10/23/24, 12:39 Real Estate Final Exam study
PM guide
N Real Estate Final Exam 5/5/20
Chapters covered on the final:2,4, 7,8,9,15,12,13,14,18,19
All formulas are in this study guide (examples of how to use those formulas
are in the slides)
Tip for success: Use the search bar to look up basic concepts
and phrases (this is an extremely long word document and
personally helps me navigate through the information)
Chapter 2 (Real Property and Rights)
I. Real Property: a bundle of rights
A. What are rights?
i. Claims that the government is obligated to enforce
1. Derived from the constitution
ii. Non-revocable
1. But can be limited
ii. Enduring
1. Not limited to the memory of owners or others
2. Cannot be nullified by other persons or by government
B. Personal rights v. Property rights
i. Property rights
1. Exclusive possession
2. Enjoyment of the use or benefit: use, collect rents, harvest
3. Freedom to dispose as one pleases (within the limits
of safety): sell, convert, rebuild, etc.
B. Real v. Personal property
i. Real property: rights in land and its permanent structures
1. Surface of the earth and improvements
2. Air, up to reserved air space or tallest structure
3. Beneath the earth as far as technology allows: Minerals,
oil and gas, water
ii. Personal property: all other property
1. Personal and household goods
2. Intellectual property
B. Fixtures
i. Fixture: real property that formerly was personal property
ii. Rules for determining when something becomes a fixture:
1. Manner of attachment
2. Character of the article and manner of adaptation:
custom screens or storm windows, church pews, custom designed
furniture
ii. Intention of the parties
1. Customary assumptions of the realm
1
about:blan 1/
k 45
,10/23/24, 12:39 Real Estate Final Exam study
PM guide
2. Example: kitchen appliances in a single-family residence
v. appliances in an apartment
ii. Relation of the parties
1. Variant of rule of intention
2. Trade fixtures (personal property)
3. Fences and other agricultural improvements
4. Items installed by tenant in a residence
B. Importance of fixtures
i. In every real estate transfer the question of fixtures should be addressed
ii. Fixtures are real estate automatically go with the real property
iii. It's important to identify possible fixtures
iv. Agreement between the buyer and seller
B. Real property interests
i. Interest: any rights in real property
ii. Estate: a real property interest that includes the right of
exclusive possession
iii. Nonpossessory interests:
1. Easements
2. Restrictive covenants
3. Liens
II. Ownership (freehold) estate
A. Estates of indefinite length
B. Fee simple absolute- all possible rights
C. Fee simple conditional- all rights, but revocable if specific condition is violated
D. Life estate with remainder interest
i. Ordinary life estate- created by the owner
ii. Remainder interest must be named
iii. Legal life estate- imposed by law (Community property or spousal rights)
II. Modern Leasehold interests
A. Tenancy for years
i. For a specific period of time (few days to decades)
ii. Must be written if for more than one year
iii. Written lease contract governs entirely
B. Periodic tenancy
i. No definite length of time
ii. Like a month to month that automatically renews
iii. State law governs notice of termination
1. 60 day notice to terminate
B. Model Residential Landlord- Tenant Act
i. Establishes a more equitable relationship between landlords and tenants
II. Non-Possessory interests in land
A. Easements: the right to use land for a specific and limited purpose
i. Easement appurtenant: rights of use a (dominant) parcel of land
"enjoys" over an adjacent (servient) parcel
ii. Affirmative easements
1. Driveways or access right-of-way
2
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PM guide
about:blan 3/
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, 10/23/24, 12:39 Real Estate Final Exam study
PM guide
2. Restrictions imposed on an entire subdivision at its creation
a. A list of restrictions recorded as a
separate document
b. Mutually binding on all purchasers in
the subdivision
ii. Enforcement
1. Enforcement by court injunction
2. Enforcement only by "parties at interest"
a. Isolated deed restriction: Grantor or grantor's heirs
b. Subdivision restrictions: owners, mortgage loan
holders, and renters
2. Courts reluctant to enforce in case of:
a. Delayed enforcement (abandonment)
b. Changed public policy
2. Mandatory retirement in some states (Some states allow expiration
after 20-30 years)
II. Forms of Direct Co-Ownership
A. Example: a house with multiple owners
i. All share the right of exclusive possession
ii. Cannot obstruct each other's use
iii. May hold different percentage of ownership
A. Tenancy in common
i. May be unequal shares
ii. Each can sell or will their interest
iii. All parties needed to sell the entire property
iv. (sign sale contract and deeds)
A. Joint tenancy with right of survivorship
i. Must have equal shares (50/50 for two owners)
ii. Ownership automatically transfers to the surviving co-owners upon death
A. Tenancy by the entirety
i. Just for married couples
ii. Right of survivorship
iii. Protects against liens against a spouse
iv. Recognized in 26 states
B. Condominium
i. Combines single ownership and tenancy in common
ii. Created by condominium declaration
iii. Considered real estate
iv. Condo owner owns their unit in fee simple and has an undivided interest
in the common areas
v. Condos may be residential, retail, office, parking
vi. Bylaws define owners rights:
1. Share of all obligations
2. Restrictions on sale or rental
3. Methods of altering bylaws
ii. Creates additional levels of controls
4
about:blan 4/
k 45
PM guide
N Real Estate Final Exam 5/5/20
Chapters covered on the final:2,4, 7,8,9,15,12,13,14,18,19
All formulas are in this study guide (examples of how to use those formulas
are in the slides)
Tip for success: Use the search bar to look up basic concepts
and phrases (this is an extremely long word document and
personally helps me navigate through the information)
Chapter 2 (Real Property and Rights)
I. Real Property: a bundle of rights
A. What are rights?
i. Claims that the government is obligated to enforce
1. Derived from the constitution
ii. Non-revocable
1. But can be limited
ii. Enduring
1. Not limited to the memory of owners or others
2. Cannot be nullified by other persons or by government
B. Personal rights v. Property rights
i. Property rights
1. Exclusive possession
2. Enjoyment of the use or benefit: use, collect rents, harvest
3. Freedom to dispose as one pleases (within the limits
of safety): sell, convert, rebuild, etc.
B. Real v. Personal property
i. Real property: rights in land and its permanent structures
1. Surface of the earth and improvements
2. Air, up to reserved air space or tallest structure
3. Beneath the earth as far as technology allows: Minerals,
oil and gas, water
ii. Personal property: all other property
1. Personal and household goods
2. Intellectual property
B. Fixtures
i. Fixture: real property that formerly was personal property
ii. Rules for determining when something becomes a fixture:
1. Manner of attachment
2. Character of the article and manner of adaptation:
custom screens or storm windows, church pews, custom designed
furniture
ii. Intention of the parties
1. Customary assumptions of the realm
1
about:blan 1/
k 45
,10/23/24, 12:39 Real Estate Final Exam study
PM guide
2. Example: kitchen appliances in a single-family residence
v. appliances in an apartment
ii. Relation of the parties
1. Variant of rule of intention
2. Trade fixtures (personal property)
3. Fences and other agricultural improvements
4. Items installed by tenant in a residence
B. Importance of fixtures
i. In every real estate transfer the question of fixtures should be addressed
ii. Fixtures are real estate automatically go with the real property
iii. It's important to identify possible fixtures
iv. Agreement between the buyer and seller
B. Real property interests
i. Interest: any rights in real property
ii. Estate: a real property interest that includes the right of
exclusive possession
iii. Nonpossessory interests:
1. Easements
2. Restrictive covenants
3. Liens
II. Ownership (freehold) estate
A. Estates of indefinite length
B. Fee simple absolute- all possible rights
C. Fee simple conditional- all rights, but revocable if specific condition is violated
D. Life estate with remainder interest
i. Ordinary life estate- created by the owner
ii. Remainder interest must be named
iii. Legal life estate- imposed by law (Community property or spousal rights)
II. Modern Leasehold interests
A. Tenancy for years
i. For a specific period of time (few days to decades)
ii. Must be written if for more than one year
iii. Written lease contract governs entirely
B. Periodic tenancy
i. No definite length of time
ii. Like a month to month that automatically renews
iii. State law governs notice of termination
1. 60 day notice to terminate
B. Model Residential Landlord- Tenant Act
i. Establishes a more equitable relationship between landlords and tenants
II. Non-Possessory interests in land
A. Easements: the right to use land for a specific and limited purpose
i. Easement appurtenant: rights of use a (dominant) parcel of land
"enjoys" over an adjacent (servient) parcel
ii. Affirmative easements
1. Driveways or access right-of-way
2
about:blan 2/
k 45
,10/23/24, 12:39 Real Estate Final Exam study
PM guide
about:blan 3/
k 45
, 10/23/24, 12:39 Real Estate Final Exam study
PM guide
2. Restrictions imposed on an entire subdivision at its creation
a. A list of restrictions recorded as a
separate document
b. Mutually binding on all purchasers in
the subdivision
ii. Enforcement
1. Enforcement by court injunction
2. Enforcement only by "parties at interest"
a. Isolated deed restriction: Grantor or grantor's heirs
b. Subdivision restrictions: owners, mortgage loan
holders, and renters
2. Courts reluctant to enforce in case of:
a. Delayed enforcement (abandonment)
b. Changed public policy
2. Mandatory retirement in some states (Some states allow expiration
after 20-30 years)
II. Forms of Direct Co-Ownership
A. Example: a house with multiple owners
i. All share the right of exclusive possession
ii. Cannot obstruct each other's use
iii. May hold different percentage of ownership
A. Tenancy in common
i. May be unequal shares
ii. Each can sell or will their interest
iii. All parties needed to sell the entire property
iv. (sign sale contract and deeds)
A. Joint tenancy with right of survivorship
i. Must have equal shares (50/50 for two owners)
ii. Ownership automatically transfers to the surviving co-owners upon death
A. Tenancy by the entirety
i. Just for married couples
ii. Right of survivorship
iii. Protects against liens against a spouse
iv. Recognized in 26 states
B. Condominium
i. Combines single ownership and tenancy in common
ii. Created by condominium declaration
iii. Considered real estate
iv. Condo owner owns their unit in fee simple and has an undivided interest
in the common areas
v. Condos may be residential, retail, office, parking
vi. Bylaws define owners rights:
1. Share of all obligations
2. Restrictions on sale or rental
3. Methods of altering bylaws
ii. Creates additional levels of controls
4
about:blan 4/
k 45
