RE Exam Cards.txt

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RE Exam Cards.txt
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2012-06-25 01:47:16
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RE Exam
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RE Exam A1,2,3,8,9
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  1. Ad Valorem
    Based on value of property
  2. Bundle of Rights
    Possession, Encumbrance, Exclusion, Transfer, Use, Not Destroy
  3. Legal Test of Fixtures
    Method of attachment, Agreement, Relationship, Intent, Adaptability
  4. Hereditaments
    Any property that can be inherited
  5. Transfer Personal Property using…
    Bill of Sale
  6. Another way of saying Personal Property is…
    Chattel or Personalty
  7. Incorporeal is…
    Non-physical or non-tangible property (right of way, hereditaments)
  8. Corporeal is…
    Physical or tangible property (buildings, land)
  9. Incorporeal rights that "run with the land" are called…
    Appurtenances
  10. Government contains what 4 rights over property?
    Police Power, Eminent Domain, Taxation, Escheat
  11. What is Police Power?
    Right to regulate property or confiscate temporarily in an emergency
  12. What is Eminent Domain?
    Condemn private property with just compensation
  13. What is Escheat?
    Taking property if owner dies with a will or heir
  14. Master Plans regulate…
    overall community growth
  15. Neighborhood Plans regulate…
    Molding growth of contiguous areas
  16. Property taxes are collected by…
    County Treasurer
  17. Prior Appropriation
    First in time has first in right
  18. Variance is…
    Changing zoning for one property
  19. Conditional Use Permit
    Leave zoning but use part of property for another zone
  20. Freehold is…
    Right to hold property forever and inheritable (Fee Estate)
  21. Less than freehold is…
    Right to hold property for a period of time with expiration date (lease)
  22. Fee simple absolute is…
    Wholly owned, transferable, and inheritable
  23. Defeasible Fee is…
    Property goes back to owner if violation occurs
  24. Fee Determinable is…
    Automatic return of property if a violation occurs
  25. Fee Conditional is…
    Need to prove violation occurred to return property
  26. Fee tail is…
    Property must go to direct descendant (not legal in AZ)
  27. Life Estates is…
    Hold property for a limited time and is not inheritable
  28. Pur Autre Vie is…
    Limited time based on a life of another
  29. Reversion is…
    If grantee dies, goes back to grantor
  30. Remainder is…
    If grantee dies, goes to someone else
  31. Rights of Life Tenant is…
    Use, Possess, and Encumber
  32. Homestead is…
    $150k of equity protection against unexpected liens and judgments off primary residence
  33. Leasehold Estates are…
    Leases with beginning and end
  34. Estate for years is…
    Lease for a specific time
  35. Estate from period to period
    Open-ended lease (e.g. month to month)
  36. Estate at will
    Lease that either party can walk away at any time
  37. Statute of Frauds states…
    To be enforceable, contracts must be in writing, except for leases less than 1 year
  38. A valid lease requires…
    In writing, signed by both parties, use the word lease, describe consideration, description of premises, period of time of occupancy, be delivered and accepted
  39. Gross Lease
    Lessee pays rent, Lessor pays everything else
  40. Net Lease
    Lessee pays rent, taxes, and assessments, Lessor pays everything else
  41. Percentage Lease
    % of gross sales with a minimum
  42. Positive leasehold
    When contract rent is less than economic (market) rent
  43. Negative leasehold
    When contract rent is higher than economic (market) rent
  44. Easement
    Right acquired to use another's land for a specific purpose
  45. Easement in gross
    Interest/right to a person, not property
  46. Prescriptive Easement
    Termination of easement due to 5 years of non-use
  47. Tenancy in Common
    2 or more people/corporations owning equal/unequal share of a property, property goes to heir at death, can sell at any time with no notification
  48. Joint Tenancy's 4 Unities
    Possess, Interest, Title, Time (all must be equal)
  49. Patent Deed
    Deed given by sovereign nation to person/company
  50. What is a deed?
    Document to transfer title from one party to another
  51. What is a title?
    A bundle of rights associated with the property
  52. Valuable consideration
    Exchange with money
  53. Good consideration
    Exchange for love and affection
  54. Habendum clause
    To have and to hold - you can have it until you die, then reverts back
  55. Covenant of Seizin
    Grantor has right to convey
  56. Covenant of Quiet Enjoyment
    Grantor promises to defend against claims by a third party
  57. Covenant against Encumbrances
    Grantor promises property is free and clear from encumbrances unless specifically revealed
  58. Further Assurances Warranty
    Grantor will provide clear title
  59. Warranty Forever
    Grantor will defend Grantee's title forever
  60. Bargain and Sale Deed
    Contains all 3 Covenants, but no warranties, usually involuntary alienation
  61. Special Warranty Deed
    Contains all 3 Covenants and Further Assurance Warranty
  62. General Warranty Deed
    Contains all 3 Covenants and both warranties
  63. Quit Claim Deed
    Removes "clouds on title" or interest in property, no covenants or warranties
  64. Gift Deed
    Type of Quit Claim Deed used between relatives, usually good consideration
  65. Disclaimer Deed
    Spouse loses interest in property
  66. Affidavit of Value
    Alerts of sale price, signed by buyer and seller, paid for by seller, recorded by buyer with deed
  67. Quality of claim to Title - weakest to strongest
    No Deed and possession, unrecorded deed and no possession, recorded deed and no possession, unrecorded deed and possession, recorded deed and possession
  68. Torrens' certificate
    Register title only, no title insurance (not in AZ)
  69. Title insurance
    Guarantees clean title, insures against bad title
  70. Owner's Title Insurance Policy
    Paid for by seller to benefit buyer, insures against errors by title insurance company, hidden defects, incorrectly given marital status
  71. Lender's Title Insurance Policy (ALTA)
    Paid by borrower for lender, insures against right os parties in possessions, unrecorded or mechanic's liens, questions of survey
  72. Subrogation
    Give up legal rights and disavow future claims
  73. Erosion
    Dirt going away
  74. Avulsion
    Dirt going away quickly and violently
  75. Accretion
    Increased land due to river/stream deposits
  76. Reliction
    Increased land due to drying out/receding of river
  77. Adverse Possession
    Acquired property without owner's permission (squatter rights)
  78. Prescription Suit
    Lawsuit to acquire property if there is continuous or tacking use for 10+ years, is hostile, open, and notorious
  79. Intestate Succession
    No will, administrator assigned by court to distribute property
  80. Testate Succession
    Will in place, distribution of property by personal representative named by deceased
  81. Holographic Will
    Handwritten and signed, no witnesses needed
  82. Nuncupative Will
    Oral will, not in AZ
  83. Codicil
    Addition to formal will, typed, signed, and witnessed by 2 people who are not heirs
  84. IRV
    NOI over Value times Cap Rate
  85. Potential Gross Income
    Based on full occupancy and all concessions
  86. NOI
    Potential Gross Income - Vacancies - Bad Debt - Operating Expenses
  87. Effective Gross Income
    Potential Gross Income - Vacancies - Bad Debt
  88. What are Operating Expenses
    Taxes, Insurance, Management, Maintenance
  89. What are not Operating Expenses
    Depreciation, Income Tax (Personal), Debt Service (P&I), Improvements
  90. Cap Rate
    Return on investment in land + return on investment in improvements + return of investment in improvements
  91. Higher Cap Rate favors…
    The Buyer
  92. Lower Cap Rate favors…
    The Seller
  93. Cash on Cash
    % return on $ put in = Cash Flow/$ put in
  94. Cash Flow
    NOI - Debt Service
  95. Gross Rent Multiplier
    Sales price/gross rent
  96. Indentures
    Secured bonds - guarantees return and timeframe
  97. Debentures
    Unsecured bonds - no guarantee on returns
  98. UDAGs
    Urban Development Action Grant to promote revitalization of commercial area
  99. CDBGs
    Community Development Clock Grants to promote revitalization of residential area
  100. SBA Loans
    Must create new jobs, allows higher than normal loan-to-value, more flexible loan terms
  101. Commercial Lending Chronology
    Land Loans, Acquisition and Development Loans, Construction Loans, Bridge Loans, Permanent Loans
  102. Pro Forma Statement
    Financial projections of property
  103. UCC-1
    Proof of debt against personal property
  104. UCC-3
    Clears lien against personal property
  105. Dred Scott v. Sanford
    Former slave could not receive citizenship
  106. Civil Rights Act
    Prohibited racial discrimination, including in sale of property
  107. Brown v. Board of Education
    Overruled separate but equal, lead to desegregation
  108. Blockbusting
    Wrong people moving in, better sell now
  109. Redlining
    Not providing loans in a certain area
  110. Steering
    Influencing clients to go to a specific neighborhood
  111. Equal Opportunity Act
    Prohibits credit discrimination on the basis of color, race, religion, marital status, gender, nationality, age, and dependency on public assistance
  112. Security Deposit Cap
    1.5 times rent unless agreed to by both parties
  113. When should a security deposit be returned by?
    14 days from written notice, otherwise 2 times penalty
  114. Constructive eviction
    If tenant is not at fault for habitable premises, tenant can terminate lease
  115. Writ of restitution
    Landlord can take possession back of property due to non-payment of rent
  116. Distraint
    Can seize personal property in lieu of rent
  117. Property Management Functions
    Budgeting, setting rental rates, selecting tenants, collecting rent, maintenance, comply with laws
  118. Condos are…
    Horizontal property regimes, own space between ceiling and floor
  119. Cooperatives are…
    Corporations own property, individuals own shares in cooperative and proprietary lease to live in property

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