PA - Focused Set Flashcards
What is an easement?
the right to use another’s land for a specific purpose, or to prevent the land’s owner from using it for a specific purpose
legal instrument and recorded
What is a utility easement?
allows a utility company to enter the property to install and maintain utility lines above or below the ground
within the boundaries of the easement
no permanent structures can be erected within the easement without the utility company’s consent
What is an access easement?
if a parcel of land is not served by a public road, an access easement may be granted that gives the landowner and the public the right to cross an adjacent property
What is a support easement”
for the construction of common party walls between properties
What is a joint use easement?
allow two or more property owners to share a common feature such as a driveway
What is a scenic easement?
protect views and development in scenic areas
What is a conservation easement?
A conservation easement is a voluntary, legal agreement that protects the natural resources of a parcel of land by restricting future land use and/or development on the property “in perpetuity” (permanently).
What is a right of way?
Right-of-way - the legal right of one party or the public to traverse land belonging to another
Often refers to the public land used for streets and sidewalks
What is a restrictive deed?
a deed to a property that contains a provision that restricts the use of the property by the buyer
- Legal and enforceable if they are reasonable and in the public interest
- Often used in residential subdivisions to maintain a desired uniformity of appearance
What is an affirmative covenant?
requires a buyer to perform a specific duty in the future (ex. Construct and maintain a fence)
What is a conditional covenant?
permits the title to the property to revert to the original owner if the restrictions prescribed in the deed are not followed
What are the four levels of historic preservation (from most stringent to least)?
Preservation
Rehabilitation
Restoration
Reconstruction
What does preservation entail?
Attempts to retain all historic fabric through conservation, maintenance, and repair
What does rehabilitation entail?
Emphasizes the retention and repair of historic materials, but gives more latitude to replacement, typically because the property is more deteriorated before work begins
What does restoration entail?
Focuses on the retention of materials from the most significant time in a property’s history, while permitting the removal of materials from other periods
What does reconstruction entail?
The least historically accurate approach
Allows the opportunity to re-create a non-surviving site, landscape, building, structure, or object in new materials
What does a special sales tax entail?
Any tax that is imposed for a specific purpose or by a single-purpose authority
Requires a majority vote of the people of the district
What is a general obligation bond?
Issues by a city or state and backed by general tax revenue and the issuer’s credit
Typically used to finance the acquisition or construction of specific public capital facilities (schools, museums,
libraries), and to purchase real property
Jurisdiction issuing the bond has the authority to levy a property tax to repay the bond, usually over 10-30 years
Requires majority vote of the people
What is a revenue bond?
Revenue Bonds or Rate-Supported Bonds
Similar to general obligation bonds
Revenue bonds are backed by the revenue that will come from customers who use the services that the bonds
funded
What is a public enterprise revenue bond?
Public Enterprise Revenue Bonds
Bonds issued by cities or counties to finance facilities for revenue producing public enterprises
Bonds are paid off from revenues generated by the facilities through the charges they impose
Airports, parking garages, hospitals
What is Tax Increment financing?
Tax-Increment Financing
Used by a city to pay for improvements that will encourage private development in an area generate increased
taxes due to increased property values
City creates a special district and makes public improvements within that district
Dose not require a vote by the people in the district
What are development impact fees?
Development Impact Fees
Imposed on developers in order to pay for the improvements to off-site infrastructure (roads, utilities, fire and police
departments) that the new development makes necessary
Exactions - hookup fees for utility service
Controversial - where does the money go?
What are subdivision exactions?
Similar to development fees in that they put a burden on the development, but subdivision exactions are not used to
fund construction
Requirements that developers either dedicate some land for public use or contribute cash for the purchase of land
and facilities by local governments
What are special district assessments?
Used to fund public space improvements (parks and streetscapes)
Increases and area’s appeal, and therefore property values
A special tax district is established that encompasses the properties that will benefit from the proposed
improvements
Majority of property owners in the area must agree
Not intended to encourage private development
What is a mortgage loan?
Used to purchase property
Borrower grants the lender a lien on the property until the loan is repaid
Most common way people purchase home
What is a blanket loan?
Often used to fund the purchase of a large piece of real estate that the borrower intends to subdivide and resell as smaller parcels
What is a bond?
A type of debt security issued by a government entity to raise money for a construction project
Issuer of the bond receives money from the buyer, and in exchange the issuer promises to repay the principal with
interest on a later date
Typically sold to individual investors and investment companies
What is a bridge loan?
A short-term loan used to purchase property or finance a project quickly, before long-term financing can be arranged
What is a construction loan?
Used to finance the building of a project and is in effect only for the duration of construction
Once construction is complete, the loan must be converted into a long-term, permanent loan
What is a hard money loan?
A relatively short-term loan used when there is a distressed financial situation such as foreclosure, bankruptcy, or
nonpayment of a previous loan
Based on the quick-sale value (usually significantly less than market value) of an asset such as a parcel of land or
other real estate
High interest rates
What is a mezzanine loan?
Secured by collateral in the stock of the development company rather than in the developed property
In the event of default, the lender can seize the assets of the borrower more quickly than with a standard mortgage
loan
Often used by developers for large projects
What is a pro forma statement?
Statement or model of all the expected expenses (both initial and long term) of developing a project, compared to
the expected income and increase in value of the project
Created by the developer in order to determine whether a project is likely to be financially successful
How many sf is one acre?
43,560 sf
construction type I & II
noncombustible, allowing for bigger buildings but more restrictions on usage of materials
construction type III
noncombustible exterior walls and interior building elements of any material allowed by code
construction type IV
Heavy Timber, exterior walls are of noncombustible material and the interior building elements are of solid or laminated wood without concealed spaces
construction type V
Type V construction is where the structural elements, exterior walls and interior walls are of any material allowed by code, combustible or noncombustible (shorter buildings)
level 1 alteration
removing, replacing, or covering something with a new material, equipment, or fixture; the new material, equipment, or the fixture serves the same purpose as the previous one
level 2 alteration
reconfiguring the space, adding or removing an element (ex. door) from space, extending, reconfiguring, or installing a new system
