Understanding Real and Personal Property: Classes, Categories, and Rights, Exams of Real Estate Management

Download Understanding Real and Personal Property: Classes, Categories, and Rights and more Exams Real Estate Management in PDF only on Docsity! 1 West Virginia Real Estate Moseley Test What are the classes of Property? - ANS; Personal Property and Real Property What is personal property? - ANS; Generally movable and unattached items. What is a trade fixture? - ANS; Personal property used for a person's business. (even if it attached to the real estate) What is Fructus Industriales? - ANS; Crops also known as chattle. What general categories does personal property fall under? - ANS; Intellectual, reputation, leases, partnership interests. Real Property - ANS; Everything within a specified block including mining rights, air rights, and general land usage rights. What are some common land improvements? - ANS; Houses, fences, fire pit What categories fall under real property? - ANS; Land, improvements, or real estate (the land plus the improvements.) What fall into fructus naturales? - ANS; Flowers, bushes, trees, and general landscaping. What is a fixture? - ANS; Things like fences and lights that were once movable personal property that were affixed to a property making them fixtures. What is the method of attachment? - ANS; How permanent and attached object is to the property. What is an adaptation? - ANS; When something is specifically made to work with a building and is now a fixture even if it isn't "attached" to a property What can an agreement do? - ANS; An agreement allows for a fixture to be removed. What is a relationship of parties? - ANS; When a renter makes improvements but takes the improvements with him replacing them with the originals when he leaves. Like upgrading a fan and then putting back the original when you leave. What is are rights in real property? - ANS; ownership rights in surface, air, and the dirt of a person's land. 2 What is included in the bundle of rights? - ANS; Possess property, control property, enjoy property, exclude others, encumber property, and disposal of property by sale. What are water rights? - ANS; The right to use the water that is on your property. What can limit the use of real property? - ANS; Zoning and deed restrictions What is an economic indicator? - ANS; A measurable ecinomic factor (such as real estate) that shows how the economy is or will do. What is the social impact of home ownership? - ANS; The more people who own there homes the more valuable the area is because the homes are better maintained. Whereas an area with a lot of renters is not as nice because they don't feel the need to take care of the property. What is the impact of supply and demand on the housing market? - ANS; The less that are available the more they are worth as long as there is a demand. What does heterogeneous real estate mean? - ANS; Every piece of real estate is different. What are demographics? - ANS; A way of putting people into groups such as population size, population growth, family size, age, and income. How does unemployment and income factor into supply and demand? - ANS; Less employment, means less money, which means less buyers. How does cost and availability of labor factor into supply and demand? - ANS; The more available the materials and labor for home building, the more homes built, and the value of the house lowers. How do governmental policies influence supply and demand. - ANS; The more allowances the government makes the easier and more affordable the housing becomes and so the prices go down but more people are capable of buying. What are the physical characteristics of land? - ANS; Immobility, indestructibility, and uniqueness. What does it mean that land is immobile? - ANS; It can not be moved What does it mean that the land is indestructible? - ANS; You can move land but there is always more land beneath. What does it mean that land is unique? - ANS; No two plots will ever be the same. 5 What is an easement? - ANS; It is limited right to use someone else's land. What is the difference between an easement and a license? - ANS; A license is when one person gives another person a personal privilege. What is an easement in gross? - ANS; When the easement is attached to a particular person. What is an easement on appurtenant? - ANS; When an easement is enjoyed by the owner of the land too. What is an express grant? - ANS; An express easement that is conveyed in writing. What is an easement by necessity? - ANS; When it becomes necessary for a person to use anther person's land. Often these easements are used by the government. What is an easement by implication? - ANS; If someone has been doing something on someone else's land openly for a long time then it could be that there is implied permission. What is an easement by prescription? - ANS; When use of land is harmful to the owner but the person has been using the land in access of twenty years. What is an agreement? - ANS; Something created by written consent. What is an easement by condemnation? - ANS; This happens when the government uses eminent domain. How is an easement terminated? - ANS; Termination happens when the need for the easement no longer exists. What is an encroachment? - ANS; When a physical intrusion encumbers someone else's land. What is an estate in land? - ANS; Describes the extent of ownership interest in real property. What is a freehold estate? - ANS; When someone has pure ownership. What is a fee estate? - ANS; Highest and most unrestricted ownership interest in land. What is a life estate? - ANS; An estate conveyed to a person for the duration of someone's life. 6 What is a life tenant? - ANS; When a tenant holds the property for the duration of his life. What is pur autre vie? - ANS; Means for another's life. Measures the life estate by a third person's life. What are future estates? - ANS; When it is certain that in the future the estate will be given. What is a remainder estate? - ANS; Estate that automatically arises after an existing estate terminates. What is a revision estate? - ANS; An estate that returns to the grantor when the grantee no longer uses the property. What is a non-freehold estate? - ANS; Conveys the right of possession without the right of ownership for a pre-defined period of time. What is a statutory estate? - ANS; An estate created by law including a dower or a curtesy. What is a dower or curtesy? - ANS; Legal right of limited inheritance by a wife or husband. What is a community property? - ANS; The theory that a husband and wife have the same shares in property. What is a homestead? - ANS; Laws protecting spouses of homeowners from property debts. What is sole ownership? - ANS; Individual ownership of real property. What is concurrent ownership? - ANS; When there is co-ownership falling into joint tenancy, tenancy in common, and tenancy in the entireties. What is joint tenancy? - ANS; When the title is held by multiple people. When one person dies the other automatically gets the other person's interest in the property. What is tenancy in common? - ANS; Two people have equal shares in property. Does not have right of survivorship. What is tenancy by the entirety? - ANS; When a husband and wife are a single entity and both have entire ownership of a property. What is a lease? - ANS; Transfers the right of exclusive use and possession for a specified period of time. 7 What is an estate for years? - ANS; Is a lease with a defined beginning and a defined end date. What is an estate from year to year? - ANS; When a lease automatically renews until one or the other of the parties involved decides to terminate. What is the estate at will? - ANS; No defined end date of lease and can be terminated by either the land lord or tenant. What is an estate at sufferance? - ANS; When a tenet is still on property after he is lawfully allowed to. What is the bundle of rights? - ANS; possess, control, enjoy, exclude, encumber, and dispose. What is marketable title? - ANS; The title is free from defects. What is equitable title? - ANS; The right to receive legal title. What are title searches? - ANS; A physical examination of documents. What is an abstract? - ANS; A condensed history of title. What is title by estoppel? - ANS; The apparent owner failed to provide proper public notice. What is a simple will? - ANS; Outright distribution of assets. What is testamentary trust will? - ANS; One or more trusts set up to distribute property. What is a holographic will? - ANS; An unwitnessed will. What is the pour over will? - ANS; leaves some or all of testator's assets. What is an oral will? - ANS; A will that is spoken (not legally binding in VA) What is living will? - ANS; Instructs doctors with life support. R What is testate? - ANS; When a person has a will. What is intestate? - ANS; Without a will. What is a living trust? - ANS; Names a trustee to manage the assets during a lifetime. 10 For internationally buyers what percent of the total price is withheld until the next tax period? - ANS; %10 What is probate? - ANS; When someone dies and the court has to deal with it. What is the probate estate? - ANS; Contains all the property of a deceased person. What is police power? - ANS; The government authority to create laws. What is eminent domain? - ANS; When the government possesses property to use "for the good of the community" What is escheat? - ANS; When a property goes to the government because there are no heirs. What is due process? - ANS; Constitutional limits on the government. What is zoning? - ANS; Divides a city into districts and limits the uses of land so they are like the lands around them. What is a restrictive covenant? - ANS; Usually rules imposed by a developer to regulate the communities. What is an HOA? - ANS; HOA stands for home owners association. What is property management? - ANS; When a home owner turns the management of their rental property over to a brokerage. What disclosures must be maid about lead based paint. - ANS; If you sell or lease a property built before 1978 you must disclose any knowledge of lead based paint in a home. What is a gross lease? - ANS; A flat lease where the rent is pre-determined. The owner pays for taxes and repairs. What is a net lease? - ANS; There is a pre-determined lease and renters also pay for shares of the expenses. What is a percentage lease? - ANS; Base rent but when a tenant makes more than a predetermined amount of money a percent of the extra goes to the land lord. What is a graduated lease? - ANS; Rent increases by percentages every year. What is a ground/land lease? - ANS; Land is leased and the tenant may build but whatever is installed must stay. 11 What is a property lease? - ANS; No fixed rent the tenant pays for parts of the costs of the land. What is a PUD? - ANS; Planned unit developments are a group of homes whose owners pay a small association fee in order to maintain the community. What does HUD stand for? - ANS; Housing and urban development. What is the federal interstate land sale full disclosure act? - ANS; An act that requires land developers to register subdivisions. What is a property report for? - ANS; Property reports talk about proximity to other communities, mortgages/liens, escrows, recreational facilities, services, utilities, etc. What is the ADA? - ANS; The Americans with disabilities act. What things must be done to create a contract? - ANS; offer/acceptance, consideration, and lack of defenses. What is an offer? - ANS; A promise from one party to another to enter into a binding agreement under specified terms. What is a lapse of time? - ANS; When something expires on its own due to inaction. What is the difference between voidable and void. - ANS; Voidable is when you have reasonable grounds to void. Void is when the contract is no longer valid. What is an estoppel? - ANS; Legalities that stop a person from canceling a contract. What is the difference between a unilateral contract and a bilateral contract? - ANS; In a unilateral contract one party promises to perform. In a bilateral contract both parties promise to perform. What is a novation? - ANS; When parties decided to substatute one agreement with another that fufills part or all of the previous agreement. What is specific performance? - ANS; When the court makes the breaching party followthrough with a contract. What is lapse of time? - ANS; When a deadline passes and a contract automatically expires. What is consideration? - ANS; The beginning of the bargaining. What is an estoppel? - ANS; Legalities that stop people from just canceling contracts and causes them to follow through on promises. 12 What is the difference between a unilateral and a bilateral contract? - ANS; A unilateral contract is when one side promises to perform under specified conditions. A bilateral contract is when two parties are obligated to act. What is executory? - ANS; When the parties reach an agreement but still have to act on it. When is a contract executed? - ANS; When the contract has been fulfilled. What does time is of the essence mean? - ANS; When the parties have agreed upon a defined time. What is novation? - ANS; When parties agree to substatue one agreement for another. What is an open listing? - ANS; An agreement between a seller and many brokerages. Whoever makes the sale gets the comission. What is an exclusive listing? - ANS; When only one brokerage has a listing. What is earnest money? - ANS; A cash deposit that generally accompanies an offer. What is a novation? - ANS; When parties decided to substatute one agreement with another that fufills part or all of the previous agreement.