Washington Real Estate Fundamentals

by Haupt, Kathryn J.

• ISBN13: 9781887051163
• ISBN10: 1887051163
• Format: Paperback
• Copyright: 2004-08-01
• Publisher: Rockwell Pub

Table of Contents

The Nature of Real Property	1	(22)
What is Real Property?	2	(1)
Appurtenances	3	(3)
Air Rights	3	(1)
Water Rights	3	(2)
Solid Mineral Rights	5	(1)
Oil and Gas Rights	5	(1)
Other Appurtenant Rights	5	(1)
Attachments	6y	(3)
Natural Attachments	6	(1)
Man-made Attachments: Fixtures	6	(1)
Distinguishing Fixtures from Personal Property	6	(2)
Mobile Homes as Fixtures	8	(1)
Methods of Legal Description	9	(14)
Metes and Bounds	9	(2)
Government Survey	11	(3)
Lot and Block	14	(1)
Other Methods of Land Description	14	(9)
Estates in Land and Methods of Holding Title	23	(18)
Estates	24	(4)
Freehold Estates	24	(3)
Leasehold Estates	27	(1)
Methods of Holding Title	28	(13)
Ownership in Severalty	28	(1)
Concurrent Ownership	28	(3)
Forms of Business Ownership	31	(3)
Condominiums and Cooperatives	34	(7)
Transfer of Real Property	41	(22)
Alienation	42	(1)
Voluntary Alienation	42	(6)
Patents	42	(1)
Deeds	42	(5)
Wills	47	(1)
Involuntary Alienation	48	(4)
Dedication	48	(1)
Intestate Succession and Escheat	49	(1)
Condemnation	49	(1)
Court Decisions	49	(1)
Adverse Possession	50	(2)
Accession	52	(1)
Recording	52	(2)
Title Insurance	54	(9)
Encumbrances	63	(16)
Financial Encumbrances (Liens)	64	(4)
Types of Liens	65	(1)
Lien Priority	66	(1)
The Homestead Law	67	(1)
Non-Financial Encumbrances	68	(11)
Easements	68	(3)
Profits	71	(1)
Licenses	71	(1)
Encroachments	71	(1)
Nuisances	72	(1)
Private Restrictions	72	(7)
Public Restrictions on Land	79	(16)
Land Use Controls	80	(5)
Comprehensive Planning	80	(1)
Zoning	81	(2)
Building Codes	83	(1)
Subdivision Regulations	83	(1)
Environmental Laws	84	(1)
Eminent Domain	85	(1)
Taxation	86	(9)
General Real Estate Taxes	86	(1)
Special Assessments	87	(1)
Real Estate Excise Tax	88	(7)
Contract Law	95	(22)
Legal Classifications of Contracts	96	(1)
Elements of a Valid Contract	97	(5)
Capacity	97	(1)
Mutual Consent	98	(2)
Lawful Objective	100	(1)
Consideration	101	(1)
The Writing Requirement	101	(1)
Legal Status of Contracts	102	(2)
Discharging a Contract	104	(1)
Breach of Contract	105	(2)
Tender	107	(1)
Types of Real Estate Contracts	108	(9)
Listing Agreements	108	(1)
Purchase and Sale Agreements	108	(1)
Land Contracts	109	(1)
Leases	109	(1)
Escrow Instructions	109	(1)
Option Agreements	109	(8)
Real Estate Agency Law	117	(30)
Creating an Agency Relationship	119	(2)
Express Agreement	119	(1)
Ratification	119	(1)
Estoppel	120	(1)
Implication	120	(1)
Creating a Real Estate Agency	120	(1)
The Legal Effects of Agency	121	(2)
Duties in an Agency Relationship	123	(4)
The Licensee's Duties in General	123	(2)
Agent's Duties to the Principal	125	(2)
Breach of Duty	127	(1)
Terminating an Agency	127	(2)
Real Estate Agency Relationships	129	(8)
Agents in a Typical Transaction	129	(1)
Agency Relationships: a Historical Perspective	130	(2)
Types of Agency Relationships	132	(5)
Agency Disclosure Requirements	137	(2)
The Broker/Salesperson Relationship	139	(8)
Listing Agreements	147	(20)
Earning a Commission	148	(3)
Ready, Willing, and Able Buyer	149	(1)
Types of Listing Agreements	150	(1)
Elements of a Listing Agreement	151	(16)
Basic Requirements	151	(1)
Provisions of a Typical Listing Agreement Form	152	(15)
Purchase and Sale Agreements	167	(32)
Purpose and Effect of a Purchase and Sale Agreement	168	(1)
Who May Prepare a Purchase and Sale Agreement	169	(1)
Elements of a Purchase and Sale Agreement	170	(11)
Contingency Clauses	181	(4)
Financing Contingencies	182	(1)
Contract Conditioned on Sale of Buyer's Home	183	(1)
Inspection Contingencies	184	(1)
Second Buyer Contingencies	185	(1)
Property Disclosure Laws	185	(14)
Seller Disclosure Law	185	(1)
Lead-Based Paint Disclosure Law	186	(13)
Principles of Real Estate Financing	199	(24)
The Economics of Real Estate Finance	200	(4)
Real Estate Cycles	200	(1)
Interest Rates and Federal Policy	201	(3)
Real Estate Finance Markets	204	(2)
Primary Market	204	(1)
Secondary Market	205	(1)
Real Estate Finance Documents	206	(8)
Promissory Notes	206	(2)
Security Instruments	208	(1)
Security Instrument Provisions	209	(2)
Foreclosure Procedures	211	(2)
Land Contracts	213	(1)
Types of Mortgage Loans	214	(9)
Applying for a Residential Loan	223	(28)
Choosing a Lender	224	(6)
Types of Mortgage Lenders	224	(2)
Loan Costs	226	(4)
The Loan Application Process	230	(3)
Basic Loan Features	233	(5)
Loan Term	233	(1)
Amortization	234	(1)
Loan-to-Value Ratios	235	(1)
Secondary Financing	236	(1)
Fixed and Adjustable Interest Rates	236	(2)
Residential Financing Programs	238	(13)
Conventional Loans	238	(2)
FHA-Insured Loans	240	(2)
VA-Guaranteed Loans	242	(9)
Real Estate Appraisal	251	(32)
Value	253	(3)
Market Value	253	(1)
Principles of Value	254	(2)
The Appraisal Process	256	(2)
Gathering Data	258	(6)
Methods of Appraisal	264	(9)
Sales Comparison Approach to Value	264	(4)
Cost Approach to Value	268	(2)
Income Approach to Value	270	(3)
Reconciliation and Final Estimate of Value	273	(10)
Closing Real Estate Transactions	283	(22)
Escrow	284	(2)
Escrow Agent Registration Act	285	(1)
Closing Costs and Settlement Statements	286	(6)
Preparing a Settlement Statement	286	(1)
Guide to Settlement Statements	286	(6)
Income Tax Aspects of Closing	292	(1)
1099 Reporting	293	(1)
FIRPTA	293	(1)
Real Estate Settlement Procedures Act	293	(12)
Transactions Covered by RESPA	293	(1)
RESPA Requirements	294	(1)
Uniform Settlement Statement	294	(11)
Federal Income Taxation and Real Estate	305	(18)
Basic Taxation Concepts	306	(4)
Progressive Tax	306	(1)
Income	306	(1)
Deductions and Tax Credits	306	(1)
Gains and Losses	307	(1)
Basis	307	(1)
Adjusted Basis	308	(1)
Realization	308	(1)
Recognition and Deferral	309	(1)
Classifications of Real Property	309	(1)
Nonrecognition Transactions	310	(3)
Installment Sales	310	(2)
Involuntary Conversions	312	(1)
Sales of Low-Income Housing	312	(1)
``Tax-Free'' Exchanges	312	(1)
Exclusion of Gain from the Sale of a Principal Residence	313	(1)
Deductions Available to Property Owners	314	(9)
Depreciation and Cost Recovery Deductions	314	(1)
Repair Deductions	315	(1)
Property Tax Deductions	316	(1)
Mortgage Interest Deductions	316	(7)
Civil Rights and Fair Housing	323	(18)
The Civil Rights Act of 1866	324	(1)
The Civil Rights Act of 1964	325	(1)
The Federal Fair Housing Act	325	(4)
Exemptions	325	(2)
Prohibited Acts	327	(1)
Handicap and Familial Status	328	(1)
Enforcement	329	(1)
Fair Lending Laws	329	(1)
Equal Access to Facilities	330	(1)
Washington Antidiscrimination Legislation	331	(10)
Washington Law Against Discrimination	331	(2)
Washington Fairness in Lending Act	333	(1)
Washington Real Estate License Law	334	(7)
Property Management	341	(28)
Investing in Real Estate	342	(3)
Types of Managed Properties	345	(1)
The Management Agreement	346	(1)
The Management Plan	347	(6)
Preliminary Study	348	(2)
The Management Proposal	350	(3)
Management Functions	353	(5)
Leasing and Tenant Relations	353	(2)
Recordkeeping and Manager/Owner Relations	355	(1)
Maintenance	356	(2)
Landlord/Tenant Law	358	(11)
Requirements for a Valid Lease	358	(1)
Lease Provisions	358	(1)
Transferring Leasehold Estates	359	(1)
Terminating a Leasehold Interest	360	(2)
Types of Leases	362	(7)
Washington Real Estate License Law	369	(40)
Administration of the License Law	370	(1)
Real Estate Licenses	371	(8)
When a License is Required	371	(1)
Exemptions from Licensing Requirements	372	(1)
Types of Licenses	373	(1)
Licensing Qualifications and Applications	374	(3)
License Expiration and Renewal	377	(2)
Regulation of Business Practices	379	(11)
Agency Relationships	379	(2)
Broker's Supervisory Responsibilities	381	(1)
Affiliations and Termination	382	(1)
The Broker's Office	382	(1)
Advertising	383	(2)
Trust Accounts	385	(2)
Records	387	(1)
Commissions	387	(1)
Handling Transactions	388	(2)
Discrimination	390	(1)
Disciplinary Action	390	(4)
Grounds for Disciplinary Action	391	(1)
Disciplinary Procedures	392	(1)
Sanctions for License Law Violations	393	(1)
Antitrust Laws and their Effect on Licensees	394	(15)
Real Estate Math	409	(34)
Solving Math Problems	410	(5)
Area Problems	415	(4)
Squares and Rectangles	415	(1)
Triangles	416	(1)
Odd Shapes	417	(2)
Volume Problems	419	(1)
Percentage Problems	420	(10)
Solving Percentage Problems	420	(1)
Commission Problems	421	(2)
Loan Problems	423	(1)
Profit or Loss Problems	424	(2)
Capitalization Problems	426	(4)
Tax Assessment Problems	430	(1)
Seller's Net Problems	431	(1)
Proration Problems	432	(11)
Property Tax Prorations	432	(2)
Insurance Prorations	434	(1)
Rent Prorations	434	(1)
Mortgage Interest Prorations	435	(8)
Glossary	443	(52)
Appendix: National Association of Realtors® Code of Ethics	495	(14)
Index	509