General - Chapter 1 Lesson 1 Flashcards
Real Estate
Physical land and everything that is permanently attached to it, whether natural or manufactured
Real Property
Land, its attachments, and anything incidental to the land and attachments (rights associated with/ ownership)
Personal Property
Any property that is not real property, not fixed to the land and is moveable
How is real property usually transferred or sold
deed
Real Property is…
immovable
What document is used when transferring ownership of personal property
Bill of Sale
Attachments
natural or manufactured things attached to the land
Improvment
manufactured improvement that significantly increases the value of real property (house, barn, fence, swimming pool)
Fixture
item of personal property that has been attached to real property (sink or chandelier)
What’s another form of an attachment
item necessary to access a portion of the property (key or garage door opener)
Trade Fixtures
installed by tenant in leased space for business purposes
Fructus naturales
things attached to the earth by roots
Fructus industriales
crops produced by human labor - personal property
Emblements
Annual crops cultivated by tenant farmers (personal property of the farmer)
Tenant Farmer
had irrevocable right to enter the land to care for and harvest the crop
Chris owns 100 acres of land covered by a pine forest. The timber that he harvests when he cuts down the trees is considered…
Personal Property
What’s included in the “bundle of rights”
possession, quiet enjoyment, disposition, exclusion, and control
Possession
allows owner to physically occupy the land and put to productive use
Quiet Enjoyment
freely possess the land w/o interference form others, also includes responsibility to not hinder neighbors enjoyment
Disposition
transfer rights to people
Exclusion
stop others from using or entering property
Control
alter or change the property
What’s not included in the bundle of rights
Severence - detaching fixtures from land and reverting to personal property (allowed through control)
What comes into play with economic value
DUST (Demand, Utility, Scarcity, and Transferability)
Demand
need or desire for a specific type of property
Situs
Location - property value most dependent on
Utility
ability of a good or service to satisfy human wants, needs, or desires
Scarcity
perceived supply of a good or service relative to the demand
Uniqueness
Scarcity makes land more valuable
Transferability
ability to freely buy, sell, encumber, or dispose of property in any way that the owner sees fit
Purchase Ability
prospective buyer has enough funds available to satisfy their needs or desires
What are the physical characteristics of land
Immobility, indestructibility, and uniqueness Invest In Us (IIU)
Immobility
can’t be moved form one place to another
Indestructibility
land can’t be destroyed, always has some value
Uniqueness
each parcel of land and each structure is a different piece of real estate
Forces of Nature
can cause land to move or change shape even though indestructible (changes value and maybe even title of property)
Erosion
gradual wearing away of land (wind, rain, other)
Eroded land and title
The eroded land switches owners as it moves
Accretion
gradual process of waterborne silt being deposited in a river, lakebed, or on the shore (deposits called alluvion or alluvium)
Accretion Title
landowner acquires title to the silt that has accrued
Riparian Rights
Water rights of landowners whose land touches a natural body of flowing water, such as a stream, a creek, or a river
Littoral Rights
Water rights of landowners whose land touches a commercial lake, sea, or ocean
Avulsion
occurs when land is torn away by flowing water (mudslide, earthquake)
Avulsion and Title
Does not transfer title if land is identified and reclaimed
Reliction
water recedes exposing more of the soil bed
Reelection and title
doesn’t add to land since owners already have title to the land out to the water’s midpoint
What are the characteristics that properties must have in harmony to maximize value?
Demand, utility, scarcity, and transferability
John lives next to a bend in a river. Over the past several years, the river has been depositing silt at the bend, making the river channel straighter and adding land to John’s property. This is an example of…
Accretion
Emblements are…
fructus industiales
Terrance decides to lease his property to someone else. Which of the bundle of rights is he exercising as the owner of the property?
Disposition
“Situs” refers to a property’s…
location
IIU?
Immobility, indestrucibility, uniquness
DUST
Demand, utility, scarcity, transferability
The most typical land sales transaction involves the conveyance of…
real property
Physical land and all improvements that are permanently attached to it is known as…
real estate
Physical land, its attachments, and its bundle of rights is known as…
real property
The physical characteristic of real estate referring to its uniqueness is also known as…
heterogeneity
