Test 3 Study Guide Statute of frauds real estate must be in writing This was passed in London in 1677 Contract for sale must be in writing because statute of frauds Freehold real estate Your parents home can go to you when they pass It has no duration They hold it freely The best type is fee simple Non freehold We do not hold our leas freely Governments role in property rights laws building costs etc The police power of the state Right of government to zoning and zoning Eminent domain the government can take your property for a public use You are only entitled to compensation Escheat right of government to claim ownership for the property if the owner dies and they have no heirs If someone does not pay their taxes you can bid to pay their taxes If you get 2 tax certificates in 24 months then you can get their deed How many feet in an acre how many acres in a section One acre 43 560 sq feet one section 640 acres 1 square mile one township 36 sq miles Know problems in ch 19 What is the tax rate for a community with a budget for the coming year of 560 million Income from non property tax sources is expected to be 115 million and the net taxable base is 26 billion o 560 115 26 445 26 17 o 17 mills During my lease I have exclusive permission and control Except for maintenance Hunting license lease you do not have exclusive permission and control In Florida they must give you 12 hours notice to go into your home apt Internals on government survey Government rectangular survey system grss Used in combination with one or both if the mates and bounds and the recorded plat map Elements used to identify property are township lines range All property is described relative to a principle meridian and lines and sections base line Principle meridian north south line Base line east west The intersection between principle meridian and base line initial point Township lines east west at 6 mile intervals Range lines north south at 6 mile intervals Sections townships consists of 36 one square mile sections Township lines Range lines Run east and west at six mile intervals parallel to the base line Run north and south at six mile intervals parallel to the principle meridian Preparation of closing statements Typical buyer expenses include o Document stamps and intangible taxes on the mortgage and note o Mortgage and deed recording fees o Appraisal credit report survey inspection and lenders service fees o Prepaid mortgage interest o Title insurance and buyers attorneys fees Sellers expenses o Documentary stamp tax on deed o Mortgage satisfaction fees o Sellers attorney fees o Brokers commission How often do they correct for the earths curvature 24 miles 4X4 square of townships are termed check 4 methods of proper descriptions of real estate Surveys Metes and bounds oldest method measurement Recorded plat map Government rectangular survey system o POB points of beginning angle measurement and distance Postal address in a deed No contract of sale Who signs a valid deal Grantor yes Grantee no Know repsa requirements The federal real estate settlement procedures act Requires lenders to provide with an estimate of settlement costs within 3 business days of when the borrower applies for a loan Requirements Provide a settlement cost and you booklet to the borrower Provides a good faith estimate of closing costs within 3 days after the loan application Provide a uniform statement of closing costs to the borrower o Prohibits kickbacks from being associated with the transaction Valid deed not effective unless it is delivered even if it s a gift Creeshan gain something by nature Major categories of fico credit history capacity time accumulation What are the ranges 350 850 Open listing Broker the right to market a particular property Owners not precluded from listing the property with other brokers Only the broker that procures a buyer is due commission The owner may sell the property and then is not required to pay a commission Exclusive agency listing The seller lists the property with one ONE broker but have the right to sell property themselves Sellers must pay commission if the property is sold by someone other than the owner broker Often not used Exclusive right of sale listing What you want as a seller The broker is owed a commission if any other brokers or the owner sell the Sellers list their property with one broker property during the contract period The multiple listing service MLS accepts only exclusive right of sale listings When is the broker paid At closing If he brings you a willing and able buyer you owe the broker 6 whether you let them buy it or not Commercial loans have lockout provisions Every state requires its own license to sell Title of property rights Right of quiet enjoyment owners have claim to their property without disturbances from claiming the title right of disposition allow owners to transfer ownership to others right of exclusive procession and control owners have legal right to control the entry to their property Joint tenancy vs tenants in common Which are your parents joint Joint tenancy has right of survivorship you own it 50 50 if you are married and if they die the other gets it o Ownership rights must begin at the same time o The ownership rights must be transferred under the same title Tenancy in common if you pass it does not go to survivor it goes to heirs Most important document you will ever sign contract for sale Real Estate Agents Single agents Dual agents Transaction brokers what we have in FL0 o Assist with the transaction o Doesn represent either party o The brokers status must be disclosed in writing to all relevant parties Ch 22 prorates Accrued and prepaid expenses are pro rated to reflect the period of times the seller and buyer occupied the property during the time the expense was incurred o The seller is typically responsible for the day of closing o If expenses have been prepaid the seller is due a credit and the buyer a debit o Prorated prepaid expense HOA fee of 100 are paid Dec 31 for the following year The sale is closed on mar 31 What is the prorated expense The buyer will occupy the property from April 1 Dec 31 275 365 days X 100 75 34 the seller is credited and the buyer is debited 75 34 Condominiums started in Gaugh France Legal rights if you get a deed exclusive procession and control right of disposition quiet enjoyment Commercial mortgages are non recourse loans Commercial banks hold 39 of the total long term commercial real estate debt