National PSI Real Estate Exam Prep Flashcards
(42 cards)
Cooperative (“Co-Op”) Ownership
- Similar to…
- But Is not …
- Instead owns …
- Condominium or Townhouse
- Real Estate
- Stockholder in a corporation that Entitles the holder to a leasehold interest in a specific unit of real property.
Townhouse vs. Condominium
- Condominium excludes…
- Townhouse includes…
- Actual ownership of land below the unit, air space above, and sometimes a yard.
- condominium owns only the unit and a share of the common interest property, like a park or pool
How many square feet in an acre?
43,560 square feet
Define “real property” or “real estate”.
Land + Improvements
Improvements are the things attached to the land and the rights/benefits that run with its ownership.
Examples: House Fence Trees (but not crops) Built in bookcases Light fixtures Window coverings(?) Sinks, baths Swimming pool Easement to access the nearest road
“Land”
By default includes earth’s surface, subsurface all the way down to the center of the eart & sky up to the outer atmosphere.
In Colorado, mineral & water rights have often been “stripped”. Upper atmosphere has been claimed by nations under eminent domain, for satellites etc.
“Improvements”
Things attached to the land and the rights/benefits that run with its ownership.
Aka “appurtenances”
Examples: House Fence Trees (but not crops) Built in bookcases Light fixtures Window coverings(?) Sinks, baths Swimming pool Easement to access the nearest
“Personal property”
Property that is unattached & moveable.
Example:
Rugs
Jewelry
Lawn mower
Legal Test: Is it a Fixture?
4 Part
- Intent to make permanent
- Method of attachment
- Adaptation / Customization
- General understanding
3 Key Characteristics of Land
- Immovable. Can’t relocate.
- Permanent. Can’t be destroyed.
- Unique. Cannot be duplicated.
Factors Influencing Value of Land
- scarcity
- improvements
- type of ownership
- area preference (i.e. “location)
“Encumbrances”
Encumbrances are non-ownership interests that represent a restriction on the use and/or transfer of real property.
Examples:
Mortgage
Other Liens
Easements
Types of Liens
- Voluntary vs. Involuntary
2. General vs. Specific
Effective date of a lien
Generally the day it is recorded.
Except mechanics liens may relate back to the date work was completed.
“Easement”
The right of a non-owner to use a property for a specific purpose, (generally to cross over it).
Appurtenant Easement
- Runs with the land.
2. Involves a dominant estate which is sllowed to use the servient estate for a specific purpose (typically for access).
“Easement in Gross”
The easement is not to a neighbor, but rather to a utility or permission granted to hunt on the land.
Does not run with the land. Terminates upon sale, contractual expiration or death of the owner.
“Prescriptive easements”
Acquired right to use land of another:
- open
- notorious
- hostile
- statutory period (“tacking” may be permitted)
- Prevented by closing off access periodically. Signage.
“License”
A personal, revocable right or privilege granted by an owner to someone else to use the property, typically in a brief, limited way.
“Encroachment”
Tree branch growns over the property line.
Shed built on your neighbor’s property.
Septic tank spilled into neighboring well!
“Clear Title”
Also known as “good title”, it is free of restrictions that would limit transfer.
“Equitable Title”
The right to acquire ownership and formal legal title, e.g. when a prospective buyer has entered into a valid, enforceable contract.
“Bare legal title”
A limited form of technical ownership. For example, this is the type of title held by a mortgage lender or a seller who has entered into a legally binding contract to sell.
4 Governmental Powers Over Property
- police power,
- taxation,
- eminent domain
- escheat.
Examples of Police Power
Zoning
Building Permits
