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BUSM 3050 > exam 1 busm 3050 > Flashcards

exam 1 busm 3050 Flashcards

1
Q

LOCATION LOCATION LOCATION

A

all about ACCESS

literal (views, ingress, egress)

figurative (customers, amentities, transportation)

every property is UNIQUE with UNIQUE value

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2
Q

special assessment

A

usually for a condo association

HOA; runs property; BUT if special circumstance, special assessment to pay for it would be divided by owners.

creates and maintains neighborhood infrastructures

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3
Q

effective rent

A

if giving a discount on x months of rent (concessions), the calculated $/psf/yr

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4
Q

personal property

A

movable

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5
Q

sublease

A

tenant transfers a subset of her rights to another

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6
Q

right of survivorship

A

right granted to joint tenancy–> ensures transfer of one owner’s stake to other owner

requires express intent in deed

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7
Q

appraisal

A

developing a value for real property

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8
Q

quitclaim deed

A

no covenants whatsoever

grantee gets what grantor’s got, if anything, but NO PROMISES

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9
Q

township

A

a subdivision of 36 sq mi

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10
Q

leasehold estates

A
  • possessory interests
  • not the highest interest… not a titled interest…
  • always limited duration… always reverts to landlord
  • tenancy for years… definite period ((writing if >1yr (statute of frauds), verbal if <1yr))
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11
Q

servient parcel

A

adjacent parcel to dominant

easement appurtenant

easement on property to dominant parcel

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12
Q

fee simple absolute

A

type of freehold estate
- has all 3 key rights to greatest extent
- FOREVER

and most common

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13
Q

offer and acceptance

A

offer, coutner offer, cant accept first offer must counter offer and accept

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14
Q

inspection

A
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15
Q

dominant parcel

A

possesses a right of use of an adjacent (servient) parcel
–> benefits dominant parcel (driveways, view etc)

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16
Q

appraisal

A

loan approval

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17
Q

license

A

permission -> not a property right (BIG DIFF)
– REVOCABLE (ejection/eviction)
– VERBAL OK
– PERSONAL (terminates automatically upon transfer/death)

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18
Q

Homestead Act of 1862

A

$10 –> US citizen could buy 160 acres of land ; 5 yr ; had to improve it

NOT available to confeds

WAS available to freed slaves

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19
Q

intangible property

A

bundle of rights (nonphysical)

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20
Q

mill

A

1 mill = .1%

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21
Q

real property

A

immovable

(dirt, earth)

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22
Q

types of deeds

A

general warranty

special warranty

quitclaim

all equally effective at conveying property

–legal description(tangible) and habendum clause // exceptions/reservations (intangible) = property conveyed by deed
– diff is only what the grantor promises

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23
Q

declaration of covenants

A

ex: cant paint your house certain color, have to keep up with your lawn

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24
Q

externalities

A

type of spillover effect

(from traffic; noise; light; severely impact neighbors)

–> need for land use regulations controlling impacts

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25
Q

special warranty deed

A

type of deed

covenants limited to claims during period of grantor’s ownership

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26
Q

tenancy in common

A

2+ people share ownership rights in a property/parcel of land

commercial or residential

when a TIC dies; property passes to that tenant’s estate

TIC partners have right to leave share to any beneficiary

contract terms for TIC: detailed in deed, title, other legally binding property ownership documents

undivided interests

owners can sell/lease interest without permission of other owners

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27
Q

marketable title

A

= no problems with title to property (no claims/liens on property)

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28
Q

estoppel certificate

A

statements tenants + landlord will sign that verifies where lease is standing; rent; other things not taken care of

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29
Q

general warranty deed

A

includes (3) covenants
1. seizen= valid title
2. quiet enjoyment (will defend)
3. no encumbrances (no undisclosed rights of others)

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30
Q

flat rents

A

keeping rent flat the entire lease term

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31
Q

easement

A

right to use someone else’s property in some way

road, driveway, utilities
(powerlines that go over property; power company has public utility easement)

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32
Q

easement appurtenant

A

usually a perpetual easement

runs with the land, can be used by others

future owner benefits w sale

properties must be located next to each other for the appurtenant easement to be legal

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33
Q

condemnation

A

legal procedure (due process) for exercising eminent domain

decides fair value + lawful exercise of power

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34
Q

contingencies

A

things that must NOT happen or the contract will be terminated

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35
Q

conditions

A

things that MUST happen for the contract to stand

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36
Q

deed restriction

A

affects only that property

grantor reserves the covenant and holds the right

ex: no alcohol, single family residential use

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37
Q
A
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38
Q

plat lot and block number

A

a way to describe property usually in a subdivison

(lot, block, parcel, etc)

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39
Q

fixtures/personal property

A

fixtures –> once personal property (movable) now real property

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40
Q

real property

A

immovable

fixture is personal property that became real property

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41
Q

personal property

A

movable

(anything I can take with me)

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42
Q

joint tenancy

A

direct ownership

a legal arrangement in which 2+ people own a property together, each with equal rights and obligations

if one owner dies, interest in property -> surviving party, without going thru courts

no inheritability

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43
Q

actual notice

A

a notice given directly to a party

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44
Q

comprehensive plan

A

big picture

projects future growth and demand for various land uses

project needs for public services and infrastructure (streets, schools, parks, police, fire)

set growth boundaries

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45
Q

grantor

A

a grant deed is what transfer title to real estate

“I olivia sell to you paul this property…” recorded and shows transfer.

sells via grant deed

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46
Q

offer and acceptance

A

deed has to have words of conveyance; so does this.

need words of buy/sell

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47
Q

lien

A
  • non possessory interest
  • secures/collateralizes performance of an obligation
    1. general liens: arise from events unrelated to the property and involuntary (ex. judgment liens and income tax liens)
    2. specific liens: arise from ownership and use of the property and either voluntary or involuntary
    – mortgage liens (v)
    – mechanic’s liens (i)
    – HOA liens (i)
    – property tax liens (i)

priority of multiple; 1st in time, 1st in right

48
Q

triple N rent (NNN)

A

commercial lease

lessee pays rents + utilities + INSURANCE, MAINTENANCE, TAXES

49
Q

commissions

A

% of properties purchase price given to agent

50
Q

essential elements of the lease

A
51
Q

remedies

A
52
Q

tangible property

A

everything we can touch

(cars, furniture, goods, appliances)

53
Q

variance

A

where something might not be allowed under the zoning code but you ask or apply for variance

ex: use requires 100 spots per zoning code but only 90, apply for variance to allow that use to go into space still

54
Q

evidence of title

A

official doc. proving someone owns it

– free from reasonable doubts of claims that would impair value

3 types
1) title abstract: w attorney’s opinion (barely used)
2) title commitment/insurance: (insurance policy disclosing who owns what ; insuring against title problems and resulting losses if it’s wrong… widely used)
3: torrens title certificate

55
Q

covenant

A

promise

56
Q

improvements to the land

A
  • infrastructure
  • excavation
  • roads/curbs/gutters/sidewalks
  • utilities
57
Q

restrictive covenants

A
  • non possessory interest (generally no possession at all)
  • private restrictions/obligations intended to minimize negative spillover effects, enhance use/enjoyment and values

common restrictions:
– architectural standards (size, design, materials, colors, height)
– no RVs boats and other toys in view
– control over outside/visible areas generally
– limitations regarding pets and other animals

common obligations
– submit architectural plans for approval
– maintain property
– pay HOA dues and assessments

58
Q

equitable title

A

once contract is signed by both parties ; buyer owns ET (legal title to property)

59
Q

title search

A

examining recorded instruments in public records to construct the “chain of title”

60
Q

exclusive use

A
61
Q

bundle of rights

A

concept that has long been associated with real estate ownership

describes all legal rights that attach to the ownership of real property

including right to
- use
- exclude
- dispose of
- devise by will
- lease
- sell
- encumber
-enjoy

62
Q

zoning

A

used by local govt to map out city

land uses/densities: minimize negative spillover effects
– by use
– by densities within classifications
——- (ex: boulder 5 unrelated adults)

  • boulder zoning map!
63
Q

title company

A

acts as closing agent

64
Q

right of first refusal

A

contractual right giving holder the option to transact with the other contracting party before others can; polanco with neighboring business

65
Q

encroachment

A

someone’s improvements on your property (fence, driveway, building)

66
Q

non-conforming uses

A

pre-existing “grandfathered” uses

must use as what it was

if you buy, must tear it down and recreate

67
Q

manifest destiny

A

idea of settling the entirety of NA

moving westward!

68
Q

property market

A

cfs from user market and required investor returns from capital market determine investment property values

69
Q

chain of title

A

sequence of conveyances passing property rights/interests down through time beginning with first conveyance from sovereign(patent)
– breaks in chain of title (rights leaving main bundle)
– branches in chain title (follow breaks as rights assigned)
– merger (rights returned to main bundle)

70
Q

prorated items

A

either paid in advance or accruing but not yet due (paid in arrears)

71
Q

assessed value

A

% of mv -> used for property tax purposes

72
Q

eminent domain

A

legal right (power) of government to acquire private land without owners consent for public use

requires due process of law + payment of just compensation

73
Q

recording fees

A

when a lien or deed is recorded, county recorders office charges fee

74
Q

gross rent

A
75
Q

tax exempt properties

A

some properties dont have to pay property taxes

(religious, non profit, seniors, govt property)

76
Q

operating costs: who pays? how are they allocated?

A
77
Q

usable area

A

rentable area - public spaces+common areas

78
Q

constructive notice

A

a notice that is on public record to be accessed

79
Q

section

A

= 1 mi sq = 640 acres

what we see from airplanes

80
Q

user market

A

supply/demand for physical space resulting rental rates and housing values

always pressured towards equilibrium

all about supply <-> demand

users need specific types and locations

81
Q

improvements on the land

A

buildings and structures (vertical improvements)

82
Q

planned unit development

A

allows customized zoning/land use per negotiated agreement

commonly used for mixed use projects due to limits of conventional zoning

83
Q

inclusions/exclusions

A
84
Q

class a, b, c office space

A

A: prestigious building; high quality finishes; best location; above avg rents ; not free parking

B: was class A at one point ; not free parking ; does not compete for same tenants/rates as class A

C: older; few amentities ; could be satellite offices ; lots of free parking
below average rents

85
Q

grantee

A

party that gets the property from grantor via grant deed

86
Q

ad valorem taxes

A

tax based on an estimated value

87
Q

US rectangular survey system

A

PLSS

revo war –> expansion to W territories –> efficient means of surveying/conveying lands needed

1785 PA/OH border and surveying W from there (Ohio River West)

principle meridian (NS)
baseline (EW)

range lines (every 6 mi EW of PM)
tier or township lines (6 mi NS of baseline)

each resulting square in the grid…
— township (6mi sq/36sq mi containing 36 secs)
– each township divided into 36 secs (1mile sq=650 acres)

88
Q

deed

A

primary instrument of conveyance for real property interests (fee simple, life estate, etc)

a purchase/sale contract does not convey real property and is not an instrument of conveyance

89
Q

tenant improvement (TI)

A

amount landlord agrees to spend to build out or refurbish the space to meet the needs of the tenants business

(may take care of improvements, may pay directly to tenant, or to contractor on tenants behalf)

90
Q

earnest money

A

deposit at time of an offer to show they are serious

91
Q

raw land

A

vacant, unimproved land

92
Q

capital market

A

supply/demand for $ and resulting required investor returns

forms of capital: equity (owner) and debt (lender)

equity investors return –> property cfs (sales/rent)

debt investors return –> loan payment (principle, interest)

93
Q

acre

A

43560 sq ft

94
Q

settlement statement

A
95
Q

purchase and sale agreement

A
96
Q

leasehold estate

A

holding the right of the lease: property owner defines beginning and ending date

97
Q

metes and bounds

A

sequence of directed distances (metes) describing boundary of a property

establishes true point of beginning is critical

compass directed walk

est by longitude/latitude

point of beginning tells us starting point
first letter (N) tells direction surveyor facing to start
degrees, mins and secs tells how far to turn (degree 1/360th circle; minute 1/60th degree; second 1/60th min)
second letter (E) tells what direction to turn
distance tells how far to go in that direction
again and again until to point of beginning

98
Q

common area maintenance (CAM) charges

A

charged on top of base rent
include: fees for work preformed on common area of property

99
Q

mortgage

A

a lone secured by a property

(house loan: mortgage or a loan on the house if you owe the bank money)

100
Q

property rights

A

real estate = real property (tangible+intangible)

nonrevocable except by nature or due process
(nature= rights may end or be revoked; lease expiration)
(due process= rights regulated by govt in interest of public health, safety and welfare)

101
Q

radius restriction

A

prohibits tenant from opening another store within a negotiated radius
(ex: cant have a mcdonalds 2-3 miles from this one)

102
Q

condominium

A
  • units owned separately by owners
  • demising walls/ceiling/floor
  • air rights!
  • common elements (everything outside units) owned as tenants in common by all unit owners
  • owners/lenders dont love condos
103
Q

fixture

A

real property that was personal property

included in sales mortgages and owned by landlord in leases

104
Q

indexed rents

A
105
Q

title abstract

A

form of evidence title

with attorney’s oppinion

rarely used today

summary of all records in the chain of title

106
Q

treaty of guadalupe hidalgo

A

1846-1848
TX =/= part of MX –> go to war on lone star state
Mexican session ceded to US via treaty
15 mil for rio grande border (CA, NV, AZ, NM, UT, CO, WY)

107
Q

use restrictions

A
108
Q

assignment

A

occurs when all of a tenants rights and obligations are transferred to another

109
Q

words of conveyance

A

transfer, deed, convey, grant, etc.

110
Q

freehold

A

ownership

111
Q

strip center

A

shops all in a row

112
Q

option period

A
113
Q

closing

A

buyer pays; seller delivers

title co acts as closing agent

includes loan and RE closings

all docs signed –> recorded by title co

114
Q

habendum clause

A

type of interest being conveyed

115
Q

graduated rents

A
116
Q

office/industrial space: rentable area

A

rentable area= gross area - vertical penetrations

117
Q

recording fees

A

BUSM 3050 (4 decks)

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