REE 3043 Test 3 Study Guide Chapters 18 22 Statute of frauds the requirement that certain kinds of contracts be memorialized in a writing signed by the party to be charged with sufficient content to evidence the contract Blockbusting was a business process of U S real estate agents and building developers to convince white property owners to sell their house at low prices out of fear that racial minorities would soon be moving into the neighborhood Steering the discriminatory practice by a real estate agent of maneuvering a client from a minority group away from considering a home in a white neighborhood Easement by prescription means of acquiring use to property by past long continued use Adverse Possession method of acquiring propery defined as actual continuous hostile and exclusive Usually requires more than 10 years Joint tenancy 2 or more owners right of survivorship start same time same title equal use of prop equal ownership rights Tenancy in common most common form of co ownership for business separate titles unequal interest right to begin at diff time equal use of prop Tenancy by entireties co ownership for husband and wife must sign conveyances to become legal protects real estate from creditors claims against spouse must be married Trade fixtures personal property consisting of display table cabinet etc in commercial buildings Residential fixtures Something that was once personal property but has become a part of some real property Elements of a valid deed 1 names of the grantor and grantee 2 proper description of the property 3 words of conveyance 4 statement of consideration 5 signature of grantor and delivery to the grantee Delivery of the deed occurs at closing General Warranty Deed highest form grantees become liable for any title defects created during the period and all previous periods of ownership Special Warranty Deed deed in which grantors covenant only against claims arising from the time they owned the property Quit Claim Deed deed that passes and individuals property rights without guarentees Accretion growth in size by addition or accumulation of soil to land by gradual natural deposits Reliction receding water line that leaves dry land to be added to the title holders property Freehold vs Nonfreehold Estate Freehold held for indefinite time home owner Nonfreehold Set duration of rights apartment Three methods of describing property 1 Metes and bounds 2 Recorded plat map 3 Government Rectangular Survey system Government Rectangular Survey System township lines E W range lines N S and sections 6 mile intervals T Township 1 S R range 1 E 6 mile square SE of initial point Police Power Right of govt to regulate the use of property to protect the health welfare and safety of a population Tax certificate is used in some states to pay unpaid taxes Property owner or buyer must pay off all tax certificates to obtain title of the property Special assessment a tax charged to property to help pay for a local improvement that directly benefits the parcel Generally a one time charge not generally assessed due to value of property but usually by footage Principal duties to agent to be open honest and fair Agent duties to principal skill care loyalty obedience accountability due diligence disclosure and confidentiality Single agent Buying agent represents buyer Selling agent represents seller Fiduciary relationship Dual agent Both the buying and selling agents are represented by the same broker Transaction broker assists with transaction but does not represent either party as an agent RESPA Real estate Settlement Procedures Act requires lenders to provide a settlement costs and you booklet to borrower provide good faith estimate of closing costs within 3 days after loan app provide a uniform statement of closing costs to the borrower RESPA prohibits kickbacks from being associated with the transaction At closing Buyer Pays documentary stamps and intangible taxes on the mortgage and note mortgage and deed recording fees the appraisal credit report survey inspection and lenders service fees prepaid mortgage interest points title insurance and buyers attorney fees Seller Pays documentary stamp tax on the deed mortgage satisfaction fees sellers attorney fees brokerage commission MLS Multiple Listing Services Residential brokers Sharing of property sales listings by a number of real estate brokers with an agreement as to how costs and commissions are to be shared Real Estate License Requirements Two levels of licensing brokers salesperson How to obtain 1 Exemptions attorneys resident managers govt employee 2 General Reqs educational and age complete written licensing exam 3 Experience Reqs One to 5 years depending on state Some states require to show financial capacity or the purchase of errors and ommisions insurance Sq ft per acre 43 560 sq ft How many acres in a section 640 acres one square mile How many acres in a township 36 sq miles 16 townships Check Property tax calculation 9 Market value 139 500 of MV Assessed value exemptions Taxable value millage rate 1000 Taxes due 125 550 25 000 100 550 022640 2276 45 Tax exempt properties govt school churches hospitals Effective Tax Rate taxes market value Market value homestead exemption millage 1000