REAL ESTATE EXAM NATIONAL AND STATE EXAM PREP
Real Property - ✔ consists of land, improvements attached to the land,
benefits, rights, and ownership interests that go with the land.
appurtenance - ✔ often used to describe rights, privileges or improvements
that belong to and pass with the land.
Improvements - ✔ are man's additions to the land such as buildings and
landscaping
Personal property - ✔ a right or interest in something of a temporary or
moveable nature and includes anything not classes as real property. Also
referred to as chattel or personalty.
How is ownership transferred? - ✔ Bill of sale
A Fixture - ✔ an item that was personal property; however, it has been
attached in such a way that it has become real property
- the word "installed" often indicates permanent attachment
- the process of attaching may also be called annexation.
severance - ✔ the process by which an item of real property becomes
personal property.
- can also be described as "severed"
Trade fixtures - ✔ Fixtures installed by a tenant in order to carry out a
business. They may be removed from leased property prior to the termination
of the lease.
-if not removed they become real property and pass to the landlord.
fixtures and trade fixtures in commercials sales - ✔ ownership of these to be
included in the sale should be verified to protect interests of both seller and
buyer
Emblements - ✔ crops that are cultivated annually. Even though they are
attached to the ground, they are considered the personal property of the
farmer who cultivated them. NOT automatically part of the sale.
- Ownership can be transferred through a bill of sale.
- Or the farmer can make arrangements to come back to the property to
harvest the crops after the sale.
Characteristics of real property - ✔ 1. Nonhomogeneity - no two pieces are
exactly alike. each piece of land is unique.
2. Immobility - land cannot be moved - a person must go to the land.
3. Indestructibility - durability - it will always be there.
,4 economic characteristics of land - ✔ 1. Scarcity - in short supply where
demand is great
2. Modification - land use and value are greatly influenced by improvements
made by man to land and to surrounding parcels of land.
3. Fixity - land, buildings, and other improvements that are considered
permanent investments.
4. Situs - location preference, or location from an economic rather than a
geographic stand-point.
legal descriptions - ✔ created and determined by a surveyor and is a
necessary part of a contract or conveyance in order for that document to be
enforceable.
Metes and Bounds - ✔ use terminal points and angles and always have a
p.o.b. (point of beginning). This method uses compass directions, degrees,
and minutes.
- The point of beginning is also the end, so that the land described is
completely defined.
- This description may also include the use of street names.
- This is the oldest and most common method of land description.
Monuments - ✔ often the starting point for a metes and bounds description,
and can be essential to the accuracy of that description.
- they can be man made.
Lot and Block - ✔ derived from a recorded map, called a plat. This is the
most common description used in residential listing agreements.
Rectangular survey system - ✔ also known as the Government Survey
System, takes into consideration base lines, meridians, townships, and
sections. Townships and sections are located in Ranges.
- One township has 36 sections.
- each section contains 640 acres, which is one square mile.
- Each acre contains 43,560 square feet
Police Power - ✔ Is the power given to the municipality to regulate and
control the character and use of property for the health, safety and general
welfare of the public.
- Zoning is the most common example of police power.
Variance - ✔ if your property violates zoning, you may request a variance. A
variance may also be requested prior to construction.
- You may obtain a variance by applying to the zoning committee, a hearing
will be scheduled and all neighborhood property owners will be invited to the
heard to voice an objections they might have.
- A variance goes with the property when it is sold.
,a buffer zone - ✔ An area of land separating one land use from another
incompatible use such as residential from commercial.
- the space between wetlands and construction is also an example of a buffer
zone.
Eminent domain - ✔ the right of government to take private property for
public use through the action of condemnation.
- This is the only time the government must compensate property owners.
Inverse Condemnation - ✔ When an individual forces the government to buy
his or her property
taxation - ✔ Property taxes are the highest priority lien on real property.
Property taxes are ad valorem taxes or according to value. Unpaid taxes
create an automatic lien on property. At foreclosure, property taxes are
always paid first.
Escheat - ✔ Property reverts to the state when someone dies leaving NO
WILL and NO HEIRS or kindred.
- Escheat can also be used if the property is abandoned. The purpose of
escheat is to ensure that no land remains unowned.
CC&R'S (Covenants, Conditions and Restrictions) - ✔ These are the most
common controls of land use. HOA and POA regulations are like deed
restrictions, but usually apply to condos or subdivisions. These private
controls of land use are contractual obligations that a buyer agrees to when
purchasing a home.
Encumberance - ✔ A limit on a property, or a limit on a property's owner's
rights, that may or may not also be a cloud on the title.
reservation - ✔ imposed by the grantor, withholds title to a part of the land
described in the deed
(I.E. an easement or mineral rights)
encroachment - ✔ when a structure or improvement overlaps or trespasses
onto another's property. Encroachments must be disclosed and the
determination of an encroachment requires a survey.
easement - ✔ an easement allows the limited use or enjoyment of another's
land. It is a right in land and should be created in writing and recorded. It is
use without possession.
- easements can be created by express (written or verbal) or implied (by
action or evidence) grant, agreement, reservation, limitation or prescription,
necessity, or condemnation.
- easements can be terminated by merger, release, or abandonment.
, easement by condemnation - ✔ the government can take an easement by
condemnation for itself, the utilities or railroad.
Dominant and Servient Estates - ✔ If you have two parcels of land with a
road across one parcel, the owner who crosses over the other's land is
dominant. The dominant estate would be landlocked without the easement, in
most cases.
The property with the road is servient to the dominant estate. The dominant
estate benefits from the easement, while the servient estate is encumbered.
- The most common reason for this type of easement is entry and exit from
the property.
- This easement is called an ✨easement appurtenant✨ It goes with the land,
and the landowner owns the easement.
Easement in Gross - ✔ An easement in gross belongs to a person or
corporation.
I.E. a utility easement. no matter who owns the land, the easement still
belongs to the utility company.
A License - ✔ permission to do a particular act upon the land or property of
another. A theater ticket or sports event ticket is a license that grants use of
one seat for one performance. similar to an easement, but much more limited.
Often given verbally and easily revoked.
Adverse Possession - ✔ (Squatters Rights) occurs when property is acquired
from the rightful owner through the statute of limitations. occupancy must be
hostile, visible or open, actual or notorious, continuous and distinct for the
statutory period.
Lis Pendens - ✔ a recorded notice filed against a specific property, meaning
that some form of lawsuit has been filed, but not yet resolved in court.
Types of ownership - ✔ 1. Estate in Severalty - ownership by one, tenancy in
severalty or sole ownership. This can be ownership by one individual or one
business entity such as a corporation or a partnership.
2. Tenancy in Common - ownership by two or more without rights of
survivorship. It is an estate of inheritance.
3. Joint Tenancy - ownership by two or more with rights of survivorship. Upon
your death, your share goes to surviving co-owners, immediately. sometimes
called "poor man's will" as it eliminates the need for a will and overrides a will.
4. Tenancy by the entirety - is a specific type of joint tenancy where the co-
owners are married to one another: husband/wife, spouse/spouse. This type
of ownership avoids probate
5. If a property is held by one party for the benefit of another then that
property is held in trust
6. When two or more parties join together to create and operates a real
estate investment we call this a syndicate.
Real Property - ✔ consists of land, improvements attached to the land,
benefits, rights, and ownership interests that go with the land.
appurtenance - ✔ often used to describe rights, privileges or improvements
that belong to and pass with the land.
Improvements - ✔ are man's additions to the land such as buildings and
landscaping
Personal property - ✔ a right or interest in something of a temporary or
moveable nature and includes anything not classes as real property. Also
referred to as chattel or personalty.
How is ownership transferred? - ✔ Bill of sale
A Fixture - ✔ an item that was personal property; however, it has been
attached in such a way that it has become real property
- the word "installed" often indicates permanent attachment
- the process of attaching may also be called annexation.
severance - ✔ the process by which an item of real property becomes
personal property.
- can also be described as "severed"
Trade fixtures - ✔ Fixtures installed by a tenant in order to carry out a
business. They may be removed from leased property prior to the termination
of the lease.
-if not removed they become real property and pass to the landlord.
fixtures and trade fixtures in commercials sales - ✔ ownership of these to be
included in the sale should be verified to protect interests of both seller and
buyer
Emblements - ✔ crops that are cultivated annually. Even though they are
attached to the ground, they are considered the personal property of the
farmer who cultivated them. NOT automatically part of the sale.
- Ownership can be transferred through a bill of sale.
- Or the farmer can make arrangements to come back to the property to
harvest the crops after the sale.
Characteristics of real property - ✔ 1. Nonhomogeneity - no two pieces are
exactly alike. each piece of land is unique.
2. Immobility - land cannot be moved - a person must go to the land.
3. Indestructibility - durability - it will always be there.
,4 economic characteristics of land - ✔ 1. Scarcity - in short supply where
demand is great
2. Modification - land use and value are greatly influenced by improvements
made by man to land and to surrounding parcels of land.
3. Fixity - land, buildings, and other improvements that are considered
permanent investments.
4. Situs - location preference, or location from an economic rather than a
geographic stand-point.
legal descriptions - ✔ created and determined by a surveyor and is a
necessary part of a contract or conveyance in order for that document to be
enforceable.
Metes and Bounds - ✔ use terminal points and angles and always have a
p.o.b. (point of beginning). This method uses compass directions, degrees,
and minutes.
- The point of beginning is also the end, so that the land described is
completely defined.
- This description may also include the use of street names.
- This is the oldest and most common method of land description.
Monuments - ✔ often the starting point for a metes and bounds description,
and can be essential to the accuracy of that description.
- they can be man made.
Lot and Block - ✔ derived from a recorded map, called a plat. This is the
most common description used in residential listing agreements.
Rectangular survey system - ✔ also known as the Government Survey
System, takes into consideration base lines, meridians, townships, and
sections. Townships and sections are located in Ranges.
- One township has 36 sections.
- each section contains 640 acres, which is one square mile.
- Each acre contains 43,560 square feet
Police Power - ✔ Is the power given to the municipality to regulate and
control the character and use of property for the health, safety and general
welfare of the public.
- Zoning is the most common example of police power.
Variance - ✔ if your property violates zoning, you may request a variance. A
variance may also be requested prior to construction.
- You may obtain a variance by applying to the zoning committee, a hearing
will be scheduled and all neighborhood property owners will be invited to the
heard to voice an objections they might have.
- A variance goes with the property when it is sold.
,a buffer zone - ✔ An area of land separating one land use from another
incompatible use such as residential from commercial.
- the space between wetlands and construction is also an example of a buffer
zone.
Eminent domain - ✔ the right of government to take private property for
public use through the action of condemnation.
- This is the only time the government must compensate property owners.
Inverse Condemnation - ✔ When an individual forces the government to buy
his or her property
taxation - ✔ Property taxes are the highest priority lien on real property.
Property taxes are ad valorem taxes or according to value. Unpaid taxes
create an automatic lien on property. At foreclosure, property taxes are
always paid first.
Escheat - ✔ Property reverts to the state when someone dies leaving NO
WILL and NO HEIRS or kindred.
- Escheat can also be used if the property is abandoned. The purpose of
escheat is to ensure that no land remains unowned.
CC&R'S (Covenants, Conditions and Restrictions) - ✔ These are the most
common controls of land use. HOA and POA regulations are like deed
restrictions, but usually apply to condos or subdivisions. These private
controls of land use are contractual obligations that a buyer agrees to when
purchasing a home.
Encumberance - ✔ A limit on a property, or a limit on a property's owner's
rights, that may or may not also be a cloud on the title.
reservation - ✔ imposed by the grantor, withholds title to a part of the land
described in the deed
(I.E. an easement or mineral rights)
encroachment - ✔ when a structure or improvement overlaps or trespasses
onto another's property. Encroachments must be disclosed and the
determination of an encroachment requires a survey.
easement - ✔ an easement allows the limited use or enjoyment of another's
land. It is a right in land and should be created in writing and recorded. It is
use without possession.
- easements can be created by express (written or verbal) or implied (by
action or evidence) grant, agreement, reservation, limitation or prescription,
necessity, or condemnation.
- easements can be terminated by merger, release, or abandonment.
, easement by condemnation - ✔ the government can take an easement by
condemnation for itself, the utilities or railroad.
Dominant and Servient Estates - ✔ If you have two parcels of land with a
road across one parcel, the owner who crosses over the other's land is
dominant. The dominant estate would be landlocked without the easement, in
most cases.
The property with the road is servient to the dominant estate. The dominant
estate benefits from the easement, while the servient estate is encumbered.
- The most common reason for this type of easement is entry and exit from
the property.
- This easement is called an ✨easement appurtenant✨ It goes with the land,
and the landowner owns the easement.
Easement in Gross - ✔ An easement in gross belongs to a person or
corporation.
I.E. a utility easement. no matter who owns the land, the easement still
belongs to the utility company.
A License - ✔ permission to do a particular act upon the land or property of
another. A theater ticket or sports event ticket is a license that grants use of
one seat for one performance. similar to an easement, but much more limited.
Often given verbally and easily revoked.
Adverse Possession - ✔ (Squatters Rights) occurs when property is acquired
from the rightful owner through the statute of limitations. occupancy must be
hostile, visible or open, actual or notorious, continuous and distinct for the
statutory period.
Lis Pendens - ✔ a recorded notice filed against a specific property, meaning
that some form of lawsuit has been filed, but not yet resolved in court.
Types of ownership - ✔ 1. Estate in Severalty - ownership by one, tenancy in
severalty or sole ownership. This can be ownership by one individual or one
business entity such as a corporation or a partnership.
2. Tenancy in Common - ownership by two or more without rights of
survivorship. It is an estate of inheritance.
3. Joint Tenancy - ownership by two or more with rights of survivorship. Upon
your death, your share goes to surviving co-owners, immediately. sometimes
called "poor man's will" as it eliminates the need for a will and overrides a will.
4. Tenancy by the entirety - is a specific type of joint tenancy where the co-
owners are married to one another: husband/wife, spouse/spouse. This type
of ownership avoids probate
5. If a property is held by one party for the benefit of another then that
property is held in trust
6. When two or more parties join together to create and operates a real
estate investment we call this a syndicate.
