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Study sets matching "real estate chapter 8"

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Study sets matching "real estate chapter 8"

32 terms
Chapter 8 Real estate
Income Approach Method
Income Approach method is also called
Income Approach Method is used for ___…
1st step of Income Approach Method
the value of a property is the present value of its anticipat…
income capitalization
commercial
estimate property income
Income Approach Method
the value of a property is the present value of its anticipat…
Income Approach method is also called
income capitalization
14 terms
Real Estate Chapter 8 Real Estate Taxes
Tax Liens
General Real Estate Tax (Ad Valorem)
Special Assessment (Improvement)
Exemptions from General Taxes
Government maintains power to impose taxes to pay for governm…
based on the value of the property being taxed and are levied…
special taxes that require property owners to pay for improve…
(1) owners 65 or disabled may deduct $250... (2) owners who are…
Tax Liens
Government maintains power to impose taxes to pay for governm…
General Real Estate Tax (Ad Valorem)
based on the value of the property being taxed and are levied…
13 terms
Real Estate Chapter 8
Equalization factor
Assessment roll
Full-value assessment
Ad valorem tax
adjust for assessment variations
list of all taxable property
estimate based on probable sales price
tax set according to value
Equalization factor
adjust for assessment variations
Assessment roll
list of all taxable property
13 terms
Real Estate Chapter 8
Recording
eligible for recording
giving notice
constructive and actual notice
act of placing documents in th public record
a document must be drawn and executed acording to state law.
ensure the existence of the interest is made available to the…
the two basic types of notice that can be given
Recording
act of placing documents in th public record
eligible for recording
a document must be drawn and executed acording to state law.
16 terms
Real Estate Chapter 8
Recording
Constructive Notice
Public record
Actual notice
Act of placing documents in the public record
legal presumption that information has been obtained by an in…
notice to the world of an individuals right or interest in th…
information of an interest in property is available and that…
Recording
Act of placing documents in the public record
Constructive Notice
legal presumption that information has been obtained by an in…
31 terms
Real Estate Chapter 8 & 9
Equalization factor
Assessment roll
Full-value assessment
Ad valorem tax
adjusts for assessment variations
list of all taxable property
estimate based on probable sales price
tax set according to value
Equalization factor
adjusts for assessment variations
Assessment roll
list of all taxable property
20 terms
Real Estate Chapter 8
Ad Valorem Tax
Assessed Value
Assessment Roll
Equalization Factor
Ad valorem taxes are based on the value of the property being…
Value used for tax purposes. In each community, a certified t…
list of all taxable property. to arrive at a tax rate, the to…
adjusts for assessment variations. because not every district…
Ad Valorem Tax
Ad valorem taxes are based on the value of the property being…
Assessed Value
Value used for tax purposes. In each community, a certified t…
29 terms
Real estate chapter 8
Land, Real estate, and Real property
Physical components of land
Water rights
Real or Personal
Land: the earth and everything attached to it by nature. Real…
Surface rights are land and water rights riparian rights: lan…
Accretion:land build up from water -borne rocks , sand and so…
Real property can become personal by the act of severance. Pe…
Land, Real estate, and Real property
Land: the earth and everything attached to it by nature. Real…
Physical components of land
Surface rights are land and water rights riparian rights: lan…
25 terms
Real Estate Chapter 8
Capital Expenditures (CAPX)
Contract Rent
Direct Capitalization
Direct Market Extraction
Replacements and alterations to a building (or improvement) t…
The annual rent being paid under contractual commitments betw…
The process of estimating a property's market value by dividi…
R0 (capitalization rate) = NOI (projected income over the nex…
Capital Expenditures (CAPX)
Replacements and alterations to a building (or improvement) t…
Contract Rent
The annual rent being paid under contractual commitments betw…
NC real estate Chapter 8
Express contract
Implied Contract
Bilateral Contract
unilateral Contract
the parties state the terms and show their intentions in word…
the agreement of the parties is demonstrated by their actions…
A contract in which a promise is given for the promise of ano…
A one-sided contract wherein one party makes a promise so as…
Express contract
the parties state the terms and show their intentions in word…
Implied Contract
the agreement of the parties is demonstrated by their actions…
18 terms
real estate chapter 8
real property
Riparian rights
erosion
accretion
physical land and improvements together with legal rights to…
rights of an owner whose property borders a flowing waterway…
the loss of soil that is carried away by water washing agains…
an increase in land area as moving water deposits soil in oth…
real property
physical land and improvements together with legal rights to…
Riparian rights
rights of an owner whose property borders a flowing waterway…
58 terms
Real Estate for Dummies Chapter 8
Encumbrance
Financial Claims Against the Real Estate
Limitations on the Use of the Property
Collateral
a right or interest in a piece of real estate that belongs to…
claims called liens
easements, encroachments, and restrictions
the real estate that becomes a security for the loan or debt;…
Encumbrance
a right or interest in a piece of real estate that belongs to…
Financial Claims Against the Real Estate
claims called liens
20 terms
Real Estate Chapter 8
The Statute of Limitations specifies l…
the Statute of Limitations allows a ju…
The general partnership contract need…
The injured party may rescind the cont…
The Statute of Limitations specifies that time limits in whic…
The maximum time allowed under the law to bring legal action…
Based on the Statute of Frauds which of the following contrac…
Which of the following remedies are available to an injured p…
The Statute of Limitations specifies l…
The Statute of Limitations specifies that time limits in whic…
the Statute of Limitations allows a ju…
The maximum time allowed under the law to bring legal action…
27 terms
Real estate chapter 8
Shelley and Nancy bought a store build…
the difference between time-share use…
which of the following would be consid…
a trust is a legal agreement in which…
B in severalty
C timeshare sells only right of occupancy not free simple est…
B a motor home bought during the marriage
C trustee
Shelley and Nancy bought a store build…
B in severalty
the difference between time-share use…
C timeshare sells only right of occupancy not free simple est…
10 terms
Real Estate - Chapter 8
Closing
Truth-in-Lending Disclosure
RESPA
Settlement Statement
the consummation of the real estate transaction; the point at…
Under RESPA, lenders must disclose the differences between to…
The Real Estate Settlement Procedures Act (RESPA) provides co…
A statement that summarizes all the fees and charges that bot…
Closing
the consummation of the real estate transaction; the point at…
Truth-in-Lending Disclosure
Under RESPA, lenders must disclose the differences between to…
13 terms
Real Estate (chapter 8)
Ad Valorem tax
Assessed Value
Assessment roll
Equalization Factor
Tax set according to value.
Value used for tax purposes.
List of all taxable property.
Adjusts for assessment variations.
Ad Valorem tax
Tax set according to value.
Assessed Value
Value used for tax purposes.
39 terms
Real Estate Chapter 8
True or false? An unlicensed person is…
__________ requires an agent to prove…
Janice lists Ed's house under an exclu…
John is a ready, willing, and able buy…
False
procuring cause of sale
False
False
True or false? An unlicensed person is…
False
__________ requires an agent to prove…
procuring cause of sale
14 terms
Chapter 8 Real Estate
Capital expenditures
Contract rent
Direct capitalization
Direct market extraction
Expenditures for replacements and alterations to a building (…
The rent specified in the lease contract.
The process of estimating the value of a property by dividing…
Method of estimating the appropriate capitalization rate from…
Capital expenditures
Expenditures for replacements and alterations to a building (…
Contract rent
The rent specified in the lease contract.
19 terms
Real Estate Chapter 8 (Texas Real Estate Sales Contracts)
A formal real estate sales contract, p…
Martin purchased real estate from Stev…
In normal real estate brokerage practi…
Property taxes, insurance, loan intere…
a purchase offer
land contract, contract for deed, conditional sales contract,…
Determined by negotiation
Propration
A formal real estate sales contract, p…
a purchase offer
Martin purchased real estate from Stev…
land contract, contract for deed, conditional sales contract,…
20 terms
Real Estate - CHAPTER 8
8-1 A title search in the public recor…
8-2 Which of the following statements…
8-3 A purchaser went to the county bui…
8-4 The date and time a document was r…
a
a
c
a
8-1 A title search in the public recor…
a
8-2 Which of the following statements…
a
45 terms
Real Estate Chapter 8 Review
warranty deed
general lien
easement by prescription
abstract of title
A deed in which the grantor warrants clear title to the prope…
A claim on all property, both real and personal, owned by an…
A way of acquiring a legal right to use the property of anoth…
A condensed history of the title to a particular piece of rea…
warranty deed
A deed in which the grantor warrants clear title to the prope…
general lien
A claim on all property, both real and personal, owned by an…
26 terms
Chapter 8- Real Estate
Classification of Real Property
Method of transfer of Ownership
Method of securing a loan
Place where security instrument is rec…
Land and all things attached thereto.
Deed
Deed of trust with Promissory Note, which documents the term…
Register of Deeds
Classification of Real Property
Land and all things attached thereto.
Method of transfer of Ownership
Deed
17 terms
Real Estate - Ch 8
listing agreement
what is in a listing agreement
what does a broker do
who does the listing broker represent
contract between the property owner and the real estate broker
pricing the property... compensation... length of time
-brings together buyers and sellers ... -Assists in negotiating…
always reps the seller
listing agreement
contract between the property owner and the real estate broker
what is in a listing agreement
pricing the property... compensation... length of time
50 terms
Chapter 8 Real Estate
co-ownership
Direct Co-ownership
Indirect Co-ownership
Legal capacity
2+ owners of a single property
2+ owners on record title
1 record owner in the form of a legal entity, 2+ owners at th…
the right to hold and enforce rights, pay taxes, conform to t…
co-ownership
2+ owners of a single property
Direct Co-ownership
2+ owners on record title
44 terms
Real Estate Chapter 8
Universal Agency
General Agency
Special Agency
Ostensible Authority
Agent can transact matters of all types on the principal's be…
Agent can bind the principal in a particular trade or business
Agent can perform a specific act or transaction
When a principal gives a third party reason to believe that a…
Universal Agency
Agent can transact matters of all types on the principal's be…
General Agency
Agent can bind the principal in a particular trade or business
39 terms
Real Estate Chapter 8
Capital expenditures (CAPX)
Contract rent
Direct capitalization
Direct market extraction
Expenditures for replacements and alternations to a building…
The rent specified in the lease contract
The process of estimating the value of a property by dividing…
Method of estimating the appropriate capitalization rate from…
Capital expenditures (CAPX)
Expenditures for replacements and alternations to a building…
Contract rent
The rent specified in the lease contract
22 terms
Real Estate - Chapter 8
Income Capitalization
Direct Capitalization
Discount Cash Flow (DCF)
How is DCF different than direct capit…
Approach which assumes that the value of a home is equal to t…
income valuation method which is used to find value as a mult…
income valuation method which is used by projecting net cash…
DCF valuation requires:... 1. estimate of typical buyer's expect…
Income Capitalization
Approach which assumes that the value of a home is equal to t…
Direct Capitalization
income valuation method which is used to find value as a mult…
20 terms
Real Estate Chapter 8 Real Estate Taxes
Tax Liens
General Real Estate Tax (Ad Valorem)
Special Assessment (Improvement)
Exemptions from General Taxes
Government maintains power to impose taxes to pay for governm…
based on the value of the property being taxed and are levied…
special taxes that require property owners to pay for improve…
(1) owners 65 or disabled may deduct $250... (2) owners who are…
Tax Liens
Government maintains power to impose taxes to pay for governm…
General Real Estate Tax (Ad Valorem)
based on the value of the property being taxed and are levied…
24 terms
Real Estate - Chapter 8 Vocab
public records
recording
eligibility for recording
notice
Contain detailed information about each parcel of real estate…
The act of placing documents in the public record. Any writte…
a document must be drawn and executed according to state law
anyone with an interest in a parcel of real estate can take c…
public records
Contain detailed information about each parcel of real estate…
recording
The act of placing documents in the public record. Any writte…
25 terms
Real estate chapter 8
Capital Expenditures
Contract Rent
Direct Capitalization
Direct Market Extraction
Expenditures for replacements and alterations to a building (…
The rent specified in the lease contract.
The process of estimating the value of a property by dividing…
Method of estimating the appropriate capitalization rate from…
Capital Expenditures
Expenditures for replacements and alterations to a building (…
Contract Rent
The rent specified in the lease contract.
40 terms
Real Estate Chapter 8
Broker
Law of Agency
Fiduciary relationship
Client
An individual who, for consideration, sells, buys, rents, exc…
Contract law that governs the relationship between a principa…
A position of trust and confidence
The one who has hired the agent to represent him
Broker
An individual who, for consideration, sells, buys, rents, exc…
Law of Agency
Contract law that governs the relationship between a principa…
15 terms
Real Estate Chapter 8
Abstract of title
Action to quiet title
Actual notice
Attorney's opinion of title
...
...
...
...
Abstract of title
...
Action to quiet title
...
34 terms
Real Estate - Chapter 8
assignment
auction
bilateral contract
breach of contract
...
...
...
...
assignment
...
auction
...
28 terms
Real Estate Chapter 8
Appurtenances
Man made appurtenances
Natural Appurtenances
Rights
rights priviledges, and improvements that belong to and pass…
houses fences barns swimming pools - items that are added to…
trees, creeks and streams.
air, gas, solar, light & sound, mineral and surface rights -…
Appurtenances
rights priviledges, and improvements that belong to and pass…
Man made appurtenances
houses fences barns swimming pools - items that are added to…
25 terms
Real Estate Chapter 8
Capital expenditures (CAPEX)
contract rent
direct capitalization
direct market extraction
expenditures for replacements and alterations to a building (…
rent specified in the lease contract
the process of estimating the value of a property by dividing…
method of estimating the appropriate capitalization rate from…
Capital expenditures (CAPEX)
expenditures for replacements and alterations to a building (…
contract rent
rent specified in the lease contract
70 terms
Real Estate Chapter 8
Agency
1. Universal agency ... 2. General agency…
Universal agency
General agency
is created when one person gives another person the right to…
3 types of agencies
agent can transact matters of all types on the principal's be…
agent can bind the principal in a particular trade or business
Agency
is created when one person gives another person the right to…
1. Universal agency ... 2. General agency…
3 types of agencies
29 terms
real estate chapter 8
Glossary
Chapter 8
Actual notice
bargain and sale deed
...
...
Direct knowledge a person has about the ownership and conditi…
A deed that transfers the real property itself rather than tr…
Glossary
...
Chapter 8
...
21 terms
Real Estate Chapter 8
Agency
Universal agency
General agency
Special agency
when one person gives another person the right to act on thei…
agent can transact matters of all types on the principles beh…
agent can bind the principal in a particular trade or business
agent can perform a specific act or transaction
Agency
when one person gives another person the right to act on thei…
Universal agency
agent can transact matters of all types on the principles beh…
23 terms
Real Estate Chapter 8
ad valorem tax
assessment
attachment
equalization factor
...
...
...
...
ad valorem tax
...
assessment
...
24 terms
Real Estate Chapter 8
Deed
Grantor
Grantee
Record Deed
legal instrument used to convey title & ownership to real est…
owner- only one who signs deed
party to whom property is being transferred, must be identifi…
means you are legal owner
Deed
legal instrument used to convey title & ownership to real est…
Grantor
owner- only one who signs deed
11 terms
Real Estate- Chapter 8
Potential Gross Income
Effective Gross Income
Two adjustments of Effective Gross Inc…
Net Operating Income
The amount of rental income the property will generate if it…
The amount of total income the property is actually expected…
1. Vacancy and Collection Losses... 2. Other Income
EGI adjusted for annual Operating Expenses and Capital Expend…
Potential Gross Income
The amount of rental income the property will generate if it…
Effective Gross Income
The amount of total income the property is actually expected…
25 terms
Real Estate Chapter 8
Rationale equation (kind of)
Captialize
2 approaches to income valutaion
Direct Capitalization (2)
Value = present value of anticipated income
to convert future income into a present value
1. Direct capitalization... 2. Discount all expected future cash…
1. find value as a multiple of first year net income... 2. "mult…
Rationale equation (kind of)
Value = present value of anticipated income
Captialize
to convert future income into a present value
44 terms
Real Estate Chapter 8
The Income Approach to Appraisal... Ratio…
Two Approaches to Income Valuation
Direct capitalization (with an "overal…
Discounted cash flow (DCF)
Value = present value of anticipated income... Often called "inc…
Direct capitalization (with an "overall" cap rate)... Discount…
Find value as a multiple of first year net income (NOI)... "Mul…
Project net CFs for a standard holding period (say, 10 years)…
The Income Approach to Appraisal... Ratio…
Value = present value of anticipated income... Often called "inc…
Two Approaches to Income Valuation
Direct capitalization (with an "overall" cap rate)... Discount…
Real Estate Chapter 8
Perfectly competitive asset market inc…
A market in which investors do not use…
Early economists argued that good acce…
In determining where to locate, a firm…
highly regulated
inefficient market
lower transportation costs
land
Perfectly competitive asset market inc…
highly regulated
A market in which investors do not use…
inefficient market
25 terms
Real Estate: Chapter 8
Income Approach
Two types of income methods
Ratio models
Discounted Cash Flows
Value in investment property is a function of the income it i…
1. ratio models... 2. discount cash flow
1. gross rent multiplier (GRM)... - property's gross income and…
1. multi-year forecast (NOI,BTCF,ATCF)... 2. Reversion value... 3.…
Income Approach
Value in investment property is a function of the income it i…
Two types of income methods
1. ratio models... 2. discount cash flow
30 terms
Real estate Chapter 8
What is real property ?
What is Riparian rights ?
What is a littoral rights ?
What are the natural processes related…
Includes the physical land & improvements (RE) together with…
The rights of an owner whose property. Borders a flowing wate…
The rights of owners of property bordering non-flowing water…
Erosion... Accretion ... Alluvion... Relicton
What is real property ?
Includes the physical land & improvements (RE) together with…
What is Riparian rights ?
The rights of an owner whose property. Borders a flowing wate…
16 terms
Chapter 8 - Real Estate
A commercial property wants a deed wit…
What is the deed with the least protec…
What would you classify lease rights,…
What's the legal form to transfer inta…
Warranty deed
Quitclaim deed
Intangible property
Assignment form
A commercial property wants a deed wit…
Warranty deed
What is the deed with the least protec…
Quitclaim deed
50 terms
Real Estate Chapter 8
Real Estate means
Real property means
What are the rights of an owner whose…
Littoral rights
Is physical, tangible, and immobile and includes the earth's…
Includes physical land and improvements (real estate) togethe…
Riparian rights
The rights of owners of property bordering non flowing water…
Real Estate means
Is physical, tangible, and immobile and includes the earth's…
Real property means
Includes physical land and improvements (real estate) togethe…
16 terms
Chapter 8 - Real Estate
Appurtenances
Riparian
Littoral
Littoral rights
Rights, privileges and improvements that belong to and pass w…
Water Right - Along a navigable river, an owner owns to the w…
Along large navigable lakes or oceans, the owner owns to the…
The body of real property law that defines an owner's interes…
Appurtenances
Rights, privileges and improvements that belong to and pass w…
Riparian
Water Right - Along a navigable river, an owner owns to the w…
9 terms
Chapter 8: Real Estate Taxes
Tax Liens
Ad Valorem Tax
Special Assessment
Assessed Valuation
A charge against property created by operation of law. This l…
A tax levied according to value; generally used to refer to r…
A tax or levy customarily imposed against only those specific…
The valuation placed upon property as a basis for taxation.
Tax Liens
A charge against property created by operation of law. This l…
Ad Valorem Tax
A tax levied according to value; generally used to refer to r…
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