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Champion Real Estate
Principles - I
| Term | Definition |
|---|---|
| Brokerage | Brokerage is the aspect of the real estate business that pertains to overseeing the needs of the parties and completing a transaction - Ch 1-pg 9 |
| Property Management | Property managers are generally responsible for the day-to-day operations of the property, maintenance, and tenant relations. Ch 1-pg 9 |
| Real Estate Development | involves the acquisition of land for development into residential SUBDIVISIONS, retail centers, and other commercial uses. Ch 1-pg 9 |
| The benefits of home ownership | •Occupancy •Tax Benefits •Pride of Ownership •Security •Investment Ch 1-pg 12 |
| PHYSICAL CHARACTERISTICS OF LAND | •Indestructibility or durability - Ch 1-pg 13 •Immobility refers to the fact that land cannot be moved •Nonhomogeneity refers to the fact that no two parcels of land are the same |
| The demand for real estate | •Growth in employment -is the primary driver of demand Ch 1-pg 15 •Personal preference - falls behind jobs and transportation •Availability of credit. ( mortgage rates are low) |
| Convert an acre into SF | 43,560 SF =1 acre ( 4 cougars chasing 35 yr old me when they are 60) |
| Lot and Block | Refers to a recorded map or plat, commonly used in subdivisions. |
| Legal description of land | |
| Exemptions for Capital Gains tax on a primary residence | $250,000 / individual $500,000/ married couple Must have occupied residence 2 or the prior 5 years |
| The most important determinant of value of residential real estate is: | Size of the employment market |
| Common law | body of law developed in England and based upon “common sense” and local custom. |
| The Purpose of TRELA | To protect the public against unscrupulous brokers & sales agents |
| TRELA was passed in... | 1939 |
| TREC was created to enforce TRELA in ... | 1949 |
| TREC has powers to: | • Issue sales agent and broker licenses. • Enact rules ®ulations • Suspend or revoke licenses of those who violate the License Act. • Assess administrative penalties of up to $5,000/ day against offending licensed and unlicensed individuals. |
| NAR | A professional association whose local affiliates own and operate MLS systems |
| Appraisal | Providing a professional opinion of the value of real property |
| Land | surface down to center of earth and skyward to infinity, includes trees, landscaping and water |
| Real Property is | "bundle of right" - physical estate and rights |
| Surface Rights | May extract resources from on or near the surface including stone, gravel, water and limestone |
| Improvements | Man made additions to land such as fences, DECKS , roads, etc |
| Personal property | Things of a temp or movable nature (Personalty or chattel) Conveys by "bill of sale" |
| Fixture | Personal property that has been permanently attached to land. Process of attaching is "annexation". Removal of fixtures is "severance" |
| Emblements | Annual crops such as wheat, barley or corn planted by a tenant which the tenant is entitled to harvest, even if he loses possession of the land. |
| Manufactured homes | Build according to federal building codes administered by HUD |
| Modular homes | Built to comply with local building codes |
| Severable | Surface, subsurface, and air rights are said to be severable |
| Freehold estates | ownership of real property |
| Leasehold estates | estate for years, periodic estate, estate at will, tenancy at sufferance |
| Equitable estates | liens, easements |
| Allodial system | land can be privately owned by individuals vs feudal estates owned by kings |
| Ad Valorem | Property taxes |
| Property taxes create the ______ | highest priority lien against property and at foreclosure will be paid first |
| Assessed value | is used to calculate property taxes |
| Mills | Tax rate calculated by thousands (x 1000) A rate of 25 mills means an owner pays $25 for every $1000 of assessed value. |
| Fee simple or fee simple absolute | Considered as the best type of ownership because of the least limitations |
| Leasehold Estates: Tenancy for years or Estate for years | Has a specific beginning and ending date Survives death or sale of property. |
| Leasehold Estates: Periodic tenancy or periodic estate | Lease that automatically renews such as month to month |
| Leasehold Estates: Tenancy at sufferage | Created when lease expires and tenant remains on premises Holdover tenant is the tenant who is no longer paying rent Holdover tenancy is created when landlord accepts rent |
| Two most common statutory estates in TX | Community Property & Homestead |
| Exceptions to forced sale of homestead | Non-payment of ad valorem taxes Homestead protection is automatic and cannot be waived Limited to 200 acres for family or 100 acres for an individual |
| Prescription aka "limitation" | Continuous use of land without the owners permission may establish a right to use Encroachment is the unauthorized intrusion of property onto another property |
| Common examples of liens | Mortgages and Trust Deeds Tax Liens Judgements Mechanic's liens |
| Specific Liens | Attaches to a specific property (example: mortgage) |
| General Liens | Attaches to all property (example: Judgement or IRS lien) |
| Lead in generally found in property built before | 1978 |
| Riparian rights | Right to use water from river or stream next to property |
| Littoral rights | Owners right to use water from lake or ocean next to property |
| Notice of Coastal Area Property | Duty of a seller of property abutting tidal influence water |
| Prior Appropriation | Theory of water law that "first in time, first in right" |
| Flood Insurance | Not part of homeowners (hazard Insurance) Provided by NFIP and must be purchased separately |
| CLUE (Comprehensive Loss Underwriting Exchange) report | claim history database that enables insurance carriers to assess risk |
| Tenancy in common | Ownership of real estate by two or more entities in the undivided interests Estate of inheritance |
| Estate of Severalty | a sole individual or entity owns real estate |
| Joint tenancy | Right of survivorship of the parties with no right of inheritance Interest is in equal shares. |
| Timeshares | Interval ownership |
| S Corporation | under 100 employees to avoid double taxation |
| Partition | tenancy in common ownership wish to divide their undivided interests |
| Principal | Client |
| Special Agency | Cannot sign for principal |
| OLDCAR | Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care |
| CRIP | Compensation, Reimbursement, Indemnification, Performance |
Created by:
deidresj
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