty deed):	the grantor's promise to compensate the grantee if title fails at any future time.
Special warranty deed:	includes the warranties that the grantor received title and that the property was not encumbered during the time the grantor held title, except as otherwise noted.
Bargain and sale deed:	implies that the grantor hold title and possession of the property, and there are no express warranties against encumbrances
Quitclaim deed:	provides the least protection of any deed, carries no covenants or warranties, and conveys only whatever interest the grantor may have when the deed is delivered.
Transfer tax stamps may be required to be...	affixed to deeds and conveyances before being recorded, with the tax rate depending on state, county, and city requirements.
Involuntary alienation (transfer) of title to property is usually by...	operation of law
Escheat:	property taken by state when deceased has no heirs
Eminent domain:	property taken by public or government agency
Foreclosure:	property taken by creditor for nonpayment of debt secured by real property.
Adverse Possession:	property seizure occurring when someone who is not the lawful owner takes possession of property for the length of time specified by state law and usually in a way that is open, notorious, continuous, hostile, ad adverse.
Transfer of title by will occurs when the deceased dies testate (leaving a will), prepared as required by state law that generally includes:	1.)wills can be changed codicil or revoked while the testator is still alive. 2.) devise,3.) bequest,4.) legacy, 5.) to pass title to property on death- will must be filed with the court and probated,6.) wills cannot supersede laws protecting inheritance.
Devise:	is a gift of real property by will to the devisee.
Bequest:	is a gift of personal property
Legacy:	is a gift of money
Transfer of title under a state's statute of descent and distribution occurs...	when a person dies intestate (without a will)
Probate proceedings must have an...	administrator appointed, and laws of the state where the real property is located govern property distribution.
To serve as constructive notice, and with priority over subsequent documents, a written document is needed that:	1.)affects the estate, right, title, or interest in land (deeds, mortgages,tax liens, etc.)2.) must be drafted and executed (signed)3.) written in accordance to state law,4.) recorded in the public records, held in county where property is located.
Public records are typically searched by...	title companies that provide title insurance to prospective purchasers based on the findings of the title search.
Constructive notice of a document is assumed when...	due diligence (such as a search of public records and inspection of the property) would reveal its existence
Actual notice:	means that an individual has direct knowledge of documents in the public records and facts revealed by an inspection of the property
Unrecorded documents that may affect title , such as a tax lien, may not be recorded immediately, yet are still...	given priority by law and require a search of tax records and other sources.
Chain of title is a record of property ownership, but it does not include liens and other encumbrances:	1.)a gap in the chain or other dispute of ownership creates a cloud on the title, 2.) a cloud on title is resolved by suit to quiet title.
An abstract of title, prepared by an abstractor or an attorney, is a...	summary report of what the title search reveals. it includes all recorded liens and encumbrance and lists records searched but does not indicate forgeries and interests that are unrecorded or could be discovered by property inspection.
A marketable title is one that must:	1.)not have serious defects, nor rely on doubtful questions of law or fact to prove its validity; 2.)not expose the purchaser to litigation and, 3.)convince a reasonably well-informed and prudent purchaser that the property could be sold or mortgaged.
Proof of ownership may be established by...	certificate of title, but will not reveal unrecorded liens or rights of parties in possession.
Title insurance:	issued as an owner's policy or mortgage's (lender) policy under which the insured is protected from losses arising from defects in title, insures against hidden defects and identifies exclusions that include readily apparent title defects, zoning, etc.
The Torrens system, used in fewer than ten states, provides confirmed...	certificate of title by the county clerk that requires no further search to validate.
In a mortgage, the mortgagor (owner) borrows money from the...	mortgagee (lender), and the real estate is used as security for the debt.
The term mortgage refers to any...	financing instrument by which real estate is used as security for a debt. the mortgage can take the form of either a mortgage lien or a deed of trust.
Mortgage lien:	the common-law form of mortgage.
Mortgage lien Characteristics:	1.)lien theory,2.) mortgage document executed by the borrower and recorded where property located,3.)when a loan is paid in full-a defeasance clause recorded to clear title,4.)if the borrower defaults; lender can accelerate the date; judicial foreclosure
A deed of trust transfers title from the trustor (property owner) to...	a trustee, who holds it on behalf of a beneficiary (lender).
Note what about a deed of trust:	1.)title-theory,2.)a deed of trust-executed by the borrower is recorded in country where property is located,3.) the mortgagor transfers legal title to the mortgagee but retains equitable title and has right to possession and use the mortgaged property.
When the loan is paid in full, a defeasance clause requires the...	beneficiary to request the trustee to execute and deliver to the trustor a release deed (deed of conveyance) to return legal title to the trustor.
If the borrower defaults, the lender can...	accelerate the due date of the remaining principal balance and all overdue costs.
If the borrower continues in default, the lender can bring court action called judicial foreclosure where:	1.) judge orders property sold,2.) public sale advertised and the real estate is sold to highest bidder,3.) equitable rights of redemption,4.)don't need court action to begin sale process if trust has a power-of-sale clause,5.) can award title to lender
The lender may accept a deed in lieu of foreclosure from a defaulting borrower, but title is subject to...	junior liens that are eliminated in a foreclosure.
If the borrower continues in default, a deed of trust with power of sale allows the beneficiary (lender) to ask the trustee...	to conduct the trustee's sale without court action.
Priority of mortgages and other liens is determined by:	the order in which they were recorded.
Priority may be changed by...	subordination agreement
An impound (escrow) account may be required to create a...	reserve fund to ensure that future tax, property insurance, and other payments are made.
Borrower:	funds the account through an increase in loan payment that can be remembered as PITI (Principial, Interest, Taxes, and Insurance)
Lender:	makes taxes, insurance, and other payments on the borrower's behalf.
The National Flood Insurance Reform Act of 1994:	imposes obligations on lenders and loan services to set aside escrow funds for flood insurance on new loans for property in flood-prone areas
When property with an outstanding mortgage or deed of trust is conveyed, the new owner may take title in one of two ways, if allowed by the loan document:	1.)"Subject to"- the new owner makes payments on existing loans but not personally liable if property is sold on default and proceeds of the sale don't satisfy debt. "Subject to" no longer in use. 2.)assuming existing mortgage/agreeing to pay the debt.
An alienation clause (due-on-sale clause) in a loan document will...	prevent future purchasers of the property from assuming the loan.
The novation agreement may be used to release...	the seller from any future liability on loans secured by the real estate.
The Federal Reserve System (Fed) consists of...	12 federal reserve district banks
The primary mortgage market consists of...	lenders that originate mortgage loans based on: finance charges, recurring income, sale of loans on the secondary mortgage market, and fees for loan servicing for other mortgages lenders or investors who have purchased the loans.
finance charges collected at loan closing, include:	loan originations fees and discount points
recurring income-	interest collected during the term of loan, if kept; funds generated by sale of loans on the secondary mortgage market, and fees for loan servicing.
The primary mortgage market lenders include:	1.)Fiduciary lenders,2.) Insurance companies-generally investing in long-term commercial, industrial, and large multifamily properties, 3.)credit unions 4.)pension funds,5.) Endowment funds of colleges,6.)Investment group financing,7.)mortgage brokers
Fiduciary lenders:	thrifts, savings associations, commercial banks- subject to the: Federal Deposit Insurance Corporation (FDIC)
Investment group financing:	joint ventures, syndicates, limited partnerships, and real estate investment trusts (REITs)
The secondary mortgage market, where loans are bought and sold after being funded, does what?	1.)provides income to lenders and frees up funds to make more loans, with lenders often retaining servicing functions for a fee,2.)purchases mortgage loans through agencies, assembles them into packages 'pools', and sells them as shares to investors.
Fannie Mae (Federal National Mortgage Association) is:	1.)government-owned with privately issued common stock,2.) creates mortgage-backed securities using pools of mortgage as collateral; and 3.) deals in conventional, FHA, and VA loans.
Freddie Mac (Federal Home Loan Mortgage Corporation) is:	1.)government-owned and,2.) has authority to purchase mortgages, pool them, and use them as security for bonds sold on the open market but does not guarantee payment of mortgages.
Ginnie Mae (Government National Mortgage Association):	entirely a government agency, a division of the Department of Housing and Urban Development (HUD), organized as a corporation but without corporate stock that; administers special assistance programs and guarantees mortgaged based securities.
Types of Financing:	1.)Straight loan (term loan or interest-only loan),2.) Balloon payment (partially amortized) loan,3.) Amortized (fully amortized) loan, 4.) adjustable-rate mortgage (ARM),5.) growing equity (rapid pay-off) mortgage, 6.) reverse mortgage
Straight loan (term loan or interest-only loan) -type of financing:	periodic payments of interest only for the life of the loan, with payment of principal in full of the end of the loan term
Balloon payment (partially amortized) loan- type of financing:	periodic payments of interest and principal and are not great enough to pay down entire amount borrowed by end of loan term, resulting in a larger final payment.
Amortized (fully amortized) loan- type of financing:	equal periodic payments of interest and principal result in complete payment of amount borrowed over the term of the loan
Adjustable-rate mortgage (ARM)- type of financing:	lower initial rate of interest that may change over the life of the loan based on a specified index, usually tied to U.S. Treasury securities.
Growing equity (rapid-payoff) mortgage- type of financing:	fixed interest rate but payments of principal increased according to an index or schedule so that the loan is paid off more quickly
Reverse Mortgage:	payments made by the lender to the borrower, at regular intervals (such as monthly), in a lump sum, or as a line of credit to be drawn against, allowing the borrower to remain in the home while receiving income.
Conventional loans are the..	most secure loans; not government-insured or guaranteed
The loan-to-value ratio (LTV) is often...	lowest for these loans- traditionally 80%-meaning the down payment is 20%, but the LTV may be as high as 100%
Conventional loans meet all the requirements of the secondary market, set by Fannie Mae and Freddie Mac, for conforming loans, including:	1.)borrower's monthly housing expenses, including PITI, should be no more than 28% of total monthly gross income, 2.) the borrower's total monthly obligations, must not exceed 36% of the total monthly gross income
Nonconforming loans must be...	retained in the lender's investment portfolio.
Private Mortgage Insurance (PMI) may be required for LTVs higher than 80%; following PMI conditions:	1.)Federal law requires PMI to auto terminate if the borrower has 22 percent equity in the house (based on purchase price) and is current on mortgage payments,2.) Fannie Mae/Freddie Mae have extended the auto termination option to goodstanding loans.
FHA-insured loans are...	backed by the Federal Housing Administration (FHA), which is part of HUD. FHA does not make loans but insures loans made by an FHA-approved lending institution.
Mortgage insurance premium (MIP) has an up-front fee along with...	monthly installments. the premium can be financed within the loan.
VA-guaranteed loans are backed by...	the Department of Veterans Affairs and are available to eligible veteran and spouses.
The Farm Service Agency (FSA), formerly Farmers Home Administration, is part of the Department of Agriculture and has the following programs to help families purchase or operate family farms:	1.)Rural Housing and Community Development Service (RHCDS) 2.) Farm Credit System, 3.) Farmer Mac (formerly Federal Agricultural Mortgage Corporation)
Other types of loans include:	1.)purchase-money mortgage,2.)package loan,3.)blanket loan,4.) wraparound loans,5.) open-end loan,6.) construction loans,7.) sale-and-leaseback loans, 8.) buydown,9.) home equity loan
A purchase-money mortgage:	is a note and mortgage created at the time of purchase
The package loan:	includes all personal property and appliances as well as real estate
A blanket loans:	covers more than one parcel or lot, and a partial release clause allows a borrower to pay off part of a loan to remove the liens from one parcel or lot at a time.
Wraparound loans:	allow the borrower to obtain additional financing, retaining the first loan on the property.
An open-end loan:	secures the current loan to the borrower and future advances made by the lender to the borrower.
Construction loans:	finance construction of property improvements
Sale-and-leaseback loans:	are used to finance commercial or industrial properties.
a buydown is a payment made...	at closing to reduce the interest rate on the loan.
A home equity loan (home equity line of credit or HELOC) is...	junior to the original lien.
The Truth in Lending Act, Regulation Z of the Federal Trade Commission (FTC) requires that when a loan is secured by a residence, lenders inform borrowers of the true cost of obtaining credit, within the following rules:	1.)the borrower has a three-day right of rescission,2.)advertising is strictly regulated,3.) there is a $10,000 penalty for each day the violation continues.
The Equal Credit Opportunity Act (ECOA) prohibits...	discrimination in granting or arranging credit on the basis of race, religion,national origin, sex, marital status, age (as long as the applicant is not a minor), or dependence on public assistance.
Computerized loan origination (CLO) allows real estate brokers and salespersons to...	assist loan applicants in surveying lenders and providing information
Automated underwriting (loan processing) programs include:	Fannie Mae's Desktop Underwriter and Freddie Mac's Loan Prospector.
A credit score may be used as part of a...	loan application evaluation process.
A lease is:	a contract between the lessor (the owner of real estate) and the lessee that transfers possession and use of the property, lasts for a specified period, and is made in return for consideration (possession and payment)
The statute of frauds in most states requires that...	leases for more than one year be in writing to be enforceable.
The lessor (landlord) has a what, when a lease expires?	Reversionary right to possession of property
The lessee (tenant) has a leasehold estate that can be:	1.) estate for years, 2.) estate from period to period,3.) estate at will, 4.) estate at sufferance.
Estate for years (tenancy for years):	continues for a definite period
Estate from period to period (periodic tenancy):	has no specific expiration date, but rent is payable at definite intervals; has continuity because it automatically renews; month to month tenancy; holdover tenancy
Month-to-month tenancy:	common form of residential lease
Holdover tenancy:	created when a tenant with an estate for years stays on after the term expires and landlord accepts rent payment
Estate at will (tenancy at will):	has no specified initial term, is created by express agreement or operation of law, and can be terminated by the landlord or the tenant at any time on proper notice.
Estate at sufferance (tenancy of sufferance):	created when the tenant stays without the landlord's consent after termination; the landlord's acceptance of rent creates a holdover tenancy; landlord can treat a tenant as a trespasser and begin eviction proceedings/action for damages under state laws.
A valid lease requires parties with CLOAC (capacity to contract, Legal objectives, Offer and Acceptance and valid Consideration) and includes:	1.)description of leased premises,2.)implied covenant of quiet enjoyment,3.) limitations on tenant's use of the property and length of the lease,4.)security deposit,5.)maintenance,6.) sublease provisions,7.)recording of lease,8) nondisturbance clause
A valid lease requires parties with CLOAC and includes: Option that may give the tenant the...	right to renew the lease, right to purchase property, or right of first refusal before landlord can sell the property.
Whether improvements may be made by the tenant:	1.)fixtures generally become landlords property,2.)federal fair housing law requires that the landlord allows a tenant with a physical disability to make reasonable modifications
Americans with Disabilities Act (ADA):	requires that commercial nonresidential property be free of barriers or that reasonable accommodations be provided
A gross lease:	requires the tenant pay basic rent and the landlord to pay expenses of ownership
A net lease:	requires the tenant to pay basic rent plus all or most property expenses and the landlord to pay some property expenses
In a percentage lease:	the tenant pays basic rent plus a percentage of gross sales and may pay property expenses.
A variable lease:	allows an increase in rent during the lease period.
A graduated lease:	states the specific rent increases.
An index lease:	allows rent changes (up or down) based on the consumer price index or other indicator.
A ground lease:	involves separate ownership of the land and the buildings
An oil and gas lease:	allows exploration for and removal of oil and gas
in a lease purchase:	part of the rent may be applied to the purchase price.
A sale-and-leaseback:	allows the original owner to use the property while freeing up capital for other business purposes.
The remedies for breach of a lease are governed by state law and include:	1.)the landlord may bring suit for possession (actual eviction) 2.)the tenant may claim constructive eviction if the premises are unstable.
The Uniform Residential Landlord and Tenant Act has been adopted by...	some states.
The Fair Housing Amendments Act of 1988 prohibits...	discrimination on the basis of race, religion. national origin, sex, marital status, disability. State and local governments may add more protected groups.
Risk management includes...	treatment of risk by deciding whether to avoid it, control it, transfer it, or retain it (ACTOR) and focuses on tenant security and types of insurance available.
The environmental concerns that require attention of the property manager include:	1.)disposal of hazardous wastes, 2.)lead-based paint disclosure for residential property constructed before 1978
Appraisal:	an estimate or opinion of value based on supportable evidence and appraisal methods, defined by the Uniform Standards of Appraisal Practice (USPAP) and set by the Appraisal Foundation's Appraisal Standards Board.
An Appraiser:	must be state-licensed or certified for an appraisal performed as part of a federally related transaction.
A competitive market analysis (CMA):	a report by a real estate salesperson of market statistics, but it is not an appraisal.
A broker's price opinion (BPO):	may be used in a non-federally related transactions: home equity lines, refinancing, portfolio management, loss mitigation, and collections.
Value is created by...	Demand, Utility, Scarcity, and Transferability of property (DUST)
Market Value is the most probable price that property should bring in a fair sale, but not necessarily the same as...?	price paid or cost to construct.
A sales comparison approach (market data approach):	makes use of sales and of properties comparable (referred to as comps) to the property that is the subject of the appraisal by adding or subtracting the value of a feature present or absent in the subject property versus the comparable.
The cost approach estimates:	current reproduction or replacement of constructing building and other property improvements using measurement methods.
Cost approach uses these methods to estimate:	square-foot method,unit-in-place method,quantity-survey method,index method; and estimates accrued depreciation using the straight-line method (economic age-life method), or by estimating items of physical deterioration, functional/external obsolescence
Income approach is based on:	the present value of the right to future income and uses 5 steps.
Income Approach five steps: (5. derive estimate of subject's market value by applying cap rate to annual NOI using this formula: Net operating income/capitalization rate=value)	1.)estimate annual potential gross income,2.) deduct allowance for vacancy and rent loss to find effective gross income,3.)deduct annual operating expenses to find net operating income (NOI),4.) estimate rate of return (capitalization rate or cap rate)
Reconciliation is the process...	by which the validity and reliability of the results of the approaches to value are weighed objectively to determine the appraiser's final opinion of value.
Land use is controlled and regulated through:	1.)public restrictions- planning, zoning, building codes, subdivision plans; 2.) private restrictions imposed by deed ; and 3.) direct ownership of land by federal, state and local governments.
The police power of the state is its authority to create regulations to protect the public health. State enabling acts allow the power to enacted laws to be passed down to local governing authorities; such regulations must be:	1.)exercised in a reasonable manner,2) clear and specific,3.)nondiscriminatory, and,4.)applicable to all property in a similar manner.
Land may be taken for public use through the government's power of eminent domain or condemnation, with following limits:	1.)when a taking of property occurs,Fifth Amendment to the US Constitution requires that the owner be given just (fair) compensation,2.)a property owner may claim compensation under inverse condemnation is an adjacent public land use diminishes the value.
A comprehensive plan (master plan) created by a local government usually covers:	land use, housing needs, movement of people and goods, community facilities and utilities and energy conservation.
Zoning ordinances are local law implementing the land uses designated in the comprehensive plan and typically cover items as:	permitted uses, lot sizes, types of structures, building heights, setbacks, style and appearance of structures, density, and protection of natural resources.
Zoning classifies property by uses and types, such as:	commercial, industrial, residential, agricultural, and planned unit developments (PUDs)
Other ways in which zoning is used include:	1.)buffer zone separating residential from nonresidential areas,2.)bulk zoning to control density,3.)aesthetic zoning to specify certain types of architecture for new buildings, and incentive zoning to require certain uses in developments.
Zoning is enforced through the use of permits, and an individual case may be considered by a zoning hearing board (or zoning board of appeals), which may decide to zoning hearing board (or zoning board of appeals), which may decide to	1.)allows a nonconforming use to continue,2.) grant a variance from a zoning ordinance to permit a prohibited land use to avoid undue hardship, or 3.) grant a conditional-use permit (special-use permit)
building codes require permits for:	new construction and remodeling of or additions to existing construction.
A certificate of occupancy (occupancy permit) is issued upon:	satisfactory completion of work for which the permit was issued
Subdivision and land development ordinances may be created by the state or may be made part of a local government's...	comprehensive plan.
Subdivision and land development ordinances usually include:	1.)subdividers,2.) developers,3.)plat map (subdivision map),4.)subdivision plan,5.)private land-use controls, such as restrictive covenants (deed restrictions); if in conflict with local zoning, the more restrictive controls apply.
The Federal Interstate Land Sales Full Disclosure Act:	regulates the interstate sale of unimproved lots in subdivisions of 25 or more lots or less than 20 acres each. The law does not apply to subdivisions sold solely to developers
State subdivision laws may also apply to sales within the state of subdivisions located either...	inside or outside the state.
Subdividers:	who buy undeveloped acreage and divide it into smaller lots for sale to individuals or developers.
Developers:	who improve the land, construct homes or other buildings, and sell them.
Plat map (Subdivision map):	which describes subdivision features and compliance with zoning and other laws, including utlitiy easements, and density zoning.
Private land-use controls, such as restrictive covenants (deed restrictions):	which are places in deeds to all property owners in a subdivision and cannot impose an illegal covenant or condition and may be enforced by injunction against property owner in violation of covenant or restriction.
Equal opportunity if housing is intended to:	create a marketplace in which all persons of similar financial means have a similar range of housing choices.
Equal opportunity laws apply to	owners, real estate licensees, apartment management companies, real estate organizations, and lending agencies, builders, and developers.
The Civil Rights Act of 1866:	1.)granted equal housing opportunities to all US citizens. 2.) was upheld in Jones v Mayer,1968 and 3.) prohibits all racial discrimination with no exceptions.
Race was defined by the US Supreme Court to include:	ancestral and ethnic characteristics, including certain physical, cultural, or linguistic traits that are shared by a group with a common national origin.
The federal Fair Housing Act is Title VIII of the Civil Rights Act of 1968 and:	1.) prohibits discrimination in housing based on race, color, religion, national origin,2.)does not prohibit discrimination based solely on a person's citizenship status,3.) prohibits illegal activities that include steering, blockbusting, and redlining
The Housing and Community Development Act of 1974 added what to list of protected classes?	sex (male/female)
The Fair Housing Amendment Act of 1988 which added:	disability and familial status (families with children) to protected classes; prohibits discrimination on individuals because of their association with people in the protected class; HUD- created the equal housing opportunity poster, establishes rules.
The 1995 Fair Housing Amendment repealed facilities and services requirements designed for older persons and prohibited an award of monetary damages against those who:	reasonably reply in good faith on property designated as housing for older persons as being exempt from familial status provisions of the Fair Housing Act.
Exemptions from the Fair Housing Act (but not the Civil Rights Act of 1866) include:	1.)rentals in owner-occupied buildings with no more than four units;2.)housing operated by organizations and private clubs that limit occupancy to members; and 3.)the sale/rental of a single-family home when fewer than 3 homes are owned by an individual
Housing is exempt from familial status protection if it is restricted to persons age...	62 or older or if 80% of the units are occupied by persons over age of 55.
The Equal Credit Opportunity Act of 1974 prohibits:	discrimination in lending on the basis of race, color, religion, national origin, sex, age, marital status, and public assistance.
Familial Status extends fair housing protections to families with children, meaning a family in which one or more individuals under the age of 18 live with either a parent or a guardian or a woman who is pregnant, including:	1.)families with kids must be under same terms and conditions as anyone else,2.)the property can't be advertised as adults only, ads cannot indicate limitation on the # of kids accepted. 3.)limitations on # of people permitted to reside in a property.
A disability is a:	physical or mental impairment and substantially limits one or more of an individual's major life activities. (AIDS is a disability)
More about disabilities:	1.)the law does not protect against current users of illegal or controlled substances or who have been convicted of illegal manufacture/distribution. does protect those participating in addiction recovery; reasonable modifications to properties
The Americans with Disabilities Act (ADA):	prohibits discrimination in employment and public accommodations; access to facilities and services in commercial properties must be provided when reasonably achievable in existing buildings, with higher standards for new construction/remodeling.
Exempt properties include those who covered by:	federal fair housing laws.
Megan's Law requires that:	certain sex offenders register their home location. Although licensees are not required to provide this information, they may be required to inform buyers where the information can be obtained.
HUD enforces the Fair Housing Act in the following manner:	1.)a complaint must be brought within one year of the alleged act of discrimination, 2.) within 100 days of filing a complaint that is not referred by HUD to a local enforcement agency, HUD dismisses or goes forward with a charge of illegal discrimination
HUD enforcing the Fair Housing Act; Conciliation is the...	resolution of a complaint in the 100-day period when a respondent promises to remedy any violation.
HUD enforcing the Fair Housing Act; A complaint may be heard by an administrative law judge (ALJ), whose remedies include:	1.)up to $11,000 for the first offense,2.)$27,500 for the second violation in five years,3.)$55,000 for further violations in seven years,4.)injunction also issued.5.) civil action may be brought in federal court within two years of discriminatory act.
The attorney general may bring civil action in federal court and penalties may include a fine not to exceed:	1.)$50,000 for the first violation, 2.)$100,000 for second and subsequent violations.
Complaints under the Civil Rights Act of 1866 goes directly to..	federal court.
Real estate licenses must act legally and ethically to ensure...	equal access to housing.
Asbestos is a:	mineral composed of fibers that have fireproofing and insulating qualities; Asbestos is a health hazard when fibers break down and are inhaled; can be banned for use in insulation since 1978, encapsulation can prevent fibers from becoming airborne
Lead can be found in pipes, solder, paints, air, and soil; Note that lead...	1.)lead-based paint is found in many of the housing units built before 1978,2.)lead accumulates in the body and can damage the brain, nervous system, kidneys, and blood
The Lead-Based Paint Hazard Reduction Act of 1992 requires:	disclosure of known lead-based paint hazards to potential buyers or renters;real estate lessees provide buyers and lessees with "protect your family from lead in your home" a pamphlet created by EPA, HUD, and the US Consumer Product Safety Commission
Radon is an:	odorless, tasteless, radioactive gas produced by the natural decay of radioactive substances in the ground and is found throughout the US. Radon gas may cause lung cancer. Testing for radon in buildings is not a federal requirement.
Formaldehyde, described as a hazardous air pollutant in the Clean Air Act Amendments of 1990, is used for building and household products, such as urea-formaldehyde foam insulation (UEFI), and may cause:	respiratory problems, eye and skin irritations,and possibly skin cancer. Since 1985, it has been regulated by HUD for use in wood products.
Real estate licensees should check state formaldehyde disclosure requirements, and appraisers should note the:	presence of formaldehyde
Carbon monoxide (CO), a colorless, odorless gas that is by-product of fuel burning...	is produced by furnaces, water heaters, space heaters, fireplaces, and wood stoves; may cause carbon monoxide poisoning, which can result in death unless the gas is properly vented; and is detectable with available carbon monoxide detectors.
Polychlorinated biphenyls (PCBs) may be found in electrical equipment, note that:	PCBs are suspected of causing health problems; the manufacture of PCBs has been banned since January 1, 1979; the commercial distribution of PCBs has been banned since July 1, 1979.
Chlorofluorocarbons (CFCs), used in refrigerators, aerosol sprays, paints, solvents, and foam applications, are no longer manufactured worldwide, for the most part since 1996, and have been replaced by:	available environmentally friendly substitutes for home appliances.
Mold is present in the air everywhere and grows in the presence of moisture, oxygen, and a cellulosic (organic) food source, note that:	some molds can cause serious health problems; the EPA has guidelines for remediation and/or cleanup of mold and moisture problems in commercial buildings; real estate licensees should recommend a mold inspection if mold is evident or suspected.
Electromagnetic fields (EMFs) are produced by:	all electrical appliances. high voltage electrical lines producing EMFs are under investigation for health risks.
Groundwater is found under the Earth's surface and forms:	the water table.
The Safe Drinking Act (SDWA) of 1974 regulates:	the public drinking water supply.
On property transfers, any water source other than municipal supply should be:	tested, as should any septic system
Underground storage tanks (USTs), which contain petroleum products, industrial chemicals, and other substances, are a concern because the leakage may imperil both public and private water sources; note that:	1.)USTs are subject to federal law and state law,2.)the EPA regulates the federal UST program,3.)when a property purchase is being considered, a careful inspection of any property on which USTs are suspected should be conducted
Waste disposal sites can be owned by municipalities, be part of commercial enterprises, or be found on farms and other rural properties, note that:	a landfill disposal site, whether excavated or making use of previously mined property, is lined to prevent seepage, capped with soiled for aesthetic reasons, and vented to release gases created by decomposing waste.
Brownfields legislation encourages development of abandoned properties by:	shielding innocent developers from liability for toxic wastes that existed at a site prior to purchase.
The Comprehensive Environmental Response, Compensation, and Liability Act is administered and enforced by the EPA, CERCLA:	1.)establishes the Superfund to clean up uncontrolled hazardous waste sites, identifies potential responsible parties (PRPs); established liability as follows; strict liability where the landowner has no defense to the responsibility for cleanup.
Joint and several liability in which:	each of several liability in which each of several landowners is responsible for the entire cleanup
Retroactive liability where the:	present owner and previous owners are responsible
Environmental liability issues for real estate professionals include: Discovery of enviornmental hazards that include:	questioning the owner, recommending an enviornmental audit (environmental site assessment), and an enviornmental impact statement (EIS), as required for federally funded projects and by the state or locality, if required.
Disclosure of enviornmental hazards state laws cover:	disclosure of known material facts regarding property condition.
Closing (settlement and transfer) is the:	point at which ownership of a property is transferred in exchange for the selling price.
To complete the transaction, the buyer requires the following: (hint; and proof of removal of prior encumbrances,)	1.)title evidence,2.)seller's deed,3.)Affidavit of title by seller 4.)mortgage reduction certificate from lender,5.)Survey/results of required inspections,6.) leases,7.)final property inspection, 8.)closing statement showing amount/distribution of funds
To complete the transaction, the seller requires the following:	1.)payoff statement from the seller's lender noting the amount owed, 2.) evidence that the buyer that has the necessary funds,3.) closing statement showing the distribution of funds.
Depending on state law and local custom, closing may be conducted through a...	1.)licensed escrow company, in which case the parties may execute documents separately and never meet or;2.) face-to-face meeting of the parties at the escrow company, title company, lender's office, or attorney's office.
An escrow holder (escrow agent):	a disinterested third party authorized to coordinate the closing activities.
The Internal Revenue Service (IRS) may require completion and submission of the:	Form 1099-S statement of income to the seller showing the seller's Social Security number.
Form 1099-S is filed by a:	closing agent or the mortgage lender, with the brokers or the parties being ultimately liable for the filing.
The Real Estate Settlement Procedures Act (RESPA) is a federal law enacted to protect consumers in the settlement process as follows:	1.)requires accurate and timely information about the actual costs of a transaction,2.)eliminates kickbacks and other referral fees,3.)prohibits lenders from requiring excessive escrow account deposits.
RESPA does not apply to a:	transaction financed solely by a purchase-money mortgage taken back by a seller, installment contracts (contract for deed), or a buyer's assumption of a seller's existing loan.
RESPA requires that lenders and settlement agents provide a:	1.)special information booklet produced by HUD to every person from whom they receive or for whom they prepare a loan application,2.) good faith estimate of settlement costs to the borrower no later than 3 days, 3.) uniform settlement statement (HUD-1)
A closing statement (settlement) statement involves an accounting of the amounts paid by or received by the parties, as follows:	1.)in most instances, a debit one party is a credit to the other party, certain charges are prorated, divided between the buyer and the seller, in one of two ways; yearly charge divided by 360 day year or 365 day year
Debit (give):	is a charge that must be paid by the buyer or the seller at closing
Credit (receive):	is the amount entered in favor of the buyer or the seller.
Certain charges are prorated, divided between the buyer and the seller in one of two ways: 360-day year:	Yearly charge is divided by a 360-day year (banking year), or 12 months of 30 days each.
Certain charges are prorated, divided between the buyer and the seller in one of two ways: 365-day year:	Yearly charge is divided by a 365-day year (366 days in leap year) to determine the daily charge, the actual number of days in the proration period is determined, and the number of days is multiplied by the daily charge.
In most states, the charges are prorated as of the date of closing, with the (who) being responsible for the date of closing?	seller.
Investment in real estate offers advantages of:	1.)leverage-offered by use of borrowed money,2.)above-avg rate of return, 3.)greater control than ownership of securities;4.)tax benefits,5.) income (cash flow) production,6.) possibility of property appreciation (increase in value over time)
Disadvantages of investment in real estate include:	1.)lack of liquidity (ready conversation into cash),2.)high cost to acquire,3.) active management or cost of hiring a professional property manager,4.)high degree of risk, although an investor's ability to hold onto property long term tends to reduce risk
Cash flow of income property, the amount remaining after all ownership expenses have been paid, tends to make it the safest form of real estate investment, but note:	1.)rent paid by tenants is a major source of property income and depends on the property's location, physical appearance, and available amenities,2.)when rent does not cover properly expenses, negative cash flow results.
Pyramiding is a method of using the ownership of one property to drive the acquisition of more properties and usually consists of the following types:	1.)in pyramiding through selling: investor acquires a property, improves it for resale at a higher price, then use profit from sale to purchase another property,2.)pyramiding through refinance: investor uses proceeds of one property to purchase new ones.
The tax benefits of owning investment real estate depend on current tax law:	1.) capital gain,2.) adjusted cost basis,3.) depreciation (cost recovery),4.) accelerated cost recovery system (ACRS)
Capital Gain:	is the difference between the adjusted cost basis of a property and its net selling price, and it may be taxed at a more favorable rate than a taxpayer's earned income
Adjusted Cost Basis:	is the investor's acquisition cost, plus the cost of any physical improvements made to the property, and less the amount of any depreciation claimed as a tax deduction
Depreciation (cost recovery):	allows an investor to recover the cost of an income-producing asset through tax deductions over the asset's useful life
Straight-line depreciation:	divides the cost attributable to the building by the number of years of projected useful life, currently set by federal law at 27.5 years for residential real estate and 39 years for commercial real estate.
Accelerated cost recovery system (ACRS):	allows taxpayers to claim greater deductions in the early years of ownership, reducing the amount that may be deducted in each subsequent year of a property's defined useful life.
Losses from the sale of a real estate investment may be...	deductible
Tax credits (direct reductions of tax owed) are available for the renovation of...	older buildings, low-income housing projects, and historic properties.
Exchanges offer investors the opportunity to defer the payment of taxes on profit indefinitely:	1.)property may be exchanged for other like-kind property,2.) property owner is taxed only on additional capital or property received as part of the exchange (boot),3.)tax is deferred (not eliminated), with the capital gain taxed on the eventual sale.
A real estate investment trust (REIT) does not pay corporate income tax as long as:	95% of its income is distributed to its shareholders and other conditions are met. Restrictions and regulations on the formation and operation of REITs are complex
A real estate mortgage investment conduit (REMIC) has complex qualification, transfer, and liquidation rules; it is notable because:	of the asset test requirement.
The IREC is made up of seven members, each residing in a different Iowa county. Five are:	Iowa real estate licensed members (one must bea licensed salesperson) and two are non
Licensed members of the IREC are required to have at least:	five years of real estate experience.
IREC members are not allowed to hold any:	elective or appointive state or federal office simultaneously with their term
IREC appointments are for 3 years. no member is allowed to serve more than:	3 consecutive terms, or 9 years total.
The mission if the IREC is to:	protect the public through the examination, licensing , and regulation of real estate brokers, salespersons and firms
A real estate license is required for those who, with the intent of compensation, perform the services of a licensee, whether as a:	part of a transaction or as an entire transaction, or represent themselves as licensees.
The most important exception to the licensing requirement is those persons who act on their own behalf. any persons can:	list, buy, rent, or sell their own property.
Iowa recognizes licensure in other states with:	reciprocity agreements
A partnership, association, or corporation is not granted a license unless every member and/or employee who actively participates in the brokerage business holds:	a real estate license and at least one officer, partner, or member has to hold a broker's license.
Basic license requirements include:	minimum age of 18, prelicensing education and testing, and a national criminal history check through the FBI
The Commission may deny a license for several reasons under the:	Iowa Code, Section 543B.15
There is only one designated broker in an office or branch office. the other people in the office may hold what license's:	salesperson's or broker's licenses.
An applicant for the salesperson licensing exam must successfully complete a Commission-approved course in real estate principles and practices of at least 60 classroom or computer-based hours. the applicant must complete a total of:	96 hours of the required education during the 12 months prior to date of licensure application.
The broker candidate must be actively licensed as a salesperson for at least 24 months. Qualified applicants for a broker's license must complete a Commission approved course of at least:	72 classroom hours.
All licenses (including inactive licenses) are issued for:	three-year terms and expire on December 31 of the third year of licensure.
Licensees must complete 36 approved continuing education hours during their licensing term with at least 12 hours of...	continuing education taken in the classroom.
The immediate license transfer process involves how many steps?	3
With proper disclosure it is legal for a licensee to buy and/or sell property:	for his or her own benefit.
Licensees may sell or buy property for themselves with or without...	going through their broker.
Licensees who engage personal assistants have the primary...	responsibility for their supervision.
The selling of chances (lotteries) by a real estate brokerage firm is: (legal or illegal)	illegal in Iowa.
Every Iowa real estate firm or self-employed broker must:	maintain an office in the state of Iowa.
At minimum, a branch office must have at least two licenses:	a designated broker's license and a branch office license.
Blind ads are those in which brokerage firms or listing agents include:	just their own name, a post office box number, or a telephone number; blind ads are illegal in Iowa.
Iowa Code includes special disclosures for a real estate office or an individual licensee to advertise...	on the Internet.
A broker may place a For Sale for For Rent sign on a property only with the:	written permission of the owner.
Brokers that expect to receive trust funds must file a:	written Consent to Examine and Audit Trust Account form.
All funds belonging to others must be deposited into the broker's trust account no later than:	five banking days after the last signature of acceptance.
Postdated checks or anything other than cash or an immediately cashable check are not to be accepted as...	earnest money.
Unless there is a written agreement between all parties to the contrary, trust accounts in Iowa must be:	interest-bearing.
Commingling is:	mixing personal funds with those belonging to other people.
Iowa allows brokerage firms to open trust accounts using personal funds not to exceed:	$500 to cover trust account service charges
In the event of a dispute over the return or forfeiture of any earnest money or escrow deposit held by the broker, the broker is required to hold the deposit in the.. (type of account)	trust account.
Unclaimed trust funds are paid to the:	treasurer of the State of Iowa
Under certain conditions, the broker is authorized to release disputed...	earnest money without written consent.
a broker may not take commissions directly from:	the trust account.
Brokerage firms in Iowa are required to maintain a two-journal:	recordkeeping (trust account) system.
A discrimination complaint must be filed with the Iowa Civil Rights Commission within:	300 days of the alleged discriminatory incident.
Iowa law poses no burden on a real estate licensee to discover or disclose the presence of a..?	sex offender
The Iowa Competition Law is constructed to complement and comply with:	federal antitrust laws.
Tying arrangements are:	illegal actions under which agreements to purchase one property are allegedly "tied" to the use or purchase of another service or product.
Depending on the situation, the licensee may be representing a:	buyer, a seller, a landlord, a tenant, a property owner, or more than one party in a transaction.
Agency duties are governed by:	common law and statutory law
In Iowa, agents' duties to their clients include:	care, loyalty, obedience, accounting and disclosure
A licensee may perform ministerial acts that are not considered...	client-level duties
A broker works for a ____ and with a ____.	client, customer
Agency relationships may be...	single, dual, special, general, and designed.
Dual agency must be created with the...	written consent of the client
Brokerage agreements may take several...	forms.
All buyer-brokerage agreements must be in writing and contain statements disclosing...	the brokerage policy on cooperating with and compensating other brokerages.
Iowa law requires brokerage agreements to include four specific requirements known as:	minimum services
The broker enters into employment agreements with the licensees who work for the broker permitting the licensees to act as...	agents for the broker.
Procuring cause means that:	a licensee started or caused a chain of events that resulted in the sale of a listed property.
Any commission or fee in any brokerage agreement is fully negotiable among:	the parties to that brokerage agreement
The broker is required to deposit all funds received on behalf of the owner into:	the broker's trust fund
All listing contracts in Iowa must be written and properly identify the property and the terms and conditions under which the...	property is to be sold
A broker protection clause can be included in either the...	listing or the buyer brokerage agreement and extends beyond the expiration of the agreement
It is illegal to place a sign on any property offering it for sale, rent, or lease without:	the owner's consent.
Referral fees are legal if paid...	between brokers
The taking of a net listing is considered unprofessional conduct and constitutes a....	violation of the Iowa Code.
Agents are not allowed to solicit listings with another brokerage that have not:	been terminated
Listing and brokerage agreements may not be assigned, sold, or otherwise transferred to another broker without...	the express written consent of all parties to the original agreement
In Iowa, licensees are required to deliver legible copies of the original documents connected with a...	real estate transaction to each party.
In Iowa, material adverse facts are conditions generally recognized as being of such significance that they would affect either...	party's decision to enter into a contract
Fraudulent acts include:	fraudulent advertising, making false statements about a property's condition and intentionally concealing known facts
Negligence occurs when licensees should have known that incorrect statements were being relied on as a...	material fact
The age of legal competence in Iowa to enter into a contract is:	18
Only attorneys are permitted to:	prepare contracts.
In addition to the purchase agreement, Iowa requires the use of the following forms:	Agency Disclosure, Groundwater Hazard Statement, Declaration of Value, and Residential Property Seller Disclosure Statement
The Iowa Real Estate Commission (IREC) requires written disclosures including the:	Groundwater Hazard Statement, the Residential Property Seller Disclosure Statement, and radon and lead-based paint disclosures
If the seller or the seller's agent does not deliver the Residential Property Seller Disclosure Statement in a timely manner, a buy may...	withdraw an offer or revoke its acceptance within three days of its being personal delivered (five days if delivered by mail)
The Lead-Based Paint Poisoning Prevention Act and the Iowa Residential Lead-Based Paint Disclosure Program require notification of possible...	lead-based paint exposure in all pre-1978 residential and apartment dwellings.
IREC rules state that any offers received by a listing agent must be promptly presented to the seller for consideration or...	the listing broker can face disciplinary action.
The seller has the right to see offers that arrive even after the seller has...	accepted an offer
Dual contracts are illegal in Iowa.
At closing, the broker is required to keep copies of all executed documents for ____ years.	five years.
Iowa is a lien-theory state.
Iowa is an abstract state.
Iowa charges property owners a transfer tax when they...	transfer legal title to their properties.
The state agency that controls rights to water in Iowa is the:	Iowa Department of Natural Resources (DNR)
Abandoned wells are required by Iowa law to be filled within ___ days.	90 days.
There is no duty for the seller to disclose ____ property.	stigmatized
The IREC has jurisdiction over actions by a licensee that can harm the...	consumer in a real estate transaction.
The IREC is allowed to investigate the actions of any licensee on its own or on the receipt of a...	verified written complaint.
Complaints are referred to the two-to-five member investigating committee or may be declined if they lack ___.	merit.
If the investigating committee determines that a violation warranting disciplinary action has occurred, then a disciplinary case is...	opened against the respondent.
A written notice of a hearing, together with a statement of charges, is sent by certified mail to the licensee. Testimony may be taken before the hearing by ___.	deposition.
If the respondent does not appear, the hearing will be held without...	the licensee and the licensee will be bound by the decision.
As the result of a violation, the IREC may revoke or suspend a license. Other disciplinary actions include:	probation, education/training, or fines.
The revocation of the broker's (brokerage) license automatically places an:	inactive status all licensees employed by the broker.
Unlawful acts or violations by licensees are not cause for the revocation of their designated broker's license unless the...	designated broker had guilty knowledge of the unlawful act.
A broker with a suspended or revoked license must cancel...	all listings and property management agreements.
The IREC requires receipt of proof of errors and omissions insurance from new licensees before the license is issued and before reinstating an expired license if the license has been inactive for more than ___.	20 days.
The IREC contracts with an insurance provider for a group policy that is made available to all licensees. Licensees have the option to obtain independent coverage as long as it meets the:	minimum standards adopted by the IREC.
Although licensing is not required for appraising....	most are licensed in Iowa.
There is no requirement for licensing _____ in Iowa.	home inspectors
Iowa recognizes tenancy in common, joint tenancy, and ___.	life estates.
Iowa does not recognize tenancy by the _____.	entireties.
Dower and curtesy are recognized in Iowa.	Dower (husband), curtesy (wife)
In Iowa, married couples may be able to designate...	separate and community property.
In Iowa, real estate companies may be... (types of corps)	sole proprietorships, partnerships, limited liability (LLC) operations, corporations, and subchapter S corporation.
The Iowa Timeshare Act covers rules for...	time-shares.
Any person engaged in the business of selling timeshare estates for a fee is required to...	obtain a real estate license.
Under certain circumstances, a timeshare purchaser may rescind...	their contract.
Cooperatives and condominiums are example of multiple owners of the same...	property.
In cooperative housing, the purchaser becomes an owner-tenant by...	purchasing shares in the cooperative.
If association dues are unpaid, the unit can be...	foreclosed.
Landlord-tenant relations is covered in Iowa law. Chapter 562A of the Iowa Code is titled:	"Uniform Residential Landlord and Tenant Law."
The statute of frauds requires that all lease agreements for more than one year be...	in writing.
Iowa law prohibits a landlord from collecting security deposits in excess of the value of...	two months rent.
Rental deposits are to be placed in a trust account and are not to be commingled with the...	landlord's personal funds.
To evict a tenant, legal notice has to be given, and a judge decides whether...	the eviction is appropriate.
Property tax is sometimes called an ad valorem tax, meaning based on the...	value of the property.
The assessor uses the sales comparison approach when...	computing market value.
Taxpayers are allowed to protest their proposed assessment between:	April 16 and May 5
To prevent accelerated assessments from burdening property owners, a growth limit called a rollback is placed on...	assessments.
Iowa's fiscal year begins on:	July 1 of one calendar year and ends on June 30th of the next calendar year.
Taxpayers are allowed an annual homestead tax deduction from the....	taxable value of their residence.
The Iowa military exemption reduces the taxable value of property for....	military veterans.
The homestead protects the homeowner from a forced sale by any...	unsecured lienholder
Taxpayers are allowed to pay the tax due in two installments, the first-half installment is due before ____ and second before ___.	frist= September 30, second=March 31
The delinquency penalty is ____ per month or ___ annually.	1.5% per month, 18% annually
If taxes are delinquent after one year, the property may be sold at a...	tax sale.
The delinquent taxpayer has up to one year (the statutory right of redemption period in Iowa) to repurchase the property from the...	tax sale purchaser
Mechanics' liens must be filed within ___ days of completion of the work	90 days
The legally evidenced time frame for adverse possession in Iowa is ___ years.	ten years.
Iowa Code grants cities the authority to regulate and restrict development in order to promote the:	health, safety, morals, and general welfare of the community.
Subdivision plats have to be adopted by the municipality before they...	can be recorded.

Created by: kkustes

Popular Real Estate sets

Real Estate Terminology

all glossary terms from real estate textbook

Math formulas and practice questions

California Real Estate

Real Estate Fundamentals

Tennessee Real Estate Exam Prep

NC Real Estate License

Real Estate Math

"Know" box contains:
Time elapsed:
Retries: