Chapter 4, Chapter 4, RE Ch. 4: Government Controls & RE Markets, REE 3043 Chapter 4, REAL ESTATE CH. 4, Chapter 4 - Government Controls and Real Estate Markets, Real Estate Chapter 3 - Conveying Real Property Interests, ch 3 finance RE, Chapter 3, C...

All else Equal, A rise in the general level of interest rates

Reduces property values and therefore tends to slow construction

true or false: the activities of federal, state, and local governments have little need for the services of real estate professionals

false

The old notion that a person's home is their castle comes closest to which real property interest? -Life estate -Freehold estate -tenancy for years -Fee simple absolute

fee simple absolute

Which of the following types of ownership estates is the most complete bundle of rights, and therefore carries the greatest value?

fee simple absolute

Which of these statements best characterizes the doctrine of constructive notice?

if it is possible to know about a claim it is enforceable

Real estate markets are ______ because ______ -immobile; potential users are widely dispersed -localized; competing properties are generally in close proximity -localized; competing properties are widely dispersed

localized; competing properties are generally in close proximity

The order of steps from first to last in creating a chain of title are:

locate, evaluate, reconstruct, identify

Includes both real and personal property

elective share

Limited to real property only

dower/curtesy

Real estate generates over______ Percent of US gross domestic

25

Real estate generates over _____ percent of U.S. gross domestic product.

25%

The most accurate conclusion about the regressivity of the property tax is that it is:

regressive, but when benefits are considered, the net result may be fair.

Once senior liens such as property tax, assessment, and CDD liens have been addressed in the case of default, the priority sequence for processing the remaining liens on the property is determined by the:

relative timing of the establishment of the lien.

Given the following information, calculate the effective tax rate expressed in mills: Market value of property: $280,000 Assessed value of property: 50 % of the market value Exemptions: $2,000 Annual tax liability: $4,685.10 =1.69 mills -3.35 mills -16.73 mills -33.95 mills

effective tax rate = tax liability / MV or sale price = 4685.10/280000 = 0.0167325 = 16.73mills

Covenant in a general warrantee deed include: Multiple select question. - Covenant of no fraud - Covenant of quiet enjoyment - Covenant of seizin - Covenant against encumbrances - Covenant of good quality

- Covenant of quiet enjoyment - Covenant of seizin - Covenant against encumbrances

Liens that have priority strictly according to time of creation

- Mechanics' liens - Mortgage liens

Which of these are required elements of a deed? Multiple select question: - Signature of the grantee - Signature of the grantor - Words of conveyance - Acknowledgment - Correct format

- Signature of the grantor - Words of conveyance - Acknowledgment

Restrictive covenant for a subdivision can be enforced by

- any renter in the subdivision - andy lender whose loan is secured by a parcel in the subdivision - any owner of a parcel in the subdivision

Covenants in a deed are important because they Multiple select question. - ensures that the property is encumbered liens and easement. - bind the grantor to legal promises about title. - assure that the grantee will receive title. - enable the grantee to sue for damages for misrepresentations about title.

- bind the grantor to legal promises about title. - enable the grantee to sue for damages for misrepresentations about title.

the term "real estate" - can be used to describe the bundle of rights associated with ownership of the physical assets - should not be used to describe the business activities related to the physical assets - can be used to identify land and buildings

- can be used to describe the bundle of rights associated with ownership of the physical assets - can be used to identify land and buildings

A quitclaim deed commonly would be used for Multiple select question. - conveying property to a lender as security for a loan. - conveying a marketable title. - adding a spouse to a property title. - clearing a conflicting claim to title.

- clearing a conflicting claim to title. - adding a spouse to a property title.

Three types of conventional land use controls are

-building codes -subdivision regulations -zoning

Which of these land uses can be (and commonly is) based on an easement in gross?

Railroad, Irrigation ditch, Power line

The nature and specific characteristics of a condominium are defined in

the condominium declaration. the by-laws.

Which of these is a natural monopoly?

Sewer lines

An example of an easement appurtenant would be

The right of one parcel to restrict building height on an adjacent parcel.

zoning has been called a poor solution to land bc

-forces -restricts

Features of the "revolution in land use controls" included a shift -from the view that land is private property to the notion that it belongs strictly to the community -from a perception of unlimited space and environment to a concept of "spaceship earth" -from rural land use controls to urban land use controls -from little interest in land use controls to broadly requiring land use controls

-from a perception of unlimited space and environment to a concept of "spaceship earth" -from little interest in land use controls to broadly requiring land use controls

features of the "revolution in land use controls" included a shift

-from little interest in land use controls to broadly requiring land use controls -from a perception of unlimited space and environment to a concept

Entities of indirect ownership by multiple owners include the -general partnership -limited partnership -corporation -tenancy by the entirety -tenancy in common

-general partnership -limited partnership -corporation

A distinctive feature of realestate is the complexity of property and transactions

True

All of these

Which of the following is a titled estate?

easement by presciption

adverse possession

acre

an important measure of land area (containing 43,560 square feet)

The legal procedure through which eminent domain is exercised is called

condemnation

Conveys only life estates

dower/curtesy

in condemnation, the amount of compensation that restore the property owner

just

Zoning is an exercise of which type of general limitation on property rights?

police power

Real estate, Excluding primary residence account for approximately ____Percent of the world's total at the economic wealth

25%

real estate, excluding primary residences, accounts for approximately _____ percent of the world's total economic wealth

25%

d. the theory that residential and commercial uses should be integrated, streets and parking should discourage through traffic, and neighborhoods should be pedestrian oriented

"New urbanism" is a term used to describe: a. growth management laws enacted by state governments b. improvement of transportation systems to encourage dispersion of a city's population c. the requirement that infrastructure can be available concurrently with new development d. the theory that residential and commercial uses should be integrated, streets and parking should discourage through traffic, and neighborhoods should be pedestrian oriented e. the trend for the construction of self-sufficient "new towns"

If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as:

"Raw" Land

If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as:

"raw" or undeveloped land

Develop land represents about____ Percent of total land in the continental US

61

Zoning is an exercise of which type of general limitation on property rights?

Police Power

Zoning is an exercise of which type of general limitation on property rights?

Police power

The power of state and local governments in the United States to regulate in the interest of the health, safety and welfare of citizens in general is known as:

Police powers

Characteristics that stock and bonds investment share with real estate investments include

Potential appreciation in the value of the investment Transferability to other owners Potential periodic income

Which of the conveyances of a real property interest listed below probably would be detected only by actual notice?

Prescriptive easement & easement by estoppel

Which of the conveyances of a real property interest listed below probably would be detected only by actual notice?

Prescriptive easement, easement by estoppel

the _____ Of real estate markets contribute to segmentation

Price differences, Localized nature,immobility

Local government

Primarily through land use controls and property tax policy, which of the following branches of government has the largest influence on real estate values?

Which of these types of property generally is exempt from property taxation?

Private school

Which of these types of property generally is exempt from property taxation? -Unprofitable hotel -Office leased to local government -Office building leased to a church -Private school

Private school

Which of these liens always have the same, equal, senior priority?

Property tax lien, CDD lien, Assessment lien

Rank the priority of these liens on a property from first to last

Property tax lien, mortgage lien created at purchase of the property, second mortgage lien created at purchase of the property, judgment lien arisihing a year after purchase of the property.

e. both local governments & school districts

Property taxes are a main source of revenue for: a. the federal government b. school districts c. local governments d. state governments e. both local governments & school districts

Concerning whether property taxes are regressive (higher as a percent of income as income is lower), true statements are

Property taxes paid can be regressive, considering both taxes paid and benefits received, property taxes probably are not regressive, benefits funded by property taxes likely favor lower income household and are the opposite of regressive

Concerning whether property taxes are regressive (higher as a percent of income as income is lower), true statements are:

Property taxes paid can be regressive. Considering both taxes paid and benefits received, property taxes probably are not regressive. Benefits funded by property taxes likely favor lower income households and are the opposite of regressive.

A better location can also be defined as Better

Access

Ability to demolish and replace a structure on your land

Right of disposition

Ability to demolish and replace a structure on your land is an example of which dimension of property rights

Right of disposition

Freedom to sell your property when and for how much you choose

Right of disposition

Freedom to lock your car

Right of exclusive possession

Freedom to lock your car is an example of which dimension of property rights

Right of exclusive possession

Ability to grow and sell crops on your land

Right of use and enjoyment

Freedom to decorate your house as you choose

Right of use and enjoyment

If you own a condominium where there is a restriction on the color or character of window treatments (drapes or blinds) what aspect of property rights is being curtailed?

Right of use and enjoyment

If you own a condominium where there is a restriction on the color or character of window treatments (drapes or blinds) what aspect of property rights is being curtailed? -Right of disposition -Right of exclusive possession -Right of use and enjoyment

Right of use and enjoyment

all of the environmental laws enacted by the us

EPA

developers normally regard the site plan review process as a friendly and predictable procedure

false

East parcel of real estate has its own LVS, Which stands for

Location value signature

The authority for approving site plans for large projects ultimately rests with the:

Elected governing commission or council

Tenancy in common

The default form of co-tenancy, virtually like individual ownership

Which of the following is an example of an affirmative easement appurtenant?

a driveway easement across one parcel to another

Three forms of conventional land use controls are

building codes, zoning, and subdivision regulations

An example of a real estate asset that trades in the public equity market is:

equity REIT

Failure to pay property taxes ultimately can lead to ____ and sale of the property at public auction.

foreclosure

Curtesy

Gives a surviving husband a one-third life estate in the real property ever held by a decedent wife during the marriage.

Elective share

Gives a surviving spouse some automatic ownership of both real and personal property held by a spouse at the time of death.

main attraction

seperation

The distinctive feature of a joint tenancy is the right of

survivorship

at the death of a property owner, the property will convey in one of two modes

testate- in accordance with a will intestate-without a will

Dower

Gives a widow an automatic one-third life estate in real property ever owned by a decedent husband during the marriage.

Curtesy

Gives surviving husband automatic 1/3 of life estate owned by deceased wife in marriage

patent

voluntary conveyance of public property by a government to a private citizen

For a deed, identify the requirements of a grantee

Clearly identifiable

Which of these terms best characterizes the meaning of personal rights?

Freedom

Which clause in a deed defines or limits the interest being conveyed?

Habendum

Which of these is an estate?

Remainder interest

General warrantee deed

The "highest quality" form of deed

positive externality

effect on a neighborhood from good lawn maintenance

Failure to pay property taxes ultimately can lead to foreclosure

foreclosure

toxic substances

leaking underground storage leaks -mold -asbestos -radon

intangible assets

nonphysical assets such as patents and copyrights

Elements of traditional zoning include all except:

performance standards

Condemnation

By the power of eminent domain, government can take private property for public purpose through due process, and with just compensation.

common examples of partial exemptions for property taxes include exemptions for

widows. historic property. disabled persons. veterans.

The type of deed offered by the grantor is communicated through a phrase such as "does herby grant, bargain, sell and convey unto . . ." This clause is referred to as the:

words of conveyance

The type of deed offered by the grantor is communicated through a phrase such as "does herby grant, bargain, sell and convey unto . . ." This clause is referred to as the: A. recital of consideration B. words of conveyance C. covenant D. habendum clause

words of conveyance

Required conditions for successful acquisition of a prescriptive easement include that use must be Multiple select question. - "open and notorious." - advertised in a local newspaper. - hostile to the owner's interests. - continuous.

"open and notorious.", hostile to the owner's interests. continuous.

If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as

"raw" or undeveloped land.

Characteristics of a periodic tenancy

- continues until either landlord or tenant gives proper notice of termination - time required for notice of termination is governed by state law - it can be an oral agreement

The quitclaim deed Multiple select question. - conveys whatever interest the grantor holds. - is mainly a quick way of conveying title. - Includes no promises about the interest that the grantor holds.. - can convey the same property interest as a general warranty deed.

- conveys whatever interest the grantor holds. - Includes no promises about the interest that the grantor holds.. - can convey the same property interest as a general warranty deed.

The quitclaim deed Multiple select question. - is mainly a quick way of conveying title. - conveys whatever interest the grantor holds. - Includes no promises about the interest that the grantor holds.. - can convey the same property interest as a general warranty deed.

- conveys whatever interest the grantor holds. - Includes no promises about the interest that the grantor holds.. - can convey the same property interest as a general warranty deed.

Easements where no deed is involved include: Multiple select question. - easement by estoppel. - easement by prior use. - easement of necessity. - highway right-of-way easement

- easement by estoppel. - easement by prior use. - easement of necessity.

Easements where no deed is involved include: Multiple select question. - highway right-of-way easement - easement by prior use. - easement by estoppel. - easement of necessity.

- easement by prior use. - easement by estoppel. - easement of necessity.

Marketable title laws Multiple select question. - generally restrict required title search to the years following root of title. - can cause restrictions or easements in deeds from before the root of title to disappear. - Reduce the importance of actual notice. - are being eliminated by states because they add risk to title search - define a "root of title," as the last conveyance of the property that is at least a certain number of years old.

- generally restrict required title search to the years following root of title. - can cause restrictions or easements in deeds from before the root of title to disappear. - define a "root of title," as the last conveyance of the property that is at least a certain number of years old.

A fee simple absolute differs from a tenancy for years in that it

- is indefinite in length - is an ownership interest - has the right of disposition

Characteristics of an easement in gross include that

- only servient (diminished) parcels are involved - easement can be conveyed separately from any parcel affected - a single easement can affect many parcels

form-based- zoning

-is the most recent alternative to conventional zoning -replaces zoning by land use with zoning by development configuration

The planning or zoning commission is appointed as an advisory board by the

-elected governing body

Radon gas is:

A naturally occurring result of geologic activity.

Develop land represents about___percent of the total land in the continental us

6

All of the following are considered indirect forms of co-ownership of real estate assets EXCEPT:

Condominium

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Covenant of seizin

a promise that the grantor truly has good title and the right to convey it

Failure to pay property taxes ultimately can lead to _____ and sale of the property at public auction.

foreclosure

main economic problem

it arbitrarily

All of the following are examples of an improvement on the land EXCEPT:

streets

To find the property tax amount for a property multiply the taxable value by the total

tax rate

When land use controls impose exceptional hardship and loss of value, a relief mechanism must be provided. This relief is referred to as a:

variance

common examples of partial exemptions

veterans historic property disabled persons widows

Reasons that the conveyance of real estate is uniquely complicated include that: - real estate rights are long enduring - real estate interests are complex - real estate is very valuable - real estate is highly regulated - real estate must be described on a continuous surface

- real estate rights are long enduring - real estate interests are complex - real estate must be described on a continuous surface

Characteristics of restrictive covenant include that

- they are enforced through court injunction - enforceable only by those holding an interest in the affected property - crated at the conveyance of a parcel of land - can impose any restriction that does not violate public policy

"investment-grade" properties are typically - valued at more than $10 million - purchased by institutional investors - occupied by their owners rather than other users - leased to immobile investors

- valued at more than $10 million - purchased by institutional investors

For which of these legal threats would an owner be covered through title insurance, but generally not through an abstract with attorney's opinion? -A failed legal challenge to title -Local government lowering the maximum residential density on the land -A successful lawsuit claiming title -A fraudulent deed

-A failed legal challenge to title -A successful lawsuit claiming title -A fraudulent deed

Which of these items most likely is(are) personal property? -An oriental rug -A very large television -Hurricane shutters -Patio furniture -A wall-to-wall carpet, installed.

-An oriental rug -A very large television -Patio furniture

Which of these are elements of "land," as used in real property? -Below the surface as far as technology can reach -Above the earth as high as building technology and air traffic space permits -Minerals as far as technology can reach in all directions, even beyond parcel boundaries. -The surface of the earth

-Below the surface as far as technology can reach -Above the earth as high as building technology and air traffic space permits -The surface of the earth

Which of these liens always have the same, equal, senior priority? -CDD lien -Mortgage lien -Assessment lien -Judgment lien -Property tax lien

-CDD lien -Assessment lien -Property tax lien

Which of these property interests are likely to include an implied easement of access? -Coal rights -Oil rights -Right to erect a power line -Right to a view -Timber rights

-Coal rights -Oil rights -Right to erect a power line -Timber rights

Which of the following are true statements in comparing a condominium to a cooperative -Condominiums impose fewer restrictions on owners -Condominiums are useful in fewer situations -Condominiums more concentrated in larger, older cities -Condominiums are more recent in the US

-Condominiums impose fewer restrictions on owners -Condominiums are more recent in the US

Concerning whether property taxes are regressive (higher as a percent of income as income is lower), true statements are: -Homestead exemptions that exempt a fixed amount of otherwise taxable value make property taxes more regressive. -Considering both taxes paid and benefits received, property taxes probably are not regressive. -Property taxes paid can be regressive. -Benefits funded by property taxes likely favor lower income households and are the opposite of regressive.

-Considering both taxes paid and benefits received, property taxes probably are not regressive. -Property taxes paid can be regressive. -Benefits funded by property taxes likely favor lower income households and are the opposite of regressive.

Covenant in a general warrantee deed include: -Covenant of good quality -Covenant of no fraud -Covenant of seizin -Covenant of quiet enjoyment -Covenant against encumbrances

-Covenant of seizin -Covenant of quiet enjoyment -Covenant against encumbrances

Which of the conveyances of a real property interest listed below probably would be detected only by actual notice? -Marital ownership claim by a former spouse of the owner -Easement by estoppel -Mortgage -Prescriptive easement

-Easement by estoppel -Prescriptive easement

Timeshare programs can involve which of the following claims or interests?

-Fee simple ownership -Leasehold interest -License

Which two of these personal rights sometimes conflicts with property rights in a shopping mall? -No unreasonable search or seizure -Freedom of expression -Protection of life, liberty and property -Freedom of assembly -No taking of property without just compensation

-Freedom of expression -Freedom of assembly

Which clause in a deed defines or limits the interest being conveyed? A. Words of conveyance B. Delivery C. Exceptions and reservations D. Habendum

-Habendum

Which of these terms is more characteristic of a periodic tenancy than a tenancy for years? -High risk of misunderstanding -Commonly used for large commercial leases -Must be in writing to be enforceable -Informal

-High risk of misunderstanding -Informal

An example of incomplete construction information potentially contributing to market failure is -Inability to examine plumbing under a concrete slab -Inability to examine roof nails for wind resistance once a roof is complete -toxicity of some chemicals commonly applied to lawns -the tendency of sidewalks and driveways to crack

-Inability to examine plumbing under a concrete slab -Inability to examine roof nails for wind resistance once a roof is complete

The quitclaim deed -is mainly a quick way of conveying title. -Includes no promises about the interest that the grantor holds.. -conveys whatever interest the grantor holds. -can convey the same property interest as a general warranty deed.

-Includes no promises about the interest that the grantor holds.. -conveys whatever interest the grantor holds. -can convey the same property interest as a general warranty deed.

Which of these are among the rules used by courts to determine fixtures? -Tenure of the article (length of time installed) -Value of the article -Intention of the parties -Manner of attachment -Character of the article and manner of adaptation -Relation of the parties

-Intention of the parties -Manner of attachment -Character of the article and manner of adaptation -Relation of the parties

Ownership by tenancy in common, compared to a corporation, -Is real property rather than personal property. -often arises as a default form of co-ownership. -is an artificial "person" under US constitutional law

-Is real property rather than personal property. -often arises as a default form of co-ownership.

Characteristics of a tenancy for years include which of these? -It can be virtually any length, up to many decades. -Either party can terminate with a notice of one year. -It is limited to single tenant properties. -It must be conveyed in writing (to be enforceable) if longer than a year.

-It can be virtually any length, up to many decades. -It must be conveyed in writing (to be enforceable) if longer than a year.

Some challenges to the expansion of land use planning include: -It favors housing too much -It challenges traditional U.S. notions of democracy -It requires a large and expensive staff -There are conflicting ideas of best practice

-It challenges traditional U.S. notions of democracy -There are conflicting ideas of best practice

Characteristics of an easement appurtenant include that -the easement appurtenant generally is limited to 30 years. -It involves two adjacent parcels of land. -one parcel receives a benefit at the expense of another other. -an easement appurtenant "runs with the land."

-It involves two adjacent parcels of land. -one parcel receives a benefit at the expense of another other. -an easement appurtenant "runs with the land."

The dominant rules in identifying fixtures are "intention of the parties" and "relation of the parties." Which statement(s) exemplify one of these rules? -Removal of a counter-top kitchen stove "damages" the kitchen. Therefore, it is a fixture. -Items installed by a tenant are personal property of the tenant until they are abandoned. -Storm windows custom fitted to a house are not usable elsewhere. Therefore they are fixtures. -Furnishings created in a store for a retail tenant belong to the tenant until they are abandoned.

-Items installed by a tenant are personal property of the tenant until they are abandoned. -Furnishings created in a store for a retail tenant belong to the tenant until they are abandoned.

Which of these tenancies has "right of survivorship," such that the death of one co-owner results in the decedent's ownership interest being passed to the surviving owner(s)? -Joint tenancy -Tenancy by the entirety -Condominium -Tenancy in common

-Joint tenancy -Tenancy by the entirety

Which of these items is(are) real property? -Sofas and beds in a home -Land -An oval area rug -A kitchen stove in a home -Minerals yet to be extracted -Air space just above the ground

-Land -Minerals yet to be extracted -Air space just above the ground

For a deed, identify the requirements of the grantor. -Citizen of the property country -Legally competent -Of legal majority age -Signature required

-Legally competent -Of legal majority age -Signature required

Real estate markets differ from other asset classes by having which of the following characteristics?

-Local market -High transaction costs -Segmented market

Which of these events can affect the chain of title for real estate? -Marriages -Deeds -five-year lease -Foreclosures -Estate settlements

-Marriages -Deeds -Foreclosures -Estate settlements

Which of these liens has priority strictly according to time of creation? -Mechanics' liens -CDD lien -assessment lien -Mortgage liens

-Mechanics' liens -Mortgage liens

Which statements are correct concerning the impact of fixtures on real estate transactions? -Misunderstandings about potential fixtures can be costly, time consuming and disruptive. -The potential for fixtures arises in most real estate transactions. -In misunderstandings about potential fixtures, the buyer is always considered correct. -Fixtures automatically convey as part of real property unless explicitly excepted.

-Misunderstandings about potential fixtures can be costly, time consuming and disruptive. -The potential for fixtures arises in most real estate transactions.

From what two sources do personal rights in the United States most directly derive? -Other amendments to the U.S. Constitution. -The Magna Carta -The Bill of Rights to the U.S. Constitution -The Old Testament of the Bible -The code of Hammurabi

-Other amendments to the U.S. Constitution. -The Bill of Rights to the U.S. Constitution

Which of these items is (are) likely to be a fixture? -Drapes purchased and installed by a renter -Pews that are custom designed for a house of worship -A refrigerator in a single-family home -Standard wall-to-wall carpeting

-Pews that are custom designed for a house of worship -Standard wall-to-wall carpeting

Which two of these best demonstrate personal rights rather than property rights? -Right to drill for oil on your property. -Right to remove trees from your property. -Right to rent out your home. -Right to post election campaign signs on your lawn. -Right to invite a group into your home. -Right to give away your car.

-Right to post election campaign signs on your lawn. -Right to invite a group into your home.

Property taxes are a main source of revenue for:

-School districts -Local governments

Which of these are required elements of a deed? -Correct format -Signature of the grantor -Words of conveyance -Acknowledgment -Signature of the grantee

-Signature of the grantor -Words of conveyance -Acknowledgment

Restrictive covenants for a subdivision usually can be enforced by:

-Subdivision residents -Lenders with mortgage loans in the subdivision

Under the Statute of Frauds which of these must be in writing to be enforceable? -Ten-year lease -Mortgage -Monthly rental agreement -Property management contract

-Ten-year lease -Mortgage

Which of the following contribute to the complexity of real estate transactions? -The high price of real estate -The contiguous nature of all real estate parcels -The complex bundle of rights associated with real estate ownership

-The contiguous nature of all real estate parcels -The complex bundle of rights associated with real estate ownership

Which of these statements is (are) true regarding fixtures? -The problem of fixtures arises infrequently, but can be important. -The problem of fixtures is limited to properties with new buildings. -The dominant rule for determining what is a fixture is called "intention of the parties." -Altogether, there are 4 traditional rules for determining whether something is a fixture. -Fixtures are personal property that has become real property.

-The dominant rule for determining what is a fixture is called "intention of the parties." -Altogether, there are 4 traditional rules for determining whether something is a fixture. -Fixtures are personal property that has become real property.

Which are true representations of the history of Time-share in the United States? -The industry is now dominated by some of the largest hospitality companies -Important improvements in the industry came, in part, from stronger regulation -The industry started in the US and then spread to Europe and elsewhere -The industry in the US dates back to the 1920s -Its early US history was one of misrepresentation and failure to perform

-The industry is now dominated by some of the largest hospitality companies -Important improvements in the industry came, in part, from stronger regulation -Its early US history was one of misrepresentation and failure to perform

Characteristics of a periodic tenancy include which of these? -The time required for notice of termination is governed by state law. -The rental payment period can be any length, including over one year. -it can be by an oral agreement. -It continue until either landlord or tenant gives proper notice of termination. -It is mainly used for multi tenant properties.

-The time required for notice of termination is governed by state law. -it can be by an oral agreement. -It continue until either landlord or tenant gives proper notice of termination.

True statements about special assessments include: -They are used to fund public improvements affecting a limited set of properties. -The assessments often are proportional to front footage of the lots involved. -The use of assessments has declined in popularity relative to property taxes. -Common applications are for sidewalks, street improvements, sewer extensions, etc.

-They are used to fund public improvements affecting a limited set of properties. -The assessments often are proportional to front footage of the lots involved. -Common applications are for sidewalks, street improvements, sewer extensions, etc.

Ways that restrictive covenants can demise (end) include: -Time limit by state law -Changing public policy -Suit by property owner against former owner -Appeal by property owner to local government -Neglected enforcement -Change of neighborhood character

-Time limit by state law -Changing public policy -Neglected enforcement -Change of neighborhood character

In a single family home transaction, which three of these articles are most likely to be a fixture? -Free-standing bird bath -Refrigerator -Vinyl floor covering -Custom drapes -Attached basketball goal

-Vinyl floor covering -Custom drapes -Attached basketball goal

Which of these are natural monopolies? -Water company -Walmart -Electrical utility -Wells Fargo

-Water company -Electrical utility

Questions that arise in clarifying rights to water include -Who most needs to have access to the water? -Who has the right to use groundwater? -Who has the right to use the surface of a body of water? -Who has the right to use the water itself? -Who controls use of land under a body of water? -Who owns the land under a body of water?

-Who has the right to use groundwater? -Who has the right to use the surface of a body of water? -Who has the right to use the water itself? -Who controls use of land under a body of water? -Who owns the land under a body of water?

Characteristics of indirect co-ownership include that -co-owners hold the business entity shares as real property. -a business entity is the actual owner of the property. -co-owners hold shares in the business entity that actually owns the property.

-a business entity is the actual owner of the property. -co-owners hold shares in the business entity that actually owns the property.

For real property the best definition of title is

-a collection of documents and other evidence pointing to some persons or entity as holding the fee, or titled, interest

An important distinction both practically and conceptually is the difference between an easement and a license. Which of the following characteristics pertain to a license?

-a license is revocable by the grantor. -a license can be granted orally. -a license grants permission to use another's land for a specific and limited purpose.

Components that typically are in a community comprehensive plan include -a map of various land uses within the community -allocation of land to various uses -plans for schools and other public facilities -sources of revenue to fund the plan

-a map of various land uses within the community -allocation of land to various uses -plans for schools and other public facilities

Ways in which restrictive covenants are created include -a declaration placed in public records at any time by a property owner. -a declaration placed in public records by local government. -a restrictive clause placed in a deed conveying a single property. -a declaration of covenants placed in public records when a new subdivision is created.

-a restrictive clause placed in a deed conveying a single property. -a declaration of covenants placed in public records when a new subdivision is created.

Which of these arrangements could be either an easement or a license? -ability to hunt on a parcel of land. -ability to restrict building on a parcel of land for 100 years. -ability to drive on a parcel of land. -ability to harvest trees on a parcel of land.

-ability to hunt on a parcel of land. -ability to drive on a parcel of land. -ability to harvest trees on a parcel of land.

To establish title for real property the most important considerations are -actual notice. -only recorded deeds to the property. -property tax records of the property. -all recorded evidence.

-actual notice. -all recorded evidence.

A quitclaim deed commonly would be used for -adding a spouse to a property title. -clearing a conflicting claim to title. -conveying a marketable title. -conveying property to a lender as security for a loan.

-adding a spouse to a property title. -clearing a conflicting claim to title.

Characteristics of building codes include

-address safety health and sanitation -generally are regional rather than strictly local -continue to change with changing technology

Two conveyances of real property that likely would be revealed only by actual notice are -adverse possession. -an implied easement of access. -an easement in gross related to oil rights. -conveyance through probate.

-adverse possession. -an implied easement of access.

important process for any investor

-air samples -water samples -property history -property surface

to establish title for real property the most important considerations are

-all recorded evidence & actual notice

Differences between an easement and a license include that -an easement survives sale of the property involved while license does not. -an easement is for a definite period of time while license is not. -an easement survives death of the grantor while license does not. -an easement can involve multiple parcels while a license cannot. -an easement is a right while a license is permission.

-an easement survives sale of the property involved while license does not. -an easement survives death of the grantor while license does not. -an easement is a right while a license is permission.

Land descriptions are a special concern with real property, as compared to personal property because: -There is little agreement on what land descriptions are acceptable. -any error harms at least one owner or another. -because land is a continuous surface, descriptions must define boundaries. -land descriptions must endure longer than descriptions for personal property. -land can be extremely costly, and errors in description can be very costly.

-any error harms at least one owner or another. -because land is a continuous surface, descriptions must define boundaries. -land descriptions must endure longer than descriptions for personal property. -land can be extremely costly, and errors in description can be very costly.

The description of land by subdivision plat lot and block number

-is the simplest form of description for most property owners to interpret

Restrictive covenant for a subdivision can be enforced by -any lender whose loan is secured by a parcel in the subdivision. -any owner of property adjacent to the subdivision. -any renter in the subdivision. -any law enforcement office having jurisdiction over the subdivision. -any owner of a parcel in the subdivision.

-any lender whose loan is secured by a parcel in the subdivision. -any renter in the subdivision. -any owner of a parcel in the subdivision.

In true co-ownership of property, the owners -always have equal shares. -basically hold the same bundle of rights. -cannot meaningfully partition their ownership into separate bundles of rights. -hold their interests through an intervening ownership entity.

-basically hold the same bundle of rights. -cannot meaningfully partition their ownership into separate bundles of rights.

Covenants in a deed are important because they

-bind the grantor to legal promises about title, -enable the grantee to sue for damages for misrepresentations about title

Covenants in a deed are important because they -bind the grantor to legal promises about title. -assure that the grantee will receive title. -ensures that the property is encumbered liens and easement. -enable the grantee to sue for damages for misrepresentations about title.

-bind the grantor to legal promises about title. -enable the grantee to sue for damages for misrepresentations about title.

Covenants in a deed are important because they:

-bind the grantor to legal promises about title. -enable the grantee to sue for damages for misrepresentations about title.

Three types of traditional land use controls are: -building codes -zoning -performance standards -subdivision regulations -impact fees

-building codes -zoning -subdivision regulations

The term "real estate" -can be used to describe the bundle of rights associated with ownership of the physical assets -can be used to identify land and buildings -should not be used to describe the business activities related to the physical assets

-can be used to describe the bundle of rights associated with ownership of the physical assets -can be used to identify land and buildings

Marketable title laws -Reduce the importance of actual notice. -can cause restrictions or easements in deeds from before the root of title to disappear. -define a "root of title," as the last conveyance of the property that is at least a certain number of years old. -generally restrict required title search to the years following root of title. -are being eliminated by states because they add risk to title search

-can cause restrictions or easements in deeds from before the root of title to disappear. -define a "root of title," as the last conveyance of the property that is at least a certain number of years old. -generally restrict required title search to the years following root of title.

true statements about special assessments include

-common applications are for sidewalks, street improvements, sewer extensions -the assessments often are proportional to front footage of the lots involved -they are used to fund public improvements affecting a limited set of properties

capital market

Which of the following sectors serves to allocate financial resources among households and firms requiring funds

Every condominium buyer needs to know the details of which document(s):

-condominium declaration -bylaws

Characteristics of building codes include -continue to change with changing technology -generally are regional rather than strictly local -they specify materials but say nothing about design -address safety, health and sanitation -are less important in the coastal south of the US than elsewhere

-continue to change with changing technology -generally are regional rather than strictly local -address safety, health and sanitation

Required conditions for successful acquisition of property through adverse possession are that possession must be

-continuous -actual use -hostile to the owners interest -"open and notorious"

Required conditions for successful acquisition of property through adverse possession are that possession must be -continuous. -actual use. -hostile to the owner's interest. -"open and notorious." -with full knowledge of the owner.

-continuous. -actual use. -hostile to the owner's interest. -"open and notorious."

Required conditions for successful acquisition of a prescriptive easement include that use must be -continuous. -hostile to the owner's interests. -advertised in a local newspaper. -"open and notorious."

-continuous. -hostile to the owner's interests. -"open and notorious."

A cooperative differs from a condominium in that -cooperative owners have a leasehold rather than ownership of their unit. -a cooperative has no common facilities while condominium does. -cooperative owners own shares in a corporation rather than actual real property. -cooperative owners are liable for the obligations of all owners where condominium owners are not.

-cooperative owners have a leasehold rather than ownership of their unit. -cooperative owners own shares in a corporation rather than actual real property. -cooperative owners are liable for the obligations of all owners where condominium owners are not.

Aspects of subdivision regulations include requirements for -coordination of streets with surrounding subdivisions -the type of uses allowed in the subdivision -adequate provision of water and sewers -adequate quality of streets

-coordination of streets with surrounding subdivisions -adequate provision of water and sewers -adequate quality of streets

Counter-arguments to zoning as a solution to real estate market failure include that zoning -creates inefficiency by separating residential from commercial activities -is expensive for government to implement and administer -contributes to excessively low density of land use -creates boring landscapes

-creates inefficiency by separating residential from commercial activities -contributes to excessively low density of land use

counter arguments to zoning as a solution to real estate market failure include that zoning

-creates inefficiency by seperating residential from commercial activites -contributes to excessively low density of land use

Which of the following items would most likely be considered a fixture?

-custom built in bookshelves -antique chandelier

An example of conflicting notions of best practice in urban planning is -septic tanks vs community sewers -grid street patterns vs cul-de-sac streets -individual wells vs community water supply -uniform residential densities vs mixed residential densities

-grid street patterns vs cul-de-sac streets -uniform residential densities vs mixed residential densities

Power line easement

Which of these easements is most likely to be an easement in gross?

Characteristics of dower/curtesy include that -dower is the provision for a surviving wife and curtesy is the provision for a surviving husband. -it creates a life estate for the surviving spouse. -it includes all real estate ever owned by the decedent spouse during the marriage. -it includes personal property owned by the decedent spouse at the time of death.

-dower is the provision for a surviving wife and curtesy is the provision for a surviving husband. -it creates a life estate for the surviving spouse. -it includes all real estate ever owned by the decedent spouse during the marriage.

Forms of automatic marital co-ownership include -joint tenancy -dower/curtesy -elective share -community property

-dower/curtesy -elective share -community property

Accurate characteristics of land description by plat lot and block number include: -each lot and block is defined in detail (by metes and bounds) in a recorded map. -associates with the recorded map usually is a list of restrictive covenants. -the description map normally shows the location of multiple kinds of easements or public right-of-ways. -the description depends on a starting reference to a baseline and principal meridian. -any urban property can be described by this method.

-each lot and block is defined in detail (by metes and bounds) in a recorded map. -associates with the recorded map usually is a list of restrictive covenants. -the description map normally shows the location of multiple kinds of easements or public right-of-ways.

In contrast to ownership of property by a corporation, in tenancy in common -each owner can separately mortgage or sell their portion of the property. -all co-owners are mutually liable for any liens on the property. -co-ownership shares must be equal. -all ownership interests must be created in the same transaction. -every owner holds the same actual real property interest rather than shares in an owner entity.

-each owner can separately mortgage or sell their portion of the property. -all co-owners are mutually liable for any liens on the property. -every owner holds the same actual real property interest rather than shares in an owner entity.

Modes of real property conveyance of easements where no deed is involved include

-easement by estoppel -easement of necessity -easement by prior use

Nonposessory interests (i.e. bundles of real property rights that do not include possession) include which of the following?

-easements. -restrictive covenants. -liens.

Important methods for maintaining quality and fairness in administration of the property tax include -appeals by owners of high value properties -education programs offered by organizations of property tax officials. -Interventions by legislators prompted by real estate oriented supporters. -requirements for standard valuation procedures imposed by state oversight offices.

-education programs offered by organizations of property tax officials. -requirements for standard valuation procedures imposed by state oversight offices.

events that triggered

-environmental movement -the love canal disaster -publication of rachel carsons silent spring

A "bundle of rights" in property is some combination of -right of refusal -exclusive possession -right of acquisition -right of disposition -use and enjoyment

-exclusive possession -right of disposition -use and enjoyment

Which of the following is a titled estate?

-fee simple absolute -life estate -fee simple conditional

Types of property that commonly are exempt from property taxes include -hospitals -private entertainment facilities -other property of religious organizations -places of worship -schools and universities

-hospitals -other property of religious organizations -places of worship -schools and universities

Required conditions for successful acquisition of a prescriptive easement include that use must be -hostile to the owner's interests. -"open and notorious." -continuous. -advertised in a local newspaper.

-hostile to the owner's interests. -"open and notorious." -continuous.

Modern alternatives (generally adopted after 1970) to traditional land use controls include -condemnation -impact fees -planned unit development -performance standards -form-based zoning

-impact fees -planned unit development -performance standards -form-based zoning

The governing association of a condominium can do which of the following to its owners? -impose liens -Evict them and sell their unit -Set and enforce rules -levy assessments -Restrict who buys their unit

-impose liens -levy assessments -Restrict who buys their unit

Accurate statements about metes and bounds land descriptions include: -in the direction N 39 degrees 15 minutes W, N indicates to start by finding north. -it is the most common form of description for modern urban property. -each compass degree is divided into 60 minutes. -it is the newest form of land description. -in the direction N 39 degrees 15 minutes W, W refers to the direction of rotation from north

-in the direction N 39 degrees 15 minutes W, N indicates to start by finding north. -each compass degree is divided into 60 minutes. -in the direction N 39 degrees 15 minutes W, W refers to the direction of rotation from north

Examples of market failure due to incomplete information about construction quality include -inability to examine plumbing under a concrete slab floor -deteriorating paint -non-visible electrical systems once walls are closed in -gradual deterioration of roof shingles

-inability to examine plumbing under a concrete slab floor -non-visible electrical systems once walls are closed in

Examples of market failure due to incomplete information about construction quality include

-inability to examine plumbing under a concrete slab floor -non-visible electrical once walls are closed in

quitclaim deed

-includes no promises about the interest that the grantor holds -conveys whatever interest the grantor holds -can convey the same property interest as a general warranty deed

Proposed changes in a zoning ordinance must

-initially be presented to a planning or zoning commission -go before the elected officials for final judgement or ratification

Proposed changes in a zoning ordinance must -finally be submitted to community referendum -always be reviewed by a state level official -initially be presented to a planning or zoning commission -go before the elected officials for final judgment or ratification

-initially be presented to a planning or zoning commission -go before the elected officials for final judgment or ratification

Characteristics of a lien include that -in case of multiple liens on a property they share claims to the property in proportion to value of the obligations. -it can only be exercised if the related obligation is defaulted. -it pledges property as security for an obligation. -it can lead to sale of the pledged property at public auction.

-it can only be exercised if the related obligation is defaulted. -it pledges property as security for an obligation. -it can lead to sale of the pledged property at public auction.

public land use planning may have

-it has a relatively very short history and base of experience -the notions of best practice

Characteristics of time-share or interval ownership include that -it may amount to a condominium interest, a leasehold, or a license. -it commonly is divided into weekly units. -owners typically have a specific unit at a specific week of the year in a specific property. -it is mostly associated with resort properties.

-it may amount to a condominium interest, a leasehold, or a license. -it is mostly associated with resort properties. -it commonly is divided into weekly units.

true statements about the legality of zoning include

-it was upheld as a use of police power -it must provide for a range -it must be based on a comprehensive plan

True statements about the legality of zoning include -zoning classifications and other features must be uniform across localities within a given state -it must be at the county level where counties exist -it was upheld as a use of police power by the USSC in Euclid v. Ambler Realty, 1922 -It must be based on a comprehensive plan -it must provide for a range of housing types and income levels

-it was upheld as a use of police power by the USSC in Euclid v. Ambler Realty, 1922 -It must be based on a comprehensive plan -it must provide for a range of housing types and income levels

A type of land use that has often been viewed as a threat to destabilize a single family, owner oriented neighborhood is

-large numbers of student rental households in the neighborhood

Toxic substances that have posed problems to property owners in the last two decades include: -leaking underground storage tanks -water-based paint -mold -radon -asbestos

-leaking underground storage tanks -mold -radon -asbestos

for a deed, identify the requirements of the grantor

-legally competent -of legal country -signature required

Standard elements of zoning include

-map -setback requirements -land use classifications

Standard features of traditional zoning include

-minimum lot dimensions -provision for special use districts -bulk limits for buildings

Standard features of traditional zoning include -emission standards -minimum lot dimensions -provision for special use districts -noise standards -bulk limits for buildings

-minimum lot dimensions -provision for special use districts -bulk limits for buildings

A traditional zoning ordinance includes all of the following:

-minimum setback requirements. -minimum lot dimensions. -provisions for special use districts.

An important process for any investor in property that could possibly contain toxic substances is a Phase 1 Environmental Value Assessment. This procedure examines -property history -subsurface evidence through sample drilling -the property surface, itself -air samples -water samples

-property history -the property surface, itself -air samples -water samples

It is common for a developer of a residential subdivision to create restrictive covenants for the purpose of enhancing quality and value of the lots. Which statements are true about such restrictive covenants? they are enforceable by: -mortgage lenders for the lots -owners of property adjacent to the subdivision -renters in the subdivision -Local government officials -purchasers of the lots

-mortgage lenders for the lots -renters in the subdivision -purchasers of the lots

legality of zoning

-must be based on a comprehensive plan -it was upheld as a use of police power -it must provide for a range

Features of elective share include: -The surviving spouse receives a life estate in the decedent's real property -has been adopted in about 15 states -must be explicitly chosen with a certain time after death of the spouse -covers both real and personal property -commonly give the surviving spouse a 30% share

-must be explicitly chosen with a certain time after death of the spouse -covers both real and personal property -commonly give the surviving spouse a 30% share

in zoning a non-conforming use

-must have existed before the zoning was enacted -cannot change in use or structure -cannot be discontinued more than a limited time

In contrast to traditional landlord-tenant law, three points that modern residential landlord-tenant law addresses include -obligations for maintenance. -requirements for notice of termination. -requirement that many leases be in writing. -right of entry by the landlord. -handling of deposits.

-obligations for maintenance. -right of entry by the landlord. -handling of deposits.

Tangible assets include: -office furniture -cars -land -stock options

-office furniture -cars -land

Building codes -change only in response to changing technology -originally were prompted primarily by the threat of fire -began to be adopted by US communities around 1900 -were the earliest form of police power regulation of land use -were recognized as necessary in rural areas first

-originally were prompted primarily by the threat of fire -began to be adopted by US communities around 1900 -were the earliest form of police power regulation of land use

Modern alternatives (generally adopted after 1970) to traditional land use controls include

-performance standards -form-based zoning -planned unit development -impact fees

Components that typically are in a community comprehensive plan include

-plans for schools and other public facilities -a map of various uses within the community -allocation of land to various uses

The power of state and local governments in the United States to regulate in the interest of the health, safety and welfare of citizens in general in known as:

-police powers

The ______ of real estate markets contribute(s) to segmentation. -price differences -importance -localized nature -immobility

-price differences -localized nature -immobility

steps to creating a comprehensive plan typically include

-projecting population growth -projecting demand for public services -projecting demand for natural resources

"Investment-grade" properties are typically -purchased by institutional investors -occupied by their owners rather than other users -leased to immobile investors -valued at more than $10 million

-purchased by institutional investors -valued at more than $10 million

Reasons that the conveyance of real estate is uniquely complicated include that -real estate interests are complex -real estate must be described on a continuous surface -real estate rights are long enduring -real estate is very valuable -real estate is highly regulated

-real estate interests are complex -real estate must be described on a continuous surface -real estate rights are long enduring

The conveyance of real estate is uniquely complicated because

-real estate must be described on a continuous surface -real property interest are complex -real property interest have a long history

The investment grade property market is typically targeted by which of the following groups of investors?

-real estate private equity funds. -listed equity REITs. -pension funds

Reasons that the conveyance of real estate is uniquely complicated include that

-real estate rights are long enduring -real estate interests are complex -real estate must be described on a continuous surface

The conveyance of real estate is uniquely complicated because : Select more than 1: - real property interests are complex. - government regulation of real estate can change. - real estate records tend to disappear. - real property interests have a long history. - real estate must be described on a continuous surface.

-real property interests are complex. - real property interests have a long history. - real estate must be described on a continuous surface.

The conveyance of real estate is uniquely complicated because -real estate records tend to disappear. -real property interests have a long history. -government regulation of real estate can change. -real property interests are complex. -real estate must be described on a continuous surface.

-real property interests have a long history. -real property interests are complex. -real estate must be described on a continuous surface.

Participants in real estate "user" markets include -renters -owners -investors -lenders

-renters -owners

Form-based zoning -is only relevant to residential land use -is really just a minor change from conventional zoning -replaces zoning of land use with zoning of development configuration or character -is the most recent alternative to conventional zoning

-replaces zoning of land use with zoning of development configuration or character -is the most recent alternative to conventional zoning

Zoning has been called a poor solution to land use market failure because it -allows too much variation in structures and their uses -may be unconstitutional -restricts the supply of lower priced housing -forces supporting business services away from the neighborhoods they serve

-restricts the supply of lower priced housing -forces supporting business services away from the neighborhoods they serve

A site plan review board will -review site plans for apartments or other commercial or industrial sites -review proposed subdivisions -follow a rigorously formal, judicial-like procedure with each review -prohibit citizen input in the procedure -make recommendations to the elected officials

-review site plans for apartments or other commercial or industrial sites -review proposed subdivisions -make recommendations to the elected officials

types of property

-schools and universities -places of worship -hospitals -other property of religious organizations

Area elements of the government rectangular survey include: -sections are square miles explicitly surveyed and numbered within each township. -sections are numbered within their township starting in the northeast corner and zig-zagging along rows to the southeast corner. -townships, bounded by range lines and tier lines, are 6 miles by 6 miles square -townships are identified by range (north or south) from the baseline and tier (east or west) from the principal meridian.

-sections are square miles explicitly surveyed and numbered within each township. -sections are numbered within their township starting in the northeast corner and zig-zagging along rows to the southeast corner. -townships, bounded by range lines and tier lines, are 6 miles by 6 miles square

Intangible assets include: -stock investments -automobiles -leases -bond investments

-stock investments -leases -bond investments

Participants in capital markets include -stock investors -potential tenants in office properties -bond investors -mortgage investors

-stock investors -bond investors -mortgage investors

In real property definitions, estates include -tenancy for years. -rural estate. -periodic tenancy. -fee simple conditional. -life estate. -commercial estate. -fee simple absolute.

-tenancy for years. -periodic tenancy. -fee simple conditional. -life estate. -fee simple absolute.

Co-ownership can occur in a variety of ways, with significant variation in how the bundle of rights is jointly held. Which of the following entities are forms of direct co-ownership?

-tenancy in common. -tenancy by the entirety. -condominium.

Accurate characteristics of land description by plat lot and block number include:

-the description map normally shows the location of multiple kinds of easements or public right-of-ways -associates with the recorded map usually is a list of restrictive covenants -each lot and block is defined in detail (by metes and bounds) in a recorded map

Characteristics of an easement in gross include that -the easement in gross is limited strictly to business purposes. -the easement can be conveyed separately from any parcel affected. -only servient (diminished) parcels are involved. -a single easement can affect many parcels.

-the easement can be conveyed separately from any parcel affected. -only servient (diminished) parcels are involved. -a single easement can affect many parcels.

Events that triggered the "revolution in land use controls" included -the environmental movement -publication of Rachel Carson's Silent Spring -the Love Canal disaster -the truce that ended the Korean War

-the environmental movement -publication of Rachel Carson's Silent Spring -the Love Canal disaster

Public land use planning may have a weak foundation because -the notions of "best practice" are unsettled and changing -the need for urban planning has declined in the last half century -there are too few persons interested in and trained for urban planning -it has a relatively very short history and base of experience

-the notions of "best practice" are unsettled and changing -it has a relatively very short history and base of experience

Three conditions for a zoning variance are

-the variance must not change the character of the neighborhood -the condition must be unique to the particular lot -the owner must show true hardship

Three conditions for a zoning variance are -elected officials must concur with the variance -the variance must not change the character of the neighborhood -the owner must show true hardship -the condition must be unique to the particular lot -neighbors must concur with the variance

-the variance must not change the character of the neighborhood -the owner must show true hardship -the condition must be unique to the particular lot

The priority of liens is important because -there seldom is sufficient value at foreclosure to satisfy multiple liens. -a superior lien gets complete satisfaction before other liens. -in default, liens get satisfaction strictly by priority. -there typically is sufficient value to satisfy all liens, but delays harm lower lien holders.

-there seldom is sufficient value at foreclosure to satisfy multiple liens. -a superior lien gets complete satisfaction before other liens. -in default, liens get satisfaction strictly by priority.

A principal definition of real estate is as a bundle of rights associated with the possession, use, and disposition of property. Which of the following is a fundamental characteristic of property rights?

-they are enforceable by the government. -they are nonrevocable. -they are enduring

A principal definition of real estate is as a bundle of rights associated with the possession, use, and disposition of property. Which of the following is a fundamental characteristic of property rights?

-they are enforceable by the government. -they are nonrevocable. -they are enduring.

Requirements to create a joint tenancy are quite restrictive. They require the presence of the "four unities," and include which of the following?

-title -interest -possession

performance standards have been implemented

-traffic generation by a land use -storm runoff -air quality effects from a land use

performance standards have been implemented for a wide variety of externalities in land use, including -traffic generation by a land use -tax revenue effect of a land use -storm runoff -social impact of a land use -air quality effects from a land use

-traffic generation by a land use -storm runoff -air quality effects from a land use

Characteristics that stock and bond investment share with real estate investments include -transferability to other owners -potential appreciation in the value of the investment -immobility -potential periodic income

-transferability to other owners -potential appreciation in the value of the investment -potential periodic income

an example of conflicting notions

-uniform residential densities vs mixed -grid street patterns

common examples of partial exemptions for property taxes include exemptions for -veterans -historic property -apartments -disabled persons -widows

-veterans -historic property -disabled persons -widows

important process for any investor

-water samples -air samples -property history -the property itself

building codes

-were the earliest form of police regulation of land use -originally were prompted primarily by the threat of fire -began to be adopted by us communities around 1900

Issues that arise in determining rights to minerals, oil and gas include -whether the mineral rights are held by a corporation or by an individual. -whether oil and gas are treated as simply a form of minerals or as flowing substances. -whether ownership of minerals involves ownership of the space containing them.

-whether oil and gas are treated as simply a form of minerals or as flowing substances. -whether ownership of minerals involves ownership of the space containing them.

The south one-half of the southeast one-fourth of the northwest one fourth of the northwest one-fourth of a certain section would contain ___ acres

5 acres

Order of these steps from first to last in creating a chain of title

1- Locating all recorded documents relevant to the property 2- evaluating each relevant document for possible conveyance of title 3- reconstructing the sequence of fee holders down to the present owner 4- identifying any possible flaws in the sequence of ownership transmission

B. They apply only to tangible assets.

1. A principal definition of real estate is as a bundle of rights associated with the possession, use, and disposition of property. Each of the following is a fundamental characteristic of property rights EXCEPT: A. They are enforceable by the government. B. They apply only to tangible assets. C. They are nonrevocable. D. They are enduring.

Investible assets based on real estate are traded in each of the four capital market quadrants. List the four quadrants and at least one real estate asset that trades in each.

1. Private equity market - includes transactions of real property between individuals, firms and institutions 2. Private debt - includes the trading of home mortgages. 3. Public equity - investors trade real estate companies such as equity REITs 4. Public debt - Mortgage backed securities are traded

Priority of 4 liens on a property in order

1. Property tax lien 2. Mortgage lien created at purchase of property 3. Second mortgage lien created at purchase of property 4. Judgement lien arising a year after purchase of the property

Rank the priority of these liens on a property from first to last. -Property tax lien -Mortgage lien created at purchase of the property -Second mortgage lien created at purchase of the property -Judgment lien arising a year after purchase of the property

1. Property tax lien 2. Mortgage lien created at purchase of the property 3. Second mortgage lien created at purchase of the property 4. Judgment lien arising a year after purchase of the property

Rank the priority of these liens on a property from first to last.

1. Property tax lien 2. Mortgage lien created at purchase of the property 3. Second mortgage property created at purchase of the property 4. Judgement lien arising a year after purchase of the property

Identify four ways in which real estate markets differ from the market for publicly traded stocks.

1. Real estate is heterogenous product distinguished by its age, building design, and location. 2. Real estate is immobile and therefore location and its accessibility are important. 3. Real estate is a localized, segmented market due to local competition and the heterogeneous nature of the product. 4. Real estate transactions have high transfer costs, and deals are privately negotiated.

The order of steps from first to last in creating a chain of title are: -locating all recorded documents relevant to the property. -evaluating each relevant document for possible conveyance of title. -reconstructing the sequence of fee holders down to the present owner. -identifying any possible flaws in the sequence of ownership transmission.

1. locating all recorded documents relevant to the property. 2. evaluating each relevant document for possible conveyance of title. 3. reconstructing the sequence of fee holders down to the present owner. 4. identifying any possible flaws in the sequence of ownership transmission.

3 reasons the conveyance of real estate is uniquely complicated

1. real estate is a complex bundle of rights 2.land and rights to land are enduring, so transactions long ago affect the bundle of rights conveyable to a buyer today 3. methods of describing land must be very accurate since all land parcels adjoin other parcels (any error represents a loss to some owner)

While property tax rates can vary across geographic regions, ad valorem taxes are typically levied at rates between: -1.0 to 4.0 percent. -5.0 to 9.0 percent. -10.0 to 15.0 percent. -16.0 to 20.0 percent.

1.0 to 4.0 percent

While property tax rates can vary across geographic regions, ad valorem taxes are typically levied at rates between:

1.0 to 4.0 percent.

Community property exists in ___ states, while dower/curtesy exists in ____.

10, 15

Community property exists in __________ states, while dower/curtesy exists in ______. -15, 10 -10, 25 -25, 10 -10, 15

10, 15

A comprehensive plan usually deals with which of the following elements?

All the above

A. Affirmative easement appurtenant

10. An easement is the right to use land for a specific and limited purpose. Which of the following easements involves a relationship between two parcels of land, is a permanent feature of both parcels involved, and gives the dominant parcel some intrusive use of the servient parcel? A. Affirmative easement appurtenant B. Negative easement appurtenant C. Easement in gross D. License

a and b, but not c

10. Every condominium buyer needs to know the details of which document(s):

D. A scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view.

11. Which of the following is an example of a negative easement appurtenant? A. A driveway easement across one parcel to another. B. Rights-of-way for roads. C. A common drive easement where owners of adjoining lots must permit each other to use a driveway lying on their shaped property line. D. A scenic easement used to restrict construction on adjacent parcels so as to preserve a valued view.

C. A license is enduring.

12. An important distinction both practically and conceptually is the difference between an easement and a license. All of the following characteristics pertain to a license EXCEPT: A. A license is revocable by the grantor. B. A license can be granted orally. C. A license is enduring. D. A license grants permission to use another's land for a specific and limited purpose.

C. Lien arising from a court judgment unrelated to ownership of the property

13. A lien is an interest in real property that serves as security for an obligation. Which of the following is an example of a general lien? A. Property tax and assessment lien B. Mortgage lien C. Lien arising from a court judgment unrelated to ownership of the property D. Mechanics' lien

A. Property tax and assessment lien

14. Which of the following types of liens is automatically superior to any other lien? A. Property tax and assessment lien B. Mortgage lien C. Lien arising from a court judgment unrelated to ownership of the property D. Mechanics' lien

D. Partnership

15. Co-ownership can occur in a variety of ways, with significant variation in how the bundle of rights is jointly held. All of the following entities are forms of direct co-ownership EXCEPT: A. Tenancy in common B. Tenancy by the entirety C. Condominium D. Partnership

A. Tenancy in common

16. Direct co-ownership implies that each co-owner holds a titled interest in the property, but without exclusive possession with respect to the other co-owners. Which of the following types of direct co-ownership is considered the closest to the fee simple absolute estate? A. Tenancy in common B. Tenancy by the entirety C. Condominium D. Tenancy at Will

B. Tenancy by the entirety

17. Which of the following types of direct co-ownership is a form of joint tenancy for husband and wife created by marriage that protects each spouse from liens arising from either spouse alone? A. Tenancy in common B. Tenancy by the entirety C. Condominium D. Tenancy at Will

C. Condominium

18. Which of the following types of direct co-ownership combines single person ownership with tenancy in common? A. Cooperative B. Tenancy by the entirety C. Condominium D. Partnership

A. Cooperative

19. Which of the following forms of co-ownership, historically used for apartment buildings, is not considered a form of true direct co-ownership, but rather qualifies as a proprietary corporation? A. Cooperative B. Tenancy by the entirety C. Condominium D. Partnership

D. Commercial building

2. Property rights can be divided into two classes, real and personal. Which of the following is an example of real property? A. Vehicles B. Stocks and bonds C. Patents D. Commercial building

To determine a property's annual tax liability in dollars, it is useful to first convert the millage rate to an annual percentage. If the millage rate is 25 mills, determine the property tax rate in percentage form. -0.025% -0.25% -2.50% -25.00%

2.50

To determine a property's annual tax liability in dollars, it is useful to first convert the millage rate to an annual percentage. If the millage rate is 25 mills, determine the property tax rate in percentage form.

2.50%

Real Estate is the source of nearly _____ percent of local government property tax revenue.

20%

D. Community property

20. Property rights created from marriage have a clear implication for real estate transactions. Which of the following marital property rights gives a spouse a one-half claim on all property acquired "from the fruits of the marriage?" A. Dower B. Curtesy C. Elective share D. Community property

D. Restrictive covenants are public in nature and therefore can be enforced by those who do not hold a legal interest in the property.

21. Restrictive covenants impose constraints on the use of the land, yet are limited in terms of their enforcement. All of the following are true regarding the enforcement of restrictive covenants EXCEPT: A. Courts have been reluctant to maintain restrictive covenants for an unreasonably long time and in some cases states have enacted a time limit on their applicability. B. Courts may refuse to enforce restrictive covenants due to changing neighborhood character. C. Courts may refuse to enforce restrictive covenants due to abandonment of the property. D. Restrictive covenants are public in nature and therefore can be enforced by those who do not hold a legal interest in the property.

D. Timeshare

22. When multiple individuals have use of a property, but their interests are not simultaneous, this type of co-ownership is referred to as a: A. Cooperative B. Tenancy by the entirety C. Condominium D. Timeshare

B. Law of capture

23. In some states, mining companies are deemed to own not only the minerals but also the space the minerals occupied before they were removed, thereby earning the distinction of ownership states. However, when the owner of an oil or gas well is able to claim all that is pumped from it, regardless of whether the oil or gas migrated from adjacent property, this is referred to as a _____________ state. A. Manner of attachment B. Law of capture C. Intention of the parties D. Relation of the parties

C. Joint tenancy

24. Bill and Mike go in together to purchase 342 acres of land to use for hunting and family vacations. Ten years later, Bill dies and Bill's wife wants to sell his half of the land. Mike informs her that, unfortunately, she has no claim to the land and that upon Bill's death, his ownership interest transferred to Mike. What type of co-ownership did Bill and Mike have? A. Tenancy by the entireties B. Tenancy in common C. Joint tenancy D. Condominium

Real estate, excluding primary residences, accounts for approximately _____ percent of the world's total economic wealth.

25%

B. assessment lien.

25. The City of Grand Rapids installed a new water main on Oak Street. The city then decided to charge the property owners along Oak Street a proportional cost of the new water main. If a property owner refuses to pay their proportional share of the cost, the city may file a(n): A. property tax lien. B. assessment lien. C. general lien. D. mechanics' lien.

B. easement in gross.

26. Jeff owns 150 acres between a highway and a public beach. The state would like to build a road directly from the highway to the beach across a number of beach front properties including Jeff's. The space for this road would be considered a(n): A. implied easement B. easement in gross. C. negative easement appurtenant. D. positive easement appurtenant.

C. Periodic tenancy

27. Brian just began graduate school at the local university and is looking to rent an apartment. A family friend has decided to lease him a two bedroom, one bathroom cottage through an oral agreement with no definite lease period outlined. Which of the following leasehold estates best describes Brian's situation? A. Tenancy for years B. Tenancy at sufferance C. Periodic tenancy D. Tenancy by the entirety

B. restrictive covenant

28. Tom recently purchased a home in a residential subdivision. While mowing his lawn and planting new shrubs for the first time since moving in, Tom's neighbor came outside to inform him that he was violating one of the subdivision's rules which required the use of a specific professional lawn service for all property landscaping needs. Assuming this requirement can be enforced by the subdivision authority, this would be an example of a(n): A. easement B. restrictive covenant C. lien D. estate

A. Dominant parcel

29. When identifying an easement appurtenant, the parcel of land that benefits from the right to use the land in question is referred to as the: A. Dominant parcel B. Servient parcel C. Licensed parcel D. Gross parcel

C. Intention of the parties

3. A fixture is an object that formerly was personal property but has become real property. Of the following four rules for determining whether an object has become a fixture, which is the most dominant (i.e. if there is a conflict, which rule prevails)? A. Manner of the attachment B. Character of the article and manner of adaptation C. Intention of the parties D. Relation of the parties

C. Disposition

30. Real estate can be viewed as a bundle of rights. How these bundles of rights are grouped together determines the type of ownership interest an individual (or group of individuals) can stake claim to. In an ordinary life estate with remainder interests, which of the following rights is detached from the traditional bundle of rights that typically defines a fee simple absolute interest? A. Possession B. Use C. Disposition D. Enjoyment

A. Legal life estate with remainder interest

31. Many states have enacted laws that determine the flow of ownership rights of real property in the case of the owner's death. For example, in the state of Florida if a family residence is declared a homestead and the owner of the property passes away, the surviving spouse and children will have automatic interests in the property. This type of estate is more commonly referred to as: A. Legal life estate with remainder interest B. Ordinary life estate with remainder interest C. Fee simple conditional interest D. Periodic tenancy

Given the following information, compute the taxable value for the particular piece of property in dollar terms. Market value of property: $500,000, Assessed value of property: 85 % of the market value of the property, Exemptions: $50,000, Taxes paid: $8,250.

375,000

A. Custom (built-in) bookshelves

4. Based on your understanding of the rules for determining when an object becomes a fixture, which of the following items would most likely be considered a fixture at the time of sale? A. Custom (built-in) bookshelves B. Refrigerator in a single-family residence being sold C. Fence installed by the tenant of a rental property

Given the following information, compute the property tax rate for the community in percentage terms: Total budget expenditures: $108 million Total non-property tax income: $50 million Total assessed value of all properties: $2 billion Total exemptions: $550 million -2.5% -4.0% -10.0% -12.0%

4.0% = Tax rate = (budgeted expenditures - income from sources other than property tax) / (total assessed value of all properties - value of property exemptions) (108000000-50000000)/(2000000000-550000000) = 0.04 = 4.0%

The south one-half of the southeast one-fourth of the northwest one fourth of the northwest one-fourth of a certain section would contain _____ acres?

5

D. estates

5. Property rights can be dismantled into lesser bundles, referred to as interests, which can then be held by different individuals. Interests in real property that include possessions are referred to as: A. fixtures B. townships C. licenses D. estates

Elective share has been adopted in about _______ of states in the United States.

50 percent

Developed land represents about _____% of all land in the continental U.S -21 -2 -6 -19

6%

A. Fee simple absolute

6. Which of the following types of ownership estates is the most complete bundle of rights, and therefore carries the greatest value? A. Fee simple absolute B. Fee simple conditional C. Ordinary life estate D. Legal life estate

For a typical (average) household, equity in their home(s) is equal to about ___% of the value of their home(s) and about ____% of their net worth. -40, 15 -60, 15 -50, 25 -70, 20

60, 15

A square mile contains ________ acres, and each acre contains _______ square feet

640 & 43,560

A square mile contains _____ acres, and each acre contains _____ square feet.

640, 43,560

A square mile contains ____ acres, and each acre contains ___ square feet

640, 43560

C. ordinary life estate with remainder interest

7. Suppose an older homeowner lives adjacent to an expanding university that is interested in acquiring her residence for future university use. To allow the homeowner to continue to retain all rights of exclusive possession, use, and enjoyment during her lifetime, yet provide the university with the right of disposition, the university may want to purchase a(n): A legal life estate with remainder interest B. conditional fee absolute with reverter interest C. ordinary life estate with remainder interest D. tenancy for years

real estate is the source of nearly _____ percent of local government property tax revenue

70%

It is estimated that _____percent of US acreage is used non federal rural lane

71

it is estimated that _____ percent of U.S. acreage is used and nonfederal, rural land

71%

D. Leasehold estates are possessory interests

8. While leasehold interests are considered estates, they differ from freehold estates in all of the following respects EXCEPT: A. Leasehold estates are limited in time. B. The right of disposition is diminished with a leasehold estate. C. Leasehold estates are not titled interests. D. Leasehold estates are possessory interests

If a property's expected annual net income is $89,100 and its current market value is $1,060,000, the property's capitalization rate is

8.4%

If a property's expected annual net income is $89,100 and its current market value is $1,060,000, the property's capitalization rate is

8.4%.

Assessed value typically is ______ percent of market value, reflecting such factors as cost of selling a property.

85 - 90

Assessed value typically is _____ percent of market value, reflecting such factors as cost of selling a property

85-90

If a property's expected annual net income is $89,100 and its current market value is $1,060,000, the property's capitalization rate is:

89100 / 1060000 = 0.084 = 8.4%

A. leasehold interests

9. Nonposessory interests (i.e. bundles of real property rights that do not include possession) include all of the following EXCEPT: A. leasehold interests B. easements C. restrictive covenants D. liens

Characteristics of indirect co-ownership include that

A business entity is the actual owner of the property. Co-owners hold shares in the business entity that actually owns the property

b. all of the above

A comprehensive plan usually deals with which of the following elements? a. land uses b. population c. public services d. natural resources e. all of the above

Real estate markets tend to be highly segmented due to the heterogeneous nature of the products. Which of the following examples depicts this issue of market segmentation?

A couple searching for a single-family detached unit has limited their search to be in a specific price range between $350,000 and $400,000.

Easement of necessity

A created implied right of use that allows the owner of a landlocked parcel the right to use a path across another property for ingress and egress Trouble can arise with these implied easements when the servient parcel bearing the easement subsequently passes to a new owner. There will be no indication of the easement in public records, even though it must exist.

Quitclaim deed

A deed used mainly to clear up possible "clouds" or encumbrances to title (conflicting interests) is the:

Joint tenancy

A form of ownership in which multiple owners hold property with a right of survivorship. An ancient form of co-tenancy that enabled land holdings to remain intact.

An important distinction both practically and conceptually is the difference between an easement and a license. All of the following characteristics pertain to a license EXCEPT:

A license is enduring

What distinguishes real property from personal property?

A major determinant between real and personal property is whether or not the property is movable or permanently affixed to the land.

User Market

A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a:

Radon gas is:

A naturally occurring result of geologic activity

a. form based zoning

A new form of land use control that replaces zoning by land uses with separation of building/development types is: a. form based zoning b. PUD c. performance requirements d. impact fees e. urban planning

Some real estate industry persons have suggested that it is good to require a title Insurance commitment as evidence of title for rural property, but that it satisfactory to use the less costly abstract and attorney's opinion as evidence of title for a residence in an urban subdivision. Discuss the merits or risks of this policy.

A platted urban subdivision effectively has a relatively short history in which title could become "clouded." The creation of the subdivision, by implication, represents a point in time where there was very little question about the status of title. Thus, only what has happened to the property subsequently may put marketable title at risk. This greatly shortens the portion of the title history that may contain threats to title. Thus, title insurance may not be as valuable as with unplatted land.

Increase if current property values are greater than the cost of construction

A primary determinant of the feasibility of new construction is the relationship between the current level of property prices and the cost of new construction. We would expect the supply properties to

ways in which restrictive covenants are created include

A restrictive clause placed in a deed conveying a single property, a declaration of covenants placed in public records when a new subdivision is created.

Chain of title

A set of deeds and other documents that traces the conveyance of the fee, and any interests that could limit it, down from the earliest time to the current owner.

An example of a "holdout" monopolist is:

A small remaining percent of condominium owners demand higher prices from a developer who wants to tear down and rebuild the property

An example of a "holdout" monopolist is: -Walmart buys up a group of parcels by paying a generous premium above market prices -A water company owns all the water distribution lines in a city -A small remaining percent of condominium owners demand higher prices from a developer who wants to tear down and rebuild the property -A city refuses the request of owners for it to purchase a group of parcels affected by a new city land fill

A small remaining percent of condominium owners demand higher prices from a developer who wants to tear down and rebuild the property

For which of these legal threats would an owner be covered through title insurance, but generally not through an abstract with attorney's opinion? Multiple select question. - A successful lawsuit claiming title - A fraudulent deed - A failed legal challenge to title - Local government lowering the maximum residential density on the land

A successful lawsuit claiming title A fraudulent deed A failed legal challenge to title

Why might it be advisable to require a survey in purchasing a 20-year-old home in an urban subdivision?

A survey can be useful, even in a fairly recent subdivision, to affirm that fences are not encroaching, or that an addition to a structure does not violate a setback. In addition, it is generally good for a purchaser to know the boundaries of the acquired property because often fences and shrubs can create false impressions of boundary locations.

An example of market failure due to externalities is

A water bottling plant consumes so much well water that it lowers the water table on neighboring land

An example of market failure due to externalities is:

A water bottling plant consumes so much well water that it lowers the water table on neighboring land

An example of market failure due to externalities is: -A person considering a house in Florida wonders whether its roof is properly secured for hurricane winds, but isn't able to determine the answer -A landowner who has land needed for a city sewer line asks an outrageous price for it -An electric company having an existing system of distribution lines that prevents competitors raises its prices faster than its costs rise -A water bottling plant consumes so much well water that it lowers the water table on neighboring land

A water bottling plant consumes so much well water that it lowers the water table on neighboring land

Which is an example of a homogeneous product? A) a gallon of gasoline B) a tract home in a new development C) vacant office space D) a and c only E) all of the above

A) a gallon of gasoline Although a tract home or office space may be similar to alternative homes or space, they still possess unique characteristics, such as location.

The market for buying, selling, and leasing real estate tends to be localized and highly segmented primarily because A) real estate is immobile. B) financing costs are high. C) of the need for strong negotiation skills. D) space can be easily substituted. E) a and b only

A) real estate is immobile. The heterogeneity and immobility of real estate are the primary factors that make real estate markets localized and segmented. Locations are unique!

Right of use and enjoyment

Ability to grow and sell crops on your land. Freedom to decorate your house as you choose.

Which of these arrangements could be either an easement or a license?

Ability to harvest trees on a parcel of land, ability to drive on a parcel of land, ability to hunt on a parcel of land.

According to Exhibit 1-3 U.S. households own $16.1 trillion in housing assets. Assume this amount does not include rental real estate. On average, what percent of the value of the U.S. housing stock is financed with home mortgage debt?

About 61% of the U.S. housing stock is financed with home mortgage debt. ($9.8 trillion in mortgage debt divided by $16.1 trillion in housing value.

Which of the following is not important to the location of commercial properties? A. Access to customers B. Visibility C. Access to Schools D. Availability of Communications infrastructure

Access to schools

To establish title for real property the most important considerations are

Actual notice, all recorded evidence

Required conditions for successful acquisition of property through adverse possession are that possession must be

Actual use, continuous, hostile to the owner's interest, open and notorious, exclusive

A quitclaim deed commonly would be used for

Adding a spouse to a property title Clearing a conflicting claim to title

An owner of land may involuntarily and unknowingly give up the rights to land. When a fee simple interest is conveyed to a new owner without a deed and without the consent or knowledge of the original owner, this is said to be conveyed by: A. Prescription B. Adverse possession C. Accretion D. Reliction

Adverse possession

Two conveyances of real property that likely would be revealed only by actual notice are

Adverse possession, an implied easement of access.

An important process for any investor in property that could possibly contain toxic substances is a Phase 1 Environmental Assessment, This procedure examines

Air samples, water samples, property history, the property surface itself.

Which of these items are real property?

Air space just above the ground, mineral yet to be extracted, land.

A comprehensive plan usually deals with which of the following elements?

All of the Above

The actions of local, state, and federal governments affect real estate values A. Primarily through user markets B. Primarily through the capital markets C. Primarily through their taxation policies D. Through all of the above

All of the above

Traditional land use controls (pre- 1970) include:

All of the above

A comprehensive plan usually deals with which of the following elements?

All of the above; land uses, population, public services

Streets

All of the following are examples of an improvement on the land except?

Buildings

All of the following are examples of improvement to the land except

Traditional land use controls (pre-1970) include:

All of these; zoning, building costs, subdivision regulations

Which of these statements are true regarding fixtures?

Altogether, there are 4 traditional rules for determining whether something is a fixture. The dominant rule for determining what is a fixture is called "intention of the parties." Fixtures are personal property that has become real property.

Joint tenancy

An ancient form of co-tenancy that enabled land holdings to remain intact

Community property

An automatic 50 percent share in all property acquired "out of the fruits of the marriage."

Community Property

An automatic 50% share in all property acquired "by the fruits of marriage"

Easement by Prescription

An easement acquired by continuous, open, and hostile use of the property for the period of time prescribed by state law.

Real property

An example of a real estate asset that trades in the private equity market is

Commercial mortgage-backed securities

An example of a real estate asset that trades in the public debt market

Equity REITs

An example of a real estate asset that trades in the public equity market is

Easement by prior use

An implied right of use that allows the owner of a landlocked parcel the right to use a previously existing path across another property for access and egress

Involuntary Conveyance Without a Deed

An owner of land may involuntarily and unknowingly give up rights to land. The interest sacrificed can be either an easement, called an easement by prescription, or title to the land, called title by adverse possession. This can occur if others use the property and their use meets five conditions, which must be: Hostile to the owner's interests, and under claim of right (i.e., without the owner's permission and acting like an owner). Actual—the land must be employed in some natural or normal use. (This may be only seasonal or occasional when appropriate to the use.) Open and notorious—there can be no effort to disguise or hide the use from the owner or neighbors. Continuous—possession must be uninterrupted byPage 54 a period specified by state law; this period can be as short as 5 years or as long as 20 years. Exclusive—the claimant cannot share possession with the owner, neighbors, or others.

plat lot and block number

An unambiguous means to provide a description of property that identifies each parcel in a surveyed map of a subdivision. The recorded plat map contains other important information as well. It usually shows the location of various easements such as utilities, drainage, storm water retention, and bicycle paths. In addition, it may contain a list of restrictive covenants, though it is more common in current practice to record the restrictions in an associated declaration.

Approximately what portion of U.S. households own their own home? A. Approximately one-third B. Approximately two-thirds C. Approximately one-half D. Approximately one-quarter

Approximately two-thirds

Housing

As of 2018, the single largest asset category in the net worth portfolios of households is

Describe the value of U.S. real estate by comparing it to the values of other asset classes (e.g., stocks, bonds).

As of September 2005, real estate (including owner-occupied housing, but excluding real estate held by non-real estate corporations) was the single largest asset class in the U.S., valued at approximately $23.4 trillion. Publicly traded corporate equities equated to about $17.2 trillion of the U.S. market. The value of mortgage debt is approximately $11.1 trillion. This is larger than the existing stock of both corporate and foreign bonds and the outstanding value of U.S. Treasury Securities.

A major problem in buildings constructed prior to the early 1970's, which of the following environmental hazards commonly associated with insulation has been the focus of costly cleanups at many public buildings, especially schools?

Asbestos

A property owner who owes 8 mills in school taxes, 10 mills in city taxes, and 5 mills in county taxes and who qualifies for a $50,000 homestead exemption would owe how much tax on a property assessed at $180,000?

Assessed Value$180,000 Less: Homestead Exemption$(50,000) Taxable Value$130,000 Taxing Authority Levies Millage Rate to Taxes Levied 0.008x130000=$1,040 0.01000x130000=$1,300 0.00500x130000=$650 Total: $2,990

Given the following information, calculate the total annual tax liability of the homeowner: Market value of property: $537,500 Assessed value of property: 60 % of the market value Exemptions: $2,500 School District Millage Rate: 29.25 mills County and Township Millage Rate: 5.75 mills -$7,437.50 -$11,200.00 -$11,287.50 -$188,125.00

Assessed=0.6*537500=322500, minus exemptions=2500, equals=320000, mills: 0.02925x320000=9360, 0.00575x320000=1840, tax liability=9360+1840=11200 answer = $11,200.00

Real estate has been estimated to represent what proportion of the world's total economic wealth? A) nearly a third B) about one-half C) just over two-thirds D) just over a quarter E) it is impossible to estimate

B) about one-half Real estate makes up about one-half of the world's total economic wealth.

Much of the undeveloped land in the United States is divided nearly equally between all of the following categories EXCEPT A) water areas and federal land B) pastureland C) cropland D) forestland E) all of the above are nearly equally divided between undeveloped land categories

B) pastureland While each category represents between 21 and 23 percent of undeveloped land, pastureland only represents about 6 percent.

Increase equilibrium rental rates and increase property value

Based on your understanding of the supply and demand dynamics of user\space markets, an increase in demand for leasable space would, all else equal, cost which of the following effects?

The basic grid the government rectangular survey of land description includes.

Baseline running east and west, principal median running north and south

Property taxes are a main source of revenue for:

Both local governments and school districts.

Property taxes are a major source of revenue for:

Both local governments and school districts.

Property taxes are a major source of revenue for?

Both local govt & school districts

Which of the following tools of public land use control represents the earliest method of police power to regulate land use? (Hint: Standards for energy efficiency and sustainability are the most recent trends in the application of this land use control)

Building Codes

Two-Thirds

By the fourth quarter 2018, U.S. Households had accumulated 15.5 trillion and housing equity, which represents about 15% of their net worth. What proportion of US households own their home

Since 1982, the amount of developed land in the United States has increased nearly A) 19% B) 34% C) 52% D) 59% E) 67%

C) 52%

The national government can influence the value of real estate by A) regulating building codes. B) increasing property taxes. C) changes in income tax policies. D) any of the above E) none of the above

C) changes in income tax policies. Property taxes and building codes are under the jurisdiction of the local government. Some building codes are also under the jurisdiction of the state government. However, federal income tax policies can have a significant effect on the desirability of investment property, thus affecting its value.

Which of these liens always have the same, equal, senior priority?

CDD Lien. Assessment lien, Property tax lien.

The term real estate

Can be used to identify land and buildings. Describe the bundle of rights associated with ownership of the physical assets

Under the doctrine of constructive notice, if people ___ a claim it is enforceable.

Can learn about

The market in which required rates of return on available investment opportunities are determined is referred to as the: A. Property Market B. User Market C. Housing Market D. Capital Market

Capital Market

The required rate of return that an individual demands on a real estate investment is determined in the:

Capital Market

Real estate values derive from the interaction of three different sectors in the economy. Which of the following sectors serves to allocate financial resources among households and firms requiring funds?

Capital market

Then vestment returns investors require on available investment opportunities are primarily determined in

Capital markets

The collection of rent in price appreciation

Capital markets can be divided into two broad categories: equity interest and debt interest. Equity investors and real estate expect to earn a return on their investment through

Generally, higher property taxes on a property tend to lower its value, while more resulting community service for the property tend to increase its value. In short, the effects of the property tax are captured or

Capitalized

Which of these are among the rules used by courts to determine fixtures.

Character of the article and manner of adaptation, relation of the parties, manner of attachments, intention of the parties.

Real Property Complexity and Public Records

Clearly, therefore, within the property rights system that we have described, the only way to be certain what rights are obtainable for a parcel of land, and from whom, is to be able to account for the complete legal history of the property.7 Thus, our society has established a framework of laws, public record systems, and procedures to preserve this real property history. We describe this system in the sections below.

Which of these property interests are likely to include an implied easement of access? Multiple select question. - Coal rights - Timber rights - Oil rights - Right to a view - Right to erect a power line

Coal rights Timber rights Oil rights Right to erect a power line

Property rights can be divided into two classes, real and personal. Which of the following is an example of real property?

Commercial Building

In what market are rental rates for commercial real estate assets determined? In what market are property values determined?

Commercial real estate rental rates are determined in local user markets, while property values are determined largely in the property market.

An automatic marital property interest that gives each spouse a 50 percent interest is: -Elective share -Tenancy by the entirety -Community property -Dower/curtesy

Community property

Community Property

Community property gives a spouse a fifty percent claim on all property acquired "from the fruits of the marriage." Thus, if either spouse should independently acquire property during the marriage, it is likely to be regarded by courts as community property. Includes both real and personal property, a Spanish and french tradition, spouses have equal shares.

The current level of rental rates for each sub market and property

Competition for the currently available supply locations in space coupled with the existing supply of leasable space, determines

State and federal control of land uses has increased greatly over the past 40 years due in part to an increased awareness of environmental hazards. Which of the following federal environmental control laws was responsible for establishing the "Superfund" to finance emergency responses and cleanups of abandoned and unregulated waste dumps?

Comprehensive Environmental Response Compensation and Liability Act

State and federal control of land uses has increased greatly over the past 40 years due in part to an increased awareness of environmental hazards. Which of the following federal environmental control laws was responsible for establishing the "Superfund" to finance emergency responses and cleanups of abandoned and unregulated waste dumps?

Comprehensive Environmental Response Compensation and Liability Act (CERPLA)

Growth management laws at the state level require local jurisdictions to plan for and meet certain requirements. One such requirement prohibits local development unless adequate infrastructure, schools, police/fire protection, and social services have been put in place first. This requirement is referred to as the:

Concurrency requirement

Which of the following types of direct co-ownership combines single person ownership with tenancy in common?

Condominium

Capitalization Rate

Considered a fundamental pricing metric in commercial real estate markets, the ratio of the properties annual net income to its market value is more commonly referred to as

Investment-grade property

Consistently the investment target of pension funds, publicly traded real estate companies, and real estate funds, large commercial properties valued well over $10 million are often referred to as

A deed us a special form of ________________ to convey the exact property interest.

Contract

Devised

Conveyance or distribution of a decedent's real property though a will.

A cooperative differs from a condominium in that

Cooperative owners own shares in a corporation rather than actual real property. Cooperative owners are liable for the obligations of all owners where condominium owners are not. Cooperative owners have a leasehold rather than ownership of their unit.

Entities of indirect ownership by multiple owners include

Corporations, Limited Partnership, General Partnership

Which of the following covenants in a deed promises that the property will not be claimed by someone with a better claim to title? A. Covenant of seizin B. Covenant against encumbrances C. Covenant of quiet enjoyment D. Exceptions and reservation clause

Covenant of quiet enjoyment

The covenant in a deed that promises the grantor actually holds title is the

Covenant of seizin

The covenants in a deed are the most important differences among types of deeds. Which of the following covenants promises that the grantor truly has good title and the right to convey it? A. Covenant of seizin B. Covenant against encumbrances C. Covenant of quiet enjoyment D. Exceptions and reservation clause

Covenant of seizin

A household's equity in their home is defined as the

Current market value of the home minus outstanding mortgage debt

Real property is a term that A) is synonymous with the term "real estate". B) includes intangible ownership rights. C) includes improvements. D) all of the above E) c only

D) all of the above

An acre may be defined as A) 640 square yards B) 209 feet square C) 43,560 square feet D) b and c only E) any of the above

D) b and c only

The general warranty deed is considered the highest quality deed because it : a. is the only deed that can convey title. B. affirms that the grantor is financially sound. C. is the only deed that always conveys good title. D. has the most covenants.

D. HAS THE MOST COVENANTS

In a title search examining public records, which of these is most likely to be discovered? -Implied easement -Easement by necessity -Easement by estoppel -Dedication

Dedication

Under the Statute of Frauds, which of these must be in writing to be enforceable? -Deed -Contract to buy a car -Contract for moving services -Monthly lease

Deed

Under the Statue of Frauds, which of these must be in writing to be enforceable.

Deed of more than one year.

Which of these events can affect the chain of title for real estate? Multiple select question. Deeds five-year lease Marriages Estate settlements Foreclosures

Deeds Marriages Estate settlements Foreclosures

Habendum Clause

Defines or limits the type of interest being conveyed. The legal tradition recognizes certain words and phrases as signals of various real property interests

In a deed the habendum clause: -Imposes any restrictions sought by the grantor -Promises that the grantor has title -Names the grantee -Defines the interest being conveyed

Defines the interest being conveyed

In a deed the habendum clause: Multiple choice question. a. Names the grantee b. Imposes any restrictions sought by the grantor c. Promises that the grantor has title d. Defines the interest being conveyed

Defines the interest being conveyed

In order for a deed to be a valid conveyance of property, there must be an observable, verifiable transfer of the deed to the grantee. Typically this is accomplished when the grantor hands the deed to the grantee at closing. Which of the following basic requirements of a deed does this represent?

Delivery

In order for a deed to be a valid conveyance of property, there must be an observable, verifiable transfer of the deed to the grantee. Typically this is accomplished when the grantor hands the deed to the grantee at closing. Which of the following basic requirements of a deed does this represent? A. Acknowledgment B. Delivery C. Words of conveyance D. Recital of consideration

Delivery

If we desire to classify land by its use, land that consists of residential, industrial, commercial, and institutional land uses would be classified as:

Developed Land

The U.S. represents about 6 percent of the earth's land service, or approximately 2.3 billion acres. Who actually owns this land? What is the distribution of this land among the various uses (e.g., developed land, federal, land, forest land).

Developed land, consisting of residential, industrial, commercial, and institutional land, represents approximately 6 percent of the total land in the U.S. Federal lands and water areas occupy about 23 percent of the land; crop land and CRP land represent about 21 percent; and pasture land comprises about 6 percent of the land. Finally, the remaining land is divided between range land and forest land, with each representing 21 percent of all U.S land.

At the death of a property owner, property will convey either in accordance with a will or without a will. If a will dictates the distribution of the decedent's real property, the property is said to be:

Devised

At the death of a property owner, property will convey either in accordance with a will or without a will. If a will dictates the distribution of the decedent's real property, the property is said to be: A. patented B. devised C. conveyed by the law of descent D. dedicated

Devised

Once a document conveying an interest in real property is placed in the public records it is binding on the public, whether or not they make an effort to learn of it. Based on the common law tradition, this policy is known as the: A. Statute of Frauds B. doctrine of constructive notice C. habendum clause D. actual notice

Doctrine of constructive notice

Entrepreneurial-minded individuals seeking above average income may find business opportunities in A) brokerage B) leasing C) construction D) appraisal E) any of the above

E) any of the above Those with an entrepreneurial drive may find success and above average income in any of these fields of real estate!

Examples of improvements to the land include A) utility sheds and storage buildings B) streets and curbs C) sidewalks D) water systems E) b, c and d only

E) b, c and d only Structural improvements like storage sheds and buildings are improvements on the land.

All of the environmental laws enacted by the United States are administered by one agency, which makes the agency extremely important to land owners. This is the (three letter acronym) ____.

EPA

All of the environmental laws enacted by the United States are administered by one agency, which makes the agency extremely important to land owners. This is the (three letter acronym) _____.

EPA

In contrast to ownership of property by a corporation, in tenancy in common

Each owner can separately mortgage or sell their portion of the property, every owner holds the same actual real property interest rather than shares in an owner entity. All co-owners are mutually liable for any liens on the property.

Heterogeneous

Each property has unique features, whether it's age, the building design of its structures, or it's location. As such, real estate markets consist of assets that are considered

words of conveyance

Early in the deed will be words such as "does hereby grant, bargain, sell, and convey unto ..." they assure that the grantor clearly intends to convey an interest in real property. they indicate the type of deed offered by the grantor.

While the vast majority of conveyances of real property are private grants through a deed, there are multiple ways in which voluntary conveyance can occur without a deed. Which of the following types of easements can occur if a landowner gives an adjacent landowner permission to depend on her land? (E.g. A landowner may give a neighbor permission to rely on sewer access or drainage across his or her land.) A. Easement by prior use B. Easement of necessity C. Easement by estoppel D. Dedication

Easement by estoppel

Which of the conveyances of a real property interest listed below probably would be detected only by actual notice? Multiple select question. - Mortgage - Easement by estoppel - Marital ownership claim by a - former spouse of the owner - Prescriptive easement

Easement by estoppel Prescriptive easement

When a landowner subdivides land in a way that causes a parcel to be landlocked, it is possible for property to be voluntarily conveyed without a deed. If the landlocked parcel has no prior path of access, which of the following types of easements will automatically be created to make the land useful? A. Easement by prior use B. Easement of necessity C. Easement by estoppel D. Dedication

Easement of necessity

Modes of real property conveyance of easements where no deed is involved include

Easement of necessity Easement by estoppel Easement by prior use

Attractions of the property tax for local governments include that it is

Easy to collect or enforce, steady or reliable

a. performance standards

Elements of traditional zoning include all except: a. performance standards b. setback requirements c. bulk limits d. land use categories e. provision for special use districts

The right of government to acquire private property, without the owner's consent, for public use in exchange for just compensation is referred to as:

Eminent domain

Covenants in a deed are important because they

Enable the grantee to sue for damages for misrepresentations about title Bind the grantor to legal promises about title not encumbered with liens and easements

Consider the following excerpt from a sample deed: "The Seller is lawfully seized in fee simple of the above described property, less and except a prior reservation of all oil, gas and mineral rights in the property conveyed." The underlined portion of the preceding statement represents which of the following basic requirements of a deed? A. Habendum clause B. Recital of consideration C. Covenant against encumbrances D. Exceptions and reservations clause

Exceptions and reservations clause

The theoretic idea of impact fees is that they can "internalize"

Externalities

d. inability to judge the quality of a structure, once build

Externalities in land use include all except: a. leap frog development b. increase storm runoff from paving c. traffic congestion d. inability to judge the quality of a structure, once built e. noise created by a land use

Length of ownership in real estate

Factors that make it uniquely difficult to establish clear title in real estate as compared to property items include

Which of these risks is not mitigated by either of the main forms of evidence of title, title abstract with attorney's opinion or title insurance commitment? Multiple choice question. a. Erroneous land description b. Fraudulent deed c. Undetected claim of dower rights d. Undetected lien e. Facts discoverable by inspection of the property

Facts discoverable by inspection of the property

Rental rates for the office properties in downtown Boston significantly affect office rental rates in downtown Atlanta

False

The activities of federal state and local governments have little need for the services of real estate professionals

False

True or false: Rental rates for office properties in downtown Boston significantly affect office rental rates in downtown Atlanta.

False

The most complete interest ("bundle of rights") in real property is the: -Fee simple absolute -Freehold estate -Tenancy for years -Life estate

Fee simple absolute

Implied easement by prior use

If a landowner sells the front part of a parcel of land, retaining the back portion as a "land-locked" parcel, and if there is an existing informal path across the front parcel to the back one, the seller is likely to retain the path as a (an):

Government Rectangular Survey

For each region a baseline, running east and west, and a principal meridian, running north and south, were established as reference lines. From these lines a grid system was surveyed involving checks (24 miles square), townships (6 miles square), and sections (1 mile square). The numbering begins in the northeast corner of the township and ends in the southeast corner, going back and forth horizontally in between. Note that a section is not simply any one-square-mile area. It is a specifically surveyed and identified square mile within the framework of the rectangular survey system. A section (which contains 640 acres) is subdivided, as necessary, according to a set of simple rules. It typically is quartered (160 acres), and each quarter section can again be quartered (40 acres), and so on. Sections can be halved without ambiguity (e.g., north one-half, west one-half), but a description never uses the term "middle" because it is ambiguous. Exhibit 3-8 displays a number of sample subdivisions for a typical section. Note that halves and quarters can be combined to form L-shaped or other block-like properties.

Among modes of conveying real property that are involuntary, but involve a deed, which is most likely to be flawed, resulting either in litigation or failure of conveyance? -Probate -Bankruptcy -Divorce -Condemnation -Foreclosure

Foreclosure

Which of these modes of title conveyance is most likely to cause conflicts or "clouds" to title?

Foreclosure

Which of these modes of title conveyance is most likely to cause conflicts or "clouds" to title? -Foreclosure -Condemnation -Patent -Probate -Divorce settlement

Foreclosure

Which two of these modes of title conveyance are most prone to unresolved title conflicts? Multiple select question. - Probate - Foreclosure - Condemnation - Bankruptcy - Divorce

Foreclosure Bankruptcy

Which of these modes of title conveyance is most likely to cause conflicts or "clouds" to title

Foreclosure Foreclosure is a complicated procedure, typically arising from legally messy circumstances. Therefore, the title obtained at foreclosure sale usually has significantly more risks than normal.

Which two of these modes of title conveyance are most prone to unresolved title conflicts?

Foreclosure & bankruptcy

Which of these events can affect the chain of title for real estate?

Foreclosures, marriages, deeds, and estate settlements.

A new form of land use control that replaces zoning by land use type with zoning by building/development types is:

Form-Based Zoning

By the definition of real property, which of these is most likely to be included? -Mobile home with axles -Free standing garage -Office on a construction site -Movable storage shed

Free standing garage

By the definition of real property, which of these is most likely to be included?

Free standing garage.

Which of these possible zoning categories would exemplify the idea of form-based zoning? -Free standing offices -single family residential -Mixed use -Free standing, single occupant structures

Free standing, single occupant structures

Which two of these personal rights sometimes conflicts with property rights in a shopping mall?

Freedom of expression, freedom of assembly.

Right of exclusive possession

Freedom to lock your car

Match the rights to the freedom examples.

Freedom to lock your car = Right of use and enjoyment Freedom to decorate your house as you choose = Right of use and enjoyment Ability to demolish and replace a structure on your land = Right of disposition Ability to grow and sell crops on your land = Right of exclusive possession Freedom to sell your property when and for how much you choose = Right of disposition

Right of disposition

Freedom to sell your property when and for how much you choose. Ability to demolish and replace a structure on your land.

Types of Deeds

General Warranty Deed Special Warranty Deed Quitclaim Deed Deed of Bargain and Sale Judicial Deeds and Trustee's Deeds

Although deeds can only deliver what a grantor actually owns, they can still vary in "quality." Which of the following types of deeds is considered to be the "highest quality" because it contains the full set of legal promises the grantor can make? A. General warranty deed B. Special warranty deed C. Deed of bargain and sale D. Quitclaim deed

General warranty deed

Consider the following excerpt from a sample deed: "The Seller covenants with The Buyer that it has a good right to convey, that the property is free from all encumbrances, and that it forever warrants to defend all of the property so granted to The Buyer against every person lawfully claiming the same." Based on your understanding of the relation between a deed's covenants and the type of deed being conveyed, which type of deed is being conveyed in the statement above? A. General warranty deed B. Special warranty deed C. Deed of bargain and sale D. Quitclaim deed

General warranty deed

Elective Share

Gives surviving spouse some automatic ownership in both real and personal property owned by spouse at time of death

A utility company goes through proper legal procedure to acquire a portion of your property for a transmission line. However, it pays you only a small fraction of what the property it acquired is worth, and the city where your property is located refuses to intervene. What fundamental characteristic of rights does this violate? -Rights are enduring. -Rights are non-revocable. -Government is obligated to protect your rights. -There is no issue of rights here. -Rights are limited to citizens.

Government is obligated to protect your rights.

Voluntary Conveyance by a deed

Great majority are voluntary. Private transfers. The transfer may result from a sale and purchase, a gift, or an exchange.

Which of these factors would encourage a tenant to seek a tenancy for years rather than a periodic tenancy?

Greater possible disruption from moving, Greater need for the specific location

Which clause in a deed defines or limits the interest being conveyed? -Habendum -Words of conveyance -Exceptions and reservations -Delivery

Habendum

Which of the following clauses contained in a deed defines or limits the type of interest being conveyed?

Habendum Clause

Consider the following excerpt from a sample deed: "The Seller, for itself and its heirs, hereby covenants with the Buyer, its heirs and assigns forever, that the Seller is lawfully seized in fee simple of the above described property." The underlined portion of the preceding statement represents which of the following basic requirements of a deed? A. Habendum clause B. Recital of consideration C. Words of conveyance D. Exceptions and reservations clause

Habendum clause

Which of the following clauses contained in a deed defines or limits the type of interest being conveyed? A. Recital of consideration B. Words of conveyance C. Covenant D. Habendum clause

Habendum clause

Common examples of partial exemptions for property taxes include exemptions for

Homestead, blind, veteran, widow, historic, agricultural, disabled

Real Estate markets differ from other asset classes by having all of the following characteristics except: A. Local Markets B. High transaction costs C. Segmented Market D. Homogeneous Product

Homogeneous product

What is the single largest asset category, in terms of value, in the portfolio of the typical U.S. household? A. Housing B. Consumer Durables C. Stocks D. Bonds

Housing

If a grantee obtains title insurance, what value, if any, is there in the covenant of seizen in a warranty deed?

If a grantee has title insurance, the covenant of seizing remains an indication that the grantor really believes that they hold good title. The title insurer can still bring action against the grantor of a false title, even though the grantee has been indemnified for loss of title and property.

Prescription

If a neighboring land owner drives across a person's land openly and consistently for a number of years the neighbor may acquire an easement by:

A Phase I Environmental Value Assessment indicating a property is clean is legal protection to a buyer/investor:

If coupled with written assurance from the owner/developer

A Phase I Environmental Value Assessment indicating a property is clean is legal protection to a buyer/investor: -If signed by a qualified environmental consultant -Never -If coupled with written assurance from the owner/developer -Under any conditions

If coupled with written assurance from the owner/developer

Doctrine of constructive notice

If documents conveying interests in real property are properly recorded in the public records, then they are binding or enforceable on all persons, regardless of whether those persons are aware of the documents, by the:

Which of these statements best characterizes the doctrine of constructive notice?

If it is possible to know about a claim it is enforceable.

Which of these statements best characterizes the doctrine of constructive notice? -If people are given legal notice of a claim it is enforceable. -If it is possible to know about a claim it is enforceable. -If people know about a claim it is enforceable. -If people are explicitly advised of a claim it is enforceable.

If it is possible to know about a claim it is enforceable.

Which of these statements best characterizes the doctrine of constructive notice? Multiple choice question. a. If people are explicitly advised of a claim it is enforceable. b. If people know about a claim it is enforceable. c. If people are given legal notice of a claim it is enforceable. d. If it is possible to know about a claim it is enforceable.

If it is possible to know about a claim it is enforceable.

Law of Decent

If there is no will, the property is conveyed by the law of descent. The law of descent for the state containing the property determines its distribution among the heirs, and these laws vary significantly among the states.

Developed land

If we desire to classify land by its use, land that consists of residential, industrial, commercial, and institutional land uses would be classified as

"Raw" Land

If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as

modern alternatives (generally adopted after 1970) to traditional land use controls include

Impact fees, form-based zoning, planned unit development, performance standards.

Storm water drainage systems are best described as: A. Tangible Assets B. Improvements to the land C. Intangible Assets D. Improvements on the land

Improvements to the land

Bankruptcy

In a bankruptcy proceeding, real property of the debtor, unless preempted by a defaulted mortgage, may be included in other assets to be liquidated on behalf of the creditors. The court will appoint a trustee to conduct the liquidation, and the property will be conveyed by a trustee's deed. If the trustee follows requisite procedures, including obtaining permission of the court, sale of the property can be straightforward. However, since more things can go wrong than in a voluntary conveyance, the buyer has at least some additional risk, which is best alleviated through title insurance

Divorce Settlement

In a divorce settlement, real property may transfer by a "final judgment of dissolution," instead of a deed. Often the disposition will be directed by a "property settlement agreement." It may award the property directly through the final judgment, or it may call for a trustee's deed

Accurate statements about metes and bounds land descriptions include:

In the direction N 39 degrees 15 minutes W, W refers to the direction of rotation from north, each compass degree is divided into 60 minutes, in the direction N 39 degrees 15 minutes W, N indicates to start by finding north.

Condominium declaration

In this document are three-dimensional descriptions of the space occupied by each unit, a description of the common facilities and areas, a determination of the proportion of common areas associated with each unit, provision for expansion of the property, if needed, and numerous fundamental rules

An example of incomplete construction information potentially contributing to market failure is

Inability to examine plumbing under a concrete slab. Inability to examine roof nails for wind resistance once a roof is complete.

Externalities in land use include all except:

Inability to judge the quality of a structure, once built

Externalities in land use include all except:

Inability to judge the quality of a structure, once built.

General Warranty Deed

Includes the full set of legal promises the grantor can make (see the covenants above). Effectively, it warrants against any and all competing claims that may arise from the chain of title that are not spelled out in the deed, or from unidentified physical conflicts such as easements or encroachments (intrusions on the property by structures from adjacent land). Thus, it is considered the "highest-quality" deed and affords the maximum basis for suit by the grantee in case the title is defective.

Which of these terms is more characteristic of a periodic tenancy than a tenancy for years?

Informal, High risk of misunderstanding

Proposed changes in a zoning ordinance must

Initially be presented to a planning or zoning commission, then go before the elected officials for final judgement or ratification. Will the new zoning be compatible with the comprehensive plan? Should the comprehensive plan be modified? What effect will the new zoning have on surrounding land uses and on the larger community?

Title Insurance

Insurance paying monetary damages for loss of property from unexpected superior legal claims or for litigation to protect title. Deemed superior to the traditional abstract with opinion as evidence of title since it offers insurance, in addition. Title insurance has become the predominant type of evidence of title because the tradition of abstract with attorney's opinion, even if executed perfectly, cannot guard against certain risks. First, it is not hazard insurance; that is, it does not protect the owner from the threat of physical damage to the property. It only protects against legal attack on the owner's title arising from either a competing claim to title by someone else or a claim that diminishes the owner's rights of use

The common precedent that a refrigerator in a single family home is considered personal property while the same refrigerator in an an apartment building is a fixture represents what rule for determining fixtures? -Intention of the parties -Manner of attachment -Relation of the parties -Manner of adaptation

Intention of the parties

If government activity or government restrictions reduce the value of private property sufficiently, it is possible for the property owner to sue the government to force the government to acquire property though eminent domain. This process is known as

Inverse condemnation

individual investors

Investment grade property market is typically targeted by which of the following groups of investors except for

Consistently the investment target of pension funds, publicly traded real estate companies, and real estate funds, large commercial properties valued well over $10 million are often referred to as:

Investment-Grade Property

Characteristics of time-share or interval ownership include that:

It commonly is divided into weekly units. It may amount to a condominium interest, a leasehold, or a license. It is mostly associated with resort properties.

Unlike other forms of evidence of title, title insurance guards the grantee against certain risks. However, there are a number of important limits to title insurance. Which of the following is an example of the limits to title insurance?

It does not protect the grantee from the threat of physical damage to the property.

Unlike other forms of evidence of title, title insurance guards the grantee against certain risks. However, there are a number of important limits to title insurance. Which of the following is an example of the limits to title insurance? A. It does not protect the grantee from the threat of physical damage to the property. B. It does not protect a grantee against the legal costs of defending the title C. It does not protect a grantee against loss of the property in case of an unsuccessful title defense. D. It does not protect against legal attack on the owner's title arising from a claim that diminishes the owner's rights of use.

It does not protect the grantee from the threat of physical damage to the property.

Characteristics of dower, curtesy include that

It includes all real estate ever owned by the decedent spouse during the marriage. It creates a life estate for the surviving spouse. Dower is the provision for a surviving wife and curtsy is the provision for a surviving husband. Limited to real property only, conveys life estates, an ancient common law concept. An English common law tradition.

Title

It is clear from the complexity and length of ownership history that no single document can prove ownership of land; that is, there is no single document that we can meaningfully refer to as the "title." Rather, title must be a collection of evidence. This evidence must point to some person (or entity) as the holder of the fee (titled) interest.

Characteristics of a tenancy for years include which of these?

It must be conveyed in writing (to be enforceable) if longer than a year. It can be virtually any length, up to many decades.

The dominant rules in identifying fixtures are "intention of the parties" and "relation of the parties". Which statements exemplify one of these rules?

Items installed by a tenant are personal property of the tenant until they are abandoned. Furnishings created in a store for a retail tenant belong to the tenant until they are abandoned

Which of these typically is true about a time-share interest? -Information about its resale value is readily available. -It is easily marketed and sold. -It usually is a good financial investment. -Its value depends on the quality of the company offering it.

Its value depends on the quality of the company offering it.

Which of these tenancies has "right of survivorship," such that the death of one co-owner results in the decedent's ownership interest being passed to the surviving owner(s)?

Joint tenancy, Tenancy by the entirety

Land descriptions are special concern with real property, as compared to personal property because

Land descriptions must endure longer than descriptions for personal property, any error harms at least one owner or another, land can be extremely costly, and error in description can be very costly, because land is a continuous surface, descriptions must define boundaries.

Institutional-grade real estate

Larger, more valuable commercial properties, generally well over $10 million, targeted by institutional investors, such as pension funds and foreign investors. These investments are generally located in the 50 to 60 largest U.S. metropolitan areas.

Covenants

Legally bound promises for which the grantor becomes liable

In which of these freehold estates has the right of disposition been separated from the other rights?

Life estate

In which of these freehold estates has the right of disposition been separated from the other rights? -Fee simple conditional -Life estate -Tenancy for years -Fee simple absolute

Life estate

Which freehold estate has the right of disposition been separated from other rights?

Life estate

Which kind of deed makes it certain that the grantee actually receives the interest intended to be conveyed? Multiple choice question. a. General warranty deed b. Special warranty deed c. Deed of bargain and sale d. No deed can provide such certainty

No deed can provide such certainty

Explain the role of government in real estate at the federal, state, and local level. Which has the most significant impact on real estate markets?

Local government has the most influence on real estate markets. It affects the supply and cost of real estate through zoning and land use regulations, fees on new land development, and restrictive building codes. It also affects rental rates through the assessment of property taxes. Finally, local government affects the supply and quality of real estate through the provision of community infrastructure and through building codes. The Federal government influences real estate through income tax policy, housing subsidy programs, federal financial reporting requirements, fair housing laws, and disclosure laws. State government generally has the least influence on real estate. State government affects real estate through the licensing of real estate professionals, establishment of statewide building codes, the creation of fair housing and disclosure laws, and through numerous housing related subsides for low and moderate income households. In addition, the state may protect some environmentally sensitive lands from development.

the ______ Of realestate market contributes to segmentation

Localized nature, Immobility, Price differences

The order of steps from first to last in creating a chain of title are:

Locating all recorded documents relevant to the property, evaluating each relevant document for possible conveyance of title, reconstructing the sequence of fee holders down to the present owner, identifying any possible flaws in the sequence of ownership transmission

The first, and historically the most challenging step in a metes and bounds description is

Locating the point of beginning

Which of the following attributes of a home are the most difficult to observe and value? A. Land/Site Attributes B. Structural Attributes C. Location Attributes D. Financing Attributes

Location Attributes

A site plan review board will

Make recommendations to the elected officials, review site plans for apartments or other commercial or industrial sites

Tenancy by the entirety

Marital co-ownership that, at the death on one spouse, enables the surviving spouse to be sole owner of joint property

Which of these liens has priority strictly according to time of creation?

Mechanics' liens, Mortgage liens

One of the most important requirements of a land description is for it to be unambiguous. Which of the following methods of property description is the most unambiguous and is appropriate for use in legal documents?

Metes and Bounds

One of the most important requirements of a land description is for it to be unambiguous. Which of the following methods of property description is the most unambiguous and is appropriate for use in legal documents? A. Street Address B. Tax parcel number C. Reference to prominent features of the land (e.g. monuments, river banks, roads) D. Metes and bounds

Metes and bounds

Against which of these risks is a property owner protected by title insurance? -Missing signature on a prior deed -Damaging effects of mineral extraction -Eminent domain -Changing waterfront boundaries -Zoning changes

Missing signature on a prior deed

Against which of these risks is a property owner protected by title insurance? Multiple choice question. a. Missing signature on a prior deed b. Eminent domain c. Changing waterfront boundaries d. Zoning changes e. Damaging effects of mineral extraction

Missing signature on a prior deed

Which statements are correct concerning the impact of fixtures on real estate transactions?

Misunderstanding about potential fixtures can be costly, time consuming and disruptive .The potential for fixtures arises in most real estate transactions.

Participants in capital markets include

Mortgage investors, Bond investors, Stock investors

A home owners bundle of rights is ______affected if a local utility company has the right to access telephone Poles in the owner's backyard

Negatively

Which kind of deed makes it certain that the grantee actually receives the interest intended to be conveyed? -No deed can provide such certainty -Deed of bargain and sale -Special warranty deed -General warranty deed

No deed can provide such certainty

Failure to pay property taxes eventually leads to foreclosure sale for all types of property except:

No exceptions for taxable properties

Failure to pay property taxes eventually leads to foreclosure sale for all types of property except: -Homestead residences -Property leased to the government -No exceptions for taxable properties -Property leased to a religious organization

No exceptions for taxable properties

Of the following asset categories, which class has the greatest aggregate market value? A. Corporate Equities B. Mortgage Debt C. Government Debt D. Nongovernment Real Estate

Nongovernment real estate

Fundamental characteristics of rights include which three of these?

Obligation of government to uphold or protect them. They are non-revocable. They are enduring or permanent.

in contrast to traditional landlord-tenant law, three points that modern residential landlord-tenant law addresses include

Obligations for maintenance, right of entry by the landlord, handling deposits.

For a deed, identify the requirements of the grantor. SELECT ALL THAT APPLY: - Of legal majority age - Signature required - Legally competent - Citizen of the property country

Of legal majority age Signature required Legally competent

Nongovernment real estate

Of the following asset categories, which has the greatest aggregate market value?

Tangible assets include

Office furniture, land, and cars

Ownership by tenancy in common, compared to a corporation

Often arises as a default form of co-ownership. Is real property rather than personal property.

Metes and Bounds

Oldest form. metes referred to measures, and bounds referred to the identifiable boundaries of surrounding parcels of land. The point of beginning, always critical, had to be defined in terms of any existing reference points available. Thus, the best the surveyor could do was to make good use of trees, large rocks, and identifiable boundaries of neighboring properties. Now is very precise. Use GPS. Do a walk around. In early times the point of beginning might be a notable feature of the land, such as a large oak tree or a boulder. However, because such "permanent" features of land have a way of changing through time, modern practice is to install a steel or concrete marker as the point of beginning. A metes and bounds description is the most flexible of descriptions, and is capable of describing even the most irregular of parcels. However, it should neither be created nor interpreted except by a trained surveyor.

Fixture

Once was personal property but now is real property.

Characteristics of an easement appurtenant include that

One parcel receives a benefit at the expense of another one. It involves two adjacent parcels of land. An easement appurtenant runs with the land.

The primary difference between the two main forms of "evidence of title," abstract and attorney's opinion vs title insurance commitment, is:

Only one compensates for any legal costs or loss from attack on title (insurance)

A deed is a special form of written contract used to convey a permanent interest in real property. Unlike most contracts, a deed requires: A. both parties to be legally competent and of legal majority age. B. only the grantee to be legally competent and of legal majority age. C. only the grantor to be legally competent and of legal majority age. D. both parties to make promises to perform.

Only the grantor to be legally competent and of legal majority age.

Co-ownership can occur in a variety of ways, with significant variation in how the bundle of rights is jointly held. All of the following entities are forms of direct co-ownership EXCEPT:

Partnership

While several kinds of real property conveyances result from events beyond the control of the grantor, the majority of conveyances are voluntary through a deed. Which of the following is an example of a voluntary conveyance of real property with a deed? A. Patent B. Probate C. Condemnation D. Implied Easement

Patent

Which of these items most likely is(are) personal property?

Patio furniture, A very large television, An oriental rug

Elements of traditional zoning include all except:

Performance standards

Brian just began graduate school at the local university and is looking to rent an apartment. A family friend has decided to lease him a two bedroom, one bathroom cottage through an oral agreement with no definite lease period outlined. Which of the following leasehold estates best describes Brian's situation?

Periodic Tenenancy

The fundamental requirement for a land description is to be

Permanently unambiguous

Which of these items is (are) likely to be a fixture?

Pews that are custom designed for a house of worship, Standard wall-to-wall carpeting

Considered a "questionable conveyance of title" by most courts, which of the following types of deeds is worded to imply no claim of title, but rather only convey what interest the grantor actually has? (Hint: This type of deed may be used by a developer to convey certain lands of a subdivision to the local government through dedication.) A. General warranty deed B. Special warranty deed C. Deed of bargain and sale D. Quitclaim deed

Quitclaim deed

Homogeneous product

Real Estate markets differ from other asset classes by having all the following characteristics except:

sewer system

Real estate is defined as land and its permanent improvements. Which of the following is an example of an improvement to the land?

The term real estate can be used in three fundamental ways. List these three alternative uses or definitions.

Real estate is most commonly defined as land and any improvements made to or on the land, including fixed structures and infrastructure components. The term is also used to describe the "bundle of rights" associated with the ownership and use of the physical characteristics of space and location. Finally, real estate may be described as the business activities related to the development, construction, acquisition, operation, and disposition of real property assets.

How much of the wealth of a typical U.S. household is tied up in real estate? How does this compare to the role that assets and investments play in the portfolios of U.S. households?

Real estate is the single largest asset in the typical U.S. household's portfolio, representing approximately 30 percent of household wealth in September of 2005. In comparison, the total value of corporate stocks and mutual fund shares represents 16 percent of household assets. Pension reserves, excluding stocks, represent 17 percent of household assets. Deposits and money market funds represent 9 percent of household assets.

Real estate assets and markets are unique when compared to other assets or markets. Discuss the primary ways that real estate markets are different from the markets for other asset that trade in well-developed public markets.

Real estate is unlike other asset classes because it is heterogeneous and immobile. Real estate assets have unique and distinctive characteristics, such as age, building design, and location. Real estate is also immobile; therefore, location is an important attribute. Because real estate assets are heterogeneous and immobile, real estate markets are localized. Potential users of real property and competing real estate are typically located in the same area or region. Additionally, real estate markets are highly segmented because of their heterogeneous nature. Therefore, potential users of a specific type of real property generally do not seek to substitute one property category for another. Finally, most real estate transactions are privately negotiated and have relatively high transaction costs.

Land and its permanence structures are

Real property

The conveyance of real estate is uniquely complicated because

Real property interests have a long history Real property interests are complex Real estate must be described on a continuous surface.

An example of negative externalities is: -The effect on nearby house values of a high quality elementary school -The effect on nearby house values of a successful public park -The effect on surrounding properties of outstanding architecture -Reflective glass or roof material deflects light and heat onto adjacent properties

Reflective glass or roof material deflects light and heat onto adjacent properties

The most accurate conclusion about the regressivity of the property tax is that it is:

Regressive but when benefits are considered, the net result is not regressive.

The most accurate conclusion about the regessivity of the property tax is that it is:

Regressive, but when benefits are considered, the net result is not regressive

a and b, but not c

Restrictive covenants for a subdivision usually can be enforced by:

A person who owns a residence as a life estate fails to have which of the basic rights that are elements of property?

Right of disposition

A person who owns a residence as a life estate fails to have which of the basic rights that are elements of property? -Right of use and enjoyment -Right of disposition -Right of exclusion -Right of conversion

Right of disposition

Which two of these best demonstrate personal rights rather than property rights?

Right to invite a group into your home. Right to post election campaign signs on your lawn.

Which two of these best demonstrate personal rights rather than property rights?

Right to post election campaign signs on your lawn. Right to invite a group into your home.

A vacant lot has existed in an old neighborhood as far back as anyone can remember. Over time the sequence of owners of an adjacent house have fenced it in and used it for a garden. Suddenly another adjacent owner on the opposite side of the lot finds a survey indicating that the lot was purchased by their great great grandfather nearly a century ago. By what aspect of rights must this claim be taken seriously?

Rights are enduring.

You own a single family home with a rather narrow space between you and your neighbor's house. Your neighbor, who has complained about the narrow space, simply erects a privacy fence partially on your property without your permission. What fundamental characteristic of rights does this violate, if any? -Rights are non-revocable. -Rights are enduring. -There is no issue of rights here. -Rights are protected by government. -Rights are limited to citizens.

Rights are non-revocable.

You own a single family home with a rather narrow space between your's and your neighbor's house. Your neighbor, who has complained about the narrow space, simply erects a privacy fence partially on your property without your permission. What fundamental characteristic of rights does this violate, if any?

Rights are non-revocable.

Law of capture

Rules used by courts to determine whether something is a fixture include all except:

Involuntary Conveyance by a Deed

Several kinds of conveyances result from events beyond control of the grantor. These include probate proceedings to settle the grantor's estate, sale of property in bankruptcy proceedings, divorce settlement, condemnation proceedings, and foreclosure.

Land descriptions

Since land parcels are defined on a continuous surface, adjacent everywhere to other land parcels, description is challenging. It cannot be accomplished, for example, by a bar code. Errors in a land description must imply a loss to some landowner that could be substantial. Three methods: Metes and Bounds Subdivision Play Lot and Block Number Government Rectangular Survey

Patent

Special type of deed that conveys title to real property owned by government to a private property

An easement is the right to use another's land for a ______________ and ____________ purpose

Specific, Limited

Marketable Title Laws

State laws intended to limit the number of years that title search must "reach back" through the title "chain" These laws set limits on how far back a title search must go. The "root of title" conveyance is the last conveyance of the property that is at least a certain number of years old (typically 30 to 40 years)

The licensing of real estate professionals is usually done at the

State level

A law requiring any contract conveying a real property interest to be in writing in order to be enforceable is a modern application of the:

Statue of Frauds

A law requiring any contract conveying a real property interest to be in writing in order to be enforceable is a modern application of the: -Statute of Frauds. -doctrine of constructive notice. -habendum clause. -actual notice.

Statute of Frauds

A law requiring any contract conveying a real property interest to be in writing in order to be enforceable is a modern application of the: A. Statute of Frauds B. doctrine of constructive notice C. habendum clause D. actual notice

Statute of Frauds

Intangible assets include

Stock investment, Bond investments, And leases

Improvements to the land

Storm water drainage systems are best described as:

Which of these easements would be an easement appurtenant?

Sunlight easement requiring setback of adjacent buildings, Driveway right-of-way across an adjacent parcel

investment grade properties

Synonymous with institutional-grade real estate, large, relatively new and fully leased commercial properties located in major metropolitan areas, generally well over $10 million, targeted by institutional investors, such as pension funds and foreign investors.

What is difference between tangible and intangible assets? Does the ownership of "real estate" involve tangible assets, intangible assets, or both?

Tangible assets are physical assets such as land, automobiles, and buildings. Intangible assets are nonphysical, including patents, financial claims, or contractual agreements. Real estate is a tangible asset, but a bundle of intangible rights is also associated with the ownership and use of the property.

A ten year commercial lease conveys what real property interest?

Tenancy for years

A ten year commercial lease conveys what reap property interest?

Tenancy for years

Condominium combines individual ownership with

Tenancy in common

Which of these ownership entities is a form of true co-ownership?

Tenancy in common

Which of these ownership entities is a form of true co-ownership? -Limited partnership -Trust -General partnership -Tenancy in common

Tenancy in common

Match the following statements to tenancy in common, joint tenancy, or tenancy by the entirety.

Tenancy in common = The default form of co-tenancy, virtually like individual ownership Joint tenancy = An ancient form of co-tenancy that enabled land holdings to remain intact Tenancy by the entirety = Marital co-ownership that, at the death on one spouse, enables the surviving spouse to be sole owner of joint property

Through all of the above: Primarily through user markets Primarily through the capital markets Primarily through their taxation policies

The actions of local, state, and federal governments affect real estate values:

Adverse Possession

The actual, open, notorious, hostile, and continuous possession of another's land under a claim of title. Possession for a statutory period may be a means of acquiring title.

True statements about special assessments include:

The assessments often are proportional to front footage of the lots involved, common applications are for sidewalks, street improvements, sewer extensions, etc. They are used to fund public improvements affecting a limited set of properties

True statements about special assessments include:

The assessments often are proportional to front footage of the lots involved. They are used to fund public improvements affecting a limited set of properties. Common applications are for sidewalks, street improvements, sewer extensions, etc.

a. elected governing commission or council

The authority for approving site plans for large projects ultimately rests with the: a. elected governing commission or council b. mayor or city manager c. planning board or commission d. planning board or commission staff e. zoning review board

Doctrine of constructive notice

The common law tradition is that a person cannot be bound by claims or rules he or she has no means of knowing. The corollary is that once a person is capable of knowing about a claim or rule, he or she can be bound by it. The importance of the doctrine here is that the public need not actually be aware of contracts conveying interests in real property for the contracts to be valid and enforceable. The public merely has to be able to know about the contracts.

Title abstract

The compilation of all documents summarizing the chain of title into chronological volume and then given to an attorney for final interpretation.

true or false: rental rates for office properties in downtown Boston significantly affect office rental rates in downtown Atlanta

false

Which is the following contribute to the complexity of real estate transactions

The continuous nature of all real estate parcels The complex bundle of rights associated with real estate ownership

Which is the clearest example of a positive externality? -The effect on a neighborhood from good lawn maintenance -Excess demand for parking generated by a health club -Trash generated from food trucks -Sounds created by a dance club

The effect on a neighborhood from good lawn maintenance

The authority for approving site plans for large projects ultimately rests with the:

The elected governing commission or council.

Discounting

The expected stream of rental income is capitalized in the valley by converting expected future cash flows into present value through a process called

The use of Torrens certificates, never large in the U.S., has diminished in recent years. Explain how marketable title laws, recently adopted in many states, might have made Torrens certificates less interesting and useful.

The idea of a Torrens certificate was to eliminate the need for a search of historical public records to affirm chain of title. Marketable title laws may have accomplished this objective in that they usually establish a "root" transaction that generally is taken for face value as the status of title at that time (say, 30 years earlier). Unless there is evidence to the contrary, title search need not reach back earlier than the "root" transaction. Thus, much of the value of the Torrens certificate is accomplished without the administrative costs of maintaining an elaborate certificate updating process.

Description of Land

The important requirement for the land description is that it be unambiguous. These "legal descriptions" are metes and bounds, subdivision plat lot and block number, and government rectangular survey

Habendum clause

The interest being conveyed by a deed is specified in the:

A major reason for subdivision regulations is that usually the responsibility for maintaining streets and sewers eventually falls to

The local government

Low transaction costs

The market for buying, selling, and leasing real estate can be characterized by All of the following except

Capital Market

The market in which required rates of return on available investment opportunities are determined is referred to as the:

The general warranty deed imposes the highest financial responsibility of any deed for the grantor to have good title. This is because the deed has

The maximum number of covenants

Plat lot and block number

The most common form of legal description for urban residential property

Three conditions for a zoning variance are

The owner must show true hardship in terms of inability to use the lot as zoned. The condition must be unique to the lot and not a condition common to other parcels in the vicinity. The variance must not materially change the character of the neighborhood.

Dower

The rights that a wife acquires in her husband's fee simple property. One third.

Which of these are elements of "land", as used in real property.

The surface of the earth, below the surface as far as technology can reach, above the earth as high as building technology and air traffic space permits.

real estate

The tangible assets of land and buildings; the "bundle" of rights associated with the ownership and use of the physical assets; and the industry, or business activities, related to the acquisition, operation, and disposition of the physical assets.

Title Search

The task of examining the evidence of title in the public records.

"New urbanism" is a term used to describe:

The theory that residential and commercial uses should be integrated, streets and parking should discourage through traffic, and neighborhoods should be pedestrian oriented..

New urbanism is a term used to describe:

The theory that residential and commercial uses should be integrated, streets and parking should discourage through traffic, and neighborhoods should be pedestrian oriented..

Planned unit development (PUD) allows residential density to range from single family detached to multifamily, and often include supporting commercial development

True

New urbanism is a term used to describe:

The theory that residential and commercial uses should be integrated, streets and parking should discourage through traffic, and neighborhoods should be pedestrian oriented

Identify and describe the interaction of the three economic sectors that affect real estate value

The three economic sectors that influence real estate value are user markets, capital markets, and government. In real estate user markets, households and firms compete for physical location and space. This competition determines who will obtain the use of a specific property and how much will be paid for the use of this property. Capital markets provide the financial resources necessary for the development and acquisition of real estate assets. Real estate competes for resources against other investment opportunities in the capital market based on investor required rates of returns and risk considerations. Capital markets are segregated into two categories: equity interests and debt interests. Government influences the interaction between the user markets and capital markets through tax policy, regulations, provisions of services and infrastructure, subsidies and other means.

All of the following statements are true in describing the determination of just compensation EXCEPT:

The value of the property is determined solely by its current use.

Conveyance without a Deed

There are multiple ways an easement can arise incidental to a voluntary conveyance of property. These include variations of implied easements and easement by estoppel.

The priority of liens is important because

There seldom is sufficient value at foreclosure to satisfy multiple liens, a superior lien gets complete satisfaction before other liens. In default, liens get satisfaction strictly by priority.

Recording Statues

These laws require that a document conveying an interest in real property must be placed in the public records if it is to achieve constructive notice. When a grantee receives a deed, or when a lender receives a mortgage, it is important to record it as soon as possible since priority of real property claims generally is by chronology of recording

Property tax ID numbers and street addresses can never be sufficient as real property descriptions because: -They are a point rather than a boundary description -Streets and roads may change -They may repeat from one community to another -They frequently have errors

They are a point rather than a boundary description

Property tax ID numbers and street addresses can never be sufficient as real property descriptions because: Multiple choice question. a. They are a point rather than a boundary description b. They frequently have errors c. Streets and roads may change d. They may repeat from one community to another

They are a point rather than a boundary description

Characteristics of restrictive covenant include that

They are enforced through court injunction, they are enforceable only by those holding an interest in the affected property, then can impose virtually any restriction that does not violate public policy, they are created at the conveyance of a parcel of land.

Distinguishing characteristics of freehold estates are that

They are indefinite in length, they are titled estates.

Fundamental characteristics of rights include which three of these?

They are non-revocable, they are enduring or permanent, Obligation of government to uphold or protect them.

All of these are possible

Timeshare programs can involve which of the following claims or interests?

Explain how title insurance works. What risks does it cover? Who pays, and when? What common exceptions does it make?

Title insurance protects an owner (or lender) from legal challenges or complications with title. Title insurance protects a grantee (or mortgagee) against the legal costs of defending title, and against loss of the property in case of an unsuccessful defense. It cannot save a title that is genuinely false. However, it indemnifies the policyholder against litigation costs, and compensation for loss of the property, should that occur. In many localities it is customary for the seller to pay for title insurance, though this is negotiable. For a mortgage policy protecting a lender, the borrower pays. There are important limits or exceptions to title insurance. First, it is not hazard insurance; that is, it does not protect the owner from the threat of physical damage to the property. It only protects against legal attack on the owner's title. Second, title insurance typically excepts any facts that would be revealed by an inspection and survey of the property.

e. a and b, but not c

Traditional land use controls (pre-1970) include: a. zoning b. building codes c. subdivision regulation d. a and b, but not c e. all of the above

Better realestate decisions affect the productivity of individuals phones and local markets

True

Curtesy

husband's rights in wife's property, one third.

Planned unit development (PUD) allows residential density to range from single family detached to multifamily, and often include supporting commercial development.

True

True or false: Better real estate decisions affect the productivity of individuals, firms, and local markets.

True

New construction of a particular type of realestate generally does not occur

Unless current property values exceed construction cost

A market where tenant negotiate rent and other terms with property owners or their managers is referred to as a: A. Property Market B. User Market C. Housing Market D. Capital Market

User Market

The demand for real estate derives from the need that market participants (e.g., owner occupants, tenants, renters) have for shelter and convenient access to other locations. This competition for physical location and space occurs in the:

User Market

The property tax is a form of ad ____ tax that is the primary source of revenue for almost all forms of local government in the United States

Valorem

Investment grade properties are typically

Valued at more than 10 million Purchased by institutional investors

In a single family home transaction, which three of these articles are most likely to be a fixture?

Vinyl floor covering, attached basketball goal, custom drapes

In a single family home transaction, which three of these articles are most likely to be a fixture?

Vinyl floor covering, attached basketball goal, custom drapes.

A national law that has imposed permitting requirements on million of acres of land, has been brought to the United State Supreme Court, and that continues to stir great controversy, is the Clean

Water

A national law that has imposed permitting requirements on millions of acres of land, has been brought to the United States Supreme Court, and that continues to stir great controversy, is the Clean ____ Act.

Water

A national law that has imposed permitting requirements on millions of acres of land, has been brought to the United States Supreme Court, and that continues to stir great controversy, is the Clean _____ Act.

Water

Housing

What is the single largest asset category in the portfolio of a typical U.S. household?

Approx. ⅔

What portion of households owns their house?

Dedication

When a developer creates a subdivision, it is common to dedicate (convey to the local government) the street rights-of-way and perhaps open spaces such as parks, school sites, or retention ponds. Frequently, this is done simply through statements in a subdivision plat map (discussed later in this chapter), and no deed is involved.

Real estate construction is a volatile process determined by the interaction of the user and capital markets. What signals do real estate producers use to manage this process? What other factors affect the volatility of real estate production?

When real estate market prices exceed the cost of production, this signals producers to build, or add additional supply. As the supply of real estate increases, rental rates decline in the user market, which lowers property values and signals the real estate market to slow the production of real estate. Furthermore, shocks in the capital markets and the volatility of construction costs add to the volatility of real estate production. For example, higher interest rates adversely affect property values, all else equal, thereby reducing the attractiveness of new construction. Additionally, shortages of key building materials and organized labor disputes may contribute to the volatility of real estate production.

Fences

When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements. Improvements on the land include

Issues that arise in determining rights to minerals, oil and gas include

Whether oil and gas are treated as simply a form of minerals or as flowing substances, whether ownership of minerals involves ownership of the space containing them.

location attributes

Which of the following attributes is considered the most likely to result in drastic value differences between otherwise similar products

Location attributes

Which of the following attributes of a home are the most difficult to observe in value?

State Government

Which of the following branches of government is directly involved in establishing rules and regulations for the licensing of professionals in the field of real estate

License

Which of the following is not a form of property right?

Access to schools

Which of the following is not important to the location of commercial properties?

Access to schools

Which of the following is the least important to the location of commercial properties?

Tenancy in common

Which of these forms of co-ownership could best be described as "normal ownership," except that multiple owners share identically in one bundle of rights?

competent grantee

Which of these is not a requirement of a valid deed?

Property tax lien

Which of these liens has the highest priority?

Community property

Which of these marriage-related forms of co-ownership gives each spouse a one- half interest in any property that is "fruits of the marriage"?

Questions that arise in clarifying rights to water include

Who has the right to use the surface of a body of water? Who has the right to use groundwater? Who has the right to use the water itself? Who owns the land under a body of water? Who controls use of land under a body of water?

For those interesting in mineral or petroleum extraction, which aspect of water rights are especially important in the United States? -Who controls use of land under the water. -Who owns the land under a body of water. -Who has right to use the water surface. -Who has right to use the water itself (remove, degrade, etc.)

Who owns the land under a body of water.

Questions that arise in clarifying rights to water include

Who owns the land under a body of water? (This is especially important for mineral, oil, and gas rights that may be involved.) Who controls use of land under a body of water? Who has the right to use the surface of a body of water? Who has the right to use the water itself (to alter the character of the water by consumption, degradation, use in irrigation, and so on)? Who has the right to use groundwater?

The type of deed offered by the grantor is communicated through a phrase such as "does herby grant, bargain, sell and convey unto . . ." This clause is referred to as the:

Words of conveyance

c. police power

Zoning is an exercise of which type of general limitation on property rights? a. eminent domain b. taxation c. police power d. escheat e. all of the above

Characteristics of indirect co-ownership include that

a business entity is the actual owner of the property. co-owners hold shares in the business entity that actually owns the property.

For real property the best definition of title is

a collection of documents and other evidence pointing to some person(s) or entity as holding the fee, or titled, interest

For real property the best definition of title is -a collection of documents and other evidence pointing to some person(s) or entity has holding a valid certificate of title. -the ownership claim of a person holding a certificate of title. -a collection of documents and other evidence pointing to some person(s) or entity as holding the fee, or titled, interest. -the claim of whoever holds the last deed related to a property.

a collection of documents and other evidence pointing to some person(s) or entity as holding the fee, or titled, interest.

For real property the best definition of title is Multiple choice question. a. the ownership claim of a person holding a certificate of title. b. the claim of whoever holds the last deed related to a property. c. a collection of documents and other evidence pointing to some person(s) or entity has holding a valid certificate of title. d. a collection of documents and other evidence pointing to some person(s) or entity as holding the fee, or titled, interest.

a collection of documents and other evidence pointing to some person(s) or entity as holding the fee, or titled, interest.

In true co-ownership of property, the owners

basically hold the same bundle of rights. cannot meaningfully partition their ownership into separate bundles of rights.

Real estate markets tend to be highly segmented due to the heterogeneous nature of the products. Which of the following examples depicts this issue of market segmentation?

a couple searching for a single-family detached unit has limited their search to be in a specific price range between $350,000 and $400,000

deed of bargain and sale

a deed that conveys the land itself rather than ownership interests through warranties

Nearly half of states in the U.S. use the sale of tax lien certificates to manage defaulted property taxes. The certificates are auctioned to the public at:

a discount from the face value of the property taxes due.

An important distinction both practically and conceptually is the difference between an easement and a license. All of the following characteristics pertain to a license except -a license is revocable by the grantor -a license can be granted orally -a license is enduring -a license grants permission to use another's land for a specific and limited purpose

a license is enduring

Components that typically are in a community comprehensive plan include

a map of various land uses within the community. allocation of land to various uses. plans for schools and other public facilities.

covenant of seizen

a promise that the grantor truly has good title and the right to convey it

covenant against encumbrances

a promise that the property is not encumbered by liens, easements, or other such limitations except as noted in the deed

Covenant against encumbrances

a promise that the property is not encumbered with leins, easements, or other such limitations as noted in the deed.

covenant of quiet enjoyment

a promise that the property will not be claimed by someone with a better claim to title

Covenant of quiet enjoyment

a promise that the property will not be claimed by someone with a better claim to title.

Ways in which restrictive covenants are created include

a restrictive clause placed in a deed conveying a single property. A declaration of covenants placed in public records when a new subdivision is created

Curtsey

a similar common law provision for husbands poor solutions to the needs of surviving spouses in an industrial, mobile society because they ignore personal property wealth (stocks and bonds), and because they created only a (nonmarketable) life estate

deed

a special form of written contract used to convey a permanent interest in real property

title insurance commitment

a widely used form of "evidence of title"

devised

a will dictates the distribution of a decedent's real property

In the history of eminent domain, the Kelo v. New London, Connecticut decision of the U.S. Supreme Court in 2005 affirmed the possibility of a community being:

able to use eminent domain to acquire property for private development if it serves public purpose even if the current land use is not blighted.

In real estate markets, a better location can also be referred as one with better _____

access

the nuances of _____ are fundamental to real estate value

access

Which of the following is the least important to the location of commercial properties?

access to schools

Cooperative

actually is not a form of true direct co-ownership but rather is a proprietary corporation. Just as with a partnership, limited liability company (LLC), or standard corporation, the cooperative owns real estate as a single owner.

Under the doctrine of constructive notice, if people ______ a claim it is enforceable

can learn about

Characteristics of building codes include

address safety, health and sanitation. generally are regional rather than strictly local. continue to change with changing technology.

Aspects of subdivision regulations include requirements for

adequate quality of streets. coordination of streets with surrounding subdivisions. adequate provision of water and sewers.

An owner of land may involuntarily and unknowingly give up the rights to land. When a fee simple interest is conveyed to a new owner without a deed and without the consent or knowledge of the original owner, this is said to be conveyed by: -prescription. -adverse possession. -accretion. -reliction.

adverse possesion

An owner of land may involuntarily and unknowingly give up the rights to land. When a fee simple interest is conveyed to a new owner without a deed and without the consent or knowledge of the original owner, this is said to be conveyed by:

adverse possession

Two conveyances of real property that likely would be revealed only by actual notice are

adverse possession & an implied easement of access

Two conveyances of real property that likely would be revealed only by actual notice are Multiple select question. - adverse possession. - an implied easement of access. - conveyance through probate. - an easement in gross related to oil rights.

adverse possession. an implied easement of access.

An easement is the right to use land for a specific and limited purpose. Which of the following easements involves a relationship between two parcels of land, is a permanent feature of both parcels involved, and gives the dominant parcel some intrusive use of the servient parcel?

affirmative easement appurtenant

performance standards have been implemented for a wide variety of externalities in land use, including

air quality effects from a land use. traffic generation by a land use. storm runoff.

In Chicago, New York and other major cities, there are major buildings constructed over railroads, or former railroads, enabled by the use of: -air rights -cantilever construction -political influence -rights to the subsurface

air rights

doctrine of constructive notice

all persons must honor any valid deed or other conveyance thus recorded and available for examination

To establish title for real property the most important considerations are Multiple select question. - all recorded evidence. - actual notice. - only recorded deeds to the property. - property tax records of the property.

all recorded evidence. actual notice.

Characteristics of an easement appurtenant include that

an easement appurtenant "runs with the land." one parcel receives a benefit at the expense of another other. It involves two adjacent parcels of land.

An example if an easement in gross is

an easement to remove minerals from a parcel.

An example if an easement in gross is -an easement to remove minerals from a parcel. -an easement imposing a building height restriction on an abutting parcel. -a driveway easement across a parcel that benefits an abutting parcel. -a common wall easement.

an easement to remove minerals from a parcel.

The primary means of satisfying the doctrine notice is by recording

any document conveying a real property interest

The primary means of satisfying the doctrine of constructive notice is by recording

any document conveying a real property interest

The primary means of satisfying the doctrine of constructive notice is by recording -any document related to a real estate sale -any document that might be disputed. -any document conveying a real property interest. -all documents in a real estate transaction.

any document conveying a real property interest.

The primary means of satisfying the doctrine of constructive notice is by recording Multiple choice question. a. all documents in a real estate transaction. b. any document that might be disputed. c. any document related to a real estate sale d. any document conveying a real property interest.

any document conveying a real property interest.

Home owner associations and condominium associations can invoke a lien for owner assessments. By state law or by provision in the owner documents such a lien often is automatically subordinated to:

any first mortgage lien

improvements on the land

any fixed structures such as buildings, fences, walls, and decks

Restrictive covenant for a subdivision can be enforced by

any owner of a parcel in the subdivision. any renter in the subdivision. any lender whose loan is secured by a parcel in the subdivision.

Restrictive covenant for a subdivision can be enforced by

any renter in the subdivision, any owner of a parcel in the subdivision, any lender whose loan is secured by a parcel in the subdivision.

property

anything that can be owned , or possessed, it can be tangible or intangible

Deeds

are the primary means of conveying interests in real property. They are a special form of contract, distinguished by a group of clauses that determine the exact property interest being conveyed. Deeds vary in "quality" by the strength of covenants (i.e., promises) they contain. Under some circumstances, however, property can transfer to a new owner without a deed and even with no explicit document at all. Grantor (with signature) and grantee. Recital of consideration. Words of conveyance. Covenants. Habendum clause. Exceptions and reservations clause (if any). Description of land. Acknowledgment. Delivery. Unlike most contracts in which both parties must be legally competent and of legal majority age, only the grantor must meet these conditions for a deed

A major problem in buildings constructed prior to the early 1970's, which of the following environmental hazards commonly associated with insulation has been the focus of costly cleanups at many public buildings, especially schools?

asbestos

The City of Grand Rapids installed a new water main on Oak Street. The city then decided to charge the property owners along Oak Street a proportional cost of the new water main. If a property owner refuses to pay his or her proportional share of the cost, the city may file a(n)

assessment lien

The City of Grand Rapids installed a new water main on Oak Street. The city then decided to charge the property owners along Oak Street a proportional cost of the new water main. If a property owner refuses to pay their proportional share of the cost, the city may file a(n):

assessment lien.

The source from which property tax revenue can be obtained is the value of the total tax ____ less the value of property that is ____ from property taxes.

base. exempt.

the amount of revenue that a jurisdiction must raise from property taxes is the difference between its total ____ and its revenues from _____ sources

budget & other

The amount of revenue that a jurisdiction must raise from property taxes is the difference between its total ____ and its revenues from ____ sources.

budget. other (or nontax).

Real estate consists of the physical structures and infrastructure that accompany the land. All of the following are examples of an improvement TO the land except: -walkways -building -sewer system -streets

building

Real estate consists of the physical structures and infrastructure that accompany the land. All of the following are examples of an improvement to the land EXCEPT: -walkways. -building. -sewer system. -streets.

building

Real estate consists of the physical structures and infrastructure that accompany the land. All of the following are examples of an improvement to the land except

building

Three forms of conventional land use controls are

building codes, zoning, and subdivisons

Three types of traditional land use controls are:

building codes. zoning. subdivision regulations.

Three forms of traditional land use controls are ____ ____ , ____ , and ____ regulations.

building codes. zoning. subdivision.

Three forms of traditional land use controls are _____ _____, _____, and _____ regulations.

building regulations, zoning, subdivision

The most recent approach to zoning, form-based zoning, creates a map by segregation of:

building shapes.

Standard features of traditional zoning include

bulk limits for buildings. minimum lot dimensions. provision for special use districts.

The fundamental requirement for a land description is to be Multiple choice question. a. universally applicable. b. practical and inexpensive. c. permanently unambiguous. d. simple.

c. permanently unambiguous.

Important difference between a tenancy for years and a periodic tenancy is the periodic tenancy

can be oral and the tenancy for years cannot

An important difference between a tenancy for years and a periodic tenancy is the periodic tenancy

can be oral and the tenancy for years cannot.

Covenants in a deed assure that the grantor

can be sued for failing to deliver good title

Covenants in a deed assure that the grantor -can be sued for failing to deliver good title. -will take the property back in case of title problems. -will inform the grantor of any doubt about good title. -will deliver good title.

can be sued for failing to deliver good title.

Covenants in a deed assure that the grantor Multiple choice question. a. will inform the grantor of any doubt about good title. b. can be sued for failing to deliver good title. c. will deliver good title. d. will take the property back in case of title problems.

can be sued for failing to deliver good title.

Exceptions and Reservations Clause

can contain a wide variety of limits on the property interest conveyed. This clause may contain any "deed restriction" the grantor wishes to impose on the use of the property.

Under the doctrine of constructive notice, if people ___________ a claim it is enforceable. -are aware of -have a written copy of -can learn about -have read or heard about

can learn about

Easement by Estoppel

can occur if a landowner gives an adjacent landowner permission to rely on sewer access or drainage across his or her land. Courts may subsequently enforce that claim against the landowner (estop any attempt to deny access), or against subsequent purchasers of the burdened land, acting on behalf of the benefiting (dominant) parcel.

Real estate values derive from the interaction of three different sectors in the economy. Which of the following sectors serves to allocate financial resources among households and firms requiring funds?

capital market

The required rate of return that an individual demands on a real estate investment is determined in the:

capital market

The required rate of return that an individual demands on real estate investment is determined in the:

capital market

The required rate of return that an individual demands on a real estate investment is determined in the

capital market.

Considered a fundamental pricing metric in commercial real estate markets, the ratio of a property's annual net income to its market value is more commonly referred to as a(n):

capitalization rate

Considered a fundamental pricing metric in commercial real estate markets, the ratio of a property's annual net income to its market value is more commonly referred to as a(n): A. Appreciation rate B. Capitalization rate C. Discount rate D. Internal rate of return

capitalization rate

Considered a fundamental pricing metric in commercial real estate markets, the ratio of a property's annual net income to its market value is more commonly referred to as a(n)

capitalization rate.

Generally, higher property taxes on a property tend to lower its value, while more resulting community services for the property tend to increase its value. In short, the effects of the property tax are captured or ____ into the value of a property.

capitalized (or built)

In creating evidence of title, a title search attempts to identify the sequence of conveyances passing ownership down through time. This sequence is more commonly referred to as the:

chain of title

quitclaim deed commonly would be used for

clearing a conflicting claim to title & adding a spouse to a property title

for a deed, identify the requirements of a grantee

clearly identifiable

Capital markets can be divided into two broad categories: equity interests and debt interests. Equity investors in real estate expect to earn a return on their investment through the

collection of rent and price appreciation.

Capital markets can be divided into two broad categories: equity interests and debt interests. Equity investors in real estate expect to earn a return on their investment through the

collection of rent and property appreciation

Property rights can be divided into two classes, real and personal. Which of the following is an example of real property?

commercial building

Property rights can be divided into two classes, real and personal. Which of the following is an example of real property? -vehicles -stocks and bonds -patents -commercial building

commercial building

An example of a real estate asset that trades in the public debt market is:

commercial mortgage backed securities (CMBS)

An example of a real estate asset that trades in the public debt market is

commercial mortgage backed securities (CMBS).

An example of a real estate asset that trades in the public debt market is:

commercial mortgage backed securities (CMBS).

land

commonly referred to refer to a parcel that does not include any structures by may include improvements to the land

Property rights created from marriage have a clear implication for real estate transactions. Which of the following marital property rights gives a spouse a one-half claim on all property acquired "from the fruits of the marriage"?

community property

Property rights created from marriage have a clear implication for real estate transactions. Which of the following marital property rights gives a spouse a one-half claim on all property acquired "from the fruits of the marriage?"

community property

Forms of automatic marital co-ownership include

community property, elective share, dower/curtesy

Which of these is not a requirement of a valid deed?

competent grantee

Improvements to the land

components necessary to make the land suitable for building construction or other uses. These improvements are often referred to as infrastructure and consist of the streets, walkways, storm water drainage systems, and other systems such as water, sewer, electric, and telephone utilities that may be required for land use.

An aggressive planning concept to control the location of development, limits development until a minimum standard of public services and infrastructure is in place, provided by the land developers. This is referred as a ______ requirement.

concurrency

An aggressive planning concept to control the location of development, limits development until a minimum standard of public services and infrastructure is in place, provided by the land developers. This is referred as a ______ requirement. -shared -controlling -concurrency -matching

concurrency

The legal procedure through which eminent domain is exercised is called ____.

condemnation

The legal procedure through which eminent domain is exercised is called _____.

condemnation

Eminent domain is the right of government to acquire private land, without the owner's consent, for public use, with due process and just compensation. The legal procedure for exercising the right of eminent domain is referred to as:

condemnation.

Requirements to create a joint tenancy are quite restrictive. They require the presence of the "four unities," which include all of the following EXCEPT:

condition

Requirements to create a joint tenancy are quite restrictive. They require the presence of the "four unities," which include all of the following except -condition -title -interest -possession

condition

The habendum clause defines or limits the type of interest being conveyed. The legal tradition recognizes certain words and phrases as signals of various real property interests. For example, the use of the phrase, "as long as," can communicate which of the following types of interests?

conditional fee with reverter

Which of the following types of direct co-ownership combines single person ownership with tenancy in common?

condominium

A deed is a special form of _____ to convey a the exact property interest.

contract

A deed is a special form of ____ to convey a the exact property interest

contract They are a special form of contract, distinguished by a group of clauses that determine the exact property interest being conveyed. Deeds vary in "quality" by the strength of covenants (i.e., promises) they contain. Under some circumstances, however, property can transfer to a new owner without a deed and even with no explicit document at all.

Which of the following forms of co-ownership, historically used for apartment buildings, is not considered a form of true direct co-ownership but rather qualifies as a proprietary corporation?

cooperative

The primary document used to convey permanent interests in real property is a : Multiple choice question. a. deed b. sales contract c. lease d. mortgage

deed

Aspects of subdivision regulations include requirements for

coordination of streets with surrounding subdivisions, adequate quality of streets, adequate provision of water and sewers

According to the data presented in the text, the largest asset class in terms of estimated market value is: -corporate equities (stocks) -U.S. Treasury securities -real estate (including housing) -mortgage debt

corporate equities (stocks)

Entities of indirect ownership by multiple owners include the

corporation, general partnership, limited partnership

The quality of deeds differs based on the types of covenants they include. The special warranty deed is identical to the general warranty deed in all ways EXCEPT its conveyance of which of the following covenants?

covenant against encumbrances

Which of the following covenants in a deed promises that the property is not burdened by liens, easements or other limitations, except as noted in the deed?

covenant against encumbrances

Which of the following covenants in a deed promises that the property will not be claimed by someone with a better claim to title?

covenant of quiet enjoyment

The covenants in a deed are the most important differences among types of deeds. Which of the following covenants promises that the grantor truly has good title and the right to convey it?

covenant of seizin

the covenant in a deed that promises the grantor actually holds title is the

covenant of seizin

The covenant in a deed that promises the grantor actually holds title is the: Multiple choice question. a. covenant of seizin. b. covenant of ownership. c. covenant of no encumbrances. d. covenant of quiet enjoyment.

covenant of seizin.

Features of elective share include:

covers both real and personal property, commonly give the surviving spouse a 30% share, must be explicitly chosen with a certain time after death of the spouse

Competition for the currently available supply of locations and space, coupled with the existing supply of leasable space, determines the

current level of rental rates for each submarket and property.

Based on your understanding of the rules for determining when an object becomes a fixture, which of the following items would most likely be considered a fixture at the time of sale?

custom (built in) bookshelves

In determining whether an object is a fixture, a major rule used by courts in recent times is "intention of the parties." This rule considers: -the intention of the current owner -customary practice -the intention of the buyer -persuasiveness of the two parties

customary practice

A titled interest (rather than an easement) in real property can be conveyed intentionally, but without a deed, through

dedication

A titled interest (rather than an easement) in real property can be conveyed intentionally, but without a deed, through Multiple choice question. a. necessity. b. estoppel. c. prior use. d. dedication.

dedication

In a title search examining public records, which of these is most likely to be discovered? Multiple choice question. a. Easement by estoppel b. Dedication c. Implied easement d. Easement by necessity

dedication

When entities such as roadways and utilities in subdivisions become the property and responsibility of the local government to maintain, this process is more commonly referred to as:

dedication

The primary document used to convey permanent interests in real property is a

deed

The primary document used to convey permanent interests in real property is a -sales contract -deed -mortgage -lease

deed

Under the Statute of Frauds, which of these must be in writing to be enforceable? Multiple choice question. a. Deed b. Monthly lease c. Contract to buy a car d. Contract for moving services

deed

quitclaim deed

deed that conveys an individuals property rights to another but has none of the covenants of the warranty deed

In considering the acquisition of real property, it is important to remember that certain factors may limit ownership rights. Which of the following is an example of a situation in which ownership rights can be fully removed from the property?

defaulted lien

In considering the acquisition of real property, it is important to remember that certain factors may limit ownership rights. Which of the following is an example of a situation in which ownership rights can be fully removed from the property? -land use controls -leasehold interests -home owner association (HOA) bylaws -defaulted lien

defaulted lien

Marketable title Laws

define a "root of title," as the last conveyance of the property that is at least a certain number of years old. Can cause restrictions or easements in deeds from before the root of title to disappear. Generally restrict required title search to the years following of title.

In order for a deed to be a valid conveyance of property, there must be an observable, verifiable transfer of the deed to the grantee. Typically this is accomplished when the grantor hands the deed to the grantee at closing. Which of the following basic requirements of a deed does this represent?

delivery

The priority of a condominium association lien

depends on state laws

property markets

determine the required property-specific investment returns, property values, capitalization rates, and construction feasibility

According to the Department of Agriculture, which of the following land types constitutes the lowest percentage of land use in the United States?

developed land

If we desire to classify land by its use, land that consists of residential, industrial, commercial, and institutional land uses would be classified as:

developed land

dedication

developer conveys street right-of-way and parks, ponds, etc.

At the death of a property owner, property will convey either in accordance with a will or without a will. If a will dictates the distribution of the decedent's real property, the property is said to be:

devised

The expected stream of rental income is capitalized into value by converting expected future cash flows into present value through a process called

discounting

The expected stream of rental income is capitalized into value by converting expected future cash flows into present value through a process called:

discounting

The process of converting expected future cash flows into present value is called ______. -compounding -investing -discounting

discounting

Real estate can be viewed as a bundle of rights. How these bundles of rights are grouped together determines the type of ownership interest an individual (or group of individuals) can stake claim to. In an ordinary life estate with remainder interests, which of the following rights is detached from the traditional bundle of rights that typically defines a fee simple absolute interest?

disposition

Easements vary greatly in the extent of ______ that they impose on the encumbered land.

disruption

Easements vary greatly in the extent of ______ that they impose on the encumbered land. -duration -legal standing -disruption

disruption

In contrast to property taxes, which are based on property value, special assessments are based more on equally _____ the total cost of improvements.

distributing

Once a document conveying an interest in real property is placed in the public records it is binding on the public, whether or not they make an effort to learn of it. Based on the common law tradition, this policy is known as the:

doctrine of constructive notice

When identifying an easement appurtenant, the parcel of land that benefits from the right to use the land in question is referred to as the:

dominant parcel

An ancient common law concept

dower/curtesy

In contrast to ownership of property by a corporation, in tenancy in common

each owner can separately mortgage or sell their portion of the property. every owner holds the same actual real property interest rather than shares in an owner entity. all co-owners are mutually liable for any liens on the property.

All of the following are modes of conveying real property involuntarily without a deed EXCEPT: -title by adverse possession. -easement by estoppel. -action of water. -easement by prescription.

easement by estoppel

While the vast majority of conveyances of real property are private grants through a deed, there are multiple ways in which voluntary conveyance can occur without a deed. Which of the following types of easements can occur if a landowner gives an adjacent landowner permission to depend on her land? (E.g. A landowner may give a neighbor permission to rely on sewer access or drainage across his or her land.)

easement by estoppel

Jeff owns 150 acres between a highway and a public beach. The state would like to build a road directly from the highway to the beach across a number of beach front properties including Jeff's. The space for this road would be considered a(n):

easement in gross

Jeff owns 150 acres between a highway and a public beach. The state would like to build a road directly from the highway to the beach across a number of beach front properties including Jeff's. The space for this road would be considered a(n): -implied easement. -easement in gross. -negative easement appurtenant. -positive easement appurtenant.

easement in gross

Jeff owns 150 acres between a highway and a public beach. The state would like to build a road directly from the highway to the beach across a number of beachfront properties including Jeff's. The space for this road would be considered a(n)

easement in gross

Since an easement is a non-possessory interest, it is important to understand the right of disposition that is associated with it. In which of the following types of easements is the right of disposition claimed as part of the easement?

easement in gross

Since an easement is a non-possessory interest, it is important to understand the right of disposition that is associated with it. In which of the following types of easements is the right of disposition claimed as part of the easement? -implied easement -easement in gross -negative easement appurtenant -positive easement appurtenant

easement in gross

Since an easement is a nonpossessory interest, it is important to understand the right of disposition that is associated with it. In which of the following types of easements is the right of disposition claimed as part of the easement?

easement in gross

When a landowner subdivides land in a way that causes a parcel to be landlocked, it is possible for property to be voluntarily conveyed without a deed. If the landlocked parcel has no prior path of access, which of the following types of easements will automatically be created to make the land useful?

easement of necessity

When a landowner subdivides land in a way that causes a parcel to be landlocked, it is possible for property to be voluntarily conveyed without a deed. If the landlocked parcel has no prior path of access, which of the following types of easements will automatically be created to make the land useful? -easement by prior use -easement of necessity -easement by estoppel -dedication

easement of necessity

Attractions of the property tax for local governments include that it is

easy to collect or enforce. steady or reliable.

The planning or zoning commission is appointed as an advisory board by the

elected governing body

The planning or zoning commission is appointed as an advisory board by the -elected governing body -local court -community referendum -state government officials

elected governing body

The authority for approving site plans for local projects ultimately rests with the:

elected governing commission or council

A modern statutorial creation

elective share

Provides for a fee simple interest

elective share

The right of government to acquire private property, without the owner's consent, for public use in exchange for just compensation is referred to as:

eminent domain

Statue of Frauds

enacting a law requiring any contract conveying a real property interest to be in writing. Thus, deeds, leases with a term of more than one year, and mortgages must be in writing to be enforceable.

An example of a real estate asset that trades in the public equity market is:

equity reits

Property rights can be dismantled into lesser bundles, referred to as interests, which can then be held by different individuals. Interests in real property that include possessions are referred to as:

estates

Consider the following excerpt from a sample deed: "The Seller is lawfully seized in fee simple of the above described property, less and except a prior reservation of all oil, gas and mineral rights in the property conveyed." The underlined portion of the preceding statement represents which of the following basic requirements of a deed?

exceptions and reservations clause

Zoning ordinances that tend to exclude lower income groups by large lot size, or that do not adequately provide low- and moderate-income housing are referred to as: -special uses. -nonconforming uses. -conforming uses. -exclusionary uses.

exclusionary uses

Zoning ordinances that tend to exclude lower income groups by large lot size, or that do not adequately provide low- and moderate-income housing are referred to as:

exclusionary uses.

To derive taxable value of a property from assessed value, subtract any applicable

exemptions

To derive taxable value of a property from assessed value, subtract any applicable _____.

exemptions

A developer plans to place a subdivision slightly outside the city limits in an area that is rapidly developing. However, the city claims to have the right to control urban development even in the proposed area. The right the city is attempting to invoke is referred to as:

extraterritorial jurisdiction.

True or false: Careers in real estate are limited primarily to brokerage and leasing.

false

True or false: The activities of federal, state, and local governments have little need for the services of real estate professionals.

false

True or false: developers normally regard the site plan review process as a friendly and predictable procedure.

false

Real property, by definition includes rights in _____ and its _____ _____.

land, permanent, structures

When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements. Improvements ON the land include: -fences -walkways -sewer systems -streets

fences

When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements. Improvements on the land include:

fences

When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements. Improvements on the land include

fences.

Which of these modes of title conveyance is most likely to cause conflicts or "clouds" to title? Multiple choice question. a. Condemnation b. Patent c. Probate d. Divorce settlement e. Foreclosure

foreclosure

failure to pay property taxes

foreclosure

Foreclosure

foreclosure can be either judicial or power of sale (nonjudicial). In both cases the foreclosed property, with few exceptions, is disposed of by public sale.5 In judicial foreclosure, however, the process is administered by a court

Which of these terms best characterizes the meaning of personal rights? -Influence -Opportunity -Wealth -Status -Freedom

freedom

The manager of a shopping mall ejecting a religious group handing out free snacks and pamphlets in the mall could represent a conflict of property rights with: -freedom of expression by the group -taking the group's property without compensation -property rights of customers -rights of customers to associate

freedom of expression by the group

Features of the "revolution in land use controls" included a shift

from little interest in land use controls to broadly requiring land use controls, from a perception of unlimited space and environment to a concept of "spaceship earth

Features of the "revolution in land use controls" included a shift

from little interest in land use controls to broadly requiring land use controls. from a perception of unlimited space and environment to a concept of "spaceship earth".

Dower

gave a wife a one-third life estate in all of the real property of a decedent husband that was ever owned by him during the marriage, provided that the wife did not join in conveying the property to a new owner.

Although deeds can only deliver what a grantor actually owns, they can still vary in "quality." Which of the following types of deeds is considered to be the "highest quality" because it contains the full set of legal promises the grantor can make?

general warranty deed

Consider the following excerpt from a sample deed: "The Seller covenants with The Buyer that it has a good right to convey, that the property is free from all encumbrances, and that it forever warrants to defend all of the property so granted to The Buyer against every person lawfully claiming the same." Based on your understanding of the relation between a deed's covenants and the type of deed being conveyed, which type of deed is being conveyed in the statement above?

general warranty deed

Characteristics of building codes include

generally are regional rather than strictly local, address safety, health and sanitation, continue to change with changing technology

Dower

gives widow automatic 1/3 in life estate in real property ever owned by deceased husband in the marriage

Initially used to survey the Old Northwest Territory (Ohio, Indiana, Illinois, and Michigan) in 1789, which of the following methods of land description relies on townships and section numbers as essential units of identification?

government rectangular survey

Initially used to survey the Old Northwest Territory (Ohio, Indiana, Illinois, and Michigan) in 1789, which of the following methods of land description relies on townships and section numbers as essential units of identification? -metes and bounds -subdivision plat lot and block number -government rectangular survey

government rectangular survey

Initially used to survey the Old Northwest Territory (Ohio, Indiana, Illinois, and Michigan) in 1789, which of the following methods of land description relies on townships and section numbers as essential units of identification? A. metes and bounds B. subdivision plat lot and block number C. government rectangular survey D. tax parcel number

government rectangular survey

In a deed, the person or entity conveying the real property interest is more commonly referred to as the:

grantor

An example of conflicting notions of best practice in urban planning is

grid street patterns vs cul-de-sac streets, uniform residential densities vs mixed residential densities

Consider the following excerpt from a sample deed: "The Seller, for itself and its heirs, hereby covenants with the Buyer, its heirs and assigns forever, that the Seller is lawfully seized in fee simple of the above described property." The underlined portion of the preceding statement represents which of the following basic requirements of a deed?

habendum clause

Which of the following clauses contained in a deed defines or limits the type of interest being conveyed?

habendum clause

Which of the following clauses contained in a deed defines or limits the type of interest being conveyed? -recital of consideration -words of conveyance -covenant -habendum clause

habendum clause

Deed of Bargain and Sale

has none of the covenants of a warranty deed. But unlike the quitclaim deed, it purports to convey the real property and appears to imply claim to ownership. It commonly is used by businesses to convey property because, while implying ownership, it commits the business to no additional covenants, which are sources of liability.

Quitclaim Deed

has none of the covenants of the warranty deed. Also, its words of conveyance read something like "I ... hereby quitclaim. ..." as opposed to "I ... hereby grant or convey ..." Thus, a quitclaim deed is worded to imply no claim to title, only to convey what interest the grantor actually has, if any One use of a quitclaim deed is within a family, to add a spouse to title or remove a divorcing spouse. Another use is to extinguish ambiguous interests in a property as a means of removing clouds or threats to a marketable title

The general warranty deed is considered the highest quality deed because it

has the most covenants

The general warranty deed is considered the highest quality deed because it -is the only deed that can convey title. -has the most covenants. -is the only deed that always conveys good title. -affirms that the grantor is financially sound.

has the most covenants.

Easement appurtenant

have two distinguishing features. First, the easement appurtenant involves a relationship between two adjacent parcels of land. The dominant parcel benefits from the easement while the servient parcel is constrained or diminished by the easement. Second, the easement appurtenant "runs with the land"; that is, it becomes a permanent and inseparable feature of both parcels involved.

acknowledgement

having the grantor's signature notarized

Each property has unique features, whether it is its age, the building design of its structures, or its location. As such, real estate markets consist of assets that are considered

heterogeneous

Each property has unique features, whether it is its age, the building design of its structures, or its location. As such, real estate markets consist of assets that are considered:

heterogeneous

condemnation proceedings

highest & best

In condemnation proceedings for eminent domain the amount of compensation to the owner must be based on _____ and _____ use of the property at the time it is condemned.

highest, best

In condemnation proceedings for eminent domain the amount of compensation to the owner must be based on ____ and ____ use of the property at the time it is condemned.

highest. best.

Equity investors can choose to participate indirectly in real estate markets by purchasing shares in publicly traded real estate companies. In doing so, investors benefit from all of the following except: -low transaction costs -risk sharing amongst investors -highly segmented markets -high information efficiency

highly segmented markets

Equity investors can choose to participate indirectly in real estate markets by purchasing shares in publicly traded real estate companies. In doing so, investors benefit from all of the following EXCEPT: -low transaction costs. -risk sharing amongst investors. -highly segmented markets. -decrease if current property values equal the cost of construction.

highly segmented markets.

Equity investors can choose to participate indirectly in real estate markets by purchasing shares in publicly traded real estate companies. In doing so, investors benefit from all of the following except

highly segmented markets.

The largest partial exemption for property taxes is the ____ exemption.

homestead

The largest partial exemption for property taxes is the _____ exemption.

homestead

the largest partial exemption for property taxes is the ______ exemption

homestead

In the state of Florida, for example, homeowners may qualify for a tax exemption in which up to $50,000 will be deducted from the assessed value of the property before taxes are calculated as long as the property owner occupies a home as the family's principal residence and has claimed residency within the state. This exemption is better known as the:

homestead exemption.

According to the Federal Reserve Bank, ______ represents the largest percentage of the net worth portfolio of a typical U.S. household. -housing -stocks -corporate and foreign bonds -U.S. Treasury securities

housing

As of 2015, the single largest asset category in the net worth portfolios of households is

housing

As of 2018, the single largest asset category in the net worth portfolios of households is:

housing

In 2015, the largest single asset category in the net worth portfolios of households is:

housing

according to the federal reserve bank, _____ represents the largest percentage of the net worth portfolio of a typical U.S. household

housing

study

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study

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Negative externalities can diminish a property's value by imposing costs on the community at large. In order to offset this detrimental impact, economists advocate "internalizing" these externalities by implementing:

impact fees

If a landowner sells the front part of a parcel of land, retaining the back portion as a "land-locked" parcel, and if there is an existing informal path across the front parcel to the back one, the seller is likely to retain the path as a (an):

implied easement by prior use

Examples of market failure due to incomplete information about construction quality include

inability to examine plumbing under a concrete slab floor. non-visible electrical systems once walls are closed in.

An example of incomplete construction information contributing to market failure is

inability to examine roof nails for wind resistance once a roof is complete -need for expert knowledge about safety requirements

The national government can have a significant impact on the value of real estate through:

income tax policy

The national government can have a significant impact on the value of real estate through: -property tax policy -income tax policy -building codes -real estate licensing requirements

income tax policy

The national government can have a significant impact on the value of real estate through

income tax policy.

Based on your understanding of the supply and demand dynamics of user/space markets, an increase in demand for leasable space would, all else equal, cause which of the following effects?

increase equilibrium rental rates and increase property value

Based on your understanding of the supply and demand dynamics of user/space markets, an increase in demand for leasable space would, all else equal, cause which of the following effects? -decrease equilibrium rental rates and decrease property value -decrease equilibrium rental rates and increase property value -increase equilibrium rental rates and decrease property value -increase equilibrium rental rates and increase property value

increase equilibrium rental rates and increase property value

A primary determinant of the feasibility of new construction is the relationship between the current level of property prices and the cost of new construction. We would expect the supply of properties to

increase if current property values are greater than the cost of construction

A primary determinant of the feasibility of new construction is the relationship between the current level of property prices and the cost of new construction. We would expect the supply of properties to

increase if current property values are greater than the cost of construction.

A primary determinant of the feasibility of new construction is the relationship between the current level of property prices and the cost of new construction. We would expect the supply of properties to:

increase if current property values are greater than the cost of construction.

The investment grade property market is typically targeted by all of the following groups of investors except: -pension funds -individual investors -listed equity REITs -real estate private equity funds

individual investors

The investment-grade property market is typically targeted by all of the following groups of investors except

individual investors.

Proposed changes in a zoning ordinance must

initially be presented to a planning or zoning commission. go before the elected officials for final judgment or ratification.

A fixture is an object that formerly was personal property but has become real property. Of the following four rules for determining whether an object has become a fixture, which is the most dominant (i.e. if there is a conflict, which rule prevails)?

intention of the parties

A fixture is an object that formerly was personal property but has become real property. Of the following four rules for determining whether an object has become a fixture, which is the most dominant (i.e., if there is a conflict, which rule prevails)?

intention of the parties

encroachments

intrusions on the property by structures from adjacent land

Encroachments

intrusions on the property by structures from adjacent land.

If government activity or government restrictions reduce the value of a private property sufficiently, it is possible for the property owner to sue the government to force the government to acquire the property through eminent domain. This process is known as _____ _____.

inverse condemnation

government activity or government restrictions

inverse condemnation

in government activity or government restrictions

inverse condemnation

Consistency the investment target of pension funds, publicly traded real estate companies, and real estate funds, large commercial properties valued well over $10 million are often referred to as:

investment-grade property

Consistently the investment target of pension funds, publicly traded real estate companies, and real estate funds, large commercial properties valued well over $10 million are often referred to as:

investment-grade property

Consistently the investment target of pension funds, publicly traded real estate companies, and real estate funds, large commercial properties valued well over $10 million are often referred to as

investment-grade property.

Consistently the investment target of pension funds, publicly traded real estate companies, and real estate funds, large commercial properties valued well over $10 million are often referred to as: -segmented property. -investment-grade property. -speculative-grade property. -immobile property.

investment-grade property.

A fee simple absolute differs from a tenancy for years in that it

is an ownership interest, is indefinite in length, has the right of disposition.

Special Warranty Deed

is identical to the general warranty deed, except that it limits the time of the grantor's warranties to her time of ownership.

Implied Easements

is not created by an explicit deed or an explicit clause in a deed. It often is created when a subdivision map is placed in the public records. On the map will be utility easements and possibly easements of access such as bike paths or footpaths that do not appear in any specific deed.

Judicial Deeds and Trustee's Deeds

is one issued as a result of court-ordered proceedings. It may include deeds issued by administrators of condemnation proceedings or administrators of foreclosure sales. Trustee: is issued by the trustee in a court-supervised disposition of property—for example, by an executor and administrator of an estate, a guardian of a minor, a bankruptcy trustee, or an attorney in divorce proceedings.

Ownership by tenancy in common, compared to a corporation

is real property rather than personal property. Often arises as a default form of co-ownership.

Tenancy in common

is the "normal" form of direct co-ownership and is as close to the fee simple absolute estate as is possible. Each co-owner retains full rights of disposition and is free to mortgage, or to convey his or her ownership share to a new owner (in whole or in part), who receives exactly the same set of shared rights. Under U.S. income tax law (Internal Revenue code), investors can reduce the effect of income taxation by exchanging rather than selling an investment property outright. Tenancy in common can enable multiple investors to exchange into a large investment property thereby making exchange more feasible. The default form of co-tenancy, virtually like individual ownership.

form-based zoning

is the most recent alternative to conventional zoning, replaces zoning by land use with zoning by development configuration or character

Easement in gross

is the right to use land for a specific, limited purpose unrelated to any adjacent parcel. (Commercial easements)

The description of land by subdivision plat lot and block number -rarely has useful information for a property buyer other than the parcel boundaries. -cannot be use outside of cities. -is applicable to all urban property. -is the simplest form of description for most property owners to interpret.

is the simplest form of description for most property owners to interpret.

The description of land by subdivision plat lot and block number Multiple choice question. a. rarely has useful information for a property buyer other than the parcel boundaries. b. is applicable to all urban property. c. cannot be use outside of cities. d. is the simplest form of description for most property owners to interpret.

is the simplest form of description for most property owners to interpret.

The description of land by subdivision play lot and block number

is the simplest form of description for most property owners to interpret.

Acknowledgement

is to confirm that the deed is, in fact, the intention and action of the grantor. It is accomplished by having the grantor's signature notarized, or the equivalent.

The main economic problem with uneven assessment for property taxes is

it arbitrarily shifts the tax burden onto properties with high assessments

Characteristics of time-share or interval ownership include that

it commonly is divided into weekly units. it is mostly associated with resort properties. it may amount to a condominium interest, a leasehold, or a license.

Problems with dower/curtesy include taht

it creates a life estate, a troublesome form of ownership in most cases. It omits stocks, bonds and other non-real estate wealth.

Public land use planning may have a weak foundation because

it has relatively very short history and base of experience, the notions of "best practice" are unsettled and changing

Characteristics of dower/curtesy include that

it includes all real estate ever owned by the decedent spouse during the marriage. it creates a life estate for the surviving spouse. dower is the provision for a surviving wife and curtesy is the provision for a surviving husband.

True features of dower/curtesy are:

it is of common law, English heritage

True features of dower/curtesy are: -it prevails in about 25 states of the US -it is regarded as the fairest form among spousal property claims -it is of common law, English heritage -additional states have adopted it in modern times

it is of common law, English heritage

True statements about the legality of zoning include

it must provide for a range of housing types and income levels, it was uphled as a use of police power by the USSC in Euclid v. Ambler Realty, 1922, it must be based on a comprehensive plan

Bill and Mike go in together to purchase 342 acres of land to use for hunting and family vacations. Ten years later, Bill dies and Bill's wife wants to sell his half of the land. Mike informs her that, unfortunately, she has no claim to the land and that upon Bill's death, his ownership interest transferred to Mike. What type of co-ownership did Bill and Mike have?

joint tenancy

In condemnation, the amount of compensation that restores the property owner to a financial position equivalent to that existing before the property was taken is called ____ compensation.

just

In condemnation, the amount of compensation that restores the property owner to a financial position equivalent to that existing before the property was taken is called _____ compensation.

just

in condemnation, the amount of compensation that restores the property owner to a financial position equivalent to that existing before the property was taken is called

just

Which of the following would be considered a tangible asset?

land

Which of the following would be considered a tangible asset? -land -lease agreement -mortgage -listed REIT

land

When most people are describing "real estate," they are describing -land and buildings -the industry and people involved in buying and selling real estate -the bundle of rights associated with the ownership of land and buildings

land and buildings

In recent decades a "revolution" has occurred in residential leasehold law. This happened in recognition that the modern urban residential landlord is providing "residential shelter services" rather than simply the use of

land for farming

In recent decades a "revolution" has occurred in residential leasehold law. This happened in recognition that the modern urban residential landlord is providing "residential shelter services" rather than simply the use of -land for farming. -buildings. -secure space.

land for farming

raw land

land that does not include structures or any improvements

Real property, by definition includes rights in ___ and its ____ ____.

land, permanent structures.

A type of land use that has often been viewed as a threat to destabilize a single family, owner oriented neighborhood is

large numbers of student rental households in the neighborhood

A type of land use that has often been viewed as a threat to destabilize a single family, owner oriented neighborhood is -large numbers of households with children in the neighborhood -any type of renter household in the neighborhood -large numbers of senior households in the neighborhood -large numbers of student rental households in the neighborhood

large numbers of student rental households in the neighborhood

A type of land use that has often been viewed as a threat to destabilize a single family, owner oriented neighborhood is

large numbers of student rental households in the neighborhood the presence of apartments or commercial activity in the neighborhood

In some states, mining companies are deemed to own not only the minerals but also the space the minerals occupied before they were removed, thereby earning the distinction of ownership states. However, when the owner of an oil or gas well is able to claim all that is pumped from it, regardless of whether the oil or gas migrated from adjacent property, this is referred to as a _____________ state.

law of capture

Toxic substances that have posed problems to property owners in the last two decades include:

leaking underground storage tanks. radon. mold. asbestos.

Nonpossessory interests (i.e., bundles of real property rights that do not include possession) include all of the following except -easements -restrictive covenants -leasehold interests -liens

leasehold interests

Under the Statute of Frauds which of these must be in writing to be enforceable? Multiple select question. - Property management contract - Monthly rental agreement - Ten-year lease - Mortgage

leases longer than a year, mortgages

covenants

legally binding promises for which the grantor becomes liable

The size of a single family residential lot is typically:

less than one acre

The size of a single family residential lot is typically:

less than one acre.

The size of a single-family residential lot is typically

less than one acre.

The governing association of a condominium can do which of the following to its owners?

levy assessments, Set and enforce rules, impose liens

A lien is an interest in real property that serves as security for an obligation. Which of the following is an example of a general lien?

lien arising from a court judgment unrelated to ownership of the property

In which of these freehold estates has the right of disposition been separated from the other rights? -Tenancy for years -Fee simple absolute -Fee simple conditional -Life estate

life estate

_____ Government generally has the largest influence on local real estate markets

local

_____ government generally has the largest influence on local real estate markets - federal - local - state

local

______ government generally has the largest influence on local real estate markets. -Federal -State -Local

local

Primarily through land use controls and property tax policy, which of the following branches of government has the largest influence on real estate values?

local government

major reason for subdivision regulations is that usually the responsibility for maintaining streets and sewers eventually falls to

local government

The first, and historically the most challenging step in a metes and bounds description is -locating the point of beginning. -conducting accurate ground measures of distance. -finding true North. -accurately recording the measures.

locating the point of beginning.

The first, and historically the most challenging step in metes and bounds description is

locating the point of beginning.

the first, and historically the most challenging step in a metes and bounds description is

locating the point of the beginning

Especially in terms of retail properties, which of the following attributes is considered the most likely to result in drastic value difference between otherwise similar properties?

location attributes

Especially in terms of retail properties, which of the following attributes is considered the most likely to result in drastic value differences between otherwise similar properties?

location attributes

`Especially in terms of retail properties, which of the following attributes is considered the most likely to result in drastic value differences between otherwise similar properties?

location attributes

In efficient financial markets, unregulated competitive bidding should bring about the most productive use of an asset and the price paid for that asset should reflect fair value based on its usefulness. In real estate, this is not always the case. For example, there is no substitute for certain pieces of land which gives the owner a bargaining advantage in determining the value of the land. This feature of real estate markets is commonly referred to as:

location monopoly

Each parcel of real estate has its own "LVS," which stands for ___ ___ ___.

location value signature

each parcel of real estate has its own "LVS," which stands for _____ _____ _____

location value signature

The attributes (characteristics) of housing most difficult to value are -the physical attributes of the structure -locational attributes -the physical attributes of the land

locational attributes

The attributes (characteristics)of housing most difficult to value are

locational attributes of the land

Investors in real estate can choose to hold properties directly in the private market or indirectly through publicly traded real estate securities. The market for buying selling, and leasing real estate can be characterized by all of the following EXCEPT: A. localized markets B. highly segmented markets C. privately negotiated contracts D. low transaction costs

low transaction costs

Investors in real estate can choose to hold properties directly in the private market or indirectly through publicly traded real estate securities. The market for buying, selling, and leasing real estate can be characterized by all of the following EXCEPT: -localized markets. -highly segmented markets. -privately negotiated contracts. -low transaction costs.

low transaction costs

Investors in real estate can choose to hold properties directly in the private market or indirectly through publicly traded real estate securities. The market for buying, selling, and leasing real estate can be characterized by all of the following except

low transaction costs.

In most states, the computation property value must derive from ________ value

market

An ad valorem tax is levied at rates between 1.0 and 4.0 percent of a property's ____ ____.

market value

An ad valorem tax is levied at rates between 1.0 and 4.0 percent of a property's _____ _____.

market value

An ad valorem tax is levied at rates between 1.0 and 4.0 percent of a property's tax

market value

Recognizing that only recent conveyances alter the status of title, states have established laws that set limits on how far back a title search must go. These laws are commonly referred to as:

marketable title laws

Recognizing that only recent conveyances alter the status of title, states have established laws that set limits on how far back a title search must go. These laws are commonly referred to as: A. Statute of Frauds B. recording statutes C. encroachments D. marketable title laws

marketable title laws

Which of these events can affect the chain of title for real estate?

marriages, foreclosures, estate settlements, deeds,

meets and bounds

measurements and the identifiable boundaries of surrounding parcels of land

Following the completion of a contract for construction or other improvements to a property, a contractor has the right to establish a lien on a property as protection against the case that a property owner defaults on the construction contract. This lien is more commonly referred to as a(n):

mechanics lein

Following the completion of a contract for construction or other improvements to a property, a contractor has the right to establish a lien on a property as protection against the case that a property owner defaults on the construction contract. This lien is more commonly referred to as a(n): -property tax lien. -mortgage lien. -assessment lien. -mechanics' lien.

mechanics' lien

The most flexible method of land description, capable of describing even the most irregular of parcels, can be described as a very precise, compass-directed walk around the boundary of a parcel. This method is commonly referred to as: A. metes and bounds B. subdivision plat lot and block number C. government rectangular survey D. tax parcel number

metes and bounds

3 methods of legal description accepted for public records

metes and bounds, subdivision plat and block number, and government rectangular survey

The most flexible method of land description, capable of describing even the most irregular of parcels, can be described as a very precise, compass-directed walk around the boundary of a parcel. This method is commonly referred to as:

metes and bounds.

Conflicting views of best practice in urban planning include the choice between separation of residential from non-residential and

mixed use

Conflicting views of best practice in urban planning include the choice between separation of residential from non-residential and ____ ____.

mixed use

Conflicting views of best practice in urban planning include the choice between separation of residential from non-residential and _____ _____.

mixed use

conficting views best practice in urban planning include the choice between seperation of residential from non-residential and ______ _________

mixed use

Among the most recent environmental hazards encountered in real estate is:

mold

Among the most recent environmental hazards encountered in real estate is: -fiberglass -mold -lead-based paint -asbestos

mold

Toxic substances that have posed problems to property owners in the last two decades include:

mold, asbestos, radon, leaking underground storage tanks.

Under the statute of frauds which of these must be in writing to be enforceable?

mortage & ten year lease

Real estate is property, which can be either a tangible or an intangible asset. Which of the following would be considered an intangible asset?

mortgage

Real estate is property, which can be either a tangible or an intangible asset. Which of the following would be considered an intangible asset? -land -building -mortgage -fence

mortgage

In zoning a non-conforming use

must have existed before the zoning was enacted. cannot change in use or structure. cannot be discontinued more than a limited time.

A home owner's bundle of rights is ______ affected if a local utility company has the right to access telephone poles in the owner's back yard. -not -negatively -positively

negatively

A contemporary planning movement that explicitly advocates a traditional grid pattern of development designed to give pedestrian life priority over motor vehicles (e.g., including narrowed streets with houses close to the street and garage access through side alleys) is commonly referred to as:

new urbanism

Examples of market failure due to incomplete information about construction quality include

non-visible electrical systems once walls are closed in, inability to examine plumbing under a concrete slab floor

When a zoning ordinance is revised, some existing land uses then fall outside the new zoning classification. These land uses are referred to as:

nonconforming uses

When a zoning ordinance is revised, some existing land uses then fall outside the new zoning classification. These land uses are referred to as: -special uses. -nonconforming uses. -conforming uses. -exclusionary uses.

nonconforming uses

When a zoning ordinance is revised, some existing land uses then fall outside the new zoning classification. These land uses are referred to as:

nonconforming uses.

Personal Property

objects that are movable and not permanently affixed to the land or structure, including furniture and tenant fixtures that are often purchased in conjunction with real property acquisitions

tangible assets include: - office furniture - stock options - land - cars

office furniture, land, cars

Ownership by tenancy in common, compared to a corporation,

often arises as a default form of co-ownership. Is real property rather than personal property.

The priority of a condominium association lien

often depends on state law.

The priority of a condominium association lien -often depends on state law. -is alway lowest among private liens. -is alway highest among private liens. -depends strictly on when the obligation (assessment) is due.

often depends on state law.

Budget: 1000000, non tax rev: 100000 Tax base: 100000000 Exempt: 10000000

one percent effective rate, ten millls

Use the following data to compute the property tax rate for an example taxing authority: Budget: $1,000,000 Nontax revenue: $100,000 Total tax base: $100,000,000 Exempt property: $10,000,000 Answer: _____ percent, or _____ mills.

one percent, ten mills

Marketable Title

one that is free of reasonable doubt.

A contract for sale of real estate usually calls for the seller to provide evidence of title as a requisite to completing the sale. Today, the predominant medium through which a seller meets this requirement is by providing: A. only a title abstract. B. only an attorney's opinion of title. C. only a title insurance commitment. D. only a seller's disclosure

only a title insurance commitment

A contract for sale of real estate usually calls for the seller to provide evidence of title as a requisite to completing the sale. Today, the predominant medium through which a seller meets this requirement is by providing:

only a title insurance commitment.

A deed is a special form of written contract used to convey a permanent interest in real property. Unlike most contracts, a deed requires:

only the grantor to be legally competent and of legal majority age.

Suppose an older homeowner lives adjacent to an expanding university that is interested in acquiring her residence for future university use. To allow the homeowner to continue to retain all rights of exclusive possession, use, and enjoyment during her lifetime, yet provide the university with the right of disposition, the university may want to purchase a(n):

ordinary life estate with remainder interest.

building codes

originally were prompted primarily by the threat of fire, began to be adopted by US communities around 1900, were the earliest form of police power regulation of land use

Co-ownership can occur in a variety of ways, with significant variation in how the bundle of rights is jointly held. All of the following entities are forms of direct co-ownership EXCEPT: -tenancy in common. -tenancy by the entirety. -condominium. -partnership.

partnership

Co-ownership can occur in a variety of ways, with significant variation in how the bundle of rights is jointly held. All of the following entities are forms of direct co-ownership except -tenancy in common -tenancy by the entirety -condominium -partnership

partnership

While several kinds of real property conveyances result from events beyond the control of the grantor, the majority of conveyances are voluntary through a deed. Which of the following is an example of a voluntary conveyance of real property with a deed?

patent

While several kinds of real property conveyances result from events beyond the control of the grantor, the majority of conveyances are voluntary through a deed. Which of the following is an example of a voluntary conveyance of real property with a deed? -patent -probate -condemnation -implied easement

patent

Brian just began graduate school at the local university and is looking to rent an apartment. A family friend has decided to lease him a two bedroom, one bathroom cottage through an oral agreement with no definite lease period outlined. Which of the following leasehold estates best describes Brian's situation?

periodic tenancy

Brian just began graduate school at the local university and is looking to rent an apartment. A family friend has decided to lease him a two bedroom, one bathroom cottage through an oral agreement with no definite lease period outlined. Which of the following leasehold estates best describes Brian's situation? -tenancy for years -tenancy at sufferance -periodic tenancy -tenancy by the entirety

periodic tenancy

If a neighboring land owner drives across a person's land openly and consistently for a number of years the neighbor may acquire an easement by:

perscription

tangible assets

physical things, such as automobiles, clothing, land, or buildings

Modern alternatives (generally adopted after 1970) to traditional land use controls include

planned unit development. form-based zoning. performance standards. impact fees.

The power of state and local governments in the United States to regulate in the interest of the health, safety and welfare of citizens in general is known as:

police powers

The success of land owners in the U.S. in using inverse condemnation to obtain relief from severe regulation that devalues their property is: -Very irregular -generally good -poor but recently improved -poor and declining

poor but recently improved

user markets

potential occupants, both owner-occupants and tenants, or renters competing for physical location and space

the _____ of real estate markets contribute(s) to segmentation - price differences - localized nature - immobility - importance

price differences, localized nature, and immobility

Eminent domain is the right of government to acquire _____ property, without the owner's _____, for public use, in exchange for _____ _____.

private, consent, just compensation

Eminent domain is the right of government to acquire ____ property, without the owner's ____, for public use, in exchange for ____ ____.

private. consent. just compensation.

Steps to creating a comprehensive plan typically include

projecting a community's future population growth, its requirements for water and other natural resources, its physical characteristics, its need for public services, and its need for various types of land use.

Steps to creating a comprehensive plan typically include

projecting demand for natural resources. projecting demand for public services. projecting population growth.

Which kind of right is older, personal or property?

property rights

Which of the following types of liens is automatically superior to any other lien?

property tax and assessment lien

Which of the following types of liens is automatically superior to any other lien? -property tax and assessment lien -mortgage lien -lien arising from a court judgment unrelated to ownership of the property -mechanics' lien

property tax and assessment lien

A lien that always exists on every private property is the

property tax lien

A lien that always exists on every private property is the

property tax lien.

A lien that always exists on every private property is the -mechanics' lien. -property tax lien. -community development district lien. -mortgage lien.

property tax lien.

narrowest view concerning

public & benefit

Externalities can play an important role in determining a property's price, either by adding value through positive externalities or by diminishing value through negative externalities. Which of the following is most likely to be considered a negative externality?

public assistance facilities such as homeless shelters

The narrowest notion of eminent domain limits its scope to "public use," that is, for _____ facilities only, while the more common and broader view allows eminent domain to be use for "public purpose," meaning any use of clear public _____.

public, benefit

The narrowest notion of eminent domain limits its scope to "public use," that is, for ____ facilities only, while the more common and broader view allows eminent domain to be use for "public purpose," meaning any use of clear public ____.

public. benefit.

A deed used mainly to clear up possible "clouds" or encumbrances to title (conflicting interests) is the:

quitclaim deed

Considered a "questionable conveyance of title" by most courts, which of the following types of deeds is worded to imply no claim of title, but rather only convey what interest the grantor actually has? (Hint: This type of deed may be used by a developer to convey certain lands of a subdivision to the local government through dedication.)

quitclaim deed

Considered a "questionable conveyance of title" by most courts, which of the following types of deeds is worded to imply no claim of title, but rather only convey what interest the grantor actually has? (Hint: This type of deed may be used by a developer to convey certain lands of a subdivision to the local government through dedication.) -general warranty deed -special warranty deed -deed of bargain and sale -quitclaim deed

quitclaim deed

the type of deed with no covenants, explicit or implied, is the

quitclaim deed

The type of deed with no covenants, explicit or implied, is the -limited warranty deed. -general warranty deed. -deed of bargain and sale. -quitclaim deed.

quitclaim deed.

The type of deed with no covenants, explicit or implied, is the Multiple choice question. a. general warranty deed. b. quitclaim deed. c. limited warranty deed. d. deed of bargain and sale.

quitclaim deed.

If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as:

raw land

Land and its permanent structures are _____ property

real

land and its permanent structures are _____ property

real

Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is:

real property

Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is: -real property -home mortgage -equity ERITs -mortgage backed securities

real property

Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of real estate asset that trades in the private equity market is: -real property -home mortgages -municipal bonds -commercial mortgage-backed securites

real property

Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An example of a real estate asset that trades in the private equity market is

real property.

Actual Notice

recording statutes cannot assure complete knowledge of real property interests. is considered to have the same force as constructive notice. The obvious implication of actual notice is that property should never be acquired until it has been inspected. By the same token, when the validity of title is being examined, as discussed below, part of the process must be to inspect the property.

Laws requiring that a document conveying an interest in real property must be placed in the public records are more commonly referred to as:

recording statutes.

All else equal, a rise in the general level of interest rates -increases property values but does not typically affect construction -reduces property values and therefore tends to increase construction -reduces property values and therefore tends to slow construction

reduces property values and therefore tends to slow construction

all else equal, a rise in the general level of interest rates

reduces property values and therefore tends to slow construction

Delivery

refers to an observable, verifiable intent that the deed is to be given to the grantee. Normally, this is accomplished when the grantor hands the deed to the grantee at closing. However, it also may occur through third parties, such as the attorney of either party.

an example of negative externalities is:

reflective glass or roof material deflects light and heat onto adjacent properties

an example of negative externalities is

reflective glass or roof materials

Life Estates are almost always associated with a

remainder

Which of these is an estate? -Restrictive covenant -Remainder interest -Easement -Lien

remainder interest

statute of frauds

requires every conveyance of real property to be in writing

Tom recently purchased a home in a residential subdivision. While mowing his lawn and planting new shrubs for the first time since moving in, Tom's neighbor came outside to inform him that he was violating one of the subdivision's rules which required the use of a specific professional lawn service for all property landscaping needs. Assuming this requirement can be enforced by the subdivision authority, this would be an example of a(n)

restrictive covenant

Tom recently purchased a home in a residential subdivision. While mowing his lawn and planting new shrubs for the first time since moving in, Tom's neighbor came outside to inform him that he was violating one of the subdivision's rules which required the use of a specific professional lawn service for all property landscaping needs. Assuming this requirement can be enforced by the subdivision authority, this would be an example of a(n):

restrictive covenant

Restrictive covenants impose constraints on the use of the land, yet are limited in terms of their enforcement. All of the following are true regarding the enforcement of restrictive covenants except -courts have been reluctant to maintain restrictive covenants for an unreasonably long time and in some cases states have enacted a time limit on their applicability -courts may refuse to enforce restrictive covenants due to changing neighborhood character -courts may refuse to enforce restrictive covenants due to abandonment of the property -restrictive covenants are public in nature and therefore can be enforced by those who do not hold a legal interest in the property

restrictive covenants are public in nature and therefore can be enforced by those who do not hold a legal interest in the property

Restrictive covenants impose constraints on the use of the land, yet are limited in terms of their enforcement. All of the following are true regarding the enforcement of restrictive covenants EXCEPT:

restrictive covenants are public in nature and therefore can be enforced by those who do not hold a legal interest in the property.

Zoning has been called a poor solution to land use market failure because

restricts the supply of lower priced housing, forces supporting business services away from the neighborhoods they serve

The visibility of a property from the street is usually most important for -warehouse properties -storage facilities -retail properties

retail properties

the visibility of a property from the street is usually most important for - storage facilities - warehouse properties - retail properties

retail properties

In large measure, rather than using impact fees as a means of correcting externalities, local governments have tended to use the fees purely as a source of _____.

revenue

The distinctive feature of a joint tenancy is the:

right of survivorship

The distinctive feature of a joint tenancy is the: -right of survivorship. -right of community property. -right of separate property. -right of cooperation.

right of survivorship

Police Power is the power of any government to regulate in the interest of the general health ------ and ----- of the citizens.

safety & welfare

Police power is the power of any government to regulate in the interest of the general health, _____, and _____ of the citizens.

safety, welfare

Police power is the power of any government to regulate in the interest of the general health, ____ , and ____ of the citizens.

safety. welfare.

It is important to record documents conveying a real property interest because recording

satisfies the doctrine of constructive notice

It is important to record documents conveying a real property interest because recording -assures that the document cannot be altered. -satisfies the doctrine of constructive notice. -assures that all parties of the transaction can get to the document. -assures that the document will not disappear.

satisfies the doctrine of constructive notice.

Types of property that commonly are expempt from property taxes include

schools and universities, other property of religious organizations, hospitals, places of worship.

Types of property that commonly are exempt from property taxes include

schools and universities. places of worship. hospitals. other property of religious organizations.

In the township third north and second west from the intersection of the principal meridian and base line, the section in the southwest corner would be described as

section 31, range 2W, tier 3N

In the township third north and second west from the intersection of the principal meridian and base line, the section in the southwest corner would be described as -section 36, range 2W, tier 3N -section 31, range 2W, tier 3N -section 31, tier 2W, range 3N -section 36, tier 2W, range 3N

section 31, range 2W, tier 3N

capital market

the financial sector of the economy that serves to allocate financial resources among households and firms requiring funds

The main attraction of performance standards is that they can address the problematic effects (externalities) of a land use more flexibly and efficiently than the approach of conventional zoning, which is _____ of land uses.

separation

The main attraction of performance standards is that they can address the problematic effects (externalities) of a land use more flexibility and efficiently than the approach of conventional zoning, which is

separation of land uses

The main attraction of performance standards is that they can address the problematic effects (externalities) of a land use more flexibly and efficiently than the approach of conventional zoning, which is ____ of land uses.

seperation (or segregation)

When identifying an easement appurtenant, the parcel of land that is constrained or diminished by the easement is referred to as the:

servient parcel

When identifying an easement appurtenant, the parcel of land that is constrained or diminished by the easement is referred to as the: -dominant parcel. -servient parcel. -licensed parcel. -gross parcel.

servient parcel

Real estate is defined as land and its permanent improvements. Which of the following is an example of an improvement TO the land? -fence -building -sewer system -personal property

sewer system

Real estate is defined as land and its permanent improvements. Which of the following is an example of an improvement to the land?

sewer system

In true direct co-ownership the owners

share the same bundle of rights

When an owner disposes of an indirect co-ownership interest in real estate, the owner will be conveying to the new owner

shares in a business entity

When an owner disposes of an indirect co-ownership interest in real estate, the owner will be conveying to the new owner -a freehold interest in real estate -the physical real estate -shares in a business entity -title to real estate

shares in a business entity

in contrast

sharing

In contrast to property taxes, which are based on property value, special assessments are based more on equally ____ the total cost of improvements.

sharing (or distributing)

The purpose of marketable title laws is to: -shorten the time span of title search -eliminate old easements and restrictive covenants -limit the life span of recorded documents -root out faulty documents from the records

shorten the time span of title search

The purpose of marketable title laws is to: Multiple choice question. a. shorten the time span of title search b. eliminate old easements and restrictive covenants c. root out faulty documents from the records d. limit the life span of recorded documents

shorten the time span of title search

A football field, not including the end zones, is ________ -slightly more than one acre -equal to one acre -slightly less than one acre

slightly more than one acre

example of holdout monopolist is

small remaining percent of condominium owners demand higher prices

It was not until the late 1960's that land use controls moved to the forefront of public interest, as the belief that the environment was an endless and costless resource was replaced with the notion that the world was a closed system with limited space, air, water, and other resources. Environmentalists coined which of the following terms to refer to this new point of view?

spaceship earth

Tenancy by the Entirety

special ownership by married couple Marital co-ownership that, at the death of one spouse, enables the surviving spouse to be sole owner of joint property.

An easement is the right to use another's land for a ____ and ___ purpose

specific and limited.

An easement is the right to use another's land for a _____ and _____ purpose.

specific, limited

The licensing of real estate professionals is usually done at the ______ level. -state -county -federal -city

state

Helping to constrain entry into real estate related occupations, which of the following branches of government is directly involved in establishing rules and regulations for the licensing of professionals in the field of real estate?

state government

Helping to constrain entry into real estate-related occupations, which of the following branches of government is directly involved in establishing rules and regulations for the licensing of professionals in the field of real estate?

state government

A law requiring any contract conveying a real property interest to be in writing in order to be enforceable is a modern application of the:

statute of frauds

participants in capital markets include - stock investors - potential tenants in office properties - mortgage investors - bond investors

stock, mortgage, and bond investors

The description of land in a deed must be unambiguous. All of the following would be considered acceptable legal descriptions of land EXCEPT:

street address

All of the following are examples of an improvement on the land except

streets

All the following are examples of an improvement ON the land except: -fences -building -walls -streets

streets

Most often used in the description of urban property, which of the following methods of land description contains information regarding the location of various easements and may even contain a list of restrictive covenants?

subdivision plat lot and block number

Most often used in the description of urban property, which of the following methods of land description contains information regarding the location of various easements and may even contain a list of restrictive covenants? -metes and bounds -subdivision plat lot and block number -government rectangular survey -tax parcel number

subdivision plat lot and block number

Most often used in the description of urban property, which of the following methods of land description contains information regarding the location of various easements and may even contain a list of restrictive covenants? A. metes and bounds B. subdivision plat lot and block number C. government rectangular survey D. tax parcel number

subdivision plat lot and block number

Evidence of Title

substantiation that demonstrates that good and marketable title is being conveyed as part of a real estate transaction The seller traditionally can meet this requirement in one of two ways: Title abstract, together with an attorney's opinion of title. (Note that the abstract alone is not sufficient.) Title insurance commitment. (is deemed equivalent to the traditional abstract and opinion of title)

subdivision plat lot and block number

surveyed map of subdivision is placed in the public records when subdivision is created

Probate

t the death of a property owner, the property will convey in one of two modes: testate—in accordance with a will, or intestate—without a will. where the property is located will govern the disposition procedure.

To find the property tax amount for a property multiply the taxable value by the total ____ ____.

tax (or millage) rate

To find the property tax amount for a property multiply the taxable value by the total _____ _____.

tax rate

In recent decades the "public purpose" concept of eminent domain is claimed to have allowed misuse: encouraging local governments to use eminent domain to replace older private land uses with new ones simply to generate higher _____ _____.

tax revenue

In recent decades the "public purpose" concept of eminent domain is claimed to have allowed misuse: encouraging local governments to use eminent domain to replace older private land uses with new ones simply to generate higher

tax revenues

In recent decades the "public purpose" concept of eminent domain is claimed to have allowed misuse: encouraging local governments to use eminent domain to replace older private land uses with new ones simply to generate higher ____ ____.

tax revenues

in recent decades the "public purpose" concept

tax revenues

the public purpose concept of eminent domain is claimed to have

tax revenues

Which of the following leasehold estates best describes the situation in which a tenant who previously occupied a property under a legitimate leasehold interest refuses to vacate?

tenancy at sufferance

Which of the following types of estates involves the weakest bundle of rights?

tenancy at will

Which of the following types of estates involves the weakest bundle of rights? -fee simple absolute -legal life estate -ordinary life estate -tenancy at will

tenancy at will

Direct co-ownership implies that each co-owner holds a titled interest in the property but without exclusive possession with respect to the other co-owners. Which of the following types of direct co-ownership is considered the closest to the fee simple absolute estate?

tenancy by the entirety

Which of the following types of direct co-ownership is a form of joint tenancy for husband and wife created by marriage that protects each spouse from liens arising from either spouse alone?

tenancy by the entirety

A ten year commercial lease conveys what real property interest? -Periodic tenancy -Conditional fee -Tenancy for years -Fee simple absolute

tenancy for years

A leasehold interest for a specific period of time is more commonly referred to as:

tenancy for years.

The most versatile form of direct coownership is

tenancy in common

The most versatile form of direct coownership is -tenancy by the entirety -tenancy in common -general partnership -joint tenancy

tenancy in common

Which of these ownership entities is a form of true co-ownership

tenancy in common

Condominium combines individual ownership with -general partnership. -tenancy by the entirety. -tenancy in common. -joint tenancy.

tenancy in common.

At the death of a property owner, property will convey either in accordance with a will or without a will. When a will dictates the distribution of the decedent's real property, this mode of conveyance is more commonly referred to as:

testate

At the death of a property owner, property will convey either in accordance with a will or without a will. When a will dictates the distribution of the decedent's real property, this mode of conveyance is more commonly referred to as: -testate. -intestate. -probate. -descent.

testate

Your "interest" in real property refers to

the "bundle of rights" you hold.

Your "interest" in real property refers to -the "bundle of rights" you hold. -the value of your property. -your motivation to acquire the property. -your expected length of ownership of the property.

the "bundle of rights" you hold.

An example of market failure due to incomplete information is:

the buyer of a house doesn't know that the electrical wiring is aluminum, and prone to cracking - a fire hazard.

An example of market failure due to incomplete information is: -the buyer of a house doesn't know that the electrical wiring is aluminum, and prone to cracking - a fire hazard. -a cable company that prevents competition by owning the local delivery network decides it can raise its prices sharply. -many households with children move to a popular elementary school district, thereby over populating the school. -an industrial plant that produces very pungent fumes locates next to a residential area.

the buyer of a house doesn't know that the electrical wiring is aluminum, and prone to cracking - a fire hazard.

An example of market failure due to incomplete information is

the buyer of a house doesn't know that the electrical wiring is aluminum, and prone to cracking.

The investment returns investors require on available investment opportunities are primarily determined in: -the capital markets -property markets -user markets

the capital markets

the investment returns investors require on available investment opportunities are primarily determined in: - the capital markets - user markets - property markets

the capital markets

Capital markets can be divided into two broad categories: equity interests and debt interests. Equity investors in real estate expect to earn a return on their investment through:

the collection of rent and price appreciation

which of the following contribute to the complexity of real estate transactions - the complex bundle of rights associated with real estate ownership - the contiguous nature of all real estate parcels - the high price of real estate

the complex bundle of rights associated with real estate ownership and the contiguous nature of all real estate parcels

The nature and specific characteristics of a condominium are defined in

the condominium declaration, the by laws.

Competition for the currently available supply of locations and space, coupled with the existing supply of leasable space, determines the

the current level of rental rates for each submarket and property

Competition for the currently available supply of locations and space coupled with the existing supply of leasable space, determines:

the current level of rental rates for each submarket and property.

Housing equity is defined as -the current market value of the homes minus the current value of any outstanding mortgage debt -the market value of the home when purchased minus the value of any outstanding mortgage debt when purchased -the market value of the home when purchased minus the current value of any outstanding mortgage debt

the current market value of the homes minus the current value of any outstanding mortgage debt

Characteristics of an easement in gross include that

the easement can be conveyed separately from any parcel affected. a single easement can affect many parcels. only servient (diminished) parcels are involved.

An example of a positive externality is:

the effect on a neighborhood from good lawn maintenance

Events that triggered the "revolution in land use controls" included

the environmental movement. the Love Canal disaster. publication of Rachel Carson's Silent Spring.

The reason a second mortgage lender is at more risk than a first mortgage lender is that in default

the first mortgage lender gets full satisfaction before the second mortgage lender get any.

The reason a second mortgage lender is at more risk than a first mortgage lender is that in default -the second mortgage lender gets satisfaction, but must wait. -the second mortgage is always smaller, and satisfaction of liens is partly by size. -the first mortgage lender gets full satisfaction before the second mortgage lender get any.

the first mortgage lender gets full satisfaction before the second mortgage lender get any.

Reason a second mortgage lender is at more risk than a first mortgage lender is that in default

the first mortgage lender gets full satisfaction before the second mortgage lender gets any

A major reason for subdivision regulations is that usually the responsibility for maintaining streets and sewers eventually falls to

the local government

A major reason for subdivision regulations is that usually the responsibility for maintaining streets and sewers eventually falls to -the development lender -the homeowners -the local government -the original developer

the local government

The general warranty deed imposes the highest financial responsibility of any deed for the grantor to have good title. This is because the deed has -the fewest covenants. -the maximum number of covenants. -acknowledgment or witnesses. -covenants plus posted performance bond.

the maximum number of covenants.

The general warranty deed imposes the highest financial responsibility of any deed for the grantor to have good title. This is because the deed has Multiple choice question. a. the fewest covenants. b. covenants plus posted performance bond. c. acknowledgment or witnesses. d. the maximum number of covenants.

the maximum number of covenants.

Rule of capture

the owner of an oil or gas well could claim all that is pumped from it, regardless of whether the oil or gas migrated from adjacent property However, because methods of so-called secondary recovery have enabled well owners today to recover oil and gas from such an extensive surrounding area, the law of capture has been curtailed in some states. Today every oil-producing state has evolved its own considerable statutory law pertaining to oil and gas rights.

Capitalization Rate

the percentage that is obtained when the income produced by a property (or a specified interest in a property) is divided by the value or sale price of the property (or the specified interest in a property)

Perceived threats to destabilize a single family, owner oriented neighborhood have included

the presence of apartments or commercial activity in the neighborhood

Perceived threats to destabilize a single family, owner oriented neighborhood have included -too many children living in the houses of a neighborhood -too many senior households in a neighborhood -the presence of apartments or commercial activity in the neighborhood -too many high income households in a neighborhood

the presence of apartments or commercial activity in the neighborhood

An important process for any investor in property that could possibly contain toxic substances is a Phase 1 Environmental Value Assessment. This procedure examines

the property surface, itself. property history. air samples. water samples.

An example of an easement appurtenant would be

the right of one parcel to restrict building height on an adjacent parcel

An example of an easement appurtenant would be

the right of one parcel to restrict building height on an adjacent parcel.

An example of an easement appurtenant would be -the right to erect and maintain a sign on another's property. -a railroad right of way across many parcels. -the right to erect a cell tower on another's property. -the right of one parcel to restrict building height on an adjacent parcel.

the right of one parcel to restrict building height on an adjacent parcel.

A principal definition of real estate is as a bundle of rights associated with the possession, use, and disposition of property. Each of the following is a fundamental characteristic of property rights except

they apply only to tangible assets

Special assessments are levied to pay for specific improvements that benefit a particular group of properties. All of the following characteristics of special assessments are true EXCEPT:

they are considered ad valorem taxes.

Real property is defined as: -things permanently affixed to the land or structure -things easily removed from the land or structure -all residences with a physical address

things permanently affixed to the land or structure

Property tax rates typically are stated not in percent but in mills, which are dollars per _____ dollars of value.

thousand

Property tax rates typically are stated not in percent but in mills, which are dollars per ______ dollars in value

thousand

When multiple individuals have use of a property, but their interests are not simultaneous, this type of co-ownership is referred to as a

timeshare

When multiple individuals have use of a property, but their interests are not simultaneous, this type of co-ownership is referred to as a:

timeshare.

A public planning movement that explicitly advocates a cul-de-sac hierarchy of development, an automobile oriented society, and separated land use is more commonly referred to as: -urban sprawl. -urban service area. -traditional residential planning. -new urbanism.

traditional residential planning

Planed unit development allows residential density to range from single family detached to multifamily, and often include supporting commercial development.

true

Planned unit development (PUD) allows residential density to range from single family detached to multifamily, and often include supporting commercial development. -True -False

true

The primary means that economists advocate to "internalize" externalities is by charging compensating fees

true

The primary means that economists advocate to "internalize" externalities is by charging compensating fees. -True -False

true

True or false. A distinctive feature of real estate is the complexity of property and transactions.

true

true or false: a distinctive feature of real estate is the complexity of property and transactions

true

By the fourth quarter of 2018, U.S. households had accumulated $15.5 trillion in housing equity, which represents about 15 percent of their net worth. What proportion of U.S. households own their home?

two thirds

By the fourth quarter of 2015, U.S. households had accumulated $12.5 trillion in housing equity, which represents about 14 percent of their net worth. What proportion of U.S. households own their home?

two-thirds

By the fourth quarter of 2015, U.S. households had accumulated $12.5 trillion in housing equity, which represents about 14% of their net worth. What portion of U.S. households own their home?

two-thirds

By the fourth quarter of 2018, U.S. households had accumulated $15.5 trillion in housing equity, which represents about 15 percent of their net worth. What proportion of U.S. households own their home?

two-thirds

An example of conflicting notions of best practice in urban planning is

uniform residential densities vs mixed residential densities. grid street patterns vs cul-de-sac streets.

New construction of a particular type of real estate generally does not occur -unless current property values exceed construction costs -until interest rates are low enough -until occupancy levels are stagnant over time

unless current property values exceed construction costs

Development taking place in rural areas well beyond the urban fringe is commonly referred to as:

urban sprawl

The demand for real estate derives from the need that market participants (e.g. owner occupants, tenants, renters) have for shelter and convenient access to other locations. This competition for physical location and space occurs in the

user market

The demand for real estate derives from the need that market participants (e.g., owner occupants, tenants, renters) have for shelter and convenient access to other locations. This competition for physical location and space occurs in the:

user market

The demand for real estate derives from the need that market participants (e.g., owner occupants, tenants, renters) have for shelter and convenient access to other locations. This competition for physical location and space occurs in the

user market.

The property tax is a form of ad _____ tax that is the primary source of revenue for almost all forms of local government in the United States.

valorem

The property tax is a form of ad ________ tax that is the primary source of revenue for almost all forms of local government in the United States.

valorem

Zoning was determined by the United States Supreme Court to be a legitimate use of police powers to regulate land use in the interest of health, safety and welfare in: -Berman v. Parker, 1954 -village of Euclid v. Ambler Realty, 1926 -Pennsylvania Coal Co. v. Mahon, 1022 -Kelo v. City of New London, 2005

village of Euclid v. Ambler Realty, 1926

Building codes

were the earliest form of police power regulation of land use. originally were prompted primarily by the threat of fire. began to be adopted by US communities around 1900.

Issues that arise in determining rights to minerals, oil and gas include

whether ownership of minerals involves ownership of the space containing them. whether oil and gas are treated as simply a form of minerals or as flowing substances.

Elective Share

which gives a surviving spouse a share of most of the wealth of the decedent. A common share is one-third, though up to 50 percent in some cases. The surviving spouse must elect to take the share within some time limit, usually no later than nine months after the death or six months after the conclusion of probate, whichever is later. A modern statutorial creation, provides a free simple interest, includes both real and personal property.

In recent years, bottling companies in Florida and elsewhere have made people conscious of a fundamental issue in water rights, namely: -who has the right to use water -who controls use of the land adjacent to a body of water -Who controls the land under a body of water -who has the right to the surface of a body of water

who has the right to use water

Traditional land use controls (pre-1970) include:

zoning, building codes, and subdivision regulations