Chapter 1 & 2 Flashcards
a person who has satisfied the requirements set forth by a licensing agency or state legislation.
licensee
a person or company licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services.
What is a broker?
person who performs real estate activities while employed by or associated with a licensed real estate broker.
salesperson
the amount of goods people are willing and able to buy at a given price; often coupled with supply. 7-8
demand
the business of bringing people together in a real estate transaction. 4
brokerage
the process of estimating a property’s market value, based on established methods. 4
appraisal
where goods can be bought and sold and a price established.
marketplace
a person or company hired to maintain and manage property on behalf of its owner.
property manager
the appraisal principle that follows the interrelationship of the supply of and demand for real estate. Because appraising is based on economic concepts, this principle recognizes that real property is subject to the influences of the marketplace as with any other commodity. 7-8
supply and demand
the amount of goods available in the market to be sold at a given price. The term is often coupled with demand. 7-8
supply
the business of providing the funds that make real estate transactions possible. 5
financing
the dividing of a single property into smaller parcels.
subdivision
acts as a point of contact between two or more people in negotiating the sale purchase, or rental of property.
what is a broker
Residential, commercial, mixed use, industrial, agricultural, and special purpose are all categories of:
what a six categories of Real Property.
when supply increases and demand remains stable,
prices go down.
when demand increases and supply remains stable
prices go up.
Realtors
members of the National Association of Realtors. N.A.R.
what characteristics of land have the most impact on market value?
uniqueness and immobility
labor force availability
construction and material costs
government controls
financial policies
what are factors affecting real estate supply
population
demographics
employment and wage levels
factors affecting real estate demand are
the business of providing the funds that make real estate transactions possible.
financing
acquiring title to additions or improvements to real property as a result of the annexation of fixtures or the accretion of alluvial deposits along the banks of streams
accession
the right to use the open space above a property, usually allowing the surface to be used for another purpose
air rights
process of converting personal property into real property.
annexation
20
a right, privilege, or improvement belonging to, and passing with, the land; “runs with the land.” 18
appurtenance
people’s desire for one area over another, based on a number of factors such as history, reputation, convenience, scenic beauty, and location. 23
area preference
the concept of land ownership that includes ownership of all legal rights to the land–possession, control within the law, enjoyment, exclusion, and disposition. 17
bundle of legal rights
personal property
chattel
growing crops, such as corn, that are produced annually through labor and industry, also called fructus industriales. 20
emblements
an item of personal property that has been converted to real property that has been converted to real property by being permanently affixed to the realty. 21
fixture
1)any structure, usually privately owned, erected on a site to enhance the value of the property (e.g., building a fence or a driveway.) 2)a publicly owned structure added to or benefiting land (e.g., a curb, sidewalk, street, or sewer. 17
improvement
the earth’s surface, extending downward to the center of the earth and upward infinitely into space, including things permanently attached by nature, such as trees and water. 16-17
land
dwellings that are built off-site and trucked to a building lot where they are installed or assembled. 19-20
manufactured housing
a lack of uniformity, dissimilarity. Because no two parcels of land are exactly alike, real estate is said to be nonhomogeneous. 23
non-homogeneity
items, called chattels, that do not fit into the definition of real property; movable objects, 19
personal property
land; a portion of the earth’s surface extending downward to the center of the earth and upward infinitely into space, including all things permanently attached to it, whether naturally or artificially. 17
real estate
the interests, benefits, and rights inherent in real estate ownership. 25
real property
changing an item of real estate to personal property by detaching it from the land (e.g., cutting down a tree.) 20
severance
the personal preference of people for one area over another, not necessarily based on objective facts and knowledge. 23
situs
ownership rights in a parcel of real estate that are limited to the surface of the property and do not include the air above it (air rights) or the minerals below the surface (subsurface rights).18
surface rights
an article installed by a tenant under the terms of a lease and removable by the tenant before the lease expires. 21-22
trade fixture
ownership rights in a parcel of real estate to the water, minerals, gas oil, and so forth that lie beneath the surface of the property. 18
subsurface rights
Scarcity
Improvements
Permanence of investment
Location or area preference
what are four economic characteristics of Real Estate?
method of annexation: how permanent is the method of attachment?
adaptation to real estate: is the item being used as real property or personal property?
agreement: have the parties agreed on whether the item is real or personal property in an offer to purchase
what are three legal tests of a fixture
Immobility
Indestructibility
Uniqueness
What are three physical characteristics of Real Estate?
common law rights held by owners of land adjacent to rivers, lakes, or oceans; includes restrictions on those rights and land ownership. 19
water rights
1) Contract law, 2) General property law, 3) Agency law, 4) Real estate license law, 5) Federal regulations, 6) Federal, state, and local tax laws, 7) Zoning and land-use laws, 8) Federal, state, and local environmental regulations. 24
What are eight type of laws affecting Real Estate?
right of possession
right to control the property within the framework of the law,
right of enjoyment, to use the property in any legal matter
right of exclusion, to keep others from entering or using the property,
right of disposition, to sell, will, transfer, or otherwise dispose of or encumber the property
What are the five bundle of rights?
