FINC 3250 Exam 1 Questions and Answers 2023 Real Exam

FINC 3250 Exam 1 Questions and Answers Real Exam What are the 4 types of real estate?: residential commercial agricultural public living units, can be single or multi family: residential property where business or commerce is operated or takes place: commercial property used for the cultivation of natural resources: agricultural property used for government uses: public _____ and _____ are the 2 biggest property wise: residential and commercial ____ is the largest acre wise: agricultural represents clients in assisting in buying or selling real estate and can specialize: agent (broker) loans money for someone to buy a property ex: banker: mortgage lender connects the borrower with the lender and does the transaction: mortgage broker values the property, used for insurance purposes (policies): appraiser 12. determines the boundaries of property, helps with development or division: surveyor someone that knows more about a topic than you. Can be hired simply for that knowledge: consultant what are the physical characteristics of property?: immobility indestructibility NonHomogeneity cannot be moved: immobility land cannot be destroyed: indestructibility no 2 pieces of land are exactly alike (can be used to force people to buy or sell): nonhomogeneity what are the economic characteristics of real estate?: scarcity fixity situs modification not enough property in certain areas for everyone who wants to live in that area (less supply, more demand, price goes up): scarcity nature of real estate is fixed and does not change quickly if at all (why its a valuable investment): fixity locational preference factors into prices (natural and manmade phenomena): situs 22 improvements to the land that have an impact on its value (ex building a house): modification land and anything intended to be permanently attached to the land: real property opposite of real property is ______ property: personal any tangible, movable thing: personal property anything intended to be permanently attached to real property, or alterations to the real property (ex: buildings, driveways, pools, etc): improvement 27. personal property that has been incorporated into real property and becoming thereof (light fixtures, door knobs, appliances, window coverings, etc): fixtures What are the fixture tests?: -manner of attachment -adaption of the property to object -existence of agreement -relationship of parties how the object in question is affixed or attached to the property itself: manner of attachement the higher the level of attachment, the more likely the object is a _____ and is thus part of the property itself: fixture how the improvement or property has been adapted to accommodate the object in question (ex: tornado shelters or home theatre tv): adaption of the property to the object this is the trump card for deciding if an object is a fixture: written agreement 33. personal property that is necessary or used in the operation of a certain business: trade fixtures trade fixtures do not become part of the property unless...: -provided by landlord -written agreement what is an example of relationship of the parties?: trade fixtures an improvement, fixture, or legal right that "runs with the land" (stays with property regardless of the owner) ex: easement: appurtenance the right to use a property: easement what are the types of water rights?: -riparian -littoral -doctrine of prior appropriation the right to flowing water (ex: damming water can be overturned by this): riparian rights the right to standing water: littoral rights 41 what are the water rights determined by priority of beneficial use? (the first person to use or divert water for beneficial use can acquire these rights): doctrine of prior appropriation types of estates in land: -fee simple -qualified fee -life estate -future interest -100% ownership forever -largest ownership in land -has every right of the property not reserved to the gov: fee simple -something less than 100% ownership -ownership with qualification -fee simple determinable -fee simple subject to condition subsequent: qualified fee 100% ownership, but the duration of ownership is determined by the granting document (deed) (a type of ownership with qualification): fee simple determinable 46. ownership is granted as long as some condition is met. If the condition is no longer met, then the property either goes back to the original owner or to some third party (type of ownership with qualification): fee simple subject to condition subsequent 47. ownership granted for the duration of some person's life (can be any live person and does not have to be involved in the transaction) (often seen when developers buy land from old people): life estate when developers buy land but offer the person who is there the life estate -happens when old people need money: reserving a life estate ownership interest that comes after a life estate or qualified fee -reversion -remainder -can be sold or given away -valuable and valued on if a person does dangerous things and age: future interest where the property reverts back to the original grantor at the end of the life estate or qualified fee: reversion where the property goes to a 3rd party at the end of the life estate or qualified fee: remainder concurrent estates means...: co ownership simultaneous ownership of the same property by 2+ owners: concurrent estates 54 types of concurrent estates: -tenants in common -joint tenants with right of survivorship