Georgia real estate exam with complete solution
Easement by prescription
Easement acquired by continuous open and hostile use of the property for the period of
time prescribed by state law
Easement by necessity
Easement allowed by law as necessary for the full enjoyment of parcel of real estate .
(right of ingress and egress over a grantors land)
Rescission
The practice of one party canceling or terminating a contract.
Mortgagee
The bank(receiving the house)
Tax prorations
Taxes are paid July 1st, 365 days, seller pays the day of closing.
Alienation clause
Clause stating that the balance of the secured debt becomes immediately due and
payable at the lenders option if the property is sold by the borrower. Prevents the
borrower from assigning the debt without the lenders approval.
Deed
Does not need to be recorded to be valid.
Economic characteristics of real estate ( LIPS)
Location
Improvements
Permanence of investment
Scarcity
Fiduciary relationship with the principle (COLDAC)
Care
Obedience
Loyalty
Disclosure
Accountability
Confidentiality
Types of real estate ( SIR MAC)
Special purpose
Industrial
Residential
Mixed use
Agricultural
Commercial
PITI
Principle
Interest
Taxes
Insurance
Diminishing returns
The point when additional improvements do not increase value
, Increasing returns
Produces an increase in income and value
Cancel a contract
Stop where you are
Recind contracts
Start over back to starting place
Fee simple determinable
A fee simple estate qualified by a special limitation
"So long as"
"While"
"During"
Automatically reverts back to owner .
Fee simple subject to a condition subsequent
If an estate is no longer used for the purpose conveyed , it reverts back to the original
grantor by the right of re-entry. Have to go to court
Fee simple defeasible
Subject to the occurrence or non occurrence of a specified event. Ex. Land for a church
can only be used for religious reasons
Conveyance
Moved the property
Origination fees
Cost for doing the loan. 1% of loan amount
Brokerage relationships in real estate transactions act( BRRETA)
Governs real estate relationships
Special agent(designated agent)
Represents the principal in one specific act or business transaction only, under detailed
instruction.
General agent
Represents the principle in a broad range of matters
Universal agent
Empowered to do anything the principle could do personally
Voidable
Could be, seemed that everything was ok but found out later.
Ex. Contract with a minor
Void
As if it never happened. Never should have signed contract- public record.
Statue of limitations
Right to take action within a time frame. Six years in georgia
Statue of frauds
IN WRITING!
Mortgagor
Buyer- giving the house for collateral
Warranty deed
Transfers title rights
Valid when the deed is delivered and accepted
Lapsed firm license
Easement by prescription
Easement acquired by continuous open and hostile use of the property for the period of
time prescribed by state law
Easement by necessity
Easement allowed by law as necessary for the full enjoyment of parcel of real estate .
(right of ingress and egress over a grantors land)
Rescission
The practice of one party canceling or terminating a contract.
Mortgagee
The bank(receiving the house)
Tax prorations
Taxes are paid July 1st, 365 days, seller pays the day of closing.
Alienation clause
Clause stating that the balance of the secured debt becomes immediately due and
payable at the lenders option if the property is sold by the borrower. Prevents the
borrower from assigning the debt without the lenders approval.
Deed
Does not need to be recorded to be valid.
Economic characteristics of real estate ( LIPS)
Location
Improvements
Permanence of investment
Scarcity
Fiduciary relationship with the principle (COLDAC)
Care
Obedience
Loyalty
Disclosure
Accountability
Confidentiality
Types of real estate ( SIR MAC)
Special purpose
Industrial
Residential
Mixed use
Agricultural
Commercial
PITI
Principle
Interest
Taxes
Insurance
Diminishing returns
The point when additional improvements do not increase value
, Increasing returns
Produces an increase in income and value
Cancel a contract
Stop where you are
Recind contracts
Start over back to starting place
Fee simple determinable
A fee simple estate qualified by a special limitation
"So long as"
"While"
"During"
Automatically reverts back to owner .
Fee simple subject to a condition subsequent
If an estate is no longer used for the purpose conveyed , it reverts back to the original
grantor by the right of re-entry. Have to go to court
Fee simple defeasible
Subject to the occurrence or non occurrence of a specified event. Ex. Land for a church
can only be used for religious reasons
Conveyance
Moved the property
Origination fees
Cost for doing the loan. 1% of loan amount
Brokerage relationships in real estate transactions act( BRRETA)
Governs real estate relationships
Special agent(designated agent)
Represents the principal in one specific act or business transaction only, under detailed
instruction.
General agent
Represents the principle in a broad range of matters
Universal agent
Empowered to do anything the principle could do personally
Voidable
Could be, seemed that everything was ok but found out later.
Ex. Contract with a minor
Void
As if it never happened. Never should have signed contract- public record.
Statue of limitations
Right to take action within a time frame. Six years in georgia
Statue of frauds
IN WRITING!
Mortgagor
Buyer- giving the house for collateral
Warranty deed
Transfers title rights
Valid when the deed is delivered and accepted
Lapsed firm license
