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12 Cards in this Set
- Front
- Back
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I. Real vs Personal property |
Real: • immovable (real goes with real estate) • the house itself and anything that is attached to that house Personal: • movable (personal goes with the person) • are things that goes with the person (i.e., set of keys) • a lease is considered a personal property it’s a contract with a person not with the real estate |
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II. Estate in property Freehold vs Less than freehold estate |
Freehold • tend to be indefinite in duration • insinuate ownership Less than Freehold estate • for a more limited amount in time • leases |
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Freehold (3 categories) |
• fee simple absolute - highest degree of ownership (always encumbrances such as taxes) • fee simple defeasible - you can have the estate but you can lose it upon happening of a certain event like selling alcohol a condition put on your title to the property • life estate - you own the property based upon someone else’s life |
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Less than freehold estate (4 types of less freehold estate) |
(1) Estate for years - • it’s a very define period of time (like June to April or Memorial Day to Labor Day) • the moment you move in you know when you are moving out • therefore no notice is needed to be given • define period of time from the start (2) Periodic tenancy - recurring time period (i.e. month to month) (3) Estate at will - end at any time (4) Estate at sufferance - it did end but tenant did not leave |
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III. Government Powers P. E. T. E. |
(1) police power - don’t take property away from you but tell you how to use it (Ex. Building codes, rent control, zoning) (2) eminent domain - they take the property away from you, a just compensation is paid through a process called condemnation (ex. to condemn- you can’t use it anymore but we will pay you for it) (4) taxation - got to pay the man (5) escheat - when the government takes your property because you have no heirs, can’t find who to give it to you after you pass away so the property is escheated to the state |
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IV. Types of ownership (2 types of ways to own property) |
(1) severity - sole ownership • you own it by yourself (2) concurrent estate - ownership with others
2 types of concurrent estate (a.) joint tenancy [T T I P] - time, title, interest, possession - right of survivorship ( if I take property with a joint tenant and I die you get the property I cannot will it to my heirs) (b.) tenancy in common - unity of possession - NO right of survivorship (You can will to your heirs because you don’t have the right to survivorship) |
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V. Essential elements of value S. T. U. D. |
• scarcity - how much of there is it • transferability - can you sell it • Utility - can you use it • demand - do people want it |
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VI. Types of depreciation (how your property can depreciate) |
• economic obsolescence - property loses value due to calls outside the property (ex. Airport being built, train tracks being lay down, crime in the neighborhood) • functional obsolescence - poor design (ex. 5 beds 1 bath) • physical deterioration - home falling apart |
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VII. 3 appraisal methods |
(1) market data approach - uses comps ( ex. if one item is $1000 and the one next to it is very similar than that will be $1000 too) (2) cost replacement approach - finds value by looking at how much it will cost for places building “ brand new” (ex. Typically use for special purpose, property like libraries, schools, and police station) (3) capitalization income approach - how much does the income of that property contribute to the value (ex. If the building draws a lot of income, then that building jobs a lot of value) How much more?? This is what the approach calculates |
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VIII. Deeds vs Title |
(1) deeds - evidence of the transfer (2) title - ownership |
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IX. Liens |
• means you owe money • falls into 2 categories (a) specific lien - if you don’t pay that money, they can go after one specific mainly your house (ex. mortgage, property taxes or mechanic liens) (b) general lien - if you don’t pay that money, they can take everything |
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X. Fair housing laws |
• deals with discrimination • Enacted in 1968 — Example of violations — (1) steering : steering buyer where to go based on their race, etc. (2) blockbusting: (sellers) ex. You better sell your house because those people are moving to town you don’t want to live by those people. (3) panic peddling: (sellers) (4) panic selling: (sellers) (5) redlining: (loans) ex. Those people live in that area I’ll circle it on the map. Don’t lend money to those people to move in this area. |
