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NC Real Estate Exam > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

Situs

A

Takes into account Societal & Economic factors of where the land is located.
Most important economic factor in real estate
Society & Economics

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2
Q

Permanence of Investment

A 
Court Order
Party harmed by breach of RE Contract
Judge forces breaching party to pay monetary damages
Physical Characteristic of land
Doctrine of Specific Performance
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3
Q

Heterogenity & Non Homogeneity

A

No 2 parcels are alike
Both words mean the same thing
Unique

Ex: House/lot differences

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4
Q

Bill of Sale

A

Document used to transfer personal property

ex: Receipt

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5
Q

Title

A

Title = Ownership

Receipt of a Title = Deed

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6
Q

Supply & Demand

A

Supply increases = Price decreases

Demand increases = Price increases

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7
Q

Scarcity

A

Short Supply in comparison with demand

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8
Q

Real Estate Cycles

A 
The cycle of Real Estate: E R D R
E - Expansion
R - Recession
D - Depression
R-  Revival
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9
Q

Personal Property

A

aka - Chattel or Personalty
Readily Moveable or things you can take when you move

-Shake the house upside down, whatever comes out you can take
Ex: Couch, lamp, washer/dryer

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10
Q

NCREC Disciplinary Actions

A
  1. Reprimand
  2. Revoke
  3. Suspend
  4. Censure
    * CANNOT GIVE FINES*
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11
Q

Who is eligible to take the course and get licensed?

A
  1. 18 years or older
  2. US Citizen
  3. SSN
  4. No formal education needed (not even HS)
  5. Pass a background check
  6. Committed to challenging course
  7. NCREC requires contract (our registration for this course)
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12
Q

Fructus Industriales

A

Personal Property
Fruits of the the tree, but not the actual tree
Annual Crops

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13
Q

5 Categories of Real Estate

A
  1. Residential (1-4 units)
  2. Commercial
  3. Industrial
  4. Agricultural
  5. Special Purpose (Funeral Home)
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14
Q

Real Estate

A

Artificially Attached

Land, buildings, sheds, Fences

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15
Q

Land

A

Immobile & Indestructible

Earth’s Surface
Downward to the center of the earth upward to heaven

FFA has access through for air space

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16
Q

North Carolina Real Estate Commission

A

NCREC: 9 members duty is to protect & promote interest of the Public, they create rules & regs

7 appointed by the Government
2 appointed by Legislative

3 must hold RE licenses
2 must be lay people

Chair selected by the Commission

17
Q

Realtor vs. Broker

A

Realtor: Trade organization member (you do not have to join)

Broker: Real Estate Brokers License holder

Must be a Broker to become a Realtor

18
Q

Provision Broker

A
  1. Supervised by BIC
  2. Needs to complete post licensing education

complete courses 301, 302 & 303 within 18 months of passing exam
You are considered Active if:

  1. Completed all Continuing Education (CE)
  2. Renewed your license annual $45
  3. Affiliated with a BIC

If not all of those 3 things are a yes, you are inactive

19
Q

Full Broker

A
  1. Complete all of your CE (301,302 & 303)
  2. Renewed your license annual $45

You no longer need BIC Supervision

If not all of those things are a yes, you are inactive

20
Q

BIC Eligible

A

Has met the requirements to become a BIC but is not actively serving as a BIC

aka Vice President

21
Q

BIC

A

Broker in Charge (pronounced like Bic pen)

Supervises the entire office

aka Head honcho, President

22
Q

4 North Carolina License Status’

A
  1. Provisional Broker
  2. Full Broker
  3. BIC Eligible
  4. BIC
23
Q

When is a Real Estate License required?

A

MUST BE ALL 3:

  1. It is a Real Estate activity: LL BEANS
    List, Lease, Buy, Exchange, Auction, Negotiate & Sell
  2. For someone else other than yourself
  3. Getting Paid

Exceptions:

  1. Salaried employees of a broker/developer/owner of the property.
    1a. Unlicensed RE assistants CAN NOT show a property for sale, only rentals
  2. An attorney providing a legal service (ex: probate estate)
24
Q

Rate of Return (ROR)

A

The % of the net income produced by a property or another investment

Net = AFTER TAXES

25
Appreciation
An increase in property value
26
Inflation
The Purchase price of goods changes over time & typically grows 1-2% annually. ex: Milk 1920's = $0.20. Milk 2020 = $3.50
27
Appurtenance
Any right or privilege that is considered to run w/ the land. Not all rights and privileges run w/ the land, must be perusal in nature. Ex: Municipal water & sewer lines: it is the right and privilege that the government has to place the pipes to provide utility services.
28
Land Use Controls
1. Public 2. Private 3. Government
29
Highest & Best Use
Physical & Economic factors affecting the land that provide: 1. The GREATEST return 2. Maximizes the value of Real Estate 3. Must be a use feasible future use Ex: Transportation, Resources, Zoning, Elevation & Contour (shape of the land)
30
Protective Covenants
An agreement restricting specified financial transactions. Ex: a loan agreement states that a person may not borrow money from another lender against certain collateralized property.
31
Immobility
Physical Characteristic that is impossible to move or relocate. B/c of the immobility, the value of the piece of RE is directly affected by its surroundings. Ex: Land
32
Indestructible
A Permanence of land
33
What is the single most important economic characteristic of land?
Location
34
What increase in economic supply of land?
1. Increased utilization of the physical supply of land 2. Modification of improvements to the land 3. High density development
35
Restrictive Covenants
1. A clause in a deed or lease to real property that limits what the owner of the land or lease can do w/ the property. 2. It allows surrounding property owners w/ similar covenants in their deeds to enforce the terms of covenants in a court of law.
36
What are physical characteristics of land?
1. NonHomogeneity 2. Permanence 3. Immobility 4. Indestructibility
37
What are public land use restrictions?
1. Building Codes 2. Zoning Laws 3. Regional Planning
38
What is a separable Ownership in land?
The characteristics of land that causes the RE market to be essentially a local market of its physical characteristic of immobility Exceptions: Nonhomogeneity

NC Real Estate Exam (3 decks)

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