Vcvdfh Flashcards
(30 cards)
Clauses in a deed limiting the future uses of the property. May impose a variety of limitations and conditions, such as limiting them density of buildings, dictating the types of structures that can be erected, and preventing buildings from being used for specific purposes.
Deed restrictions
Generally enforced by a homeowners association or by a property owner who is affected
Deed restrictions
Lease for a definite period of time terminating automatically without notice by either party.
Tenancy or estate for years.
Lease for an indefinite period of time without a specific expiration date; notice must be given to terminate.
Tenancy from year to year or periodic estate.
Lease that gives the tenant the right to possess with the consent of the landlord for an indefinite period of time; terminated by either party giving notice or by the death of either he landlord or the tenant.
Tenancy at will
Tenant continues to hold possession without the consent of the landlord.
Tenancy at sufferance or holdover tenancy.
Tenant pays fixed rent, while landlord pays all taxes, insurance, etc.
Gross/fixed lease
Tenant pays rent plus all or part of property charges.
Net lease
Usually provides for minimum fixed rent plus a percentage of the portion of tenants business income that exceeds a stated minimum.
Percentage lease
Provides for specified rent increase at set future dates.
Graduated lease
Allows rent to be increased or decreased periodically based on agreed index, such as the change in the government cost of living index.
Index lease.
Items installed by a commercial tenant according to the terms of a lease and removable by the tenant before the expiration of the lease - personal property.
Trade fixtures.
If not removed, the trade fixture becomes
Real property by accession.
Used in many ways in real estate including: access with which a property can be viewed by a buyer or renter, access to commercial properties, or access to living or working in a building for people with disabilities.
Accessibility/ADA requirements
Allows investor to recover cost of asset through tax deductions over useful life of asset.
Tax depreciation
Tax depreciation may only be deducted if
Property produces income or is used in trade or business.
Takes equal periodic amounts over an assets useful life.
Straight line depreciation.
Losses may be deducted by investors in certain circumstances, and tax credits are allowed for renovation of older buildings, historical properties, etc.
Tax deductions
Payments received are taxed only on profit portion, interest received is taxed as ordinary income.
Installment sales
Method of deferring taxation of capital gains.
IRS form 1031
Any additional property or capital needed to even out the exchange is called
A boot.
Boot is taxed at
The time of the exchange.
Net spendable income from the investment calculate by deducting all expenses from the gross income
Cash flow
Amount of income that remains after subtracting all the commissions from the gross income.
Company dollar
