Fil 260 Set 3

Front 1

Transfer of Title to Real Estate

Back 1

can be

involuntary- ownership transfers not by choice of the prior owner, but rather than by action of law

or

Voluntary-ownership transfers because the owner chooses to sell his interest in real estate

Front 2

the six different types of involuntary transfer of titles:

Back 2

1. Condemnation- taken though eminent domain
2. Adverse Possession
3. Foreclosure
4. Partition
5. Community property
6. Escheat

Front 3

the 5 different types of voluntary transfer of titles:

Back 3

1. Patent- transfer from govt to privately owned
2. Sale
3. Will
4. Intestate Succession- how property is disposed of if no will (child, spouse split)
5.Gift

Front 4

for a will to be valid it must be:

Back 4

-testamentary capacity
-be in writing
-be signed
-be witnessed

Front 5

to have testamentary capacity:

Back 5

someone needs to:

- know the nature and extent of property owned

- know who "natural objects of his/her bounty" are

- understand how he/she wants property to be distributed

Front 6

Points to note for a Gift

Back 6

-a promise to give a gift generally is not legally binding
- once completed, it can not be revoked
-you dont have to accept a gift
-it is illegal to give property away to shield it from creditors

Front 7

deed

Back 7

a legal document that transfers rights in real estate from a grantor to a grantee

-must be in writing
-adequately describe the parties and property involved
-must contain words of conveyance

Front 8

types of deeds

Back 8

- General Warranty deed
- Special warranty deed
-grant deed, or bargain and sale deed
-quitclaim deed

Front 9

General warranty deed

Back 9

contains five guarantees or warranties of assurance (called covanants) to the grantee.

They include:
1. Covenant of seizin- grantor assures that she has good title & right to convey it
2. Covenant of quiet enjoyment- grantor assures the grantee's use & enjoyment of property will not be disturbed by anyone claiming title, whether or not through grantor's ownership
3. Covenant against encumbrances- grantor assures that there are no limitations on the owner's rights (easements, leases) other than those specified
4. Covenant of further assurance- grantor assures that she will take any further action necessary to protect the grantee's claim of title
5. Covenant of warranty forever- grantor assures that she will forever warrant that the title passed to the grantee is good

Front 10

What is the reason for recording?

Back 10

to give the public notice and give constructive notice to the innocent 3rd party

Front 11

Recording a deed

Types of Notice:

Back 11

1. A third party has ACTUAL NOTICE if
-he knew about someone's interest -or-
-an inspection of the premises would have revealed the likelihood that someone had an interest

2. A third party has CONSTRUCTIVE NOTICE if:
-he knew about somone's interest -or-
-a search of documents properly recorded at the local court house would have revealed someone's interest

Front 12

what ATTRIBUTES cause an time to have value in a transaction?

Back 12

1. Utility- ability to satisfy human needs or desires.
2. Scarcity
3. Effective Demand
4.Transferability

Front 13

The FORCES that influence the magnitude of value:

Back 13

1. governmental/legal/political
2. economic
3. social/ psychological
4. Physical

Front 14

Types of value that appraisers might be asked to estimate

Back 14

-Market Value- most probable selling price
-Investment Value- Steven Spielberg value
-Insurable Value- based on replacement or reproduction cost

Front 15

The Appraisal Process

Back 15

1. Define the Problem
2. Select data and complete preliminary study
3. Research and analyze the market
4. Apply Cost, Sales Comparison and Income Approaches
5. Finalize the Process

Front 16

highest and best use

Back 16

the use among those that are physically and legally possible, that maximizes the property's value

get the highest price and best use from property

Front 17

The Cost Approach

Back 17

Justification is that a rational buyer would pay no more for a property than the cost of buying a similar site and building similar improvements

Front 18

Steps in the Cost Approach

Back 18

11. Estimate the cost to build the improvements based on: Replacement or Reproduction cost

2. Estimate Depreciation and Obsolescense: physical deterioration, functional obsolescense, locational obsolesence

3. Add together the three depreciation figures, and subtract them from the cost to build (depreciated value of improvements)

4. Estimate the Land Value (using sales comparion approach)

5. Add the estimated land value to depreciated improvements value estimate.

Front 19

curable

Back 19

if deterioration can be repaired at a price less than or equal to accompanying increase in value

Front 20

Sales Comparison Approach

Back 20

assemble information on recent sales of properties that are similar tot he subject property.

Front 21

Steps in the Sales Comparison Approach

Back 21

1. assemble recent information on recent sales of properties that are similar to the subject property

2.make dollar adjustments on which the comparable differs from the subject.

3. Assign Weights the the comparable (based on how good they are)

Front 22

What is the formula for the Indicated OAR?

Back 22

Annual Net Income / Selling Price

Front 23

What is the formula for the Indicated GIM?

Back 23

Selling Price / Gross Montly Rent