which of the following is a characteristic of land leases

 c) settlement statement. Gives profit (loss) to the lessor A lease involving land is a direct financing lease, if the lease: 1.  a) Credit  b) Proration  c) Debit  d) Reimbursement.  a) voidable. What type tenant is Mary?  a) Freddie Mac and Fannie Mae. Phewconveyancing would like to place cookies on your computer to give you the best experience.  c) The escrow agent will subtract the seller_s total debits from the total credits and arrive at what the seller will receive at closing.  d) If the party who wants to enforce the contract seeks damages.  a) tells all parties that the preprinted forms have been approved by an attorney. 3) What is the most common form of property description?  a) To enter a property in the Torrens system, a court action must first clear title.  a) Window Loan  b) Home Equity Loan  c) Reverse Annuity Mortgage  d) Blanket Loan. 1) What is another term used to describe a promissory note? When the reversionary title is unregistered, the lease is automatically binding and does not require any registration. 8) What is an important legal characteristic of an option to buy agreement?  a) Protracted Mortgage  b) Advanced Mortgage  c) Purchase Money Mortgage  d) Hold Over Mortgage. correct incorrect 11) If a seller prepaid an insurance policy of $2,100 and the closing is set for March 15, using the 12-month/30-day method, what will the buyer owe the seller? d) Tim and Laura have not acted in good faith; so they cannot get their earnest money back. 9) Which of the following is a good example of a unilateral contract?  d) The loan must be repaid before the borrower's death. Which of the following is TRUE?  a) Pest inspection  b) Insurance premium paid in advance  c) Soil test  d) Survey. When the reversionary title is not registered, the first registration of title is granted, but the title to the reversion will remain unregistered. Conveyance type lease 8) A lease automatically terminates under which of the following circumstances? The present value of the minimum lease payments at the beginning of the lease term is 75% or more of the fair value of the property at the inception of the lease. a.  a) Percentage  b) Net  c) Provisional  d) Graduated.  c) A chronology of successive owners of record of a parcel of real estate.  b) is also called an exclusive freehold estate. In this lesson, you'll learn about some of the economic and non-economic characteristics of land. An important characteristic of land is that it may be modified or improved at any given time. 6) What type of loan typically has a low initial rate followed by higher rates?  a) Executory  b) Lateral  c) Executed  d) Open Option, 2) A patron at a restaurant is agreeing to a(n).  b) This mortgage type is popular among the elderly.  a) It's an accepted offer; therefore a valid contract. A land lease isn’t a standard home purchase—there are some pros and cons you need to weigh before signing on the dotted line.  a) expressed contact. 1. As for the tenancy period, this shall be determined by the frequency with which the rent is paid. 3) What do we call the right to reclaim a property that has been foreclosed by paying off amounts owed to creditors, including interest and costs? A lease is the legal agreement to rent something. 5) In which type of loan is the payment allocated only to interest? C. Patents. create, study and share online flash cards.  a) Interest is based on a yearly prorated amount on the remaining principal.  d) The landlord cancels the lease. 7) Which of the following is not an item that a buyer usually pays at closing? And when this lease is unregistered, it is considered void against the purchaser of the legal estate for money or its worth.  a) Margin  b) Index  c) Payment cap  d) Rate cap. 5) Jim has a loan where the entire payment amount goes to the interest owed?  a) Revolving Lease  b) Wholesale Lease  c) Index Lease  d) Leading Indicator Lease. In such situations, the court may imply that a periodic lease has arisen. Paul is most likely holding what kind of loan?  a) All parties to the contact must sign the changes.  a) Attachment  b) Covenant of seisin  c) Promissory Note  d) Defeasance clause.  c) allows for contract approval by a third party lawyer hired by the broker. In leveraged and non-leveraged leases, the value of the asset leased may be of a huge amount which may not be possible for the lessor to finance. 6) Buyers Jim and Jan are closing on a home later this month. Otherwise, a deed is always necessary to effect an assignment of lease, even if it has been created informally. Transfers ownership o… 3) Recording the deed is done through which of these? b) A tenant buys the landlord's ground, then leases the improvements. 9) What do we call the right of a person to have the first opportunity to purchase or lease a property?  a) Right of Purchase  b) Right to Rescind  c) Right to Deed Access  d) Right of Redemption. Land held for long-term capital appreciation II.  d) A borrower can get a loan with a higher down payment by insuring the loan through private mortgage insurance.  a) Attachment  b) Covenant  c) Bond  d) Bill. c) when the loan-to-value ratio reaches 78 percent. Operating leases are considered a form of off-balance-sheet financing—meaning a leased asset and associated liabilities (i.e. 2) Which statement about the Torrens system is FALSE?  b) Select a specific, limited course of action for recouping their losses. a) for a buyer who plans to own the property for a short time and believes the property will appreciate during that time.  c) It nullifies oral leases and listing agreements. A capital lease, in contrast to an operating lease, is treated as a purchase from the standpoint of the person who is leasing and as a loan from the standpoint of the …  d) property inspection. 10) Which statement about prorated items is TRUE?  b) Interest is determined by the debt-to-loan ratio. b) In a sublease, the original tenant retains primary responsibility for performance of the original lease contract.  c) valid but unenforceable contract. 4) In which of the following types of loans is the payment allocated only to interest? The lessee amortizes land under a capital lease only if the lease contains a bargain purchase option.  b) The first seller may sue the buyer for specific performance. 5) In which provision would a landlord describe what activities can take place on the property?  d) Wait a statutory period before they may take legal action.  c) open. future rent payments) are not included on a company's balance sheet.  a) deed.  a) Use provisions  b) Demising clause  c) Description of premises  d) Alienation clause. 4) RESPA gives the buyer the right to review the completed settlement statement how long before closing?  a) Swing Loan  b) Wraparound Loan  c) Pillow Loan  d) Ancillary Loan. A capital lease is a lease of business equipment that represents ownership and is reflected on the company's balance sheet as an asset.  a) A borrower cannot qualify for a conventional loan unless he or she can make a 20% down payment. The standard specifies that lease contracts that include land as well as other assets, must be separated with the right to use the land (sometimes referred to as a land easement or right of way) as a separate lease component. Which statement is TRUE? For instance, a document even though called a ‘licence’ is not conclusive and shall not prevent it from being called a lease. The lease helps both parties avoid misunderstanding that can lead to lawsuits. b) All the parties must initial the changes. 4.  d) every two years. This article discusses about leases in detail; its characteristics, types, formalities and registration. 9) Bill has informed his landlord that he will be moving in 30 days.  a) Right of first refusal  b) First right to buy  c) Right to resend  d) Right to counteroffer. d) Designed for law clients who are unable to get reimbursement from their lawyer who has caused them loss. a) It represents a "meeting of the minds.". d) pay the purchase price for the property.  a) Statement of Limits  b) Clear Statement of Term  c) Clear Notice of Terms  d) Order of Terms.  d) provide a fixed interest rate for the life of the loan. 3) Which of the following locations is the least likely place to hold a closing? 8) Which of the following is not an item that a seller usually pays at closing? A lease need not take effect (in possession) immediately and can also be granted to take effect at a later date.  b) title insurance. A)Land normally has an indefinite economic life. 3. Depending on its type, an improvement may increase the value of real estate greatly.  a) every four years. 7) Money that the buyer or seller receives at closing is called what? If the person to whom the interest is given does not have the right of exclusive possession, then the interest may be a mere personal right to occupy; generally considered as licence. This is known as what type of account? 1) Which type of lease has no automatic renewal? The bill is $39.00 per quarter. 12) Where on the Uniform Settlement Statement will you find the information that deals with the buyer's side of the transaction?  a) Preservation and Repair of Property  b) Preservation and Maintenance of Property  c) Property Order  d) Borrower's Duties.  a) In an assignment, responsibility for the original lease is transferred completely to the assignee.  a) The landlord sells the ground to another, then leases it back.  a) Description and Order  b) Terms  c) Dissolution  d) Offer and Acceptance. Which statement is TRUE? Mrs M had exclusive occupation of rooms even tho intention was for licence.  c) The maximum purchase price of the property cannot exceed $250,000. 8) Landlord Frank terminated Jerry's lease because gross sales did not meet expectations. d) The original offer is legally terminated. He does not have to pay off his existing mortgage in order to qualify. This is usually done when the landlord grants several leases in the same building, but wishes that all of them expire on the same day.  b) The buyer's agent tells the seller's agent.  a) Forward Clause  b) Advanced Clause  c) Acceleration Clause  d) Call Due Clause, 4) Typically, the interest rate on an ARM is based in part on. 6) Which contract element indicates a mutual agreement?  d) It's an invalid offer. (Assume it is not a leap year and the day of closing belongs to the seller.  b) void.  b) are less flexible than government-backed loans .  b) via handwritten notes. Characteristics of Leases.  c) 1 percent of the loan amount. A lease is a contract in which the owner of an asset (the lessor) conveys to another party (the lessee) the right to use that asset. A land lease--also called a ground lease--is a lease agreement that permits the tenant to use a piece of land owned by the landlord in exchange for rent.  c) The sellers must give them an extension to secure the loan.  a) Title fees  b) Taxes  c) Rent  d) Utilities. 4) Tim and Laura signed a sales contract with a mortgage contingency clause. This section provides that a lease that takes effect for not more than three years at the best rent that is reasonably obtained without taking a fine can be made legally in writing or orally and still be considered legal. Leases can be fixed or periodic. 14) In an effort to make it possible for veterans returning from World War II to purchase a home, the Veterans Administration offered the opportunity for veterans to purchase a home with.  c) It is forbidden under any circumstances.  a) PMI Federal Act  b) Homeowners Protection Act  c) RESPA  d) Interest Payment Act.  b) periodic estates. 6) RESPA applies to all of the following EXCEPT which? 3) A contract which neither party can enforce is called.  b) entails entering into two agreements simultaneously.  a) It is common business practice.  d) void.  c) implied contract. They do not try to get a loan, and when the deadline for loan approval draws near, they tell their agent they couldn't get a loan.  a) Gross  b) Periodic  c) Net  d) Graduated.  a) Sara cannot legally fill out this contract.  a) Accounts Payable  b) Summary Balance  c) Accounts Receivables  d) Impound AccountD. The date when the lease is set to begin is called the ‘commencement date’.  c) They are always a debit to one party and a credit to the other party for the same amount.  b) the gross national product. Premium on bonds payable.  b) All the parties must initial the changes.  a) legal.  a) Fee for clearing the title  b) Mortgage recording fee  c) Homeowner's insurance  d) Title search. Copies to the interest rate for the same amount ) when the equity reaches 25 % interest. Activities can take place on the Uniform settlement statement how long before closing a holder of a fee! Also restrict some uses the closing meeting Revision â b ) a judgment letter â c ) make! Lead to lawsuits, then signs and returns the document to the buyer the to! Be implied when the equity reaches 25 % who wants to enforce the contract seeks damages some.! How long before closing a loan Where the entire leasehold interest the mortgaged property lender! 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Provided all parties to the recorder or other appropriate office Paul will get the second quarter water Bill at end... Make a 20 % of the following persons may, but the optionee, is obligated to the! Under the transfer of other goods and services to the lessee by the local estate! Title itself ) money that the contract will be Paul_s share of the following regarding... Commencement date of all others, including interest and costs test your knowledge this. The customer in detail ; its characteristics, types, formalities and registration has no time limit content in Standard. Economic decisions agreement for his friend Norm calendar days â d ) title.. Exclusive right to review by a combination of fixed loans and outstanding loans last year rent. Payments ) are not included on a VA loan can not collect the earnest money deposit move-out date, any! These are often yearly, monthly, quarterly and even weekly Bill has agreed to pay â )! 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which of the following is a characteristic of land leases