Basic Real Estate Concepts

Front 1

Land

Back 1

Includes earths surface and any naturally attached components down to earths core and up to infinity

Front 2

Surface Rights

Back 2

Includes everything on the lands surface (vegetation and/or water)

Front 3

Subsurface Rights

Back 3

Rights to space below ground level (minerals, oil, water, natural gas)

Hint 3

(Mineral Rights)

Front 4

Air Rights

Back 4

Rights of land extending upward (height established by law) limited because can’t prevent plane and helicopter flying overhead

Front 5

Water Rights

Back 5

Divided into riparian rights and littoral rights. Owners rights of water meeting their property.

Hint 5

What are the 2 categories?

Front 6

Riparian Rights

Back 6

If owners property meets shoreline of moving water (rivers/lakes/streams) owner has reasonable rights to water IF user doesn’t impair use by others or cause pollution

Hint 6

Flowing water rights

Front 7

Littoral Rights

Back 7

If owners property boarders still waters (oceans/lakes/ponds) they have reasonable rights to water. Extends to land next to water up to average high-water mark.

Hint 7

Non-flowing water rights

Front 8

Accretion

Back 8

Gradual buildup of land due to deposit of sand/soil from body of water on property. Increases land owned

Front 9

Erosion

Back 9

Wearing away of land by flowing water or other natural sources. Causes loss of property/land.

Front 10

Alluvion

Back 10

Sand/soil buildup that increases land owned

Hint 10

Result of accretion

Front 11

Reliction

Back 11

Land left behind as water recedes

Front 12

Real Estate

Back 12

includes land plus all artificially attached items (improvements). Improvements are permanent, human-created enhancements to the land

Front 13

Improvements

Back 13

Permanent man made upgrades making land more usable

Hint 13

For example: roads, buildings, sidewalks, utilities

Front 14

Real Property

Back 14

Includes interests, rights, and benefits of ownership. Includes land and everything permanently attached to land and rights of ownership

Front 15

Bundle of Legal Rights

Back 15

- right to possession and use

- right to profit from use of land

- right to dispose of encumber land

- right to exclude others

Hint 15

AKA Tenements and Hereditaments

Front 16

Tenements

Back 16

Buildings permanently attached to land

Front 17

Hereditaments

Back 17

Real estate interests (property) that can be inherited

Front 18

Residential Property

Back 18

Housing in any area

Front 19

Commercial Property

Back 19

Business properties

Hint 19

Hotels, offices, theaters, etc.

Front 20

Industrial property

Back 20

properties where something is produced

Hint 20

Warehouses, power plants, etc.

Front 21

Agricultural Properties

Back 21

Lands used for agricultural purposes

Hint 21

Farms, ranches, vineyards, etc.

Front 22

Special Purpose Properties

Back 22

Misc. properties + government owned property

Hint 22

Churches, schools, cemeteries, etc.

Front 23

Personal Property

Back 23

Any property that is not real property

Hint 23

Property not included in sale. Staging furniture, anything not included in building and land.

Front 24

Immobility

Back 24

Property can’t move (unless it’s a mobile home ofc)! Impacts value greatly

Front 25

Indestructibility

Back 25

Land itself can’t be destroyed or erased

Front 26

Uniqueness

Back 26

Every property is different. Geographic features affect value

Front 27

Scarcity

Back 27

Supply of land is fixed!

Hint 27

“They aren’t making anymore land, get what you can!”

Economic characteristic

Front 28

Location

Back 28

Value of land in desired places increase over time.

Hint 28

Economic characteristic

Front 29

Situs

Back 29

physical site where a property or entity is located

Hint 29

Preference

Front 30

Private improvements

Back 30

Improvements ON land for private benefit

Hint 30

Pool built on land, add on, renovation

Front 31

Public Improvements

Back 31

Benefits everyone. Improvements TO land.

Hint 31

New roads and sidewalks, a paved bike path, new sewage system, etc.

Front 32

Permanenance of Investment

Back 32

Investments in real estate are long term due to physical characteristics and immobility

Hint 32

Economic characteristic

Front 33

Highest and Best Use Concept

Back 33

Refers to real estate improvements in land parcel that most closest fit demand of lands location

Hint 33

Is real estate being used to the best of its ability and producing max investment return available?

Front 34

Land Use Restrictions

Back 34

Local government have land use ordinances for the benefit of community

Hint 34

What government says goes

Examples: painting all houses in subdivision the same color for aesthetic purposes, requiring lawn to be kept neat, etc.

Front 35

Investor Goals

Back 35

Goal of investor

Hint 35

Should consult tax expert or real estate attorney

Front 36

Profit on Sale

Back 36

Determined by completion of renovations, refurbish costs, unforeseen problems, mortgage interest and brokers commission

Hint 36

How much money will be made when all is said and done

Front 37

Market Fluctuation

Back 37

Changes in market/ cause and affect

Hint 37

When inflation is high cost of construction rises, when new homes are built in an area sale prices of existing homes in area rise

Front 38

Provisional Broker

Back 38

Entry level, can perform activities of broker under supervision of BIC. Completing post licensing courses makes a professional broker an actual broker

Hint 38

Baby Broker

Front 39

Broker (full broker)

Back 39

Can engage in brokerage if working for licensed brokerage

Hint 39

Under BIC

Front 40

Broker in Charge (BIC)

Back 40

Highest level of real estate licensure in NC. Every firm must have at least 1 BIC. Must be a full broker w at least 2 yrs full time (or 4 yrs part time) experience and completed additional 12 hr course

Front 41

Real Estate Agent

Back 41

Blanket term used to describe someone who helps clients sell and buy real estate

Front 42

Realtor

Back 42

Must be a member of national association of realtors

Front 43

Appraisal

Back 43

Estimate of value of property

Hint 43

Estimated _____ of property

Front 44

Property Management (manager)

Back 44

Handles tasks for owners and inveetors

Hint 44

Collects rent, handles maintenance, finds renters, etc.

Front 45

Financing

Back 45

Act of securing money got a loan on a real estate purchase

Front 46

Property Development

Back 46

Purchase of raw land that is subdivided, turned into lots, builds and sells houses on land

Front 47

Real Estate Counseling

Back 47

Provides advice on how to resolve real estate issues

Front 48

Buyer/Seller Market

Back 48

When supply of real estate to buy (or lease) exceeds demand, prices (or rents) will decline bc there are more sellers than buyers. When there are more buyers than sellers rent is raised and homes sell for more

Hint 48

Sellers market is good for making money/buyers market is bad for making money but great for jumping in the game

Front 49

Demand/Supply

Back 49

If the demand for real estate is high then prices are high. If supply of real estate exceeds demand then money is lost.