Chapter 1 : Intro to Real Estate and Real Property

Question 1

Land

Answer 1

is defined as the earth surface extending downward to the center of the earth and upward to infinity 

Question 2

what does land include?

Answer 2

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. 

Question 3

Real Estate

Answer 3

is defined as land at above and below the earth surface plus all things permanently attached to it 

Question 4

Real Estate includes..?

Answer 4

Real estate includes natural land, along with all human made improvements. An example is a building or a fence. 

Question 5

Real Property

Answer 5

Real property is defined as the interest, benefits, and rights that are included in the ownership of land and real estate 

Question 6

Real Property includes?

Answer 6

The surface subsurface airspace any improvements in the bundle of legal rights 

Question 7

The Bundle of Legal Rights

Answer 7

The legal rights of ownership that attach to the ownership of a parcel of real estate 

Question 8

another name for Bundle of Legal Rights

Answer 8

legal rights of ownership

Question 9

the concept of real property

Answer 9

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 

Question 10

personal property is…

Answer 10

movable

Question 11

personal property refers to as

Answer 11

Chattles include such as chairs tables, closing, money, bonds, and bacon counts. Trade fixtures are included in this category. 

Question 12

personal property is conveyed as…

Answer 12

a bill of sale

Question 13

Real property can become personal by …

Answer 13

severance

Question 14

what is severance ?

Answer 14

taking an item that is attached to the land and removing it as personal property 

Question 15

You can change personal property into real property through…..

Answer 15

annexation 

Question 16

what is annexation? 

Question 17

trade fixtures 

Answer 17

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 

Question 18

different types of property in which real estate can be classified as 

Answer 18

residential, commercial, industrial agricultural, and special purpose 

Question 19

 residential

Answer 19

Property used for single or multi family housing one to four units. Owner occupied.

Question 20

commercial 

Answer 20

any multi family building over four units as well as business property including office, space shopping center stores, hotels and theaters 

Question 21

industrial 

Answer 21

warehouses factories, land in industrial districts 

Question 22

agricultural 

Answer 22

farms, Timberland ranches and orchards 

Question 23

special purpose 

Answer 23

churches, school cemeteries, and government held lands 

Question 24

what two characteristics of real estate govern the way the market reacts to the pressures of supply and demand

Answer 24

uniqueness and immobility 

Question 25

uniqueness 

Answer 25

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 

Question 26

 immobility

Answer 26

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 

Question 27

fixtures

Answer 27

any item that has been added as a permanent part of a building is considered a fixture 

Question 28

legal tests of a fixture

Answer 28

method of attachment, adoption to real estate agreement between the parties 

Question 29

trade fixtures

Answer 29

personal property used in the course of business, when attached to rent a space or building

Question 30

How trade fixtures work

Answer 30

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 

Question 31

labor force and construction costs

Answer 31

high supply = low demand and low prices low supply = high demand and high prices

Question 32

government controls

Answer 32

idk yet

Question 33

FHA

Answer 33

Federal Housing Administration

Question 34

VA

Answer 34

Department of Veterans Affairs

Question 35

Taxation

Answer 35

• high taxes are necessary to continue economic growth within the community high taxes are necessary source of revenue for local governments

Question 36

demographics

Answer 36

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

Question 37

demographic factors

Answer 37

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