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107 Cards in this Set
- Front
- Back
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Riparian Land
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Bounded by or touching a natural watercourse; riparien owners acquire the right to use the water without actually owning it
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Riparian Land
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Bounded by or touching a natural watercourse; riparien owners acquire the right to use the water without actually owning it
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Litoral Land
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property that borders an ocean, sea or one of the great lakes
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Improvements
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permanently attached to the land or building; legally regarded as part of the property
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Bill of sale
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Specific doc used to transfer ownership of personal property items from seller to buyer; accompanies deed at closing (deed only transfers title to real property)
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Types of real estate
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1. Residential 2. Commercial (specifically for income producing) 3. Industrial (manufacturing, waterhouse or lab) 4. Agriculture 5. Special Purpose (churches, parks, schools, cemetaries and municipal or government owned land 6. manufactured housig
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Modular Home
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constructed at an offsite factory in a manner similar to a manufactured home, but the undercarriage or frame is designed to be removed when the home is installed on a permanent foundation
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Service Provision Agreement
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Listing and Buyers agency agreement
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Creation of Agency
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granting permission for sellers agency relationship, a broker acting as an agent is granted permision by the seller under the terms of the listing agreement; allows broker to represent sellers interests to third parties (buyers)
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Principal
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party who hires the agent
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Types of agents
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1. universal 2. general 3. special
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universal agency
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power of attorney
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general agent
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given broad negotiating power (property managers)
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Special agent
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conduct a single or series of transactions with agency ending once complete (limited authority)
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Special warranty deed
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guarantees only the period of time the granter held the title
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Surface rights
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surface area and underlying soil, permanently attached
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Avulsion of land
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loss or addition of land
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Accretion of land
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form of erosion
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Open Listing
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seller retains option to list with a number of brokers
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Exclusive listing
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seller reserves right to sell himself without paying commission to realtor
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Exclusive right to sell
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listing broker paid regardless of who sells
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Designated agency
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2 agents with same broker
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Transfer tax
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seller pays $8.60 per $1000, rounded off to nearest 500
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Life estate
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limited to life of owner, reverts back to buyer on death
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Lis Pendens
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notice of pending lawsuit clouds the title
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Tenancy in common
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2 or more property owners
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Abstract of title
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full history of all real estate transactions
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Police Power
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right of the state to pass zoning regulations
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Eminent Doman
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State authorization to take private property for public use
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Capital gain
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true profit gained from appreciation of property
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Right to farm act
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must disclose working farms in area
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Blockbusting
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Dredging
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removing soil or minerals from wetlands; prohibited by DEQ
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DEQ Department of Environmental Quality
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Fee simple estate
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Statute of frauds
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states that contracts must be in writing in order to transfer or create an interest in real property
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Amortization
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repayment of a financial obligations in regular installments; include repayment of principal interest
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Hypothecation
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Pledging real property as security for a debt white retaining possession
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Short sale
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lender agrees to release a lien, enabling seller to sell even though the proceeds will not fully satisfy the lien
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Contingency clause
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releases buyer or seller from obligation upon a financial or home inspection failure occurs during the executor period of the contract
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Negative amortization loan
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monthly mortgage payments that are less than the interst due on the loan, causing borrowers to owe more than originally borrowed
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Riparian Land
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Bounded by or touching a natural watercourse; riparien owners acquire the right to use the water without actually owning it; bounded by or touching a natural watercourse such as a river or stream; land must actually contact water; can be applied generally to any water
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Litoral Land
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property that borders an ocean, sea or one of the great lakes
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Improvements
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permanently attached to the land or building; legally regarded as part of the property
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Bill of sale
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Specific doc used to transfer ownership of personal property items from seller to buyer; accompanies deed at closing (deed only transfers title to real property)
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Types of real estate
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1. Residential 2. Commercial (specifically for income producing) 3. Industrial (manufacturing, waterhouse or lab) 4. Agriculture 5. Special Purpose (churches, parks, schools, cemetaries and municipal or government owned land 6. manufactured housig
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|
Modular Home
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constructed at an offsite factory in a manner similar to a manufactured home, but the undercarriage or frame is designed to be removed when the home is installed on a permanent foundation
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Service Provision Agreement
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Listing and Buyers agency agreement; o Include the individual representation of sellers or buyers as well as dual agency; o Under buyers agency, broker enters into agreement with a home buyer to exclusively represent him in the location of a suitable property
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Creation of Agency
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granting permission for sellers agency relationship, a broker acting as an agent is granted permision by the seller under the terms of the listing agreement; allows broker to represent sellers interests to third parties (buyers)
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Principal
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party who hires the agent
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Types of agents
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1. universal 2. general 3. special
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universal agency
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power of attorney, Empowered to conduct every lawful transaction that a principal can delegate: right to represent, negotiate and sign contracts
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general agent
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given broad negotiating power (property managers)
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Special agent
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conduct a single or series of transactions with agency ending once complete (limited authority)
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Special warranty deed
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guarantees only the period of time the granter held the title
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Surface rights
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surface area and underlying soil, permanently attached
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Avulsion of land
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loss or addition of land
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Accretion of land
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form of erosion
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Open Listing
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seller retains option to list with a number of brokers
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Exclusive listing
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seller reserves right to sell himself without paying commission to realtor
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Exclusive right to sell
|
listing broker paid regardless of who sells
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Designated agency
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2 agents with same broker
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Transfer tax
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seller pays $8.60 per $1000, rounded off to nearest 500
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Life estate
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limited to life of owner, reverts back to buyer on death
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Lis Pendens
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notice of pending lawsuit clouds the title
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Tenancy in common
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2 or more property owners
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Abstract of title
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full history of all real estate transactions
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Police Power
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right of the state to pass zoning regulations
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Eminent Doman
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State authorization to take private property for public use
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Capital gain
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true profit gained from appreciation of property
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Right to farm act
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must disclose working farms in area
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Dredging
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removing soil or minerals from wetlands; prohibited by DEQ
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Fee simple estate
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freehold interest in land that carries with in the right to possession and ownership, inheritable by heirs of the owner, interest can also be without condition or limitation or it can include a limitation depending on the wishes of the grantor; Fee simple absolute- created in a person, the grantee, and his heirs and assigns forever, without limitation or condition; highest and most common form of ownership available for residential property; Fee simple defeasible- grantor conveys his property with a condition, restriction or other limitation as to how the grantee can use the property as the new owner; typically run with the land to future grantees; seller-grantor is the one who places the condition on the title
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Statute of frauds
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states that contracts must be in writing in order to transfer or create an interest in real property
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Amortization
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repayment of a financial obligations in regular installments; include repayment of principal interest
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Hypothecation
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Pledging real property as security for a debt white retaining possession
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Short sale
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lender agrees to release a lien, enabling seller to sell even though the proceeds will not fully satisfy the lien
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Contingency clause
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releases buyer or seller from obligation upon a financial or home inspection failure occurs during the executor period of the contract
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Negative amortization loan
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monthly mortgage payments that are less than the interst due on the loan, causing borrowers to owe more than originally borrowed
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Mineral rights
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entitled to surface extending downward to the center of the earth including the rights to any minerals located therein; not always included
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Air rights
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reasonable distance above surface area; may be subject of easements
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Encumbrances
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any right that exists in a person other than the owner; runs with the land; include claims, liens, charges or liability that is attached to and binding upon the real property
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Easements
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Form of interest in a property; Creates a limited right to use or enjoy the property of another for a particular purpose; Principal right is that of ingress and egress, meaning the right to enter and exit the subject property to accomplish the purpose of the easement
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Easement appurtenant
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· Based on two adjoining properties; one property contains the easement that benefits the neighboring property, runs with the land
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Dominant estate
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· property that benefits; owner is known as dominant tenant
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Servient estate
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contains and is burdened by easement
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Easement in gross
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creates a personal interest in the land of another; only a servient estate exists; ex: common access ways to power, telephone and cable lines, highway and railway easements, public utilities
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Easement by implication
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implied or presumed to exist by law even though the parties to a transaction may not have created it or reduced it to written form; rule of implication states that when the law gies anything to a person, that person receives by implication all that is necessary for its enjoyment; ex. common driveway
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Easement of necessity
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ú considered a necessity to the use of the land and not just implied from the owners prior use; most common example- landlocked
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Easement by prescription
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results from the long term enjoyment and uninterrupted use of a servient land by one who is not the owner
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Easement termination by:
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ú Written release of the interest by the dominant tenant
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Freehold Estate
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ownership is implied, inheritable, must involve land and exist for an indeterminable period of time- duration of ownership measured either by the lifetime of the owner or it is indefinetly inheritable
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Life estate
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Actual ownership interest in property with a duration that is measured by the lifetime of the new owner (life tenant) Upon death of life tenant or third party, the property either reverts back to the grantor or transfers to a different party named in the deed; must create a future interest; Ordinary life estate (for the life of the grantor); Pur autre vie (for the life of another); Dower: widow is entitled to an interest in certain lands owned by her deceased husband
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Reversion interest
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· created when an estate reverts to the original fee simple owner; arises from a life estate when life tenant dies
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Remainder interest
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· created in someone other than the grantor; party named in the deed to whom property passes upo the life tenants death is called a remainderman; should the remainderman predecease the life tenant, the remainderman’s heirs or assigns are entitled to the property rather than the grator
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Leasehold
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Implies that the holder has a mere possesory right, anything less than a freehold; ex. Rental agreement or lease
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Market Value
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highest and most likely price a ready, willing and able buyer would pay
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Arms length
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negotiated between two independent and unrelated parties, each working to protect his own best interest, without one being under the influence or control of the other
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Specific elements of value
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DUST: demand, utility, scarcity, transferability & Conformity- The maximum value of land is realized when its use is consistent with and conforms to existing land use standards such as zoning ordinances, building codes and restrictions and wetlands ordinances
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Housing bubble
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A rapid and unsustainable increase in housing prices, to the extend that a sudden drop in value (or bursting of the bubble) can result in a widespread and significant loss of equity
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Factors necessary for a housing bubble
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Phase 1- prices rise and inventory falls, Phase 2- prices for all inventory rises
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Problems related to local housing bubbles
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property owner, short sale and foreclosure, lending and appraisal and valuation issues
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Market or sales comparison approach
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property is compared to similar properties that have recently sold
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Replacement cost or summation approach
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Calculate cost of rebuilding the subject property using present day construction techniques, materials and costs; Establishes a replacement cost which is then adjusted by subtracting the cost of any necessary repairs, deferred maintenance or depreciation that may be affecting the subject propertyValue of the raw land is estimated as if it were vacant then added back to the adjusted rc
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Replacement cost or summation approach steps:
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determine land value, calculate cost of construction (reproduction and replacement cost, cost per sq ft), estimate depreciation
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Michigan definition of appraisal:
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any opinion, conclusion or analysis relating to the value of real property
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Key provisions of listing agreements
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Names of the parties to the agreementLegally sufficient description of the propertyType of listing (open, exclusive, non-exclusive, limited service, etc)Sale price and other essential termsItems such as fixtures to be excluded or personal property to e included as part of the saleBrokerage fee and protection period detailsNondiscrimination clauseEarnest money deposit with disbursement language if the buyer defaults and signs a mutual release of depositRight to submit the property to multiple listing service and fee splitting policy with cooperating brokers, right to erect a forsale sign, to post the listing on the internet and to use a lockbox on the propertyMandatory disclosures, certifications and inspections
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