Real Estate Terms Flashcards
Which economic characteristic describes Supply & Demand?
Scarcity
Which economic characteristic describes significance of a property’s location?
Situs
Which economic characteristic describes human-made changes and improvements to land?
Modification
Which economic characteristic describes Permanence of Land?
Fixity
Relative difficulty of converting an asset to cash without loss of value
Illiquidity
Value that may be determined by the use of the land, location is also a factor
Perceived value
True or false: The owner of the land can be different from the “Person in Possession”
True - a tenant may be the person in possession
Give an example of a “Portion of Property”
An easement = right of passage to use portion of land
Term that refers to the access a property has for employees, customers, raw materials for building, etc.
Slope & Transportation
True or False: Supply and price move in opposite directions
True - an under-supply will raise prices / an over-supply will decrease prices
True or False: Demand & supply move in the same direction
True - high demand = high price / low demand = low price
The actual piece of earth, including anything below the surface and the air above it
Land
Land AND any improvements on it
Real estate
Land, improvements PLUS the bundle of rights that come with ownership
Real property
Every piece of land is different in its own way - location on earth, etc.
Non-homogeneous
Scarcity, Situs, Modification, Fixity, Illiquidity
Lands economic characteristics
Supply & demand, Demographics, employment, government controls, interest rates are examples of
Impacts on the Real estate market
Relating to the structure of populations; “the ____ trend is toward an older population”
Demographic
Rule book provided by sponsoring broker that states permitted actions under their brokerage
Policy manual or office manual
Illegal act of mixing your money with clients money instead of sending it to the title company for safekeeping
Commingling
Illegal act of using someone else’s money for the wrong reason then not being able to return it
Conversion
True or False:
A salesperson employed by an owner of land and structures erected by owner does not need a RE license to sell their homes
True
What happens if neither party of a sale hires an attorney to secure the deed in a sale?
The attorney at the title company will ensure it is handled at the end of the sale
Who regulates activities of RE brokers, agents, inspectors, education providers, residential service companies, timeshare developers, easement developers?
TREC
TRELA is the ___
Law
TREC Enforces ____
TRELA
Name of process: Any fixtures left behind after lease expiration become landlords property
Accession
Fixtures in leased commercial property owned by tenant that relates to their trade
Trade fixtures
