real estate 1 Flashcards
What is the definition of Real Estate?
Real Estate is property made up of land and the buildings on it, as well as the natural resources of the land including uncultivated flora and fauna, water, and mineral deposits.
What is land tenure in the context of Real Estate?
Land tenure is the legal set of rules in which land is owned by an individual, who is said to ‘hold’ the land.
What are the three primary categories of Real Estate?
- Residential
- Commercial
- Industrial
Also includes Rural and Institutional categories depending on the land’s intended use.
What is the difference between Real Property and Personal Property?
Real Property includes land and improvements attached to it, while Personal Property is movable property, also called chattels.
What are Estates in Real Property?
Estates are different types of ‘Interests’ in Real Property that have different rights associated with the use of the land.
What is a Fee Simple estate?
The most common form of ownership in Real Property.
What is a Life Estate?
An estate where someone holds the rights to the land for the duration of their life, after which it reverts to the owner in fee simple or their heirs.
What rights are included in the ‘Bundle of Rights’ associated with Real Property?
- The Right to sell an interest
- The Right to lease an interest
- The Right to occupy the property
- The Right to mortgage an investment
- The Right to give an interest away
Who are the key parties involved in the purchase and sale of property?
- Seller
- Buyer
- Listing Realtor
- Selling Realtor
- Mortgage Brokers or Lenders
- Appraisers
- Home Inspectors
- Insurance Agents
- Property Managers
- Seller’s and Buyer’s Lawyers
What role do lenders play in Real Estate transactions?
Lenders supply the bulk of the purchase price and charge interest on the amount loaned.
What is required from buyers when purchasing property?
Buyers are usually required to provide a down payment, which is a percentage of the total purchase price.
What is the purpose of a title search in Real Estate?
To confirm the legal right to sell the property and check for any encumbrances such as mortgages, liens, or property line issues.
What is Title Insurance?
A protection for buyers and lenders when a seller doesn’t have free and clear ownership of the property, covering losses and legal fees from title problems.
Can you perform a Title Search?
Yes, title searches are public information and typically cost around $35.
What is the OREA Contract?
An Agreement of Purchase and Sale that includes various specific items such as schedules, chattels, fixtures, and conditions of the sale.
Fill in the blank: Real Estate is primarily broken into three categories: Residential, Commercial, and _______.
Industrial
True or False: Personal Property is immovable.
False
