362 PPD362 Midterm Study Guide
362 PPD362 Midterm Study Guide
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This 11 page Study Guide was uploaded by Sami Smith on Friday February 14, 2014. The Study Guide belongs to a course at University of California - Los Angeles taught by a professor in Fall. Since its upload, it has received 135 views.
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Date Created: 02/14/14
28 2 Excavation and ll Sewers arid other utilities Roads and driveways I Raw land 0 As a tarrgible asset 0 As a Alamodle of ri gl1ts I As an industry and professiori 6 User marketsr 0 Capital markets 6 39G039V E zl flfI1E39IlIvEl1 sector 6 Ineome tats 0 Ilo11sirrg subsidy prograrrrs 0 Nali or1al housing laws arid other oiivill riglhts legislatioms 0 Consumer protection laws 0 FVederal firlarroialll reporting and dilselosttre I EqllifEI1EZIHIS 0 Federal ood irls39urar1oe 39E A Vil39Ol397lHl1JEl tvEl1 1egisllatiorrrar1d eordangererd species 6 Norr plr ysileal assets 0 Stocks bonds mortgages leases 0 Capital market I 0 lPersor1aJl prroperty State gorvernrnent Real estate downer on the sttpply side 6 is it the same as developed landl owners of the real estate Liqtliditys less liquidity means more Valtre trrrc elr39tai39rrtyi Diseor1ur1ti11g lowestquot Aeqoisitior1of a r1eWhorrre or some other newly eorisrtroeted structure T1r1iJi39afnDTI391r39IquotIrfI39iquotn139 11quot 39l i i I 4 39i Ir39l P 0 With financial liquidity a stable joh low expected mobility and the time and skill to manage the prcupertj C Appraised Value 0 Lccatinn of heme access to places not work to recreation and s39p0 rts eppnrtutnitiies the cenirnunity and can rseryices Iminediate neighb0r h00d and enVir0nment I lrloisipiitalitty and restaurant 0 Net lease to AAA tenantsA hen1e C The growth in iinves teid dollars 26 Identify the best eixalnple of a heinlnninetary real estate inivestnneint The best iexarnple of a henrn0ne tary real estate investn1ent is the choice of a personal residence iChapter0UL2ppt slide 6 27 What is the greatest single cash ew uncertainty for niest real estate inyestinents at the end of the in holding pieriiedt The greatest single cash flow uincertainty for l11US real estate investments at the end at the inve period is the sale price 28 Viewin g reaJl estate il1 VES39l I16i 39tS in the ccntex39t of the nwner s cuther39 assets and the cwner s Overall fill situation may he thought of as what lhinld of perspectiye39 Viewing real estate llIV639S39Ill1E39 tS in the context of the nWnerquots other assets and the owner s over situation may be th0ugh39t of as at perspectivei 29 Unider stand the dei intiticnin of real pr0pe39rty is defined as rights in land and its permanent Sl l39lJlC39ULll39ES Land is considered surface of the earth but also includes rights to air space above the land eitJher up to the height it is tecihncall feasible tn erect Slli39IllClZll1139eS or to the level where airspace beiccrines rceseryed fcr air triaf c Also it includes subsurface down to the center of the earth and to the minerals including oil and gas contained therein 13 30 Which type of cawnership cernbines estate in sevieralty and tenancy in CTI ITl lUI l 7 is a type of ownership that C0lFlIquotlbllI l6S estate in severalty and tenancy in cninnie 3l What types of bundles of real property rights incluide the right of exclusive pessessican The types of lbundlesi of real cpr390perty rightsi that include the right of etclusiVe pnisiserssian at real property interest that includes the right of eXc139asiive pcisisessicnu They include ewnieriship estates free interests and leasehelds nonewnercsihip car nen39freehcild estates 32 Which type of lien is superior to all other liens and are superior to a1l0ther 1iens One of the iinpertai the preperty tax liens and EtSS6S39S1 I1E1 l lt liens is their prinrity they are autornaticalHly superinr to any other live is a form iofjoint tenancy for husband and wife In some states it occi autornatically when property is conveyed to a husband and while jointly In other states it rnust be created if the death of a spouse tenancy by the entirety can reduce probate costs and con1plications since no disposi occurs in the eyes of the law The concept is of special interest in states with hornestead rights ln Florida homestead autoinatically iniplies at the death of one spouse that a survivin g spouse will share ownership survivijng Ininor children The surviving spouse receives a life estate in the hornestead while niinor childre rernainder interests However it the hornestead residence is held as a tenancy by the entirety the law reco at the death of one spouse and the survivor obtains a singleaowner estate Thus it is possible to dispose oil as needed without additionafl delays and legal expensie pp 35 is the no39rrnal iforin of direct co ownersihip and is as close to the tee sin estate as is possible Each coowner retains l quotull rights of disposition and is free to mortgage or to convey ownersl1ip share to a new owner in whole or in part who receives exactly the same set of shared rights owners interests rnay dtiffert in rel ative size they are otherwise indistinguirshable No owner can use the pi that preenipts the ability of the other owners to sirnilarly enjoy the property Tenancy in cornnion is the di coownership in that it results unless there is explicit provision for another form or unless the property is by a husband and wife A coninion occurrence of this iforni of ownership is in the disposition of an estate I 3334 The distinctive feature of a is the right of survivorship By this ancient cornnion the interest of a decedent cosowner divides equally arnong the surviving coaowners and nothing passes to decedent Historical39ly joint tenancy was used as a device to prevent otherwise legitiniate heirs from inher For this reason it has been regarded as less than bene ficial to society and in sorne states has been renrlere create However the rigl1t of survivorship is very important in modern niarital property law p 3435 is a form of ownership conibining single person ownershitp with tenancy in col Specifically the owner holds a fee simple interest as an indi vidual owner to a certain space such as an a ll39oint and inseparablle with this estate the owner is a tenant in coinnnon in the conununity elenients eg shell tloors halls elevators stairwells driveways and other conimon areas of the property p 35 34 Understand what the meaning of a restrictive covenant deed restrictions iinpose lixrnits on the uses of land As their narne can be created when land is conveyed to a new owner by placing a restrictive clause in the deed that conv property For exainple it was not uncoinnion in the past to place a resrtriction in a deed prohibiting the new certain activities on the property such as the sale of alcoholic beverages A much more cornnion Lise of th covenant today is to control the character of land use in a subdivision At the creation of a residential sular developer usually records in the associated public docunients a series of restrictionsi on the use of the lots i39n1prove the perceived quality stability and value of the lots Eiraniples of r39esidential subdivision restricti Setback line andfor height restrictions for houses Miniinuin floor area No freestanding garage No freestanding utility building N o chainslink fenc es No recr39eational vehicles or boats piarlceid in view of the street No garage door facing the street Required architectnra39l review of new structures or niajor additions N o external antennae satellite dishes or clotheslines No habitual parking of cars in the driveway Requirenient to use professional lawn service 1 29 3U 35 What is the definition of Fee Sirnple Absoljute 36 is the most complete bundle of rights possible and has the greatest value Subject to imposed by government or by prior ovvners all possible rights of exclusive possession use and enjoyimen disposition are possessed by the owner This is the traditional concept of landoWnership It is this interest i when persons of the real estate vvorld refer to ovvning or holding the fee p 25 Be able to understand the meaning of an assessment lien When a local governrnent makes improvements in a neighborhood such as street paving or uti installatious adjacent properties that receive the primary beneifit vvill be charged a fair share assessment on the street frontage front footage of each lot though it sometimes is based on building or lot size Typi property owners must pay the assesstment in even amounts over llU or 2390 years This fair share assessmerlt an automatic p 3T 37 Give an example of an ordinary life estate with a remainder interest An example of an ordinary life estate with a remainder interest is suppose an older homeoi adjacent to an expandin g univtersity and the university would like to acquire her residence for future univ Suppose also that she is Willing to sell but is not interested in moving A possible solution is for the unive purchase a remainder estate while the owner retains a life estate hi this arrangement the homeovvner retai eXcl39usive tpossession use and enjoyment for her quotlifetime while the university gains the right of dlispositioi compensated either through cash payment or a tax deduction if the remainder is donated and simplifies 1 settlement of her estate While assuring the continued right to occupy her home At the time of her death t and remainder estate are rejoined becoming a complete fee simple absolute owned by the university p 2 38 Be able to understand the tdifference between personal property and fixtures is the rights in any other kind of object not included in real property intellectual matters ie personal and household goods intellectual property music vehicles stocks and h soft Warep 2Ua2 l A is an object that formerly was personal property but has become real property FC dletermine whether an object has become a fixture l The manner of attachment The question in this rule is whether removal of the oquot damage to the property Clearly for example removal of vinyl floor covering would dlamage a buildit may regard removal of wire connecting a dWelling to cable service as being damage as well 2 The character of the article and manner of adaptation Under this rule items that custom designed or custom fitted tend to be regarded as fittures Examples might include window SC windows church pews custom boolltshelves custom draperies or custom security systems 3 The intention of the parties This rule refers not to the private intention of the pa facts of the sit39ua39tion and the intention that an observer would reasonably conclude from them The run would treat the kitchen appliances as personal property in the single fan1ti39ly residence but as fiature apartment 4 Relation of the parties The rule of intention is the most recent and dominant rule That is if there is a coniflict an the rule of inttention generally will prevail p 2223 39 Uindlerstand how much ovvnership the concept of community property affords each spouse di proceedings gives a spouse a one half claim on all property acquired from the l marriage Thus if either spouse should independently acquire property during the marriage it is likxely to by courts as coimmjunity property Excluded from this is property that the husband or wife acquired prior lit or gifts or inheritance received during the marriage all of which is separate property In sorne states com Exarnples of r1on possessory interests in real property are easernents restrictive covenants An is the right to use land for a specific and linriited purposte The purpose can ra passive such as access to a view to virtually exclusive possession of the land such as a street lfigllll0flW E right of wayt p 27 deed restrictions iinpose lirnits on the uses of land As their narne can be created when land is conveyed to a new owner by placing a restrictive clause in the deed that conv property p 29 A is an interest in real property that serves as security for an obligation lit is useful to 1 typesquot general liens and specific liens A general lien arises out of actions unrelated to Kownersihip of the pr specific lien derives directly fron1 events related to a property p 3l ll Leases typically transfer to the tenant all the rights of the owner such as use and enjoyment but NOT the r Essentia39lly they leases are a ternporary conveyance of the rights of exc39lusion u enjoynrent but not the right of disposition p26 42 Since tinnesharing loffers a variety of legal arrangenients a very irnportant factor to consider when selectin opportunity is the the buyer will acqnirve A tirneshare contract may convey any level of real property interest The buyer slice of a true fee sin1ple interest usually as a partial condorniniurn ovvner However the buyer often an leasehold interest for a fixed nun1her of years tenancy for years Thus at the end of the term the buyer s extir1guished Finally it is possible that the buyer only acquires a license for partial use In this case the bl be able to transfer the license Mloreotvter it is revocable Thus the bnyers of a timeshare need to examine legal interest they are getting p 3839 43 Wording in a deed such as ldotesl hereby grant bargaisn sell and convey unto vvould satis elennent of Early in the deed will he vvords such as does herelby grant hargair convey unto h 3 These words of convey39ance serve two main purposes First they assure that the grantor to convey an interest in real property Second they indicate the type of deed offered by the grantor For es the words above or the words convey and warrant generally are taken to indicate a general warranty dee words convey and quitclainr indicate a quitclairn deed The practical rnessage from these suht39leties is th legal professional always should prepare vvords of conveyatnce p 47 44 What are the laws called that require that a docurnent which conveys an interest in real prop in the public records to be binding on the publie Every state also has in1plernented the doctrine of constructive notice tlirough the enactnrenl These lavvs require that a docnrnent conveying an interest in real property be placed in the public binding on the public p 55 45 A grantor hecornes liable for vvhich type of legally binding prornise are legally binding prornises for which the grantor becornes liable that is if the prove to be false the grantee can sue for darnages p 4748 Dernonstrating a good title is a central part of any real estate transaction A contract for salt usually calls for the sellerlgrantor to provide evidence of title as a requisite to cornpleting the sale The sell can meet this requirernent in one of two ways I Title abstract together with an attorney s opinion of title Note that the abstract sLtfficien39t 2 Title insurance C0lTI1Il lill l lE51 l p 57 47 What type of co venant is a prornise that the property will not be claimed by someone with a title a promise that the property will not be clairned by soineoi claim to title 3 48 48 Understand the purpose of Title insurance protects a grantee or rnortgage lender against the legal costs of clefendinlyg against loss of the property in case of an unsuccessful defense Therefore the insurer will refuse to coinrni is in doubt up 57 more on 5859 49 What is a Torrens Certificate A third rarely used means of providing evidence of title is through a Torrens certificate Sir Robert Torrens in Australia in l858 A property is first converted to the Torrens system by going tl1ro ur title search and eXan1ination Then a is issued that is accepted as evidence of good titla point on no tnortgage deed or other conveyance is binding until presented to the Torrens office where it updated Torrens certificate The intent is to sintplify title conveyance However time has not been favoralt systern Though it has been used in a handful of US cities including Boston New York lVllinneapolisampSt Chicago it seldoin appears today p 59 50 What type of deed is Inost cornrnonly used by businesses to convey property because it com business to no additional covenants 39 The has none of the covenants of a vvarrantt y deed lNevertheless it p convey the real property and appears to imply claim to o 39wnertsrihip It commonly is used by businesses to c property because while inlplying ownership it corninits the lbnsirness to no additional covenants which at liability 13 50 Mctes measures br0wtds identp nbIe botmdarics Mensar39cd by the poim of btegfrming and to Seqtter dts tnncesr that eventarnHy heard back to the point of bcgi39nning 3 elernents reference direction degrees ntinutes and seconds of rotation from that direction direction P8 l Examining public records to construct chaiinot tit ea set of deeds docurnents that traces the conveyance of til interests that could lirnit it The Principal Conveyance of Real Property A speciail WtquotilllEEt11 contract for conveying a perntanent interest in 1 Must be in wining to be nphcldi by at court pntentinI Right of go39Vernn1ent to acquire private lancl without the owner s consent for public use with clue process and compensation Title searcli Regulate land use Estahlisli ininiininn require1nent Is siiet ofsofety 39 Fire M39oter39iois39 oior39ms eieetrieol and gas systems Sonitotion P39iamhing woter and HVAC re39qnirement39s Injuryquot Desigri and strength Reflect new te39ehnoi ogy changing pereeptioa ofrieeds Externalities p92 a Go V ern1nen tquot s right to regulate lancl use and set 39111ilI1i39111lL1I139i rstanolards for safe eonstruetion through police power The poWer to9 acquire private property for the benefit of the p nlblie using its power of erninent do C The right to tax properties New Urbanism is an urban olesign 1no Ve1nen t Wliieh promotes walkable neighborhoods that contain a range oi job types p A p A It stibsreribes to the smart growth eomponents bat is more expii39eit in oofvoeoting o treditrilonoi pgria pattern of d desigrieci to give pedestrian fife priortity over rnotor vehidet Public land use control and regulation Subdivision regulations a Local jurisdietions must have corn 1prehernsiVe plans suljrniittetl and approvecl by a state age nCy lj Proposals for large scale ole39v39elltopn1 ent must he aeeonipaniedl lay CUl3910l I1iC and ernviron1nentalin1p that analyze the project s effeot on surrotnndlinpg areas c Funtlher developnient at the local level rnust be prohilbitted unless adequate infrastructnre selhootls 1 pmtetettiton and Social services are in place ol Local govern1nentrnust include an affordalble housing alloeation in their coinprehensive plans Urtder the rnti onoie that growth eon impose brood exterrtoEilties on o commimity some local gove rnmertts have imposed re39strietions on ove39rriil growth In the extreme to temporary growth morotoriam or prohibition ofcieve occurred RTEV3 39kI0 rt10ea50 20rnnr 5i5irn4 Zening pprior N039nee39n39f0rmi39ng tlse Special E1LSSB39S39S139I16t1S Legal procedure for exerrersing the right of eminent nlemain The U39ntf0r1n Standar39ds of Pr 0fersstr0nea1Appraisal Practice Define thee pr0blem selecting and eedfeetfng dam fii HI Ef iH g the hem and best nxee apjplying the three Vaftiafit ree0nei i39eg the iedieatetd vnt nesr that restetttfrem the muIr ip e39 nppmaehes to mtlueti0n emrd preparing the appn 3Ltbmf5ei390n to the elfem Hitgt1est and best use quotH1e39i39npcome z1ppr0nelh t he vnlme of the property srtoek equals the present Vallue of a ltl future meomese quotJ1 Sales eempari1s0n npprnaeln Vadlne of RE can be determined by ar1a1yziLng the sale prices of 3 prope tti es P9 Income apprroaetr Value of a property is the present valne of its emtieipntecl income 3 Cast approach Estii139natedl repr 0dnreti0r1 cost of imprrotvrelnentts EstiLmntecl dtepreeiatironr The sales cnniparisnn apprnachidentifyirng eitements of cnnrparisnan searching fericnmparta39h1e 76a What inip0rtance of the data seilection and celiecitrinn stage of the appraisai The data steiection and collection stage is important becaase it provides the general ecormmic demographic specific and property specific data needed to do an apprai39sai 7739 Whiie cnndlucting an asppraisai at a house the appraiser notes that nne of the CO1T1pElJ i3i6 properties is i a busy street and is in need not some exterior repairs She suhseqnerntly makes a downward adjurstrnent to the W prepeirty Wohat is this d0w39nwtard adjustnient due to The downward adjustment is due tn the need for exterior repairs 78 What is the purpose of an ajppraisai and who uses appraisals The purpose of an appraisal is to ascertain the market value of a particular propertyquot or parcel of land Broii Lenders Local Gavernme39ntsw39hen condemning a property all arse appraisais but even investors and baye sometimes use them Also for tax parpos es an owner cfa praperztfy may get an appraisal hoping for a leave property in order to pay less in taxes 73919 What resource is suitahle for finding inf0rInatinn on the rsnihject and cemparahie properties dnring an a iP ablic r39ecords altipte Liquotstiing ServicesMSfLs and Private Data Servi39cesinchtding Title Compranies 80 What is the term descrihing a property39s most prnhahie sieiiing price assurning quot nnrrnai saies CUIditiDt Normal sales eonditions are when the sale is NOTa result of39Estate aactions F oreclosare proceedings spa intetresttfinancing programs or comminglezd basiness transacitions 81 What is the term used tn dtescrihe the tmaxiimam price a buyer is wiiiing to pay for a prnperty Bnyerr s Investment Value 82 What is a seiierquots investnient vahle Is the minimum he or she would be wi ing to accept 834 The market value of a property can be estin1ated frnim the nhserved transsactinn prices of comnarablei Dr 84 The central concept in the estiniati0n of property market Values even if the parceil is Vacant is the cancel 85 Appraisers must identify factors which may have in uenced the sale princess of prnperties Adjustments nr niade to account for factors such as the conditions of sale farnrah39ie financing terms and changes in rnarket ct adjnstmernts for these types of in uences are ecatierd Transactianaidd Iastments 86 In which way is the disccnunted cash flow V39 iLiLlEliDI method simiiar to the direct capitaliizatinjn Inethnd 4 Because they both depend on making assamptions based on current market conditions pins as cammoniy e is generatiy a combination of ireet Capiitalization and DCF 87 What is the use of sate prices and firrstsy39ear NCs froni coinparahie incnrne properties to deterniine the capitailizatinn rate tor the subject property calieid Direct market extraction 88 Which method for estimating the g0ing in cap rate for a particuilrar preperty is best when given rveiliahlie and expense data direct cap italizatiotn method 89 What type of tease inciudes a cianse reqniring an 8 per year rent increaset Step tip or graduated tease 90 Wcuiid huilding a guard station for a parking garage he considered an nperating expense No it is a capital exprenditarer 91 What types of expenses are considered capital expenditures Rreplarcements additions alteratiionsex Roof repiacements additions oor coverings kitchen at heating and airconditioning equipment electrical and plambing fictares prarihing surfaces and tenan improvements 92 What is the acme rent amount paid by a tenant referred to as Contract rent 93 An appraiser Inust evallnate alll innscome and expense items in terms not current market contdritions tor the 99 Cash Flow 9394 What is leverage The use of mortgage debt to helpp nancei ectpttal investment 93953 What method is a variation of the direct inleolme capitalization Inetliod of valuation used to Value small in pJquotCICl39i39lGilli g properttiesl Grass Irteeme MuItipIi39er GIM Sale PriceEffective Grass Income 96 What is equity Is the dijj 39er39ence39 between the value of thepmperty endquot the value if the mortgageSaIe price L0tm Am0r 9397 What is net operatingt ineorne NCIl p Net Operating Income Efjteett Gross Inet0mle minus all apemtmg costs and capital expenditwest 98 What is effeeti ve gross income is petentinl grease ineomaeifpgi minus wzrcnncy rate plus miscellaneous inreme What are some of the defining elements lot a Life Style retail center connpaired to a more traditional E5I39lCl39OSCd regional rnall39 List at least 3 ellenrents is the new trend in retail ElBV6lOpI39I16ll ll139Jl trorn tlhe traditional sulburban enclosed rnall and lernljrtaeing the Lite Style retail CE lUt39t6I not in textbt my answers Usually open airoutdoor I Mtielli more aestllietieally pleasing 0 Less Tenants I Focused on ereating a quotquotMlain street quotTown Square feel T he new trend is leaning merte tewardfs Lifestyle retail centers 1 0039 Dileserihe the overall progrtannrning of39Tll1e Grove ie size of the total lta39nd area retail square footage numbers parking stalls annenities size oli tllie park and any other elenrents you feel a1 to the overall tappeal of the proj ect How did The Grove and its tenants respond to dine challenge of r tlensity on an infiill site by ljuiltling a rnulti story retail space to get the tenants and customers to succ utilize the upper floors What aequisition vehicle did Caruso Affilitated use in taequtiring the land to I Grove and who did they acquire tlhe land from not in textbotok so this is my mswerj 5l750Ul0 sqft total land area 600000 sqft retail 3500 parking stalls Amenities 3 Trolley Dancing fountain Live flt1USllCS0iI1 lElill39l1lEiS Spirit of lLes AngelesStatue Park area Tlreaters Farsmer st Market lParkin g Concierge Service Kids Clab Entertai39nrnent I Christmas Showtreet lighting Ete p X Central Location Acquired tiforn the Gilrnore Farnily Aequired thrwotigh a Tlhe grove and its tenants responded to die challenge of rnaxirnizing density in a rnulti story retail lee DD39DD39D39OCJCJCJCJ
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