Basic Real Estate Concepts

Question 1

Land

Answer 1

Is the Earth’s surface, extends down to the center of the earth with subsurface rights, and stretches upward to infinity with air right

Question 2

Real estate includes…

Answer 2

Land at, above, or below the earth’s surface and all things permanently attached to the land, both natural and man-made

Question 3

Real property includes…

Answer 3

interests, benefits, and rights that are automatically included in the ownership of land and real estate

Question 4

Physical characteristics of real estate

Answer 4

Immobility, indestructability, uniqueness

Question 5

Economic characteristics of real estate

Answer 5

scarcity, location, improvements, permanence of investment

Question 6

Real Estate Brokerage

Answer 6

business of bringing people together in a real estate transaction

Question 7

Broker

Answer 7

person who is licensed to LL BEANS for others for compensation

Question 8

Provisional Broker

Answer 8

Conducts activities under the supervision of a BIC until they complete the requirements to become a nonprovisional broker

Question 9

Appraisal

Answer 9

process of estimating a property’s market value that is based on established methods and an appraiser’s professional judgment, and is regulated by licensing

Question 10

Factors that affect Supply of real estate

Answer 10

labor force availability, construction and material costs, government controls (environmental restrictions, land use, building codes, zoning), government financial policies that impact interest rates and the money supply

Question 11

Factors that affect Demand of real estate

Answer 11

population, demographics, employment and wage levels