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Principles of Real Estate 1 > Study Guide > Flashcards

Study Guide Flashcards

1
Q

Brokerage

A

overseeing the needs of the parties to a real estate transaction and seeing to its completion

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2
Q

Appraisal

A

providing a professional opinion of the value of real property

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3
Q

Appraiser

A

licensed or certified individual who provide the informed decisions of the value of real property

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4
Q

Mortage Lending

A

the business of providing money to individuals or corporations for the conditional transfer or pledge of real estate as security for the payment of a debt

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5
Q

Property managers are responsible for:

A

Day-to-day operations
Maintenance
Tenant relations
Keeping proper accounts

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6
Q

works for a firm that specializes in locating units for tenants in multifamily complexes

A

Apartment Locator

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7
Q

he business of providing a limited visual and general inspection of a property
by an inspector

A

Home inspection

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8
Q

Involves the acquisition of land for development into residential subdi
visions, retail centers, and other commercial uses.

A

Real Estate Development

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9
Q

Individual who is employed by oil and gas companies to do title work to deter
mine mineral ownership

A

Petroleum landman

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10
Q

BENEFITS OF HOMEOWNERSHIP

A
  • Security
  • Investment
  • Occupancy
  • Tax Benefits
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11
Q

land does not move; you must go to the land

A

Immobility

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12
Q

land does not wear out; it cannot be destroyed

A

Indestructibility

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13
Q

no two pieces of land are exactly alike; they don’t occupy the same place

A

Nonhomogeneity

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14
Q

PHYSICAL CHARACTERISTICS OF LAND

A

Immobility
Indestructibility
Nonhomogeneity

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15
Q

comes from the theory of supply and demand

A

Scarcity

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16
Q

refers to the fact that value is affected by man-made changes to the land

A

Modification

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17
Q

refers to the fact that land, and additions to the land such as buildings, take long
period to pay for themselves

A

Fixity

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18
Q

refers to the location of the property or land from an economic, not a geographic
viewpoint

A

Situs

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19
Q

ECONOMIC CHARACTERISTICS OF LAND

A

Scarcity
Modification
Fixity
Situs

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20
Q

An economic relationship of the quantity of a commodity a person wants to sell at certain prices and
the quantity a consumer wants to buy at various prices.

A

SUPPLY AND DEMAND

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21
Q

Demand is affected by

A

availability of credit
personal preferences
growth in employment

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22
Q

a body of law developed in England and based upon “common sense” and local
custom

A

Common Law

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23
Q

body of laws and enacted by federal and state legislative bodies

A

Statutory Law

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24
Q

passed in 1939 to protect the public against unscrupulous brokers
and sales agents in a real estate transaction

A

Texas Real Estate License Act

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25
Q

TEXAS REAL ESTATE COMMISSION May assess an administrative penalty of up to $______________ per day

A

5000

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26
Q

May issue or revoke real estate licenses

A

TEXAS REAL ESTATE COMMISSION

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27
Q

TEXAS REAL ESTATE COMMISSION is a nine-member commission, created in _________, to carry out the provisions of the License Act

A

1949

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28
Q
  • Defined as the surface of the earth, extending downward to the center of the earth and upward
    above the surface to infinity.
  • Includes natural things such as trees, crops, and water.
A

LAND

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29
Q

Rights that a person has in the land

A

Bundle of rights

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30
Q

Everything that is encompassed with land, including man-made additions (improve
ments) such as roads, houses, and commercial buildings

A

Real estate

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31
Q

Physical real estate plus the rights an individual has in the land
A broader term, stretching beyond the physical real estate that includes the rights that a per
son has in the land

A

Real property

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32
Q

Any permanent man-made addition to the land is considered to become part of the land
Such as buildings, landscaping, fences, patios, decks, roads, curbs

A

Improvements

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33
Q

EMBLEMENTS

A
  • Annual crops produced with labor
  • Attached to the land
  • Personal property
  • Belong to the person who planted them
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34
Q

The rights to oil, gas, and other minerals.
Commonly conveyed through a lease, mineral deed, or by reservation.

A

SUBSURFACE RIGHTS

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35
Q

Personal property that has been attached in such a way that it has become part of the real
property
Ceiling fans, window coverings, wall-to-wall carpet
Remain with the property when sold

A

FIXTURE

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36
Q

THREE TESTS OF A FIXTURE

A

Method of Attachment – permanent attachment
Adaptation – how it fits in
Intention of the parties – often considered the most important test

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37
Q

Extend above the surface without limitation.

A

Air Rights

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38
Q

Air rights can be

A

leased
sold
mortgaged

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39
Q

he right to develop (improve) the surface and use the resources extracted from or
near the surface, including stone, gravel, water, and limestone

A

Surface rights

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40
Q

To be cut off from
Surface rights, subsurface rights, and air rights may be removed from ownership

A

Severable

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41
Q

The process of real property becoming personal property

A

Severance

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42
Q

The right to use wind above a property

A

Wind rights

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43
Q

PERSONAL PROPERTY:

A

Chattel or Personality.
Something movable or temporary in nature.
Everything that is not real property
Transferred with a Bill of Sale
Freestanding

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44
Q

land can be privately owned by individuals

A

Allodial system

45
Q

The right of the government to regulate and control the way land is used
The most common example of police power is zoning
A change in a zoning law may create a non-conforming use of the property

A

Police Power

46
Q

The right of the government to take private land for public use.
The action of taking the land is called condemnation

A

EMINENT DOMAIN

47
Q

The right the government retains to tax real property
Property taxes are ad valorem taxes
According to value
Create the highest priority lien on real property
Always paid first at a foreclosure sale

A

Taxation

48
Q

separates one land use from another, such as residential use from commercial use

A

Buffer zone

49
Q

ESCHEAT

A
  • If a person dies intestate (without a will) and without heirs, the government will take title to
    his real property under the right of escheat.
  • If the property is abandoned, escheat will also be the solution.
  • The government does not want land to be unowned.
  • Note: Single, without children does not mean without heirs.
50
Q

Fee Simple or fee simple absolute is ownership with the most rights in land
Ownership of real property

A

FREEHOLD ESTATES

51
Q

Interest in real property that is less than a freehold estate

A

LEASEHOLD ESTATES

52
Q
  • Specific starting date and ending date
    • Survives the sale of the property and death of the landlord or tenant
A

Estate for years

53
Q
  • Automatically renews for like periods of time
    • Termination notice needed
A

Periodic estate

54
Q
  • May be terminated by either party at will
    • Terminates upon the landlord’s death
A

Estate at will

55
Q
  • Tenant remains on the property after the lease expires
    • Tenant becomes a “holdover tenant”
    • When a landlord accepts rent from a holdover tenant, the landlord creates a holdover
      tenancy
A

Tenancy at sufferance

56
Q
  • Gives possession without ownership
  • Personal Property
  • Binding on the heirs of the landlord and the tenant
A

Lease

57
Q

Estates created by statute or law

A

Statutory estates

58
Q
  • Protects a property someone lives in from forced sale
  • Automatic
  • Cannot be waived
A

HOMESTEAD PROTECTION

59
Q

Exceptions to Homestead Protection

A
  • Ad Valorem tax foreclosure
    • HOA/POA foreclosure
    • Mechanics and Materialman’s Lien (M and M Lien)
    • Purchase loan foreclosure
60
Q

A right or privilege that creates an interest in land that is less than ownership or possession
but nonetheless exists
liens, easements

A

EQUITABLE ESTATES

61
Q

CATEGORIES OF LIENS

A
  • General vs Specific
  • Voluntary vs Involuntary
62
Q

Attaches to one or more specific properties

A

SPECIFIC LIEN

63
Q

Specific Liens include:

A
  • Mortgage
    • Mechanics and Materialman’s lien
    • Ad Valorem Tax lien
64
Q

Attaches to everything a person owns

A

GENERAL LIEN

65
Q

General Liens include:

A

IRS judgement
Judgements

66
Q

a lien that is freely given like a mortgage

A

Voluntary lien

67
Q

a lien that is placed on the property against the wishes of the property owner,
like judgments and tax liens

A

Involuntary lien

68
Q
  • rights or privileges create an interest that is less than ownership or possession but nonetheless
    exists
  • place limitations on property owners
  • liens, easements, encroachments, restrictions, and leases
A

ENCUMBRANCE

69
Q
  • a right or privilege, or improvement that belongs to and passes with land but is not necessarily
    a part of the land
  • Easements
  • Leases that are binding on a new owner when the property is sold
  • Fixtures
  • Buildings and other improvements
A

APPURTENANCE

70
Q

The intrusion of one’s property onto another’s property

A

Encroachment

71
Q

The right to use someone else’s property

A

EASEMENT

72
Q

The easement is specifically given by one party to the other. “A” sold lot “B” and
granted the easement in the deed.

A

Grant

73
Q

The seller, in granting property to a buyer, reserves an easement in the deed.
“B” sold lot “A” and reserved the right to cross over “A” in the deed.

A

Reservation

74
Q

In selling lot “B,” “A” did not explicitly grant the easement in writing but
implied in word or action that access to property “B” would be by an easement

A

Implied grant

75
Q

Continuous use of the land over some time without the owner’s permission
may establish the right to use the land. (An encroachment is the unauthorized intrusion of
another’s property onto an adjoining property. An encroachment that is allowed to remain
can eventually acquire the right to be there.)

A

Prescription
Prescription may also be called limitation.

76
Q

The court requires the easement or states it is necessary for the benefit of the
owner. (Usually in the case of “landlocked” property.)

A

Necessity

77
Q

The government, under its power of eminent domain, takes an easement.
The government will take an easement for itself, the utilities, or the railroads.

A

Condemnation

78
Q

Bringing two or more properties together, May terminate an easement

A

MERGER

79
Q

The right of a landowner to use water that borders a property.

A

Water rights

80
Q

The right to use water from a lake, ocean, or sea

A

Littoral Rights

81
Q

The right to use water from a river or stream

A

Riparian Rights

82
Q

a parcel of land that has never been developed

A

Greenfield

83
Q

a parcel of land capable of redevelopment

A

Greyfield

84
Q

a site known or suspected to be hazardous that is usually occupied by industrial manufacturers or chemical plants. Has the highest potential to be hazardous

A

Brownfield

85
Q

A home that is not attached to another dwelling.
Often situated in a subdivision of similar properties unattached to each other

A

SINGLE FAMILY HOME

86
Q

Multifamily complexes containing units with individual fee simple ownership of
the unit and interest in common areas

A

Condominium

87
Q

Buildings owned by a corporation with shares of the corporation owned by the occupants of
the building.
The occupants have a proprietary lease on their unit.
Not real property.

A

Cooperative

88
Q

Distinct living unit on an individual lot that shares a common wall with another unit

A

Townhome

89
Q

Building types or combinations of buildings that allow mixed use like
residential, office, retail, and entertainment spaces.

A

Mixed-use development

90
Q

The owner has the right to occupy a property for a specified time interval, often by the week.
Often condominiums that are situated in resort areas.

A

Timeshare

91
Q

The profit on the sale of an asset
Tax Exempt limits $250,000 for an individual return and $500,000 if married and filing
jointly

A

CAPITAL GAIN

92
Q

The market value of a property less the outstanding debt

A

Equity

93
Q

A contract between the insurance company and the policyholder covering a private residence
covering losses related to the main structure, outbuildings, contents, and personal liability
Does not cover flooding

A

HOMEOWNERS INSURANCE

94
Q

A claims history database that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy

A

Comprehensive Loss Underwriting Exchange (CLUE)

95
Q

Windstorm Insurance

A

Insurance underwritten in Texas by the Texas Windstorm Insurance Association (TWIA) to cover wind and hail damage on properties along the gulf coast.

96
Q

Flood insurance

A

Insurance through the National Flood Insurance Program (NFIP) to cover properties that
flood. Standard homeowner insurance does not cover flooding

97
Q

Insurance for personal property within a building

A

Personal Property Coverage

98
Q

A sole individual or entity owns real estate

A

Estate in Severalty

99
Q

Ownership of real estate by two or more unmarried owners

A

Co-ownership

100
Q

Ownership of real estate by two or more entities in the undivided interests
The most common type of co-ownership
Ownership passes to heirs

A

TENANCY IN COMMON

101
Q

A type of co-ownership with the right of survivorship
Four unities of joint tenancy are time, title, interest, and possession
A poor man’s will

A

JOINT TENANCY

102
Q

In some states, ownership by spouses
Not recognized in Texas
A type of joint tenancy

A

Tenancy by the Entirety

103
Q
  • A concept of Spanish law, and marriage is regarded as a partnership, rather than husband and
    wife becoming one as in English law.
  • Most property acquired during a marriage is owned equally by both spouses and cannot be
    conveyed or sold without the signature of both parties
  • Property inherited by one spouse may remain separate property
  • Income or profit from separate property may remain separate property
A

COMMUNITY PROPERTY

104
Q

Entities An entity created for the benefit of another

A

Trusts

105
Q

A business venture that is owned by one individual.

A

Sole proprietorships

106
Q

A business venture created with an agreement between more than one person

A

Partnership

107
Q

Ownership by a corporation. A corporation is an entity that can own real
estate.

A

Corporate ownership

108
Q

Gives the owner the right to occupy the property for a certain time period, typically
by the week

A

Timeshare

109
Q
A

Principles of Real Estate 1 (13 decks)

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