RE Exam Flashcards
terms
Appurtenance
A right that goes along with ownership of real property; usually transferred with the property but may be sold separately.
Bundle of Rights
All real property rights that are conferred with ownership, including right of possession, right of quiet enjoyment, right of disposition, right of exclusion, and right of control.
Heterogeneity
A characteristic of real property indicating its diversity or uniqueness.
Highest and Best Use
The most profitable, legally permitted, financially feasible, and physically possible use of a piece of property.
Immobility
A physical characteristic of real estate referring to the fact that the real estate itself cannot move from one place to another.
Improvements
Additions to real property that are man-made, substantial fixtures, such as buildings.
Independent Contractor
Under common law, a person who contracts to do a job for another but maintains control over how the task will be carried out, rather than following detailed instructions.
Indestructibility
Refers to the fact that real estate cannot be destroyed.
Land
The surface of the earth, and everything under the ground to the center of the earth, and the airspace above as far as can reasonably be used.
Land Use Controls
Public or private restrictions on how land may be used (e.g., zoning).
Personal Property
Any property that is not real property. It is moveable, thus not fixed to the land. Includes tangible items that are not permanently attached to or part of real estate and any property that is not real property. Also called Chattel or Personalty.
Public Restriction
A law or regulation limiting or regulating the use of real property.
Real Estate
The actual physical land and everything, both natural and man-made, which is attached (or appurtenant) to it.
Real Property
Land, its attachments, and the rights associated with the property. Real property includes real estate plus interests, rights, and benefits of ownership. It may be legally referenced as land, tenements, and hereditaments. Also called Realty.
Scarcity
A physical characteristic of real property that says there is a limited supply of real estate; the perceived supply of a good or service relative to the demand for the item.
Situs
A place where something exists; an area with preferred features, giving it value to the property; the exact location or position of a piece of real estate. Also called Location or Area Preference.
Supply and Demand
An economic principle that says that for all products, goods, and services when supply exceeds demand, prices will fall and when demand exceeds supply, prices will rise.
Tax Shelter
- Any method used to reduce taxable income, thereby reducing the amount of tax paid to a government. 2. Property or other investments that give owners certain income tax advantages, such as deductions for property taxes, mortgage interest, and depreciation.
Tenements
Everything of a permanent nature associated with land and ordinarily transferred with the land. Tenements are both tangible (e.g., buildings) and intangible (e.g., air rights).
Uniqueness
A characteristic of real property: each piece of land, each building, and each house is a different piece of real estate. Also called Non-Homogeneity or Heterogeneity.