REAL 4000 - R. Dietz : Test 1 Exam |140
Questions and Answers
Property - -Anything that can be owned or possessed.
- Real Estate - -Defined as the land and its permanent improvements.
- Improvements on the land - -Any fixed structures such as buildings,
fences, walls, and decks
- Improvements to the land - -Include the components necessary to make
the land suitable for building construction or other uses. Often referred to as
infrastructure and consist of the streets, walkways, storm water drainage
systems and other systems such as water, sewer electric and telephone
utilities.
- Land - -used to refer to a building site, or lot and includes the
infrastructure but not any structures.
- Raw Land - -refers to a larger area that does not include an improvements
(becomes especially important when the value of land is considered)
- Personal Property - -Things that are movable and not permanently affixed
to the land or structure.
- user markets (the "real world") - -competition among users for physical
locations and space.
- Captial Market - -serve to allocate financial resources among households
and firms requiring funds.
- Property market - -determine the required property-specific investment
returns, property values, capitalization rates, and construction feasibility
- The Capitalization Rate - -the ratio of property's annual net income from
rental operations to its value, is a fundamental pricing metric in commercial
real estate markets.
- Investment-grade properties - -larger, more valuable commercial
properties, generally well over $10 million.
- Personal Rights - -Personal freedoms derived primarily from the Bill of
Rights and other amendments and clauses of the U.S. Constitution.
, - Property Rights - -Rights to things both tangible and intangible, 1) Prevent
others from using, 2) Enjoy the use/benefit of it for ourselves, 3) Get rid of it
as we see fit ( but without harm to others ) aka. disposition.
- Fixture - -an object that formerly was personal property but has become
real property. Determined by 1) Manner of attachment, 2) Character of the
article and manner of adaptation, 3) The intentions of the parties, 4)
Relations to the party ( Trade Fixtures, Agriculture Fixtures, items installed
by tenant for residential ) .
- Interests - -A bundle of rights.
- Estates - -Interests in real property that include possession.
- Freeholds - -The more substantial or complete estates are those that are
indefinite in length.
- Freehold - Fee Simple Absolute - -The most complete bundle of rights
possible and has the greatest value.
- Freehold - Fee Simple Conditional - -Ownership is subject to a condition or
trigger event. Otherwise, the owners bundle of rights is complete unless the
trigger event occurs, which may cause ownership to revert to a previous
owner (or their heirs).
- Freehold: Ordinary Life Estate - -The right of disposition of the fee simple
absolute are unbundled and separated completely.
- Freehold - Remainder Estate - -The ownership interest subsequent to a life
estate which, upon the death of the life estate owner, becomes a fee simple
absolute interest.
- Freehold - Legal Life Estates - -Created by the action of law, often in the
case of a spouse/parent death gives Life Estate to the surviving parent and
vested remainder in the child.
- Freehold - Other - -Life Estates can arise out of a marriage. In English
common law a right known as dower automatically gave the widow a life
estate of 1/3.
- Leasehold Estate - -An interest in real property that gives a tenant a
qualified right to possess and/or use the property for a limited time under a
lease.
- Leasehold - Tenancy for Years - -a leasehold interest for a specific period
of time. Maybe a few days, or hundreds of years.
Questions and Answers
Property - -Anything that can be owned or possessed.
- Real Estate - -Defined as the land and its permanent improvements.
- Improvements on the land - -Any fixed structures such as buildings,
fences, walls, and decks
- Improvements to the land - -Include the components necessary to make
the land suitable for building construction or other uses. Often referred to as
infrastructure and consist of the streets, walkways, storm water drainage
systems and other systems such as water, sewer electric and telephone
utilities.
- Land - -used to refer to a building site, or lot and includes the
infrastructure but not any structures.
- Raw Land - -refers to a larger area that does not include an improvements
(becomes especially important when the value of land is considered)
- Personal Property - -Things that are movable and not permanently affixed
to the land or structure.
- user markets (the "real world") - -competition among users for physical
locations and space.
- Captial Market - -serve to allocate financial resources among households
and firms requiring funds.
- Property market - -determine the required property-specific investment
returns, property values, capitalization rates, and construction feasibility
- The Capitalization Rate - -the ratio of property's annual net income from
rental operations to its value, is a fundamental pricing metric in commercial
real estate markets.
- Investment-grade properties - -larger, more valuable commercial
properties, generally well over $10 million.
- Personal Rights - -Personal freedoms derived primarily from the Bill of
Rights and other amendments and clauses of the U.S. Constitution.
, - Property Rights - -Rights to things both tangible and intangible, 1) Prevent
others from using, 2) Enjoy the use/benefit of it for ourselves, 3) Get rid of it
as we see fit ( but without harm to others ) aka. disposition.
- Fixture - -an object that formerly was personal property but has become
real property. Determined by 1) Manner of attachment, 2) Character of the
article and manner of adaptation, 3) The intentions of the parties, 4)
Relations to the party ( Trade Fixtures, Agriculture Fixtures, items installed
by tenant for residential ) .
- Interests - -A bundle of rights.
- Estates - -Interests in real property that include possession.
- Freeholds - -The more substantial or complete estates are those that are
indefinite in length.
- Freehold - Fee Simple Absolute - -The most complete bundle of rights
possible and has the greatest value.
- Freehold - Fee Simple Conditional - -Ownership is subject to a condition or
trigger event. Otherwise, the owners bundle of rights is complete unless the
trigger event occurs, which may cause ownership to revert to a previous
owner (or their heirs).
- Freehold: Ordinary Life Estate - -The right of disposition of the fee simple
absolute are unbundled and separated completely.
- Freehold - Remainder Estate - -The ownership interest subsequent to a life
estate which, upon the death of the life estate owner, becomes a fee simple
absolute interest.
- Freehold - Legal Life Estates - -Created by the action of law, often in the
case of a spouse/parent death gives Life Estate to the surviving parent and
vested remainder in the child.
- Freehold - Other - -Life Estates can arise out of a marriage. In English
common law a right known as dower automatically gave the widow a life
estate of 1/3.
- Leasehold Estate - -An interest in real property that gives a tenant a
qualified right to possess and/or use the property for a limited time under a
lease.
- Leasehold - Tenancy for Years - -a leasehold interest for a specific period
of time. Maybe a few days, or hundreds of years.
