chapter 3 Flashcards
What is real estate?
Land
surface of the earth, including all permanently attached natural features, extending downwards to the center of the earth and upwards to infinity.
Real Estate
land plus improvements
Real Property
real estate PLUS the bundle of rights associated with real estate ownership
land + improvements + bundle of rights
in WA, must pass a percolation test to be considered real property
Bundle of Rights
right of
-possession
-use
-transfer
-exclusion
-encumber
Improvements
any non natural structure built on or permanently affixed to the land.
(buildings, fences, decks, and roads)
Quiet Enjoyment
right to use your property without interference. interference from past owners trying to exert possession or literal interference from unreasonable noise (i.e. the city is building an airport next door)
legal Title
the complete legal ownership of real property and the bundle of rights associated
percolation test
test shows how quickly the ground absorbs or drains water.
results are used to determine whether the land is suitable for construction (septic tank system).
right of possession
buyer has ownership of the property
right to use
right to use the property in any way that is not illegal. can control what is built on it, who enters it, the landscaping. anything that is not prohibited by a deed restriction.
difference between right of possession and right of use
possession allows someone to be in and use the property and use allows someone to make changes to the property
right to transfer (disposition)
right to sell, lease, and/or will a property to anyone you choose.
right of exclusion
right to tell trespassers or anyone to get off their land.
right to encumber
right to use the property as collateral for a debt.
(mortgages, easements, and property tax liens)
tangible property
possessions that physically exist
intangible property
stocks, patents, other incorporeal things
conveyance
property changing hands, the business of real estate
asset
an item of value
equity
amount of property’s value the title holder owns.
value of the property - any debts
deeds
used to transfer estates and can restrict property use
fee simple ownership
highest form of ownership in real estate.
who regulates broad issues, such as general land usage, natural disaster relief, environmental legislation, and anti-discrimination legislation?
federal government
who regulates real estate law. water rights, local environmental rules, and mineral rights? also who creates rules around real estate licensure, ethics, and practices?
state government
who covers smaller scale issues such as land use control, taxation and zoning?
local government
common law
the side of the law that arises from judgements and decisions made in courts rather than explicit legislation
