Unit 1 - Basic Real Estate Concepts

Question 1

The land plus permanent improvements and the interests, benefits, and rights inherent in real estate ownership.

Answer 1

Real Property

Question 2

Items that do not fit into the definition of real property; movable objects. Examples would include furniture, clothing, jewelry, money, vehicles, et cetera.

Answer 2

Personal Property AKA
Personalty AKA
Chattels

Question 3

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.

Answer 3

Land

Question 4

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.

Answer 4

Real estate

Question 5

Any structures attached to the land.

Answer 5

Tenements

Question 6

Any interests in real estate capable of being inherited.

Answer 6

Hereditaments

Question 7

A lack of uniformity; dissimilarity; no two parcels of land are exactly alike

Answer 7

Non-homogeneity AKA

Heterogeneity

Question 8

The personal preference of people for one location over another, not necessarily based on objective facts and knowledge.

Answer 8

Situs

Question 9

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.

Answer 9

Improved Land

Question 10

A lot that certain basic required services necessary to utilize it are available, such as electricity, telephone, street access, or water access.

Answer 10

improved lot

Question 11

(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.

Answer 11

improvement

Question 12

The possible use of a property that would produce the greatest net income and thereby develop the highest value.

Answer 12

highest and best value

Question 13

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.

Answer 13

provisional broker

Question 14

A North Carolina real estate licensee that has completed the 90-hour post-licensing education to remove the provisional license status

Answer 14

non-provisional broker AKA

full broker

Question 15

The business of providing funds necessary to complete real estate transactions

Answer 15

financing

Question 16

Providing competent independent advice and guidance on a variety of real estate problems

Answer 16

counseling

Question 17

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.

Answer 17

appraisal

Question 18

Five Categories of Real Property

Answer 18

1. Residential
2. Commercial
3. Industrial
4. Agricultural
5. Special purpose

Question 19

A place where goods can be bought and sold and value established

Answer 19

market

Question 20

The amount of goods available in the market to be sold at a given price.

Answer 20

supply

Question 21

The amount of goods people are willing and able to buy at a given price.

Answer 21

demand

Question 22

When supply increases and demand remains stable

Answer 22

Prices go down

Question 23

When demand increases and supply remains stable

Answer 23

Prices go up

Question 24

Factors affecting demand

Answer 24

1. Population
2. Demographics
3. Employment and wage levels

Question 25

The upward and downward fluctuations in business activities generally characterized by four stages: expansion, recession, depression, and revival.

Answer 25

business cycle

Question 26

The concept of land ownership that includes ownership of all legal rights to the land (i.e. disposition, exclusion, enjoyment, possession, and control)

Answer 26

bundle of legal rights

Question 27

(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.

Answer 27

broker