PSI Exam Prep: Property Ownership Flashcards
The earth’s surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects
Land
Land, plus all things permanently attached to it naturally or artificially
Real estate
Real estate, plus the interests, benefits, and rights included with real estate ownership
Real property
Artificial attachments to land that include things such as fencing, buildings, and walkways
Improvements
Enjoyment, disposition, possession, control, and exclusion; often referred to as “bundle of rights”
Ownership rights
Everything owned that is not real property, aka chattel
Personal property
Five basic tests to determine if an item is real or personal property: MARIA
METHOD of annexation: Attached or not
ADAPTABILITY for use: if removed, it will drastically change
RELATIONSHIP of the parties: buyer vs seller or tenant vs landlord
INTENTION in placing: if temporary or permanent
AGREEMENT of the parties: all parties agree
Anything permanently attached to the land or to permanent structures on the land. are part of real property and are included (conveyed) with a sale of real property unless the parties negotiate differently.
Fixture
These Cultivated crops and are considered personal property, even though they’re part of the soil.
Emblements
Owners don’t need to dig up the crops and take them when the land is conveyed, but those owners are entitled to the fruits of their labor and can harvest the crop when it’s ready (even if the land has transferred to a new owner).
Yes
The process of converting personal property to real property.
Annexation
This is anything that’s attached to leased land or structures that’s used in conducting business. Rights and responsibilities differ depending on the commercial lease agreement, but usually tenants may remove trade fixtures when the lease terminates. They must repair any damage created by removing the fixtures.
Trade fixture
Real property is conveyed from one owner to another using a deed. Personal property is transferred using a
bill of sale or receipt.
The geographic location of land is fixed and can’t be changed.
Immobility
Improvements may deteriorate over time, but not land itself.
Indestructibility
One piece of land is never exactly like another.
Uniqueness
You can’t make more land; what we have now is what we’ll always have.
Scarcity
A land’s value can be positively or negatively affected by the improvements made on it.
Improvements
Some improvements are long-term, stable investments with stable returns over time.
Permanence of investment
A property’s value depends in large part on its location
Situs/location/area preference
it permits a specific parcel of property to be located by a trained surveyor.
A legal description
Three primary types of legal descriptions
metes and bounds, lot and block (also known as recorded plat), and rectangular government survey system (RGSS)
These are the direction and distance of a line forming the property’s boundary
Metes
these are physical features that define the boundaries of the property.
bounds
These descriptions are characterized by a point of beginning, which is where the description both begins and ends. It also uses monuments to mark boundaries.. The monuments are thought to have more credibility than the measurements.
Metes-and-bounds
A permanent physical marker used in a metes-and-bounds description that can be man-made or natural. It may be a tree, creek, rock, or a stake placed in the ground.
Monument
it divides land into townships and further into sections and fractions called sections.
The rectangular government survey system
it is the north-south line that runs through an initial point in the RGSS. These descriptions also use compass point directions (northwest; southeast; etc.).
The principal meridian
it is the east-west line from which measurements originate.
The base line
these lines of a survey are called township lines
East-west lines
north-south lines are called
range lines.
How many named principal meridians are in the U.S.?
37
it is described by referencing the principal meridian and base line that is appropriate to the township in which the parcel is located.
parcel
it is six miles square or 36 square miles
township
it is one square mile, which is also one mile squared.
section
this legal description looks like this (and is read right to left): S ½ SE ¼ NW ¼ Section 14, Township Clarkson
A rectangular government survey system
it begin with a reference to either metes and bounds or RGSS, then divide the land into lots with numerical descriptions of each parcel. A plat with the lot descriptions is recorded in the land records. it include streets, access roads, and other important features.
Lot-and-block systems
Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds
A lot and block legal description
length × width ei (6 × 4)
Area of rectangle
side × side (4 × 4)
Area of square
1/2 base length × height
Area of triangle
One square yard =
nine square feet
Square feet ÷ nine =
square yards
Square yards × nine =
square feet
What does ANSI stands for?
American National Standards Institute
what does the American National Standards Institute (ANSI) do?
sets standards for measuring structures.
these can only be included if attached to the main property via stairways or hallways.
Finished spaces
Example
The living room of Trixie’s house is 15 feet by 13 feet. The dining room is 12 feet by 13 feet. How many square feet is this entire area?
(15 × 13) + (12 × 13) = 195 + 156 = 351 square feet
Jonathan’s 3,200 square foot home sold for $425,000. The price per square foot is
$425,000 ÷ 3,200, or $132.81.
What does GLA means?
Ground Living Areas
GLA may include stairways and closet and finished attic or basement square footage if ceiling height is at least
seven feet.
Covered, enclosed exterior areas are included only if they’re heated using
the same heat system
Additional finished buildings are usually included only if they’re attached to the main house by
a hallway or stairway.
these include corridors, meeting rooms, lobbies, restrooms, and a proportionate share of any common areas and a typically excludes common areas, elevator shafts, stairways, and HVAC and other system equipment areas.
rentable areas
One acre =
43,560 square feet (memorize this one)
Square feet ÷ 43,560
acres