Nevada Real Estate Exam Prep Solved 100%

Land - Answer Surface, all natural things attached to it, subsurface, and air above the surface. Real Estate - Answer land plus manmade permanent attatchments Real property - Answer Real estate plus "bundle of legal rights" Bundle of Rights - Answer PUTEE (possess, use, transfer, exclude, encumber) Physical characteristics of real estate - Answer immobility, indestructibility, heterogeneity Immobility - Answer Land cannot be moved from one site to another, its location is forever fixed. Indestructibility - Answer Land is permanent and cannot be destroyed since by definition it extends below ground and into the sky. Since land is permanent, it does not depreciate. Only improvements depreciate and are insurable. Non-homogeneity - Answer Land is non-homogeneous; no two parcels of land are exactly the same since they have a different location. physical aspects of real estate: land diagram - Answer natural attachment (tree), air, surface, subsurface physical aspects of real estate: real estate diagram - Answer land plus manmade attachments legal title - Answer Full legal ownership of property and the bundle of rights as they apply to it. Contrasts with equitable title. Equitable Title - Answer An interest that gives a lienholder or buyer the right to acquire legal title to a property if certain contractual conditions occur. Riparian Rights (rivers and streams) - Answer -navigable: own land to waters edge -NOT navigable: own underlying land to midpoint of stream Littoral Rights (lakes and seas) - Answer own to high water mark. memory tip - Answer "r": River Riparian "L": Lake Littoral Real property - Answer land, fixtures, attachments Personal property - Answer chattels, trade fixtures, emblements Differentiation criteria - Answer intention; adaptation; functionality; relationship of parties; contract provisions Conversion - Answer real to personal property-severance personal to real property-affixing Emblements - Answer plants or crops considered personal property Trade fixtures - Answer personal property items temporarily attached to real estate in order to conduct business; to be removed at some point Interests (possession) - Answer Estate Interests (non-possession) - Answer encumbrance and public interest Estates (Freehold) - Answer Fee simple: Absolute and defeasible, Life Estates: Conventional and legal Estates (leasehold) - Answer estate for years, periodic, estate at will, estate at sufferance fee simple freehold - Answer not limited by one's lifetime, absolute: highest form of ownership interest, defeasible: reverts to previous owner per conditions life estate freehold - Answer passes to another upon death of a named party, remainder: named party to receive estate, reversion: previous owner to receive estate conventional life estate freehold - Answer limited to lifetime of tenant or named party, pur autre vie: limited to lifetime of another, passes to remainder man or previous owner Legal life estate freehold - Answer created by operation of state law as opposed to a property owner's agreement, designmned to protect family survivors, homestead: rights to one's principal residence, laws protect homestead from creditors, family must occupy the homestead, cannot be conveyed by one spouse, endures over life of head of household, interests extinguished if property destroyed estate for years leasehold - Answer specific, stated duration, per lease periodic leasehold - Answer Lease term renews automatically upon acceptance of rent estate at will leasehold - Answer For indefinite period subject to rent payment; cancelable with notice estate at sufferance leasehold - Answer tenancy against landlord's will and without an agreement tenancy in severalty - Answer sole ownership tenancy in common - Answer co tenants individually own undivided interests, any ownership share possible, no survivorship, can convey to outside parties joint tenancy - Answer equal undivided interest jointly owned, survivorship, requires four unities. to create: time, title, interest, possession tenancy by the entireties - Answer Husband and wife own equal undivided interest Community Property - Answer joint property ownership by spouses as opposed to separate property unity of ownership - Answer Owners hold single title jointly Equal Ownership - Answer Owners always hold equal shares transfer - Answer may transfer to new owner as a tenancy in common interest with remaining joint tenants survivorship - Answer on death, interests and rights pass to other joint tenants creation - Answer requires four unities: PITT: 1. Possession: acquire same possessory rights 2. Interest: acquire equal, undivided interests 3. Time: acquire interests at same time 4. Title: acquire interests with same deed Community property: Seperate - Answer acquired before marriage, acquired by gift or inheritance, acquired with separate-property funds, income derived from separate property Community property - Answer all other property earned or acquired during the marriage estates in trust - Answer -trustor gives title, deed, trust agreement to trustee -trustee renders fiduciary duties to trustor and beneficiary -beneficiary receives ownership benefits Condominums (condos) - Answer -ownership of a unit of airspace plus an undivided interest in the common elements as tenant in common with other owners. -may be sold, encumbered or foreclosed without affecting other unit owners -creation: by developer's declaration Cooperatives - Answer ownership of shares in owning corporation, plus proprietary lease in a unit; corporation has sole, undivided ownership Appurtenant Easement - Answer -attaches to the estate -dominant tenements right to use or restrict adjacent servient tenement (access to public street) -by necessity, to landlocked owners -party wall easement in a shared structure; to not damage or destroy in Gross easement - Answer -does not attach to the estate -personal: not transferrable, ends upon death of easement holder -commercial: transferrable, granted to a business By Prescription Easement - Answer obtainable through continuous, open, adverse, use over a period license easement - Answer -personal right to use a property -does not attach -NON-Transferable -Revocable voluntary/ involuntary lien type - Answer mortgage lien/ tax lien general/ specific lien type - Answer against any & all assets/ against car or house superior/ junior lien type - Answer paid before juniors / paid after superiors by date of recording lien theory state - Answer lender of mortgaged property holds equitable title rather than legal title; borrower holds legal title title theory state - Answer lender holds legal title to the mortgaged property until the mortgagor satisfies the terms and obligations of the loan lien priority - Answer The order in which liens against a property are satisfied; the highest priority lien receives sale proceeds from a foreclosure before any other lien. Superior Liens by Rank - Answer Real Estate tax liens Special Assessment Liens Federal Estate Tax Liens State Inheritance Tax Liens Junior Liens by date of recording - Answer Federal Income Tax Liens Judgement Liens Mortgage Liens Vendors Liens Mechanics Liens (priority by date work performed) Mortgage lien foreclosure - Answer liquidation or transfer of collateral property by judicial, non-judicial, or strict foreclosure Judicial Foreclosure - Answer lawsuit and court-ordered public sale; deficiency judgments, redemption rights Non-Judicial Foreclosure - Answer "power of sale" granted to lender; no suit; no deficiency judgment; no redemption period after sale Strict Foreclosure - Answer court orders legal transfer of title directly to lender without public sale Deed in Lieu of Foreclosure - Answer defaulted borrower deeds property to lender to avoid foreclosure notice - Answer how ownership is evidenced to the public actual notice - Answer knowledge acquired directly though demonstrable evidence, e.g. presenting or inspecting a deed, visiting a party in possession constructive notice - Answer knowledge one could have obtained, as presumed by law; imparted by recording in public records "for all to see" voluntary transfer - Answer deed, will, and public grant Involuntary Transfer - Answer Descent (without will, with heirs) Escheat (without will nor heirs) Foreclosure (loan default) Eminent Domain (public good, government.) Adverse Possession (hostile, open use) Deed validity requirements - Answer 1. grantor 2. grantee 3. in writing 4. legal description 5. granting clause 6. consideration 7. grantor's signature 8. acknowledgment 9. delivery and acceptance Deed Clauses - Answer Premises (granting) Habendum (type of estate) Reddendum (restrictions) Tenendum (other property included) Deed Restrictions - Answer -single property use restriction as stipulated in a deed; may not be discriminatory -examples: minumum area of a residence, setbacks, limits on other structures, conducting commercial activities declaration restriction - Answer use restriction in multiple property declarations; enforced by court injunction Deed Condition - Answer usage restriction that can trigger REPOSSESSION by a previous owner if violated transfer tax - Answer -documentary stamp tax: tax on conveyance of real property based on price of property conveyed -facilitates and valorem assessment -payment evidenced on deed Dies testate with heirs - Answer Creditors-- Homestead -- heirs by WILL Dies intestate with heirs - Answer Creditors -- homestead -- heirs by LAWS of descent Dies intestate, no heirs - Answer creditors-- state by escheat Forms of evidence to prove marketable title & ownership - Answer title insurance, attorney's opinion of abstract, title certificates, Torrens registration gross lease - Answer landlord pays expenses; tenant pays higher rent than net net lease - Answer tenant pays some or all expenses; rent is less than gross percentage lease - Answer landlord receives rent minimum plus percentage of retailer's sales residential lease - Answer gross lease hybrid; short-term; uniform terms reflect landlord-tenant standards ground lease - Answer landlord owns and leases ground but does not own improvements proprietary lease - Answer for cooperative unit owners; indefinite term; assigned to new unit owner on sale leasing of rights - Answer leasehold transfer of rights for limited use; examples: air, mineral, water rights URLTA leases - Answer -clear lease terms -fair market rent -cannot waive rights URLTA Deposits: - Answer -limits on amounts -tenants right to interest -rules and deadlines for returning URLTA landlord obligations - Answer -bargain in good faith - provide maintenance & repairs -comply with building codes -provide safety and access -procedure for delivery of notices URLTA tenant obligations - Answer -maintain condition -abide by rules and regulations -no damage or abuse -abide by approved uses -no disturbance of other tenants Lease Termination - Answer -default -notice -property destruction -death Causes of lease termination - Answer term expiration, voluntary agreement, condemnation, or abandonment under certain conditions building codes - Answer a standard of construction of an improved property established by local government officials Certificate of Occupancy - Answer A document confirming that a newly constructed or renovated property has fully complied with all building codes and is ready for occupancy and use. concurrency - Answer A planning policy that requires developers to correct foreseen negative impacts of a development during the construction period of the project itself rather than afterwards condemnation - Answer 1. A decree taht a parcel of private property is to be taken for public use under the power of eminent domain 2. A government order that a is no longer fit for use and must be demolished deed restriction - Answer A provision in a deed that limits or places rules on how the deeded property may be used or improved. eminent domain - Answer a power of a government entity to force the sale of private property for subsequent public use land use control - Answer Regulation of how individual owners use property in a municipality or planning district. Control patterns are generally in accordance with a master plan. master plan - Answer An amalgamated land use plan for a municipality, county, or region which incorporates community opinion, the results of intensive research, and the various land use guidelines and regulations of the state. Acts as a blueprint for subsequent zoning ordinances and rulings. non-conforming use - Answer A legal or illegal land use that is not consistent with the current zoning ordinance police power - Answer a government's legal authority to create, regulate, tax and condemn real property in the interest of the public's health, safety, and welfare restriction - Answer A limitation on the use of a property imposed by deed, zoning, state statute, or public regulation. Special Exception - Answer A land use in conflict with current zoning that is authorized because of its perceived benefit to the public welfare. variance - Answer a land use that conflicts with current zoning but is authorized for certain reasons, including under hardship to comply and minimal negative impact. to leave it alone zoning ordinance - Answer A municipal land use regulation goal of land use control - Answer -preserve property values, promote highest and best use, safeguard public health , safety and welfare, control growth, incorporate community consensus -process: develop plan, create administration, authorize control the master plan - Answer long term growth and usage strategies; often required by state law local plans fuse municipal goals and needs with state and regional laws