Basic Real Estate Concepts

Question 1

Real estate, real property, realty or land

Answer 1

A combination of land, improvements, and rights & privileges. Ownership defined by deed.

Question 2

Personal property, personalty or chattel

Answer 2

Movable property that belongs to a person and is something other than real estate. (i.e. furniture, possessions)

Question 3

Appurtenance

Answer 3

Runs with the land. (Ie house or any rights that come with land)

Question 4

Improvements

Answer 4

Anything added or considered improvement to the property.

Question 5

Tenements

Answer 5

Ownership interest in anything immobile and is considered real property(ie. apartments or housing)

Question 6

Hereditaments

Answer 6

Any rights capable of being inherited(pensions, rent charges)

Question 7

Scarcity

Answer 7

Availability or rarity

Question 8

Modification by improvement

Answer 8

Increased economic supply. (Ie developement and growth in an area) to the land not on the land

Question 9

Permanence of investment

Answer 9

Level at which investment in the land is gauged. The longevity or long term investment value of investments in improvement

Question 10

Situs(location)

Answer 10

Where the land is located

Question 11

Immobility

Answer 11

The distinguishing feature of property that is real and property that is personal (chattel) the location of the property cannot be changed

Question 12

Permanence (indestructibility)

Answer 12

Land is permanent and cannot be destroyed. Topography can be changed but not the physical location.

Question 13

Economic obsolescence

Answer 13

The loss of property value due to surrounding elements. (Not to be confused with property depreciation)

Question 14

Uniqueness (non-homogeneity)

Answer 14

Two properties can seem entirely identical but this never the case with real estate. Connects to the concept of specific performance (factors like family close by)

Question 15

Highest and best use

Answer 15

Property or land being used to its highest potential of improvements and gain

Question 16

Land use controls

Answer 16

Governmental regulation on certain properties due to surrounding population(ie. city planning and zoning)

Question 17

Protective and restrictive covenants

Answer 17

Sub category of land use controls but under the private sector.

Question 18

IRMA

Answer 18

Used for determining if fixtures are excluded or not
Intent
Relationship
Method
Adaptation 

Uses “total circumstances test”

Question 19

Eminent domain

Answer 19

Government takes property for the public good

Question 20

Lis pendens

Answer 20

A pending legal action effecting the title or deed of a property

Question 21

Encroachments

Answer 21

(Ie. When a neighbor builds onto your property)

Question 22

Ingress and egress

Answer 22

Getting in and out of something

Question 23

Dominant and servient easments

Answer 23

Dominate has the benefit of the deal.