Introduction Chaper 1 Flashcards
Feudal system VS Allodial System of land ownership.
Feudal =King owns, Allodial=Private ownership.
What are the 5 major real estate services
brokerage-(Buying/selling) appraisal- CMA (Home value) property management finance property development
What are the rights of ownership?
- Possession-
- Use
- Encumbrance-borrow money against property.
- Exclusion-bar others from premise
- Transfer-pass title
Real Property VS Personal Property
Real Property-Includes the earth’s surface, the air above and the ground below, plus permanent physical attachments, such as buildings, tenements, and fences.
(Can be corporal or incorporeal)
Personal Property-Also called ‘Chattel” and “personality” It is different in that it is movable and includes tangible and intangible objects.
tangible-bed, chair
intangible-copyrights, patents, trademarks, relationships.
Fixture
Those items of personal property that are affixed to real property.
The legal test determining what is or is not a fixture go by the acronym MARIA.
M- Method of attachment- How permanent is the fixture. Is it secured by nails, screws, or clamps.
A- Agreement- Is the agreement between the parties on the fixture oral or written? Real property agreements must be written.
R- Relationship- What is the relation of the fixture to the parties? Is it needed for health or welfare? Are the parties sellers, renters, or buyers?
Intent- What is the intent of the “annexors?” Meaning the persons who installed the fixture.
Adaptability- How does the fixture fit into the property? What is its purpose?
Trade fixture
Are personal property and can be removed by departing tenants as long as they do it before the lease expires. Includes: Bookshelves, partitions,
Tenements
Building, improvements, fixtures
What 3 things make up Corporeal Real Property
- Land
- Tenements
- Natural Fruits
Incorporeal
Rights and relationships, cant touch it. Easements and right of ways, hereditaments- any property that can be inherited.
The physical characteristics of real property are:
1) Immobile
2) Indestructible
3) Non-homogeneous
4) Law of Situs
Real Properties economic characteristics include
1) Scarcity
2) Modification
3) Fixity
4) Situs
The title transfer of personal property, contrary to real property requires________ rather than a deed?
Bill of Sale
Ways to transfer a title (via deed)
1) voluntary-choice
2) Involuntary- foreclosure, Immanent Domain, Adverse possession.
3) Testate- Someone died with a will
4) Intestate succession-without a will-Estate distributed with laws.
Government retains 4 basic rights over property, which is in reality vestiges of the feudal system.
PETE
1) Police Power- The right to regulate or limit, and confiscate property temporarily under emergency situations: Both state and federal.
2) Eminent Domain-Right to take private property for public use. State and Federal
3) Taxation- The right to tax private property for the costs of governments and area improvements- only applies to state and local.
4) Escheat- The right to take back property if the owner dies without a will or heirs, or if abandoned. Applies to state and county.
Zoning
Regulation of structures and uses of property within districts and zones. Government control and largest police power.
Zoning is enforced with
building permits- require to follow zoning rules
violations in zoning can result in
penalties- such as the title being rendered unmarketable.
Variance
Rezoning of a single parcel
Spot Zoning
Type of variance- exception to the rule.
Different types of land use zoning categories.
1) residential (R)
2) agricultural (A)
3) planned area development (PAD)
4) commercial (C)
5) industrial (I)
Codes are enforced through;
1) Building permits
2) Certificates of occupancy
3) Inspections
Taxation of real estate is the jurisdiction of?
State and local governments.
Real estate taxes are used for?
Education, welfare, highways, and public needs.
Property taxes are levied?
Annually-January 1st
Property taxes are paid?
2x a year- October 1st, March 1st
What is the primary reason for a property lien?
unpaid taxes
What are the 2 tax periods?
Jan 1- June 30,
July 1- December 31st
Master planned community
2 or more subdivisions with CC&R’s
Planned area development
Has greenbelt and one stop shopping
Buffer Zone
Separates one use of land from another.
Condition use permit
Help for property owner with special needs
Conditional use permit
Help for property owner with special needs
Setback
Area you cannot build on.
Downzoning
Changing zoning to a less dense use.
Upzoning
Changing zoning to a more dense use.
Grandfathered
Use was there before zoning-you can use it, but not expand its use.
Nonconforming use
Use was once lawful but does not conform. (Becomes spot zoning or variance)
Cumulative zoning
Can do the zoning and all lower
R-3
R-2
R-1
Dedication
Giving away land from a developer to be able to develop. Could be land for roads, sidewalks, schools.
Types of property controls
Zoning-governmental
Deed restrictions-private
Lender
taxation
A charge against real estate to raise funds to meet public needs of government and to raise money for area improvements.
What is always number one for liens?
property taxes
Ad Valorem
Type of tax assessment based on the assessed valuation of the property. (Property Tax)
Assessed Value
The value of real property established for computing real property taxes. Done by county and township assessors. Land is separate from home.
Property taxes are levied___________, and paid__________?
Levied- Annually-October
Paid Semi Annually-October 1st, March 1st
Property taxes become delinquent
November 1st,
May 1st
What is the assessment ratios for residential, vacant land, and commercial/industrial?
Residential- 10%
Vacant Land-16%
Commercial/Industrial-18%
Community Facility District (CFD)
Is a special taxing district that allows the financing of the installation, operation and maintenance of public improvements such as roads, water and sewer facilities, flood control and drainage projects. (Fire stations, side walks)
Community Facility District tax is on____?
Property Tax Bill
Is Community Facility District tax assessed
No
Eminent Domain
Taking private property for public use. (Parte of PETE)
Has to be fair and just and compensated for.
Constitutional right-1971
Condemnation process
Lawsuit dealing with Eminent Domain if you don’t agree with the offer. 1st step…
Escheat
reversion of property to state if property owner dies without a will or heirs.
What is the time frame of Escheat
State will hold for 5 years
If no heirs step forward they will sell and hold money for 2 years in a state general fund. Can get part of money back during this two years. After 8 no money is given back.
Appurtenant
Belonging to: Like a garage to a home. Appurtenant items run with the land when the property is transferred.
Arrears
The state of being delinquent in paying debt,
Assemblage
The combining of 2 or more lots into one large lot. Usually to increase value
Beneficial use
A legal term describing a persons right t o enjoy the benefits of specific property, View, light, air, water
Caisson
The foundation supports for a building.
Chattel
An item of personal property. Chattels are transferred with a bill of sale.
Corporeal Property
Tangible real or personal property such as buildings, fixtures, fences. Also includes intangibles such as rents, easements, and goodwill.
Emblements
A growing crop that is produced annually.
General Plan
A long range governmental program to regulate the use and development of property in an orderly fashion.
restrictions
A limitation on the use of property. Can be public or private. CC& Rs, deed restrictions, mortgage, zoning
Hereditament
Every kind of inheritable property, including real, personal, corporeal, and incorporeal
improvements
Valuable additions made to property that amount to more than repairs, costing labor, and capital, intended to enhance the value of the property.
Intangible
Anything having not material or physical existence. Cant be seen or touched
land
The surface of the earth extending down to the center and upward to the sky, including all natural things… trees, crops. Mineral rights and air rights. It also includes all artificial things attached. Home, fence, fixtures
Non conforming use
A permitted use of real property that was lawfully established at its original constructions, but no longer conforms to the current zoning law. Does not have to be discontinued after sale.
Personal Property
Things that at tangible and movable; not real property. Such as chattels.
Personality
Chattels
Pro Rata
The division of real estate expenses according to the proportion of ownership expenses.
Situs (Law of)
Law of location
