New York Real Estate Salesperson Guide Ch 7: Estate & Interests

Front 1

* = question on test

* What is severalty?

Back 1

means all others are "cut off" (severed) from the RE

Front 2

What is CMA?

Back 2

Comparative Market Analysis

A comparison in value of your house to others like yours

Front 3

* Who does CMA?

Back 3

Salesperson & Broker

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* What is regualtion Z?

Back 4

it is the Truth in Lending Act

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What is the Truth in Lending Act?

Back 5

if you use certain trigger words in an ad, you must define them

types of triggers are: Apr or downpayment

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* What is HO #6?

Back 6

Home Owners Insurance

Note: there are 6 types.

#6 is condo/homes

#4 is renters insurance

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Bundle of Rights are:

Back 7

(Conferred by ownership)

1. Right of Possession

2. Right of Quiet enjoyment

3. Right of Exclusion

4. Right of Control

5. Right of Disposition

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Define Right of Possession

Back 8

Owner may use land as they wish so long it does not interfere with other people's rights

Front 9

Define Right of Quiet enjoyment

Back 9

the freedom to possess and use the land without the intereference from other people or society

(note: This includes the responsibility to make sure that their neighbors' enjoyment is not affected)

Front 10

Define Right of Disposition

Back 10

Owners right to transfer all or some of the rights to other people

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* Bill of Rights includes what five rights?

Back 11

P uppies = Possession

Q uickly = Quiet enjoyment

E at = Exclusion

C anned = Control

D og food = Disposition

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Define Right of Exclusion

Back 12

The right to restrict others from the use / entering RE

Front 13

Define Right of Control

Back 13

The right to physically alter the RE

(permitting changes align with local ordinaces and zoning)

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Interfering with Real Property Rights

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1. Tresspassing (people)

2. Encroachment (things)

3. Nuisance (sight, sound, odor)

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Define Appurtenances

Back 15

Rights that go with a real estate property

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Land Rights

Back 16

remember inverted pyrimad: the tip is at the center of the earth and the base extends into the sky

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Air Rights

Back 17

rights over airspace over a parcel of land

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What specific rights do owners have to use water on their property?

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1. Riparian

2. Littoral

3. Appropriative rights

4. Percolating water rights

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Riparian

Back 19

Deals with rivers and streams.

if the body of water is navigational, owner's right extends only to edge.

if the body of water in non-navigational, owner's right extends to the need center

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Littoral

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Deals with ocean, bay or large lake.

Owner may have unrestricted use of the waterway, owner only owns the land up to the mean high water mark.

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Appropriative rights

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Rights granted by gov't independent of land ownership. ie farmer able the use of water to irrigate crops

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Percolation Rights

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use of water through soil

i.e digging well on property

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Mineral Rights

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Owner owns all solid minerals in and under the land

Minerals are considered real property until extracted

Mineral rights can be leased, or sold seperately from land

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Rule of Capture

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pertaining to oil and gas, whoever drills a well on their land owns all the oil or gas the well produces EVEN though it may come from under a neighbor's land

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Erosion

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a gradual wearing away of land by wind, rain or other natural forces

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Accretion

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a small gain of land because dirt (water born silt) is deposited

i.e. river deposits silt where the river turns

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Alluvion

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the act of solid material deposited along a shore by accretion

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Alluvium

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the act of solid material (deposit of clay, silt, sand, and gravel) left by flowing water creating fertile soil

Front 29

* When wheat is cut and taken to flour mill, what kind of property is it?

Back 29

Personalty or Chattel

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Reliction

Back 30

Slow gain of land due to receding water.

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Avulsion

Back 31

Land torn away from flowing water

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Fixtures

Back 32

items of personal property that have been permanently atttached to the land

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What are the forces of nature

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1. Erosion

2. Accretion

3. Avulsion

4. Reliction

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Attachments

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are also known as improvements

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Fixtures can be:

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1. Attached

2. Annexation

3. Adoption

4. Association

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Annexation

Back 36

Becoming physically attached to real property

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Association

Back 37

Attached conceptually due close association

ie keys to house

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Adoption

Back 38

Attached due to unique feature of a property

ie custom made curtains for an unusual large window

Front 39

Define trade fixture?

Back 39

Any equipment / personal property a commercial tenant installs for business purposes

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* What is a trade fixture

Back 40

A display case aka vitrine

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Define interest

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Property right or a claim against property; may be an ownership right, an easement or financial claim against the title (ie mortgage, lien).

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Estate

Back 42

A possessory interest in real property, now or in the future

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Freehold Estate

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Possessory interest of uncertain duration

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Fee Simple or Fee Simple Absolute

Back 44

Full ownership with complete Bundle of Rights

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Qualified Fee Estate

Back 45

RE comes with condition.

ie rich lady gives deed to a university on condition they use her house as an office.

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Life Estate

Back 46

Is a freehold estate that last only as long as a specified person - the measured life - lives

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Life Tenant

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Is the holder of a life estate

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Lesser Estate

Back 48

Limted conditional usage

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* Unless it is a lesser estate, what kind of freehold is it?

Life estate

Estate for years

Esate at will

or

fee simple

Back 49

fee simple

Front 50

* Sam wills his house to his grand daughter for as long as Sam's wife lives. What estate is it?

Back 50

Life estate pur Autre vie

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Life Estate Pur Autre Vie

Back 51

for another's life

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Reversionary

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When the property reverts to the grantor, or grantor's heirs, upon the death of the measuring life

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Remainder

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the grantor grants the life estate to one person, then unto another person ( the remainderman), upon the death of the measuring life.

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Leasehold Estate

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an interest that gives the holder a temporary but exclusive right to possession of the estate without title. (more limited than a freehold)

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Leaseholder

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is a lessee or tenant

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Lessor or landlord

Back 56

owner who leases property to tenant

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Forms of ownerships

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1. Deed

2. Devise

3. Descent

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What is deed?

Back 58

document that transfers ownership of real property.

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What is Devise?

Back 59

Is when real property is transferred because of a will.

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What is Descent?

Back 60

Is when real property is transferred to an heir in the absence of a will.

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What is Ownership in Severalty?

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Is a sole form of ownership, only one person or legal entity holds title to that property.

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Co-ownership or Concurrent ownership

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two or more persons or legal entities share title to real property, with each person having an undivided interest in the property.

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Undivided Interest

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gives each co-owner the right to posession of the whole property.

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Types of Co-Ownership:

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1. Tenancy in Common

2. Joint Tenancy

3. Tenancy by the entirety

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Tenancy In Common

Back 65

No survivorship. ownership based on money

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Joint Tenants

Back 66

Survivorship. equal ownership

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Tenancy in Entirety

Back 67

married couple of equal right of possession

Front 68

* One roomate dies and the other roomate automatically gets the RE. What kind of ownership was it?

Back 68

Joint Tenants

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* When the bank forecloses on Sam's condo, what can they take?

Back 69

Sam's apartment and his undivided interest in common areas.

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What are the different types of Unities?

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1. Unity of possession

2. Unity of interest

3. Unity of time

4. Unity of title

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Unity of Interest

Back 71

all co-owners hold equal ownership interest

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Unity of Time

Back 72

all co-owners acquired their interest at the same time

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Unity of Title

Back 73

all co-owners acquired their interests by the same deed or will.

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Unity of possession

Back 74

all co-owners hold the same undivided right to posess the whole property

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Types of partnerships:

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General = Daily operations

Limited = Investors

(silent)

Corporation

LLc

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General Partnerships:

Back 76

High Risk / Low Tax

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Corporation

Back 77

Low Risk / High Tax

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LLc

Back 78

Low Risk / Low Tax