Basic Real Estate Concepts Ch 1 Nc

Front 1

Define Real property

Back 1

is defined as the land, the core of earth all the way up to infinity(airspace) includes things like trees and water. Part 2: Real estate which includes the land, anything naturally there plus man made additions. Ex. a shed. Part 3 of real p. is the land plus the real estate, plus the bundle of legal rights.

Front 2

Bundle of legal rights

Back 2

The rights and privlages that are included in ownership. Also, part of real prop.

Front 3

What are the bundle of legal rights? Acronym Deepc

Back 3

Disposition
Exclusion
Enjoymeny
Possessesion
Control

Front 4

Pt are Bundle of Legal: explain
1. Disposition

Back 4

The right to sell or transfer land/ real estate to new owner

Front 5

2. exclusion:
legal right 2

Back 5

The right to excluse others. To keep others from entering or using the property.

Front 6

3. enjoyment:
legal right 3

Back 6

The right to use Property in any legal mannor.

Front 7

4. possession:
legal right 4

Back 7

The right to ownership.

Front 8

5. Control:
legal right 5

Back 8

The right to do what want to property. Example: Paint fence.

Front 9

Physical Characteristics:
Name three

Back 9

What can I physically do with Property?
1. immobility
2. indestructability
3. Uniqueness

Front 10

Phycical characteristic: #1
Immobility

Back 10

Land can not be moved. The geographical location can never be changed.

Front 11

Phycical characteristic: #2
Indestructibility

Back 11

Land can not be destroyed. It is durable and permanent.

Front 12

Phycical characteristic: #3
Uniqueness

Back 12

No two parcels of land can be exactly the same. They however can be simular, but their geographic locations are what make each parcel differ.

Front 13

Economic Characteristics:
Name Four
Clue: SIPA

Back 13

These are the factors that influence land's value as an investment.
1. Scarcity
2. Improvements
3. Permanence of investment
4. Area
How is your money going to matter?

Front 14

Economic Characteristic: # 1
Scarcity

Back 14

Although, land seems unlimited, it's supply is actually fixed. We can't not make more of it and in some places there is limited land. This can create a high demand for land, causing value to increase.

Front 15

Economic Characteristic: # 2
Improvements

Back 15

An addition or change to a building or land, that affects the property's value.
Private improvements, like working on your house or fence are refered to as improvements ON the land. Where as public improvements are refered to as improvements to the land. ex -- side walks, sewer system

Front 16

Economic Characteristic: # 3
Permanence of Investment:

Back 16

Once land is improved, the total capital and labor used to build the improvements represent a large fixed investment. The rate of return is a long-term investment. The owner also has no way to transfer the investment to another parcel of land.

Front 17

Economic Characteristic: # 4
Area

Back 17

LOCATION, LOCATION, LOCATION:
Refers the peoples tastes and choices regarding a given area.

Front 18

Situs: related to area

Back 18

Is a related term regarding location that takes in consideration social factors, in addition to economic factors.

Front 19

Personal Property:

Back 19

All that doesn't fit the real property definition. Primary characteristic is : Movability. Anything that is not real. AKA personalty. Also know as chattels: anything movable: chairs, table, coach etc.

Front 20

Highest and Best Use:

Back 20

The use of Real Estate investment that will give owner the greatest actual return on investment. Property only has one highest and best use at a given time, but that can change because of socioeconomic conditions.

Front 21

Land-use-controls:

Back 21

Even if potential use of a property is known, land use controls will actually limit what can and cant be done on property.

Front 22

Brokerage:

Back 22

The business of bringing two people together interested in making a real estate transaction.

Front 23

Broker:

Back 23

Acts as an agent who negotiates the sale, purchase, or property rental on behalf of others for fee or commision.

Front 24

Sales Person:

Back 24

Works on behalf of broker. Must be under supervision of broker when listing, selling, buying renting etc. property.

Front 25

Appraisal:

Back 25

The process of estimating the value of a parcel of real estate.

Front 26

Appraisers:

Back 26

Generally employed when property is financed, or sold by court order. The appraiser MUST have sound judgement, detailed knowledge of the method of valuation and be licensed as appraiser.

Front 27

Property Management:

Back 27

Someone who operates property for it's ownner. The manager's basic responsability is to protect the owner's investment and maximize the owners return on the investment.

Front 28

Financing:

Back 28

The business of providing the funds neccessary to complete a real estate transaction. Ex. Mortgage Loan

Front 29

Property Development:

Back 29

Work of developers or subdividers, who purchase raw land, divide it into lots, build roads and install sewer systems.

Front 30

counceling and Education:

Back 30

To council is to provide competent independent advice and guidence on a variety of real estate problems.
To educate: Provision of information to both the real estate practitioner and the consumer.

Front 31

NAR: National Association Of REALTORS

Back 31

est: 1908. The largest trade organization. The NAR serves the intrests of their members by keeping them informed. They follow a strict code of ethics and are entitled to be known as REALTORS or REALTOR ASSOCIATES.

Front 32

Term REALTORS

Back 32

is a registered trademark.
All REALTORS are licensees, but not all licensees are REALTORS.

Front 33

Uses of Real Property:
Five catagories

Back 33

1. Residential
2. commercial
3. industrial
4. agricultural
5. special-purpose

Front 34

Use of Real Property: # 1
Residential

Back 34

All property used for housing, from acreage to small city lots, both single family and multi family, in urban, suburban, and rural areas.

Front 35

Use of Real Property: # 2
Commercial

Back 35

Business Property, Including offices, shoping centers, stores, movie theaters, hotel, and parking facilities.

Front 36

Use of Real Property: # 3
Industrial

Back 36

Warehouses, factories, land in industrial districts and power plants.

Front 37

Use of Real Property: # 4
Agricultural

Back 37

Farms, timberland, ranches, and orchards

Front 38

Use of Real Property: # 5
Special-Purpose

Back 38

Churches, schools, cemetaries, and government held land

Front 39

Market:

Back 39

Is a place where goods are brought and sold, where value for those goods is established and where it is beneficial for buyers and sellers to trade.

Front 40

Market Function:

Back 40

To facilitate this exchange by providing a setting in which the supply and demand forces of the economy can establish market value.

Front 41

Supply and demand:

Back 41

When supply increases, prices drop as more products compete for buyers.
When demand increases, prices rise as more buyers compete for the product.

Front 42

Point of Equilibrum:

Back 42

When supply and demand are balance.

Front 43

Business cycle:

Back 43

The upward and downward fluctuations in business activity. B.C is caused by such forces as population growth, taxes, intrest rates, wars and oil embargoes.

Front 44

The Four stages of Business Cycle:

Back 44

1-- expansion
2-- recession
3-- depression
4-- revival

Front 45

All of the following factors affect supply

Back 45

-> the labor force
-> construction costs
-> government controls