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FI 534 Real Estate > Introduction to Real Estate > Flashcards

Introduction to Real Estate Flashcards

1
Q

All things attached to the land and all rights inherent with that land. General rule things that are immovable

A

Real Property

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2
Q

Property that is movable. That is, the asset is not fixed permanently to one location as with real property such as land or buildings. Examples include vehicles, furniture, boats, collectibles, etc.

A

Personal Property

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3
Q

Land and anything fixed, immovable, or permanently attached to it such as appurtenances, buildings, fences, fixtures, improvements, roads, shrubs and trees (but not growing crops), sewers, structures, utility systems, and walls.

A

Real Estate

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4
Q

Normally includes title to air rights, mineral rights, and surface rights which can be bought, leased, sold, or transferred together or separately. Also called real property or realty.

A

Title to real estate

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5
Q

Why is real estate considered a commodity?

A
  1. Utility to most people

2. Marketable in its own specialized area

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6
Q

What composes the real estate commodity?

A

Physical component > Land > “Dirt”
Physical Component > Improvements (in most cases) - “bricks & sticks”
Legal Component > Bundle of Rights

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7
Q

What is the physical concept of land?

A

Solid surface of the earth

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8
Q

What is the legal concept of land?

A

Bundle of rights; or the rights we obtain with owning the land.

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9
Q

Bundle of rights

A
  1. Posess
  2. Use
  3. Dispose
  4. Exclude others
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10
Q

What are improvements?

A

Physical concept: Anything that improves or develops land.

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11
Q

Includes land developments & utilities.

A

Improvements to the land

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12
Q

things added to the land

A

Improvements on the land

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13
Q

All things that are attached to property, such as ceiling lights, awnings, window shades and doorknobs.

A

Fixture

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14
Q

fixture in a a business and considered personal property. Supposed to take with after business is sold

A

Trade Fixture

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15
Q

How does personal property become a fixture?

A

Manner of attatchment - if it is screwed in or attached it should go with the property
Adaption of the object - custom built objects (drapes, curtains, entertainment center)
Relation of the parties - tenant has legal right to keep what is in it.
Intent of the parties - put in contract

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16
Q

Legal rights obtained when owning land?

Limits for air rights?

A

surface right
mineral (subsurface) rights
air rights (no more than 20,000 ft below ground and 1500 above ground).

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17
Q

River or Stream rights.

A

Riparian rights

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18
Q

Ocean, Seas, and Large lake rights

A

Littoral rights

19
Q

Right to make money off your property by leasing it or borrow money on your property by mortgaging it.

A

Financial rights

20
Q

Ownership rights

A

Freehold estate

21
Q

There must be actual ownership in the land and improvements and the estate must be of unpredictable duration.

A

Freehold estate

22
Q

Most complete form of ownership. The most extensive interest in real property that an individual can possess, since it is limited completely to the individual and his or her heirs and assigns forever, and it is not subject to any limitations or conditions.

A

Fee Simple Estate

23
Q

If no restrictions are placed on the owner of a fee simple estate through their title, does this mean they can do anything they want with the land?

A

No zoning by government restirctions

24
Q

This is ownership that lasts only as long as the owner is alive. The property transfers back to the original owner at death through reversion. The designated future owner has a remainder interest and will eventually own the property fee simple.

A

Life Estate

25
Q

Which right of the bundle of rights does this

A

Dispose

26
Q

Although there is posession of land there is not ownership of land. The estate is for a definate duration.

A

Leasehold Estates

27
Q

Where induviduals can own a fractional interest of the property. For example

Developer invest in a property with differing amounts of equity (cash invested):

  • Owner A has 50%
  • Owner B has 30%
  • Owner C has 20%
A

Tenancy in common (TIC)

28
Q

Co-Ownership, has the right to survivorship. Reverts to other owner at death. Each person has a 50 percent ownership of that piece of property. If one person dies, the other person automatically owns 100 percent of the property.

A

Joint Tenancy

29
Q

Normal marriage ownership

A

Tennancy by the entirety

30
Q

Wifes life estate in the property of her deceased husband.

A

Dower

31
Q

Husbands life estate in the property of his deceased wife

A

Curtesty

32
Q

Each Spouse has an equal percentage in th property due to the joint effort of marriage. Upon death 1/2 interest goes to the heirs and the other 1/2 stays with the spouse. (some states are changing this law to survivorship).

A

Community Property

33
Q

Co-ownership, owns condo, halls are separte

A

Condominium

34
Q

People own the whole building and lease the space. Cannot get a mortgage on this form of ownership.

A

Cooperative

35
Q

Buy ownership for a limited period of time.

A

Timeshare

36
Q

Homogeneous products (to an extent)
National markets with easy product supply and transport
Large supply of buyers and sellers
Public transactions (perfect knowledge)
Products are priced and sold (with few exceptions)

A

Characteristics of an efficient market

37
Q

Heterogeneous products
Localized markets with an illiquid product.
Segmented markets with a limited number of buyers and sellers
Proprietary transactions
Sequential bidding (Negotiation)

A

Characteristics of Real Estate Markets

38
Q

Real estate professionals

A

Real Estate Agent, Broker
Mortgage banker, originator, underwriter
Real Estate Appraiser, Tax Assessor
Real Estate Attorney and/or Title Insurer
Property Manager, Asset Manager
Real Estate Developer, General Contractor, Subcontractor
Urban Planner
Real Estate Investors (houses, REITs, land, etc.)Lan

39
Q

The right of the government to regulate for the purpose of promoting the health, safety, and welfare of the public (zoning, building codes, and subdivision regulations).

A

Police Power

40
Q

The right of a government to take property for public use. Just compensation must be paid to the owner. The government exercises the right to take the property by the process of condemnation.

A

Eminent domain

41
Q

The right of a governement to charge a property owner

A

Taxation

42
Q

Escheat

A

When a property owner dies intestate, that it, leaves no will and no heirs can be found, the property reverts to the state or county.

43
Q

Government Powers

A
  1. Police Power
  2. Eminent Domain
  3. Taxation
  4. Escheat

FI 534 Real Estate (8 decks)

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