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Real estate > Chapter 1-3 > Flashcards

Chapter 1-3 Flashcards

1
Q

what is brokerage?

A

bringing parties together in a real estate transaction

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2
Q

what is appraisal?

A

it is the process of estimating a property’t market value based on establishing methods and professional judgment

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3
Q

what is property manager?

A

a person or company hired to maintain and mange property on behalf of it’s owner

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4
Q

what is subdivision?

A

it is the splitting of a single property into smaller parcels

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5
Q

what is development?

A

involves the contraction of the improvements on the land

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6
Q

what is home inspections?

A

it is profession that allows practitioners to combine their interest in real estate with their professional skills and training in the construction trades

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7
Q

what is counseling?

A

this involves providing clients with come tent independent advice base on the sound profession judgment

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8
Q

what is auctioning buying or selling?

A

this uses an open and competitive bidding to transfer property.

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9
Q

what is are requirements auctioneers in IL?

A

they must be licensed in IL.

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10
Q

what is the largest organization?

A

National association of realtors (NAR)

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11
Q

what is a member of NAR called?

A

realtor

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12
Q

what does NAR prides themselves over?

A

member adheres to a code of ethics and dedicated to equal housing opportunity

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13
Q

what are the five categories of real property?

A

residential, commercial, industrial, agricultural and special purpose

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14
Q

what are the factors that affect supply of real estate?

A

labor force, construction cost, government controls and government financial polices

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15
Q

what is labor force and construction costs?

A
  1. a storage of skilled labor or building materials or an increase in the cost decrease the amount of new homes
  2. construction permit fees and high property transfer cost
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16
Q

what are the government controls and financial policies?

A

the federal reserve board establishes a discount rate of interest for the money it lens to its member banks. that rate has direct impact on the interest rates that banks charge to borrowers

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17
Q

what are government agencies?

A

the federal housing administration (FHA), and the department of veteran affairs (VA), also have impact by insuring or guaranteeing loans

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18
Q

What are factors that affect the demand for real estate?

A

population, demographics, employment and wage levels

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19
Q

what is land?

A

is the earth’s surface extending downward to the center of the earth and upward

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20
Q

what is real estate?

A

is defined as land at, above and below the earth’s surface, plus all things permanently attach to it

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21
Q

what are the bundle of rights?

A

possession, control, enjoyment, exclusion, disposition

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22
Q

what is personal property?

A

is all property that can be owned and that does not fit the description of real property

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23
Q

what are the two classes of plants?

A
  1. trees, perennial, shrubbery and grasses that do require annual cultivation are considered real property
  2. annually cultivation crops such as wheat, corn, vegetables and fruit
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24
Q

what are emblements?

A

are generally considered personal property. As long as annual crop is growing, it will stay with real property unless other provisions are made

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25
Q

what is custom in IL for farmland?

A

when farmland is sold, it customary for it to be transferred on march 1.

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26
Q

what is severance?

A

an item of real property can become personal property

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27
Q

what is annexation?

A

when personal property becomes real real property

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28
Q

what is fixture?

A

is person property that has been so affixed to land or building that by time it becomes real property

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29
Q

what is legal test of fixture?

A

did person who installed the item for it to remain permeant on the property or for it to be movable in the future?

30
Q

What is method of attachment?

A

how permanent is the of method attachment? can the item be removed without causing damage to the surrounding property? is the item used as real property or personal property?

31
Q

what is adaptation to real estate?

A

Is the being used a real property or personal property?

32
Q

what is agreement to real estate?

A

have the parities agree in writing on whether the item is real or personal property? what does the contract say?

33
Q

What is trade fixtures?

A

a special category of fixture includes property used in the course of business.

34
Q

what is Cattle fixture?

A

an article owned by a tenant and attached to rented space or building or conducting business is trade fixture (chattel fixture)

35
Q

what must happen with trade fixture?

A

it must be removed on before the last day the property is rented. the tenant is responsible for any damage caused by the removal of the trade fixture.

36
Q

what is accession?

A

trade fixture that are not removed becomes the real property on the landlord. Acquiring the property in this way.

37
Q

how do trade fixture differ from the other fixture?

A

fixture belong to the owner of real estate, but trade fixtures are usually owned and installed by a tenant for the tenant’s use.
fixture are considered a permanent part of the building, but trade fixture are removable. trade fixture may be attached to a building so they appear to fixtures but can be carefully removed.

38
Q

What are the five economic characteristics of real estate?

A
  1. Scarcity 2. improvements 3. permanence of investment 4. location (situs)
39
Q

what are the three physical characteristics of real property?

A
  1. immobility 2. indestructibility 3. uniqueness
40
Q

what are seven sources of law?

A
  1. U.S constitution 2. laws passed by congress 3. rules of regulatory 4. state constitution 5 state statutes 6. local ordinance 7. common law
41
Q

what practice real estate in IL is governed by?

A

Real estate license act of 2000 (the act)

42
Q

What is apartment complexes?

A

are groups of portent building with any number of unit in each building

43
Q

what are condo’s?

A

for people who security of owning property with the care maintenance a house demands

44
Q

What a cooperative?

A

is similar to condo in that it also offer units with share common facilities
these owner don not won the unit, instead they buy shares of stock in corporation that holds the title to the building

45
Q

what is PUD stands for?

A

Planned unit development

46
Q

what is PUD?

A

sometimes called master-planned communities, merge such diverse land uses as housing
it is planned under special zoning ordinances. these ordinances permit maximum use of open space by reducing lot size and street areas.

47
Q

what is retirement communities or active communities?

A

may provide shopping recreational opportunities, and health care facilities in additional to residential units.

48
Q

What does MUDs stand for?

A

high rise development

49
Q

what is high rise development?

A

combine such element as office space, stores, theaters and apartment units into single vertical community

50
Q

what is converted use property?

A

are factories, warehouses, office buildings, hotels and ect

51
Q

what are manufacture housing?

A

including mobile homes was considered temporary home, now with house parks making residential for low income houses.

52
Q

What is modular housing?

A

as referred as prefabricated homes,

each room is pre assembled at a factory, driven to building site

53
Q

what is time share?

A

allow many to sure ownership of a single property and each owner is able to the pretty for a period of time

54
Q

what is PITI?

A

what you must pay when you own a home, PITE stands for Principal, Interest, taxes and insurance

55
Q

what are tax benefits?

A

the homer may be able to deduct mortgage interest paid as well real estate taxes

56
Q

what is tax benefit for married when selling a house?

A

500,000 is now excluded from capital gain tax for profit on the sale of principal residence

57
Q

what is tax benefit for single person when sell a house?

A

250,000

58
Q

how long are these tax benefits good for?

A

a lifetime

59
Q

what is tax reconciliation act of 2006?

A

provides capital gain breaks. as it relate to homeownership, the tax rate for long term capital gain was reduced to 15 percent in 2003 through 2008

60
Q

what is exchanges?

A

investor can defer taxes of capital gain by making exchange the owes will incur tax liability on sale only if additional capital or property is also received the is deferred. the owner will tax when the sale occurs

61
Q

what is a boot?

A

any capital or personal property included in the transaction to even out the value of the exchange

62
Q

what is tax deductions?

A
  1. real estate taxes (but not interest paid on overdue taxes
  2. mortgage interest payment on the first and second homes
  3. certain loan origination fees in the years of purchase
  4. loan discount points in the year of purchase
  5. loan prepayment penalties
63
Q

what is homeowner insurance for?

A

lender usually require that homeowner obtain insurance when a dept is secured by the property

64
Q

what is CLUE stand for?

A

comprehensive loss underwriting exchange

65
Q

What is CLUE?

A

is database of consumer claim history that enable insurance companies to access prior claim information in the underwriting and rating process. the database contains up to five years of personal property claim history.

66
Q

what is national flood insurance act of 1968?

A

it was to help owner of property in flood prone areas by subsidizing flood insurance

67
Q

What is FEMA stand for?

A

federal emergency management agency

68
Q

what is FEMA?

A

administers the flood insurance program

69
Q

Who prepared flood maps?

A

Army Corps of Engineers

70
Q

What must you do if your house in a flood plain?

A

you must flood insurance

Real estate (19 decks)

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