Chapter 1: Basic Real Estate Concepts Flashcards
Real Property/Real Estate/Realty
Land and everything that is attached to it. Immobile, indestructible, unique
What is the document used to transfer real property?
Deed
Deed
A written instrument that transfers an interest in real property when signed by a grantor and delivered to the grantee.
Personal Property/Chattel/Personalty
All property that is not real property or attached to it. Readily movable.
What is the document used to transfer personal property?
Bill of Sale
What are the physical characteristics of real property?
- Immobile
- Indestructible
- Unique/non-homogeneous/heterogeneous
Immobility, indestructibility, and non-homogeneity are __________ of real property.
physical characteristics of real estate
Immobility
Land cannot be moved from one location to another. Physical characteristic of real estate
Indestructibility
Land is a permanent commodity and cannot be destroyed. Physical characteristic of real estate
Non-homogeneity
AKA uniqueness or heterogeneity. No two parcels are the same. Physical characteristic of real estate
What are the economic characteristics of real property?
SLIP
- Scarcity
- Location
- Improvements
- Permanence of investments
Scarcity, location, improvements, and permanence of investment are __________ of real property.
economic characteristics of real estate
Scarcity
The physical supply of land does not change and cannot be adjusted to meet demand. Economic characteristic of real estate
Location
Most important economic characteristic of real estate
Improvements
Any permanent fixtures to or on the land such as roads, fences, or naturally growing things. Economic characteristic of real property
Situs
Societal and economic factors tied to the location of the land
How is real estate always regulated?
Based on the state laws where the land is located
Highest and Best Use
The use that provides the best ROI to the owner and the highest possible present value of land.
What form of land use controls exist?
1) Public
2) Private
3) Governmental
Public land use controls
Zoning laws, building codes, environmental control laws
Private land use controls
Conditions, covenants, and restrictions (CCR’s)
Governmental land use controls
Public buildings and parks, watersheds, roads, military installations
Zoning laws, building codes, and environmental restrictions are forms of local land use control known as
Public land use controls
Conditions, covenants, and restrictions (CCR’s) are examples of which land use control?
Private land use controls
Military bases and schools are examples of which land use control?
Governmental land use controls
REALTOR®
A LICENSEE who is a member of the National Association of Realtors
What are the categories of real estate?
1) Residential (1-4 units)
2) Commercial
3) Industrial
4) Agricultural
5) Special Purpose (churches, schools, airports etc)
Free market
A market in which the buyer and seller negotiate a purchase and sale without undue pressure, urgency, or outside influence other than the law of supply and demand
Factors affecting supply
- Labor
- Government controls
- Costs
Labor, govt controls, and costs are factors that are affecting __________.
Supply
Factors affecting demand
- Population
- Employment
- Wages
- Economy
Population, employment, wages, and economy are factors that are affecting __________.
Demand
