1–10: Property Law Basics
What is property? Define and give an example of real property and personal property.
Answer: Real property refers to land and immovable structures. Personal property is movable items.
What is a deed?
Answer: A legal paper that transfers ownership of real property from one party to another.
What is title insurance, and why is it important?
Answer: To protect against defects in the title- for example, liens or ownership disputes-between buyers and lenders.
Read Also:
- https://insightfullawhelp.com/20-must-know-property-law-questions-for-buyers-and-sellers/
- https://insightfullawhelp.com/30-property-law-myths-debunked-by-legal-experts/
- https://insightfullawhelp.com/25-property-disputes-explained-questions-and-answers/
What is a property lien?
Answer: A legal claim against a property used as collateral for a debt.
What is a property easement?
Answer: A right allowing someone to use another’s property for a specific purpose, like access or utilities.
What is a property survey?
Answer: A detailed map showing property boundaries, structures, and potential encroachments.
What is a zoning ordinance?
Answer: Local laws regulating land use, such as residential, commercial, or industrial purposes.
Can zoning laws be modified?
Yes-through rezoning requests or variances-local government approval is necessary.
What is an HOA (Homeowners Association)?
Organization managing a residential community, enforcing rules, and collecting fees for maintenance.
What are the main types of property ownership?
Sole ownership, joint tenancy, tenancy in common, and tenancy by the entirety.
11–20: Buying and Selling Real Estate
What is an earnest money deposit?
Answer: A deposit representing the buyer’s good faith showing that the money is in escrow until the closing.
What contingencies are included in a real estate contract?
Answer: Financing, inspections, appraisals, and clear title.
What occurs during a closing?
Answer: Transfer of ownership, signing of documents, and exchanging funds.
What is a short sale?
Answer: The selling of a property for less than the remaining balance of the mortgage, usually required to be approved by the lender.
What is a real estate escrow?
Answer: A neutral third party holding funds and documents until transaction terms are met.
What is a “For Sale By Owner” (FSBO) sale?
Answer: When a homeowner sells property without a real estate agent.
What is a seller’s disclosure?
Answer: A document detailing known property defects and issues, required in many states.
Can a buyer back out after signing a purchase agreement?
Answer: Yes, if contingencies aren’t met; otherwise, penalties may apply.
What is a deed of trust?
Answer: A document securing a loan with the property as collateral, involving a trustee.
What is an “as-is” sale?
Answer: The property is sold in its current condition, with no obligation for repairs.
21–30: Landlord-Tenant Law
What is a lease agreement?
Answer: A contract outlining terms for renting property, including rent, duration, and responsibilities.
Can a landlord increase rent mid-lease?
Answer: Not without tenant agreement or if allowed by the lease terms.
What if a tenant breaches the lease?
Answer: Tenants can lose deposits or be liable for damages according to the terms of the lease.
What is a security deposit?
Answer: It is the money held by the landlord for any damages or unpaid rent.
Can landlords evict tenants without notice?
Answer: No, the eviction needs to have proper notice and legal processes in place.
What is the tenant’s right to quiet enjoyment?
Answer: The right to use property without interference from the landlord.
Can landlords enter rented property without permission?
Answer: Only with proper notice or in emergencies, according to state law.
What is a lease option?
Answer: A lease contract that allows the tenant to buy the property.
Who is responsible for repairs on a rental property?
Answer: Generally, the landlords are responsible for major repairs. The tenants make minor repairs unless otherwise agreed upon.
What is subleasing?
Answer: When a tenant rents out their leased property to another party, subject to the lease terms.
31–40: Investing and Legal Considerations
What is a 1031 exchange?
Answer: A tax-deferred exchange of investment properties under IRS rules.
What is a REIT (Real Estate Investment Trust)?
Answer: A company owning, operating, or financing income-generating properties.
What are the tax implications of owning rental property?
Answer: Owners can deduct expenses like mortgage interest, property taxes, and repairs.
What is a foreclosure?
Answer: A legal process where the lender repossesses property due to unpaid mortgage.
Can investors buy foreclosed properties?
Answer: Yes, through auctions, direct purchase from lenders, or short sales.
What is the difference between residential and commercial property?
Answer: Residential is for living purposes, while commercial is for business use.
What are zoning variances?
Answer: Permissions to use property in ways that deviate from current zoning laws.
What is a property flip?
Answer: Buying a property, improving it, and selling it for a profit.
What are capital gains taxes on real estate?
Answer: Taxes on profits from selling a property, sometimes exempting one’s primary residence.
What is property due diligence?
Answer: Researching a property’s history, condition, and legal problems before buying it.