Estates
This estate is a perpetual estate that is not conditioned by stipulated or restricted uses
Fee Simple Absolute
two or more persons collectively own a property as if they were a single person
Joint Tenancy
Appreciation
Sale price x percent of appreciation + Sales price = Appreciation
Net Operating Income
Potential Income - Vacancies - Expenses = NOI
Acre to Feet
43,560 sq ft
In this estate ownership can continue indefinitely, provided the use of the property conforms to certain stated conditions
Fee Simple Defeasible
Condominiums combine what two types of estates
Fee simple in the airspace of unit with tenancy in common of the property's common elements
(Sale price - land value) ÷ economic life = Annual depreciation
Annual depreciation x number of years = depreciation value over time
BTCF
NOI-Mortgage Expenses = BCTF
1 Section
1 section = 36 sq miles
1 section = 640 acres
Estate in which the deed specifies that the property must be used for a specific purpose
Qualified Fee Simple Estate
a single party owns the fee or life estate
Severalty
Real Property Transfer Tax
Sales price ÷ $1,000 x 4 = Real Property Transfer Tax
ACTF
BCTF - Tax Liability = ACTF
Township
36 sections
This estate allows an infinite term, provided the condition is met
Fee Simple on Condition
Two or more owners with identical rights
Tenancy in common
Mortgage Recording Tax
Sales Price/100 x tax rate = mortgage recording tax
Income Tax Liability
(NOI-Depreciation-Mortgage Interest) x Tax bracket = Income tax liability
Total Obligation Ration
Total Monthly Expenses/Total Monthly Gross Income = TOR
Upon the death of the owner or other named individual, this estate passes to the original owner or another named party
Life Estate
a form of ownership reserved exclusively for husband and wife
Tenancy by the entirety
Calculating Mortgage Payments
Loan total x interest rate = year interest due
Yearly interest ÷ 12 = First Month’s interest
Loan total - First month’s interest = First month’s principal
Loan Total - first’ month’s principal = remaining loan total
Capitalization Rate
Income/CAP Rate = Value
Value x CAP Rate = Income
Income/Value = CAP Rate
Housing Expense Ration
Total Housing Expenses/Total Gross Income = HER