Texas Real Estate State Exam Flashcards

Texas Real Estate State Exam Flashcards Adverse Possession (Squatters rights)occurs when property is acquired from the rightful owner through the State of Limitations Rectangular/ Government Surveytakes into consideration base lines, meridians, townships and sections.Townships and Sections are located in Ranges. Example S7T3R2 means Section 7 Townships 3 Range 2 Voluntary leincreated by the borrowers actions such as taking out a mortgage

• Basic approaches to Appraisalsmarket data or sales comparison,income or capitalization

method, and replacement cost or summation approach Metes and Boundslegal description of land that always has a point of beginning that is also the end. The oldest used in 13 original colonies Prior Appropriation Theoryfirst landowner to claim riparian rights exclusive rights CMA Comparative Market Analysisa tool licensee use to determine price for their property using current listings,recent sales and expired listings Land 4 economic characteristicsscarcity, modification, fixity, situs Holdover Tenancyholdover tenant pays rent and it is accepted Inverse CondemnationWhen an individual forces the govt to buy his property EscheatProperty reverts to the state dies with no will,no heirs, no kindred. Also property is abandoned Assumption clauseif loan is assumed new buyers obligated to pay off loan

• Characteristics of Value (DUST)Demand, Utility,Scarcity,Transferability

Tenancy at SufferanceLease expires and tenant refuses to move out Leincreated by recording a judgement Defeasible Fee, Conditional Fee, Qualified Fee, Qualified Defeasible Fee ownership with conditions or terms which if violated could cause the ownership interest to be defeated or terminated.Market Valueprice a willing seller will sell for, and price willing buyer will pay Specific leinattaches to one or more specific properties ex mortgage FixturePersonal Property attached in such a way to make it real property.Eminent DomainThe right of the government to take private property for public use through the action of condemnation Escalation Clauseallows lender to raise existing interest rate Acre43,560 square feet Easement in Grossbelongs to a person or corporation example would be utility easement indestructibilitydurability - it will always be there easements can be terminatedmerger of adjacent property, release, or abandonment

scarcityshort supply where demand is great example lot in Manhattan v. a lot in upstate NY TaxationProperty taxes are the highest priority lein on real property MAI designationMember, Appraisal Institute Acceleration Clausein the state of default whole amt of principal is due Cost approachalso know as summation approach how much it would cost to reproduce or build examples are churches or govt buildings,new construction Prepayment ClausePrepayment of mtg there is fee Nonhomogeneityno to pieces are exactly alike

• leasehold estatesEstate for years, periodic Tenancy, Estate at will, tenancy

at sufferance immobilityland cannot be moved - a person must go to the land fixityland and buildings and other improvements to land are consideration fixed or permanent investments- they are not liquid assets Non-Freehold estate or lease-holdhas a termination date Littoral rightsLakes, Oceans, large bodies of water Alienation ClauseDue on sale clause states balance is due if sold w/o mortgagee's approval Estate for yearslease with specific starting and ending date EX.12 Month lease on a Apt.Life Estateownership for the duration of someone's life. Owner called Life tenant. Remainderman person getting the estate after owner dies Real Propertyland, Improvements attached to the land, and the rights to use them Steps in Appraisers process (5)1.Purpose 2. Collect and Verify info 3. Est. value using as many approaches as needed 4. Reconciliation 5. Prepare report Police PowerPower given to a municipality to regulate and control the character and use of property for the health,safety,and general welfare of the public ZoningCommon example of Police Power, non conforming use still grandfathered in, Example Old Apartment building in a now all residential neighborhood Syndicatewhen two or more parties join together to create and operate a real estate investment Tenancy in commonOwnership by two or more without rights of survivorship goes to your heirs not the other owners modificationland use and value are greatly influenced by improvements made by man to land and to surrounding parcels of land Township36 Sections Personal Propertyright or interest in things of a temporary or movable nature chattel personalty. Ownership transferred by a BILL OF

SALE

Government rights in land (PETE)Police Power, Eminent Domain,Taxation, Escheat Trade Fixturesrequired to carry out a business example would be commercial cooking equipment in a restaurant Income approachor capitalization method used for income producing properties GRM x rent = Price or use GIM Assessed Valuevalue of property for tax purposes straight assumptionnew buyer responsible, can not impact seller's credit score Statutory Estatecreated by law,vary from state to state, in TX community property and homestead are statutory estate Plotmap or layout of improvements on a property site. The property site is also called a lot or parcel Encumbrancelimitation on your rights. It may also called cloud on a title.General leinattaches to all property of the debtor example tax lien Appraisers Principles to Value (9)Highest and Best use, Principle of Substitution, Principle of Conformity, Principle of Increasing and Decreasing Returns, Principle of Contribution, The Principle of Regression, The principle of Competition, The Principle of Change, The Principle of Anticipation Periodic Tenancyfixed period of time that automatically renewed EX. Month to Month Straight line methoda method of depreciation of equal annual installment amounts.Monumentspermanent surveyors markers often starting point for metes and bounds example Iron pipe, oak tree Estate at willLease can be terminated by either party at will without notice

• types of depreciation in cost approach Physical deterioration,Functional obsolescence, Economic

obsolescence Licensed appraiser is requiredfor any property worth 250,000 or more Chronological ageage of property in years Estate in severalty or Sole ownershipOwnership by one person Easement appurtenantDominant estate uses driveway of servient estate to access their property Subordination Clauseallows lender to move or take a lower lien position Deed of trustTexas uses instead of traditional mtg contains "Power of Sale" Clause that allows for "Non-judicial foreclosure" quick foreclosure Severed or SeveranceReal property being removed becoming personal property Varianceif you violate zoning you can request this in order to fix or prevent a violation Riparian rightsrights for rivers,streams, small bodies of water Appraisersmust follow USPAP (Uniform standards of Professional Appraisal Practice) some lenders require Fannie Mae appraisal