A quick google search will bring up plenty of local brokers and agents websites that will search your local MLS (multiple listing system).  While these sights are all searching the same place (depending on your location and how your MLS is organized) not all agents websites are created equal.  You want to find one that is simple to use, has a quick search feature, and gives access to mapping and satellite images.  Also, the good ones will have links for school systems, crime statistics, and other information pertaining to the area.  Some sites will force you to sign up after spending a certain amount of time on their site or after viewing a specific number of pages.  If you complete a sign up form on an agents website and they don’t get ahold of you within a day or so move on.  There are many agents who keep close eye on their sites traffic and get immediate notifications when someone logs onto their site.  A good search site will allow you to search for specifics about a property and allow you to make changes to your search criteria without starting over.  Quick driving directions are helpful to if you plan on driving around and seeing properties for yourself before you contact an agent.

After you have searched around for different agents or brokers websites and chosen one to use, it is time to research the agent(s).  Most likely, the website will have a link to learn a little more about your agent.  Having a little bit of background knowledge about the person who is going to help you make the biggest financial investment you are going to make is only prudent.  It also helps you find some common ground between you and your agent.

This is a good start if are just beginning to look for a new home.  We will continue with this topic soon, as well as beginning to find financing for you home as well.

Lets start with some definitions.

The Trustor is the person that creates the trust.  With me so far??

The Trustee is the person (or company) that is responsible for carrying out the trust.  This could include holding on to property, money, or any other “stuff”.  So, to review, the Trustor gives something to a Trustee to hold on to for a prescribed amount of time.  The Trustee is required to give certain loyalties to the Trustor and must follow his or her instructions.

The Beneficiary is the person who receives the benefits of the trust.

So, lets give an example of how a trust might work. Lets say Grandpa wants to leave a large parcel of land to little Johnny.  Maybe he wants to do it for tax reasons or possible inheritance issues that doesn’t matter right now.  Grandpa hires a lawyer to be the Trustee.  Who is the Trustor??  Very good, that is Grandpa and little Johnny is the Beneficiary.  Once all the paper work is signed the lawyer is holding onto the property.  Now, somewhere in the stack of legal jargon explains what needs to happen for Johnny to take possession of the property.  For our example, lets say that it occurs when he turns 25.  When that magical day comes after a little more paper work Johnny takes possession of the property and that is that.

There are all sorts of other random reasons both people and companies create trusts.  Whether it is to distribute funds, hide ownership of property, or any other creative reasons people give people their things to hold on to.  Yes, sometimes the Trustor can also be the Beneficiary too!

Let’s leave things at that for now.  Again, the more you know about the little details of the real estate industry, the better chance at negotiating a better deal on your next purchase!

The first type of ownership is called Severalty.  While this seems to look like it has the word “several” meaning more than one, it actually has the word sever, meaning severing rights from everyone else but the owner.  Being the most simple forms of ownership it should go without saying, but the single owner has all of the rights of possession that we talked about earlier.  So Severalty means ONE owner.  (That one owner can be a company too)

There are a couple different types of Co-Ownership, meaning more than one owner.  A Tenancy in Common means there are two or more owners who each own an undivided amount of the property.  If one of the owners were to die the ownership rights would pass on as directed by the will of that owner.

Joint Tenancy is a bit more complicated.  Again it requires two or more owners but includes what is called the “Right of Survivorship” meaning that when one owner dies, the other owners have a claim to that owners interest instead of it going to the owners heir.  To create a joint tenancy requires something called the four unities.  They are:

Unity of Possession-all joint tenants hold an undivided interest

Unity of Interest – all joint tenants hold equal ownership

Unity of Time – all joint tenants acquire their interest at the same time

Unity of Title – all joint tenants acquire their interest by the same document

Joint tenancy is terminated if any one of these unities is terminated, or may be terminated by court order.

A Tenancy by the Entirety is a special form of ownership for married couples.  Each person has an undivided interest with the right of survivorship (the other spouse gets the entire interest if one dies).  Tenancy by the entirety can be terminated by death of either spouse, agreement of both parties, divorce, or court ordered sale.

There is a bit more to ownership getting into trusts, but we will save that for next time!

Single family homes are the most common types of property for residential real estate.  Town homes or Patio homes are single family dwellings that share at least one wall.  Sometimes this can include two separate homes or four or even more.

Apartment complexes are usually groups of buildings with multiple units in each building.  The building may or may not be multi-story or even a high rise tower.  Most complexes include parking.  Some apartment complexes include the use of a clubhouse, swimming pool, tennis courts, and exercise facilities.  Apartments are usually leased for a specified amount of time while ownership resides with the landlord or property owner.  The property owner may hire a person or company as a property manager who oversees the day to day operations of the apartment complex including showing available units and arranging maintenance for current lessees.

Condominiums are similar  to apartment complexes with the major difference being that condo’s are purchased instead of leased.  They can have many of the same amenities as apartment complexes as well.  Condo’s are purchased in the same manner single family homes are purchased.  Condo owners share ownership and use of the common facilities, but while they are considered part owners of these common elements, that does not mean they have any right to divide them.  Condo’s are great alternatives to folks who cannot afford a single standing home but still want all of the benefits of ownership

A Planned Unit Development or PUD blend different land uses including housing, recreation, and commercial units into one contained development.  This can be as small as one little building or an entire city depending on zoning.  Owners do not share ownership in the common areas like they do in condominiums.

Retirement communities are usually located in temperate areas are sometimes designed as PUD’s.  This provides seniors with shopping, recreation, and dining all in a centralized area.

High Rise Developments sometimes called Multi Use Developments or MUD’s can combine office space, retail outlets, and apartments in a single vertical community building.  These communities are sometimes self contained with their own laundry, restaurants, shops, beauty parlors, swimming pools, and other services.

Converted Use Properties are factories, warehouses, office buildings and other non residential structures that have been converted into residential use properties.  This can be an alternative to destroying or demolishing structures.  Large warehouses have been converted into luxury apartments by savvy developers.

Manufactured Housing including mobile homes have become increasingly attractive.  Before thought of as temporary residences are now built on permanent foundations with connections for utilities including gas, electric, and water.

Modular Homes or Prefabricated Homes are actually built off site and driven to the building site.  After the frame is assembled workers finish the structure and connect utilities.  This method creates homes that are very similar but at a reduced cost to a standard built home.

Time Shares are properties that are owned by multiple owners that are entitled to use the property for a particular amount of time for the year, usually in terms of weeks. Owners pay an annual maintenance fee in addition to their purchase price.  Most time shares are used as vacation homes or investments.

Now that we have an idea of all of the different types of housing out there we will take a look at what forces out there drive our decision to buy real estate.

Scarcity – there is a limited amount of land on this planet… the total supply is not limitless

Improvements – Is there a building on the land?  Or is there toxic waste under the land?

Permanence of Investment – are the utilities available or installed on the land?  Is it cleared or is it wooded?

Location – rather obvious, but includes a number of different factors that can be unique to each parcel of land

Then we have Physical characteristics.  They inlcude:

Immobility – You can move the land.  You can move the dirt on the land, but that location will always be there.

Indestructibility – Land is permanent, this lends to the stability of land as an investment

Uniqueness – No two parcels of land are exactly alike, because they must occupy different space, so each parcel is different.

What does this help you when it comes to buying your next home or negotiating a better price.  Probably nothing, but the better you know the basics of how this industry works and some rules that govern it, you will be a better educated home buyer, and that is our goal, isn’t it?

Land is defined as the earths surface.  It extends downward to the center of the earth.  Land includes subsurface and mineral rights as well as other natural resources that occur underground.  Land also includes the air rights up to infinity!  These air rights and subsurface rights can be sold off apart from the land as well.  Land also includes “fructus naturales” or fruits of nature like trees and crops that do not need cultivation.  A bit more than you originally thought, isn’t it?

Next comes real estate.  Real estate is all of the surface, subsurface and air rights included in the definition of land, plus all things permanently attached to that land.  These improvements can be natural or artificial (man made such as buildings), but that is not all!

Real property is defined as the interst, benefits, and rights that are automatically included in the ownership of land and real property.  These rights inlclude:

Right of Possesion – To live on the that land
Right to Control the property within the framework of the law
Right of Enjoyment – To us the property in any legal manner
Right of Exclusion – To keep other people from entering or using your property
Right of Disposition – To sell, will, transfer or otherwise dispose the property

This is usually shortened to the word “Realty,” which means “Real Property.”  Who would want to buy a home and not expect to have all of these rights included?  So when we talk about real estate, we usually mean real property because we mean to include all of the rights that come with buying property.

Title to real property means the right to ownership of the land, bundle of rights (above) and evidence of ownership by written document, a deed, by which the title is transfered.

An appurtenance is a right or privilege associated with real property in some way, such as a parking space in a multistory building, an easement (when someone else has rights to use your land) or air rights, and is normally conveyed to the new owner when the property is transfered.

A fixture is personal property that has been affixed to the land or building so that by law it becomes part of the real property.  For example, when you install a new sink fixture in your bathroom, when you purchased the sink it was your own personal property, but when you installed the sink and it became part of the bathroom, it became real property and would now stay with the home if you sold it.

Well that is a good start.  Knowing those key terms will help you become a more educated buyer which will help you to find and negotiate better deals for you in the long run.

Again, welcome to class.  Now, if you would, take you seats, lets begin!