Chapter 1

Question 1

Real Estate

Answer 1

The actual physical land and everything, both natural and man-made, that is
attached (or appurtenant) to it.

Question 2

Real Property

Answer 2

The physical land and everything attached to it, and the rights of ownership
(bundle of rights) in the real estate. Also called Realty.

Question 3

Land

Answer 3

The surface of the earth, everything under the ground to the center of the earth, and
everything over the earth into the air (allowances for air traffic).

Question 4

Used interchangeably to describe the combination of land, improvements, and rights and privileges

Answer 4

Real estate, real property, realty, and land

Question 5

Deed

Answer 5

Used to convey (ownership) of real estate or land

Question 6

Bill of Sale

Answer 6

Used to convey ownership of personal property, personalty, or chattel.

Question 7

Personal property

Answer 7

Tangible items that (usually) are not permanently attached to or part of real
estate; any property that is not real property; movable property not affixed to land. Also called
Chattel or Personalty.

Question 8

Chattel

Answer 8

A piece of personal property

Question 9

What three components make up the concept of real property?

Answer 9

land, improvements, and rights & privileges

Question 10

Property is categorized as either:

Answer 10

Real or personal

Question 11

Land consists of what three components?

Answer 11

surface, subsurface, and airspace

Question 12

Improvements

Answer 12

Anything used to better or “improve” the use of land. Real property, not personal

Question 12

Appurtenance

Answer 12

A right that goes along with ownership of real property; usually transferred with
the property but may be sold separately.

Question 13

Tenements

Answer 13

Ownership interest in anything immobile and is considered part of the real property

Question 13

Hereditaments

Answer 13

Any rights capable of being inherited

Question 14

Immobility

Answer 14

A physical characteristic of real estate referring to the fact that it cannot be moved from one place to another. It is the primary distinction between land and personal property

Question 15

Situs

Answer 15

Location of land, what does the site tell us

Question 16

Scarcity

Answer 16

An economic characteristic of real property that says there is a limited supply of real
estate; the perceived supply of a good or service relative to the demand for the item.

Question 17

Indestructibility

Answer 17

land cannot be destroyed (physical characteristic)

Question 18

Nonhomogeneity

Answer 18

A characteristic of real property; each piece of land, each building, and
each house is a unique piece of real estate. Also called Uniqueness or Heterogeneity.

Question 19

Specific Performance

Answer 19

Legal remedy in which a court orders someone who has breached a
contract to perform as agreed, rather than paying monetary damages.

Question 20

Present Value

Answer 20

The value at the time of appraisal

Question 21

Highest and Best Use

Answer 21

Use that will provide the property owner the best possible return on investment over a specified time period, resulting in the highest possible present value of land.

Question 22

Land use controls

Answer 22

Rules and regulations that govern how land can be used and developed. These controls ensure that land is used in a way that benefits the community, protects the environment, and promotes orderly growth.

Question 23

Appreciation

Answer 23

The increase in value of an asset over time.

Question 24

Positive Cash Flow

Question 25

Brokerage specializations of real estate include

Answer 25

Farm and land, residential property, and commerical/investment property

Question 26

Non-brokerage specializations in real estate include

Answer 26

Property management, appraising, financing, construction, property development, real estate education, and government service

Question 27

REALTOR

Answer 27

A registered trademark of NAR and it identifies licensees who are members of the local, sate, and national associaton.

Question 28

NAR

Answer 28

National Association of REALTORS

Question 29

Free Market

Answer 29

one in which the buyer and seller negotiate a purchase and sale without undue pressure, urgency, or outside influence other than the principle of supply and demand,

Question 30

Improvements

Answer 30

Structures, walls, roads, and so on