FIN 331 Phase 1 Exam Review Chapters 1

FIN 331 Phase 1 Exam Review Chapters 1, 2, 3, 4, 5 50 M/C Ques. 90 minutes Real Estate FIN 331 Fall 2020

Phase 1 Exam Review Chapter 1: Key Terms (12 Ques. ) 1. 2. 3. 4. 5. 6. 7. Real Estate Capital Markets User Markets Capitalization Rates Tangible vs. Intangible Assets Real Property Appurtenances

Phase 1 Exam Review Chapter 1: Concepts 1. Real Estate can be used in three fundamental ways: 2. Real Estate is Unique: 3. Three economic sectors that affect real estate value:

Phase 1 Exam Review Chapter 1: General Information 1. Supply and demand are major value factors 2. Users include buyers and renters 3. Capital Markets can be; a. Public b. Private

Phase 1 Exam Review Chapter 2: Key Terms (13 Ques. ) 1. License 2. Law of Capture 3. Forms of Titled Estate: a. b. c. d. Fee simple (absolute) Fee simple Defeasible Ordinary Life Estate Legal Life Estate

Phase 1 Exam Review Chapter 2: Key Terms 4. Types of Tenancy: (Lawful possession of property) § § § In Common Joint Entirety 5. Property rights 6. Restrictive Covenants:

Phase 1 Exam Review Chapter 2: Key Terms 7. Forms of [Leasehold] Tenancy: a. b. c. d. Tenancy for years: Periodic tenancy: Tenancy at will: Tenancy at sufferance: 8. Liens: (a non-possessory interest in real property) in order of priority, by date filled 9. Easements: (right to use for particular purpose) a. Easements Appurtenant: b. Easements in Gross:

Phase 1 Exam Review Chapter 2: Key Terms 10. Common Interest Developments a. b. c. d. Condominiums: Townhouses: Cooperatives: Timeshares: § Timeshare Estate: fee simple interest in property § Timeshare Use: purchases the right to use the property – a form of non-possessory right.

Phase 1 Exam Review Chapter 2: Concepts Non-Possessory Rights Ø Affirmative easements (right of ways, sewer lines) Ø Easements Appurtenant § Dominant Parcel (recipient of benefit) § Servient Parcel (rights constrained by easement) Ø Easements in Gross § Commercial easements Liens Ø Tax and Assessments, [mortgages], Mechanic’s , Court Awarded Damages

Phase 1 Exam Review Chapter 3: Key Terms (12 Ques. ) 1. Adverse Possession: 2. Covenant of Seizin: 3. Types of Deeds: a. b. c. d. General warranty: Special warranty: Deed of bargain and sale: Quitclaim deed

Phase 1 Exam Review Chapter 3: Key Terms 4. 5. 6. 7. 8. Doctrine of Constructive Notice: Habendum Clause: . Metes and Bounds: Title Abstract / Insurance: Easement by Estoppel:

Phase 1 Exam Review Chapter 3: Requirements for a Deed 1. 2. 3. 4. Grantor* and grantee** Recital of consideration Words of conveyance Covenants a. Seizin b. No Encumbrances c. Quiet Enjoyment 5. Habendum Clause

Phase 1 Exam Review Chapter 3: Requirements for a Deed 6. 7. 8. 9. Exceptions / Reservations Description of land Acknowledgement Delivery

Phase 1 Exam Review Chapter 4: (4 Ques. ) 1. Eminent Domain: 2. Condemnation: 3. Inverse Condemnation:

Phase 1 Exam Review Chapter 5: Determinants of Value (9 Ques. ) A. The four elements of value: 1. 2. 3. 4. Demand, Supply (scarcity), Utility, Transferability B. 2. The five (5) attributes of Real Estate (land, buildings): 1. 2. 3. 4. 5. Uniqueness of location, composition, durable, finite supply, usefulness.

Phase 1 Exam Review C. The four major forces influencing real estate values: 1. 2. 3. 4. Economic Forces: Social Forces: Environmental Forces: Governmental Forces: