Ch. 1- Real Estate And Real Property

Question 1

Capital Gains Tax Exclusion

Answer 1

Homeowners are entitled to when they sell their primary residence for a gain after having lived in the home two of the five years immediately proceeding the sale

Question 2

Tax Deduction

Answer 2

1. Real Estate Taxes
2. Mortgage Interest payment on 1st & 2nd homes
3. Certain Loan origination Fees in the year of purchase
4. Loan discount points in the year of purchase
5. Loan prepayment penalties

Question 3

Home-Owners Insurance, Co- Insurance Clause

Answer 3

1. Intended to keep premiums at 80% or higher
2. If your coverage is less than 80%, you do not get full claim
3. 80% and above coverage you get the full claim

Question 4

Legal Test of as Fixture

Answer 4

1. Method of Attachment
2. Adaptation of Real Estate
3. Agreement (Most Important)

Question 5

Physical Characteristics (PIN)

Answer 5

Performance, Immobility, Nonhomegeneity (Uniqueness)

Question 6

Economic Characteristics (SLIP)

Answer 6

Scarcity
Location
Improvement
Performance of Investment

Question 7

Two Characteristics of Real Estate

Answer 7

Physical and Economic Characteristic

Question 8

Trade Fixture

Answer 8

Personal property of a business, when attached remains personal property

Question 9

Fixtures

Answer 9

Personal Property becomes part of Real Property

Question 10

Real Property

Answer 10

Bundle Legal of Rights

Question 11

Real Estate

Answer 11

Land at, above and below the Earth Surface, plus all things Permanently Attached to it

Question 12

Land

Answer 12

Earth’s Surface, extending downward to the center of the Earth and extending upward

Question 13

Five Types of Real Property

Answer 13

Residential
Commercial
Industrial
Agricultural
Special Purpose