Download Midterm Review | RL EST 3501 - REAL ESTATE FUNDAMENTALS and more Quizzes Property Law in PDF only on Docsity!
Personal Property
Personal property, roughly speaking, is private property that is moveable, as opposed to real property or real estate. TERM 2
Real Property/chatel
DEFINITION 2 The rights interest and benefits in real estate ownership TERM 3
Real Estate
DEFINITION 3 Land and everything attached to the land TERM 4
3 types/sections of land
DEFINITION 4 Air, surface and subsurface. Vertical lease, ground lease and sub-surface lease. TERM 5
Fixture
DEFINITION 5 Personal property converted to real property by being permanently affixed to the land. Ex: microwave attached to wall vs microwave on kitchen counter
4 questions to decide if personal or Real
Property
how is it attached? Can you remove without causing damage How is it used/adapted? Customized for your unit? What is the understanding of the parties? Transfer of real property must be in writing. What is relationship of parties? In landlord/tenant, fixtures stay and personals go. Trade fixtures go with tenant if a business. TERM 7
Formal vs Informal land description
DEFINITION 7 Formal- Accepted by the court Informal- Address, name, etc. Read it and locate it TERM 8
Metes &
Bounds
DEFINITION 8 Metes is in distance (feet). Bounds is direction (degrees, min. seconds) TERM 9
Monument
DEFINITION 9 Fixed or artificial starting point for your land description. Must start and end here. TERM 10
POB - Point of
Beginning
DEFINITION 10 Where survey starts and ends
Physical Characteristics of land
Immovable, indestructable (it's always there), nonhomogenous (no 2 pieces of property are alike) TERM 17
Economic Characteristics of land
DEFINITION 17 a) scarce, b) modified (positive or negative), c)performance of investment (fixity), d) location (situs)- preference TERM 18
Feudal System
DEFINITION 18 Owned by King/gov't. Lets tenant live there without a right of ownership. Can subdivide property with his subjects. TERM 19
Allodial System
DEFINITION 19 Individuals have rights of ownership. Gov't gives off land to settlers. TERM 20
4 Rights rettained by
gov't
DEFINITION 20
- Taxation 2) Escheat 3) Police Power 4) Eminent Domain TERE Rights
Right to Tax
Charge on Real estate to raise funds to meet public needs of gov't. TERM 22
Escheat
DEFINITION 22 When you have property reverting to the state if the owner dies without a will or heirs. 1st goes to will, 2nd to heirs, 3rd to state. TERM 23
Police Power
DEFINITION 23 Power vested in the state to establish laws to preserve order, protect the public health and safety and to promote the general welfare. Regulations on property. No compensation on police power. No actual taking(thats eminent domain) TERM 24
Eminent domain
DEFINITION 24 Property taken must receive just compensation. Gov'ts power to acquire privately owned property for private use TERM 25
Ways to acquire private property through
eminent domain
DEFINITION 25
- Negotiations 2) Condemnation proceeding (court/litigation)
Compensatory damages
Compensate for actual loss of property TERM 32
Severance Damages
DEFINITION 32 Payment to an owner for diminution in the value of a remainder area in a partial acquisition, caused by the acquisition (severance) or by construction of improvements. TERM 33
3 Types of Estates
DEFINITION 33 Freehold, statutory and leasehold TERM 34
Freehold Estate
DEFINITION 34 A fee simple (or fee simple absolute) is an estate in land, a form of freehold ownership. Estate of uncertain duration. Right to own and possess. TERM 35
Statutory Estate
DEFINITION 35 Estate established by law
Leasehold Estate
A leasehold estate is an ownership interest in land in which a lessee or a tenant holds real property by some form of title from a lessor or landlord. Fixed duration, specified time frame. Right of possession but no ownership TERM 37
Police power vs deed
restrictions
DEFINITION 37 deed restrictions are put on by property owners. Police power is through legislation TERM 38
Dower and Curtesy
DEFINITION 38 Dower is wife's life estate and deceased husband's property Curtesy is husbands rights and deceased wife's property. Gives right to live in property during their life TERM 39
Homestead
DEFINITION 39 Land owned/operated as family home may be exempt in certain circumstances. Purpose is to protect home TERM 40
community project
DEFINITION 40 Gives equal interest to each spouse to property acquired during the marraige
Periodic Estate
Estate that goes from period to period and renews automatically for that amount of time. Monthly/yearly lease that auto renews every month. TERM 47
Estate at Will
DEFINITION 47 Tenant has right to possess at landlord's consent for undesignated time frame. Terminated by either party at any time. TERM 48
Estate at Sufferance
DEFINITION 48 Tenant stays beyond his legal right to stay without consent of landlord. "Holdover Tenant"- Not a trespasser since trespassers never had a right to be there. TERM 49
Lease
DEFINITION 49 A lease is a contract conferring a right from one person (called a tenant or ) to possess property belonging to another person. Gives up right to possess. TERM 50
5 ways of setting
rent
DEFINITION 50
- gross lease, 2) Net lease, 3) Graduated or step up, 4) Escalted lease/participation, 5) Percent lease
Gross lease
In a gross lease, the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership. TERM 52
Net Lease
DEFINITION 52 usually In commercial real estate, a net lease requires the tenant to pay, in addition to rent, some or all of the property expenses which normally would be paid by the property owner (known as the "landlord" or "lessor"). TERM 53
Graduated or a Step
up
DEFINITION 53 Predetermined rental increase over length of lease. Usually in leases over 1 year. TERM 54
Escalated lease/participation
DEFINITION 54 Tenant pays % increase in property tax, utilities etc. TERM 55
Percent Lease
DEFINITION 55 Tenant pays landlord a percent of their gross receipts. Example: a farmer paying landlord
