Property management and real estate asset management are both real estate management professions. The primary distinction between the two is that:
Property managers handle day-to-day operations while asset managers manage portfolios of properties.
People in the real estate business who primarily focus on creating new properties are:
Developers
The term "commercial property" generally refers to:
Retail, office and industrial properties
Which professionals involved in the real estate business are most concerned about procuring buyers and sellers for clients?
Brokers and agents
Which way of specializing is common in the real estate brokerage business?
Financing background of client
What is an advisory service provider?
A broker who renders real estate services for a fee
The level of government which is most active in regulating real estate licensees is the:
State government
What guarantees the right of private ownership of real estate in the United States?
The Constitution
Which of the following is the best definition of real estate?
Land and everything permanently attached to it
Which of the following is included in the legal concept of land?
The surface of the earth an all natural things permanently attached to the earth.
What are the three unique physical characteristics of land?
Immobile, indestructible, and heterogeneous
The primary distinction between the legal concepts of land and real estate is that:
Land does not include man-made structures
The primary distinction between legal concepts of real estate and real property is that:
Real property includes ownership of a bundle of rights
Which is included in the bundle of rights inherent in ownership?
To transfer
Which is an example of intangible property?
Stock
The right to use real property is limited by:
The right of others to use and enjoy their property
Surface rights, air rights and subsurface rights are:
Seperable
Which term refers to the rights of a property that abuts a stream or river?
Riparian
What part of a non-navigable waterway does the owner of an abutting property own?
To the middle of the waterway
What is the "Doctrine of Prior Appropriation?
A doctrine that gives the state control of water use improvements
Which is considered real property?
A tree growing on a parcel of land
The overriding test of whether an item is a fixture or personal property is:
Its definition as one or the other in a sale or lease contract.
What is an emblement?
A plant or crop that is considered personal property
An item can be converted from real to personal property and vice versa by means of which processes?
Affixing and severance
The major sources of real estate law are legislation at federal, state and local level, and:
Court decisions
What is the primary thrust of federal involvement in real estate law?
Broad regulation of usage
Which level of government controls zoning laws?
County and local
A grocer temporarily installs special fruit and vegetable coolers in a leased grocery store in order to prevent spoilage. The coolers would be considered what?
Trade fixtures that are personal property
Under the doctrine of littoral rights, an owner claims ownership of all the land underlying a lake where there are three other abutting property owners. Why would the owner's claim be invalid?
Because the state owns the underlying land
An interest in real estate is best defined as ownership of:
One or more of the bundle of rights to real property
Encumbrances and police powers are:
Interests that do not include possession
What distinguishes a freehold estate from a leasehold estate?
A leasehold endures only for a specific period of time.
The highest form of ownership interest one can acquire in real estate is the:
Absolute fee simple estate
The distinguishing feature of a defeasible fee simple estate is that:
The estate may revert to a grantor of heirs if the prescribed use changes.
Upon the death of the owner, a life estate passes to:
The original owner or other named person
How is a conventional life estate created?
A fee simple owner grants the life estate to a life tenant.
What distinguishes a pur autre vie life estate from an ordinary life estate?
The pur autre vie estate endures only fro the lifetime of a person other than the grantee.
Which of the following life estates is created by someone other than the owner?
Legal life estate
What is true of homestead?
A homestead interest cannot be conveyed by one spouse.
Dower refers to:
A wife's life estate interest in her husband's property.
Which of the following is an illustration of the legal concept of elective share?
A widow who was excluded from a will makes a claim to a portion of the couple's principal residence.
A one-year lease on a house has expired, but the tenant continues sending monthly rent checks to the owner, and the owner accepts them. What kind of leasehold estate exists?
Estate from period to period
When a single individual or entity owns a fee or life estate in real property, the type of ownership is:
Tenancy in severalty
Three people have identical rights but unequal shares in a property, share and indivisible interest, and may sell or transfer their interest without consent of the others. This type of ownership is:
Tenancy in common
The "four unities" required to create a joint tenancy include which condition?
Parties must acquire respective interests at the same time.
Unlike tenants in common, joint tenants:
Cannot will their interest to a party outside the tenancy
In a community property state, a basic distinction is made between:
Property acquired during a marriage and property already owned by each party at the time of marriage.
Who are the essential parties involved in an estate in trust?
Trustor, trustee and beneficiary
The distinguishing features of a condominium estate are:
Fee simple ownership of the airspace in a unit and undivided share of the entire property's common areas.
Who owns the property in a time-share estate?
The property is owned by tenants in common or by a freehold owner who leases on a time-share basis.
Which is true of a cooperative?
A cooperative may hold an owner liable for the unpaid operating expenses of other owners.
One difference between a cooperative estate and a condominium estate is that:
A default by a coop owner may cause a foreclosure on the entire property instead of just a single unit, as with a condominium.
A unique feature of a land trust is that:
The identity of the beneficiary may not be identified.
Which is true of a tenancy in common?
The tenants share an indivisible interest
A tenant in common can:
Sell, encumber or transfer his or her interest to an outside party without the consent of the other tenants in common.
When a tenant in common dies, what happens to the tenant's interest in the estate?
It passes by probate to the deceased tenant's heirs.
Which is true of a joint tenancy?
The tenants have an equal and indivisible ownership interest.
In contrast to a tenancy in common, in a joint tenancy:
There is a single title to the property
If a joint tenant sells his or her interest to an outside party:
The new owner is a tenant in common
When a joint tenant dies, what happens to the tenant's interest in the estate?
It passes to the surviving joint tenants
The most common form of co-ownership when the owners are not married is:
Tenancy in common
If a co-worker in a joint tenancy or tenancy in common wants to dispose of his or her interest against the wishes of the other co-owners, the co-owner can:
Sue in court for a termination of the tenancy and partition of the property.
Two individuals can own a house as tenants by the entireties if:
They are married
One of the benefits offered by ownership in a tenancy by the entireties is:
the estate is subject to foreclosure only for jointly incurred debts.
When an estate is held in a trust, who holds legal title?
The trustee
When real property is held in a land trust, who controls the property?
The beneficiary
A condominium owner can:
Sell or mortgage the condominium unit without hindrance from individual owners of neighboring units.
A condominium owner's assessments for maintenance and operation are based on:
The unit's pro rata share of the property value as defined in the declaration.
The owner of a cooperative owns:
Shares in a corporation or association and a proprietary lease in a physical unit.
In a cooperative, real property is owned only by:
The corporate entity of the cooperative association.
In a time-share freehold, owner acquire:
Undivided interests as tenants in common.
Real estate professionals perform the following property-related functions:
Creation and improvement
Management and maintenance
Demolition
Investment ownership
Regulation
Transfer
The two principal types of managers are:
Property managers and Asset managers
Oversees specific properties on behalf of the owners, making sure the condition of the property and its financial performance meet specific standards?
Property managers
Oversees groups of properties, or portfolios.
Asset managers
Serve to remove properties that are no longer economically viable from the market.
Demolition experts
The Property type specializations are:
Residential Property
Commercial Property
Investment Property
Property that is owned and used for habitation.
Residential Property
Property that refers to retail and office properties, and industrial real estate.
Commercial Property
Property that is held by its owners for investment purposes.
Investment Property
Classifications of Real Estate by Use
Residential
Residential Income
Office
Retail
Industrial
Farm and Ranch
Special purpose
Land
A seller, buyer, landlord or tenant hires this person to procure the opposite party to the sale or lease transaction.
Broker
The 5 specializations for brokers and agents.
Property type
Geographical area
Type of transaction
Type of client
Type of relationship
The 4 property type agents
Residental
Commercial
Industrial
Land
Some of the individual brokerage services that one might perform for a pre-set fee
Comparative price analysis
Database search
Prospect screening
Site analysis
Agents must develop a thorough awareness of their:
Local market and the properties within it
One of the most important kinds a knowledge a realtor should know.
Real estate financing
What does ARELLO stand for?
Association of Real Estate Licensed Law Officials
Federal and state statutes, as well as a large body of court decisions, generally referred to as common law, circumscribe what?
How real estate can be developed, managed and transferred.
The laws that are most relevant to agents and brokers are those relating to:
Agency
Contracts
Disclosure
Environmental impact
Fair housing
State real estate license laws comprise:
the primary body of laws and regulations governing real estate brokerage practice.
State license laws are administered in each state by a?
Real estate commission
A simple definition of real estate is?
Air, water, land, and everything affixed to the land.
Real estate in the United States may be owned by?
Privately by individuals and private entities or publicly by government entities.
Private ownership rights in this country are not what?
Absolute
The legal concept of land encompasses:
The surface area of the earth
Everything beneath the surface of the earth extending downward to its center.
All natural things permanently attached to the earth
The air above the surface of the earth extending outward to infinity.
A portion of land delineated by boundaries is?
A parcel or tract
Heterogeneity means?
Different
Homogeneity means?
Similarity
The three unique physical characteristics are?
Immobility, Indestructibility and Heterogeneity
Since no two parcels of land are exactly the same, it is considered?
Non-homogeneous
Man-made structures attached to land are?
Improvements
In common understanding, what is something that is owned by someone?
Property
The Bundle of Rights, a set of rights to the item enjoyed by the owner, are?
Possess
Use
Transfer
Encumber
Exclude
Property is either:
Real or personal
Rights that apply to the real estate contained within the surface boundaries of the parcel.
Surface Rights
Rights that apply to the space above the surface boundaries of the parcel, as delineated by imaginary vertical lines extended to infinity.
Air Rights
Rights that apply to land beneath the surface of the real estate parcel extending from its surface boundaries downward to the center of the earth.
Subsurface Rights
Rights concerning the rights to own and use water in lakes, streams, rivers, and the ocean.
Water Rights
When states have taken the legal position that the state owns and controls all bodies of water.
Doctrine of Prior Appropriation
Rights concerning properties abutting bodies of water that are not moving, such as lakes and seas.
Littoral Rights
Under Littoral Rights the ownership:
Extends to the high-water mark of the body of water.
Rights concerning properties abutting moving water such as steams and rivers.
Riparian Rights
Under Riparian Rights the ownership of a non-navigable stream:
is the land beneath the stream to the stream's midpoint.
Under Riparian Rights the ownership of a navigable waterway:
extends to the water's edge.
The primary criterion for distinguishing real from personal property is:
whether the item is permanently attached to the land or to structures attached to the land.
A personal property item that has been converted to real property by attachment to real estate is called a?
Fixture
Additional criteria to determine whether an article of property is real or personal are?
Intention
Adaptation
Functionality
Relationship of parties
Sale or lease contract provisions
One's original intention
Intention
An item is uniquely adapted to the property, or the property is custom-designed to accommodate the item.
Adaptation
If an item is vital to the operation of the building.
Functionality
If a tenant installs a fixture in order to conduct business
Relationship of parties
In a sale or lease transaction, the listing of an item in the contract as a personal property item or a fixture overrides all other considerations.
Sale or lease contract provisions
Items of a tenant's personal property that the tenant has temporarily affixed to a landlord's real property in order to conduct business.
Trade fixtures or Chattel fixtures
Plants and crops require human intervention and labor are called?
Emblements
The conversion of real property to personal property by detaching it from the real estate.
Severance
The act of converting personal property to real property by attaching it to the real estate.
Affixing or attachment
Land, fixtures, attachments and conversions by affixing are what kind of property?
Real Property
Trade fixtures, emblements and conversions by severance are what kind of property?
Personal Property
Government entities regulate what aspects of real property interests?
Bundle of rights
Legal descriptions
Financing
Insurance
Inheritance
Taxation
Body of government is primarily concerned with broad standards of real property usage, natural disaster, land description, and discrimination?
Federal Government
What does FHA stand for?
Federal Housing Administration
Act that prohibits discrimination in housing based on race, religion, color, or national origin.
Federal Fair Housing Act of 1968
Body of government that is the primary regulatory entity of the real estate business, and establish real estate license laws and qualifications.
State Government
Body of government that exerts regional influence in the usage and environmental control of real estate within the state.
State Government
County and local government regulation focuses on what?
Land use control, control of improvements and taxation.
Land use regulations and ordinances control how all property within the jurisdiction may be:
Developed, improved, demolished and managed.
County and local governments have the power to:
Zone land, take over land for the public good, issue building permits, and establish the rules for all development projects.
The judicial system exerts an influence on real estate ownership and use through decisions based on:
Case law and Common law
Type of law that consists of decisions based on judicial precedent.
Case law
The collective body of law deriving from custom and generally accepted practice in society.
Common law
Ownership of any combination of the bundle of rights to real property, including the rights to: possess, use, transfer, encumber and exclude.
An interest in real estate
An owner's interest in a property in which two or more parties share ownership.
Undivided interest
If the interest-holder enjoys the right of possess, the party is considered to have an?
Estate in land or an estate
If a private interest-holder does not have the right to possess, the interest is an?
Encumbrance
The prime example of public interest or the right of the local or county government to zone is?
Police Power
An interest that includes the right of possession.
Estate in land
The type of estate where the duration of the owner's rights cannot be determined?
Freehold estate
Type of estate that is distinguished by its specific duration, as represented by the lease term?
Leasehold estate
The highest form of ownership interest one can acquire in real estate?
Fee Simple Freehold Estate
The owner of the fee simple interest is called the?
Fee tenant
The two forms of fee simple estate are?
Absolute and Defeasible
A perpetual estate that is not conditioned by stipulated or restricted uses and may also be freely passed on to heirs?
Fee Simple Absolute
A perpetual estate, provided the usage conforms to stated conditions.
Fee Simple Defeasible
The two types of fee simple defeasible are?
Determinable and Condition Subsequent
A life estate is?
A freehold estate that is limited in duration to the life of the owner or other named person.
The holder of a life estate is called the?
Life Tenant
If a life estate names a third party to receive title to the property upon termination of the life estate, the party enjoys a future interest called?
Remainder interest or a remainder estate
The holder of a remainder interest is called a?
Remainderman
If no remainder estate is established, the estate reverts to the original owner or the owner's heirs. In this situation, the original owner retains what kind of interest or estate?
Reversion
The two types of life estates are?
Conventional and Legal
This kind of life estate is created by grant from a fee simple property owner to the grantee, the life tenant?
Conventional life estate
The two types of conventional life estate are?
Ordinary and Pur Autre Vie
This life estate ends with the death of the life estate owner and may pass back to the original owners or their heirs or to a named third party?
Ordinary life estate
This life estate endures over the lifetime of a third person, after which the property passes from the tenant holder to the original grantor or a third party?
Pur autre vie
This life estate is created by state law as opposed to being created by a property owner's agreement?
Legal life estate
The major forms of legal life estate are?
Homestead, dower and curtesy and elective share.
This is one's principal residence?
Homestead
This is a wife's life estate interest in the husband's property, and NOT practiced in Oklahoma?
Dower
This is the husband's life estate interest in the wife's property?
Curtesy
A state-level statute enabling a surviving spouse to make a minimum claim to the deceased spouse's real and personal property in a place of the provisions for such property in the decent's will?
Elective share
This arises from the execution of a lease by a fee owner - the lessor, or landlord - to a lessee or tenant?
Leasehold estate or leasehold
A leasehold estate for a definite period of time, with a beginning date and an ending date?
Estate for years
Also called a periodic tenancy, this tenancy period automatically renews for an indefinite period of time, subject to timely payment of rent?
Estate from period-to-period
The most common form of periodic tenancy is?
Month-to-month lease
Either party may terminate a periodic tenancy by giving proper notice, which in Oklahoma is?
30 days written notice
Also called a tenancy at will, this has no definite expiration date and hence no renewal cycle?
Estate at will
The estate at will is terminated by proper notice or?
By death of either party
In this estate, a tenant occupies the premises without consent of the landlord or other legal agreement with the landlord?
Estate at sufferance