Chapter 1 - Basic Real Estate Concepts Flashcards
Appurtenance
Runs with the Land
Bill of Sale
How title is conveyed for personal property (Chattel)
Chattel
Personal Property
Deed
How title or ownership is transferred for real property
Hereditaments
Anything capable of being inherited. Includes everything that defines Land, and everything in the term tenements that is capable of being inherited.
Highest and Best Use
The highest possible ‘present value’ of land resulting from the intelligent use of capital, labor, and other resources to improve the land and it’s productivity.
Immobility
A physical characteristic of land, it cannot be relocated. The primary distinguishing feature between land and personal property. Reason why real estate market is a local market.
Indestructibility
A physical characteristic of land. It is a pemement commodity and cannot be destroyed. It can be altered.
Land Use Controls
Public (city planning and zoning, state and regional planning, building codes, suitability for occupancy requirements and environmental control laws.
Private (Protective or restrictive covenants, restrictions in deeds)
Land
Three components:
- Surface
- Subsurface
- Air space
Nonhomogeneity
Uniqueness (No two parcels are identical)
Specific Performance
Arises from nonhomogeneity, if a seller contracts to sell real property, they cannot offer money as a substitute for this duty to sell.
Personal Property (Chattel)
Anything that is not Real Property
Real Estate
The combination of land, improvements and right and privileges, ownership conveyed by deed.
Scarcity
An economic characteristic of land. Availability, fixed supply base, no additional supply being created.
Situs
Location, Location, Location
Tenements
Ownership interest in anything immobile and considered part of real property. “Structures attached to the land”
Physical Characteristics of Real Estate
Immobility
Indestructibility
Nonhomogenity
Economic Characteristics of Real Estate
Scarcity
Permanence of investment
Situs (location, socio-economic)
Real Estate Investment Objectives
Make a profit using the following three things:
- appreciation
- positive cash flow
- tax advantages
Realtor
Registered trademark of the National Association of Realtors. a Licensee who is also a member fo the national, state and local associations.
Code of Ethics
NAR created this is 1913 before there was licensing law. Parallels exist between the two.
Brokerage
Bringing together buyers and sellers/landlords and tenants for the temporary or permanent transfer of an interest in real property
Free Market
Governed by the law of supply and demand.