Real Estate 306 Exam 1 Questions With
Correct Answers.
Property - answer✔✔refers to anything that can be owned or possessed
Land - answer✔✔may include more than the earth, may also include improvements to the land
Raw land - answer✔✔large land area with no improvements
personal property - answer✔✔things that are movable & not permanently affixed to the land
Ownership rights - answer✔✔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 - answer✔✔characterized by competition among users for physical locations and
space
CApital markets - answer✔✔Serve to allocate financial resources among households & firms
requiring funds
Property markets - answer✔✔Determine the required property-specific investment returns,
property values, capitalization rates & construction feasibility
Capitalization rate equation - answer✔✔= Net operating income Yr. 1 / total value of property
Fee simple estate - answer✔✔- Implies absolute ownership (all sticks in the bundle) limited by
taxation, eminent domain, police powers, escheat
Easements - answer✔✔Right to use land for specific/ limited purpose
appurtenant: - answer✔✔dominant - benefits from easement
servient - constrained/limited by easement
Affirmative easement: - answer✔✔Gives dominant parcel some intrusive use of servient parcel
- driveway or access right of way
- Sewer line
- Drainage
- Common Wall
Negative easement: - answer✔✔allows no instrusion onto servient parcel
- Light & air easement
- Scenic easement
In gross easement: - answer✔✔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: - answer✔✔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
Forms of Direct Co-Ownership - answer✔✔- Tenancy in common
- Joint tenancy
- Tenancy by entirety
- Condominium
- Timeshare
Tenancy in common - answer✔✔- Default form of ownership, if no further direction is given
- undivided share of the whole
- Inheritance not specific
Joint tenancy - answer✔✔Undivided share of the whole, plus "survivorship" rights (restricts
inheritance to heirs of the last surviving owner)
- Not available in every state
Tenancy by the Entirety - answer✔✔- Joint tenancy for husband & wife
Co ownership types: - answer✔✔- Condominium
- Cooperative
- Timeshare
Condominium - answer✔✔sole ownership of "unit" and tenancy in common ownership of
"common elements" - the definitions of Unit and Common elements are found in the condomium
"declaration
Cooperative - answer✔✔Personal property (shares in a corporation and the rights they convey)
"deemed" to be real estate
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