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Real Estate 2021 > Study guide > Flashcards

Study guide Flashcards

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1
Q

What are the two classes of properties?

A

Personal property and Real property

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2
Q

Define PERSONAL PROPERTY:

A

Generally, property that’s movable and unattached to land.

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3
Q

Define REAL PROPERTY:

A

Not movable ..(Land). Improvements and valuable additions like buildings and infrastructure development. Houses are a common improvement.

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4
Q

What are other improvements that fall under TYPES OF REAL PROPERTY?

A

1) Fructus Naturales

2) Fixtures

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5
Q

Define FRUCTUS NATURALES in relations to types of real property:

A

Permanent plantings (perennials) such as flowers, grasses trees and bushes. It’s Latin for “fruits of Nature.” Because they are classified as real property, these Items may not be removed from the land absent an agreement.

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6
Q

Define fixtures in relations to TYPES OF REAL PROPERTY:

A

Items that were once movable (personal property), such as fences, buildings, trees or bricks in walls that have been affixed to real estate.

Note: fixtures are real property unless they can be severed.

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7
Q

Define METHOD OF ATTACHMENT in relation to types of property.

A

The permanence in which an object is attached to real property is a factor in determining whether it may be removed. The more permanent the attachment (built-ins), the less likely it may be severed.

Example: if a refrigerator is freestanding, it is likely o be personal property (barring any agreement to the contrary), but if it’s built-in, it is more likely to be a fixture.

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8
Q

What is ADAPTATION in relation to fixtures?

A

If an object was specially adapted or made to suit a particular or unique feature of a building, that is classified as a fixture (book case)

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9
Q

What is an AGREEMENT in relation to Fixtures?

A

An agreement between the parties may permit the removal of fixtures, or prevent a dispute whether an Item is or is not a fixture.

Note: written agreements are the best way to avoid fixture dispute, as litigation is always uncertain.

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10
Q

What are the FOUR types of FIXTURE?

A

1) method of attachment
2) adaptation
3) agreement
4) relationship of parties

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11
Q

What are the RIGHTS IN REAL PROPERTY?

A

Includes ownership rights in the surface of land, airspace above land, space below the surface (mining rights), any easements (use of land), and use of appurtenant (adjoining) land.

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12
Q

What are the BUNDLE OF LEGAL RIGHTS in relation to rights in real property?

A

This phrase is used to describe the SIX distinct principle intangible legal rights of property ownership.

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13
Q

What are the 6 BUNDLE OF RIGHTS?

A

1) The right to POSSES property.
2) The right to CONTROL property within legal limits
3) The right to ENJOY property and use it legally
4) the right to EXCUDE others from property
5) the right to ENCUMBER property by lessening ones right of ownership in any way.
6) the right to DISPOSE of property by sale, will, or other transfer

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14
Q

What are the two main rights involved with RIGHTS IN REAL PROPERTY?

A

Bundle of rights and Water rights

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15
Q

In relation to RIGHTS IN REAL PROPERTY, what is WATER rights?

A

A property’s owners entitlement to use and maintain water for agricultural, recreational or personal use.

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16
Q

Define RIPARIAN:

A

Reasonable use for those with property bordering moving water

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17
Q

Define LITTORAL:

A

Reasonable use for those with property bordering non-moving water.

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18
Q

Define PRIOR APPROPRIATION:

A

Owner who first diverts water has superior rights to all others

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19
Q

What are USES OF REAL PROPERTY?

A

Public (zoning) and private ( deed restrictions) controls how property may be used and influence its value. Commonly available property use include:

  • residential
  • commercial
  • industrial
  • agricultural
  • recreational
  • specific purpose (churches, hospitals, colleges, cemeteries), and public (state, federal and municipal land)
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20
Q

Define REAL ESTATE AS ECONOMIC INDICATOR:

A

An economic indicator is a measurable economic factors that change before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy.

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21
Q

What is the SOCIAL IMPACT OF HOME OWNERSHIP?

A

When home values rise because people tend to take more pride in property that they own than in property that they rent.

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22
Q

what is the IMPACT OF SUPPLY AND DEMAND OR REAL ESTATE PRICES?

A

It’s the basis of economic principles: if a product is in high demand but in low supply, the price of this product will rise. However, if a product is in low demand and is in high supply, the price of the product will decrease.

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23
Q

What does it mean when one says REAL ESTATE IS HETEROGENEOUS?

A

This means that every price is UNIQUE, both in terms of its location and in terms of nature and quality of any structures places upon it.

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24
Q

What does it mean when someone says REAL ESTATE CANNOT BE MOVED?

Study These Flashcards
A

It’s immobile. Consumer must come to the good rather than the good come to the customer.

25
Over-supply / Lower prices
Because real estate is heterogeneous and immobile, you can usually expect a fall in prices when there is an over - supply of homes or land in a given area.
26
Under- supply/ higher prices
If there is not enough homes or land supply in a given area, the prices will almost always rise.
27
what are FACTORS AFFECTING REAL ESTATE SUPPLY AND DEMAND?
- demographics - unemployment/ income - cost/ availability of credit - cost/ availability of labor and materials - government policies
28
What should LICENSEES know?
Licensees should know the local market. Real estate professionals should keep up with trends in interest rates, national home trend price trends.
29
What are three PHYSICAL LAND CHARACTERISTICS?
Immobility, indestructibility and uniqueness
30
Define immobility:
A property cannot be moved from one geographical location to another.
31
Define indestructibility:
Land cannot be destroyed.
32
Define the term UNIQUENESS in terms of PHYSICAL LAND CHARACTERISTICS.
It is the Lagan basis for specific performance lawsuits, or lawsuits that seek to force he sale of land as agreed upon in a valid contract where the seller refuses to carry through with the sale as promised.
33
What are the 5 ECONOMIC LAND CHARACTERISTICS?
- Scarcity - AREA OF PREFERENCE (situs) - Improvements - Investments permanence - Assemblage
34
Define SCARCITY:
It can produce an increase and decrease in an economic value of the land depending upon the local supply and demand for land - as available land becomes scarce, its value tends to rise.
35
define AREA PREFERENCE (situs)
Refers to a persons preference for ones location over another. Area of preference, also called SITUS, is often identified as the most important economic characteristic of land.
36
Define IMPROVEMENT:
Additions made to a land that are intended to enhance its value
37
define INVESTMENT PERMANENCE:
Investments in infrastructure improvements. They include sewage, drainage and electricity systems. Combined with the immobility of the underlying land, these types of improvements produce relatively stable and long-term returns.
38
What are the TYPES OF LEGAL PROPERTY DESCRIPTION:
Method of locating real estate that is sufficient accurate for a deed, mortgage or other formal instrument.
39
What are the THREE principle methods of legally describing real property:
1) metes and bounds 2) government surveys 3) lot, blocks and subdivisions
40
Define PRINCIPLE LEGAL DESCRIPTION:
Legal descriptions are essential for deeds and titles (but not listing agreements, which may use non-legal descriptions)
41
What do PRINCIPLE LEGAL DESCRIPTIONS consist of?
1) metes and bounds 2) government survey 3) lot, block and subdivisions (recorded plat)
42
Define METES:
Distance measured in inches, feet yards and and sometimes miles. This usually requires reference to a compass setting.
43
Define BOUNDS:
Can be established using artificial monuments (iron pipes, brass disks set into concrete, road intersections and highways) and natural mountains (lakes, large boulders and noteworthy trees)
44
Define COMPASS ANGLES:
A surveyor uses both precision instruments and known natural and artificial bounds to measure the exact angles and distance in order to establish the boundaries or a parcel.
45
Define GOVERNMENT SURVEY:
Also known as GEODETIC or rectangular survey system and it’s used in more than 30 states, mostly in the mid-west.
46
What methods are used to identify irregular shaped lots?
Principal meridians, base lines and further divisions.
47
What are PRINCIPLE MERIDIANS :
Series of numbered imaginary lines running from north to south across the United States, created by the government to for the purpose of surveying land.
48
What are BASE LINES:
Series of imaginary lines that run east-west, established by the covert, which intersect principal meridians.
49
Define FURTHER DIVISIONS:
Rectangles formed by principal meridians and baselines may be divided as follows: * checks ( 24 miles per side) * townships (6 miles per side within a check) * sections ( 640 acres, or one square mile within a township)
50
Define LOTS, BLOCKS ANF SUBDIVISIONS:
A subdivision plat is a large map which notes the layout of lots and their numbers. A block is a group of contagious lots, which are usually divided by an access road.
51
Define GEODETIC SURVEY:
They include both horizontal and vertical land description methods that rely on a series of permanent land markers that serve as base lines for horizontal and vertical land measures.
52
What are non legal descriptions?
Method of describing real property for convenience only, not for the purpose of a deed, mortgage or other instrument requiring a legal description.
53
Define USAGE OF LEGAL PROPERTY DESCRIPTION:
Any document filed in land records concerning a property must identify the property using the legal description rather than a formal description such as the property address. Examples include deed, deed of trust/ mortgage, easement or power of attorney
54
Define ENCUMBRANCE
Interest in land held or asserted by someone other than the land owner, which may feminist its value.
55
What three topics does ENCUMBRANCES cover:
Liens, easements and encroachments
56
Define LIENS:
If a borrower defaults on a loan secured by a lien, the creator can seek his share of the collateral to satisfy the borrowers debt. A) Creation: Liens always arise form debts B) Effect on transfers: a lien holder does not transfer title to property, and does not prohibit the owner from conveying his interest in the property to another.
57
Removing Liens- basic concepts: Priority:
The priority of lien describes the Liens position in the line with the liens, or the order in which a creator will be paid in the event of the property is sold (usually by foreclosure) - Included in this are recorded liens and Operation of Law
58
Recorded liens
Liens generally received FIRST-IN-LINE, FIRST-In-TIME treatment
59
Operation of law
They follow this order: Tax liens, mortgages, mechanics liens, and other liens in the order they were recorded, and unrecorded liens

Real Estate 2021 (18 decks)

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