Bermuda Real Estate | and Licensing Exam Complete Solution Graded A+

Bermuda Real Estate | and Licensing Exam Complete Solution Graded A+ Defect/Cloud in the title - Conflicting claims that prevent the absolute legal conveyance of CLEAR TITLE Period to Period is a type of leasehold that: - Has no specific expiration but the length is specified (like a month to month lease) Net Lease - lease in which the tenant pays some or all of the operating expenses of the property in addition to rent. Often commercial. Adverse Possession - A person takes possession & use of a property belonging to another. Possession must be open, notorious, hostile & uninterrupted for a certain period of time. Estoppel - Legal bar that prevents contradictions. Often a document that 'stops' prevents people from contradicting earlier agreements or statements Conformity appraisal method - Orchard in the midst of a housing development Anticipation value - Valued on future income. nonrecourse loan - a loan that carries neither a penalty nor further obligation to repay if not paid back Government Rectangular Survey System - Land (Definition) - immobility, permanence, uniqueness, indestructablity Annexation - term by attachment becomes real property Severance - term by separating a fixture from real property becomes personal property Monument - landmark natural or stake to mark a boundry Fee Simple Absolute - No conditions on use or transfer alienation of title - A change of ownership. May be voluntary (sold the property) or involuntary (foreclosure sale). testate - having a will Intestate Succession - the method used to distribute property owned by a person who dies without a valid will nuncupative will - an oral will Holographic Will - A will written entirely by the testator with his own hand. devise - real property disposed of in a will Adverse Possession - The actual, open, notorious, hostile, and continuous possession of another's land under a claim of title, must be 20 years. Redemption - mortgage default then payoff and claim back property balance app - Friendly Foreclosure - deed in lieu of foreclosure forebearance - work out loan for debt Tenants in Common - shared ownership of a single property among two or more persons; interests need not be equal and no right of survivorship exists. FRACTIONAL Joint Tenancy - A form of co-ownership that includes the right of survivorship. EQUAL foreshore encroachments - docks foreshore lease - 21 years Non-conforming use - Use after a zoning change - grandfathered (BEFORE ZONING) Variance - Added after zoning in place - granted (AFTER ZONING) Conditional use - permitted use that can be revoked Spot zoning - a change in the zoning ordinance for a particular area buffer zone - new industrial park and zone space between Special assessment - Tax only on property directly benefiting from an improvement Constructive Notice - Notice given by recorded documents. Revealed in Due Diligence search. Escalator Clause Lease - Actual Notice - Personally given to somebody/ signed for Priority of Liens - Based on time or date of recording Equitable liens - Court order Statutory liens - automatic - tax easement (ingress, egress, regress) - easement (enter, exit, reenter) Easement of necessity - e.g. landlocked parcel of land. The easement is NECESSARY to access the property. Servient Tenement - Parcel over which the easement runs Dominant Estate (Tenement) - The tract that benefits from the easement 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