REAL 4000 Dietz, REAL 4000 Test 2
Dietz, UGA REAL 4000 EXAM 3 Dietz,
REAL 4000 Test 4 Dietz Questions and
Answers
5 types of commercial real estate
✓ ~~~ Retail, Hotel, Office Space, Multifamily, Warehouse/Industrial
Two types of property
✓ ~~~ tangible and intangible
tangible
✓ ~~~ physical assets that can be owned (can be real and personal)
intangible
✓ ~~~ non physical assets such as stock bonds and mortgages, leases
What three ways are the term real estate used?
✓ ~~~ 1.Tangible Asset (Building, Raw Land, Improvements to land) 2. Bundle of rights
(Exclusive possession of the real property (you own and can exclude) Use or enjoyment
can do whatever you want within means of law Disposition (sale) - selling the land
Can be unbundled (sticks)) 3. Real Estate as a career
Property Market Formula
✓ ~~~ space market/capital market
Property Value Formula
, ✓ ~~~ next years NOI/ Capitalization rate
1 acre =
✓ ~~~ 43560 sq ft
1 square mile =
✓ ~~~ 640 acres
4 Quadrants of Capital Markets
✓ ~~~ Private equity
Private debt
Public equity
Public debt
Institutional grade property
✓ ~~~ >10 million
Investment Grade
✓ ~~~ <10 million
What are rights?
✓ ~~~ Claims that the government is obligated to enforce, non revocable, enduring (not
limited to memory of the owners)
Two different types of rights
, ✓ ~~~ Personal & Property
Personal Rights
✓ ~~~ guaranteed by the constitution
property rights
✓ ~~~ the rights individuals or firms have to the exclusive use of their property, including
the right to buy or sell it
Real Property
✓ ~~~ physical property such as land and buildings
Personal Property
✓ ~~~ possessions such as jewelry, furniture, and boats
Fixtures
✓ ~~~ Real property that was formerly personal property
four rules of fixtures
✓ ~~~ 1. Manner of attachment (how attached is it to the property..clock vs light attached
to ceiling...does it cause damage when removed quickly
2. Character of the article and manner of adaption (Dry bar in corner that was
designed for it)(other examples, church pew)
3. Intention of the parties (dominant rule): based on the customary assumptions of
the realm (will you bring the fridge when you leave?) some places take all of the
appliances
, 4. Relation of the Parties: Trade Fixtures - commercial real estate fixtures that goes
with the tenant when they leave
interest
✓ ~~~ Any set of rights in real property
Estate
✓ ~~~ a real property interest that includes the right of exclusive possession
- non possessory interests
Two types of estates
✓ ~~~ Ownership estate & Leasehold estate
free simple absolute
✓ ~~~ the highest and most complete form of ownership, potentially infinite duration
Free simple conditional
✓ ~~~ all rights, but revocable if specific condition is violated (UGA property revocable if
iron mine is opened on ag hill)
Ordinary Life Estate
✓ ~~~ Estate in which the property owner retains all rights of exclusive possession, use,
and enjoyment for life while a subsequent owner holds a remainder interest that follows
the life estate.
Legal Life Estate
Dietz, UGA REAL 4000 EXAM 3 Dietz,
REAL 4000 Test 4 Dietz Questions and
Answers
5 types of commercial real estate
✓ ~~~ Retail, Hotel, Office Space, Multifamily, Warehouse/Industrial
Two types of property
✓ ~~~ tangible and intangible
tangible
✓ ~~~ physical assets that can be owned (can be real and personal)
intangible
✓ ~~~ non physical assets such as stock bonds and mortgages, leases
What three ways are the term real estate used?
✓ ~~~ 1.Tangible Asset (Building, Raw Land, Improvements to land) 2. Bundle of rights
(Exclusive possession of the real property (you own and can exclude) Use or enjoyment
can do whatever you want within means of law Disposition (sale) - selling the land
Can be unbundled (sticks)) 3. Real Estate as a career
Property Market Formula
✓ ~~~ space market/capital market
Property Value Formula
, ✓ ~~~ next years NOI/ Capitalization rate
1 acre =
✓ ~~~ 43560 sq ft
1 square mile =
✓ ~~~ 640 acres
4 Quadrants of Capital Markets
✓ ~~~ Private equity
Private debt
Public equity
Public debt
Institutional grade property
✓ ~~~ >10 million
Investment Grade
✓ ~~~ <10 million
What are rights?
✓ ~~~ Claims that the government is obligated to enforce, non revocable, enduring (not
limited to memory of the owners)
Two different types of rights
, ✓ ~~~ Personal & Property
Personal Rights
✓ ~~~ guaranteed by the constitution
property rights
✓ ~~~ the rights individuals or firms have to the exclusive use of their property, including
the right to buy or sell it
Real Property
✓ ~~~ physical property such as land and buildings
Personal Property
✓ ~~~ possessions such as jewelry, furniture, and boats
Fixtures
✓ ~~~ Real property that was formerly personal property
four rules of fixtures
✓ ~~~ 1. Manner of attachment (how attached is it to the property..clock vs light attached
to ceiling...does it cause damage when removed quickly
2. Character of the article and manner of adaption (Dry bar in corner that was
designed for it)(other examples, church pew)
3. Intention of the parties (dominant rule): based on the customary assumptions of
the realm (will you bring the fridge when you leave?) some places take all of the
appliances
, 4. Relation of the Parties: Trade Fixtures - commercial real estate fixtures that goes
with the tenant when they leave
interest
✓ ~~~ Any set of rights in real property
Estate
✓ ~~~ a real property interest that includes the right of exclusive possession
- non possessory interests
Two types of estates
✓ ~~~ Ownership estate & Leasehold estate
free simple absolute
✓ ~~~ the highest and most complete form of ownership, potentially infinite duration
Free simple conditional
✓ ~~~ all rights, but revocable if specific condition is violated (UGA property revocable if
iron mine is opened on ag hill)
Ordinary Life Estate
✓ ~~~ Estate in which the property owner retains all rights of exclusive possession, use,
and enjoyment for life while a subsequent owner holds a remainder interest that follows
the life estate.
Legal Life Estate
