Section 1 - Basic Real Estate Concepts

Question 1

Real estate

Answer 1

Land plus all artificially attached items (improvements)

Question 2

Real property

Answer 2

Real estate plus interests, rights and benefits (land, tenements, hereditaments)

Question 3

Personal property

Answer 3

All property that is not real property (can be moved)

Question 4

Real property rights

Answer 4

Include Disposition, Enjoyment, Exclusion, Possession, Control (DEEP-C)

Question 5

Economic characteristics of land

Answer 5

Scarcity, improvements, permanence, location/area preference

Question 6

Physical characteristics of land

Answer 6

Immobility, indestructibility, uniqueness

Question 7

Highest and best use

Answer 7

Analysis that identifies the legal and feasible use that will return the highest value
(legal, physically possible, financially feasible, most profitable use?)

Question 8

Private and public land use controls

Answer 8

Restrictions on the use or appearance of land by an individual or private organization

Question 9

Examples of private land use controls

Answer 9

Deed restrictions, CC&Rs, Subdvision/HOA, liens, easements

Question 10

Public land use controls

Answer 10

Used by government (fed/state/local) to ensure health, safety and welfare of citizens.

Question 11

Government can impose it’s power through…

Answer 11

Taxation, eminent domain, escheat, police power

Question 12

Buyer’s market

Answer 12

Supply high, demand low, homes slower to sell

Question 13

Seller’s market

Answer 13

Supply low, demand high, homes sell quickly

Question 14

Land

Answer 14

The earth’s surface plus any naturally attached components down to center of the earth and upward to infinity