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80 Cards in this Set
- Front
- Back
Differences between real and personal property? |
Real property is immovable, indestructible, no two parcels are the same, is scarce, can be improved upon, & location affects its value. |
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Fixtures are always considered.... |
Real Property |
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Tests of a fixture: |
How it is attached, whether property was adapted around the item, owners intent. |
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__________ are never considered real property. |
Trade Fixtures |
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Most accurate form of property measurement? |
Metes and Bounds. |
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Metes & Bounds establishes... |
Property boundary lines. |
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Subdivisions are described using this method. |
Lot, Block & Plat |
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Means you have ownership interest in a property. |
Freehold Estate |
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Fee Simple |
Freehold Estate, also called fee title or just fee |
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Fee Simple Defeasible |
Fee can be defeated because of an attached condition. Fee simple determinable, Fee simple with condition subsequent or precedent, Life estate, Life pur autre vie. |
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Fee Simple Determinable |
Automatic reversion |
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Fee Simple with condition subsequent |
Carries right of re entry |
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Fee Simple with condition precedent |
Future Interest |
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Life Estate |
Ownership interest based on the life of the grantee. It can be sold, but not willed or inherited. |
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Life Estate Pur Autre Vie |
Based on the life of someone other than the original grantee, and can be inherited. |
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Non- Freehold Estate |
Is a lease. No ownership. |
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4 Property Rights |
Possession, Use & Control, Quiet Enjoyment, Dispostition |
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Quiet Enjoyment has to do with? |
Claims against title, not noise. |
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Severalty |
Title ownership by one person, or corporation. |
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Joint Tenancy |
Established by PITT. Same Possession, interest, time, title. Each person can sell their interest without the consent of the others, but not sell the property. Partition action required to do so. |
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Tenants in Common |
Think Roomates |
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Tenants by Entirety |
Must be married. Established by PITT. Cannot sell interest without consent of the spouse. |
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Claim title through Adverse Possession requires COHEN: |
continuous, open, hostile, exclusive, & notorious. In utah the time required is 7 years. |
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________ ________ action is a lawsuit to settle ownership claims against the title. |
Quiet Title Action |
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Government controls property by: |
Eminant Domain, Police Power, Zoning, Escheat |
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Individuals control property through: |
Deed restrictions, Easements |
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Ways to create an easement: |
Mutual agreement, deed itself, eminant domain, implication, necessity (land locked), prescription (adverse use). |
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Ways to terminate an easement: |
Mutual agreement, merger of two parcels, prescription (stop use), no longer a purpose, improper use. |
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Voluntary Title Defects |
Mortgages, trust deeds, easements |
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Involuntary Title Defects |
Mechanic Liens, encroachments, judgments, taxes, prescriptive easements. |
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Types of Deeds |
Quit Claim, Bargain & Sale, General Warranty, Special Warranty, Probate, Forclosure, Gift, Patent (original). |
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Probate Deeds |
Administrators - intestate, court assigned Executors - testate, assigned in will |
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Forclosure Deeds |
Sheriffs- title theory states, judicial Trustees - lien theory states, non-judicial Tax deed |
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Essential elements to make a deed valid: |
Intent, Grantor signature, Names of the parties, Property Description, Consideration, In Writing, Delivered (actual, constructive, 3rd party) |
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Deed DOES NOT require these to be valid: |
Recorded, Acknowledged (notarized), date, habendum clause |
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5 covenants to warranty deed: |
Seizen, Againt Encumbrances, Quiet Enjoyment, Futher Assistance, Warranty Forever |
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All value is comprised of: |
DUST: Demand, Utility, Scarcity, Transferability |
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Types of value are: |
Value in exchange (money, buyer) Value in use (car, seller) Fair Market Value (parties agree) Market Price (actual selling price) Cost (price originally paid) |
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Principles in valuing property: |
Highest and Best Use, Substitution, Conformity (Progression/Regression, Contribution, Neighborhood Cycle, Anticipation, Competition, Situs |
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Highest and Best Use |
What is the property zoned for |
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Substitution |
No reasonable person will pay more for the same property. (Sold Comparables) |
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Conformity |
Progression/Regression. Are you the small home in lg neighborhood or lg home in small neighborhood. |
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Contribution |
Improvements must add their cost value to the property. (pools) |
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Neighborhood Cycle |
Growth/Integration, Equilibrium, Deterioration/Decay. Where is the prop in the cycle? |
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Competition |
Active Comparables |
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Situs |
Location, location, location |
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Types of appraisal approaches: |
Market Data, Cost Reproduction, Income or Capitalization |
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Market Data Approach |
Comparison approach. Compare similar properties that have sold in the area. |
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Cost Reproduction Approach |
Cost replacement approach. what would it cost to rebuild the property today? Land + Improvements - depreciation = Value. |
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Income Capitalization Approach |
What is the value based on the present worth of future income. Commercial. |
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What causes Depreciation? |
Physical deterioration, Functional Obsolescence, Economic or External Obsolescence. |
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Physical Deterioration |
Leaky roof, cracked foundation |
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Functional Obsolesence |
Everything works, but no one wants it. Bad floor plan, not enough outlets etc. |
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Economic Obsolesence |
or External obsolesence, happen outside the boundaries of the property. (noise, odors) Usually incurable. |
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Types of appraisal forms |
Letter (1page, commercial), Short Form (checklist, lenders, efficiency), Narrative ( comprehensive report on the property.) |
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Every appraisal must contain the following: |
Date, Property Description, Estimate of Value, Appraiser signature. |
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Essential Elements that make a contract valid: |
MCCL: Mutual assent, Consideration, Competency, Legal Purpose |
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Valid Contract |
All of the essential elements are present. |
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Void/Invalid Contract |
Any of the essential elements are missing. |
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Voidable Contract |
Contracts created under: Duress, Undue Influence, Menace, Minor |
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If contract violates the Statute of Frauds it is: |
Unenforceable |
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Statute of Frauds requires the following contracts to be in writing: |
REPC, Lease agreements over 1yr, Listing agreements that contain commissions, personal prop contracts over $500, any contract that takes over 1yr to perform, any change to a contract that is gov by statute of frauds. |
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Executed |
nnn |
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Executory |
nnn |
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Unilateral |
Promise for performance. (option not excercised, broker agent contract) |
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Bilateral |
Promise for promise. (exercised option) |
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Parole Evidence Rule |
Written over oral when tied to the original agreement. |
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Types of fraud |
Positive - Non Disclosure Negative - Misrepresentation Constructive - Negligent/Non Intentional |
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Puffing |
Matter of opinion not fact. Exaggerating. |
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As Is clauses will not trump fraud even though _____ _____ applies |
Caveat Emptor (Buyer Beware) |
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Time is of the essence |
All dates in contract are solid and firm |
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Subject to |
clause that creates an escape based upon a condition for one party or another |
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Implied covenant of Good Faith & Fair Dealing |
Requires that parties put forth a good faith effort to fulfill their obligations, and not interfere with each other in doing so. |
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Listing agreements are governed by _______ law. |
Contract law. Not agency law. |
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Types of listing agreements |
Exclusive, Exclusive right to sell, net listing |
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Exclusive listing agreement |
seller can sell the property and not pay a commission. |
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Exclusive right to sell |
commission will be paid no matter who finds the buyer. |
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Net listing |
Illegal in utah. |
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All commissions are _______ and set by buyer and seller. |
Negotiable |
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Ways to terminate a contract |
Mutual release, Assignment (not agency), Novation (debt contracts), Impossibility to perform, anticipatory repudiation. |