Ch. 1- Real Estate And Real Property Flashcards Preview

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Flashcards in Ch. 1- Real Estate And Real Property Deck (13):
1

Capital Gains Tax Exclusion

Homeowners are entitled to when they sell their primary residence for a gain after having lived in the home two of the five years immediately proceeding the sale

2

Tax Deduction

1. Real Estate Taxes
2. Mortgage Interest payment on 1st & 2nd homes
3. Certain Loan origination Fees in the year of purchase
4. Loan discount points in the year of purchase
5. Loan prepayment penalties

3

Home-Owners Insurance, Co- Insurance Clause

1. Intended to keep premiums at 80% or higher
2. If your coverage is less than 80%, you do not get full claim
3. 80% and above coverage you get the full claim

4

Legal Test of as Fixture

1. Method of Attachment
2. Adaptation of Real Estate
3. Agreement (Most Important)

5

Physical Characteristics (PIN)

Performance, Immobility, Nonhomegeneity (Uniqueness)

6

Economic Characteristics (SLIP)

Scarcity
Location
Improvement
Performance of Investment

7

Two Characteristics of Real Estate

Physical and Economic Characteristic

8

Trade Fixture

Personal property of a business, when attached remains personal property

9

Fixtures

Personal Property becomes part of Real Property

10

Real Property

Bundle Legal of Rights

11

Real Estate

Land at, above and below the Earth Surface, plus all things Permanently Attached to it

12

Land

Earth's Surface, extending downward to the center of the Earth and extending upward

13

Five Types of Real Property

Residential
Commercial
Industrial
Agricultural
Special Purpose