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1. Social Science
2. Law
3. Civil Law
Illinois Real Estate Exam
Terms in this set (414)
Original
Commissons Equation
Sales Price x Commision Rate= Total Comissions
Net to Seller
= Sales price x (100% - Commission rate)
Net to Seller 80k, Commission Rate 7%
$80,000 / (100-7%=.93) = $86,021.51
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Loan Interest
loan balance x interest rate= annual interest
%
loan 275k , 4.75% interest rate how much will seller pay anually?
Basic Mortgage Qualifying
Loan amount x orgination % = orgination fee
125,000 X 1% orgination = $1250 orgination fee
LTV
loan amount/property value
bank will lend 112,500 for a 125,000 appraised property what is the LTV?
112,500/125,000=.9=90%
One Acre
43,560 square feet
One mile
5280 feet
Cap Rate
NOI/Property Value
1 square mile
640 acres
1 section
1/36 township
Quitclaim Deed
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A conveyance by which the grantor transfers any interest in property without any warranty of title or
interest.
Right of Survivorship
Upon the death of a joint tenant or tenant by the entirety the interest does not pass to the tenant's
heirs but to the other join tenant
(joint tenants)
Dominant Tenement
Property that receives the benefit of an appurtenant easement.
Benefits from the Servient Tenement
Special Warranty Deed
A deed in which the grantor warrants, or guarantees, the title only against defects arising during the
period of his or her tenure and ownership of the property and not against defects existing before that
time, generally using the language, "by, through, or under the grantor but not otherwise."
Severence
Changing and item from Real Property to Personal Property by detaching it from the land (cutting
down a tree, removing a front door)
Apple becomes personal property once picked and wheat crop becomes personal property once
harvested
Straight Loan
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A loan in which only interest is paid during the term of the loan, with the entire principal amount due
with the final interest payment. (also a term loan, interest only loan, non amortized)
Fee Simple Defeasible Estate
An estate which may be lost on the occurrence or nonoccurrence of a specified event.
two categories: fee simple determinable (on a condition precedent) and fee simple on condition
subsequent
fixture
An item of personal property that has been converted to real property by being permanently affixed to
the realty.\
Legal Tests: Method of Attachment, Adaptation to real estate, Agreement
General lien
The right of a creditor to have all of a debtor's current and future property for the next 10 years - both
real and personal - sold to satisfy a debt. Example: judgment lien.
General Warranty Deed
A deed in which the grantor fully warrants good, clear title to the premises. Used in most real estate
deed transfers, a general warranty deed offers the greatest protection of any deed.
Granting Clause
Words in a deed of conveyance that state the grantor's intention to convey the property at the present
time. This clause is generally worded as "convey and warrant"; "grant"; "grant, bargain, and sell"; or
the like.
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( is required for a valid deed in illinois, needs signature of grantor)
Blanket Loan
One loan secures multiple properties
Package Loan
A real estate loan used to finance the purchase of both real property and personal property, such as
in the purchase of a new home that includes carpeting, window coverings, and major appliances.
Joint Tenancy
A form of concurrent ownership, which occurs when two or more persons own a single estate in land,
with right of survivorship. Must have equal shares, right to partition.
If one of them dies, the interest is given to surviving joint tenant or tenants by the right of survivorship
Possesion, Interest, Time and Title (PITT)
Tenants in Common
A term that describes co-ownership of property carrying no right of survivorship.
Tenants have undivided fractional interest, unlike joint tenants, they have no right to inheritance (fee
simple estate, condo)
Tenancy by the Entirety
The joint ownership, recognized in some states, of property acquired by husband and wife during
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marriage. Upon the death of one spouse, the survivor becomes the owner of the property.
Conditional Use Permit
is usually granted to property owner to allow special use of property defined as an allowable
conditional use, within the zone such as a day care center in a residential district
Nonconforming use
A use of property that is permitted to continue after a zoning ordinance prohibiting it has been
established for the area. (grandfathered in)
Variance
Permission obtained from zoning authorities to build a structure or conduct a use that is expressly
prohibited by the current zoning laws; an exception from the zoning ordinances.
Provide relief
Vendor
the party which holds legal title to a parcel of land when an installment contract is entered into
Mortgagee
a lender in mortgage loan transaction
recipient of payment
Mortgagor
A borrower in a mortgage loan transaction.
Sales Price
Net to seller/ (100 % - Commission rate)
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Add closing costs, loan payoff to the check recceived if stated in question
Ex: seller received 125,000 after paying 50,000 in closing costs and a loan payoff of 100,000
125,000+50,000+100,000=275,000 and commission rate is 5%
275,000/.95= $289, 473.68
9 square feet
1 yard
Annual Taxes
Assessed Property Value x Mill Rate/ 1,000
deficiency judgement
A personal judgement levied against the borrower when a foreclosure sale does not produce
sufficient funds to pay the mortgage debt in full.
Lessee
tenant
Lessor
landlord
encroachment
intrusion on a person's territory, rights, etc.
Novation
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Substituting a new obligation for an old one or substituting new parties to an existing obligation. Joe
and Mary enter into a contract with John and sue get sent out of state, cousin Donald is interested in
property joe and Mary enter into a contract with Donald. Substitution of contracts.
Assignment
transfer of interest. Substitution of parties.
Offeree
A person to whom an offer is made
Offorer
the person who makes the offer
Alienation Clause
A provision in a mortgage requiring full payment of the debt upon the transfer of title to the property,
due on sale. Prevents loan assumptions.
lender may do this if the original interest rate is low
Fee Simple Determinable
A fee simple estate qualified by a special limitation. Language used to describe limitation includes the
words so long as, while, or during.
Taxes that have been prepaid by the seller will show on a settlement statement as
credit to the seller debit to the buyer
Defeasance clause
