Unit 2: Real Property + Forms of Ownership Flashcards
What is land?
Earth’s surface, downward, center, and upward. Includes permanently attached objects
What is real estate?
Land, and permanently attached objects
What is real property?
Real estate, interest, benefits, and rights with ownership
What is personal property?
Everything that is to real property. Also called chattel
What is improvements?
Artificial attachments to land (fence, buildings, walkways)
What is real property ownership include?
Rights of enjoyment, disposition, possession, control, exclusion, and others (EDPCE)
What are fixtures?
Anything permanently attached to land, or structures on land. Included with sale of real property unless negotiated.
What are the 5 basic tests to determine if a fixture is real or personal property?
Method of Annexation, adaptability for use, relationship of parties, intention in placing, and agreement of parties (MARIA)
What are the physical characteristics of land?
immobility, indestructibility, and uniqueness (non homogeneity)
What are the economic characteristics of land?
scarcity, improvements, permanence of investment, and situs (location)
What is a monument?
a permanent man-made or natural physical marker
What are the 3 primary form of legal descriptions?
lot and block, metes and bounds, and rectangular survey
What is the bundle of rights?
the right to use the physical components of land: the surface, subsurface, and air rights.
What is included in the bundle of rights?
air, water, mineral, possession, control, exclusion, enjoyment, and disposition
What is a fee simple?
also called fee, a form of ownership
What is tenancy?
possession (not ownership)
What is title?
evidence of ownership
What is an estate?
legal interest one has in property
What is interest?
a right or claim to property
What is a fee simple subject to a condition subsequent?
Estate that doesn’t end automatically when stated event/condition occurs. IF violated, original owner has to take action to resume ownership
What is a fee simple determinable?
Estate that ends automatically when stated event or condition occurs. Property will go back to original owner
What is a fee simple defeasible?
When property holders owns project subject to a condition. IF condition is breached, property goes back to original owner.
What does a fee simple convey?
All rights of ownership (use, disposition, and inheritability)
What is a leasehold estate?
Takes possession and control
What is a freehold estate?
Takes possession, control, and and title (ownership)
What is a percentage lease?
Lease where tenant pays base rent plus percentage of any revenue earned during business
What is a gross lease?
landlord pays all expenses related to the property and recoups these expenses in the rent rate
What is a net lease?
tenant pays one, two, or three of the taxes, insurance, and maintenance (TIM) expenses related to the property, in addition to the rent.
What is a lien?
claim against property made by someone in order to secure payment of a debt
What is a collateral?
asset that has been pledged by recipient of loan as security on value of loan
What is a subordination agreement?
arrangement a lien holder agrees to downgrade its lien priority to another lien holder
What is a legal description?
description of the land that specifies boundaries and location of a piece of real property
What is a survey?
professional on site measurement of lot lines, dimension of a property, location of any improvements on lot, any encroachments, and easements of public record
What is a life estate?
Based on life of person who holds estate
What is a loft lease?
provides for rental of floor space for open, loft style spaces
