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
