exam 1 busm 3050 Flashcards
1
Q
LOCATION LOCATION LOCATION
A
all about ACCESS
literal (views, ingress, egress)
figurative (customers, amentities, transportation)
every property is UNIQUE with UNIQUE value
2
Q
special assessment
A
usually for a condo association
HOA; runs property; BUT if special circumstance, special assessment to pay for it would be divided by owners.
creates and maintains neighborhood infrastructures
3
Q
effective rent
A
if giving a discount on x months of rent (concessions), the calculated $/psf/yr
4
Q
personal property
A
movable
5
Q
sublease
A
tenant transfers a subset of her rights to another
6
Q
right of survivorship
A
right granted to joint tenancy–> ensures transfer of one owner’s stake to other owner
requires express intent in deed
7
Q
appraisal
A
developing a value for real property
8
Q
quitclaim deed
A
no covenants whatsoever
grantee gets what grantor’s got, if anything, but NO PROMISES
9
Q
township
A
a subdivision of 36 sq mi
10
Q
leasehold estates
A
- possessory interests
- not the highest interest… not a titled interest…
- always limited duration… always reverts to landlord
- tenancy for years… definite period ((writing if >1yr (statute of frauds), verbal if <1yr))
11
Q
servient parcel
A
adjacent parcel to dominant
easement appurtenant
easement on property to dominant parcel
12
Q
fee simple absolute
A
type of freehold estate
- has all 3 key rights to greatest extent
- FOREVER
and most common
13
Q
offer and acceptance
A
offer, coutner offer, cant accept first offer must counter offer and accept
14
Q
inspection
A
15
Q
dominant parcel
A
possesses a right of use of an adjacent (servient) parcel
–> benefits dominant parcel (driveways, view etc)
16
Q
appraisal
A
loan approval
17
Q
license
A
permission -> not a property right (BIG DIFF)
– REVOCABLE (ejection/eviction)
– VERBAL OK
– PERSONAL (terminates automatically upon transfer/death)
18
Q
Homestead Act of 1862
A
$10 –> US citizen could buy 160 acres of land ; 5 yr ; had to improve it
NOT available to confeds
WAS available to freed slaves
19
Q
intangible property
A
bundle of rights (nonphysical)
20
Q
mill
A
1 mill = .1%
21
Q
real property
A
immovable
(dirt, earth)
22
Q
types of deeds
A
general warranty
special warranty
quitclaim
all equally effective at conveying property
–legal description(tangible) and habendum clause // exceptions/reservations (intangible) = property conveyed by deed
– diff is only what the grantor promises
23
Q
declaration of covenants
A
ex: cant paint your house certain color, have to keep up with your lawn
24
Q
externalities
A
type of spillover effect
(from traffic; noise; light; severely impact neighbors)
–> need for land use regulations controlling impacts
25
special warranty deed
type of deed
covenants limited to claims during period of grantor's ownership
26
tenancy in common
2+ people share ownership rights in a property/parcel of land
commercial or residential
when a TIC dies; property passes to that tenant's estate
TIC partners have right to leave share to any beneficiary
contract terms for TIC: detailed in deed, title, other legally binding property ownership documents
undivided interests
owners can sell/lease interest without permission of other owners
27
marketable title
= no problems with title to property (no claims/liens on property)
28
estoppel certificate
statements tenants + landlord will sign that verifies where lease is standing; rent; other things not taken care of
29
general warranty deed
includes (3) covenants
1. seizen= valid title
2. quiet enjoyment (will defend)
3. no encumbrances (no undisclosed rights of others)
30
flat rents
keeping rent flat the entire lease term
31
easement
right to use someone else's property in some way
road, driveway, utilities
(powerlines that go over property; power company has public utility easement)
32
easement appurtenant
usually a perpetual easement
runs with the land, can be used by others
future owner benefits w sale
properties must be located next to each other for the appurtenant easement to be legal
33
condemnation
legal procedure (due process) for exercising eminent domain
decides fair value + lawful exercise of power
34
contingencies
things that must NOT happen or the contract will be terminated
35
conditions
things that MUST happen for the contract to stand
36
deed restriction
affects only that property
grantor reserves the covenant and holds the right
ex: no alcohol, single family residential use
37
38
plat lot and block number
a way to describe property usually in a subdivison
(lot, block, parcel, etc)
39
fixtures/personal property
fixtures --> once personal property (movable) now real property
40
real property
immovable
fixture is personal property that became real property
41
personal property
movable
(anything I can take with me)
42
joint tenancy
direct ownership
a legal arrangement in which 2+ people own a property together, each with equal rights and obligations
if one owner dies, interest in property -> surviving party, without going thru courts
no inheritability
43
actual notice
a notice given directly to a party
44
comprehensive plan
big picture
projects future growth and demand for various land uses
project needs for public services and infrastructure (streets, schools, parks, police, fire)
set growth boundaries
45
grantor
a grant deed is what transfer title to real estate
"I olivia sell to you paul this property..." recorded and shows transfer.
sells via grant deed
46
offer and acceptance
deed has to have words of conveyance; so does this.
need words of buy/sell
47
lien
- non possessory interest
- secures/collateralizes performance of an obligation
1. general liens: arise from events unrelated to the property and involuntary (ex. judgment liens and income tax liens)
2. specific liens: arise from ownership and use of the property and either voluntary or involuntary
-- mortgage liens (v)
-- mechanic's liens (i)
-- HOA liens (i)
-- property tax liens (i)
priority of multiple; 1st in time, 1st in right
48
triple N rent (NNN)
commercial lease
lessee pays rents + utilities + INSURANCE, MAINTENANCE, TAXES
49
commissions
% of properties purchase price given to agent
50
essential elements of the lease
51
remedies
52
tangible property
everything we can touch
(cars, furniture, goods, appliances)
53
variance
where something might not be allowed under the zoning code but you ask or apply for variance
ex: use requires 100 spots per zoning code but only 90, apply for variance to allow that use to go into space still
54
evidence of title
official doc. proving someone owns it
-- free from reasonable doubts of claims that would impair value
3 types
1) title abstract: w attorney's opinion (barely used)
2) title commitment/insurance: (insurance policy disclosing who owns what ; insuring against title problems and resulting losses if it's wrong... widely used)
3: torrens title certificate
55
covenant
promise
56
improvements to the land
- infrastructure
- excavation
- roads/curbs/gutters/sidewalks
- utilities
57
restrictive covenants
- non possessory interest (generally no possession at all)
- private restrictions/obligations intended to minimize negative spillover effects, enhance use/enjoyment and values
common restrictions:
-- architectural standards (size, design, materials, colors, height)
-- no RVs boats and other toys in view
-- control over outside/visible areas generally
-- limitations regarding pets and other animals
common obligations
-- submit architectural plans for approval
-- maintain property
-- pay HOA dues and assessments
58
equitable title
once contract is signed by both parties ; buyer owns ET (legal title to property)
59
title search
examining recorded instruments in public records to construct the "chain of title"
60
exclusive use
61
bundle of rights
concept that has long been associated with real estate ownership
describes all legal rights that attach to the ownership of real property
including right to
- use
- exclude
- dispose of
- devise by will
- lease
- sell
- encumber
-enjoy
62
zoning
used by local govt to map out city
land uses/densities: minimize negative spillover effects
-- by use
-- by densities within classifications
------- (ex: boulder 5 unrelated adults)
* boulder zoning map!
63
title company
acts as closing agent
64
right of first refusal
contractual right giving holder the option to transact with the other contracting party before others can; polanco with neighboring business
65
encroachment
someone's improvements on your property (fence, driveway, building)
66
non-conforming uses
pre-existing "grandfathered" uses
must use as what it was
if you buy, must tear it down and recreate
67
manifest destiny
idea of settling the entirety of NA
moving westward!
68
property market
cfs from user market and required investor returns from capital market determine investment property values
69
chain of title
sequence of conveyances passing property rights/interests down through time beginning with first conveyance from sovereign(patent)
-- breaks in chain of title (rights leaving main bundle)
-- branches in chain title (follow breaks as rights assigned)
-- merger (rights returned to main bundle)
70
prorated items
either paid in advance or accruing but not yet due (paid in arrears)
71
assessed value
% of mv -> used for property tax purposes
72
eminent domain
legal right (power) of government to acquire private land without owners consent for public use
requires due process of law + payment of just compensation
73
recording fees
when a lien or deed is recorded, county recorders office charges fee
74
gross rent
75
tax exempt properties
some properties dont have to pay property taxes
(religious, non profit, seniors, govt property)
76
operating costs: who pays? how are they allocated?
77
usable area
rentable area - public spaces+common areas
78
constructive notice
a notice that is on public record to be accessed
79
section
= 1 mi sq = 640 acres
what we see from airplanes
80
user market
supply/demand for physical space resulting rental rates and housing values
always pressured towards equilibrium
all about supply <-> demand
users need specific types and locations
81
improvements on the land
buildings and structures (vertical improvements)
82
planned unit development
allows customized zoning/land use per negotiated agreement
commonly used for mixed use projects due to limits of conventional zoning
83
inclusions/exclusions
84
class a, b, c office space
A: prestigious building; high quality finishes; best location; above avg rents ; not free parking
B: was class A at one point ; not free parking ; does not compete for same tenants/rates as class A
C: older; few amentities ; could be satellite offices ; lots of free parking
below average rents
85
grantee
party that gets the property from grantor via grant deed
86
ad valorem taxes
tax based on an estimated value
87
US rectangular survey system
PLSS
revo war --> expansion to W territories --> efficient means of surveying/conveying lands needed
1785 PA/OH border and surveying W from there (Ohio River West)
principle meridian (NS)
baseline (EW)
range lines (every 6 mi EW of PM)
tier or township lines (6 mi NS of baseline)
each resulting square in the grid...
--- township (6mi sq/36sq mi containing 36 secs)
-- each township divided into 36 secs (1mile sq=650 acres)
88
deed
primary instrument of conveyance for real property interests (fee simple, life estate, etc)
a purchase/sale contract does not convey real property and is not an instrument of conveyance
89
tenant improvement (TI)
amount landlord agrees to spend to build out or refurbish the space to meet the needs of the tenants business
(may take care of improvements, may pay directly to tenant, or to contractor on tenants behalf)
90
earnest money
deposit at time of an offer to show they are serious
91
raw land
vacant, unimproved land
92
capital market
supply/demand for $ and resulting required investor returns
forms of capital: equity (owner) and debt (lender)
equity investors return --> property cfs (sales/rent)
debt investors return --> loan payment (principle, interest)
93
acre
43560 sq ft
94
settlement statement
95
purchase and sale agreement
96
leasehold estate
holding the right of the lease: property owner defines beginning and ending date
97
metes and bounds
sequence of directed distances (metes) describing boundary of a property
establishes true point of beginning is critical
compass directed walk
est by longitude/latitude
point of beginning tells us starting point
first letter (N) tells direction surveyor facing to start
degrees, mins and secs tells how far to turn (degree 1/360th circle; minute 1/60th degree; second 1/60th min)
second letter (E) tells what direction to turn
distance tells how far to go in that direction
again and again until to point of beginning
98
common area maintenance (CAM) charges
charged on top of base rent
include: fees for work preformed on common area of property
99
mortgage
a lone secured by a property
(house loan: mortgage or a loan on the house if you owe the bank money)
100
property rights
real estate = real property (tangible+intangible)
nonrevocable except by nature or due process
(nature= rights may end or be revoked; lease expiration)
(due process= rights regulated by govt in interest of public health, safety and welfare)
101
radius restriction
prohibits tenant from opening another store within a negotiated radius
(ex: cant have a mcdonalds 2-3 miles from this one)
102
condominium
- units owned separately by owners
- demising walls/ceiling/floor
- air rights!
- common elements (everything outside units) owned as tenants in common by all unit owners
- owners/lenders dont love condos
103
fixture
real property that was personal property
included in sales mortgages and owned by landlord in leases
104
indexed rents
105
title abstract
form of evidence title
with attorney's oppinion
rarely used today
summary of all records in the chain of title
106
treaty of guadalupe hidalgo
1846-1848
TX =/= part of MX --> go to war on *lone star* state
Mexican session ceded to US via treaty
15 mil for rio grande border (CA, NV, AZ, NM, UT, CO, WY)
107
use restrictions
108
assignment
occurs when all of a tenants rights and obligations are transferred to another
109
words of conveyance
transfer, deed, convey, grant, etc.
110
freehold
ownership
111
strip center
shops all in a row
112
option period
113
closing
buyer pays; seller delivers
title co acts as closing agent
includes loan and RE closings
all docs signed --> recorded by title co
114
habendum clause
type of interest being conveyed
115
graduated rents
116
office/industrial space: rentable area
rentable area= gross area - vertical penetrations
117
recording fees
