Understanding Property Classes and Types: Personal and Real Property, Exams of Real Estate Management

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West Virginia Real Estate Moseley Test

What are the classes of Property? - ANS; Personal Property and Real Property What is personal property? - ANS; Generally movable and unattached items. What is a trade fixture? - ANS; Personal property used for a person's business. (even if it attached to the real estate) What is Fructus Industriales? - ANS; Crops also known as chattle. What general categories does personal property fall under? - ANS; Intellectual, reputation, leases, partnership interests. Real Property - ANS; Everything within a specified block including mining rights, air rights, and general land usage rights. What are some common land improvements? - ANS; Houses, fences, fire pit What categories fall under real property? - ANS; Land, improvements, or real estate (the land plus the improvements.) What fall into fructus naturales? - ANS; Flowers, bushes, trees, and general landscaping. What is a fixture? - ANS; Things like fences and lights that were once movable personal property that were affixed to a property making them fixtures. What is the method of attachment? - ANS; How permanent and attached object is to the property. What is an adaptation? - ANS; When something is specifically made to work with a building and is now a fixture even if it isn't "attached" to a property What can an agreement do? - ANS; An agreement allows for a fixture to be removed. What is a relationship of parties? - ANS; When a renter makes improvements but takes the improvements with him replacing them with the originals when he leaves. Like upgrading a fan and then putting back the original when you leave. What is are rights in real property? - ANS; ownership rights in surface, air, and the dirt of a person's land.

What is included in the bundle of rights? - ANS; Possess property, control property, enjoy property, exclude others, encumber property, and disposal of property by sale. What are water rights? - ANS; The right to use the water that is on your property. What can limit the use of real property? - ANS; Zoning and deed restrictions What is an economic indicator? - ANS; A measurable ecinomic factor (such as real estate) that shows how the economy is or will do. What is the social impact of home ownership? - ANS; The more people who own there homes the more valuable the area is because the homes are better maintained. Whereas an area with a lot of renters is not as nice because they don't feel the need to take care of the property. What is the impact of supply and demand on the housing market? - ANS; The less that are available the more they are worth as long as there is a demand. What does heterogeneous real estate mean? - ANS; Every piece of real estate is different. What are demographics? - ANS; A way of putting people into groups such as population size, population growth, family size, age, and income. How does unemployment and income factor into supply and demand? - ANS; Less employment, means less money, which means less buyers. How does cost and availability of labor factor into supply and demand? - ANS; The more available the materials and labor for home building, the more homes built, and the value of the house lowers. How do governmental policies influence supply and demand. - ANS; The more allowances the government makes the easier and more affordable the housing becomes and so the prices go down but more people are capable of buying. What are the physical characteristics of land? - ANS; Immobility, indestructibility, and uniqueness. What does it mean that land is immobile? - ANS; It can not be moved What does it mean that the land is indestructible? - ANS; You can move land but there is always more land beneath. What does it mean that land is unique? - ANS; No two plots will ever be the same.

What are the economic land characteristics? - ANS; Scarcity, preference, improvements, investment permanence, and assemblage. What is the economic characteristic of scarcity? - ANS; There is a limited supply of land. What is the economic characteristic of preference? - ANS; People will pay more for where they want to be. What is the economic characteristic of improvements? - ANS; Additions made to real estate that are meant to make the land more desirable. What is the economic characteristic of investment permanence? - ANS; How long something will hold the value. What is assemblage? - ANS; Combining two pieces of land that are next to each other and assembling them into one more profitable piece. What are the legal property descriptions used for? - ANS; Deeds and titles. What are the different types of legal descriptions? - ANS; Metes and bounds, government survey, and lot, block, and subdivision. What are metes and bounds? - ANS; Has a point of beginning (POB) and are marked by monuments. Metes are measured in inches, feet, yards, and miles. Bounds use monuments. What is a government survey? - ANS; Principal meridians running north and south and base lines running east and west breaking up land into square sections. What are checks? - ANS; 24 x 24 boxes of land What is a township? - ANS; 6 x 6 box of land What is the lot, block, and subdivision? - ANS; A subdivision plat os a map which notes the layout of lots and their numbers which can be further divided into blocks and lots. What is geodetic survey? - ANS; Includes vertical and horizontal lines and uses a series of permanent ground markers. What is a non-legal property descriptions? - ANS; Describes a property for convenience and not for use on deeds and titles. What are legal property descriptions used for? - ANS; Titles and deeds and legal documents that are turned into the court house.

What is an encumbrance? - ANS; When interest in the land has been given to another party in a way which may diminish the value of the property. What is a lien? - ANS; An encumbrance in which you took out money and your house is used as collateral. Can a house be sold when it has a lien on it? - ANS; Yes. A lien does not transfer the title to the lien holder. If someone buys a house with a lien on it they take on the debt. In what order do liens get paid off in? - ANS; Government liens get paid off first and then after that it is a first come first serve basis. What is the term used when a lien has been paid/removed? - ANS; Satisfaction How is a lien default enforced? - ANS; When a lien needs to be enforced then a court order must be secured then the house is seized and the property is sold. When the property is sold the proceeds pay off the debts. What does lis pendens mean? - ANS; Action pending meaning that a lien is pending. What are the two types of liens? - ANS; General liens which are attached to the debtor and specific liens which apply only to the property. What is the only voluntary lien? - ANS; A mortgage. What is a property tax lien? - ANS; A lien filed against real property when property taxes haven't fully been paid and it remains until it is paid off. What is a special assessment lien? - ANS; A lien that is placed to fund a public improvement. What is a tax lien? - ANS; A lien placed when taxes are not paid off. (PROPERTY tax liens are only when the property tax is what hasn't been paid.) What is a mortgage? - ANS; A voluntary lien when you take out a loan and use your house as collateral. What is a mechanic's lien? - ANS; When a merchant or laborer isn't paid and they place a lien on a property until they get paid. What is a judgement lien? - ANS; When leans are enforced by a writ of execution and usually only cover things in the county in which they were issued. What is an attachment lien? - ANS; When judicial action causes a defendant's personal and real property are seized.

What is an easement? - ANS; It is limited right to use someone else's land. What is the difference between an easement and a license? - ANS; A license is when one person gives another person a personal privilege. What is an easement in gross? - ANS; When the easement is attached to a particular person. What is an easement on appurtenant? - ANS; When an easement is enjoyed by the owner of the land too. What is an express grant? - ANS; An express easement that is conveyed in writing. What is an easement by necessity? - ANS; When it becomes necessary for a person to use anther person's land. Often these easements are used by the government. What is an easement by implication? - ANS; If someone has been doing something on someone else's land openly for a long time then it could be that there is implied permission. What is an easement by prescription? - ANS; When use of land is harmful to the owner but the person has been using the land in access of twenty years. What is an agreement? - ANS; Something created by written consent. What is an easement by condemnation? - ANS; This happens when the government uses eminent domain. How is an easement terminated? - ANS; Termination happens when the need for the easement no longer exists. What is an encroachment? - ANS; When a physical intrusion encumbers someone else's land. What is an estate in land? - ANS; Describes the extent of ownership interest in real property. What is a freehold estate? - ANS; When someone has pure ownership. What is a fee estate? - ANS; Highest and most unrestricted ownership interest in land. What is a life estate? - ANS; An estate conveyed to a person for the duration of someone's life.

What is a life tenant? - ANS; When a tenant holds the property for the duration of his life. What is pur autre vie? - ANS; Means for another's life. Measures the life estate by a third person's life. What are future estates? - ANS; When it is certain that in the future the estate will be given. What is a remainder estate? - ANS; Estate that automatically arises after an existing estate terminates. What is a revision estate? - ANS; An estate that returns to the grantor when the grantee no longer uses the property. What is a non-freehold estate? - ANS; Conveys the right of possession without the right of ownership for a pre-defined period of time. What is a statutory estate? - ANS; An estate created by law including a dower or a curtesy. What is a dower or curtesy? - ANS; Legal right of limited inheritance by a wife or husband. What is a community property? - ANS; The theory that a husband and wife have the same shares in property. What is a homestead? - ANS; Laws protecting spouses of homeowners from property debts. What is sole ownership? - ANS; Individual ownership of real property. What is concurrent ownership? - ANS; When there is co-ownership falling into joint tenancy, tenancy in common, and tenancy in the entireties. What is joint tenancy? - ANS; When the title is held by multiple people. When one person dies the other automatically gets the other person's interest in the property. What is tenancy in common? - ANS; Two people have equal shares in property. Does not have right of survivorship. What is tenancy by the entirety? - ANS; When a husband and wife are a single entity and both have entire ownership of a property. What is a lease? - ANS; Transfers the right of exclusive use and possession for a specified period of time.

What is an estate for years? - ANS; Is a lease with a defined beginning and a defined end date. What is an estate from year to year? - ANS; When a lease automatically renews until one or the other of the parties involved decides to terminate. What is the estate at will? - ANS; No defined end date of lease and can be terminated by either the land lord or tenant. What is an estate at sufferance? - ANS; When a tenet is still on property after he is lawfully allowed to. What is the bundle of rights? - ANS; possess, control, enjoy, exclude, encumber, and dispose. What is marketable title? - ANS; The title is free from defects. What is equitable title? - ANS; The right to receive legal title. What are title searches? - ANS; A physical examination of documents. What is an abstract? - ANS; A condensed history of title. What is title by estoppel? - ANS; The apparent owner failed to provide proper public notice. What is a simple will? - ANS; Outright distribution of assets. What is testamentary trust will? - ANS; One or more trusts set up to distribute property. What is a holographic will? - ANS; An unwitnessed will. What is the pour over will? - ANS; leaves some or all of testator's assets. What is an oral will? - ANS; A will that is spoken (not legally binding in VA) What is living will? - ANS; Instructs doctors with life support. R What is testate? - ANS; When a person has a will. What is intestate? - ANS; Without a will. What is a living trust? - ANS; Names a trustee to manage the assets during a lifetime.

What does a deed do? - ANS; Conveys title. What is a warranty deed? - ANS; Makes promises about the status of properties. This has the greatest protection for the grantee (buyer) of the property. What is a seisin? - ANS; A promise that says a person has what they say they have. What is a bargain and sale deed? - ANS; Contains no explicit promises by the grantor (giver) of the property. What is a quitclaim deeds? - ANS; Conveys "as is" title. What is deed in partition? - ANS; When a structure is divided into multiple dwellings. What is a patent deed? - ANS; When the government gives land to an individual. What is a habendum clause? - ANS; Known as the "have and to hold" clause. What is the testimonium clause? - ANS; This happens at the conclusion of a deed and says "in witness whereof the parties to these present have hereunto set their hands and seal." What is delivery and acceptance? - ANS; Must be delivered by the grantor and accepted by a grantee. What is recording? - ANS; When a deed is recorded it is given to the courthouse so that it can be accessible to the public. What is escrow or closing? - ANS; When the seller gives the title to another person in exchange for money. What is closing in escrow? - ANS; Escrow closings are when an agent is given permission to finish the closing without the buyers/sellers. What is RESPA? - ANS; RESPA stands for real estate settlement procedure act. It is the procedures that ensure that lenders fully inform buyers and sellers of all settlement costs. What does RESPA cover? - ANS; RESPA covers residential loans but not business loans. What principal requirements must lenders follow? - ANS; They must provide a special information booklet, they must offer homeownership counseling, they must give loan estimates, they must make the closing disclosures.

What is the closing disclosures? - ANS; It is the lender disclosing costs by itemizing services provided. What are settlement costs? - ANS; Settlement services are costs that a borrower may be required to pay or receive. What is the servicing disclosure statements? - ANS; Lenders are required to tell applicants in writing if it is expected that someone else will be collecting the loan. What are affiliated business arrangements? - ANS; When different businesses are owned by the same party and a disclosure must be made and an agreement signed. What does the escrow account and operation and disclosure do? - ANS; Prohibits lenders from requiring excessive reserves. The statement must be turned in within 45 days. What is a HUD- 1 - ANS; This itemizes the services of the settlement company. What is the IRS 1099-S Reporting Obligations? - ANS; If real estate transactions are done for money they must be reported on the 1099. Who has to file a 1099-S? - ANS; If using a settlement agency then the settlement agent is responsible unless otherwise stated. What happens if there is no settlement agent responsible to file a 1099-S? - ANS; the mortgage lender, the transferor's broker, the transferee's broker, or the transferee. What is a foreclosure? - ANS; It is when a borrower defaults on a loan and the bank takes the property to pay off the debt. What is a short sale? - ANS; When the bank agrees to sell the house for less then the debt is worth. What is REO? - ANS; REO stands for real estate owned. When a bank can't sell a house through auction then they own the property outright. When a bank has the property they need to sell it as fast as possible. What us ad velorem? - ANS; It means according to value. What is capital gains tax? - ANS; Capital gains tax is a tax on making money. When a person makes under $250,000 they are not required to pay taxes. If it is a married couple then the amount is $500,000. What is a like-kind exchange? - ANS; When two pieces of property are swapped instead of exchanging money.

For internationally buyers what percent of the total price is withheld until the next tax period? - ANS; % What is probate? - ANS; When someone dies and the court has to deal with it. What is the probate estate? - ANS; Contains all the property of a deceased person. What is police power? - ANS; The government authority to create laws. What is eminent domain? - ANS; When the government possesses property to use "for the good of the community" What is escheat? - ANS; When a property goes to the government because there are no heirs. What is due process? - ANS; Constitutional limits on the government. What is zoning? - ANS; Divides a city into districts and limits the uses of land so they are like the lands around them. What is a restrictive covenant? - ANS; Usually rules imposed by a developer to regulate the communities. What is an HOA? - ANS; HOA stands for home owners association. What is property management? - ANS; When a home owner turns the management of their rental property over to a brokerage. What disclosures must be maid about lead based paint. - ANS; If you sell or lease a property built before 1978 you must disclose any knowledge of lead based paint in a home. What is a gross lease? - ANS; A flat lease where the rent is pre-determined. The owner pays for taxes and repairs. What is a net lease? - ANS; There is a pre-determined lease and renters also pay for shares of the expenses. What is a percentage lease? - ANS; Base rent but when a tenant makes more than a predetermined amount of money a percent of the extra goes to the land lord. What is a graduated lease? - ANS; Rent increases by percentages every year. What is a ground/land lease? - ANS; Land is leased and the tenant may build but whatever is installed must stay.

What is a property lease? - ANS; No fixed rent the tenant pays for parts of the costs of the land. What is a PUD? - ANS; Planned unit developments are a group of homes whose owners pay a small association fee in order to maintain the community. What does HUD stand for? - ANS; Housing and urban development. What is the federal interstate land sale full disclosure act? - ANS; An act that requires land developers to register subdivisions. What is a property report for? - ANS; Property reports talk about proximity to other communities, mortgages/liens, escrows, recreational facilities, services, utilities, etc. What is the ADA? - ANS; The Americans with disabilities act. What things must be done to create a contract? - ANS; offer/acceptance, consideration, and lack of defenses. What is an offer? - ANS; A promise from one party to another to enter into a binding agreement under specified terms. What is a lapse of time? - ANS; When something expires on its own due to inaction. What is the difference between voidable and void. - ANS; Voidable is when you have reasonable grounds to void. Void is when the contract is no longer valid. What is an estoppel? - ANS; Legalities that stop a person from canceling a contract. What is the difference between a unilateral contract and a bilateral contract? - ANS; In a unilateral contract one party promises to perform. In a bilateral contract both parties promise to perform. What is a novation? - ANS; When parties decided to substatute one agreement with another that fufills part or all of the previous agreement. What is specific performance? - ANS; When the court makes the breaching party followthrough with a contract. What is lapse of time? - ANS; When a deadline passes and a contract automatically expires. What is consideration? - ANS; The beginning of the bargaining. What is an estoppel? - ANS; Legalities that stop people from just canceling contracts and causes them to follow through on promises.

What is the difference between a unilateral and a bilateral contract? - ANS; A unilateral contract is when one side promises to perform under specified conditions. A bilateral contract is when two parties are obligated to act. What is executory? - ANS; When the parties reach an agreement but still have to act on it. When is a contract executed? - ANS; When the contract has been fulfilled. What does time is of the essence mean? - ANS; When the parties have agreed upon a defined time. What is novation? - ANS; When parties agree to substatue one agreement for another. What is an open listing? - ANS; An agreement between a seller and many brokerages. Whoever makes the sale gets the comission. What is an exclusive listing? - ANS; When only one brokerage has a listing. What is earnest money? - ANS; A cash deposit that generally accompanies an offer. What is a novation? - ANS; When parties decided to substatute one agreement with another that fufills part or all of the previous agreement.