FIRE 305 Ch. 1-4

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

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

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

640, 43,560

In real estate markets, a better location can also be referred as one with better _____

access

Which of the following would be considered a tangible asset? -land -lease agreement -mortgage -listed REIT

land

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

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 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

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.

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

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.

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.

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.

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.

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. -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.

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.

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 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

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.

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.

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

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

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

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

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

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.

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 -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

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

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

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

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 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

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

-price differences -localized nature -immobility

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

"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 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

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.

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 -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.

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

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

-veterans -historic property -disabled persons -widows

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.

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

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.

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

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

10, 15

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

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

20%

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

25%

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

25%

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

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

6%

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

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%

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

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

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 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

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

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

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

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

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

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 -Condemnation -Patent -Probate -Divorce settlement

Foreclosure

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

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

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

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.

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

Habendum

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

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.

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

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.

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

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

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: -Homestead residences -Property leased to the government -No exceptions for taxable properties -Property leased to a religious organization

No exceptions for taxable properties

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

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

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

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

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.

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

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

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

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

True or false: Better real estate decisions affect the productivity of individuals, firms, and local markets.

True

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

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.

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.

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

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

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 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.

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

Three forms of traditional land use controls are _____ _____, _____, and _____ regulations.

building regulations, zoning, subdivision

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.

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

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 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

A deed is a special form of _____ to convey a the exact property interest.

contract

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)

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

The primary document used to convey permanent interests in real property is a -sales contract -deed -mortgage -lease

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? -land use controls -leasehold interests -home owner association (HOA) bylaws -defaulted lien

defaulted lien

The process of converting expected future cash flows into present value is called ______. -compounding -investing -discounting

discounting

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

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

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

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

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

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

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

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

To derive taxable value of a property from assessed value, subtract any applicable _____.

exemptions

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

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

foreclosure

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

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

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

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.

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. -decrease if current property values equal the cost of construction.

highly segmented markets.

The largest partial exemption for property taxes is the _____ exemption.

homestead

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

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? -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

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

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.

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.

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

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

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. -buildings. -secure space.

land for farming

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 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

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. -Federal -State -Local

local

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.

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

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

An ad valorem tax is levied at rates between 1.0 and 4.0 percent of a property's _____ _____.

market value

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

Conflicting views of best practice in urban planning include the choice between separation of residential from non-residential and _____ _____.

mixed use

Among the most recent environmental hazards encountered in real estate is: -fiberglass -mold -lead-based paint -asbestos

mold

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

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

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.

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

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 -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? -tenancy for years -tenancy at sufferance -periodic tenancy -tenancy by the entirety

periodic tenancy

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

Eminent domain is the right of government to acquire _____ property, without the owner's _____, for public use, in exchange for _____ _____.

private, consent, just compensation

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 -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 -mechanics' lien. -property tax lien. -community development district lien. -mortgage lien.

property tax lien.

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

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 -limited warranty deed. -general warranty deed. -deed of bargain and sale. -quitclaim deed.

quitclaim deed.

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 -home mortgage -equity ERITs -mortgage backed securities

real property

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

Which of these is an estate? -Restrictive covenant -Remainder interest -Easement -Lien

remainder interest

The visibility of a property from the street is usually most important for -warehouse properties -storage facilities -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. -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

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.

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

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

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

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

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

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

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

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

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

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

A ten year commercial lease conveys what real property interest? -Periodic tenancy -Conditional fee -Tenancy for years -Fee simple absolute

tenancy for years

The most versatile form of direct coownership is -tenancy by the entirety -tenancy in common -general partnership -joint tenancy

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. -intestate. -probate. -descent.

testate

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. -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.

The investment returns investors require on available investment opportunities are primarily determined in: -the capital markets -property markets -user markets

the capital markets

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

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.

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.

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 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.

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

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

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 -False

true

True or false. A distinctive feature of real estate is the complexity of property and transactions.

true

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

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

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