Real Estate Fundamentals Exam 1 Flashcards

Real Estate Fundamentals Exam #1 Flashcards Titleownership rights to real property Assessed Valuethe portion of market value subject to taxation Mortgagorthe borrower of the loan EncumbrancesRestrictions and Limitations generally run with the land, they are binding on anyone who gains a subsequent interest in the property Qualified Fee Estatethe owners rights can be "defeased" or lost in the future should a stated event or condition come to pass Personal Propertyincludes legal interests in all other types property; chattel Easementa right given to one party by a landowner to use the land in a specified manner (permanent) Real Propertyconsists of legal interest in land and things attached to the land Boundsthe directions of the boundaries that enclose a piece of land Police Powergovernments have the power of regulation, which gives them the ability to protect the public health, safety, morals, and general welfare Assessment RatioThe fraction used to determine assessed value frm market value Proprietary Leaseowners in a co-op have this for a specific unit rather than a fee simple ownership of real property Evictionthe legal process used by lessors to terminate leasehold estates when lessees fail to abide by the lease terms or refuse to return possession of the property at the termination of a leasehold estate.Joint Tenancysimilar to tenancy in common except it carries with it the Right of Survivorship. If a co-owner should die, the other owner or owners automatically divide the share owned by the deceased.Liena claim on a property as either security for a debt or fulfillment of some monetary obligation Leasehold estatesthe right to use or possess but not own property owned by someone else Riparian Rights Doctrineall owners whose land underlies or borders the water have equal rights to the water (dominant in the Eastern US) Estate pur autre viewhen the life tenant is someone other than the person whose life the life estate is tied to Lesseethe tenant in a leasehold estate Vested Remainderwhen the remainderman is guaranteed ownership of the property at some time in the future

Mechanic's Lienprotects those who provide labor or materials for real estate improvements Mortgagethe most common encumbrance on an owners title.Inverse Condemnaionwhen a property owner, seeking to force payment for taking of property rights, starts condemnation proceedings against the government, contending that a government action has destroyed or educed the value of the property to such an extent that the government has effectively taken the property away from the owner Air Lotproperty does not actually touch the ground Range Linesthe land on each side of the principal meridian is divided into six-mile-wide strips Lessorthe landlord in a leasehold estate Descendiblethe interest passes to the owners legal heirs if he or she dies without a valid will Conservation Easementa type of negative easement that prevents specific uses of the real estate by the owner FixturePersonal property that becomes part of the real property when it is attached to the land or a building PlatsEngineers' drawings of parcels of real estate Assessmentthe first step in the property taxation process is to estimate the market value for all properties within the jursidiction Rectangular Survey Systembased on principal meridians (north and south) and base lines (East and west) divides each township into 36 equal-sized sections Real Estateland and things attached to the land Prior Appropriation DoctrineThe first person to use a body of water for some beneficial economic purpose has a right to use all the water desired, even if landowners who later find a use for the water may be precluded from using it (dominant in the Western US) Reversionsthe future interests that follow qualified fee estates Alienablethe owner can transfer any interest in the property while living BylawsRepresent a private contract among property owners regarding the operation of the condominium Estates in Landcollections or bundles of ownership interests in real property Encroachmentand unauthorized invasion or intrusion of a fixture, a building, or other improvement onto another person;s property Tenancy at Sufferencewhen a tenant is in possession of a landlords property against the wishes of the landlord Right to Use Time-Sharea lease arrangement with a leasehold interest for a specific number of years

Easement by Prescriptionmay be created when someone other than the owner uses the land "openly, hostilely, and continuously" for a statutory time period Nonconforming usea continuing use that was legal before a zoning ordinance was passed but that no longer complies with the current zoning regulation Cooperativeco-op the land and building usually are owned by a nonprofit corporation specifically created for the purpose of owning the property-individual residents own stock in the corporation that owns the property and thus have the right to occupy a particular unit in the property Tenancy for a Stated Periodwhen a landlord and a tenant enter into an agreement for a specified term Covenants, Conditions, and RestrictionsCC&Rs private encumbrances that limit the way a property owner can use a property. Promises made by a landowner about how the property will or will not be used that are enforceable through the court system by the parties who expect to benefit from the promsies Escheatthe final power governments have our private property Freehold Estatesown the estate Zoningthe process of dividing a communitys land into districts in which only certain uses of the land are allowed Time-shareor interval ownership is a type of concurrent estate that splits ownership by time Exemptionsexempt certain amounts of a property's assessed value to provide tax relief for certain types of property owners Community Propertyall property acquired during the marriage, whether real or personal, is considered property of the "marital community" Fee Interest Time-Sharedivides the ownership of a unit usually a resort condominium into 52 separate, weekly intervals Leasethe document used to convey the rights from the property owner to the tenant Propertyany objects that can be owned or possessed Grantorthe party who transfers a real property interest Adverse Possessionallows individuals to acquire title to land they do not own because they have openly possessed it for a statutory period of time, usually 7 to 20 years Life Estatea type of freehold estate that terminates automatically and immediately upon the death of a named person Granteethe party who receives the interest Deedthe document normally used to convey the rights from one party to another Test of Intent of the Partiesthe most crucial test used to determine whether something is a fixture or personal property

Eminent Domaina government can acquire can acquire property for a public use, even if the owner doesnt want to sell, as long as the owner receives just compensation Townshipthe range and township lines form the basic unit of the rectangular survey, an area of land six miles square Tenancy from Period to Periodcreated when landlord and tenant agree to contine their relationship from year to year or month to month, or some other period length Market Valuegenerally defined as the price that the property probably would bring in the market, given knowledgeable and willing buyers and sellers who act under no unusual pressures and who have a reasonable time to complete the transaction Easement in Grossthere is no dominant estate, only a servient estate Devisableinterest can be transferred by a will on the death of the owner Licensea revocable personal privilege to use land for a particular purpose Estates in Severaltyestates "standing alone"; only one person or legal entity owns each interest Tenancy at WillWhen parties enter into a lease agreement without specifying either a termination date or a period length Contingent Remainderexists when there are conditions attached to the remainder interest that could prevent the remainderman from receiving a present interest in the property Fee Simple Absolute Estatethe fullest and most complete set of ownership rights one can possess in real property Metesthe distances used in a description Township linesthe land that runs east and west along the north and south of the base line Mortgageethe lender that receives the benefits of this lien Remaindermanthe party who holds the remainder interest associated with a life estate Tenancy by the Entiretya specialized type of joint tenancy that can be created only between husbands and wives-share equally Trade Fixturespersonal property used in a trade or business Easement Appurtenantwhen an easement is legally connected to an adjoining property (Dominant Estates and Servient Estates) Water Rightsthe right to withdraw water from the land Condominiumall owners typically have fee simple titles to their personal unites, while common areas such as sidewalks, yards, entrances, hallways, pools, tennis courts, and other recreational facilities are jointly owned in a tenancy in common or some other form of concurrent ownership