REAL ESTATE Chapter 1-6 EXAM Flashcards

REAL ESTATE Chapter 1-6 EXAM Flashcards EstateA real property interest that includes the right of exclusive possession.CooperativePersonal property (shares in a corporation and the rights to convey) Habendum clausedefines limits interest conveyed Government Rectangular surveybasically divides things up into grids. Principal meridian runs north south and Baseline runs east west. After that you have tier line which run east west and range line which run north south.Zoningresidential, commerical, industrial. setback requirements, bulk or density limits, height limits, maximum floor area

ratios. Special use districts: service stations hospitals,

churches, private schools.Involuntary conveyance by deedprobate,bankruptcy, divorce settlement, condemnation, foreclosure Physical AssestThe air rights, mineral, oil,surface rights, fly over rights in US it means from the center of the earth up to the heavens.Statute of FraudsContract must be written to be enforceable Comdemnationlegal procedure for exercising the right of eminent domain

General Warranty DeedAll the covenants : seizin, encubrances, quiet enjoyment

Property taxesmain source of income for govt.DelieveryObserable, verifiable, intent that deed is to be given to grantor.Cannot be indirectly or without permission Economic BasesBring income into a city. products or services provided to the outside world. Economic base determines growth of city Specific lienarise from ownership and use of the property . Mortgage, mechanics lien and property tax Rules for determining a fixturemanner of attachment, manner of adaption , intention of parties or customary assumptions of the realm, (kitchen appliances in single family residence versus that of an

apartment) Relation of the parties to the item: items

installed by tenant are tenants.RE Market CharacteristicsLocalized(heterogenous, immobile, segmented)Markets are hardly ever in balance, incomplete market information,High transaction costs.RE is illiquid cant sell quickly.High value

asset:usually requires debt financing.

General LienArise from events unrelated to the property. ie for gambling problems Secondary BaseActivities that recirculate income in a city ie local merchants, restaurants, retail shops, gas stations, food stores, dry cleaners

Agglomeration economiesemergence of specialized resources in response to demand form multiple industries. These cities are less risky, more resilient to change.

Meaning of Real EstateReal estate: the physical asset,the rights from ownership

and the profession and industry Capital Market CompetitionRE competes for funds in capital market with other asset classes such as stocks and bonds.accertionsoil that is deposited becomes part of private property clusteringhuman society has clustered together so people can gather more quickly and efficiently. It provides better access to goods and resources and it creates competition Property DescriptionsMust be unambiguous and enduring. three methods

acceptable for public records: metes and bounds plat lot

and block number, government rectangular survey.Nonpossessory InterestsEasements, restrictive covenants, liens.Planned Urban DevelopmentMixed uses, community facilities, no set back requirements, open community, community facilities. The HUB and Grand central probably had to get a contract with land use authoriites.Key Point to DeedsNo deed conveys rights that grantor does not have Assessed valuegenerally market value, assessor estimates value of property annually Involuntary conveyance without deedAdverse possession, easement by perscritpion.(adeveres possession is if you live on the property and pay taxes for it for at least 7 years it can become yours.) GranteeOnly needs to be identifiable covenant of seizingrantor has a good title and right to convey it Four quadrants of Real Estate Capital Markets Private Equity/Owners: individuals, partenerships, firms

and institutions,Equity Public: Investors in publicly traded

real estateDebt/lenders private: commerical banks, savings

institutions, mortgage banks.Debt/lender public: investors

in mortgage backed security LiensAn interest in property as security for an obligation

Fee simple EstateImplies absolute ownership(all the ownership rights: lease,

sell, use, give away) Value of Real Estate comes fromThe right to prevent others from using it, the right to use the property ourselves and the right to dispose of it as we wish Zoning board of appealRequest form the current zoning code Performance StandardsRunoff limits, noise and emission, traffic limits tree removal Personal PropertyAll other types of property such as household goods, intellectual property.New UrbanMixed use, public tranportation, pedestrian oriented, sidewalks, houses close to street, rear alleys, grid streets with restricted traffic flows.

bid Rent Curvenot simple, multiple focal points. Everybody has different linkages Subdivision Plat Lotsubdivision survey map in public records identifies lot by block and lot number. Dominant form of urban land descritption

Restrictive CovenantsCovenants that impose restrictions on land use: created at

conveyance of land to a new owner. examples include setback lines, no chain link fences, no garage door facing

the street. Two types: an covenant on a single parcel or on

the subdivision. On the half of the subdivision it is mutually binding.InterestAny rights in real property User MarketCreates the supply and demand, users are the renters/owners and the suppliers are the builders surveyors, architects and engineers.

types of public planscommunity plans:City or county levelNeighborhood

plans:Special Area: historic preservation, peripheral development plans, transportation Segmented User MarketsBoth demand and supply side of user markets are very specific to location and building type.Public planning comprehensive PlanProjected future pop growth, requirements for water, waste public services, Property Rightsclaims or demands that our goverrnment is obligated to enforce.Nonrevocable, enduring, Ownership RightsRight to use, right to sell it , lease it right to give it away, right to do none of all of these things Mill Ratebased on the amount of money needed to run the entity.Failure of Real EstateExternalitites, incomplete information and locational monopolies.Greatest CitiesHave mulitple bases ie things the city offers to the outside(economic functions) PsychographicsMarket segmentation research seeks to relate preferences to attitudes interests and opinions.Taxing authoritiesschools, county, cities, improvement districts, transportation authorities, water management districts, Challenges to Public Land UseLimited actual experience,changing notions of best practice ie culd-de sac or grid system, no zone plans until 1970 had force of law geographic information systemsMaps out the concentrations of differences and locations of different stores in an area.Eminent DomainRight of government to acquire private land, without public use with due process.Covenant against encumberances:no liens or easements outside of those mentioned in the deed.

Three basic powers of regulationPolice powers: set safety codes and other standards to

protect public health, eniment domain: can reclaim property

Doctrine of Constructive noticecannot be bound by what you cant know or can be bound by what you could know special warranty deedno time set on encumbrances Acknowledgementconfirmation that grantor acted voluntarily. (may require witnesses) GrantorPerson conveying property, must be of legal age, legally competent and must sign the deed.convenience goodsusers g to closest source, and uniform dispersion.EasementThe right to use land for a limited purpose:Appurtenant: dominant and servant parcel. Dominant parcel

benefits.Easement in Gross: rights to use unrelated to

adjacent parcel Real PropertyRights in land and its permanent structures.Results of SegmentationRental prices for very similar physical space can vary widely Envirnmental ControlsThree stages of EVA(environmental assessments)1.) air and water samples. historical property records, site

inspection2.) EVA 2: more invasive test of a lead from the

phase one indications3.) EVA 3 complete assessment of the extent of the problem remediation needs/costs

metes and boundsone of three acceptable methods of public records: oldest

formm and uses a compass and a compass. Most flexible and difficult to interpret Plan commissionReview plans design Real Estate Impactgenerates over 25% of U.S GDP,Housing alone accounts for 20%Generates nearly 70% of local govt rev.Creates jobs for nearly 9 million Americans.Reasons for complexity of Conveyance of Real EstateComplex bundle of rights, rights are enduring, rights available today depend on those transactions from the past. Boundaries are hard to establish Types of Ownership (possessive)Fee simple estate,life estate (remainder of interest is separated with ability to sell) Leaseholds Evidence of titleAssurance of a good or marketable title (claim to title regarded as free of reasonable doubt) Attracting businessesLabor force characteristics, special skills and work experience, work ethic. quality of life, leadership such as financial support or government support TimesharesDifferent forms ie fee simple in time blocks, leasehold etc.usually involves floating time intervals and choice of resorts.Industry with a questionable history. Never a financial investment.Recording StatutesA contract recorded in public records is considered known