Podcast
Questions and Answers
What is likely to happen to a claim of ownership if possession was secretive?
What is likely to happen to a claim of ownership if possession was secretive?
declined because possession was secretive.
How is value related to price in the market system?
How is value related to price in the market system?
Value is based on the interaction of underlying economic factors; price is a quantification of value in a transaction.
What is a driveway that extends one foot onto a neighbor's property an example of?
What is a driveway that extends one foot onto a neighbor's property an example of?
an encroachment.
How is the order of priority among junior liens generally established?
How is the order of priority among junior liens generally established?
What do state real estate license laws set in addition to minimal levels of competence?
What do state real estate license laws set in addition to minimal levels of competence?
What is a key feature of the Torrens System?
What is a key feature of the Torrens System?
What is an important distinction between a contract for deed and a contract for sale?
What is an important distinction between a contract for deed and a contract for sale?
What is an illustration of a risk avoidance procedure that a property manager might take?
What is an illustration of a risk avoidance procedure that a property manager might take?
In accordance with the Statute of Frauds, what must a five-year lease have to be enforceable?
In accordance with the Statute of Frauds, what must a five-year lease have to be enforceable?
What is an illustration of the legal concept of elective share?
What is an illustration of the legal concept of elective share?
What can a tenant do if a landlord raises the price of a condominium after an option to buy has been exercised?
What can a tenant do if a landlord raises the price of a condominium after an option to buy has been exercised?
What is an important legal characteristic of an option-to-buy agreement?
What is an important legal characteristic of an option-to-buy agreement?
What does proration refer to in the context of a closing?
What does proration refer to in the context of a closing?
What is the term for a home in a neighborhood where homeowners have failed to maintain their properties?
What is the term for a home in a neighborhood where homeowners have failed to maintain their properties?
What happens to an exclusive listing if a property is taken by eminent domain?
What happens to an exclusive listing if a property is taken by eminent domain?
What is the likely effect on real estate prices if demand is increasing but new construction is restricted?
What is the likely effect on real estate prices if demand is increasing but new construction is restricted?
What must a property owner generally do to qualify for a homestead exemption?
What must a property owner generally do to qualify for a homestead exemption?
What is the term for the area running north and south between meridians?
What is the term for the area running north and south between meridians?
What is true of a cooperative regarding owner liabilities?
What is true of a cooperative regarding owner liabilities?
What is the definition of cash flow in real estate?
What is the definition of cash flow in real estate?
What is the term for the activity when an agent informs families about minority families moving into a neighborhood?
What is the term for the activity when an agent informs families about minority families moving into a neighborhood?
What does an appraiser do to complete the sales comparison approach?
What does an appraiser do to complete the sales comparison approach?
When must owner agents disclose their agency relationship?
When must owner agents disclose their agency relationship?
What is the primary distinction between real estate and real property?
What is the primary distinction between real estate and real property?
Study Notes
Legal Concepts in Real Estate
- A hermit's ownership claim on a 200-acre property after 20 years may be denied due to secretive possession.
- An encroachment occurs when a property feature, like a driveway, crosses onto a neighboring property.
- Contracts for deed allow the seller to retain legal title until the buyer fulfills all terms, differentiating from contracts for sale.
Real Estate Transactions
- Value in the market system arises from economic factors, while price quantifies that value in transactions.
- Estate and property management strategies include risk avoidance, such as closing unsafe areas.
- Proration in closing deals refers to dividing amounts owed or received based on the timeframe of responsibility.
Real Estate Law and Procedures
- Under the Statute of Frauds, leases longer than one year must be written to be enforceable; this includes five-year leases.
- An option-to-buy agreement binds the optionor to complete the sale if the optionee chooses to exercise their option.
- A widow excluded from a will may claim an elective share of the couple's principal residence.
Market Trends and Economic Forces
- Rising demand in real estate, especially during a construction moratorium, typically leads to increasing property prices.
- Incurable economic obsolescence refers to properties in neighborhoods suffering from lack of maintenance by owners.
Agency and Disclosures
- Agents with exclusive listings can have their agreements terminated if the property is taken by eminent domain.
- Owner agents must disclose their agency relationships to potential buyers or tenants upon first substantial contact.
Financial Aspects and Cooperative Housing
- Cash flow is calculated as net operating income minus debt obligations and reserves.
- In a cooperative, members may be responsible for unpaid operating expenses of other residents.
- Tax treatment for principal residences may permit exclusion from capital gains tax under certain conditions.
Property Appraisal
- Appraisers finalize the sales comparison approach by weighing comparable property transactions to establish value.
Ethical Considerations
- The practice of informing residents about demographic changes for potential adverse property value impacts is known as blockbusting.
Geographic Terms
- Geographic areas defined by north-south lines between meridians are referred to as ranges.
Homestead Exemptions
- To qualify for homestead exemptions, property owners must reside on the property they claim.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge with these flashcards focused on key concepts related to property ownership and market values. Each card presents a scenario or question to challenge your understanding of economic principles and legal claims. Ideal for those preparing for the NATIONAL Final Exam.
