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