Real Estate 306 Exam 1
Co ownership types: - - Condominium
- Cooperative
- Timeshare
Land - may include more than the earth, may also include improvements to the land
personal property - things that are movable & not permanently affixed to the land
Ownership rights - Real estate provides people with this "bundle of rights"
- Rights to:
Use/Occupy
Sell
Lease
Give away
Do all or none
"real property" vs. real estate
security
privacy
location
User markets - characterized by competition among users for physical locations and space
CApital markets - Serve to allocate financial resources among households & firms requiring funds
,Property markets - Determine the required property-specific investment returns, property values,
capitalization rates & construction feasibility
Capitalization rate - The ratio of a property's annual net income to its value
- fundamental measure used in Real estate
Capitalization rate equation - = Net operating income Yr. 1 / total value of property
Fee simple estate - - Implies absolute ownership (all sticks in the bundle) limited by taxation,
eminent domain, police powers, escheat
Easements - Right to use land for specific/ limited purpose
Raw land - large land area with no improvements
appurtenant: - dominant - benefits from easement
servient - constrained/limited by easement
Affirmative easement: - Gives dominant parcel some intrusive use of servient parcel
- driveway or access right of way
- Sewer line
- Drainage
- Common Wall
Negative easement: - allows no instrusion onto servient parcel
- Light & air easement
- Scenic easement
In gross easement: - Right to use land unrelated to parcels, only servient, no dominant involved
- lay pipeline, powerline
, - run irrigation ditch
- billboard
- harvest timber
* transferrable from land title *
Restrictive covenants: - Covenants that impose restrictions on land use; created at conveyance of
land to a new owner.
* need to know before purchase, alters how you can use land
Restrictive covenants examples - - setback lines, (distance from road), height restrictions
- Minimum floor area
- No freestanding structures
- No chain link fences
- No RVs/ Boats parked in street view
- No external antenna
- Use professional lawn service
property - refers to anything that can be owned or possessed
Forms of Direct Co-Ownership - - Tenancy in common
- Joint tenancy
- Tenancy by entirety
- Condominium
- Timeshare
Tenancy in common - - Default form of ownership, if no further direction is given
- undivided share of the whole
Co ownership types: - - Condominium
- Cooperative
- Timeshare
Land - may include more than the earth, may also include improvements to the land
personal property - things that are movable & not permanently affixed to the land
Ownership rights - Real estate provides people with this "bundle of rights"
- Rights to:
Use/Occupy
Sell
Lease
Give away
Do all or none
"real property" vs. real estate
security
privacy
location
User markets - characterized by competition among users for physical locations and space
CApital markets - Serve to allocate financial resources among households & firms requiring funds
,Property markets - Determine the required property-specific investment returns, property values,
capitalization rates & construction feasibility
Capitalization rate - The ratio of a property's annual net income to its value
- fundamental measure used in Real estate
Capitalization rate equation - = Net operating income Yr. 1 / total value of property
Fee simple estate - - Implies absolute ownership (all sticks in the bundle) limited by taxation,
eminent domain, police powers, escheat
Easements - Right to use land for specific/ limited purpose
Raw land - large land area with no improvements
appurtenant: - dominant - benefits from easement
servient - constrained/limited by easement
Affirmative easement: - Gives dominant parcel some intrusive use of servient parcel
- driveway or access right of way
- Sewer line
- Drainage
- Common Wall
Negative easement: - allows no instrusion onto servient parcel
- Light & air easement
- Scenic easement
In gross easement: - Right to use land unrelated to parcels, only servient, no dominant involved
- lay pipeline, powerline
, - run irrigation ditch
- billboard
- harvest timber
* transferrable from land title *
Restrictive covenants: - Covenants that impose restrictions on land use; created at conveyance of
land to a new owner.
* need to know before purchase, alters how you can use land
Restrictive covenants examples - - setback lines, (distance from road), height restrictions
- Minimum floor area
- No freestanding structures
- No chain link fences
- No RVs/ Boats parked in street view
- No external antenna
- Use professional lawn service
property - refers to anything that can be owned or possessed
Forms of Direct Co-Ownership - - Tenancy in common
- Joint tenancy
- Tenancy by entirety
- Condominium
- Timeshare
Tenancy in common - - Default form of ownership, if no further direction is given
- undivided share of the whole
