Real Estate

Appurtenance

A legal term denoting the attachment of a right or property to a more worthy principal.

Yes

Is a furnace or air conditioning unit an example of Appurtenance?

Prescription

The method of acquiring another's real estate property by continued and regular use without permission of the property owner for a period of years

Improvement

Developments of land of structures on property that do more than merely replace, repair or restore the original condition

Real Estate

Land plus anything permanently fixed to it, including buildings, sheds, and other items attached to the structure.

Air rights

Type of development right in real estate, referring to the empty space above a property.

Mineral rights

Rights to all or specific minerals on or under the land.

Water rights

Pertain to the rights to use adjacent bodies of water.

Littoral rights

Refers to rights concerning properties that abut an ocean, sea, or lake, rather than a river or stream.

Riparian Rights

If you purchase land or property on a stream, then you have rights to the stream known as?

Sea-Lake-Ocean-Pond

SLOP

Navigable waters

Waters that provide a channel for commerce and transportation of people and goods.

Accretion

An increase in land that results from the deposit of soil by a river or ocean.

Accession

Acquiring property that involves the addition of value to property through labor or the addition of new materials

Alluvion

The gradual increase of the earth on the shore of an ocean or stream bank resulting from the soil deposited by the action of water.

Reliction

Gradual change of water line on real property which gives the owner more dry land.

Avulsion

A sudden lost or additional to land, which results from the action of water

Erosion

Process of eroding of being eroded by wind, water, other natural agents.

Department of Environmental Protection

DEP

Real property

Any property that is attached directly to land, as well as the land itself

Personal Property

Consists of every kind of property that is not real property and would include most man-made property, money, and movable goods or chattels.

Tangible Property

Anything which can be touched, and includes both real property and personal property

Security agreement

Contract that governs the relationship between the parties to a kind of financial transaction known as a secured transaction.

Chattel mortage

Loan arrangement in which an item of movable personal property is used as security for the loan. A chattel mortgage is a loan that is secured by chattel rather than by real property.

No

Is a "barn" considered chattel?

The seller's signature

A valid bill of sale must contain...?

Emblements

Annual crops cultivated by a tenant which are treated as the tenant's property rather than the landowner's.

Bundle of rights

Set of legal rights afforded to the real estate title holder, can include the right of possession, control, exclusion, enjoyment, and deposition.

Police power

The capacity of the states to regulate behavior and enforce order within their territory for the betterment of the health, safety, morals, and general welfare of their inhabitants.

Eminent Domain

The right of a government or its agent to expropriate private property for public use, with payment of compensation.

Condemnation

The term used to describe the formal act of the exercise of the power of eminent domain to transfer title to the property from its private owner to the government.

Property Tax

A tax assessed on real estate by the local government. The tax is usually based on the value of the property.

Escheat

Common law doctrine which transfers the property of a person who dies without heirs to the crown or state.

Dead Restrictions

A private limitation in a deed, placed by a grantor limiting the use of land by future owners

True

Deed restrictions could only be established by the "Grantor". (True/False)

Easements

A right, privilege or interest which one party has in the land of another.

Regulation Z

requires debt lenders to disclose all the specifics of a given loan. This was done to promote a level of credit protection for the underlying consumer.

Lease

Contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset

Mortgage

A debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments.

Voluntary Lien

A type of lien that exists because of an action taken by a debtor. This is the opposite of an involuntary lien that occurs by law.

When a person dies testate

When is a person's real property transferred by devise?

$5,500

How much cash MUST a buyer furnish in addition to a $2,500 deposit if the lending institution grants a 90% loan on an $80,000 property?

Place it in his escrow account immediately

John is a broker and he accepts a $4,000 depost. What should he do with it?

ARM (Adjustable Rate Mortage)

The type of mortgage loan that has an interest rate that may increase or decrease at different times in accordance to an economic indicator

Incorporeal hereditament

An intangible right, which is not visible but is derived from real or Personal Property.

Convey

The act of transferring an ownership interest in real property from one party to another.

Freehold estate

Exclusive right to enjoy the possession and use of a parcel of land or other asset for an indefinite period.

Fee simple

Highest form of legal estate in freehold land denoting complete ownership.

Allenation

A clause in the mortgage that allows the lender to demands loan repayment if a borrower sells the property.

A life estate

Which interests in property is held by a person who is granted a lifetime use of a property that will be transferred to a third party upon the death of the lifetime user?

General warranty deed

What type deed provides the most protection for the grantee?

Life tenant

The owner of a life estate is called.

Dower

A common law that entitles a widow to a portion of her husband's estate in absence of a will.

Curtesy

Common law right of a husband to the estate and property of his deceased wife.

Remainderman or reversioner

The person who receives the life estate after the passing of the life tenant is called the...

Future estate

Future interest in real property.

A leasehold estate

An estate which is not full ownership and is sometimes referred to as non-freehold is called...

Attorney General's Memorandum

A summary of the New Jersey Law Against Discrimination.

Backup Offer

An additional offer on a home for sale where the sellers already accepted an offer.

8.00%

A home sold for $400,000. The Broker received $32,000. What rate of Commission did this broker charge?

Principal associate broker

Officer, owner, member, or manager of the company.

Non-principal broker

Neither an officer, member, owner, or manager of the company.

Commingling

The illegal act of a broker combining clients' funds with personal funds.

Cul-de-sac

A passageway or street with only one outlet

Dual agent

An agent who represents both buyer and seller in the same transaction.

No

Can a broker disburse trust funds with written consent of the buyer only to pay for a termite inspection?

Yes

Must a licensee disclose their license status when advertising their own property?

Immediately

When does a broker need to sign a release form requested by the salesperson?

Blind advertising

A type of advertisement that does not include the identity of the individual who placed the ad.

Yes

Can a broker deposit security deposits and earnset money into an interest bearing trust account?

False

A salesperson can be licensed under more than one broker? (True/False)

Designated agency

is a concept designed to enable the buyer who is represented by a buyer agent, and the seller who is represented by a seller agent in the same brokerage?

Yes

On a closing statement, would a transfer tax be a debit to the seller.

No

Can a unlicensed assistant make a listing presentation?

Yes

Can a salesperson accept compensation from their sponsoring broker?

Remained with 123 Realty

When salesperson Henry Forbes left 123 Realty and went to work with ABC REALTORS, What happened to his listings?

Open listing

A listing whereby an owner lists the property for sale with a number of brokers.

No commission

John Banks gave Star Realty an exclusive agency listing on her property. If he sells the property himself without involving Star Realty, he will owe Star Realty how much?

Fiduciary

The relationship between an agent and his or her client.

An historic property

What kind of single-family residences would get the MOST accurate appraisal by applying the reproduction cost approach to value?

$250

A business property is valued at $30,000. To earn 10% on the total investment, the property should return a monthly income of...

FHA (Federal Housing Administration)

Insures loans and protect lenders against financial loss.

Full amortized loan

A loan to be completely repaid, principal and interest, by a series of regular equal installment payments.

Real Estate Investment Trust

What is "REIT"?

Department of Housing and Urban Development

What is "HUD"?

Assumable Mortgage

Financing arrangement in which the outstanding mortgage and its terms can be transferred from the current owner to a buyer.

Bequest

The act of giving personal property through the provisions of a will or estate plan.

Bilateral contract

Reciprocal arrangement between two parties where each promises to perform an act in exchange for the other party's act.

Co-ownership

A concept in property law which describes the various ways in which property is owned by more than one person at a time. If more than one person own the same property, they are referred to as co-owners, co-tenants or joint tenants.

Tenancy in Common

When two or more persons are owners of undivided interests in the title to real property.

Cloud on title

Any document, claim, unreleased lien or encumbrance that might invalidate or impair the title to real property or make the title doubtful.

Blockbusting

Panic selling based on fear of the entry of persons of another race, color, religion, or ancestry into the area.

Breach of contract

Failure to comply with a material term or provision of a contract

Constructive notice

A recorded judgement provides...

Real property

Is natural growing vegetation normally considered real or personal property?

No, you can skip that portion of the application

When applying for a real estate loan, by law are you required to disclose your race and marital status?

Correlate the adjusted sales price with comparables

Once the appraiser finish collecting all the data on a property, what is the next step in the appraisal process?

Residential property

Gross leases are most commonly used with...

Price Fixing

Agreement between competing sellers. Illegal