Chapter 1 - Intro Flashcards
What does avulsion refer to?
The sudden removal of land by act of nature.
What is the term for gradual and imperceptible wearing away of land?
Erosion
Name the five types of real property.
Residential, Commercial, Industrial, Agricultural, and special purpose.
What can ‘special purpose’ real estate be used for?
Churches, schools, cemeteries, and government-held lands.
Labor force and construction costs, governement controls, and governmental financial policies can effect?
Supply in the real estate market.
What are three factors that can effect demand?
Population, Demographics, and employment + wage levels.
Land at, above, and below the earth’s surface, plus all things attached to it is defined as what?
Real Estate
What does the term ‘Real Property’ refer to?
Bundle of legal rights. The interests, benefits, and rights included in the ownership of land and real estate.
Which two characteristics govern how the market reacts to the pressures of supply and demand?
Uniqueness and Immobility
How do local goverments influence supply?
Land-use controls, building codes, and zoning ordinances.
What is the definition of “land”?
The earth’s surface extending downward to the center of the earth and upward to infinity.
How do the definitions of land and real estate differ?
In addition to the natural land, real estate also includes all human made improvements.
What is included in the ‘bundle of legal rights’? (DEEPC)
Disposition Enjoyment Exclusion (keep people off your property) Posession Control
What do the terms chattel, emblements, and personalty all refer to?
Personal Property
Severance
Changing Real Property into Personal Property
Annexation
Changing Personal Property into Real Property
Fixtures
Personal Property that has been affixed to land or a building.
Trade fixture
Personal Property of a business owner
When must trade fixtures be removed?
On or before the last day the property is rented.
Scarcity, Improvements, Permanence of Investment, and Location are ______ characterstics of real esate.
Economic characteristics
Immobility (location never changes), Indestructibility, and Uniqueness are ______ characteristics of real estate.
Physical characteristics
As a mortgage is paid off, what happens to equity?
Increases
What percentage of the replacement cost does home insurance cover?
80%
How much capital gains exemption is a single person entitled to?
$250k
What type of property are plants considered to be?
Personal Property.
Situs (re: economic characteristics)
Area of preference (latin for site)
What is a homeowner entitled to write off on their taxes?
Real estate taxes, interest, and capital gains
How much capital gains exemption is a married person entitled to?
$500k
How many years must you live on a property in order to file a capital gains exception?
2 years
How many days do you have to identify a property in order to deter capital gains?
40 days
How many days do you have to close on a property in order to avoid capital gains? (deferment)
120 days
