Unit 1 - Basic Real Estate Concepts Flashcards
The land plus permanent improvements and the interests, benefits, and rights inherent in real estate ownership.
Real Property
Items that do not fit into the definition of real property; movable objects. Examples would include furniture, clothing, jewelry, money, vehicles, et cetera.
Personal Property AKA
Personalty AKA
Chattels
The earth’s surface, extending downward to the center of the earth and upward infinitely into space, including things permanently attached by nature, such as trees and water.
Land
Land; a portion of the earth’s surface extending downward to the center of the earth and upward infinitely into space, including all things permanently attached to it, whether naturally or artificially.
Real estate
Any structures attached to the land.
Tenements
Any interests in real estate capable of being inherited.
Hereditaments
A lack of uniformity; dissimilarity; no two parcels of land are exactly alike
Non-homogeneity AKA
Heterogeneity
The personal preference of people for one location over another, not necessarily based on objective facts and knowledge.
Situs
Land that has a building or buildings on it or land that has been prepared for development, such as with grading, installation of utilities, et cetera.
Improved Land
A lot that certain basic required services necessary to utilize it are available, such as electricity, telephone, street access, or water access.
improved lot
(1) Any structure, usually privately owned, erected on a sire to enhance the value of the property - for example, a fence or driveway (2) A publicly owned structure added to or benefiting land, such as a curb sidewalk, street, or sewer.
improvement
The possible use of a property that would produce the greatest net income and thereby develop the highest value.
highest and best value
A real estate licensee who performs real estate activities under the supervision of a licensed real estate broker-in-charge. Must complete post-licensing courses to become a full broker.
provisional broker
A North Carolina real estate licensee that has completed the 90-hour post-licensing education to remove the provisional license status
non-provisional broker AKA
full broker
The business of providing funds necessary to complete real estate transactions
financing
Providing competent independent advice and guidance on a variety of real estate problems
counseling
An estimate of the quantity, quality , or value of something. The process through which conclusions of property value are obtained; also refers to the report that sets forth the process of estimation and conclusion of value.
appraisal
Five Categories of Real Property
- Residential
- Commercial
- Industrial
- Agricultural
- Special purpose
A place where goods can be bought and sold and value established
market
The amount of goods available in the market to be sold at a given price.
supply
The amount of goods people are willing and able to buy at a given price.
demand
When supply increases and demand remains stable
Prices go down
When demand increases and supply remains stable
Prices go up
Factors affecting demand
- Population
- Demographics
- Employment and wage levels
The upward and downward fluctuations in business activities generally characterized by four stages: expansion, recession, depression, and revival.
business cycle
The concept of land ownership that includes ownership of all legal rights to the land (i.e. disposition, exclusion, enjoyment, possession, and control)
bundle of legal rights
(1) One who acts as an intermediary on behalf of others for a fee or commission. (2) One who is licensed to list, lease, buy, exchange, auction, negotiate or sell interest in real estate for others for a fee.
broker
