Real Estate Finance Chapter 3 And 23

Front 1

The system whereby land was owned by kings with lords given right to use is _____

Back 1

Feudal

Front 2

_______ were sub-tenants of lords

Back 2

Vassals

Front 3

System- adopted by U.S. after revolution of 1776 encouraging private ownershihp

Back 3

Allodial

Front 4

4 government rights in land

Back 4

1. Right of Taxation
2. Eminent Domain
3. Police Power
4. Escheat

Front 5

(city and county)

Back 5

Right of Taxation

Front 6

condemnation for the public good
* property owners must be compensated

Back 6

Eminent Domain

Front 7

Right of government to enact and enforce laws for the public good
* may restrict the use or utility of land

Back 7

Police Power

Front 8

Examples of Police Power

Back 8

Zoning,
Fire Codes,
Building Codes

Front 9

Property reverts to the state when abandoned or owner dies intestate (without a will)

Back 9

Escheat

Front 10

Private Ownership rights: _______ is the total bundle of rights minus the 4 government rights.

Back 10

Fee Simple

Front 11

_____ Is a legal interest or right in real estate.

Back 11

Estate

Front 12

Anything that reduces the fee simple package of rights. (test)

Back 12

Encumbrance

Front 13

Right to use another's land (test)

Back 13

Easement

Front 14

Example of easements?

Back 14

Utility Easement
Pipeline Easement
Ingress/Egress

Front 15

Prolonged use without permission (10 year statute)

Back 15

Easement by Prescription

Front 16

Intrusion of an item onto or over another's land

Back 16

Encroachment

Front 17

The owner of _____ land can remove the ______

Back 17

1. Encroached
2. Encroachment

Front 18

Claim on a property to secure debt

Back 18

Liens

Front 19

4 Main types of Liens

Back 19

1. Tax Lien
2. Mechanics Lien
3. Judgement
4. Mortage Lien

Front 20

Superior to all other liens

Back 20

Tax Lien

Front 21

Can force the sale of property

Back 21

Mechanics Lien

Front 22

Collected when defendant's non -homestead real estate is sold
*** income from sale of homestead can be seized

Back 22

Judgement

Front 23

Voluntary lien created by property owner to secure the repayment of a loan on the property

Back 23

Mortgage Lien

Front 24

Voluntary Lien ex:

Back 24

Mortage

Front 25

Involuntary Liens ex:

Back 25

Tax and Mechanics Lien

Front 26

____ lien- specific property is used for collateral

Back 26

Specific

Front 27

_____ lien- ex judgement lien

Back 27

General

Front 28

aka restrictive covenants

Back 28

Dead Restrictions

Front 29

Is a public restriction

Back 29

Zoning

Front 30

Place restrictions on historical buildings in certain section of cities.

Back 30

Historical Districts

Front 31

____ Estate: conveys an estate for someone's life
* based on the _____ or a 3rd party
____ has reversionary interest

Back 31

Life
Life Tenant
Grantor

Front 32

____ Estates- created by state law

Back 32

Statutory

Front 33

Property laws (10)

Back 33

Community

Front 34

_______ Laws
42 of the 50 states have some type of ________ law

Back 34

Homestead

Front 35

Homestead are protected from a forced sale except for (5 reasons)

Back 35

1.Property tax lien
2. Fed, income tax liens
3. Mechanics lien
4. Owelty of Partition
5. Hoa

Front 36

Rural - ____ acres for married couple and ____ acres for single person

Back 36

200
100

Front 37

Urban - ___ acres in city, town or village for either single person or married couple.

Back 37

10

Front 38

There is no limit on the value of _______ in Texas

Back 38

Homestead

Front 39

1. Actual ownership of the property
2. Undetermined duration

Back 39

Freehold estate

Front 40

1. Possession but no ownership
* the lessee is the tenant and lessor is the landlord/owner
2. Determined Duration

Back 40

Leasehold estate

Front 41

4 types of leasehold estates

Back 41

1. Estate for years
2. Periodic Estate
3. Estate for will
4. Tenancy at sufferance

Front 42

Specific starting time and ending time
* no automatic renewal

Back 42

Estate for years

Front 43

Specific start and ending
* automatic renewal
ex: month to month lease

Back 43

Periodic estate

Front 44

Most Typical

Back 44

Periodic Estate

Front 45

Can be terminated by either party at any time

Back 45

Estate for will

Front 46

Tenant stays beyond legal time without the consent of the landlord

Back 46

Tenancy at Sufferance

Front 47

Any legal restriction that controls how a property may be used

Back 47

Land Use Controls

Front 48

A property's value is affected by the ____ (use) of a property.

Back 48

Utility

Front 49

the dividing of land into zones to regulate the use of property

Back 49

Zoning

Front 50

Zone is applied by _________

Back 50

Incorporated cities

Front 51

6 examples of zoning requirements

Back 51

1. Lot set backlines (6’side, 20’ front)
2. Minimum Lot size (6,000) sfr
3. Lot depth and width (60 front; 100’ depth) sfr
4. # of units per acre
5. # of parking spaces required
6. Building use
7. Number of unrelated inhabitants in R-1 (single family) district

Front 52

No more than _____ unrelated inhabitants allowed.

Back 52

two

Front 53

City planning and zoning commission can change the zoning of a property through

Back 53

Variances.

Front 54

____ largest city in USA with no zoning.

Back 54

Houston

Front 55

Zoning laws are enforced through the use of __________ and _____________.

Back 55

1. Building permits
2. Court Action

Front 56

Legally non-conforming uses are ____________ uses

Back 56

Grandfathered

Front 57

________ is changing the allowed use from a higher density to a lower density; usually no compensation from the city is given.

Back 57

Down Zoning

Front 58

Chapter 23

Back 58

Chapter 23

Front 59

________ a property that separates one use from another

Back 59

Buffer Zone

Front 60

_________ developers must comply with city and county regulations before a subdivision plat will be accepted and recorded

Back 60

Subdivision Regulations

Front 61

Examples of _______
Street widths and lengths
sidewalks and lighting
drainage

Back 61

Regulations

Front 62

________ provide minimum acceptable materials and construction standards

Examples:
electrical and plumbing
fire exits

Back 62

Building Codes

Front 63

Texas legislature gave __________ the power to annex.

Back 63

Incorporated cities

Front 64

the inclusion of unincorporated areas into the city

Back 64

Annexation

Front 65

Annexation is important to (2 things)

Back 65

1. Control Growth
2. Increase Tax Base
3. Prevent a city from being surrounded by small cities with smaller tax rates

Front 66

Being surrounded can create urban decay due to population "______"

Back 66

Flight to Suburbs

Front 67

City has right to ____ without the consent of the population but after public hearings.

Back 67

Annex

Front 68

________ automatically extends a city ETJ

Back 68

Annexation

Front 69

Cities must provide municipal services (water and sewer) within
_______ years of annexation.

Back 69

Two

Front 70

Police and fire protection must be provided _________________

Back 70

immediately

Front 71

Citizens can petition for ______ if services are not provided.

Back 71

de-annexation

Front 72

is defined as: "unincorporated areas contiguous with limits of an incorporated city".

Back 72

Extra territorial jurisdiction (ETJ)

Front 73

A city has the right to extend its ________ to the ETJ area

Back 73

Ordinances

Front 74

The are of ETJ depends on the _____ of the city

Back 74

Population

Front 75

San maras has _____ Miles ETJ (50000)
Austin has ____ miles of etj

Back 75

3
5

Front 76

Deed restrictions: _________ that are biding on all subsequent owners and lenders

Back 76

Restriction Covenants

Front 77

Example 1: John Doe sells half his land and restricts future use against mobile homes

Back 77

Deed restriction examples

Front 78

Example 2: Subdivision deed restrictions requiring 1,200sf minimum, 25%
masonry, no livestock

Back 78

Deed restriction examples

Front 79

Subdivision deed restrictions are recorded in

Back 79

County Clerk's Office

Front 80

Deed restrictions provide _____ control than zoning and building codes

Back 80

More

Front 81

are not limited to public health, safety and welfare as are zoning and building codes

Back 81

Deed Restrictions

Front 82

Who enforces deed restrictions?

Ex. HOA, subdivision residents or seller

Back 82

1. Anyone negatively affected (neighbors)
2. Any city without zoning (Houston)

Front 83

The only limits to _____ are when they are illegal under existing laws

Back 83

Deed Restrictions

Front 84

Courts have generally sided with "------------" when interpreting restrictions

Back 84

Free and unrestricted use

Front 85

Restrictions banning livestock would not include

Back 85

Pot Bellied Pigs

Front 86

Deed restrictions against non-whites are

Back 86

Illegal and unenforceable ownership.