Chapter 1 : Intro to Real Estate and Real Property Flashcards
Land
is defined as the earth surface extending downward to the center of the earth and upward to infinity 
what does land include?
includes not only the surface of the earth, but also the underlying soil refers to the objects that are naturally attached to the earths surface. It even includes the air above the earth, all the way up into space. 
Real Estate
is defined as land at above and below the earth surface plus all things permanently attached to it 
Real Estate includes..?
Real estate includes natural land, along with all human made improvements. An example is a building or a fence. 
Real Property
Real property is defined as the interest, benefits, and rights that are included in the ownership of land and real estate 
Real Property includes?
The surface subsurface airspace any improvements in the bundle of legal rights 
The Bundle of Legal Rights
The legal rights of ownership that attach to the ownership of a parcel of real estate 
another name for Bundle of Legal Rights
legal rights of ownership
the concept of real property
The ability of an owner to transfer some or all of these rights on a permanent basis, provides the legal basis for the ability of a landlord to lease or rent a property to a tenant for a period of time without losing those rights 
personal property is…
movable
personal property refers to as
Chattles include such as chairs tables, closing, money, bonds, and bacon counts. Trade fixtures are included in this category. 
personal property is conveyed as…
a bill of sale
Real property can become personal by …
severance
what is severance ?
taking an item that is attached to the land and removing it as personal property 
You can change personal property into real property through…..
annexation 
what is annexation? 
trade fixtures 
includes personal property used in the course of business, its personal property when attached to the rented space or building or use in conducting a business is personal property that remains the personal property of the renter 
different types of property in which real estate can be classified as 
residential, commercial, industrial agricultural, and special purpose 
 residential
Property used for single or multi family housing one to four units. Owner occupied.
commercial 
any multi family building over four units as well as business property including office, space shopping center stores, hotels and theaters 
industrial 
warehouses factories, land in industrial districts 
agricultural 
farms, Timberland ranches and orchards 
special purpose 
churches, school cemeteries, and government held lands 
what two characteristics of real estate govern the way the market reacts to the pressures of supply and demand
uniqueness and immobility 
uniqueness 
means that no matter how similar to Parcells of real estate may appear They are never exactly alike each occupies. It’s on you need geographic location and two properties are never exactly the same inside

 immobility
refers to the fact that property cannot be relocated to satisfy them and we’re supply is low Nordo buyers necessarily make relocation decisions based on grader housing supply in the certain locale for these reasons real estate markets are local markets 
fixtures
any item that has been added as a permanent part of a building is considered a fixture 
legal tests of a fixture
method of attachment, adoption to real estate agreement between the parties 
trade fixtures
personal property used in the course of business, when attached to rent a space or building
How trade fixtures work
trade fixtures must be removed on or before the last day the property is rented, if not removed, it will become the real property of the landlord 
labor force and construction costs
high supply = low demand and low prices
low supply = high demand and high prices
government controls
idk yet
FHA
Federal Housing Administration
VA
Department of Veterans Affairs
Taxation
• high taxes are necessary to continue economic growth within the community
high taxes are necessary source of revenue for local governments
demographics
is the study and description of the population the population of a community is a major factor in determining the quantity and type of housing in that community
demographic factors
BASED ON FAMILY COMPOSITION
Family size
the ratio of adults to children
the ages of children,
the number of retirees,
family,
income lifestyle, the growing number of a single parent
and empty nester house

