Real Estate Ownership, Land Use Controls, and Financing - flashcards

land

Earth's surface, subsurface, space overhead, and rights

Personal Property

Unattached and moveable items

Intangible Assets

Bank accounts, stocks, securities

Fixtures

Once-moveable items attached to real property

Trade Fixtures

Removeable personal property used by business tenant

Annexation

Additions to property from natural causes

Appurtenances

Things that 'belong' to something else

Emblements

Crops owned by tenant, may be harvested after lease

Tangible Property

Physically touchable, material property

Intangible Property

Abstract, 'untouchable' property

Physical Characteristics of Land

Immobility, permanence, uniqueness

Economic Characteristics of Land

Scarcity, improvements, permanence of investment, area preference

Property Descriptions

Metes and bounds, lot and block, rectangular survey, street address

Township

Six miles by six-mile squares

Sections

One-mile squares within a township

Vertical Land Descriptions

Define air rights and subsurface rights

Geodetic Survey System

Establishes reference points for accurate surveys

Encumbrances

Restrictions on use/transfer of real property

Lien

Monetary encumbrance on property

General Lien

Affects all of a debtor's property

Specific Lien

Limited to a specific item controlled by debtor

Statutory Lien

Created automatically by statute

Equitable Lien

Created by court order

Mortgage Lien

Result from property financing

Mechanic's Lien

Nonpayment of claims by those who worked on a property

Special Assessment Liens

Result from owner or municipality-initiated improvements

Municipality Property Tax Liens

Result from unpaid taxes

Federal (IRS) Tax Liens

Result from unpaid taxes

Judgement Liens

Result from court order to pay a certain amount to a creditor

Lien Effective Date

Day they are recorded in public records

Priority of Liens

Property tax liens are always superior

Non-Monetary Encumbrances

Physical and legal restrictions on property use

Easements

Nonowner's right to use property for specific purpose

Easement Appurtenant

Right to use property for benefit of another

Easement in Gross

No neighboring dominant tenement

Easement by Prescription

Allows use of land without specific arrangement

Tacking

Claiming previous owner's period of adverse use

Property Dedication

Asserting continued right to use public property

Adverse Possession

Transfer of title based on demonstrated use

Party Wall Easement

Common wall between properties

Creation and Termination of Easement

Mutual agreement, necessity, long-time use

License

Personal, revocable right to use property

Encroachments

Overlap of property use by another

Lis Pendens

Encumbrance affecting marketability of title

Tittle

Ownership and legal evidence of ownership

Types of Title

Clear, Marketable, Equitable, Legal

Sole Ownership

Individual is sole owner of property

Concurrent Ownership

Ownership by two or more parties

Tenancy in Common

Undivided fractional interest in property

Joint Tenancy

Unity of title, time, possession, interest

Right of Survivorship

Remaining tenant's interest increases upon death

Marital Property Ownership Rights

Tenancy by the entireties, community property

Common Interest Ownership

Multiple owners with overlapping interests

Condominium Ownership

Fee simple title to unit, undivided interest in common areas

Cooperative Ownership

Occupant is shareholder, granted proprietary lease

Time Share Ownership

Fee simple ownership of interval occupancy

Freehold Estate

Absolute and complete ownership of real property

Fee Simple Defeasible

Qualified fee with conditions

Life Estate

Ownership for duration of life of life tenant

Future Interests

Remainder and Reversion

Dower

Property rights of widows

Usufruct

Similar to life estate, for less-than-life period

Naked Owner

Owner of life estate

Right of Habitation

Nontransferable right to dwell in another's house

Acre

Unit of land measurement, 43,560 square feet

Police Power

State's authority to provide for general welfare

Zoning

Regulations controlling land use

Taxation

Government power to raise revenue

Eminent Domain

Taking of property for public or private use

Escheat

Transfer of property to state when owner dies intestate

Nonconforming Use

Continuing prior use after zoning change

Variance

Allows use other than primary zoning category

Conditional Use

Allows specific use with permit

Spot Zoning

Rezoning of small area within different zoning requirements

Setback

Specified distance a building must be from property line

Buffer Zone

Area that separates one use from another

Zoning Ordinances

Municipal regulations governing zoning

Building Codes

Regulations for construction standards

Building Permits

Required for new construction or renovations

Certificate of Occupancy

Required for residents to move into a new building

Riparian Rights

Rights to use flowing watercourse

Littoral Rights

Rights to use frontage to ocean or large lake

Riparian-Rights Doctrine

Owners have equal rights to use water passing by property

Judgmental Lien

Results from court order to pay a certain amount to a creditor

CERCLA

Establishes regulations for hazardous waste sites

Superfund Amendments and Reauthorization Act

Emphasizes permanent remedies for hazardous waste sites

RCRA

Regulates hazards involved with municipal and industrial waste

UST

Regulates underground storage tanks

LUST Trust Fund

For UST sites as an amendment

OPA

Regulates responses and responsibilities for oil contamination

Lead-Based Paint

Banned in 1978, requires disclosure

Asbestos

Requires abatement, encapsulation, or removal

Radon Gas

Colorless, odorless gas that can cause lung cancer

Toxic Mold

Infects humid wall spaces

UFFI

Used until late 1970s, must be disclosed

Private Controls

Encumbrances, liens, easements, encroachments

Private Restrictions

Deed restrictions, CC&R, association rules

Amenity

Feature that enhances and adds value to real estate

Arm's Length Transaction

Transaction under typical conditions in the marketplace

Assemblage

Combining two or more parcels of land