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71 Cards in this Set
- Front
- Back
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Individual who subdivides land |
Subdivider |
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Person who puts improvements on the land |
Developer |
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Is a real estate license required to subdivide land |
No |
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Why were laws for subdivisions enacted |
Prevent fraud and protect the public |
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The right to adopt subdivision regulations falls under what govt power |
Police |
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Private land use controls are called |
CC&Rs |
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What controls an orderly growth of a municipality |
Zoning |
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Parcels of land 160 acres or more |
Bulk land |
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Land divided into 6 or more parcels, each parcel being 36 acres or more, but less than 160 acres |
Un subdivided land |
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Land that is divided into 6 or more parcels, each parcel being less than 36 acres |
Subdivided land |
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Land that is divided into 5 or fewer parcels |
Lot split |
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No structure on the property and no plans to construct within 2 years |
Unimproved lot |
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An actual structure exists or there is a plan to construct within 2 years |
Improved lot |
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Alternative names for a Public Report |
Subdivision Disclosure Report Commissioners Public Report |
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A Public Report is for |
Information only |
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What is an SDR |
Subdivision Disclosure Report |
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The maximum deposit which can be accepted with a lot reservation is |
$5000 fully refundable |
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How long are developers required to keep copies of the Public Report |
5 years |
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Subdivision Disclosure Reports are required for the sale of |
Subdivided and Unsubdivided land |
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Subdivision Disclosure Reports are not required for |
Bulk and lot splits |
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If a prospective buyer enters into a contract without receiving the Public Disclosure Report, they have a voidable contract for how long |
3 years |
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What is the purpose of the Public Report |
Protect the public |
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What is a rescission period |
Legal remedy to cancel a contract |
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What is the rescission period on an improved lot |
None |
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What is the rescission period on an unimproved subdivided lot that has not been inspected by the buyer |
6 months from contract date |
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What is the rescission period on an unimproved subdivided lot that has been inspected by the buyer |
7 calendar days |
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Name the three penalties for violating the Public Disclosure Requirement |
$1000 fine, suspend or revoke license, 3 year voidable |
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What is unique about earnest money deposits when purchasing a home in a new subdivision |
Goes into the developers operating fund |
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What must a subdivided lot provide |
Ingress and egress |
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If a subdivision is located in an AMA, what must the subdivider provide |
Cert of assured water |
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Who issues the cert of assured water |
ADWR |
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How long do developers need to keep advertising materials |
3 years |
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An unintentional false statement is called |
Misrepresentation |
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Name two things a developer cannot say in advertising |
No risk of loss Commissioner endorsed |
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Name three types of income |
Earned Portfolio Passive |
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Which is the highest taxed |
Earned |
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How does the IRS come to the Cost Realized |
Selling price-cost of sale |
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What type of real estate cannot be depreciated |
Land |
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What is an investors allowance for wear and tear, deterioration or obsolescence of a property |
Depreciation |
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What allows the investor to deduct a portion of a properties value from gross income each year |
Cost recovery |
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How long can you take a cost recovery deduction |
The life of the asset |
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What is cost recovery allowed for |
Income properties and a portion of a non income property that is used to produce income (home office) |
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A homeowner is eligible for the capital gain exclusion if they lived in the home as their primary residence for |
2 of the last 5 years |
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Married couples may exclude a gain up to |
$500,000 |
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A single individual may exclude a gain up to |
$250,000 |
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The economic life on residential property is |
27.5 years |
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Property exchanges must fall under the definition of |
Like-kind |
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Who holds the money until the exchange is made |
Qualified intermediary often a bank or attorney |
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What is the purpose of a 1031 exchange |
Defer taxes |
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Tax deferred exchanges must be completed in |
180 days |
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Cash or items of value to even out the exchange is called |
Boot |
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Boot is |
Personal property |
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An owner whose land is divided into parcels |
Subdivider |
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Person who puts improvements on a property |
Developer |
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Dividing land into 5 or fewer parcels |
Lot split |
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Dividing land into 6 or more parcels each parcel less than 36 acres |
Subdivided |
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Dividing land into 6 or more parcels each parcel 36 or more acres but less than 160 |
Unsubdivided |
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A parcel of land that is 160 acres or more |
Bulk land |
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Legal remedy of cancelling a contract and restoring the parties to status quo |
Rescission |
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A lot which has a structure on it or a contract in place stating that a structure will be built within 2 years |
Improved |
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A lot that has no structure and no plans to build a structure within 2 years |
Unimproved |
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Report that is required prior to selling subdivided or Unsubdivided land |
SDR/CPR |
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Having no legal force, not enforceable |
Void |
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A contract that is subject to rescission by one of the parties |
Voidable |
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Falls under police power, allows for orderly growth of a municipality |
Zoning |
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Using borrowed funds to purchase investment property |
Leverage |
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Spendable income from an investment after deducting from gross income all operating and fixed expenses |
Cash flow |
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Property subject to wear and tear |
Depreciation |
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Cash or items of value used to even out a 1031 exchange |
Boot |
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Investors purchase property for an increase in value |
Appreciation |
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Possibility of loss from an investment |
Risk |
