Term
|
Definition
| An opinion/estimate value for a specific purpose, person, property, date (time), & based on either stated facts (as-is) or some set of assumptions (pro forma) |
|
|
Term
|
Definition
| Land & all things permanently attached to it (known as fixtures) whether man made or natural |
|
|
Term
|
Definition
| Real estate and the bundle of rights that go along with the ownership or control over the property |
|
|
Term
|
Definition
| Property that's not considered real property; it's not permanently affixed to the land |
|
|
Term
|
Definition
| (actually personal property); may be attached to the land, but for specific business/occupational use and is usually removed upon disposition of the property. |
|
|
Term
|
Definition
| Personal property that has been affixed to the land or a structure so it becomes part of real estate |
|
|
Term
| Tests used to determine if something is a fixture or personal property |
|
Definition
1. Intent
2. Method of annexation (permanence).
3. adaptation; how the property is used
4. agreement
5. relationship of the parties |
|
|
Term
|
Definition
| the process of converting personal property into fixtures by attaching to or making part of real estate |
|
|
Term
|
Definition
| the process of removing fixtures and converting them back into personal property |
|
|
Term
| What are the bundle of rights that go with real estate (and make up real property)? |
|
Definition
| control, disposition, enjoyment, exclusion, possession (Cdeep!) |
|
|
Term
|
Definition
| both public and private restrictions; restrictions are non-possession interests in real estate (known as estates). |
|
|
Term
|
Definition
| an interest in land or real property that lasts for an indeterminable amount of time |
|
|
Term
|
Definition
| an interest in land or real property that lasts for a FIXED period of time |
|
|
Term
|
Definition
| (type of freehold estate) recognized by law as the best/most interest you can have in a property; limited only by public and private restrictions (Ex: zoning, restrictive covenants, public utility, easements, etc.) |
|
|
Term
|
Definition
| (type of freehold estate) limited to the duration of the life of the owner or the life of another designated person(s) |
|
|
Term
|
Definition
| (type of fee simple estate) recognized by law as the best/most interest you can have in a property; limited only by public and private restrictions (Ex: zoning, restrictive covenants, public utility, easements, etc.) |
|
|
Term
|
Definition
| similar to fee simple absolute, but with condition; the new owner must not use the land in a certain manner, or it goes back to the previous owner (right or re-entry) |
|
|
Term
|
Definition
| (type of life estate) owner has full ownership for the duration of thel ife estate, then its passed on to another person designated by the original owner or back to the original owner. (not necessarily for duration of owner's life; maybe another person's life). |
|
|
Term
|
Definition
| (type of life estate), but not created voluntarily by property, but established by state law (happens automatically with certain events). |
|
|
Term
|
Definition
| both public and private restrictions; restrictions are non-possession interests in real estate (known as estates). |
|
|
Term
| Events leading to state law established life estates |
|
Definition
| Dower (spouse has interest in property automatically), Curtesy (granted by courts to husband of deceased wife), Homestead (family home (not rental) exempt from sale by some judgement creditors (<$20,200) unless there is a mortgage, in which case the bank can force sell to collect debt) |
|
|
Term
| Ordinary with Remainder or Reversion |
|
Definition
| when a life estate is based on the life tenant's life |
|
|
Term
| Pur Autre Vie with Remainder or Reversion |
|
Definition
| "for the life of another"; may be for the duration of another person's life (not necessarily the owner's) |
|
|
Term
|
Definition
| owner= 65+, permanently & totally disabled, surviving spouse is one of these. Owner must apply (not automatic)and could = low general estate taxes |
|
|
Term
|
Definition
| Liens, Encumbrances (deed restrictions, easements, licenses, enroachments), government or police powers (zoning, eminent domain, taxation & escheat |
|
|
Term
|
Definition
| charge agains a property to satisfy a debt or obligation of the property owner (almost always monetary). Ex: taxes, mortgages, judgements, homeowner association dues, etc. |
|
|
Term
|
Definition
| a claim, charge, or liability that attached to real estate (not always monetary). Cannot sell/dispose of property without satisfying encumbrance |
|
|
Term
| Categories of Encumnrances |
|
Definition
1. Restrictions (Deed restrictions): private agreements affecting land/real property use.
2. Easements: right to use land of another for specific purpose (giving= servient tenement, receiving= dominant tenement).
3. Licenses: personal privilege given by the owner to enter their land for a specific purpose (can be oral).
4. Enroachment: when all or some structure illegally goes into neighbor's property. |
|
|
Term
|
Definition
1. Appurtenant Easements: two adjacent properties owned by different people, but rely on each other.
2. Easement by Prescription: claimant has continuous, obvious (to owner) use of the owner's property (tacking=by multiple people)
3. Easement in gross: individual interest/right to use someone else's land (Ex: for railroads/sidewalks)
4. Easement by condemnation: property acquired through eminent domain for public purpose |
|
|
Term
|
Definition
| Government's right to take property for the good of the public at large |
|
|
Term
|
Definition
| when a person dies and doesn't have a will, descendants, heirs, etc., the property goes to the state |
|
|
Term
|
Definition
1. Ad Valorem taxes: general taxes on real estate (Exceptions: schools, chrurhes, parks, homesteads, etc.)
2. Special Assessment and Improvements Taxes |
|
|
Term
|
Definition
1. Riparian rights: if property is on river, etc., can use water if not contaminating it and own to the center of the body
2. Littoral rights can use water, but land extends only to the mean high-water mark (not to the center) |
|
|
Term
|
Definition
| Metes & Bounds, Rectangular (Government) survey, Lot & Block System |
|
|
Term
|
Definition
| oldest type of legal description (common in rural/agricultural areas). Metes=distance, bounds=compass directions/angles. Property traced in linear measurements (noting natural and artificial monuments) |
|
|
Term
| Rectangular Survey System |
|
Definition
| (or government survey system) est in 1785. Land divided into rectangles based on intersection of meridian (N/S) and base (E/W) lines. Then further divided into townships. Range lines = closer at the poles; correction lines (every 4th township) reset measurement. (range lines=6 miles apart at correction lines) |
|
|
Term
|
Definition
| (or recorded plat system) Uses #'s referred to in plat maps in county's public records. More common in municipalities and subdivisions. Two steps: 1. land described by metes & bounds or rectangular/government survey. 2. then broken into smaller parcels. |
|
|
Term
|
Definition
| When an owner subdivides their land into 2+ lots, any one of which is <5 acres, the owner must have the land surveyed and a plat prepared and recorded with county recorder's office |
|
|
Term
|
Definition
| 1. Individual (co ownership or severality which is one person) 2. trusts 3. ownership by business organizations 4. corporate associations (condos, timeshares, cooperatives, PUD, etc.) |
|
|
Term
|
Definition
| each tenant (owner) has undivided fraction of interest in property (property's not divided). Co owners have unity of possession/ Tenents can sell their half of interest without the other man's permission. When one dies, their portion of land goes to where they specified in their will |
|
|
Term
|
Definition
| similar to tenents in common, but have unity in time, possession, title, and interest. When one owner dies, their share goes to the other owner |
|
|
Term
|
Definition
| a device by which one person transfers ownership of property to another (the trustee)to hold the property for the benefit of another (the beneficiary) |
|
|
Term
| Real Estate Investment Trusts (REITs) |
|
Definition
| typically large corp-like entities that receive special tax treatment if they meet certain criteria. |
|
|
Term
|
Definition
| established during the person's lifetime |
|
|
Term
|
Definition
| established after a person's death |
|
|
Term
| Elements of a Valid Contract |
|
Definition
| 1. Offer & Acceptance 2. Consideration 3. Capacity 4 Legal Purpose (+ sometimes 5. statute of frauds; put it in writing) |
|
|
Term
|
Definition
| A legal concept that the final contract contemplates all prior offers and counteroffers, all terms, subjectivities, contingencies, and that nothing implies/expressed outside of the final contract will supersede/alter it in any way |
|
|
Term
| How to discharge (or terminate) a contract |
|
Definition
| performance, rescission (cancellation) by both parties, release by one party of the other's obligations, novation (new contract replaces the original), reformation (correcting mistakes/clarifying terms in contract), assignment (replacing one party with another in existing contract), breach of contract |
|
|
Term
|
Definition
| written instrument used to voluntarily and intentionally transfer ownership and/or rights in real property (grantor -> grantee). must be accepted by grantee to be in effect |
|
|
Term
|
Definition
| Grantor gives all their rights to the grantee (doesn't guarantee there's no outstanding claims owned/held by others against the property). |
|
|
Term
|
Definition
| BEST type of deed to have! Grantor gives property to grantee cleanly; free of encumbrances (exceptions: real estate taxes, easements for public utilities, government/police powers(Ex:zoning)) |
|
|
Term
|
Definition
| has no warranties that the grantor holds title and possession of the property. (sometimes used in foreclosure and tax sales) |
|
|
Term
|
Definition
| convey property to a trustee to hold the property for the benefit of another (beneficiary) |
|
|
Term
|
Definition
| used when property is sold by court order and contains no warranties |
|
|
Term
|
Definition
| when a county sells property to satisfy tax lien (similar to bargain and sale deed) |
|
|
Term
|
Definition
| WORST type of deed to have! Grantor doesn't promise/claim/guarantee ownership/rights in the property to the grantee (which could be none!) |
|
|
Term
|
Definition
| AKA leasehold state. conveys right to use property for a period of time, but doesn't convey ownership |
|
|
Term
|
Definition
| for apartments, homes, vacation properties, time shares, etc. |
|
|
Term
|
Definition
| can be one or more types of property; industrial, retail, office building, warehouses, etc. There are several types |
|
|
Term
|
Definition
| type of commercial lease. tenant pays specified amount over time and maintains the property while owner pays real estate taxes and insurance |
|
|
Term
|
Definition
| type of commercial lease. rental price amount is dependent upon the tenet's income and the rent payment is a fixed percentage of that income |
|
|
Term
|
Definition
| type of commercial lease. condition/amendment in a lease that changes the rent payment based on changes in an agreed upon index (Ex: consumer pricing index (CPI), some key interest rate, etc.). the lease is tied to the change in index |
|
|
Term
|
Definition
| type of commercial lease. tenant (lessee) takes on all expenses associated with the property (insurance, taxes, maintenance costs, etc.) in addition to payment to the owner (lessor) |
|
|
Term
|
Definition
| generally long term (50-99 years) lease where lessee (tenent) leases ground/land, build structure for business, then owner get the structures on property when the lease term is over (tenant still restricted by zoning/other private restrictions on the property). |
|
|
Term
|
Definition
| a place where buyers and sellers meet. Real Estate market could be national, regional (these are typically large companies/REITs), or local (typically residential). Not highly liquid, diverse, prices depend on type of real estate and location. |
|
|
Term
| Factors Affecting Real Estate Market |
|
Definition
| characteristics of the land (location, location, location!), marketplace, participant knowledge of buyer & seller (level of sophistication), government regulations, availability of credit/financing |
|
|
Term
| Elements that Create Value |
|
Definition
| DUST! (demand, utility, scarcity, transferability) or also PEGS! (physical, economic, governmental, social) |
|
|
Term
|
Definition
| subset of a market; can be a subset of a physical type of property, group of people, type of financing used, form of ownership, location, etc. |
|
|
Term
|
Definition
| more concerned with the cost to rebuild, not how much a property is worth relative to other comparable properties |
|
|
Term
|
Definition
| often not the market value. It's simply a basis on which the government collects taxes for the ownership of property. (predicted value for tax purposes). |
|
|
Term
|
Definition
| two or more disinterested, unrelated parties (buyer and seller motivated by self interest to complete transaction). Property has been exposed to open market and sale price is without inducements |
|
|
Term
| When does property sell below market value? |
|
Definition
| at auction or other rapid sale ("fire sale"), liquidating an estate, to fulfill tax obligations or other liens (foreclosure), gifting property, deal tied to other properties, "as-is" sale with no disclosures (foreclosure sale). |
|
|
Term
|
Definition
| concept of value influenced by capital, labor, land management (imply return earned or cost incurred for each). |
|
|
Term
|
Definition
4 Stages: growth, equilibrium, decline, revitalization.
Can apply to individual property, group of properties, or a larger geographic area. |
|
|
Term
|
Definition
| oldest type of legal description (common in rural/agricultural areas). Metes=distance, bounds=compass directions/angles. Property traced in linear measurements (noting natural and artificial monuments) |
|
|
