Chapter 1 : Basic Concepts Flashcards
CHATTEL
Item of moveable personal property such as furniture, clothing, money, bonds, & bank accounts
LAND
Earth’s surface extending downward to the center of the earth and upward to infinity, including trees, and water.
REAL PROPERTY
land itself, improvements, interests, benefits, and rights inherent in ownership.
REAL PROPERTY Characteristics
7 that are Physical & Economical
3 Physical Characteristics of Real Property
Immobility, Indestructibility, Uniqueness
Uniqueness of Land =
Nonhomogeneity or heterogeneity
4 Economic Characteristics of Real Property
Scarcity, Location, Improvements, Permanence of Investment (SLIP); influence its value as an investment
Scarcity : Economic Charactertistic
the increasing use of land has a positive impact on value
Location :Economic Characteristic
One of the most important economic characteristics of land.
SITUS
Location that takes into consideration of social factors in addition to economic factors.
Improvements: Economic Characteristic
Any addition or change to land or a building that affects the property’s value.
Improvements of house, fencing
ON the land
Improvements of public nature, sidewalks, sewer systems, curbing etc.
TO the land
Permanence of Investment: Economic Characteristic
Improvements such as drainage, sewer & water, electricity. ROI long term
HIGHEST & BEST USE
use that will give the owners the greatest actual return on their investment
Appraisal: Specialization
process of estimating the value of a parcel of real estate
Property Management: Specialization
solicit tenants, collect rent, altering or construction of new space, order repairs, and general maintenance of property.
Financing: Specialization
business of providing the funds necessary to complete real estate transactions.
Property Development :Specialization
architects, developers, dividing raw land into lots, build roads, install sewer systems.
Counseling: Specialization
Providing competent independent advice and guidance on a variety of real estate problems.
Education: Specialization
Provision of information to both the real estate practitioner and the consumer.
NCREC
regulatory licensing agency of the state of NC
National Association of Realtors (NAR) designates:
Graduate Realtors Institute ( GRI)
Certified Int Property Specialist (CIPS)
Certified Property Manager (CPM)
Accredited Buyer Representative (ABR)
American Society of Real Estate Counselors (ASREC) designates:
Counselors of Real Estate ( CRE)
