REAL Exam 1

The period from 1975 to 2000 saw a consistent rise in US housing prices. This was fueled by population growth and overall inflation.

Between 2000 and 2007, housing prices experienced a dramatic boom. This was driven by subprime lending and speculative buying, where people invested in homes hoping for quick profits.

The years from 2007 to 2012 marked a sharp decline in US housing prices. This was a direct result of the bursting of the housing bubble, leading to a significant drop in value.

After the downturn, the US housing market began to recover between 2012 and 2020. This period saw housing prices gradually increasing as the economy stabilized and people started buying again.

From 2020 to 2025, the US housing market experienced a surge in prices, often referred to as a boom. This was influenced by the pandemic, low interest rates, and a high demand for homes.

The user market determines the value of property rent and income. It's all about the supply and demand of space, impacting the cash flow of a property.

Tangible property can take three forms: surface (including fixtures), subsurface (underground), and air (above ground).

The capital market determines the investment value of real estate. This involves analyzing factors like interest rates, risk, and return on investment.

The right to use, occupy, and control real property. This includes benefits like living on the land, renting it out, or extracting resources.

The right to use or control a property without possessing it, like an easement.

Personal property that becomes attached to real property and is considered part of the land. It might be a cabinet fixed to a wall or a built-in bookcase.

A type of freehold estate where the owner has complete ownership and can sell, transfer, or will the property without restrictions.

A type of freehold estate where ownership is subject to certain conditions. If the condition is violated, the property may revert back to the grantor.

A type of easement that benefits a specific piece of land. For example, a driveway easement that allows access to a neighboring property.

A type of easement granted to a specific person or entity, not a particular property. For example, a utility company easement to access power lines.

A right to use another's land for a specific purpose. It grants limited access or rights to use a portion of the land.

The combined forces of the capital market (investors seeking returns) and the user market (people needing space) determine the value of real estate.

The time it takes to plan, secure financing, and construct a real estate project. This extended timeframe makes real estate vulnerable to market fluctuations.

Real estate is typically developed and traded in large, indivisible units, such as entire buildings or tracts of land. This 'lumpiness' can lead to imbalances between supply and demand.

Built structures and land are durable, lasting for decades. This creates challenges in reducing supply quickly when markets weaken, leading to prolonged downturns.

The legal right to occupy and use a property, lasting indefinitely and without limitations on rights. This includes the most complete set of rights, providing ownership and control.

Limited ownership rights tied to a specific person's lifetime, often paired with a 'remainder interest' that transfers the property to another individual after the lifetime owner's death.

Ownership rights grant use but not permanent possession. These are temporary, granted by a lease agreement, with varying terms and conditions.

Legal rights that do not involve occupying the property, granting limited access or use without exclusive possession. Examples include easements, liens, deeds.

The parcel of land that benefits from the easement.

The parcel of land that is burdened by the easement.

An easement that allows the holder to use the servient property in some way.

An easement that restricts the owner of the servient property from doing something.

The seller guarantees that no title defects or encumbrances arose only during their period of ownership.

Transfers ownership in court-ordered sales. Used when a property is sold under court supervision, such as in foreclosures, tax sales, or estate settlements. Ensures the legal transfer of ownership when the original owner cannot or will not sign a deed.

Does not convey or guarantee ownership of property - simply for paper trail. Common Uses: Family transfers, divorce, trusts, title corrections

Property acquired through open, continuous, and hostile possession for a specified period (usually 10-21 years).

A physical use of the property, visible to others and not hidden

Property boundaries are described using physical landmarks, distances, and compass directions.

A system of dividing land into townships, sections, and quarter sections based on a grid system.

Divides the map into a series of 6 by 6 mile townships (36 square mile area). Each township is further divided into 36 sections, each 1 mile squared.

A legal document that transfers ownership of real property from one person to another.

Legally binding promises made by the grantor in a deed, ensuring the grantee that the property is free from undisclosed issues.

The grantor has a valid title and the right to convey it to the grantee.

No liens, easements, or other encumbrances on the property, unless disclosed to the grantee.

The grantee can possess and enjoy the property without interference from others claiming ownership.

A clause in a deed that defines the type of interest being transferred to the grantee. (e.g., easement, fee simple conditional, fee simple absolute)

A deed where the grantor guarantees that the title is free from defects and encumbrances, regardless of when they occurred, even before the grantor owned the property.