FNAN 304 test 1

Question 1

tangible

Answer 1

Physical assets that can be owned

Question 2

Intangible

Answer 2

non physical assets such as stocks, bonds, mortgages, and leases

Question 3

Improvements: Raw

Answer 3

Improvements to or on the land itself

Question 4

Improvements: To

Answer 4

Improvements such as excavation and fill, sewers and other utilities roads and driveways

Question 5

Improvements: On

Answer 5

improvements like structures ( things put on the land)

Question 6

3 Bundle of Rights

Answer 6

1. exclusive possession of the real property
2. use of enjoyment: can rent out a property
3. disposition of property

Question 7

who regulates real estate liscensing professionals

Answer 7

Government and national association of realtors

Question 8

who invest in investment grade property?

Answer 8

Commercial investors, most properties are over 10 million and would be hard for a single investor

Question 9

Heterogeneous property

Answer 9

Describes an area composed of buildings of varied styles or uses

Question 10

homogeneous properties

Answer 10

Describes areas having similar style properties or properties of similar use

Question 11

user market

Answer 11

Owners and renters in the real estate market those who directly use the space

Question 12

Capital market

Answer 12

Individuals and institutional investors that invest oney either directly or indirectly into real estate

Question 13

Property market

Answer 13

The buying and selling of land and buildings by parties

Question 14

Order of leins/judgements in bankruptcy

Answer 14

1st level lean: property tax liens, assessment and CDD liens
2nd level(first in time first in right): mortgages, mechanics lien, federal tax judgement, HOA/Condo association
Other judgements: May be nullified by homestead or tenancy if suit is against only one spouse

Question 15

Mechanics lien

Answer 15

lien by those who provided labor or meterials that improved the property

Question 16

Timeshare

Answer 16

An ownership interest that gives the owner a right to possess a property for an allocated amount of time. never an investment questionable history

Question 17

Personal rights

Answer 17

Freedom guaranteed by constitution supreme court interpretations of constitution

Question 18

Property rights

Answer 18

Exclusive posession
enjoyment of use or benefits
freedom to dispose as one pleases

Question 19

Easement

Answer 19

the right to use land for specific and limited purpose

Question 20

License

Answer 20

Similar to easement in gross, buy conveys permission rather than right (revocable, terminates at death or grantor or sale)

Question 21

Types of ownership

Answer 21

1. Sole ownership-single person
2. Tenancy by entireties- ownership by two entities I.e married couple
3. Tenants in common- two or more people own a portion of real estate separately
4. Joint tenancy- two or more people own real estate together, upon death remaining shares split between co-owners)

Question 22

Types of modern leasehold interests

Answer 22

1. Tenancy for years- for specified period of time written
2. periodic tenancy- no definite time, often oral agreement, state law governs termination

Question 23

Condominium ownership

Answer 23

Combines single ownership and tenancy in common
- created by condominium declaration
-bylaws define owner rights
-creates additional private government

Question 24

Cooperative ownership

Answer 24

Corporation owns property
-each owner holds shares and a proprietary lease
- cannot mortgage individual asset
-Mutual liability
-each party owns units but not outright

Question 25

Dominant ownership

Answer 25

The parcel of real property that has an easement over another piece of property

Question 26

Servient ownership

Answer 26

Parcel of land that is subject to an easement and benefits another parcel of land

Question 27

Affirmative easement

Answer 27

Gives the easement holder the right to do something on the grantor of the easement land

Question 28

Chain of title

Answer 28

The historical record of ownership transfers of a specific piece of property

Question 29

Marketable title

Answer 29

A title that a court of equity considers to be so free from defect that it will legally force its acceptance by a buyer

Question 30

Recording statutes

Answer 30

state law regulating the recordation of interest in real property is used to determine the priority between parties claiming an interest in the same property

Question 31

Delivery

Answer 31

The legal transfer of a deed or another instrument

Question 32

Cloud on title

Answer 32

Any document, claim, unreleased lien or encumbrance that might invalidate or impair a title to real property or make title doubtful

Question 33

The doctrine of constructive notice

Answer 33

Notice that is given to the public via recorded documents about interests and rights in real estate

Question 34

Words of conveyance

Answer 34

Stipulated in deed demonstrating the definite intent to convey a specific title to real property to a named guarantee

Question 35

Hebendum clause

Answer 35

Refers to the transfer of ownership of a property and any accompanying restrictions

Question 36

Grantor

Answer 36

The seller (on deeds) or borrower (on mortgages)

Question 37

Grantee

Answer 37

the party who receives the transfer of the property after the closing

Question 38

Metes & Bounds

Answer 38

The boundaries of real estate are identified by its natural landmarks. (the math of the boundaries of the perimeter of the land)

Question 39

Subdivision block

Answer 39

The division of property within a plotted subdivision

Question 40

Government survey

Answer 40

System of land description that applies to much of the land in the United States

Question 41

3 Covenants in a deed

Answer 41

1. covenant of seisin- guarantees grantor legal possession of the property 2. covenant of right to convey- guarantees grantor right to sell property 3. covenant against encumbrances- guarantees grantor has disclosed to the grantee any and all property encumbrances

Question 42

Easement by prescription

Answer 42

When someone uses another's property for a certain amount of time without permission in a way in which the owner should be aware of

Question 43

Implied easement

Answer 43

One that is not written down. created by the circumstances of a particular configuration of land