Real Estate 4000 Martin UGA Final
Exam |494 Questions and Answers
Housing Market Collapse - -The principle cause of the 2008 recession
- real estate meanings - -tangible property, intangible property, an
industry/profession
- Tangible real estate - -land and the things permanently attached to land
- tangible real estate forms - -raw land, improvements to the land,
improvements on the land
- raw land - -land in its natural state
- improvements to the land - -consists of all the activities involved in taking
land from its natural state up to the point where it is to be built upon .
excavation and fill, sewers and utilities, streets and roads, upzoning
- upzoning - -getting land zoned from a less valuable use to a more valuable
use
- improvements on the land - -structures
- real estate as intangible property - -rights to the services or benefits
provided by a piece of physical/tangible real estate. right to use, transfer
ownership, develop, keep other from using it
- real estate as an industry - -6.5% of US workers were employed in
construction or real estate
- real estate careers - -brokerage, valuation, real estate finance,
development, investments
- real estate markets - -space/usage market and asset market
- Space/Usage market - -where the services generated by a piece of real
estate are actually consumed
- asset market - -Where the properties themselves are bought and sold
- space market sides - -demand side: households, firms, government
agencies. supply side: owners of the properties
, - asset market sides - -demand side: investors, private, real estate
investment trusts, pension funds, life insurance companies
supply side: developers
- Real Estate Characteristics - -heterogeneity, immobility, localized markets,
segments markets, private information
- heterogeneity - -every property is unique, each transaction is unique, due
diligence requires more time and resources
- immobility - -consumer must always come to the property,
surpluses/shortages cant be eliminated by shifting the product to a new
location
- locality - -limited geographic area, employment centers
- segmented - -the real estate market is actually a collection of loosely
related submarkets
- private information - -leases and sales contracts are private, data is not
publicly own
- P - -permitted by right
- N - -never permitted
- S - -special use permit
- FAR - -floor space to lot area ratio (SF of floorspace/SF of lot)
- maximum lot coverage - -how much stuff you can put on your lot
- two dimensions of ownership - -what physical stuff do you have a legal
interest in? and what exactly does your legal interest allow you to do with
the physical real estate?
- characteristics of rights - -the government is obligated to support/enforce
them. they are non-revockable. they are enduring
- fundamental rights of real property - -right of exclusive possession. right
of use and enjoyment. right of disposition
- Right of Exclusive Possession - -Right to decide who can and cannot use
the physical real estate
, - Right of Use and Enjoyment - -You can enjoy the benefits of the physical
real estate for yourself
- right of disposition - -You can get rid of any portion of the physical or legal
property as you see fit
- physical real estate - -the surface fo the property and everything attached
to it. set of air rights. set of subsurface rights
- fixture - -An item of personal property that has been converted to real
property by being permanently affixed to the realty.
- fixture determinants - -intent, attachment, adaptation, relationship of the
parties
- legal interest - -possessory interest and nonpossessory interest
- possessory interest - -include the right of exclusive possession, estates
- nonpossessory interests - -Rights to physical real estate that do not
include the right of exclusive possession
- types of possessory interests - -freehold estates and leasehold estates
- Freehold Estate - -An estate in land in which ownership is for an
indeterminate length of time, in contrast to a leasehold estate.
- fee simple absolute estate - -most complete set of rights possible. still
subject to some private and public land use restrictions
- fee simple conditional estate - -ownership interest is contingent on
upholding some condition. failure to uphold the condition leads to
termination of their ownership interest. reverts back to the previous owner
- the lumpkin house - -example of fee simple defeasible
- life estates - -ownership is granted so long as some named individual is
alive. typically paired with a remainder interest
- remainder interest - -The remnant of an estate that has been conveyed to
take effect and be enjoyed after the termination of a prior estate, such as
when an owner conveys a life estate to one party and the remainder to
another.
- leasehold estate - -temporary transfer of the rights of use and possession
, - types of leasehold estates - -(1) Tenancy for Years
(2) Periodic Tenancy
(3) Tenancy at Will
(4) Tenancy at Sufferance
- tenancy for years - -Specified beginning and ending date
- Periodic Tenancy - -no predetermined termination date at start.
automatically renews unless sufficient notice is given by either party
- tenancy at will - -no termination date at the start, no stated period, lease
can be terminated by either party at will
- tenancy at sufferance - --tenant possesses the property against the
landlord's wishes
-tenant can be legally evicted
- nonpossessory interest - -interests in real estate that do not include the
right of exclusive possession. easements, deed restrictions, liens
- easement - -the right to use real property possessed by someone else for
a specific purpose
- Easement Appurtenant - -involves adjacent properties. the dominant
estate and the servient estate
- dominant estate - -ownership of this property includes the benefits of the
easement
- servient estate - -ownership of this property includes the obligation to
honor the rights of the easement holder
- easement in gross - -No dominant estate.
Easement rights are held by a corporation or government entity
- Affirmative Easement - -gives the easement holder the right to enter the
servient estate and use the property in some way
- negative easement - -Does not allow the easement holder to enter the
servient estate but, instead, allows them to restrict how the servient estate
is used in some way
-Ex. sunlight, scenic
- Express grant or reservation - -Grant: Granted by the servient estate
Reservation: Reserved by the dominant estate
Exam |494 Questions and Answers
Housing Market Collapse - -The principle cause of the 2008 recession
- real estate meanings - -tangible property, intangible property, an
industry/profession
- Tangible real estate - -land and the things permanently attached to land
- tangible real estate forms - -raw land, improvements to the land,
improvements on the land
- raw land - -land in its natural state
- improvements to the land - -consists of all the activities involved in taking
land from its natural state up to the point where it is to be built upon .
excavation and fill, sewers and utilities, streets and roads, upzoning
- upzoning - -getting land zoned from a less valuable use to a more valuable
use
- improvements on the land - -structures
- real estate as intangible property - -rights to the services or benefits
provided by a piece of physical/tangible real estate. right to use, transfer
ownership, develop, keep other from using it
- real estate as an industry - -6.5% of US workers were employed in
construction or real estate
- real estate careers - -brokerage, valuation, real estate finance,
development, investments
- real estate markets - -space/usage market and asset market
- Space/Usage market - -where the services generated by a piece of real
estate are actually consumed
- asset market - -Where the properties themselves are bought and sold
- space market sides - -demand side: households, firms, government
agencies. supply side: owners of the properties
, - asset market sides - -demand side: investors, private, real estate
investment trusts, pension funds, life insurance companies
supply side: developers
- Real Estate Characteristics - -heterogeneity, immobility, localized markets,
segments markets, private information
- heterogeneity - -every property is unique, each transaction is unique, due
diligence requires more time and resources
- immobility - -consumer must always come to the property,
surpluses/shortages cant be eliminated by shifting the product to a new
location
- locality - -limited geographic area, employment centers
- segmented - -the real estate market is actually a collection of loosely
related submarkets
- private information - -leases and sales contracts are private, data is not
publicly own
- P - -permitted by right
- N - -never permitted
- S - -special use permit
- FAR - -floor space to lot area ratio (SF of floorspace/SF of lot)
- maximum lot coverage - -how much stuff you can put on your lot
- two dimensions of ownership - -what physical stuff do you have a legal
interest in? and what exactly does your legal interest allow you to do with
the physical real estate?
- characteristics of rights - -the government is obligated to support/enforce
them. they are non-revockable. they are enduring
- fundamental rights of real property - -right of exclusive possession. right
of use and enjoyment. right of disposition
- Right of Exclusive Possession - -Right to decide who can and cannot use
the physical real estate
, - Right of Use and Enjoyment - -You can enjoy the benefits of the physical
real estate for yourself
- right of disposition - -You can get rid of any portion of the physical or legal
property as you see fit
- physical real estate - -the surface fo the property and everything attached
to it. set of air rights. set of subsurface rights
- fixture - -An item of personal property that has been converted to real
property by being permanently affixed to the realty.
- fixture determinants - -intent, attachment, adaptation, relationship of the
parties
- legal interest - -possessory interest and nonpossessory interest
- possessory interest - -include the right of exclusive possession, estates
- nonpossessory interests - -Rights to physical real estate that do not
include the right of exclusive possession
- types of possessory interests - -freehold estates and leasehold estates
- Freehold Estate - -An estate in land in which ownership is for an
indeterminate length of time, in contrast to a leasehold estate.
- fee simple absolute estate - -most complete set of rights possible. still
subject to some private and public land use restrictions
- fee simple conditional estate - -ownership interest is contingent on
upholding some condition. failure to uphold the condition leads to
termination of their ownership interest. reverts back to the previous owner
- the lumpkin house - -example of fee simple defeasible
- life estates - -ownership is granted so long as some named individual is
alive. typically paired with a remainder interest
- remainder interest - -The remnant of an estate that has been conveyed to
take effect and be enjoyed after the termination of a prior estate, such as
when an owner conveys a life estate to one party and the remainder to
another.
- leasehold estate - -temporary transfer of the rights of use and possession
, - types of leasehold estates - -(1) Tenancy for Years
(2) Periodic Tenancy
(3) Tenancy at Will
(4) Tenancy at Sufferance
- tenancy for years - -Specified beginning and ending date
- Periodic Tenancy - -no predetermined termination date at start.
automatically renews unless sufficient notice is given by either party
- tenancy at will - -no termination date at the start, no stated period, lease
can be terminated by either party at will
- tenancy at sufferance - --tenant possesses the property against the
landlord's wishes
-tenant can be legally evicted
- nonpossessory interest - -interests in real estate that do not include the
right of exclusive possession. easements, deed restrictions, liens
- easement - -the right to use real property possessed by someone else for
a specific purpose
- Easement Appurtenant - -involves adjacent properties. the dominant
estate and the servient estate
- dominant estate - -ownership of this property includes the benefits of the
easement
- servient estate - -ownership of this property includes the obligation to
honor the rights of the easement holder
- easement in gross - -No dominant estate.
Easement rights are held by a corporation or government entity
- Affirmative Easement - -gives the easement holder the right to enter the
servient estate and use the property in some way
- negative easement - -Does not allow the easement holder to enter the
servient estate but, instead, allows them to restrict how the servient estate
is used in some way
-Ex. sunlight, scenic
- Express grant or reservation - -Grant: Granted by the servient estate
Reservation: Reserved by the dominant estate
