BERMUDA REAL ESTATE UPDATED EXAM SCRIPT
QUESTIONS AND ANSWERS FIRM A+
✔✔Appurtenant rights - run with the land - ✔✔The automatic transfer of certain rights or
encumbrances in real property when title is conveyed.
✔✔Easement in gross - ✔✔personal use not transferrable
✔✔Easement by Prescription - ✔✔Created through continual use over a certain period
of time. It must be continual, visible, & w/o approval. Example - a private road becomes
public.
✔✔encroachment - ✔✔infringements affecting marketability
✔✔curable depreciation - ✔✔cost effective minor repairs
✔✔Incurable Depreciation - ✔✔Physical deterioration that cannot be repaired in a cost-
effective manner.
✔✔appraisal - ✔✔RICS (Roy Surveyors) guidelines of the current value of the property.
✔✔Subject property - ✔✔The property being appraised
✔✔Statute of Frauds - ✔✔A state statute under which certain types of contracts over 1
year must be in writing to be enforceable.
✔✔"as is" - ✔✔said of property offered for sale in its present condition does not protect
against liability material defects
✔✔warranty of title - ✔✔the seller's promise that he or she owns and may transmit title
to the item being offered for sale = covenant of quiet enjoyment.
✔✔assignment - ✔✔transfer rights of property
✔✔Planning permission time limit from granted - ✔✔2 years
✔✔planning permission completion notice - ✔✔12 months extension on planning
permission
✔✔Graduated Lease - ✔✔rent increases by a fixed amount over a specified period of
time
✔✔assignment - ✔✔the transfer of Lease to a third party
,✔✔Blanket Loan - ✔✔A mortgage covering more than one parcel of real estate,
providing for each parcel's partial release from the mortgage lien upon repayment of a
definite portion of the debt.
✔✔Wraparound Loan - ✔✔A larger loan that includes the assumption of an existing
mortgage or deed of trust, plus additional funding.
✔✔nonrecourse loan - ✔✔a loan that carries neither a penalty nor further obligation to
repay if not paid back. Collateral based.
✔✔Straight Note - ✔✔A note in which a borrower repays the principal in a lump sum at
maturity while interest is paid in installments or at maturity. (See Interest Only Note.)
✔✔acceleration clause - ✔✔lender call entire loan on default
✔✔Defeasance Clause - ✔✔Cancellation of a mortgage upon repayment of the
mortgage loan.
✔✔Foreshore - ✔✔seabed highest level - queens bottom/foreshore
✔✔Common defects - ✔✔A condition of a sale that may put it at risk and may include
forged documents or undisclosed third-party interests
✔✔Undisclosed third-party interests - ✔✔Liens, undiscovered ownership interests,
unrecorded prior transfers lis pendens/pending lawsuits
✔✔Purpose of a professional title search - ✔✔The process by which all recorded
information about the property's liens, lis pendens and chain of title are discovered
✔✔Chain of title - ✔✔The length of time that research must go back regarding
ownership of real estate. In Bermuda, the requirement is 20 years
✔✔Abstract of title - ✔✔A brief, chronological summary of the recorded documents
affecting title to a particular parcel of real property.
✔✔Abstractor - ✔✔the person who prepares an abstract of title.
✔✔Settlement or closing - ✔✔The process by which title to the property is conveyed
from a seller to a purchaser
✔✔Quiet Title - ✔✔Refers to a court action to remove a cloud or small defect in the title
a court action to remove a cloud or small defect in the title
, ✔✔Conveyance attorney or Purchaser attorney - ✔✔Alternate terms for "Settlement
Agent"
✔✔Escrow account - ✔✔An account where money is held in trust until it can be
delivered to a designated party
✔✔The property is in escrow - ✔✔signed contract to delivered deed period
✔✔Escrow - ✔✔The depositing of money, legal documents, and instructions with a third
party to be held until the conditions of a contract are fulfilled
✔✔Comingling - ✔✔The mixing of a clients' funds with business operating funds. This is
an illegal practice in Massachusetts that can result in revocation of an agent's license.
✔✔Conversion - ✔✔Converting funds to another use than intended, or misappropriating
them
✔✔Purchase/sales contracts and loans include: - ✔✔satisfaction and release of :
contingencies
liens
gathering documents: PRET
property insurance
restrictions
encumbrances
title
disbursing transaction funds:
property taxes
special assessments
1st mortgage
other liens
settlement/closing fees with balance to the seller
distribution of pertinent documents
✔✔Closing costs - ✔✔Buyer: refunds to seller, deed and new mortgage fees, appraisal
fees for loan funding, building inspection, new loan fees;
Seller: cost of clearing title, loan payoff, agent's commission
✔✔Documents of a residential property sale include - ✔✔Deed, bill of sale, property
insurance, reduction certificate, satisfaction of mortgage DBPES
QUESTIONS AND ANSWERS FIRM A+
✔✔Appurtenant rights - run with the land - ✔✔The automatic transfer of certain rights or
encumbrances in real property when title is conveyed.
✔✔Easement in gross - ✔✔personal use not transferrable
✔✔Easement by Prescription - ✔✔Created through continual use over a certain period
of time. It must be continual, visible, & w/o approval. Example - a private road becomes
public.
✔✔encroachment - ✔✔infringements affecting marketability
✔✔curable depreciation - ✔✔cost effective minor repairs
✔✔Incurable Depreciation - ✔✔Physical deterioration that cannot be repaired in a cost-
effective manner.
✔✔appraisal - ✔✔RICS (Roy Surveyors) guidelines of the current value of the property.
✔✔Subject property - ✔✔The property being appraised
✔✔Statute of Frauds - ✔✔A state statute under which certain types of contracts over 1
year must be in writing to be enforceable.
✔✔"as is" - ✔✔said of property offered for sale in its present condition does not protect
against liability material defects
✔✔warranty of title - ✔✔the seller's promise that he or she owns and may transmit title
to the item being offered for sale = covenant of quiet enjoyment.
✔✔assignment - ✔✔transfer rights of property
✔✔Planning permission time limit from granted - ✔✔2 years
✔✔planning permission completion notice - ✔✔12 months extension on planning
permission
✔✔Graduated Lease - ✔✔rent increases by a fixed amount over a specified period of
time
✔✔assignment - ✔✔the transfer of Lease to a third party
,✔✔Blanket Loan - ✔✔A mortgage covering more than one parcel of real estate,
providing for each parcel's partial release from the mortgage lien upon repayment of a
definite portion of the debt.
✔✔Wraparound Loan - ✔✔A larger loan that includes the assumption of an existing
mortgage or deed of trust, plus additional funding.
✔✔nonrecourse loan - ✔✔a loan that carries neither a penalty nor further obligation to
repay if not paid back. Collateral based.
✔✔Straight Note - ✔✔A note in which a borrower repays the principal in a lump sum at
maturity while interest is paid in installments or at maturity. (See Interest Only Note.)
✔✔acceleration clause - ✔✔lender call entire loan on default
✔✔Defeasance Clause - ✔✔Cancellation of a mortgage upon repayment of the
mortgage loan.
✔✔Foreshore - ✔✔seabed highest level - queens bottom/foreshore
✔✔Common defects - ✔✔A condition of a sale that may put it at risk and may include
forged documents or undisclosed third-party interests
✔✔Undisclosed third-party interests - ✔✔Liens, undiscovered ownership interests,
unrecorded prior transfers lis pendens/pending lawsuits
✔✔Purpose of a professional title search - ✔✔The process by which all recorded
information about the property's liens, lis pendens and chain of title are discovered
✔✔Chain of title - ✔✔The length of time that research must go back regarding
ownership of real estate. In Bermuda, the requirement is 20 years
✔✔Abstract of title - ✔✔A brief, chronological summary of the recorded documents
affecting title to a particular parcel of real property.
✔✔Abstractor - ✔✔the person who prepares an abstract of title.
✔✔Settlement or closing - ✔✔The process by which title to the property is conveyed
from a seller to a purchaser
✔✔Quiet Title - ✔✔Refers to a court action to remove a cloud or small defect in the title
a court action to remove a cloud or small defect in the title
, ✔✔Conveyance attorney or Purchaser attorney - ✔✔Alternate terms for "Settlement
Agent"
✔✔Escrow account - ✔✔An account where money is held in trust until it can be
delivered to a designated party
✔✔The property is in escrow - ✔✔signed contract to delivered deed period
✔✔Escrow - ✔✔The depositing of money, legal documents, and instructions with a third
party to be held until the conditions of a contract are fulfilled
✔✔Comingling - ✔✔The mixing of a clients' funds with business operating funds. This is
an illegal practice in Massachusetts that can result in revocation of an agent's license.
✔✔Conversion - ✔✔Converting funds to another use than intended, or misappropriating
them
✔✔Purchase/sales contracts and loans include: - ✔✔satisfaction and release of :
contingencies
liens
gathering documents: PRET
property insurance
restrictions
encumbrances
title
disbursing transaction funds:
property taxes
special assessments
1st mortgage
other liens
settlement/closing fees with balance to the seller
distribution of pertinent documents
✔✔Closing costs - ✔✔Buyer: refunds to seller, deed and new mortgage fees, appraisal
fees for loan funding, building inspection, new loan fees;
Seller: cost of clearing title, loan payoff, agent's commission
✔✔Documents of a residential property sale include - ✔✔Deed, bill of sale, property
insurance, reduction certificate, satisfaction of mortgage DBPES
