Question | Answer |
What are the 3 tangible (can experience) parts of the bundle of rights in relation to real property? | 1. Land 2. Fixtures 3. Fruits of Soil |
What are some of the intangible parts of the bundle of rights in relation to real property? | air rights, water rights, mineral rights, easements, leases, mortgages, licenses, profits. |
What is the purpose of a Deed? | Conveys/transfers ownership of real property. |
What is the purpose of a Bill of Sale? | Conveys/transfers ownership of personal property. |
Define the term Chattel. | Another name for personal property. |
Define the term Emblements. | Crops that are planted annually and not at random(are considered personal property). |
Define the term Fixture. | Improvements both on and to land(personal property attached to land). |
What are the 3 test questions a court would use to determine if an item would be considered a fixture? | 1. How permanent? 2. What was the intent when attached? 3. If removed, can it be used elsewhere? |
What is the specific difference between the term Real Estate and the term Real Property? | Real Estate refers to land plus permanent improvements.
Real Property refers to Real Estate plus the "bundle" of legal rights. |
What are 4 of the rights in ownership of Real Property? | 1. Right to possession 2. Right to enjoyment 3. Right to farm 4. Right to development |
Define Estate in Real Property. | Interest in property sufficient to give holder the right of possession. |
What is the main difference between a Freehold Estate and a Non-Freehold or Leasehold Estate? | Freehold estates refer to ownership(provide title) of real property.
Non-Freehold/Leasehold estates refer to renting or leasing real property. |
Define Estate of Fee Simple Absolute. | Most complete form of ownership and bundle of rights associated with real property. |
What is a Defeasible Estate(or Qualified Fee Simple Estate)? | Refers to a conveyance of real property that is a Fee Simple Absolute with a condition/limitation attached. Is defeatable if the condition/limitation is not upheld. |
What is the main difference between a Fee Simple Estate and a Life Estate? | Fee Simple Estates are directly inheritable and Life Estates are not directly inheritable. |
Define a Life Estate. | Ownership, Possession, and Control for the life(time) of someone(Life Tenant). |
What is a Life Estate Pur Autre Vie? | Life Estate based on life(time) of someone other than the life tenant. |
What is the difference between a Life Estate in Remainder and a Life Estate in Reversion? | Remainder means property conveyed to a life tenant and upon death to any named remaindermen. Reversion means property conveyed to a life tenant but upon death "reverts" back to the grantor or his estate. |
What is a Legal/Statutory Life Estate in Dower? in Curtsey? | Both are automatic life estates for surviving spouse in inheritable property owned solely by deceased spouse. Dower is for wife(legal in MI) Curtsey is for husband(not legal in MI) |
Define Estate for Years. | Inherritable Leasehold estate for a fixed time period( i.e. Standard Lease) |
Define Estate from Year to Year. | Inherritable Leasehold estate that renews itself unless otherwise expressed by either party( i.e. Commercial Leases) |
Define Estate at Will. | Non-Inheritable Leasehold estate that is unknown when created but can be terminated by either party. |
Define Estate at Sufferance. | Refers to a tenant who has stayed beyond lease but refuses to leave. Right of possession has terminated but is not considered a trespasser. |
What is the difference between Ownership in Severalty and Concurrent Ownership(Co-Ownership)? | Severalty is one owner either person or entity.
Concurrent means ownership by 2 or more people. |
What is the difference between Right of Survivorship and Right of Inheritance? | Survivorship-If 1 or more co-owners die the surviving co-owner receives the interest in the property of the deceased.
Inheritance-If a co-owner dies their interest passes to their heirs according to their will. |
What are the 3 types of Co-Ownership? | 1. Tenancy in Common 2. Joint Tenancy 3. Tenancy by the Entirety |
What are the possible Unites of Ownership required for Co-Ownerships? | One or more of these are needed in Co-Ownerships. 1. Time 2. Title 3. Interest 4. Possession 5. Marriage(only Tenancy by Entirety) |
What are the key features of a Tenancy in Common? | 2 or more persons hold title at same time, possession is only required unity, undivided interest. No right of survivorship but right of inheritance. |
What are the key features of a Joint Tenancy? | 2 or more persons must have all 4 unities, same interest, receive title from source at same time, same percentage of ownership, undivided possession. No right of inheritance but right of survivorship. Right to transfer/sell interest. |
What are the key features of Tenancy by the Entirety? | 2 persons joined by marriage must have all 4 unities plus marriage. Right of Survivorship. |
What is Community Property? | Community Property states require husband and wife to obtain title together as community property. |
What is Separate Property? | Community Property states consider this to be any property acquired by gift or inheritance or purchased with separate funds either during or before marriage. |
How are the different areas of a condominium owned? Individual unit and common areas. | Individual units can be owned in severalty, joint tenancy, in common, or by the entireties.
Common areas are owned in common with other individual condominium unit owners. |
What are the 3 things which set forth how condominium statutes are set forth? | 1. Declaration(master deed) 2. Articles of Association 3. Bylaws |
According to the Michigan Condominium Act, what is needed to make a purchase agreement binding? | Purchaser of a "new" construction condo is allowed 9 days after the developer delivers 1. recorded master deed with bylaws and subdivision plans 2. copy of purchase and escrow agreements 3.Condo Buyer's handbook 4. disclosure statement. |
What is a site condominium? | Vacant land with surface improvements or airspace intende to have a building constructed. |
What is a Cooperative? | Like a condo but buildings, land and all real property rights, and interests owned by a corporation. People own stock in company and a given a proprietary lease to the property. |
What is a Timeshare? | A condo where the co-owners pay for intervals of time. |
According to the Michigan Uniform Securities Act, is it legal for a real estate licensee/broker to offer a mortgage or land contract to a anyone? | Yes, if they are registered with the Corporation and Securities Bureau because they are dealing in securities. If not they are operating illegally. |
What is a Syndication? | multiple joint investors in real estate. |