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More NC Real Estate Flashcards
Things that were tricky for me
33
Real Estate & Planning
12/13/2010

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Term
Easement in gross does...
Definition
Does NOT run with the land. it is for the benefit of a person or entity NOT the land. opposite of an appurtenant easement
Term
Excise tax is payed by
Definition
the seller
Term
Machinery act
Definition
regulates standards for real estate prop. tax, standards for tax ass., standards for tax app., req. for tax exempt status.
Term
marketable title act
Definition
if a chain of title can be traced back for 30 years and no other claims have been recorded during that time, the title is marketable.
Term
When the broker makes a willful misrep. to the Buyer,and is sued by the buyer...this also can happen
Definition
1. the broker may have his/her licenses revoked or suspended.
2. the owner of the property may be sued because of the brokers mistake
Term
A contract for sale of RE must be in writing to be...
Definition
enforceable
Term
which is not bilateral - option, offer, listing or residential lease?
Definition
offer
Term
A sales contract contingent of financing should state
Definition
the amount of the loan needed
lowest acceptable interest
Term
in a a gross lease the lesee must pay...
Definition
RENT ONLY....NOT tax, maintenances, and insurance
Term
periodic tenancy (year to year) notice must
Definition
be given. however, the lease can be terminated at anytime.
Term
under a ground lease in NC the lessee must pay
Definition
rent, tax, Insurance, upkeep, repairs + principal and interest
Term
(buy) Adjusted tax basis =
Definition
purchase price + improvements + special assessments
Term
(sell) realized tax =
Definition
sale price - Closing costs
Term
The Fed. Fair housing act of 1988 does NOT include...
Definition
People who are divoced
Term
if the listing agent doesn't disclose, resulting in the subagent or buyers agent not knowing too are they both liable?
Definition
yes
Term
A real estate agent who violates GS 93A may be...
Definition
fined or imprisoned by the court and have her license revoked, suspended or be reprimanded or censured by the commission.
Term
Earnest money and tenant security deposits other than cash must be put into a trust ...
Definition
3 banking days following acceptance of the offer (CLASS A TRUST)
Term
CLASS B TRUST
Definition
Rent, settlement proceeds, cash and other trust funds must be deposited 3 days from receipt
Term
A real estate agent's license will be .... if he doesn't pay the renewal fee by June 30
Definition
EXPIRE
Term
Alienation Clause
Definition
does NOT allow the seller's loan to be assumed
Term
Acceleration clause
Definition
if the buyer defaults then the debt is due in full
Term
A promissory note accompanying the deed of trust does these things
Definition
evidence of the debt, terms of payment (promise), signature of the borrower (mortgagor)
Term
(Take out commitment/loan,
Definition
paid off in its entirety when the property is sold. builder usually pays a fee for the right to obtain a permanent loan if needed.
Term
(RESPA) Real estate settlement procedures act.
Definition
requires lender to give the borrower an estimate of all settlement costs within 3 days of the loan app.
Term
in a VA loan discount points may be payed by..
Definition
either the buyer of the seller
Term
A junior mortgage ...
Definition
any mortgage other than the first mortgage.
Term
Construction loan
Definition
greatest risk to lender. arrangements are expected to be made for a permanent loan (take out or end loan)
Term
PITI
Definition
Principal, interest, taxes, insurance
Term
PITI formula
Definition
130,000 divided by 1000 = 130 x 6.99 (factor) = 908.70 PI
1,200 divided by 12 = 30.00 monthly T (Tax)
360 (insurance) divided by 12 = 30.00 monthly I
Sum the totals to get PITI
Term
total interest over the life of the loan
Definition
Monthly PI 498.75 x 360 (days of 30 year loan) = 179,550 total PI - 75,000 (loan) = 104,050 total I
Term
balance after one month =
Definition
75,000 x .07 (IR) = 5,285 Annual interest
AI divided by 12 = 440.42 I monthly
498.75 PI - 440.21 I = 58.33 Principal monthly. 75,000 - 58.33 P = 75,441.67 New loan balance
Term
debt to Income ratio method
Definition
add up monthly obligations and divide by the gross income
Term
residual-income method =
Definition
subtracting expenses from the gross income = residual income