Ch 4 Flashcards
Sequence of URAR adjustment grid:
- Sale or financing concessions
- Date of sale/time
- Location
- Property rights
- Physical characteristics
(Shit Dum Locust Pi Pi)
Example of an acceptable sequence of adjustments:
- Property rights conveyed
- Financing terms/cash equivalency
- Conditions of sale
- Expenditures made immediately after purchase
- Market conditions
- Location
- Physical characteristics
- Economic characteristics
- Use/zoning
- Non-realty components of value
(Pretty Freaking Cool Eh’ Man Let’s Party)
Leased fee interest
“The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.”
This is the property owner’s interest (i.e., landlord’s interest) in a property that is leased.
Leasehold interest is defined as:
“The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease.”
(Tenant, Lassie, the dog who lives at the rental)
A life interest is defined as
“Rights of use, occupancy, and control, limited to the lifetime of a designated party, sometimes referred to as the life tenant.”
What is the remainderman?
An elderly person transfers ownership of a property to another party, perhaps a relative, but retains the right to live in the property for the rest of their life. Upon their death the property transfers to the person named when the life interest was created
An easement is defined as
“The right to use another’s land for a stated purpose.”
An easement in gross is defined as
“An easement that benefits a legal person or entity (individual, corporation, partnership, LLC, government entity, etc.) and not a particular tract of land; an easement having a servient estate but no dominant estate.”
Examples of easements in gross would be easements for railroads, pipelines and utility companies. An easement in gross burdens one’s property but does not benefit another parcel of land.
easement appurtenant
“An easement that is attached to, benefits, and passes with the transfer of the dominant estate; runs with the land for the benefit of the dominant estate and continues to burden the servient estate, although such an estate may be transferred to new owners.”
Example: Right of way to access a property.
An affirmative easement is defined as
“The right to perform a specific act on a property owned by another.”
A negative easement is defined as
“An easement preventing a property owner from certain, otherwise permitted, uses of his or her land, e.g., agreeing not to do something such as building a wall or fence blocking an adjoining property’s view.”
Examples of negative easements would include:
Conservation easements Drainage easements Historic preservation easement Subsurface rights Air rights
An encroachment is defined as:
“Trespassing on the domain of another.”
Concurrent ownership includes forms of ownership such as:
Tenancy in common
Joint tenancy
Tenancy by the entirety
Tenancy in common is defined as:
- how many people?
- right of survivorship?
- heirs get something?
- have to be equal amounts?
“An estate held by two or more persons, each of whom has an undivided interest.”
- how many people? 2+/unlimited
- right of survivorship? no
- heirs get something? yes
- have to be equal amounts? no
Tenant can sell without approval of other tenants.
