CHP 54 - Land Brokerage Flashcards Preview

KY Real Estate Salesperson > CHP 54 - Land Brokerage > Flashcards

Flashcards in CHP 54 - Land Brokerage Deck (13)
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1
Q

Primary Features that determine land utilitly

A
water availability
Soil quality
Terrain
Topography
Climate
Vegetation
Elevation
Minerals
Configuration
2
Q

Primary locational factors that determine the value of a particular site

A
Community
Demographics
Linkages and Access
Transportation Systems
Infrastructure
Utilties
Amenities
3
Q

Major governmental influence on land use and value

A

Power to zone

Taxes

Environmental regs

Title restrictions

4
Q

Land trasaction types

A

Straight Sale
Installment Sale
Exhange

5
Q

Land Lease transaction types

A

Land lease

Sale/leaseback

6
Q

Straigth sale

A

motivated by investments concerns usually cash or cash-to-loan sale of fee simple interest

7
Q

Installment sale

A

In return for incremental pymts, fee interest is transferred across several tax years

8
Q

Exchange

A

A section 1031 exchange allows principal to defer tax obligations resulting from sale

9
Q

Land lease

A

Land owner laeses land and tenant builds and owns their improvements

Landowner keeps ownership and receives income

Tenant deducts las expenses, depreciates improvements and can sell improvements at end of lease

10
Q

Sale/Leaseback

A

Owner/User sells undeveloped land to landlord/developer who develops it and leases it back

User gains tax advantage of being able to expense lease payments

11
Q

Rights leases

A

Interests and rights (water, mineral, farming) are unbundled from fee simple interest in land and leased separately.

Buyer typically pays less than mkt value and pays in fees, royalties or lease pymnts

12
Q

GOv’t use falls within this category of land use….

A

Commercial and industrial

13
Q

How does option contract benefit a land developer

A

It allows option holder to control a parcel for minimum cost and risk while putting project together

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