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FSU REE 3043 - Test 3 Study Guide

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Test 3 Study GuideStatute of frauds: real estate must be in writing. This was passed in London in 1677Contract 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 simpleNon freehold: We do not hold our leas freelyGovernments role in property rights- The police power of the state: Right of government to zoning and zoning laws, building costs, etc.- 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 heirsIf 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 deedHow 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. milesKnow 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 = .17o 17 millsDuring my lease I have exclusive permission and control. Except for maintenance. Hunting license: (lease) you do not have exclusive permission and controlIn 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 lines, and sections All property is described relative to a principle meridian and 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 sectionsTownship lines- Run east and west at six mile intervals parallel to the base lineRange lines- Run north and south at six mile intervals parallel to the principle meridianPreparation of closing statements- Typical buyer expenses include:o Document stamps and intangible taxes on the mortgage and noteo Mortgage and deed recording feeso Appraisal, credit report, survey, inspection, and lenders service feeso Prepaid mortgage interesto Title insurance and buyers attorneys fees- Sellers expenses:o Documentary stamp tax on deedo Mortgage satisfaction feeso Sellers attorney feeso Brokers commissionHow often do they correct for the earths curvature: 24 miles4X4 square of townships are termed check4 methods of proper descriptions of real estate: - Surveys- Metes and bounds: oldest methodo POB: points of beginning, angle measurement, and distance measurement- Recorded plat map- Government rectangular survey systemPostal address in a deed? No? contract of sale?Who signs a valid deal?- Grantor: yes- Grantee: noKnow 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 borrowero Prohibits kickbacks from being associated with the transactionValid deed not effective unless it is delivered, even if it’s a giftCreeshan: gain something by natureMajor categories of fico: credit history, capacity, time, accumulationWhat are the ranges: 350-850Open 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 commissionExclusive 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 usedExclusive right of sale listing- What you want as a seller- Sellers list their property with one broker- The broker is owed a commission if any other brokers or the owner sell the property during the contract period- The multiple listing service (MLS) accepts only exclusive right of sale listingsWhen is the broker paid? At closingIf he brings you a willing and able buyer you owe the broker 6% whether you let them buy it or notCommercial loans have lockout provisions.Every state requires its own license to sellTitle 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 propertyJoint 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 timeo 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 heirsMost important document you will ever sign: contract for saleReal Estate Agents:- Single agents- Dual agents- Transaction brokers (what we have in FL0o Assist with the transactiono Doesn’represent either partyo The brokers status must be disclosed in writing to all relevant partiesCh. 22 prorates- Accrued and prepaid expenses are pro rated to reflect the period of times theseller 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 debito 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 $75.34Condominiums started in Gaugh, FranceLegal rights if you get a deed: exclusive procession and control,


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