Topic:Real Estate concepts and principles:exam prep
notes
Course:personal finance
School: kaplan high school
UNIT 1:
Deductions = Schedule A Tax Return = Must
Itemize
POITs= (Discount) Points,Origination
fees, Interest, Taxes = Deductible Capital
Gains…Long vs Short-term
Gain of Sale on Principal Residence= Excluded from
Tax
$250,000 Gain Maximum Profit; Then Taxed
Above
$500,000 if Married
Rules: 1. Own and Occupy for at least 2 of the 5
Years; non-sequential
UNIT 2:
Land: Immobility;
Indestructibility; Uniqueness
Appurtenances: Land Plus
Man-made improvements
,Title: 1. Right of Ownership; Evidence of
Ownership by Deed
Escheat: is a legal doctrine that gives the state or
government ownership of property when there is no
recognized owner.
Riparian (River or Stream):
Navigable or Non-Navigable
Littoral (Lake or Pond):
Average High-Water Mark
Doctrine of Prior Appropriation:
Water Rights Do not Automatically
include the right of waterfront access.
Land Owner may need to provide
beneficial use; like crop irrigation.
=Priority
Off-Waterfront Owner may need an easement.
-Accretion: Addition to land through natural
causes
-Reliction: Land uncovered by the receding of
Navigable body of water
-Erosion: Removal of land
-Avulsion (VIOLENT): Sudden loss of Land
(like a tornado)
, -Property Lines typically
stay in place regardless Mineral
Rights are not typically conveyed to
the buyer.
Chattels: Personal Property =
Mobility; Not permanent to the
land Must be included in
purchase contract or Bill of Sale
Convey = Stay Put
Buyer/Seller do Bill of
Sale, not RE Broker
Fixture= Attached; Real
Property = Appurtenance
Intent of Improving
Emblements = Crops = Fructus Industriales
Trade Fixtures: Necessary for business;
remove before lease termination
Accession; when tenant’s property
becomes the landlord’s
*Exception: Farmland producing a crop; Crops
are personal property (emblements) Method of
Adaptability/Intent
, LAWS:
1. Contract Law:
2. General Property Law:
3. Agency Laws (Brokerage Relationship Laws):
4. Real Estate License Laws:
UNIT 3: INTERESTS IN REAL ESTATE
Estate: Interest or Right in Real Property; both tenant
and owner have estate/interest
Freehold (Ownership) Estate
Fee Simple Absolute: Maximum
Ownership; even after death thru
Will/Trust Fee Simple Defeasible: Subject
to a Condition Subsequent; NYC Park
Example Life Estate (Measuring Life of
Original Owner): Transferable Not
Inheritable
*Pur Autre Vie= Someone else’s
life other than tenant Grantor
(Reversionary Interest) -> Deal/Life
Estate -> Grantee (Life Tenant)
If Daughter Dies; Reverts to Grantor
*Remainderman (Third Party);
Holds Real Estate; Son Gets Fee
Simple Form if Daughter Passes Legal
notes
Course:personal finance
School: kaplan high school
UNIT 1:
Deductions = Schedule A Tax Return = Must
Itemize
POITs= (Discount) Points,Origination
fees, Interest, Taxes = Deductible Capital
Gains…Long vs Short-term
Gain of Sale on Principal Residence= Excluded from
Tax
$250,000 Gain Maximum Profit; Then Taxed
Above
$500,000 if Married
Rules: 1. Own and Occupy for at least 2 of the 5
Years; non-sequential
UNIT 2:
Land: Immobility;
Indestructibility; Uniqueness
Appurtenances: Land Plus
Man-made improvements
,Title: 1. Right of Ownership; Evidence of
Ownership by Deed
Escheat: is a legal doctrine that gives the state or
government ownership of property when there is no
recognized owner.
Riparian (River or Stream):
Navigable or Non-Navigable
Littoral (Lake or Pond):
Average High-Water Mark
Doctrine of Prior Appropriation:
Water Rights Do not Automatically
include the right of waterfront access.
Land Owner may need to provide
beneficial use; like crop irrigation.
=Priority
Off-Waterfront Owner may need an easement.
-Accretion: Addition to land through natural
causes
-Reliction: Land uncovered by the receding of
Navigable body of water
-Erosion: Removal of land
-Avulsion (VIOLENT): Sudden loss of Land
(like a tornado)
, -Property Lines typically
stay in place regardless Mineral
Rights are not typically conveyed to
the buyer.
Chattels: Personal Property =
Mobility; Not permanent to the
land Must be included in
purchase contract or Bill of Sale
Convey = Stay Put
Buyer/Seller do Bill of
Sale, not RE Broker
Fixture= Attached; Real
Property = Appurtenance
Intent of Improving
Emblements = Crops = Fructus Industriales
Trade Fixtures: Necessary for business;
remove before lease termination
Accession; when tenant’s property
becomes the landlord’s
*Exception: Farmland producing a crop; Crops
are personal property (emblements) Method of
Adaptability/Intent
, LAWS:
1. Contract Law:
2. General Property Law:
3. Agency Laws (Brokerage Relationship Laws):
4. Real Estate License Laws:
UNIT 3: INTERESTS IN REAL ESTATE
Estate: Interest or Right in Real Property; both tenant
and owner have estate/interest
Freehold (Ownership) Estate
Fee Simple Absolute: Maximum
Ownership; even after death thru
Will/Trust Fee Simple Defeasible: Subject
to a Condition Subsequent; NYC Park
Example Life Estate (Measuring Life of
Original Owner): Transferable Not
Inheritable
*Pur Autre Vie= Someone else’s
life other than tenant Grantor
(Reversionary Interest) -> Deal/Life
Estate -> Grantee (Life Tenant)
If Daughter Dies; Reverts to Grantor
*Remainderman (Third Party);
Holds Real Estate; Son Gets Fee
Simple Form if Daughter Passes Legal
