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Real Estate State Test Prep > Chapter 7-8 Key Concepts > Flashcards

Chapter 7-8 Key Concepts Flashcards

1
Q

Nature of property

A
  • Land refers to the surface of the earth and items attached by nature
  • Real estate includes land and all human-made improvements
  • Real property includes real estate plus the legal bundle of rights
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2
Q

Physical Components (rights) of land

A
  • Surface
  • Subsurface
  • Air
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3
Q

Surface rights

A

Include water rights

  • Riparian - associated with land abutting the banks of a river, stream, or other watercourse
  • Littoral - assocaited with land abutting tidal bodies of water, such as an ocean, sea, or lake
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4
Q

Subsurface rights

A

Consists of an owner’s right to underground minerals, petroleum, and natural gas, referred to as mineral rights.

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5
Q

Definitions associated with water rights

A
  • Accretion
  • Alluvion
  • Erosion
  • Reliction
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6
Q

Accretion

A

The process of land build-up from water-borne rock, sand, and soil

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7
Q

Alluvion

A

The resulting new deposits of land caused by accretion

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8
Q

Erosion

A

The gradual loos of land due to natural forces

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9
Q

Reliction

A

The gradual receding of water, uncovering additional land

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10
Q

Personal Property (chattel)

A
  • Anything that is not real property
  • Real property becomes personal property by act of severance
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11
Q

Fixtures

A

Were personal property but have been permanently attached to and made part of real estate

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12
Q

Test to decide if an item is a fixture

A

IRMA

  • I Intent of the parties
  • R Relationship between the parties
  • M Method of Annexation
  • A Adptation of the article
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13
Q

Bundle of Rights

A

Real property ownership rights (DUPE) include the right of

  • D Disposition (right to sell or give away)
  • U Use (right to control)
  • P Possession (right to occupy)
  • E Exclusion (right to quiet enjoyment)
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14
Q

Freehold estates

A

estate of ownership

  • Fee simple (absolute) estate is the most comprehensive estate and it is inheritable
  • Life estate is measured for a person’s lifetime
    • Estate in reversion occurs when property returns to the grantor (pervious owner)
    • Remainder estate occurs when property goes to a 3rd party known as a remainderman
  • The remainderman owns a remainder estate while the life estate exists
  • The remainderman acquires a fee simple estate in severalty, or if there is more than 1 remainderman, the remaindermen acquire some form of concurrent ownership
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15
Q

Nonfreehold estate (leaseholds)

A

Have a known duration and do not involve and onwerhsip interst

  • Grants the right to use and possess (but not own) real property
  • Under a lease, the tenant possess a leasehold estate, and the landlord (property owner) possesses a reversion estate
  • At end of a leasehold estate, possession and use of the property reverts to the property owner
  • Estate for years is a written lease agreement with a specific statrting and ending date
  • Tenancy at will is a lease agreement that has specific beginning date but no fixed ending date
  • Tenancy at sufferance occus when the lease period has ended and the tenant is a holdover
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16
Q

Sole ownership

A

Occurs when title to property is held by one person

an estate in severalty

17
Q

Co-ownership

A

Means title to the property is shared by 2 or more persons (concurrent ownership)

  • Tenancy in common
  • Joint Tenancy
  • Tenancy by the entireties
18
Q

Features of tenancy in common

A
  • 2 or more people
  • Undivided possession
  • Interest equal or unequal percentage
  • Take title at same time or different times
  • Heirs inherit (no right of survivoship)
19
Q

Features of a joint Tenancy (PITTS)

A
  • P Each joint tenant has undivided Possession
  • I Each joint tenant has equal Interest
  • T Joint tenants take title at the same Time
  • T Joint tenants are anmed on the same Title
  • S Must expressly state right of Survivorship
20
Q

Features of tenancy by entireties

A
  • Husband and wife take title together
  • Undivide possession
  • Right of survivorship
  • Same title, same time
  • Only available to husband and wife
21
Q

Homestead benefits and protections

A
  • Protection from forced sale for certain debts
  • Up to $50,000 tax exemption
  • Size restriction of one-half acre inside of a city or 160 acres outside a municipality
  • Protection of the family (if a married person dies and teh family homestead was titled in the deceased person’s name only, by operation of law, the surviving spouse receives a life estate and the children [lineal descendants] receive a remainder estate). If no children, surviving spouse receives a fee simple estate in survivor’s name only (in severalty)
22
Q

Elective share (Homestead)

A

Provides protection of a surviving spouse who has been excluded form the deceased spouse’s will

  • Elective share consists of 30% if the net estae of deceased spouse
  • Surviving spouse also receives homestead property and property owned by couple as teantns by the entirety
23
Q

Cooperative

A

Organized as a corporation

  • Corporation holds title to the land and improvements
  • Owners purchase share of stock
  • Proprietary lease entitles purchaser right to occupy the unit
  • Contract for purchase of a cooperative unit must include disclosure of buyer’s right to cancel
24
Q

Condominium

A

Consists of condo units and common elements

  • Individual owns a unit exclusively and also an undivided fractional share of the common elements
  • Deed convays ownership
25
Q

Condominium Douments

A
  • Declaration of condominium contains legal descriptions of the units and once recorded creates the condominium
  • Articles of incorporation of the assocaition create the corporate entity responsible for operating the condominium
  • Bylaws of the association describe operational requirements and provide for the administration of the association
  • Frequently Asked Questions and Answers (FAQs) inform prospective purchasers about restricitons on the leasing of a unit, information concerning assessments, and whether the unit owners or the association are obligated to pay rent or land-use fees for recreational facilities
  • Estimated operating budget details estimates of various common expenses that are to be shared by the unit owners
26
Q

When are Developers required to file the condo docs with the Division of Florida Condominiums, Timeshares, and Mobile Homes?

A

Developer is required to file the condo docs with the Division of Florida Condominiums, Timeshares, and Mobile Homes prior to offering units for sale.

  • If there are 20 or more new residential units, the developer must prepare and file a prospectus
  • Prospectus must be given to prospective purchasers
27
Q

Condominium disclosures - new residential units sold by developer

A
  • Prospectus
  • Estimated operating budget
  • Declaration of condominium
  • Articles of incorporation
  • Bylaws
  • FAQ
28
Q

Condominium disclosures - resale units (private party sales)

A
  • Most recent year-end financial report
  • Rules of the association
  • Declaration
  • Articles of Incorporation
  • Bylaws
  • FAQ
  • Governance form
29
Q

Time-share owners

A
  • Interval ownership is fee simple ownership
  • Right-to-use is a leasehold interest

Real Estate State Test Prep (14 decks)

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