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Real estate as a tangible asset
land and permanently affixed improvements
TERM 2
Real Estate as a Bundle of Rights:
DEFINITION 2
Use and enjoyment, exclusion of others, disposition, etc.
TERM 3
Real Estate as a Profession:
DEFINITION 3
Appraisal, Asset Management, Brokerage,
Development,Construction, Finance, Investment, Planning,
PropertyManagement, etc.
TERM 4
Real Estate Space Market:
DEFINITION 4
Competition AmongUsers of Space
TERM 5
Real Estate Capital Market:
DEFINITION 5
Competition AmongInvestment Alternatives
what are the things that changes the
value
Space markets, capital markets, and government regulations
TERM 7
The Space Market
DEFINITION 7
residential, retail, office, industrial, institutional, hospitlaity
TERM 8
The "capital" market
DEFINITION 8
private debt, public debt, private equity, and public equity
TERM 9
Equity
DEFINITION 9
ownership interest (own)
TERM 10
Debt
DEFINITION 10
a security interest (dont own)
Discounting
bringing future cash flows to a present value
TERM 17
Real Estate Investment Strategies
DEFINITION 17
core, core plus, value added, opportunistic
TERM 18
Core
DEFINITION 18
-Class A assets-Primary markets-High occupancy-Stable cash
flow-Low leverageLowest risk
TERM 19
core plus
DEFINITION 19
-Class A assets-Primary markets-Some vacancy-Potential to
increase cash flow-Low/moderate leverage
TERM 20
value added
DEFINITION 20
-Class A and B assets-Primary/secondary markets-High
vacancy/obsolescence-Potential to increase cash flow-
Moderate/high leverage
opportunisitc
-Class A, B, or C Assets-Secondary/tertiary markets-
Redevelopment/Repositioning-Dramatic increase in cash
flow-High leverageHighest risk
TERM 22
Risk
DEFINITION 22
cash flow uncertianty
TERM 23
real property rights
DEFINITION 23
use and enjoyment, exclusive possession, disposition
TERM 24
time of intrest
DEFINITION 24
present and future
TERM 25
physical character
DEFINITION 25
air, surface, subsurface
fixture
personal property converted to real property
TERM 32
Estate:
DEFINITION 32
interest in real property including the right of possession
TERM 33
Freehold Estates:
DEFINITION 33
titled interest indefinite in length1. Fee Simple Absolute2.
Fee Simple Conditional3. Life Estate
TERM 34
Fee simple absolute
DEFINITION 34
right of enjoyment Strongest freehold estate
TERM 35
fee simple condition
DEFINITION 35
same as absolute unless some condition occurs
Life estate
last the duration of the life time goes with remainder intrests
TERM 37
Leasehold Estates
DEFINITION 37
limited time/no title/no right of disposition1. Tenancy for
Years2. Periodic Tenancy3. Tenancy at Will4. Tenancy at
Sufferance
TERM 38
Nonpossessory Interests in Real Property
DEFINITION 38
do not include the right of exclusionand may or may not
include the right of dispositionthree types: Easements,
Restrictive Covenants, Liens
TERM 39
Easement:
DEFINITION 39
right to use land for a specific and limited purpose
TERM 40
Easement Appurtenant:
DEFINITION 40
1. Dominant and servient parcels of land2. Easement runs
with the land
Specific Lien
Specific Lien- results from action related to the property
Property tax lien Assessment lien Mortgage lien Mechanics
lien
TERM 47
Co-Ownership
DEFINITION 47
Tenancy in Common,Joint Tenancy,Tenancy by the
Entirety,Condominium, timeshare
TERM 48
Tenancy in Common
DEFINITION 48
shared right to use/enjoyment, exclusion and disposition
TERM 49
Joint Tenancy
DEFINITION 49
right of survivorship
TERM 50
Tenancy by the Entirety
DEFINITION 50
Right of survivorship; default form of co-ownership for
married couples
Condominium
Combination of tenancy in common and fee individual
ownership
TERM 52
timeshare
DEFINITION 52
Co-ownership divided into time intervals
TERM 53
Deed:
DEFINITION 53
contract conveying permanent interest in real estate
TERM 54
General Warranty
Deed
DEFINITION 54
Covenant of right to convey, quiet enjoyment and no
encumbrances
TERM 55
Special Warranty
Deed
DEFINITION 55
Covenant against encumbrances limited to conveying parties
ownership
Recording Statutes
Statute of Frauds requires conveyances of real property in
writing Recording interest in the public record provides
constructive notice
TERM 62
Title Search and Title
Insurance
DEFINITION 62
Legal process of searching all interests recorded in the public
record Title insurance protects grantee from losses
associated w/ title issues
TERM 63
Actual Notice
DEFINITION 63
Grantee is subject to interests he or she is capable of
observing
TERM 64
conveyance without a deed
DEFINITION 64
implied easement, easement by estopple, involuntary
TERM 65
Implied Easement
DEFINITION 65
Easement included in a subdivision map Easement by prior
use when parcel has become landlocked Easement by
necessity when parcel has become landlocked
Easement by Estoppel
Legal enforcement of a promise of use granted by the owner
of theservient parcel and relied upon by the owner of the
dominant parcel
TERM 67
Involuntary :
DEFINITION 67
Adverse Possession/Constructive Easement Hostile, actual,
open, continues and exclusive use adverse to owner
