Real Estate Unit 1, Real Estate Law: Chapter 3 - Condominiums, Co-ops and Timeshare, Unit 5: Land Description, Chapter 6- Land Description, Unit 6 Exam

A parcel of land is two acres. It sells for $1.18 per square foot. What is the total selling price for the parcel?

$102,801.60 ((43,560 x 2) x $1.18)

A buyer is willing to pay $1,200 per acre for the SE 1/4 of the SE 1/4 of the SE 1/4 of Section 11. How much will the buyer pay for the land?

$12,000

If a farm described as "the NW 1/4 of the SE 1/4 of Section 10, Township 2 North, Range 3 West of the 6th. P.M." sold for $4,500 an acre, what was the total sales price?

$180,000 ($4,500 x 40 acres)

A piece of land is for sale for $2.25 per square foot. The land is three acres. What was the total selling price for the land?

$294,030 ((43,560 x 3) 2.25))

A 640-acre farm is being sold for $6,500 per acre. What is the purchase price?

$4,160,000 (640 x $6,500)

Ex of Monetary Policy Effects

1. Federal Reserve establishes discount rate on money it lends to banks 2. Discount rate affects the interest rate that banks charge consumers 3. Interest rate on a home loan affects its affordability for buyer

Factors affecting supply:

1. Laborforce, construction, & material costs; 2. Governmental controls & monetary policy

Factors affecting demand:

1. Population; 2. Demographic; 3. Employment & wage levels

Which of these MOST accurately describes the dimensions of a quarter-section?

1/2 mile by 1/2 mile

A chain is 66 feet long or four rods; a rod is

16.5 feet

How many acres are contained in a parcel described as follows: The NE 1/4 of the NW 1/4, and the S 1/2 of the NW 1/4, and the NE 1/4, of Section 10?

280 acres

In the rectangular survey system, a township is divided into

36 sections with 640 acres per section

How big is an acre?

43,560 sq. ft.

The N 1/2 of the SW 1/4 of a section contains how many acres?

80

A property contains 10 acres. How many lots of not less than 50 feet by 100 feet can be subdivided from the property if 26,000 square feet were dedicated for roads?

81 (((435,600 sqft. - 26,000)/5000) = 81.92)

TENANTS IN COMMON

A WAY FOR TWO OR MORE PEOPLE TO OWN REAL ESTATE

cooperative

A form of ownership of real property in which a corporation owns a multi-unit building and leases living space in the build-ing to the shareholders of the corporation. Must be financed through the cooperative corporation and has restrictions placed on transferability through a board review of the purchaser.

timeshare

A form of shared property ownership, commonly in vacation or recreational condominium property, wherein rights vest in several owners to use property for specified periods each year

condominium declaration

A legal document required by state condominium acts to create a condominium

Associate Licensee

A licssensed real estate sales person who is employed by/associated with the broker to perform brokerage activities on behalf of/for the broker

plat

A map of a specific land area, such as a town, section, or subdivision, showing the location and boundaries of individual parcels of land subdivided into lots, with streets, alleys, easements, units, etc.

Broker

A person or company licensened to buy, sell, exchange, or lease real property for others and charge a fee for their service

Real Estate Licensee

A person who has satisfied the requirements of a licensing agency, as authorized by state legislation

Sales Associate

A person who performs real estate activities while employed by a licensed real estate broker

Market

A place where goods can be bought and sold and a price established

Code of Ethics

A written system of standards for ethical conduct

Residential Property

All property used for single family or multi-family housing, whether in urban, suburban, or rural areas

homeowners' association

An association of people who own homes in a given area, formed for the purpose of improving or maintaining the quality of the area

Modular Home

Another type of factory built housing; components assembled at a building site on a prepared foundation.

Supply and Demand

Appraisal prinicple; real property is subject to the influences of the market place as with any other commodity

One of many points that have been established throughout the United States, usually embossed brass markers set into solid concrete or asphalt bases

Benchmark

Surveyors rely most heavily on these to mark their work accurately

Benchmark

Commercial Property

Business property, including office space, shopping centers, stores, theaters, hotels, and parking facilities

C,C & R's

COVENANTS, CONDITIONS AND RESTRICTIONS. KNOWN AS "DEED RESTRICTION RULES". WHEN YOU BUY A CONDO MUST ADHERE TO REASONABLE RULES

Mixed-use Developments (High Rise Development)

Combineoffice space, stores, theaters, and apartments into single vertical community. Self contained- may offer laundry facilities, restaurants, food stores, beauty parlors, pools, etc

Who maintains PUD common areas and how are these expenses taken care of?

Community association formed ro maintain these areas and fees for expenses are collected from unit owners

bylaws

Corporate provisions detailing management structure and operating rules.

A point, line, or surface from which elevations are measured or indicated

Datum

Reference in condominium plat maps showing the elevations of floor and ceiling surfaces and vertical boundaries of each unit

Datum

Sales Person

Employed by or associated with the broker to perform brokerage activities on behalf of the broker. Also referred to as sales associate/associate licensee

Ex of governmental controls

Environmental restrictions, land use policies, building codes, and zoning

RENTAL RULES

FOR CONDOS; REASONABLE RENTAL RULES CAN BE ENFORCED.

Converted-use Properties

Factories, warehouses, office buildings, hotels, schools, churches, and other sturctures that have been converted to residential use. Ex- warehouse into lofts

Agricultural Property

Farms, timber land, ranches, and orchards

Assessments

Fees usually charged monthly to cover expenses from things like managment and maintenance of building exteriors and common facilities in condominums

condominium

Form of property ownership in which the owner owns an individual unit in a multi-unit building and is a tenant in common with other individual unit owners in the common areas. has few or no restrictions on transferability and can be traditionally financed. OWN IT "FEE SIMPLE" (THO CAN'T NECESSARILY RENT IT OUT)

Examples of Common Elements

Halls, elevators, reception area, main enterance security system, and surrounding grounds (pool, clubhouse, etc)

Monetary policy

Impacts interest rates and money supply

National Association of Realtors (NAR)

Largest trade organization that serves the real estate business. Composed of state, regional, and local associations

Proprietary Lease

Lease held in a cooperative, received by each shareholder, to a specfic unit in the building

Apartment Building

Makes up an apartment complex with varyng numbers of units in each building- high rise or low rise and may include parking, security, clubhouse, pool, tennis, and golf course

Realists

Members of the National Association of Real Estate Brokers (NAREB.) Dedicated to equal housing opportunity

Traditionally used to mark surface measurements between points, but may not be accurate

Monument

rescission

Mutual agreement to early discharge or termination of remaining duties

Uniqueness

No matter how identical they may appear, no two parcels of real estate are ever exactly alike; each occupies its own unique geographic location

Factory Built Housing

Now termed manufactured homes (once termed mobile home.) Permanent installations built to federal specifications. Provide principal residences or vacation homes. Low production cost

Condominium

Offers security of owing property without the care and maintenance. Condo owner owns an individual unit and shares ownership of common facilities (common elements)

Single Family Detached House

One of most popular housing types. Adapted in urban areas to take the form of a row house that may share a wall with an adjoining property. Can be an owner occupied building that also provides rental income

Niche Marketing

Phrase used to refer to the targeted marketing of specific demographoc populations

Special Purpose Property (Privately Owned)

Places of worship, schools, and cemetaries

Mixed Use Property

Property that allows for two uses, commercial and residential, in the same building

Immobility

Refers to the fact that property cannot be relocated to satisfy demand where supply is low, nor can buyers always relocate to areas with greater supply

Six Types of Real Property

Residntial, commercial, mixed use, industiral, agricultural, and special purpose

Special Purpose Property (Publicly Held)

Schools, municipal service buildings, and parks

Which township section number is directly north of Section 7?

Section 6

joint and several liability

Shared responsibility, apportioned between all of the defendants, but in no case can the plaintiff recover more than 100 percent of the damages awarded

Types of Housing

Single family detached house, apartment building, condominium, cooperative, planned unit developments (PUDs), high rise developments/mixed-use developments (MUDs), converted-use properties, and factory built housing

Planned Unit Developments (PUDs)

Sometimes called master-plan communities; may consist entirely of residences, but can also serve to merge sch diverse lands uses as housing, recreation, and commercial units into one self-contained development

liability insurance

That type of insurance protection which indemnifies one from liability to third persons, as contrasted with insurance coverage for losses sustained by the insured.

articles of incorporation

The basic charter of an organization, written and filed in accordance with state laws

Who are the management and maintenance of condominum building exteriors and facilities provided by?

The governing association, typically a management company and outside contractors

assessment

The process of ascertaining and adjusting the shares respectively to be contributed by several persons toward common beneficial object according to the benefit received

common areas

Those portions of the condominium property that are owned in common by all of the owners of units in the condominium.

Benchmarks are permanent reference points that have been established throughout the United States

True

Two characteristics of real estate that govern the way the market reacts to pressures of supply and demand

Uniqueness and immobility

Cooperative

Units that share common walls and facilities within a larger building; owners do not own units, each owner owns shares in a corporation that holds title to the real estate

Industrial Property

Warehouses, factories, land in industrial districts, and power plants

Even when a loan is necessary to afford a home, the interest paid on the loan is usually _________________________________

a deduction from federal income tax

Real estate is bought and sold on the basis of

a legal description

In a legal description, the terms lot and block relate to

a recorded subdivision map

A legal description is a detailed way of describing a parcel of land and is based on information collected through

a survey

The air above a property owner's land may be subdivided into

air lots

Rights to the property above the earth's surface are called

air rights

A survey that provides only the location of the structures and improvements as related to property boundaries is

an Improvement Location Certificate (ILC)

Some traditional terms of measurement NOT often used today include rods, cubic yards, and

chains

PUD owners own their own unit, but

do not have direct ownership interest in the common areas

For the reasons of uniqueness and immobility, real estate markets are _________ markets.

local

Like condo owners, cooperative shareholders

pay their share of the building's expenses

When a survey also shows the location, size, and shape of building on the lot, it is called a

spot survey

The LEAST specific method of identifying real property is

street address

The legal description of a property is based on information collected through a process called a

survey

To integrate information found in publicly available land records, the Federal Geographic Data Committee has created

the Cadastral Data Content Standard

A method of property description using monuments, distances, and compass directions is

the metes-and-bounds method

A metes-and-bounds description starts at a designated place on the parcel called

the point of beginning

The basic units of the rectangular survey system are

the townships

Subsurface rights can be legally described just as air rights, but with what difference?

they are measured below the datum rather than above it

Documents Needed to Establish a Condominium

• Master Deed • Declaration of Condominium • Bylaws • Articles of Incorporation • Purchase and Sale Agreements • Plats and Plans Map • Rules and Regulations

The articles of incorporation usually include the following:

• Name of the association • Purpose of the association • Period of duration for the corporation • Initial directors of the corporation • Registered agent and registered office of the corporation for service of process • Criteria for becoming a member of the association and the name of the initial incorporator

A condominium declaration usually contains the following items:

• Name of the condominium • Legal description of the entire real property that is to be the condominium • Description of all common areas • Creation of a governing body for the condominium or the requirement that one be created • Limitations or restrictions on the power of the condominium • Allocation of a share of liability for common area expense to each condominium unit • Statement of all restrictive covenants in the general use of the units and common areas • Description of how the condominium can be expanded • Statement of how the condominium can be terminated

The bylaws normally include the following items:

• Selection of the board of directors • How and when meetings are to be held and conducted • The manner in which officers are to be appointed or elected • How votes are to be counted • The governance of the corporation • Regulation of the common areas • Rights and responsibilities of unit owners • Assessment and collection of monthly charges and other relevant issues