rights to real estate
apply to the surface of the earth, the space above it, and the space below it
air rights
Rights to the space above the surface of a parcel
freehold estates
ownership rights
leasehold
rights to use or possess (but not own) property for a period of time
grantor
seller of a property
fee simple absolute
fullest and most complete estate in land
primary difference between a life estate and a fee simple absolute estate
life estates automatically terminate upon the death of a named person
township
36 sq miles
one acre
43,560 sq feet
In the rectangular survey system, a division of thirty-six equal portions of land, each containing 1 square mile, is known as a _________ and contains ________ acres of land.
section, 640
The lender in a mortgage arrangement is referred to as the _________, while the borrower is known as the __________.
mortgagee, mortgagor
encroachment
unauthorized invasion or intrusion of an improvement
people protected by mechanic's liens include all but
suppliers of materials
architects and engineers on construction projects
lenders
anyone who furnishes labor for construction, repair, or alteration of a building
lenders
mortgagee
lender in a mortgage arrangement
Suppose Jane buys a property subject to an easement that gives the next-door neighbor the legal right to drive across a portion of her property. Which of the following statements are consistent with the nature of easements?
If Jane wishes to terminate the
Jane could purchase the neighboring property as a means of eliminating the easement.
What is the millage rate if a property has a tax of $200 on an assessed value of $50000 ?
What is the millage rate if a property has a tax of $400 on an assessed value of $40000 ?
Property tax levied on property = (mill rate x taxable property value) divided by 1,000
200 = (MR x 50000)/1000
MR = 4
400 = (MR x 40000)/1000
MR = 10
Millage rate: 10 mils.
Assessment rate: 25% of market value.
How much property tax is owed on a home with a market value of 190000?
Millage rate: 5 mils.
Assessment rate: 25% of market value.
How much property tax is owed on a home with a market value of
Property tax levied on property = (mill rate x taxable property value) divided by 1,000
T = (10 x (0.25 x 190000))/1000
T = (5 x (0.25 x 160000))/1000
Governmental powers over private property rights include
power of taxation, power of escheat, police power
A _______ is a legal document used to transfer ownership rights to real estate from one party to another
deed
When the ownership in real estate is being transferred from one party to another, which of the following must be done?
The deed must be signed by the grantor.
The deed must be signed by the grantee.
The deed must be delivered to the grantor.
The deed must
The deed must be signed by the grantor.
Once the deed is properly signed, it can be said to have been
executed
In addition to the standard requirements for a contract to be valid, the statute of frauds requires contracts involving real estate
to be in writing.
The ______ is a "gap filler," which binds the agreement for a real estate purchase from the time the agreement is reached until the time of the closing.
sales contract
All of the following are required elements of any valid contract involving real estate except
mutual assent.
reasonable consideration.
parties with legal capacity.
a lawful purpose.
mutual assent
offeree creates a contract when he or she
accepts the offer
Which of the following uncertainties should a well-written sales contract contain provisions for?
Inability of the seller to remove defects in the title
Inability of the buyer to obtain financing
Destruction of the premises prior to closing
All of the abo
All of the above
Suppose John offers to buy Peggy's real estate for $100,000. Peggy isn't sure if she wants to accept his offer. John decides to give her a week to think it over. The next day, Peggy has still not made up her mind and John has found another property he wou
YES
Ed's Furs pays rental payments of 2500 per month plus 2% of gross sales over $18,000. What will Ed's payment be when sales are 45000 per month?
Ed's Furs pays rental payments of 2500 per month plus 2% of gross sales over $18,000. What will Ed's payment be
45000-18000 = 27000 x 0.02 = 540 + 2500 = 3040
65000 - 18000 = 47000 x 0.02 = 940 + 2500 = 3440
Carl is a real estate broker in Florida who has agreed to act as an agent for Sandra and help her sell her home. They sign an exclusive brokerage listing agreement that gives Carl 90 days to search for a buyer. After 75 days, no buyer has signed a contrac
Most likely, yes
Which of the following statements about property value is NOT true?
Price and market value are identical
Market value is the most probable selling price
Market value does not reflect tax shelter benefits
The owner's specific rights affect market value
Price and market value are identical
The value that real estate appraisers generally estimate is market value, which is synonymous with
most probable selling price.
In which of the following scenarios can the value of a real estate improvement be negative?
When the value of the land as improved exceeds the value of the land as though vacant
When the value of the land if vacant exceeds the value of the land as improve
When the value of the land if vacant exceeds the value of the land as improved
Which of the following statements is true regarding the sales comparison
approach?
Adjustments are made to the subject property to reflect differences among the comparable sales chosen for comparison.
Adjustments are made to the sales prices of the compar
Adjustments are made to the sales prices of the comparable properties to make them representative of the subject property's characteristics.
Consider a property that is worth 45000 as a vacant commercial site. The property is improved with a single family residence. As such, the property is worth 38000. If it costs 3000 to demolish the structure, what is the current value of the site?
Value of the Site: (Property Value (originally) - Demolition Cost)
42000
Consider a property that is worth 47000 as a vacant commercial site. The property is improved with a single family residence. As such, the property is worth 33000. If it costs 3000 to demolish the structure, what is the current value of the structure?
Value of the Structure: (Property w/Residence Value - Property Value) *since property w residence is less than original value, structure is worth 0
Consider a property that is worth $45,000 as a vacant commercial site. The property is improved with a single family residence. As such, the property is worth $35,000. If it costs $5,000 to demolish the structure, what is the highest and best use of the p
Commercial
Which appraisal approach would be most accurate in the valuation of a ten-year-old, single family dwelling?
Cost approach
Sales comparison approach
Income approach
->Substitution
...
Suppose you are asked to estimate the value of a 3 bedroom, 3 bathroom house by the sales comparison approach. You have identified other houses that have recently sold in the area. One of these houses has 4 bedrooms and 4 bathrooms and sold for $245,000.
200000
The agency relationship between the property owner and manager is defined in a contract called a
management agreement
A corporate real estate asset manager is usually responsible for
management,
acquisition and disposition,
and financing
In property management, the management agreement establishes an agency relationship between the owner of the property and the
property manager
The property manager's primary objective is to secure for the owner the
highest net return over the useful life of the property ???
Which of the following is a function of an asset manager for a business firm?
Management of the firm's real property facilities
Acquisition of real property to satisfy the firm's real property requirements
Arranging financing for new facilities
Redeployme
All of the above