REAL eSTATE EXAM
Land
Surface, all natural things attached to it, subsurface, and air above the surface
real estate
land + manmade permanent attachments
real property
real estate + bundle of rights
constitution
guarentees private ownership of real property
immobility
land cannot be moved from one site to another; its location is forever fixed
indestructibility
land is permanent and cannot be destroyed, does not depreciate
non-homogeneity
land is non-homogeneous; no two parcels of land are exactly the same since they have a different location
legal title
full legal ownership of propert and the bundle of rights as they apply to it, contrasts with equitable title
equitable titile
an intrest that gives a lienholder or buyer the right to acquire legal title to a property if certain contractual conditions occur
property is either
real or personal
property is either
tangible or intangible
airspace=
air rights
surface(of the earth)=
surface rights
subsurface=
subsurface or mineral rights
water rights consist of
appropriation, riparian rights, littoral rights
doctrine of prior appropriation
state controls water usage, grants usage permits
riparian rights
applies to river and streams, if waterway is navigable: owners own land to water's edge, if not navigable: owners own land to midpoint of waterway
littoral rights
applies to seas and lakes, abutting property owners own to high water mark, state owns underlying land
real property
land, fixtures, attachments
personal property
chattels, trade fixtures, emblements
trade fixtures
personal property items temporarily attached to real estate in order to conduct buisness
emblements
plants or crops that are considered personal property despite being attached to land
conversion
real to personal property reffered to as severance, personal to real property reffered to as affixing
factory-built housing
units are real or personal property: real if permanently affixed to ground; otherwise personal
differentiation criteria (2)
item is real or personal property depending on why, how item is attached to real estate
intention; adaptation; functionality; relationship of parties; contract provisions
federal regulation (3)
grants right of ownership
controls broad land usage standards
regulates anit-discrimination laws
state regulation (2)
governs real estate business
sets regional usage standards
local regulation (2)
levies real estate taxes
controls specific usage
judicial regulation (2)
applies case law and common law to disputes
contracts with statutory law
possession / possessory
estate in land
non-possession / non-possessory (2)
private: encumbrance
public : public intrest
bundle of rights
PUTEE
PUTTE stands for
Possession, Use, Transfer, Exclusion, Encumberable
estates in land (3)
include right of possession
leasehold= limited duration
freehold: duration is not limited
freehold (own) (2)
absolute
defeasible
life estates (2)
conventional
legal
leasehold (lease) (3)
estate for years or periodic
estate at will
estate at sufferance
fee simple
not limited by ones lifetime
absolute
highest form of ownership interest
defeasible
reverts to previous owner per conditions
life estate
passes to another on death of named party
remainder
named party to receive estate
reversion
previous owner to recieve estate
conventional life estate
limited to life tenant/ named party
ordinary
estate passes to remainderman or previous owner when life tenant dies
pur autre vie
limited to lifetime of another, passes to remainderman or previous owner
legal life estate (2)
created by operation of state law as oppsed to a property owners agreement
designed to protect family survivors
homestead
rights to one's principal residence
estate for years
specific, stated duration, per lease; expires at end of term
periodic
lease term renews automatically upon acceptance of rent ; renews indefinitely if lanlord accepts rent
estate at will
for indefinite period subject to rent payment; cancelable with notice
estate at sufferance
tenancy against landlord's will and without an agreement
tenancy in severalty
sole ownership of a freehold estate; passes to heirs
tenancy in common (2)
co tenants individually own undivided interests; no survivorship; can convey to outside parties
any ownership share possible
joint tenancy (2)
equal undivided interest jointly owned (survivorship)
requires 4 unities to create: time, title, intrest, possession
tenancy by the entireties
husband and wife own equal undivided interest; applies to same sex couples in some states
community property
joint property ownership by spouses as opposed to separate property
unity of ownership
owners hold single title jointly
equal ownership
owners always hold equal shares
transfer
may transfer to new ownerr as a tenancy in common intresr with remaining joint tenants
survivorship
on death, interest and rights pass to other joint tenants
creation
requires "four unities" PITT
(P)ossession
acquire same possessory rights
(I)nterest
acquire equal, undivided interests
(T)ime
acquire interest at same time
(T)itle
acquire interest with same deed
community
all other property earned or acquired during the marriage
separate (2)
aquired before marriage, gift or inheritance
aquired with seprate-property funds, income derived from separate property
trustor
gives title, deed, trust agreement to trustee
trustee
renders fiduciary duties to trustor and beneficiary
beneficiary
receives ownership benefits
living / testamenary trust
conveyance of real, personal property during one's lifetime
land trust
grantor and beneficiary are same party; beneficiary uses, controls property but does not appear on public records
condominiums
ownership of a unit of airspace plus an undivided interest in the common elements as tenant in common with other owners
cooperatives
ownership of; shares in owning corporation, proprietary lease in a unit
time shares
lease or ownership interest in property for periodic use on a scheduled basis
lease
tenant leases property per the lease's schedule
freehold
tenants in common own undivided interest, pay expenses per seprate agreement
encumbrances
non-possessory interests limiting legal owner's rights
appurtenant
attaches to the estate, dominant tenement's right to use or restrict adjacent
in gross
does not attach to the estate; personal- not transferrable, emds upon death of easement holder; commercial
license
personal right to use a property, non-transferrable, revocable, ceases upon death of owner
encroachment
unauthorized intrusions of one oner's real property onto another's; may require survey to detect
deed restrictions
conditions, covenants imposed on property by deed or subdivision plat; goes with property upon transfer
deed conditions
created upon property transfer; if violated, ownership may revert to previous owner
deed covenants
created by mutual agreement; enforeable by injuction
liens (2)
debts; claims attaching to real and personal property as security for debt
recorded on title effectively reducing equity in the amount of the lien
voluntary / involuntary
mortgage lien / tax lien
general / specifc lien
against any and all assets / against car or house
superior / junior
paid before juniors / paid after superiors by date of recording
deed in lieu of forclosure
"power of sale" granged to lender; no deficiency judgement; no redemtion period after sale
notice
how ownership is evidenced to the public
actual notice
knowledge acquired directly through demonstrable evidence
constructive notice
knowledge one could have obtained, as presumed by law; imparted by recording in public records
documentary stamp tax (transfer tax)
tax on conveyance of real property bases on price of property conveyed
heir
beneficiary or devisee
holograpic will
will in testor's handwritting
nuncupative will
oral will writtin by witnesses; generally not valid for property transfer
witnessed
in writing and two witnesses
validity of will
legal age; mentally competent; entitled "last will & testament;" signed, witnessed voluntary