Chapter 7-8 Key Concepts Flashcards Preview

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Flashcards in Chapter 7-8 Key Concepts Deck (29):
1

Nature of property

  • Land refers to the surface of the earth and items attached by nature
  • Real estate includes land and all human-made improvements
  • Real property includes real estate plus the legal bundle of rights

2

Physical Components (rights) of land

  • Surface
  • Subsurface
  • Air

3

Surface rights

Include water rights

  • Riparian - associated with land abutting the banks of a river, stream, or other watercourse
  • Littoral - assocaited with land abutting tidal bodies of water, such as an ocean, sea, or lake

4

Subsurface rights

Consists of an owner's right to underground minerals, petroleum, and natural gas, referred to as mineral rights.

5

Definitions associated with water rights

  • Accretion
  • Alluvion 
  • Erosion 
  • Reliction 

6

Accretion

 The process of land build-up from water-borne rock, sand, and soil

7

Alluvion

 The resulting new deposits of land caused by accretion

8

Erosion

The gradual loos of land due to natural forces

9

Reliction

The gradual receding of water, uncovering additional land

10

Personal Property (chattel)

  • Anything that is not real property
  • Real property becomes personal property by act of severance

11

Fixtures

Were personal property but have been permanently attached to and made part of real estate

12

Test to decide if an item is a fixture

IRMA

  • I      Intent of the parties
  • R    Relationship between the parties
  • M    Method of Annexation
  • A    Adptation of the article  

13

Bundle of Rights

Real property ownership rights (DUPE) include the right of

  • D     Disposition (right to sell or give away)
  • U     Use (right to control)
  • P     Possession (right to occupy)
  • E     Exclusion (right to quiet enjoyment)

14

Freehold estates

estate of ownership

  • Fee simple (absolute) estate is the most comprehensive estate and it is inheritable
  • Life estate is measured for a person's lifetime
    • Estate in reversion occurs when property returns to the grantor (pervious owner)
    • Remainder estate occurs when property goes to a 3rd party known as a remainderman
  • The remainderman owns a remainder estate while the life estate exists
  • The remainderman acquires a fee simple estate in severalty, or if there is more than 1 remainderman, the remaindermen acquire some form of concurrent ownership

 

15

Nonfreehold estate (leaseholds)

Have a known duration and do not involve and onwerhsip interst

  • Grants the right to use and possess (but not own) real property
  • Under a lease, the tenant possess a leasehold estate, and the landlord (property owner) possesses a reversion estate
  • At end of a leasehold estate, possession and use of the property reverts to the property owner
  • Estate for years is a written lease agreement with a specific statrting and ending date
  • Tenancy at will is a lease agreement that has specific beginning date but no fixed ending date
  • Tenancy at sufferance occus when the lease period has ended and the tenant is a  holdover

16

Sole ownership

Occurs when title to property is held by one person

an estate in severalty

17

Co-ownership

Means title to the property is shared by 2 or more persons (concurrent ownership)

  • Tenancy in common
  • Joint Tenancy
  • Tenancy by the entireties

18

Features of tenancy in common

  • 2 or more people
  • Undivided possession
  • Interest equal or unequal percentage
  • Take title at same time or different times
  • Heirs inherit (no right of survivoship)

19

Features of a joint Tenancy (PITTS)

  • P     Each joint tenant has undivided   Possession
  • I      Each joint tenant has equal Interest
  • T     Joint tenants take title at the same Time
  • T     Joint tenants are anmed on the same Title
  • S     Must expressly state right of Survivorship

20

Features of tenancy by entireties

  • Husband and wife take title together
  • Undivide possession
  • Right of survivorship
  • Same title, same time
  • Only available to husband and wife

21

Homestead benefits and protections

  • Protection from forced sale for certain debts
  • Up to $50,000 tax exemption
  • Size restriction of one-half acre inside of a city or 160 acres outside a municipality
  • Protection of the family (if a married person dies and teh family homestead was titled in the deceased person's name only, by operation of law, the surviving spouse receives a life estate and the children [lineal descendants] receive a remainder estate). If no children, surviving spouse receives a fee simple estate in survivor's name only (in severalty)

22

Elective share (Homestead)

Provides protection of a surviving spouse who has been excluded form the deceased spouse's will

  • Elective share consists of 30% if the net estae of deceased spouse
  • Surviving spouse also receives homestead property and property owned by couple as teantns by the entirety

23

Cooperative

Organized as a corporation

  • Corporation holds title to the land and improvements
  • Owners purchase share of stock
  • Proprietary lease entitles purchaser right to occupy the unit
  • Contract for purchase of a cooperative unit must include disclosure of buyer's right to cancel

24

Condominium

Consists of condo units and common elements

  • Individual owns a unit exclusively and also an undivided fractional share of the common elements
  • Deed convays ownership

25

Condominium Douments

  • Declaration of condominium contains legal descriptions of the units and once recorded creates the condominium
  • Articles of incorporation of the assocaition create the corporate entity responsible for operating the condominium
  • Bylaws of the association describe operational requirements and provide for the administration of the association
  • Frequently Asked Questions and Answers (FAQs) inform prospective purchasers about restricitons on the leasing of a unit, information concerning assessments, and whether the unit owners or the association are obligated to pay rent or land-use fees for recreational facilities
  • Estimated operating budget details estimates of various common expenses that are to be shared by the unit owners

26

When are Developers required to file the condo docs with the Division of Florida Condominiums, Timeshares, and Mobile Homes?

Developer is required to file the condo docs with the Division of Florida Condominiums, Timeshares, and Mobile Homes prior to offering units for sale.

  • If there are 20 or more new residential units, the developer must prepare and file a prospectus
  • Prospectus must be given to prospective purchasers

27

Condominium disclosures - new residential units sold by developer

  • Prospectus
  • Estimated operating budget
  • Declaration of condominium
  • Articles of incorporation
  • Bylaws
  • FAQ

28

Condominium disclosures - resale units (private party sales)

  • Most recent year-end financial report
  • Rules of the association
  • Declaration
  • Articles of Incorporation
  • Bylaws
  • FAQ
  • Governance form

29

Time-share owners

  • Interval ownership is fee simple ownership
  • Right-to-use is a leasehold interest