Real Estate

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  1. Property is defined as?
    A Bundle of Rights(Possess, Use, Encumber, Dispose of, To Exclude)
  2. Freehold Estate
    • an Estate that endures for a period is not fixed or ascertained by a specified limit of time. 
    • Different Types:
    • 1) Fee Simple
    • 2) Life Estate
    • 3) Estate in Reversion
    • 4) Estate in Remainder
  3. Fee Simple
    • Greatest interest a person can have in land.
    • Indefinite duration.

    • Different Types:
    • 1) Fee Simple Absolute
    • 2) Fee Simple Defeasible
  4. Fee Simple Absolute
    Owner holds without any qualifications or limitations
  5. Fee Simple Defeasible
    Owner holds subject to special condition.

    • Different Conditions:
    • 1) Subsequent: Deal First, Condition Later
    • 2) Precedent: Condition First, Deal Later
  6. Encumbrance
    • A Charge against Property. 
    • I.E. - loans, interests
  7. Life Estate
    estate limited in duration to life of its owner, or designated persons.

    May sell, lease, or encumber it only for the duration of the life estate.
  8. Estate in Reversion
    When designated person dies, title return to original grantor or heirs.
  9. Estate in Remainder
    Title held by the heir left by the death of designated person.
  10. Less-Than Freehold/ Nonfreehold Estate
    estate owned by tenant who rents or leases property.
  11. Lessor
  12. Lessee
  13. Leasehold 
    an interest in real property, but still only a form of personal property
  14. Types of Leasehold Estate

    • 1) Estate for Years
    • 2) Estate from Period to Period
    • 3) Tenancy at Will
    • 4) Estate at Sufferance
  15. Estate for Years(Lease)
    • definite period that is fixed in advance.
    • I.E. Days, Weeks, Months, or Years
  16. Estate from Period to Period (Rent)
    • One Continues for successive periods of the same length
    • I.E. Month to Month
  17. Tenancy at Will
    confers a right to possession for an indefinite period of time and no express reservation of rent.
  18. Estate at Sufferance 
    refusal to leave premises
  19. Requisites to create a leasehold
    • 1. Names of Parties
    • 2. Description of premises
    • 3. Amount of rental payments with time and manner of payment
    • 4. Length of Lease (Agricultural limited to 51 years)
    • 5. If length is more that one year, must be in writing
    • 6. If in writing, must be signed by lessor. Lessee usually signs but acceptance of lease terms is same as signature.
    • 7. To Record
  20. Fee Simple is also known as
    Estate of Inheritance/ Perpetual Estate
  21. The Greatest Interest a person can have in land...
    Freehold Estate
  22. Agent has the right to hire non-licensed assistance
  23. Lease Provisions - Security Deposits
    On a lease of residential property with a term of less than 6 months...Landlord cannot collect more...

    a. Unfurnished property - equivalent to two month's rent.

    b. Furnished property - equivalent to three month's rent.

    c. Commercial - no limit
  24. Discrimination
    prohibit based on race, religion, ethnic background, sex, marital status, physical disability and in some cases, families with children. Contact the following...

    1. State of California Department of Fair Employment and Housing

    2. U.S. Department of Housing and Urban Development. (HUD)

    3. Private attorney.
  25. Quiet Enjoyment and Possession 
    every lease has an implied covenant, to place tenant in quiet enjoyment and possession of the property.
  26. Tenant's Rights and Recourses
    If defects are not corrected in a reasonable period (30 days). Tenants can...

    Abandon the premises and under the doctrine of "Constructive Eviction" (Landlord's fault)
  27. Assignment
    Transfer of entire leasehold (100% Title Transfer)
  28. Sublease
    Transfer of less than the entire leasehold.

    Subleassor can discriminate.
  29. Termination of the Lease
    • 1. Written Notice - 30 day notice
    • 2. Surrender or Abandonment of Premises
    • 3. Breach of Covenant of Quiet Enjoyment and Possession
    • 4. Condemnation - premises taken Eminent Domain (Public Uses)
    • 6. Court Action - ousted for nonpayment of rent or for breach of contract. Unlawful Detainer.
  30. Default in Rental Payments
    If tenant fails to pay rent on due date...

    Serve a "3 Day Notice to Pay or Quit", file "Unlawful Detainer"
  31. Type of Leases
    • 1. Gross, Flat, Fixed or Straight Lease
    • 2. Graduated Lease (Commercial Lease) - varying rental rate
    •     a. Escalator clause - provides for increase or decrease in rent.
    • 3. Sandwich Lease
    • 4. Net Lease - Lessee will pay all or some of variable expenses such as taxes, insurance...(Tripple Net)
    • 5. Percentage Lease - Rental is based on amount of business done by lessee; The higher the gross recipts, the lower the rate.
  32. Real Property
    Land, anything affixed to it, that which is Incidental or Appurtenant to it and that which is immovable by law.
  33. Land - Water and Water Rights
    • 1. Riparian Rights; River/Stream
    • 2. Littoral Rights; Ocean/Sea
  34. Anything Affixed to the Land
    • A. Buildings
    • B. Things attached by Roots
    •      1. Natural Growth - Real Property until severed
    •      2. Emblements or Industrial Crops
    • C. Fixures
    • D. Trade Fixures
  35. Fixures
    personal property becomes part of the real property.

    • Includes
    • 1. Manner of Attachment or Annexation - Cement, bots, nails, screws)
    • 2. Adaptability - custom made for particular building
    • 3. Relationship of Parties
    • 4. Intention of Parties
    • 5. Agreement of Parties
  36. Trade Fixures
    maybe removed if it can be done without damage to premises. Trade fixtures are personal property.
  37. That which is incidental or appurtenant to it
    Rights that "runs with the land"

    • A. Easements 
    • B. Water Rights
    • C. Share of Stock in a mutual water company
Card Set:
Real Estate
2013-01-22 08:04:22

Chapter 1
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