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36 Cards in this Set
- Front
- Back
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Allodial system |
The basis for development of land ownership in fee simple absolute, the form of ownership that we now enjoy under our private real property |
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Personal property |
Personal property ownership is transferred by a bill of sale and is encumbered by a security agreement when it is used as a collateral for a |
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Commercial/trade fixtures |
Personal property utilized by commercial tenants in pursuit of their occupations retains its personal property quality no matter how permanently it is affixed to the real estate |
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Freehold estate/fee simple/fee simple absolute |
Ownership designates the highest bundle of rights a person may enjoy in our allodial system and is for indeterminable length of time. The ownership is determined by the deed held. |
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Freehold estate/fee simple/fee simple absolute |
Ownership designates the highest bundle of rights a person may enjoy in our allodial system and is for indeterminable length of time. The ownership is determined by the deed held. |
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Equitable title |
when property is sold under a land sales contract |
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Freehold estate/fee simple/fee simple absolute |
Ownership designates the highest bundle of rights a person may enjoy in our allodial system and is for indeterminable length of time. The ownership is determined by the deed held. |
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Equitable title |
when property is sold under a land sales contract |
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Current ownership |
Concurrent ownership in California includes tenants in common, partnerships, community property, community property with a right of survivorship, and joint tenancy. |
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Tenants in common or partnerships |
Own undivided equal or unequal inheritable shares in real property. These shares can be passed on to heirs |
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Community property |
Ownership that is limited to equal, undivided interests between husbands and wives of properties acquired after marriage with community funds. After death of one partner their interest is divided according to their will. The right of survivorship also dictates that upon death of one partner the property belongs entirely to the one alive. |
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Leasehold estate |
A leased property is sold subject to the terms of the existing lease. The tenant had the right to peaceful possession of the property for the term of the lease. |
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Community property |
Ownership that is limited to equal, undivided interests between husbands and wives of properties acquired after marriage with community funds. After death of one partner their interest is divided according to their will. The right of survivorship also dictates that upon death of one partner the property belongs entirely to the one alive. |
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Leasehold estate |
A leased property is sold subject to the terms of the existing lease. The tenant had the right to peaceful possession of the property for the term of the lease. |
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Real estate qualities for collateral |
Physical: fixed in place Economic: relatively scarce Social: public's interest |
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Real estate common law |
- Police powers regulates use of property for the public's welfare, and by eminent domain, which gives the gov. Sovereign powers of condemnation over private property for the community's benefit. Eminent domain requires compensation of owner since it's considered "taking" of the property. |
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Characteristics of real property investments |
Fixity: fixed in location Longevity: durability of improvements & permanence of land. Permanence: it has to be permanent Risk: putting wealth in an unpredictable market Market Segmentation: the market can be influenced by so many factors |
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Purpose of investing in real estate |
To preserve and enhance capital To earn a profit To enjoy tax relief
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Advantages of investing in real estate |
Relatively High Yields Leveraging Opportunities Income Tax Flexibility High Degree of Personal Control |
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Financial institutions that give real estate loans |
Primary Market Commercial Banks Savings Banks Life Insurance Companies Credit Unions Secondary Market Fannie Mae Freddie Mac Ginnie Mae Federal Home Loan Bank |
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Dodd-Frank Act of 2010 |
Improving accountability and transparency to avoid "too big to fail" institutions and to end bailouts to protect the American taxpayer from abusive financial services practices. |
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Consumer Financial Protection Bureau(CFPB) |
By order of CFPB, mortgage lenders are to focus on specific underwriting guidelines to verify and determine a borrower's ability to repay a home loan over the long term before extending credit. A requirement that consumers have a total debt-to-income ratio that does not exceed 43% of income. |
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Disintermediation |
When individuals, seeking higher yields, remove more funds from financial institutions, resulting in a net loss of deposits. There's a continuous competition for the use of money among individuals, industry, and government. |
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Real estate financing rerationship |
Real estate finance involves pledging real property collateral to back up promise to repay a loan. If a borrower defaults on repayment promises, the lender is legally able to foreclose on the real estate and sell it to try to recoup the loan balance. |
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Hypothecation |
The borrower retains rights of possession and control, while the lender secures an underlying equitable right in the property. If the borrower repays the loan in accordance with its conditions, the lender will release the underlining interest, also called lien. However, if the borrower defaults on the promise to pay, the lender will perfect the lien or equitable position into one of full ownership- a fee simple absolute. |
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Leverage |
The use of proportionally small amount of money to secure a large loan for the purchase of property. |
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National mortgage market contributors |
Fannie Mae(FNMA): Federal National Mortgage Association Freddie Mac(FHLMC): Federal Home Loan Mortgage Corporation Ginnie Mae(GNMA): Government National Mortgage Association
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Money |
A medium of exchange or means of payment A storehouse of purchasing power A standard of value |
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Personal Income |
Earned from wages, salaries, commissions, interest, and profits from businesses or investments. |
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Personal Income |
Earned from wages, salaries, commissions, interest, and profits from businesses or investments. |
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Disposable personal inckme |
Personal income minus taxes, rent, and other nontax payments. |
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Discretionary Income |
Funds left from savings and allocated for short-term reserves, there are funds for investment. |
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The 1934 Gold Reserve Act |
Stipulated that 13.71 grams of pure gold was considered sufficient to back up each dollar, and the privilege of exchanging paper or coins for gold was eliminated. |
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Economic stability is directly linked to the supply and cost of money |
The larger the supply of money available, the greater the economic activity. When the economy is infused with not spendable cash, the possibility of an increase in spending activity is enhanced, complemented by concurrent demands for increased production come more jobs. More people are employed and spending money. |
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Basic money supply |
M1: cash in public hands, and in commercial banks and institutions. M2: all of M1 plus money market mutual fund shares as well as savings deposits and time deposits of less than $100,000 at all depository institutions. M3: All of M2 plus large time deposits at all depository institutions. |
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The Federal Reserve System |
Nation's "monetary manager" is charged with the maintenance of sound credit conditions to help counteract both inflationary and deflationary movements and with a role in creating conditions favorable to high employment, stable values, internal growth of the nation, and rising levels of consumption. |
