Real Law Flashcards

Law
Terms Definitions
Yes.
Preexisting or nonconforming use
If substantial completion is not achieved, what are the consequences? 
 
Accept as adequate replacement
Accept as substantial performance but reserve the right to deductions
Take occupancy since it is on their land, but refuse to pay.... judgments vary but usually side with builder
Demolish and refuse to pay...most states side with buyer
 
subpurchase
signing an installment contract to sell his or her interest
Membership in the HOA is automatic.
T/F
True
Single Agent Disclosure
1.  Dealing honestly and fairly;
2.  Loyalty;
3.  Confidentiality;
4.  Obedience;
5.  Full disclosure;
6.  Accounting for all funds;
7.  Skill, care, and diligence in the transaction;
8.  Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; and
9.  Disclosing all known facts that materially affect the value of residential real property and are not readily observable.
Opinion
A decision with its accompanying reasons and legal principals
A purchaser usually takes possession of the property at the time the contract is signed.
False
recission
the seller may terminate the contract if the buyer fails to make its payments, but should restore the status quo
UCIOA x
Uniform Common Interest Ownership Act: a uniform law that applies to all communities where a unit or homeowner pays a share of the real estate taxes, insurance premiums, maintenance, or improvement expenses related to the development.
5 ways to create a life estate

Will
Deed
Dower
Curtesy
Homestead
The articles of corporation would be like a ________, the bylaws would be like the ________, and the rules would be like _________.


The articles of corporation would be like a constitution, the bylaws would be like the statutes, and the rules would be like administrative policies.
A title examination can protect a purchaser against forged signatures on deeds.
False
A Title insurance commitment is a contract to issue insurance once the transaction has been closed.
True
Property taxes for the current year are prorated under a contract.
True
Once a valid escrow agreement has been executed, either side can revoke it.
T/F
False
How would you protect against the problems customary with a participating mortgage?


regularly documented
fixed maturity date
Express Grant
because it conveys an interest in land, should contain all the formal requisites of a deed

writing


describe easement


land subject


chacter(ingress or egress etc)


signed, sealed, witnessed, acknowledged, delivered, and recorded

 
Dual Agency
Dual agency occurs when the same brokerage represents both the seller and the buyer under written agreements. Individual state laws vary and interpret dual agency rather differently.
There is no time frame to prove negilgence.
T/F
True
Fructus Industriales
annual crops produced by labor, such as wheat, corn, and onions are considered personal property
A title examination is the last thing to be ordered for a closing.
False
Possession of the deed by the grantor is presumption of delivery.
False
Owners Policy
usually issued to the landlord at time of purchase....one time payment
What are the stages in transfer of control of common areas? X
 
Land acquisition and assembly
Rezoning and plat approval
Preparation, execution, and recording of declarationUp to this point the declaration lacks efficacy because the developer owns all the land

Developer deeds out unitsAt this stage the HOA is still in control of the developer, but his interest will decrease as sales proceed

 
Dragnet Clause
allows a lender to buy up other mortgages that a borrower may have
Can the servient owner place pillars or speed bumps on the easement?
Speedbumps-Yes for safety
Pillars-No...cannot diminish right of use
Reservation
the creation by the deed of a new right in favor of the grantor, usually an easement or life estate
The law of the state in which the land to be conveyed is located controls the formal requirements of a deed.
True
Mortgages
When a landowner owns lots 1 and 2 and mortgages lot 1, it may, at the mortgage's insistance, include in the mortgage a grant of easement over part of lot 2
Special Warranty Deed/Grant Deed
the grantor covenants only against the lawful claims of all persons claiming by, through, or under the grantor...grantor liable if the grantee is disturbed by some claim arising through an act of the grantor, but not the grantors predecessors of title
Crooked-Hole Drilling
A and B are adjacent...B sinks an oil well angled under property A
Neither the seller nor the buyer can sell or mortgage their interest.
T/F
False...unless it is prohibited
What happens when a Guarantor goes into bankruptcy? X
Payments made on the guaranteed debt may be recovered by the trustee
In Florida, what words can be used to still read the covenants of title in full
grant, bargain, sell
To be Livable...what must a dwelling have?
 
Working plumbing
Hot water and heating
Reasonable security
Working and locking doors and windows
Free of pests
 
Identify and discuss the three safeguards that ensure good title.
a. General warranty deed.b. Title Examination.c. Title insurance.
In a land contact the buyer should seek...

Title Search
Record K
Signed deed in escrow
Right to assign
No property penalty
Provision for seller to sign deed
If James, David, Mike, and Sam have Joint Tenancy: and James sells to Nick..what happens
Nick is Tenant in Common
What is a complex easement
whenever two or more parcels of land, whehter stacked or adjacent, are used in common, an easement agreement should be entereted into so their mutually dependent rights are defined and memorialized
Briefly describe the six steps of a real estate closing.
a) File creation.b) Gather information.c) Document preparation.d) Closing.e) Disbursement, recording, and transmittal of the closing package.f) Final close-out.
What are the basic requirements of a valid deed?
a) Written instrument.b) Competent grantor.c) Identity of grantee.d) Words of conveyance.e) Description of land.f) Consideration.g) Grantor signature.h) Witnesses.i) Delivery of deed to grantee.
What did Nolan v California Coastal Committee establish?
if ther is a sufficient connection between the development requirement and the onjective fostered by the dvelopment approval body, the development requirement will be sustained.
Does the grantee need to be named?
Not if the grantee is sufficiently described
The four steps to prove negligience

There must be a legal duty
Breach of the legal duty
Someone was injured because of the breach
The breach causes the damage
What are the standard title exceptions found on a Schedule B to an owner's policy?
a) Rights or claims of parties in possession not shown by public records.b) Encroachments, overlaps, boundary line disputes, and any other matters that would be disclosed by an accurate survey and inspection of the premises.c) Easements or claim of easements not shown by public records.d) Any lien or right to lien for services, labor, or materials furnished.e) Taxes or special assessments not shown as existing liens by the public records.
Why is careful attention to detail required in the preparation of a real estate contract?
It must reflect the negotiation of the buyer and seller and capture their agreement in writing. The contract dictates the rights and responsibilities of the parties and establishes a blueprint for the closing of the purchase and sale.
What is the theory of subrogation? x
The legal doctrine under which one who pays money on a senior lien is under certain circumstances entitled to claim the benefit of the priority enjoyed by the senior lien.
Can the width of an easement grow over time?
No...even if todays larger trucks cannot use an ingress and egress easement, it cannot be widened
If someone is hurt while trespassing on your property, are you liable?
If you knew of a dangerous condition and did not warn or divert
What are the necessary elements in order to have a mutual agreement?
The parties must agree on the same thing, the same terms, and at the same time.
What are the three exeptions of FIRPTA(Foreign Investors in Real Property Act)
If the home is $300,000 or less and the buyer will live in the home for half the year
If the seller says he is not foreign but actually is
Withholding Certificate
What are the requirements for a deed to be valid?
Landowner must sign and dliver to his attorney the power of attorney
Must name the landowner as the grantor
Name signed must be that of landowner
Grantor must be alive on date of delivery
Make sure the agency is still effective
What is a prepayment fee or premium, and how is it different from a late charge?
If a loan is prepaid before maturity the lender may require a fee or premium.Late charges are a penalty assessed for a late monthly installment of a loan.
A debt exists at the time the obligation is made if a lender must convey a future advance.
T/F
True- if it is optional, this is not the case...funds must be conveyed or required to be conveyed
Why is a review of Schedule B to a title policy so important?
Schedule B contains a list of title matters that are not insured against in the title policy. The title insurance company provides no insurance for matters shown on Schedule B. It is important to review Schedule B to make sure that a client is willing to purchase or take a loan on the property with the Schedule B exceptions.
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