Real Estate chapter 2

Question 1

Expansion

Answer 1

During the expansion phase, the market is on the upswing and the demand for housing is high. Lease and rental rates improve. Demands approach levels that can justify new construction.

Question 2

Over Supply

Answer 2

The equilibrium between supply and demand in the expansion phase often tips over to excess. Overbuilding or a shift in the economy can cause an oversupply of homes in the market.

Question 3

Recession

Answer 3

n this phase, supply outweighs demand. Homes sales are flat and those that do sell are listed in the market for longer periods of time. Money is usually tight with high interest rates.

Question 4

Recovery

Answer 4

The recovery phase is the bottom of the cycle. Demand for property is at a low point low point.

Question 5

Allodial title

Answer 5

An allodial title constitutes ownership of real property that is independent to any superior power.

Question 6

The Big Island

Answer 6

Another name for the Island of Hawaii (as opposed to the state of Hawaii), the largest of Hawaii’s main islands.

Question 7

Crown lands

Answer 7

Lands (one million acres) reserved for the kind and his family during The Great Mahele.

Question 8

Economic Value

Answer 8

The maximum amount the customer is willing to pay.

Question 9

Expansion

Answer 9

A phase of the real estate market cycle during which the demand for housing is high.

Question 10

Feudal

Answer 10

A system of mutual obligations under which a royal personage granted a fiefdom. Feudal property came with duties owed to others such as kings, queens, and countries.

Question 11

Government Lands

Answer 11

Lands designated as belonging to the government during The Great Mahele.

Question 12

Grant

Answer 12

A method for conveying land title.

Question 13

The Great Mahele

Answer 13

The Great Land Division that occurred in 1848 that divided the land into three classifications: Crown Lands, Government Lands, and Konohiki Lands.

Question 14

Hawaii

Answer 14

The 50th U.S. state, Hawaii consists of over 100 islands. There are only eight main islands that make up the Hawaiian Islands and only seven are inhabited. The main islands are Hawaii, also known as the Big Island, Maui, Oahu, Kauai, Molokai, Lanai, Niihau, and Kahoolawe.

Question 15

Kahoolawe

Answer 15

The smallest of Hawaii’s main islands.

Question 16

Kauai

Answer 16

The fourth largest of Hawaii’s main islands and the oldest of the main islands, as it is located the farthest away from the hotspot that formed the islands. Kauai is known as the Garden Isle for its undeveloped land and forests.

Question 17

Konohiki Lands

Answer 17

Lands given to the ali`i and konohiki during The Great Mahele.

Question 18

Land Court

Answer 18

A system of land registration created in 1903.

Question 19

Land Patent Grant

Answer 19

A method for conveying land title during the Hawaii monarchy.

Question 20

Market Value

Answer 20

The value of something determined by the supply and demand of the asset in the marketplace.

Question 21

Net Out-migration.

Answer 21

More people are leaving than coming in

Question 22

Over Supply

Answer 22

A phase of the real estate market cycle during which the equilibrium between supply and demand in the expansion phase tips over to excess, often due to overbuilding or a shift in the economy.

Question 23

Reccession

Answer 23

A phase of the real estate market cycle during which supply outweighs demand, home sales are flat, and those that do sell are listed in the market for longer periods of time. Money is usually tight with high interest rates.

Question 24

Recovery

Answer 24

The bottom phase of the real estate market cycle during which the demand for property is at a low point. There is usually no new construction and lease rates are flat. Identifying the beginning of a recovery phase is difficult, because the market still feels like a recession.

Question 25

Regular System

Answer 25

A system that conveys non-registered land by recording deeds or other documents in the Bureau of Conveyances.

Question 26

Royal Patent Grant

Answer 26

A method for conveying land title that was offered free and clear by the land commission.

Question 27

Subprime Mortgages

Answer 27

Mortgages given to people who did not have the income to qualify for traditional mortgages.