Rights and Interests in Land
Fin 371 Chapter 3
Fin 371 Chapter 3
The right of government to tax private property
Fin 371 Chapter 3
Govt. Powers contd
The right of
During the life of the Grantor
@or after death
Intestate ( involuntary?)
legal document that transfers owners
Nature and Description of Real
Land & Improvements
Real Estate (real property) Land+
improvements +rights to use them
Land: Air, Surface &subsurface Rights
Improvements: Anything affixed to the land
with the intent of perma
Chapter 2Nature and Description of Real Estate
1. Which of the following are considered to be real estate?
a. Trade Fixtures
c. Mulberry bush
d. Garden hose
Any perennial shrubs are considered to be real property.
Chapter 19Licensing Laws and Professional Affiliation
1. The first state to legislate licensing requirements for real estate agents was
b. Rhode Island.
d. New York.
The first state to legislate licensing re
Chapter 13Sources of Financing
1. A primary mortgage lender is one who
a. lends to FNMA, FHLMC and GNMA.
b. pools, insures, guarantees and sells first mortgage loans.
c. lends to borrowers, services the loans and perhaps sells the instrume
Chapter 3Rights and Interests in Land
1. Property taxes are characteristic of the
a. allodial system of land ownership.
b. feudal system of land ownership.
c. Napoleonic system of land ownership.
d. English common system of land ownership.
Chapter 26Real Estate and the Economy
1. Industries which produce goods and services for export are referred to by all of the following terms
a. base industries.
b. export industries.
c. primary industries.
d. backbone industries.
Chapter 18Real Estate Appraisal
1. The most commonly used methods of real estate appraisal are
a. market approach, income, and cost.
b. income, reproduction, and cost.
c. residual, cost, and market data.
d. comparison, income, and capitali
Chapter 4Forms of Ownership
1. Property owned in severalty
a. is owned concurrently by at least two persons.
b. cannot be sold without the consent of several owners.
c. is an estate of inheritance.
d. may be willed.
The individual o
Chapter 17Real Estate Leases
1. Upon termination of a rental contract,
a. ownership reverts to the lessor.
b. possession is returned to the lessor.
c. possession is returned to the lessee.
d. ownership reverts to the lessee.
Chapter 16Title Closing and Escrow
1. A seller received $81,000 at the close of escrow after paying $1,750 in closing costs and a 6%
brokerage fee. What was the sales price of the house?
Chapter 14Types of Financing
1. The interest rate of a loan from a local savings and loan may be increased or decreased during the life
of the loan. This is an example of
a. a variable interest rate.
b. escalated interest.
c. graduated int
Chapter 22Fair Housing, ADA, Equal Credit, and Community Reinvestment
1. Jones v. Mayer
a. affirmed the 1968 Fair Housing Law.
b. affirmed the Civil Rights Act of 1866.
c. allowed discrimination based on race.
d. was the first major fair h
Chapter 6Recordation, Abstracts, and Title Insurance
1. An instrument effecting the title to a parcel of real estate gives constructive notice to the world when it
is recorded with the
a. county recorder.
b. city clerk.
c. real estate comm
Chapter 8Real Estate Sales Contracts
1. A real estate purchase agreement contract used by a multiple listing member may be all of the
a. receipt for earnest money.
b. contract up to the date of closing.
c. commission agree
Chapter 11Lending Practices
1. The type of loan whereby the borrower makes interest only payments during the life of the loan with
the entire principal due for the final payment is called
a. a discounted loan.
b. an amortized loan.
c. a te
Chapter 20The Principal-Broker Relationship: Employment
1. In whose name does a salesperson take a listing?
a. His brokers
b. His own name
c. The sellers
d. The Real Estate Commission
A salesperson takes a listing in the name of his
Chapter 12The Loan and the Consumer
1. The Truth in Lending Act covers credit extended for a
a. business or commercial transaction.
b. large apartment building.
c. mobile home which is used as a residence.
d. loan secured by a car valued a
Chapter 5Transferring Title
1. A deed is
a. the only way to transfer title to land.
b. the most commonly used means of land title conveyance.
c. a recorded instrument.
d. valid for a predetermined period of time.
A deed is the most
Chapter 21The Principal-Broker Relationship: Agency
1. When creating an agency relationship, agency authority
a. expects that to become an agent, one must agree to perform and actually be paid for the
b. enables the principal
Real Estate Principles
Rs Nappinnai (Nappi)
Gerdin # 3233
Office Hours: W: 10:00 AM to 11:00AM
and by appointment
PREREQUISITE: Economics 101
PRESCRIBED TEXT: Real Estate Principles by Charl
and Title Insurance
Fin 371 Chapter 06
Need for Public Records
ConstructiveNotice/Legalnotice: All can see
Interested Parties are responsible
Shows who has current deed
Need for contracts
Assures performance in future
Promise, commitment or undertaking that
will or wont (forbearance) be done.
Contractsbydeed: created by use o
Sole ownership / Estate in Severalty
Individuals- single or married
Advantages: Flexibility, Control, Privacy
Disadvantages: Responsibility,Raising Capital, Marketability of
Real Estate Defined
Land and everything natural/ manmade attached to it
and the rights to use them
Provides food, clothing and shelter
Nations with productive land enjoy higher standards of living
Values are determ