Chapter 12 Real Estate Contracts

When studying for the real estate exam, we learn that a fee simple absolute estate is the maximum degree of property ownership one can have. But nothing is truly absolute! Even fee simple absolute ownership has its limitations, like taxation. That’s because the government retains some rights over your property through the 4 government powers- and you’ll need to know these for the exam.

Government Powers

The Sherman Antitrust Act is a landmark federal act passed by Congress in 1890. The core principle of the Sherman Antitrust Act is to ensure healthy and fair free-market competition. Let's review the different types of antitrust violations: price-fixing, group boycotting, market allocation and tie-in agreements.

Sherman Antitrust Act

Specific Performance

It might seem obvious to us now that no one should be discriminated against when trying to buy a house, but that wasn't always the case. It took many federal acts to finally provide legal protection against discrimination. To pass the real estate exam, you must know what these acts are and who they protect. As a real estate agent, you must understand the federal fair housing laws and apply them in real-life practice.

In this segment we go over:
- The Civil Rights Act of 1866
- The Supreme Court case Jones versus Alfred H. Mayer Company
- The Fair Housing Act of 1968
- The Americans with Disabilities Act (ADA)

Federal Acts Related to Fair Housing

Different Types of Easements

A life estate is the ownership of land for the duration of a person's life. In legal terms, it is an estate in real property that ends at death, when ownership of the property either reverts to the original owner or passes to another person.  

Let’s explain this using the story of a life estate, creatively modified so that you can pass your exam.

Life Estate Explained

What is the Secondary Market?

Warranty Deeds Explained

Bargain And Sale Deeds

Who is Giving and Who is Receiving? The -OR -EE Rule

Real Estate Exam Prep: Videos, Practice Exams, Audio Lessons, Private Lessons, and more!

What is the Secondary Market?

PrepAgent

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