FI 331 TEST 1 REVIEW

Intro to RE
Deeds Agency/brokerage
sales contract
property taxes
NAR code of ethics
26 multiple choice
18 in calculations
choose 3 out of 4 short answers (lists etc)
intro
difference/definition between real estate and real property
difference/definition between surface rights mineral rights and air
rights: air rights you use air space over your building, surface means u
can do what u want ie build on it mineral rights you can sell coal oil etc
under it
literoal vs riparian rights: riparian is rivers/streams, litoral lakes/seas
-most complete form of all those rights (fee simple)
-lease hold ownership-tenenat rights you own the lease
-tic: tenants in common (leave property to heirs
-joint tenancy:right of survivorship ( joint survivorship, survivor of two
people in a marriage etc)
-community property: heirs get half survivors get half
-characteristics that make real estate not an efficient market: unigue
(heterogeneous products), illiquid, immobile, expensive, negotiation
land use control
-easement : right to use/enjoy someone elses property
-easement in gross: no dominant piece of estate everyone enjoys same
power line etc
-easement appurtenant: dominant estate and serviant estate
-adverse possession: taking over someone elses property
-5 characteristics: hostile situation
-actual (using/improving persons property)
-open and notorious
-continuos
-exclusive

-restrictive covenants: subdivision restricitons placed by developer to

keep property up to certain standard
-zoning: regulations by the county, 3 main types:
-land use
-height regulation
-area
-emininate domain: government can take your property
-4 requirements of emanate domain:
-necessary to objective
-public use
-must be payed just compensation
-court gives permission to condemn
-Deeds
-deed: piece of paper that gives you title/ownership
-general warranty deed: gives you warranty forever for all owners
-limited warranty deed: gives one warranty for one owner for specific
time
-quit claim deed: no warranty ie changing name on deed after divorce
-sherrifs deed: sell it after a foreclosure
tax deed: buy property after tax foreclosure
-encumberance on deed: anything that limits your title such as
easements encroachments etc
-legal description: exact location of property
-lots and blocks are typical for subdivision legal description
-meets and bounds for 13 colonies
-in Kansas governmental survey
-platt used to give legal description and shows property boundaries
-surveyor makes platt
:acre: 43560 square feet
-title insurance: insurance for your title
-agency and brokerage
-agency:
-brokerage:
-can an agent be a broker: yes work for two years get liscense
-listing: piece of property for sale

-4 types of listings:
-exclusive right to sell: you list it youre guaranteed commission
regardless of who sells property
-exclusive agency: if homeowner sells the house they dont have to pay
commsion
-open listing:anyone company can try and sell it, the closer gets the
commission
-net listing: realtors commission is based on how much sales price is
above asking amount
-comision: what your paid when you sell a listing (typically 6-7 percent)
-commision split math problem
-mls: multiple listing service, what all realtors use
sales contracts
-what cancels a contract:
-duress: using force/power
-mistake of fact: buyer and seller both assume a fact is right and ends
up being wrong
-fraud: lying
-menace: using physical violence
-buyer ultimatel responsible for property
-caveat empatore: buyer beware
- consideration: money paid for the home
-ernest money: money put up to hold contract while financing is
obtained
-contingency clauses: event must happen for contract to close,
examples:
-suitable financing
-subject to home inspection and repair negotiation
-subject to previous home selling
-sibject to an appraisal meeting/exceeding sale price
-counter offer: getting a contract and sending it back because you
disagree with it
-minors, mentally insane, under the influence can void contract
-lease option contract: rent to own
-exchange contracts: 1031 exchange, trade real estate for real estate
-land sales contract: dont get title until you pay in full for property
-Property taxes
-tax collector collects taxes
-tax assessor values property

-market value x assessment rate= assessed value

-assesed value-exemptions= taxable value
- taxable value x millage rate= property taxes
-homestead exemption: exemption for your personal home
-conservation of use: exemption for not developing on property