Numbers

• 1866 Civil Rights Act, 64, 69, 70–71
• 1968 Federal Fair Housing Act, 64–65, 69, 70–71
• 1974 Housing and Community Development Act, 70
• 1988 Fair Housing Amendments Act, 70

A

• absorption fields, 186
• abstract of title, 131–132
• acceleration clauses, 218, 234
• accounting, 53
• accretion, 146
• accrued depreciation, 204–205
• accrued item, 135, 136
• acknowledgment, 121
• action to quiet title, 145
• actual evictions, 172
• actual possession, 145
• ad valorem taxes, 242
• ADA (American with Disabilities Act), 72
• add-on factor, 173–174
• adjustable interest rates, 230
• adjustable-rate mortgage (ARM), 230–231
• adjusted basis, 265
• adjustment process, 200–201
• adverse possession, 145
• advertising, 66–67
• after-tax cash flow, 270
• age adjustments, 201
• agency agreements, 59, 157
• agency by estoppel, 50
• agency by ratification, 50
• agency coupled with an interest, 50
• agency disclosure laws, 49
• agency law, 45–62, 404
  • ending agency relationships, 59–60
  • establishing agency relationships, 49–52
  • payments, 57–59
  • relationship between agents and customer, 55–57
  • relationship between agents and principal, 52–55
  • representation, 46–49
• agents, 46
  • Broker’s Agent, 47
  • defined, 2, 28
  • relationship between customers and, 55–57
  • relationship between principal and, 52–55
  • subagents, 46–47
  • types of, 46
• age-oriented communities, 71
• agreement in writing rule, 155, 170
• agreements, 50, 51, 59, 81
• air rights, 85, 130

• “All of the above,” 23

• all-risk, all-peril policy, 37
• alluvium, 146
• always term, 23
• amenities, 194
• American with Disabilities Act (ADA), 72
• amortized loan, 231–233, 264, 285
• annual cap, 231
• annual interest, 285
• annual operating budget, 35
• annual percentage rate (APR), 219
• anticipation, 197
• anti-discrimination laws, 72
• antitrust laws, 41
• apartment buildings, 256
• apartments, 167
• appraisers, 193
• appraising properties, 35, 191–214
  • analyzing comparable sales, 199–202
  • analyzing property's income, 207–211
  • analyzing replacement cost and depreciation, 202–206
  • basics of, 191–193
  • different types of value, 195–196
  • economic factors, 196–199
  • estimating value, 293–295
  • importance of location, 194–195
  • reconciliation, 211
• appurtenant to the land, 84
• APR (annual percentage rate), 219
• aquifers, 185
• ARM (adjustable-rate mortgage), 230–231
• arm’s length transaction, 196
• arrears, 290
• asbestos, 182
• assessed value, 196, 243–244, 288. See also appraising properties
• assessing units, 242
• assessment ratio, 243, 288
• assessments, 192, 242, 249–250
• assignments, 161, 171, 234–236
• associate brokers, 28, 29
• assuming a mortgage, 236
• attachments, 81
• attorney-in-fact, 121
• avoiding risks, 37
• avulsion, 146

B

• back-end ratio, 226
• balloon payment, 234
• bankruptcy, 59
• banks, 221
• bargain and sale deed, 123
• baselines, 125
• basic income capitalization formula, 210–211
• before-tax cash flow, 270
• benchmarks, 130
• beneficiary, 92, 217
• bilateral contract, 154, 157
• binder, 31, 53, 160
• blanket mortgage, 227
• block system, 130
• blockbusting, 68
• blue sky laws, 259
• boiler insurance, 37
• boot, 268
• breaching contracts, 162–163
• bridge loan, 229
• brokers, 9–12, 28–33
• Broker’s Agent, 47
• brownfields, 182
• builders, 34
• building income, 263–264
• building-related illnesses, 182
• bundle of rights, 79, 82
• buydown, 219
• buyer agency agreements, 50, 52
• buyers, 31, 162, 192
• buyer’s agent, 33, 48, 58
• Buying Your Home (HUD), 134

C

• calculators, 13, 410
• call clause, 236
• capital appreciation, 262
• capital budgets, 36
• capital gain, 262, 265
• capital improvement, 265
• capitalization method, 293–294
• capitalization rate, 210
• caps, 231
• carbon monoxide, 184
• care provision, 53
• careers, 27–44
  • description of players in, 28–30
  • independent contractors, 40
  • job-related laws, 41–42
  • managing real estate offices, 39–40
  • opportunities, 33–35
  • property management, 35–39
  • real estate brokers and salesperson, 30–33
• CART (controlling, avoiding, retaining, and transferring risk), 37
• cash flow, 264, 269
• casualty insurance, 37
• catchwords, 67
• ceilings, 231
• CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act), 178
• Certificate of Reasonable Value (CRV), 224
• certificate of title, 132
• certificates, prelicensing course, 14
• CFCs (chlorofluorocarbons), 185
• changing loan conditions, 68–69
• checks, 126
• claim of ownership, 145
• Clean Water Act, the Toxic Substance Control Act, 179
• clients, 2, 31, 47
• closers, 134
• closing, 32, 131–139
• Closing Disclosure Statement, 134, 137–138
• cloud on the title, 123, 131
• code words, 67
• codicil, 147
• co-insurance, 37
• collecting rents, 36
• collecting taxes, 241–242
• combination trusts, 260
• commercial banks, 221
• commercial properties, 173
• commingling, 53
• commission, 32–33, 41, 282–285
• common spaces, 173
• community property, 83, 92
• Community Reinvestment Act (CRA), 69, 237
• comparable sales, 199–202, 207
• compensatory damages, 162, 163
• competition, 197
• Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 178
• condemnation, 59
• conditional sales contract, 160
• condominiums, 94–96
• confidentiality, 53
• conforming loans, 220
• consideration, 144, 155, 170
• consideration clause, 120–121
• construction loan, 227
• construction techniques, 3
• constructive evictions, 173
• constructive notice, 138
• consulting, 31
• Consumer Credit Protection Act, 237
• consumer protection laws, 236–238
• contingency clause, 159
• continuous use, 145
• contract for deed, 160
• contract of sale, 31, 133
• contract rent, 209
• contracts, 153–165
  • breaching, 162–163
  • discharging, 161–162
  • forfeiting, 162
  • income tracking on operating statements, 268
  • making, 153–156
  • rescinding, 162
  • types of, 156–161
• contributions, 197
• controlling, avoiding, retaining, and transferring risk (CART), 37
• controlling risks, 37
• conventional loans, 220
• conversion, 53
• conveyance of title, 121
• cooperating brokers, 47
• cooperative board approval of newcomers, 95
• cooperatives, 94–96
• co-ownership, 89–94
• corporations, 34, 93
• correction lines, 126
• cost approach formula, 203
• cost recovery, 265, 293
• course exam, 10
• court proceedings, 193
• court-ordered deeds, 124
• covenant against encumbrances, 122
• covenant of further assurance, 122
• covenant of quiet enjoyment, 122
• covenant of seisin, 122
• covenant of warranty forever, 122
• CRA (Community Reinvestment Act), 69, 237
• credit, 134
• credit unions, 221
• cross-town agents, 31
• CRV (Certificate of Reasonable Value), 224
• curable deterioration, 205
• curtesy, 83
• customers, 47, 55–57

D

• datum, 130
• death, 59, 147–148, 161
• debit, 134
• debt service, 264, 270
• dedication, 143–144
• deed in lieu of foreclosure, 235
• deed in trust, 92, 123
• deeds, 120–130, 144
• defaults, 216
• delegation, 161
• delivery, 121
• Department of Housing and Urban Development (HUD), 65, 66–67, 72, 179
• Department of Veterans Affairs (VA), 222, 224
• depreciations
  • analyzing for appraising properties, 202–206
  • measuring, 291–293
  • taxes and, 265–267
• destruction of premises, 170
• development rights, 85
• developments, 180–181
• devise, 147
• diameters, 279
• different ownership rights, 84–86
• diminishing returns, 198
• direct costs, 204
• direct reduction loan, 231
• disabled. See handicapped
• discharging a contract, 161–162
• disclosure, 49, 53–56
• disclosure laws, 49
• discount points, 218
• discount rate, 222
• discrimination
  • in advertising, 66
  • exclusionary, 69
  • gender, 67
  • monetary, 63
  • protecting disabled from, 72
  • race, 67
  • religious, 67
• discriminatory actions, 65–69
• doctrine of prior appropriation, 85
• domestic water, 185
• double net lease, 172
• dower, 83
• down payment, 160
• dual agency, 48
• due care, 180
• due diligence, 180
• due on sale clause, 236

E

• earnest money, 31, 53, 160
• easement by prescription, 145
• ECOA (Equal Credit Opportunity Act), 237
• ecofriendly building, 177
• economic age life method, 206
• economic factors, 192, 196–199
• effective age, 206
• effective gross income, 269
• electromagnetic fields, 182
• elevations, 130
• eminent domain proceedings, 146, 193
• employees, 40
• encapsulation, 182
• enclosed retail malls, 256
• encumbrances, 99–107, 122, 133
• enforcing, 72
• English-as-a-second-language course, 19
• entry permit, 13, 410
• environment
  • assessments, 181
  • changes in, 197
  • factors, 192
  • risks, 56
  • scientists, 177
• environmental government regulations, 177–188
  • on building developments, 180–181
  • environmental pollutants and situations, 181–185
  • federal government laws for, 178–180
  • water and waste issues, 185–186
• environmental impact statement, 180–181
• Environmental Protection Agency (EPA), 178–179
• Equal Credit Opportunity Act (ECOA), 237
• equal shares, 90
• equalization rates, 246–248
• equitable redemption, 235
• equitable right of redemption, 250
• equitable title, 217
• equity, 224, 260, 261, 264
• erosion, 146
• errors and omissions insurance, 37
• escheat, 148
• escrow, 32, 219
• estate at sufferance, 168
• estate at will, 168
• estate for years, 168
• estate in land, 81–84
• estate valuation, 193
• estimated costs, 134
• estoppel certificate, 236
• evictions, 172–173
• exams
  • basics of, 9–15
  • study techniques, 17–21
  • techniques for taking, 21–24, 409–413
• exchange of ownership, 193
• exchanges, 268
• exclusionary discrimination, 69
• exclusive agency agreement, 157
• exclusive agency listing, 51
• exclusive buyer agency agreement, 52, 58, 157
• exclusive right to sell listing agreement, 51, 157
• executed contract, 156
• executor, 148
• executor's deeds, 124
• executory contract, 156
• exemptions
  • programs for, 405
  • taxes, 248–249
• exercising the option, 155
• existence of an agreements test, 81
• experts, for investing, 258
• express agency, 49
• express agreement, 157
• express contract, 154
• expressed in mills, 245
• external obsolescence, 205
• externalities, 198

F

• fair housing, 404
• fair housing laws, 63–75
  • basics of, 63–65
  • discriminatory actions, 65–69
  • enforcing, 72
  • exceptions to, 70–71
  • protected classes, 69–70
  • protecting disabled from discrimination, 72
• fair housing poster, 65
• faithful performance, 54–55
• familial status, 67
• Fannie Mae, 220, 222
• Farm Service Agency (FSA), 224
• Farmer Mac, 222
• Federal Fair Housing Act, 65
• federal fair housing laws, 63
• federal government, 34
• Federal Housing Administration (FHA), 222, 223–224
• federal laws, 33, 178–180
• federal loan insurance programs, 223
• federal protected classes, 69
• Federal Reserve System (the Fed), 221
• Federal Safe Drinking Water Act, 185
• fee estates, 82
• fee simple, 82
• fee simple determinable, 83
• fee simple qualified estate, 82
• FHA (Federal Housing Administration), 222, 223–224
• fiduciary duties, 52–54, 406
• fiduciary responsibilities, 57–58
• filed map system, 129
• financial reports, 36
• financial responsibilities, 35–36
• fire and hazard insurance, 37
• fixed expenses, 209
• fixed interest rates, 230
• fixed-rate mortgages, 230
• fixtures, 80–81
• foreclosures, 146, 234–236, 250
• forfeit the contract, 162
• forfeiture, 146
• forms, 405
• fourth township line, 126
• fractional sections, 126
• fraud, 56, 57
• Freddie Mac, 222
• freehold estate, 82
• friendly foreclosure, 235
• front footage, 278
• frontage, 278
• front-end ratio, 226
• FSA (Farm Service Agency), 224
• full tax-exempt properties, 248, 249
• functional obsolescence, 205
• further assurance, 122

G

• gable end, 278
• gap loan, 229
• gas rights lease, 171–172
• GEM (growing equity mortgage), 234
• gender discrimination, 67
• general agents, 46
• general partnership, 93, 259–260
• general warranty deed, 122
• gifts, 144
• GIM (Gross Income Multiplier), 207, 295
• Ginnie Mae, 222
• graduated lease, 172
• grant deeds, 123
• grantee, 120, 144
• granting clause, 121
• grantor, 120, 121, 144
• grants, 144
• Gross Income Multiplier (GIM), 207, 295
• gross lease, 171
• Gross Rent Multiplier (GRM), 207–208, 295
• gross rent multiplier method, 294–295
• ground lease, 171
• group boycotts, 42
• growing equity mortgage (GEM), 234
• guarantee programs, 405
• guide meridians, 126

H

• habendum clause, 121
• habitable condition, 170
• half sections, 126
• handicapped, 67
  • accessibility for exams, 410
  • protecting from discrimination, 72
• hazards, 194
• heirs, 147
• highest value, 198
• HMTA (Hazardous Material Transportation Act), 179
• holding period, 270
• holdover, 168
• home equity loans, 227
• home inspectors, 35
• homestead, 83
• honest and fair dealings, 55
• hostile, 145
• hotels, 256
• HUD (Department of Housing and Urban Development), 65, 66–67, 72, 179
• hypothecation, 216

I

• implied agency, 49–50
• implied contracts, 154
• impossibility of performing, 161
• impounds, 220
• improvements, 80, 170
• imputed interest rate, 228
• incentives, 405
• income, building, 263–264
• income and expense statements, 268
• income approach, 207
• income capitalization approach, 208–209
• income capitalization formula, 210–211
• incompetence, 59
• increasing and decreasing returns, 198
• incurable deterioration, 205
• indefeasible fee, 82
• independent brokerages, 33–34
• independent contractor, 40
• index, 230
• index lease, 172
• index method, 204
• indirect costs, 204
• individual retail buildings, 256
• industrial properties, 257
• in-house real estate agents, 34
• innocent landowner immunity, 180
• inspection contingency, 159
• installment contract, 160
• insurance
  • companies, 221
  • federal loan insurance programs, 223
  • for funding, 220
  • mortgage insurance premium (MIP), 224
  • principal, interest, taxes, and insurance (PITI), 226
  • private mortgage insurance (PMI), 224
  • responsibilities, 36–37
  • for titles, 122, 132
  • types of, 37
• interest, 83, 84, 91, 167, 285, 286
• interest rates, 219, 228, 230, 285–286
• interim financing, 229
• intermediate theory, 218
• interpreters, 19
• intestate, 147
• investing, 255–273
  • acquiring and building, 260–262
  • analyzing properties, 268–270
  • disadvantages to, 258–259
  • government's role in, 264–268
  • making money from, 262–264
  • with partners, 259–260
  • in property, 255–259
• investment groups, 221
• investment value, 196
• involuntary alienation, 144–147

J

• job-related laws, 41–42
• joint tenancy, 91
• joint ventures, 94
• Jones versus Alfred H. Mayer Company, 64
• judicial foreclosure, 234
• jumbo loan, 222
• junior liens, 235

K

• kickbacks, 33

L

• land
  • contracts, 160
  • defined use of term, 2
  • for investment, 257
  • leasing, 171
  • ownership terms, 80
  • sales contract, 160
  • surveyors, 124
  • value, 197, 206
• landfills, 184
• landlords, 167–168
• land-use regulations, 107–113
• language barriers, 19
• large residential complexes, 256
• latent defects, 55–56
• lawful object, 155
• laws of descent, 147
• lawsuits, 145, 162–163
• leach fields, 186
• leachate, 186
• lead, 182–183
• Leaking Underground Storage Tanks (LUST), 179, 184
• leased fee estates, 167–168
• leased fee interest, 84
• leased premises, 170
• leasehold estates, 84, 168
• leasehold interest, 84
• leasing property, 161, 167–176
  • different estates for, 167–169
  • getting what paid for, 173–174
  • types of evictions, 172–173
  • types of leases, 171–172
  • typical leases, 169–171
• legal advice, 3
• legal description, 121
• legal description of the property, 124
• legal life estates, 83
• legal objective, 169
• legal title, 217
• legally competent parties, 155, 169
• lenders, 225–226
• lender's policy, 132
• lessee, 168
• lessor, 168
• letter of intent, 160
• leverage, 260–261
• liability insurance, 37
• license laws, 404. See also state license law
• lien theory, 217
• liens, 216–217
  • removing, 132–133
  • taxes, 250
• lies, in selling, 68
• life estate pur autre vie, 83
• life estates, 83
• lifetime cap, 231
• like kind, 268
• limitations, 99–117
  • encumbrances, 99–107
  • land-use regulations, 107–113, 405
  • public, 113–115
• limited agency, 48
• limited liability corporation (LLC), 94
• limited partnership, 93, 259
• listing agreements, 31, 50, 51, 157
• listing brokers, 33
• listings, 51, 58
• littoral rights, 84
• LLC (limited liability corporation), 94
• loan to value ratio (LTV), 225–226
• loans. See also mortgages
  • associations, 221
  • conditions, 68–69
  • conforming loans, 220
  • conventional loans, 220
  • guarantee programs, 223
  • home equity loans, 227
  • nonconforming loans, 220
  • partially amortized loans, 234
  • reverse annuity loans, 228
  • terms of lease, 231
• local anti-discrimination laws, 72
• local laws, 65
• local protected classes, 70
• loss factor, 173–174
• lot and block system, 129
• lot block tract system, 129
• loyalty, 53, 54
• LTV (loan to value ratio), 225–226
• LUST (Leaking Underground Storage Tanks), 179, 184

M

• machinery insurance, 37
• maintenance, 36, 170
• malls, 256
• managers, 39–40
• margin, 230
• market allocation, 41–42
• market comparison approach, 199
• market rents, 269
• market value, 195, 242
• marketable title, 32, 131
• married couples, owning real estate, 91–92
• material defects, 55–56
• math, 275–298
  • appreciation and depreciation, 291–293
  • calculating taxes, 287–289
  • commission, 282–285
  • estimating appraised value, 293–295
  • measuring area and volume, 276–280
  • mortgage calculations, 285–287
  • percentages, 280–282
  • proration, 289–291
  • test-taking techniques for, 24
• measuring
  • area and volume, 276–280
  • converting, 276
  • elevations, 130
  • properties, 276–277
  • square feet, 278
• meeting of the minds, 32, 58, 159
• Megan's Law, 56, 65
• metes and bounds system, 124–125, 130
• method of attachment test, 81
• mill rate, 245
• mills, 289
• mineral rights, 86
• MIP (mortgage insurance premium), 224
• MLS (multiple listing service), 31, 51
• mold, 185
• monetary discrimination, 63
• money issues, 405
• monthly interest, 285
• monthly payments, 287
• monuments, 125
• mortgage assumption, 235–236
• mortgage contingency, 159
• mortgage insurance premium (MIP), 224
• mortgage trusts, 260
• mortgagee, 217
• mortgagee's policy, 132
• mortgages, 215–240
  • approval, 193
  • banking companies, 221
  • calculations, 285–287
  • calculators, 231–232
  • consumer protection laws, 236–238
  • foreclosures, assumptions, and assignments, 234–236
  • lenders accepting, 225–226
  • process of, 215–220
  • repayment plans, 229–234
  • source of funding for, 220–224
  • types of, 227–229
• motels, 256
• multiple listing service (MLS), 31, 51
• multiple-choice question exam, 12
• mutual agreements, 155, 161, 169
• mutual assent, 159

N

• National Affordable Housing Act, 237
• National Association of Realtors (NAR), 30
• national franchises, 33–34
• national origin, 67
• negative amortization, 231
• negligent misrepresentation, 56–57
• neighborhood compatibility, 194
• net lease, 172
• net listing, 51
• net net net lease, 172
• Net Operating Income (NOI), 209, 269, 270
• net selling price, 265
• no right of survivorship, 90
• nonconforming loans, 220
• nondiscrimination laws, 63
• nonjudicial foreclosure, 235
• non-number math questions, 276
• nonresidential building layouts, 173
• notes, 216–217
• notorious, 145
• novation, 161
• nuisances, 194

O

• obedience, 54–55
• obtaining informed consent, 48
• occupancy limits, 171
• Occupational Safety and Health Administration (OSHA), 179
• offer to purchase, 160
• office buildings, 256
• office managers, 39–40
• office policies, 40
• oil rights lease, 171–172
• one- to four-family houses, 256
• on-site salesperson, 34
• on-site water supply systems, 186
• open, 145
• open buyer agency agreement, 52, 157
• open listing, 51
• open listing agreement, 157
• open mortgage, 227–228
• open-end mortgage, 228
• operating expenses, 270
• operating income, 264
• operating statements, 268
• operation of law, 161
• opportunity cost, 198
• option listing, 51
• options, 160
• oral agreements, 155
• ordinary life estate, 83
• origination fees, 219
• OSHA (Occupational Safety and Health Administration), 179
• other income, 269
• overt steering, 68
• owner-occupied housing, 71
• ownership rights, 405
• ownership terms, 79–88
  • different ownership rights, 84–86
  • estate in land, 81–84
  • land, 80
  • personal property, 80–81
  • real estate, 80
  • real property, 80
  • transferring, 406–407

P

• package mortgage, 228
• paint inspection, 183
• paired sales analysis, 202
• parcel, 128
• parol evidence rule, 155
• partial performance, 161
• partial release provision, 227
• partial tax-exempt properties, 249
• partially amortized loans, 234
• partially correct answers, 22
• partitioning, 146
• partnerships, 93, 259–260
• passing title, 137
• paying bills, 36
• payment cap, 231
• payment factor, 287
• payments, 57–59. See also commission
  • balloon payment, 234
  • down payment, 160
  • monthly payments, 287
  • rent payments, 170
  • repayment plans, 229–234
• pension funds, 221
• perc tests, 186
• percentage lease, 172
• percentages, 280–282
• percolation, 186
• performance, 161
• periodic estate, 168
• periodic financial reports, 36
• personal property, ownership terms, 80–81
• personalty. See personal property
• physical deterioration, 205
• physical factors, 192
• physical responsibilities, 36
• PITI (principal, interest, taxes, and insurance), 226
• planned unit development (PUD), 95
• plat map, 129
• plottage principle, 199
• PMI (private mortgage insurance), 224
• points, 218
• pollutants, environmental government regulations, 181–185
• potential gross income, 209, 269
• potentially responsible parties (PRP), 178
• prelicensing real estate courses, 2
• prepaid item, 135, 136–137
• prepayment penalty, 228
• prescriptive easement, 145
• price fixing, 41
• primary market, 220
• primary mortgage market, 221
• principal, 47, 52–55, 230
• principal, interest, taxes, and insurance (PITI), 226
• principal meridians, 125
• prior appropriation, doctrine of, 85
• private clubs, 71
• private mortgage insurance (PMI), 224
• private syndication, 259
• pro forma, 269
• probate, 148
• procuring cause, 50, 58
• progression, 199
• prohibited activities, 404
• prohibited acts, 65
• prohibited kickbacks, 134
• promissory note, 216
• properties
  • address, 130
  • analyzing for investing, 268–270
  • calculating assessed value of, 288
  • defined use of term, 2
  • descriptions, 124–130
  • destruction of, 59
  • eminent domain proceedings, 59
  • income for appraising, 207–211
  • investing in, 255–259
  • management of, 35–39
  • needing appraisals for taxes, 193
  • value of, 225
• property disclosure, 406
• property loss, 143–150
  • from death, 147–148
  • involuntary alienation, 144–147
  • voluntary alienation, 143–144
• property management agreement, 38–39
• proprietary lease, 94, 172
• proration, 134, 289–291
• protected classes, 69–70, 404
• providing menu of services, 31
• PRP (potentially responsible parties), 178
• public grants, 144
• public limitations, 113–115
• public syndication, 259
• public-law occupancy standards, 71
• PUD (planned unit development), 95
• puffing, 56
• purchase money mortgage, 228
• pyramiding, 261–262

Q

• qualifying ratio, 226
• quantity survey method, 204
• quarter sections, 126
• quiet enjoyment, 122
• quitclaim deed, 123

R

• race discrimination, 67
• radioactive, 184
• radius, 279
• radon, 183
• range lines, 126–127
• rate lock, 219
• ready, willing, and able buyers, 58
• real estate investment trusts (REITs), 260
• real estate mortgage investment conduit (REMIC), 260
• Real Estate Settlement and Procedures Act (RESPA), 133–134
• real property, 80
• realtors, 30
• reasonable care, 55
• rebate programs, 405
• recommendation, 258
• reconciliation, 211
• reconveyance deeds, 123–124
• recorded map system, 129
• recorded plat system, 129
• recorded survey system, 129
• recording transaction documents, 138
• rectangular survey system, 125
• redlining, 69
• reduction certificate, 236
• regression, 199
• REITs (real estate investment trusts), 260
• relationship of the parties test, 81
• religious discrimination, 67
• religious organizations, 71
• remaindermen, 83
• REMIC (real estate mortgage investment conduit), 260
• rent loss insurance, 37
• rent payments, 170. See also tenants
  • contracts, 209
  • control, 169, 406
  • increases, 170
  • insurance for loss, 37
  • market rents, 269
  • properties, 168
  • responsibilities, 36
  • scheduled rents, 268
  • setting rents, 36
• rentable spaces, 173
• renunciation, 59
• repair budgets, 36
• repayment plans, 229–234
• replacement cost, 202–206
• reproduction costs, 203
• resale clause, 236
• rescind contract, 162, 163
• rescission, 162
• reserve requirements, 221
• reserves, 220
• residential complexes, 256
• Resource Conservation and Recovery Act, 179
• RESPA (Real Estate Settlement and Procedures Act), 133–134
• retail buildings, 256
• retaining risks, 37
• retroactive liability, 178
• return on investment, 262
• reverse annuity loans, 228
• reverse mortgages, 228
• reversionary interest, 83
• reversionary right, 168
• right of reentry, 82
• right of survivorship, 91
• riparian rights, 84–85
• risk assessment, 183
• rule of three, 258

S

• Safe Drinking Water Act (SDWA), 180
• safety, 194
• sale clause, terminating, 171
• sale leaseback, 228–229
• sale without permission, 90
• sales, 144
  • contracts, 133, 158
  • taxes, 250
• sales comparison approach, 199, 201
• salesperson, 9–10
  • defined, 28
  • exams, 10–12
  • how get paid, 32–33
  • job description, 29, 30–32
  • on-site, 34
• sandwich lease, 171
• sanitary waste disposal, 186
• SARA (Superfund Amendments and Reauthorization Act of 1986), 179–180
• scheduled rents, 268
• school section, 129
• schools, 195
• SDWA (Safe Drinking Water Act), 180
• secondary market, 220
• secondary mortgage market, 221–222
• Section 16, 129
• sections, 126
• security deposit, 170
• seisin, 122
• self-dealing., 54
• seller incentive, 219
• selling
  • needing appraisals for, 193
  • scaring people into, 68
• separate property, 92
• septic systems, 186
• services, 194
• setting rents, 36
• sex offenders, 56, 65
• shared equity mortgage, 229
• shared liability, 95
• sheriff's deeds, 124
• Sherman Antitrust Act, 41–42
• shopping centers, 256
• sick building syndrome, 183–184
• single agency relationships, 47
• single-family housing, 71
• sites, 80
• social factors, 192
• soft costs, 204
• solid waste, 184
• solo ownership, 89–94
• special agents, 46
• special assessment district, 242
• special incentives, 405
• special warranty deed, 123
• specific performance, 162, 163
• square footage method, 204
• standard coverage policies, 132
• state anti-discrimination laws, 72
• state exam, 10
• state laws, 33, 65
• state license laws, 9, 19, 28, 29
• state protected classes, 70
• state real estate laws, 403–407
  • agency law, 404
  • fair housing, 404
  • forms, 405
  • license laws, 404
  • limitations on land use, 405
  • money issues, 405
  • ownership rights, 405
  • property disclosure, 406
  • rent control, 406
  • tenants' rights, 406
  • theories, 405
  • transferring ownership, 406–407
• state real estate licensing authority, 5
• state specific escrow, 137
• state-licensing agency, 9
• state-run government direct-loan programs, 223
• state-sponsored mortgage loan, 405
• statute of descent, 147
• statute of frauds, 120, 155, 169
• statutory right of redemption, 235, 250
• steering, 68
• stigmatized properties, 56
• stores, 256
• storm water disposal, 186
• straight loan, 233
• straight-line depreciation, 266
• straight-line method, 205–206
• strict foreclosure, 235
• strict liability, 178
• strip malls, 256
• study techniques, 17–21
• subagents, 46–47
• subject property, 192
• subject to the mortgage, 236
• subleasing, 171
• subordinate liens, 235
• subrogation, 132
• substantial performance, 162
• substitution, 199
• subsurface rights, 86
• Superfund, 178
• Superfund Amendments and Reauthorization Act of 1986 (SARA), 179–180
• supervision, 39–40
• supply and demand, 199
• surety bonds, 37
• surface rights, 85
• surplus productivity, 199
• surrogate's court, 148
• surveys, 125
• swing loan, 229
• syndicate, 93

T

• tax assessor’s parcel number, 130
• tax credit, 267
• tax deduction, 267
• tax deferred exchanges, 268
• tax sale, 250
• taxes, 138–139
  • calculating, 242–248, 287–289
  • collecting, 241–242
  • depreciation and, 265–267
  • exemptions, 248–249
  • liens and sales, 250
  • needing appraisals for, 193
  • understanding rates, 244–245
• taxes per hundred, 289
• taxes per thousand, 289
• tax-exempt properties, 248–249
• taxing authority, 250
• temporary loan, 229
• tenancy by the entirety, 91–92
• tenancy in common, 90
• tenancy in severalty, 90
• tenants, 36. See also rent payments
  • making handicap changes to property, 72
  • rights of, 406
• term loan, 233
• terms of agreement, 59
• terms of lease, 170
• testator, 147
• test-taking techniques, 21–24
• theories, 405
• three-day right of rescission, 237
• tie-in arrangement, 42
• TILA (Truth in Lending Act), 133–134, 237
• TILA-RESPA Disclosure Rule, 138
• time limits, 268
• time shares, 95
• title closing, 131–139
  • after closing, 137–139
  • before closing, 131–133
  • closing, 133–137
• title search, 32, 131
• title theory, 217
• titles, 119
  • companies, 134
  • insurance for, 122, 132
• Torrens system, 132
• total interest, 286
• townhouses, 95
• township lines, 126–128
• townships, 126
• trade fixtures, 81
• traffic, 195
• training, 40
• transactional brokerage, 48–49
• transactions, 30–32
• transferring ownership, 119–141
  • deeds, 120–130
  • involuntarily, 406
  • title closing, 131–139
  • voluntarily, 407
• transferring risks, 37
• trigger terms, 238
• triple net lease, 172
• trust accounts, 220
• trust deed, 92, 123–124, 217
• trustee, 92, 123, 217
• trustee's deed, 124
• trustor, 92, 123, 217
• Truth in Lending Act (TILA), 133–134, 237
• tying agreement, 42

U

• UCC (Uniform Commercial Code), 155
• underground tanks, 184
• undivided ownership, 90
• unenforceable contract, 156
• unequal shares, 90
• Uniform Commercial Code (UCC), 155
• Uniform Limited Partnership Act, 93
• Uniform Partnership Act, 93
• Uniform Residential Appraisal Report Form (URAR), 211
• Uniform Residential Landlord and Tenant Act, 169
• Uniform Vendor and Purchaser Risk Act, 159
• unilateral contract, 154–155
• United States versus Foley, 41
• unit-in-place method, 204
• unity of interest, 91
• unity of possession, 91
• unity of time, 91
• unity of title, 91
• universal agents, 46
• URAR (Uniform Residential Appraisal Report Form), 211
• Urea formaldehyde, 185
• useable spaces, 173

V

• VA (Veterans Affairs), 222, 224
• vacancy and collection loss, 269
• vacant land, 257, 262
• valid contracts, 155, 156
• valid deeds, 120–121
• valid sales contracts, 158
• value in use, 196
• variable expenses, 209
• variable lease, 172
• Veterans Affairs (VA), 222, 224
• voidable contract, 156
• voluntary alienation, 143–144
• voluntary lien, 216

W

• walk-in exams, 13
• warehouses, 256
• warranty deed, 123
• warranty forever, 122
• waste issues, 185–186
• water, 185–186
• water pollution, 185
• water rights, 84
• watering rights, 85
• wells, 186
• wetlands, 185
• wills, 147
• words of conveyance, 121
• wraparound mortgage, 229

Y

• yield, 219