The Language of Real Estate Flashcards

The Language of Real Estate Flashcards Legal DescriptionsMetes and BoundsRectangular CoordinatesSubdivision FixturesChattels which have become affixed to the land or permanent structures Transfers of Ownershiptitledeed Personal PropertyMovable property not attached to land Subsurface (Mineral) RightsRights to minerals and land below the surfaceMay be sold, leased or licensed Deed CovenantsWarranty DeedsQuitclaim Deeds Real Estate Specialist based on Development ULINAIOP MortgagesA pledge of property as security for a loanHistorically mortgages involved initial title transfer to the lenderFull title would be returned when the debt was paid offHypothecationMortgagor (borrower) vs. Mortgagee (lender)Lien theory dominates todayRequires Foreclosure for lender to acquire title Real Estate SpecialistsConsulting and Counseling The Counselors of Real EstateCRE Designation TitleProof of ownership in property Ground LeaseTypical term is the economic life of the building Rectangular CoordinatesTownships, Ranges & Sections (640 Acres) Life EstateTemporary interest until death of a named person Assurance of TitleDeed CovenantsTitle Abstracts and Title OpinionsTitle Insurance Leasehold interest restrictions in duration Stated Period - Defined terminationPeriod to Period - Unidentified termination Brokerage & Leasing - Real Estate Specialist specialize by property type - tenant and landlord representation Water RightsRiparian & Prior Appropriation Title InsuranceInsurance policy issued at transferPays the mortgage lender in case of defectsRequired by most lendersPaid in Advance Title Opinionsprovide only a statement of findings Corporate Real Estate SpecialistCoreNet GlobalMCR Designation Freehold EstatesThe right of ownershipOwnership estate for an indefinite period (Can be sold, Can be granted by will or law to heirs) Types of Leasehold interestThe Lessee's - tenant's estateUsually restricted in durationGround Lease intesity of use generally regulated by zoning height, floor area, site area, buffers Tests are used to determine fixture status Intent of Parties, Form of Attachment Leased Fee InterestThe ownership estate created by leaseholdLeased fee owner known as the Lessor - LandlordCarries with it the Right of ReversionCommon focus in valuation of leased

property Mortgage LendingMortgage Bankers Association of AmericaCMB Designation

Characteristics of Real EstateFixed location (position in space)Uniqueness of each parcelTopography and Externalities (Beach)Interdependence of land usesResidential and RetailLong life of ImprovementsLarge transactionsLong gestation (development) period Quitclaim DeedsOnly releases implied titleNo Guarantees Restrictions on Ownership - PublicAd Valorem Taxation (Assessed Value, Millage Rate)EscheatEminent DomainPolice Powers (Zoning, Building Codes, Subdivision Restrictions) Zoning generally regulates...type of use & intensity of use SubdivisionLot, Block & Subdivision nameRecorded Plats1 Acre = 43,560 square feet NAIOPReal Estate DevelopmentNational Association of Industrial and Office Properties Surface RightsMain focus of most property uses Fee Simple InterestAn ownership interest unencumbered by any other interest or estate Real Estate SpecialistsAppraisal and Valuation The Appraisal InstituteMAI Designation Air RightsRights to a reasonable space above the surface Real Estate Specialist based on Property ManagementIREMBOMA Restrictions on Ownership - PrivateLiens (Mortgage, Tax, Mechanics)Easements (Appurtenant, In Gross)Licenses (Revocable right to use)EncroachmentsAdverse PossessionDeed/Subdivision Restrictions How do we define Real Estate?Land and Structures permanently attached to the land Leasehold EstatesThe right to own with use granted to othersThe right to use and possess (occupy) but not ownDivided estate granting the right to use and occupy but not own to one party DeedA legal document transferring title in real estateGrantor = transferring partyGrantee = recipientLegal Descriptions Metes and BoundsPoint of Beginning (Close)Distance & Direction BOMAProperty Management Specialists"Building Owners and Managers Association"Source of standards for property operations Estates in LandThe interest which one possesses in Land ULIReal Estate Development"Urban Land Institute" IREMProperty Management Specialists"Institute of Real Estate Management"CPM Designation Types of Freehold EstatesFee Simple InterestLife Estate Types of use zoning regulates..single famiy, commercial, industrial Types of Estates in LandFreehold EstatesLeasehold EstatesCondominiums & Cooperatives Warranty DeedsGood and marketable title (Right to convey)Covenant against encumbrancesPledge to Defend

National Association of REALTORS®Residential & Commercial Affiliates How is Real Property defined?The legal interest held in land and buildings and the financial obligations they support Title Abstractsprovide a chain of ownership