Colorado Real Estate - All of Colibri Real Estate Content Flashcards

Colorado Real Estate - All of Colibri Real Estate Content Flashcards What is an interval estate?A leasehold granted by contract or membership fee for the right to use an airspace (unit) for a specified period each year for a pre-determined number of years. Created by membership agreements or by dividing fee simple estates or leases into short-term, interval "right-to-use" contracts.What are the five economic characteristics of land?D.U.S.T.S:1. Demand - The more demand the more an economic value the land has.2. Utility or Usefulness - more bedrooms = more useful to consumers3. Scarcity - A property will sell quickly if it is few properties in the particular area on the market.4. Transferability - When loans are available and rates are low, real estate is readily available.5. Situs - Location, Location, Location What is in a bundle of rights?Ownership includes these in a bundle of rights-Sell-Lease-Encumber (mortgage or borrow against)-Use-Enjoy-Exclude (keep others out)-Will or devise (transfer by will)-Occupy-Cultivate-Trade or Exchange (a trade intended to defer capital gain)-Explore-License-Dedicate-Share What does reversion and remainder mean?Reversion - title reverses back to the grantor.Remainder - title will pass to a third party (known as remainder man) named in original deed "to the grantee for as long as the grantee shall live and the to..." If ONE person or entity takes a title to estate, what does he/she take title in?Severalty - means to sever or cut off. This is to cut off any co-owners of the title. Corporations generally take the title to real estate for severalty.What is an appurtenance?a right, privilege, or improvement that belongs to and passes with the transfer of property but not part of the property.What are Air rights?-involves space above a tract of land up to a height established by law. They may be sold- What are the four types of freehold?1. Fee Simple/Fee Simple Absolute2. Fee Defeasible3. Life Estate4. Fee Tail What does "Pur Autre Vie" mean?"for the life of another". A title can be given to a third party for as long as the life tenant lives.How are chattels classified?Chattels real is part of real estate. Chattels personal is moveable.What is Fee Defeasible determinable?The grantee may use the property for only a specific named purpose. Violation of the right automatically and immediately reverts title to grantor or grantor's

heirs.Example: I will sell my property to you with the

condition that it will always be used for agricultural

purposes. If the property is subdivided for residential purposes, property is returned to grantor.What are the three physical characteristics of land?1. immobility - real estate is permanent and immovable2.indestructability - land is permanent3. Non-homogeneity - uniqueness of land (no properties are the same - different district, land size etc.)

How does the Colorado Common Interest Ownership Act (CCIOA) affect common interest communities?A common interest community includes condos, planned communities that may be condo or cooperative. PUD's are common interest communities that may include duplexes, townhomes, condos and single family.What are the three main forms of co-ownership? 1. Tenancy in Common2. Joint Tenancy3. Tenancy by the Entireties What are the three legal life estates?Dower - a wife's interest in the husband's property at his death. (not recognized in CO)Curtesy - a husband's interest in the wife's property at her death (not recognized in CO)Homestead - Some dollar amount of home value protected against creditors seeking to collect unsecured debts incurred by one family member.What is the alloidal system?System of ownership that allows individuals to own property without the authority of a King. The U.S.government uses this system and still owns some rights of the property. All property uses this system.What is a trade fixture?A trade fixture is the property of a tenant intended for business or trade. The lease should address permission to install trade fixtures and then agreement for removal at the end of a lease.What are the five ways land can increase or decrease due to water?

• Accretion - an increase in land created by deposits of

soil by natural flow of water.2. Erosion - a decrease in land created by removal of soil by natural flow of water or wind.3. Avulsion - loss of land by sudden or large scale change in water flow (heavy rain or typhoon adding water).Owner still retains land where avulsion takes place.4.Reliction - Increase in land due to receding water from shore.5. Alluvion - the actual soil, rock and other matter moved by flowing water, resulting in accretion.How can rights be sold?They can be sold individually and collectively.What regulates chattels?The Uniform Commercial Code What is the Doctrine of Prior Appropriation A doctrine that gives the state control of water useand the water supply.Relies on formal decision of water rights to special water courts.Prevalent in southwest US - Colorado and Rio Grande Rivers.A state's government can give permission to a non-adjacent land owner for irrigation and other uses.Are plants and crops fixtures?Also known as emblements or fructus industriales. They are personal property as long as the annual crop is growing even after the sale.Perennials (trees, perennial bushes, and grasses) that do not need annual cultivation are fructus naturales and are considered real estate. If a tree is cut down and sold as fire wood, it is personal property.Who decides how to take title to an estate? The buyer has sole discretion. Real estate brokers must not influence this decision.

What is organizational ownership of real estate? Person that invests in real estate as part of an organization or group. Takes the form of a syndicate which means a group of investors splitting the risk between multiple people. Organizations normally hold ownership in severalty.What is Fee Simple?Also known as Fee Simple Absolute - Most commonplace estate, max number of rights and ownership. Unlimited duration and inheritable. Subject to only government powers (PETE) What is Livery of Seisin?When you sell a bundle of rights. "I own it and I have the right to sell it" What is a cooperative (co-op) ownership? Non-profit corporation that owns and leases the property.Co-op members own shares of the building not the property. Stock certificate entitles shareholder to a long term proprietary lease of a unit in a building and a say in how long it is run. "Rent" is based on monthly expenses of corporation.Tenant-stockholders may pledge stock shares as collateral for first mortgages on a unit. They may also deduct their portion of the corporation's property tax and loan interest from individual federal and state income taxes.Delinquency of an owner may result in foreclosure of the entire building.What is a partition law suit?Used in tenancy in common - if any other shareholders are not interested in buying and no one can be found to buy the share, the shareholder can request courts to sell his/her shares or the entire property.What is Fee Defeasible condition subsequent? Grantee may use the property for anything OTHER than the specific purpose. Grantor can go to court for reversion

of ownership if violated.Example: After the oil crisis of the

1970s, some service station chains began to sell some of their prime corner locations. Some of them were sold to convenience stores, always under the condition that no gas could be sold at the location.What is Freehold Estate?Ownership of the property. No termination date.What is condominium ownership?Freehold, fee simple absolute title to only airspace within a structure, plus a tenancy-in-common interest in common areas (hallways, patios, etc.).Each owner must pay taxes, mortgages.Each owner must be HOA fees (Homeowners association) for common areas.Master Deed/Declaration recorded to show boundaries.What is joint tenancy?Two or more own with EQUAL undivided intersts.Important

feature: rights of survivorship. When one joint tenant dies,

ownership transfers immediately/involuntarily to the other without court approval. Property does not incur debt from deceased tenant.Each joint tenant may encumber or sell