FI 331 exams and quizes

There are four rules we discussed for when personal property is considered a fixture. For three of the rules, please name them and give a one or two sentence explanation.

1. manner of attachment: isn't moveable/permanent 2. intention of parties: facts of situation 3. relation of parties: buy vs rent

We discussed three ways of describing land. For all three, please name and give a one to three definition.

1. meets and bounds - oldest, specific directions of land, start to end (back to start) 2. plat lot and block - urban land, land # on a map, outline land/property 3. gov. rectangular survey -rural areas, zooms into street, county, etc

What share of GDP does real estate account for:

20%

Real estate assets are unique when compared to other goods for several reasons, including that they are immobile. Which of the following statements best describes what is meant by immobile markets?

Properties are difficult to physically move from one location to another

What is the definition of economies of scale in economics?

The concept that, over some scale, as a company increases its production, its average cost per unit decreases.

What is the definition of agglomeration economies?

The cost savings achieved when businesses centralize their operations in a single location to reduce transportation expenses.

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

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

an office building

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

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

By the power of eminent domain, the government can take private property for public purpose through due process and with just compensation. The process of exercising this power is known as:

condemnation

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

Based on your understanding of the supply and demand dynamics of user/space markets, the new construction of units would, all else equal, cause which of the following effects?

decrease equilibrium rental rates and decrease property value

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 try to learn of it. Based on the common law tradition, this policy is known as the:

doctrine of constructive notice

The right to use land for a specific and limited purpose is more commonly referred to as a(n):

easement

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

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 necessity

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 the following types of liens is automatically superior to any other lien?

government property tax and assessment lien

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

heterogeneous

Consider the monocentric city model, with the closed city. How would doubling the gas tax impact the following outcomes. Home size (q(x)) near the edge of the city (i.e., "in the suburbs").

increase

Consider the monocentric city model, with the closed city. How would doubling the gas tax impact the following outcomes. Price per square foot of living space (p(x)) near the central business distract (i.e., "downtown").

increase

While leasehold interests are considered estates, they differ from freehold estates in all of the following respects EXCEPT:

leasehold estates are possessory interests

The market for buying, selling, and leasing real estate can be characterized by all of the following EXCEPT:

low transaction costs

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

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 and/or fails to pay for the completed work. This lien is more commonly referred to as a(n):

mechanics lein

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

Consider the monocentric city model, with the closed city. How would doubling the gas tax impact the following outcomes. Building height near the edge of the city (i.e., "in the suburbs").

no change

Consider the monocentric city model, with the closed city. How would doubling the gas tax impact the following outcomes. Distance from the central business district to the edge of the city (x¯) (i.e., physical size of the city).

no change

Consider the monocentric city model, with the closed city. How would doubling the gas tax impact the following outcomes. Home size (q(x)) near the central business distract (i.e., "downtown")

no change

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?

patent

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 statues

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

Suppose a 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):

remainder interest from an ordinary life estate

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

The term real estate is used in three fundamental ways. When real estate is defined as the land and its improvements, it is being viewed as purely a(n):

tangible assets

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

Why is the price of water, which is essential for life, so much lower than the price of diamonds, which are simply decorative? You should answer in such a way that a smart incoming UA freshman can understand.

the value people place it and hold diamonds to compared to water

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 only apply to tangible assets

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 markets

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

water and sewer systems

Consider the monocentric city model, with the closed city. How would doubling the gas tax impact the following outcomes. Building height near the central business distract (i.e., "downtown").

we are unable to tell

Consider the monocentric city model, with the closed city. How would doubling the gas tax impact the following outcomes. Price per square foot of living space (p(x)) near the edge of the city (i.e., "in the suburbs").

we are unable to tell