Tuesday, June 30, 2009

Real Estate Notes 3

The Fed may raise the discount rate, which is the interest rate charged member banks for borrowing money from the Fed. If the discount rate is raised, member banks pay more for borrowing money from the system. In turn, interest rates are typically raised, and some people will then decide that buying and financing a home may be too expensive at that time, thereby cooling the economy.

Enacted in 1992, the Lead-based Paint Hazard Reduction Act requires that sellers and landlords of homes built prior to 1978 give the disclosure form and pamphlet. If the buyer does NOT receive the disclosure, the buyer is not bound by the purchase agreement and both seller and agents are in violation of the law. 42 U.S.C. 4581

Florida law requires that any resident licensee who becomes a nonresident must notify the DBPR within 60 days of the change of state residency. The licensee is also subject to all other FREC rules and Florida state requirements, including notification to the DPBR within 10 days any change in mailing address

By prescription, an easement may be created or terminated after 20 consecutive years. Title to adverse possession requires 7 years of hostile possession in addition to other specific requirements.

Good-faith doubt exists when the closing or consummation date of a sale has not passed, but one or more of the parties has expressed intention not to close. In addition to that fact, the broker must not have received conflicting or identical instructions from all parties concerning disbursement of escrowed funds. After realizing he has good-faith doubt (which is not spelled out as a specified amount of time), the broker must notify the FREC within 15 business days.

To renew a license, an agent must successfully complete 14 hours of CE every two years. If this were their first renewal they would have to complete a prescribed post-licensing education requirement of 45 hours before renewal of their license.

Florida Real Estate law provides for a licensee to dispute a citation within 30 days of receiving the served citation. If the defendant waits even one day past the 30-day limit, the citation becomes a final order and constitutes discipline.

Under an exclusive agency agreement if an owner cancels the agreement the broker is entitled to damages for out-of-pocket expenses incurred while marketing the apartment complex before the agreement was cancelled, such as advertising.
An Abstract of title is a history of All recorded instruments Affecting the title to a piece of land. This can be sometimes confused with the chain of title, which only shows a record of ownership of the property. Evidence of title is the documentary proof of a good title to the property, while the certificate of title does not involve an abstract at all.
An easement by necessity is, as the name states, NECESSARY for another person to enter his own land by going through another's property. Appurtenant easements are those for adjacent properties or neighbors, which run with the land; an easement in gross is the opposite of an appurtenant easement; and a license isn't an easement at all.
An easement in gross is not created for the benefit of the land owned by the owner of the easement, but that attaches personally to the easement owner. Don't confuse this with the other types of easements - easement by condemnation, in which the property is acquired for PUBLIC purpose; an easement by prescription, which is acquired by continuous, open and hostile use of another's property over a period of years; or an easement by necessity, which is necessary for another to enter and exit his own property.
The due-on-sale clause is also known as an alienation clause or resale clause, and says that the balance must be paid in full if the property is sold. Don't confuse this term with an acceleration clause, which makes the whole debt due if the borrower defaults; a satisfaction, in which the debt is paid in full on a mortgage, or an estoppel certificate, which is not a clause at all but a document in a mortgage.
The acceleration clause allows the lender to move up the date when the entire sum is due. Don't confuse this with the due-on-sale clause (which is the same as an alienation clause), which says that the balance must be paid in full if the property is sold; or a satisfaction, in which the debt is paid in full on a mortgage.
The remainder estate is that which is left from a life estate. Don't confuse this with reversionary interest, which is the future interest that reverts to a grantor or his heirs, or reversionary right, which is the return of the rights of possession of the property to the lessor at the end of a lease. Right of survivorship doesn't involve leases at all, but joint ownership. Reversionary rights REVERT back to the lessor at the end of the lease. Don't confuse this with reversion, which is the PROCESS by which the remnant reverts to the grantor; reversionary interest, which is the future interest that reverts to a grantor or his heirs; or remainder estate, which is that which is left from a life estate.

Covenant of quiet enjoyment basically means that the grantee has the right to enjoy his property without being challenged. Don't confuse that with other "covenants" covered in these courses - the covenant of seisin, in which the grantor warrants that he is the owner of a property and has the right to convey it ; the covenant of further assurance, which tells the grantee he has what he needs to make the title good, or the covenant against encumbrances, which offers protection against encumbrances.

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