PA Real Estate cheat sheet

The bundle of rights includes possession, use, enjoyment, exclusion, and disposition; government limits are police power, eminent domain, taxation, and escheat.

Freehold estates include fee simple absolute, defeasible fee, and life estate; leaseholds include estate for years, periodic tenancy, tenancy at will, and tenancy at sufferance.

Tenancy in common gives co-owners undivided interests with no survivorship; joint tenancy requires four unities and includes survivorship; tenancy by the entirety is for spouses in Pennsylvania.

An easement appurtenant benefits a dominant parcel and burdens a servient parcel; an easement in gross benefits a person or entity rather than a parcel.

A general warranty deed contains covenants of seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurances; a quitclaim conveys only the grantor's interest.

Pennsylvania's recording statute protects a subsequent bona fide purchaser without notice who records first; unrecorded interests may be cut off.

Real estate contracts must satisfy the Statute of Frauds: writing, signature of the party to be charged, essential terms, and a sufficient property description.

Federal fair housing protected classes are race, color, religion, sex, national origin, familial status, and disability; Pennsylvania adds ancestry, age, and use of a guide or service animal.

The State Real Estate Commission, within the Department of State, administers the licensing act, issues licenses, and imposes discipline including fines, suspension, revocation, and additional education.

Salesperson applicants must be at least 18, have a high school diploma or equivalent, complete 75 hours of approved education, pass the exam, and be sponsored by a licensed broker.

Broker applicants must be at least 21, complete 240 hours of approved education, have three years of full-time experience as a salesperson or equivalent, and pass the broker exam.

Licensees must complete 14 hours of continuing education each biennial renewal period, including Commission-required mandatory topics.

The Consumer Notice explains agency relationships and must be given at the first meeting or before confidential information is disclosed; agency agreements must be in writing.

A transaction licensee assists both parties without representing either; duties include honesty, accounting, and disclosure of known material defects.

Dual agency requires written informed consent from both parties; designated agency lets the broker assign different licensees to each side.

Sellers of most residential resale property must deliver a Seller's Property Disclosure Statement before the buyer signs; new construction, estates, and some foreclosures are exempt.

A broker must place trust funds in a separate escrow account, keep records, and avoid commingling; commissions may be paid only to licensed brokers, not unlicensed persons.

Commission equals sale price times commission rate; seller net equals sale price minus commission, closing costs, and loan payoff.

LTV equals loan amount divided by the lesser of sale price or appraised value; down payment equals purchase price minus loan amount.

One discount point equals 1% of the loan amount; points are paid at closing and typically raise the lender's effective yield.

Proration for annual taxes equals annual tax times days owned divided by 365; monthly rent proration commonly uses monthly rent times days occupied divided by 30.

Area: 1 acre equals 43,560 square feet; 1 section equals 640 acres; 1 township equals 36 sections, or 23,040 acres.

Cap rate equals net operating income divided by value; value equals NOI divided by cap rate; NOI excludes debt service, depreciation, and capital improvements.

Gross rent multiplier equals price divided by gross monthly rent; value equals GRM times gross monthly rent.

Monthly amortization payment equals principal times [i(1+i)^n] divided by [(1+i)^n minus 1], where i is annual rate divided by 12 and n is years times 12.

Property tax equals assessed value times millage divided by 1,000; Pennsylvania assessment appeals often apply the common level ratio to the assessed value.