Ownership Interest and Encumbrances Flashcards
Police Power
A states authority to preserve power, protect public health and safety and promote general wealth to citizens
Eminent Domain
The right of the government to acquire privately owned real estate for public use
Riparian Rights
The rights of the owner of the property along the banks of a river
Cooperative Ownership
Corporation holds title to the land and building
Townhouse ownership
Any type of house connected by walls
Encroachments
Occurs when all or part of a structure illegally extends beyond the land of its owner or beyond the legal building lines.
License
Personal Personal privilege, can be canceled by the licensor
Littoral rights
Rights of owners whose land borders commercially navigable by seas, lakes and oceans.
Accretion
Increases in the land resulting from the deposit of soil by the water action
Erosion
The gradual and imperceptible wearing away of land by natural forces such as rain, wind and flowing water
Avulsion
Sudden removal of soil by act of nature
Severity
Title is held by one individual
Co-Ownership
Title is held by two or more individuals
Trust
A third individual holds title for the benefit of another
Brokerage
The business of bringing people together in a real Estate Transaction
Appraisal
the process of estimating a properties market value based on established methods
Property management
A person or company hired to maintain and manage property on behalf of the owner
Financing
is the business of providing funds that make real estate transactions possible
Auctioning
Buying or Selling Real Estate at auction uses an open and competitive bidding process
Residential Property
Single or Multifamily housing in an urban, suburban or rural area
Commercial Property
Office Space, Shopping Centers, Stores, Theaters or Hotels
Industrial Property
Warehouses, Factories, Land in Industrial Districts
Special Purpose Properties
Churches, Schools, Cemeteries, and government held lands
Land
The earths surface extending downward to the center of the earth and upward toward infinity
- Immobility
- Indestructibility
- Uniqueness
Real Estate
Land, at, above and below the earths surface. Plus all things permanently attached to it.
Real Property
The Interests, benefits and rights that are included in the ownership of the land and real estate
Bundle of Legal Rights
- Possession
- Control
- Enjoyment
- Exclusion
- Disposition
Personal Property
Property that is MOVABLE, such as chairs, tables, clothes and money
Conversion
General name for converting personal property into real property or real property into personal property
Severance
the operation of converting real property into personal property (cutting down a tree, and making them into boards)
Annexation
the operation where personal property is converted into real property
Fixture
Personal property that has been so affixed to land that by law it becomes real property
Trade Fixture
Personal Property of a business owner, that when attached to a rented space or building remains personal property
Economic Characteristics of Real Estate
- Scarcity
- Improvements
- Permanence of Investments
- Location
Imobility
The geographic location of any given parcel of land that can never be changed
Indestructibility
Because land is indestructible, land does not depreciate
Uniqueness
No two parcels of land are exactly the same
Laws effecting Real Estate
- United States Constitution
- Laws passed by congress
- States Constitution
- States Statues
- Local Ordinances
- Common Law
Real Estate Licensing Act of 2000
Governs the practice of real estate in Illinois and to protect public from fraud, dishonesty and incompetence in real estate transactions
Government Control
Most government controls are on a local level
Zoning
A regulatory tool that helps communities regulate and control how land is used and limits the type of business in a given area
Subdivider
A person who buys undeveloped acreage and divides it into smaller lots for sale
Plat
A detailed map that illustrates the geographic boundaries of individual lots
Three methods to Real Estate
Metes and bounds
Rectangular
Lot and block
Metes and bounds
Used in illinois when describing irregular tracts
Rectangular
- Based on two intersecting lines, principles meridians and baselines
- principles meridians run north and south
- baselines run east and west
Ranges
Land on either side of the principle meridian
Remainder Real Estate
A third party who has future ownership interstate the property upon death
