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45 Cards in this Set

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Define Real property
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.
Bundle of legal rights
The rights and privlages that are included in ownership. Also, part of real prop.
What are the bundle of legal rights? Acronym Deepc
Pt are Bundle of Legal: explain
1. Disposition
The right to sell or transfer land/ real estate to new owner
2. exclusion:
legal right 2
The right to excluse others. To keep others from entering or using the property.
3. enjoyment:
legal right 3
The right to use Property in any legal mannor.
4. possession:
legal right 4
The right to ownership.
5. Control:
legal right 5
The right to do what want to property. Example: Paint fence.
Physical Characteristics:
Name three
What can I physically do with Property?
1. immobility
2. indestructability
3. Uniqueness
Phycical characteristic: #1
Land can not be moved. The geographical location can never be changed.
Phycical characteristic: #2
Land can not be destroyed. It is durable and permanent.
Phycical characteristic: #3
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.
Economic Characteristics:
Name Four
Clue: SIPA
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?
Economic Characteristic: # 1
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.
Economic Characteristic: # 2
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
Economic Characteristic: # 3
Permanence of Investment:
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.
Economic Characteristic: # 4
Refers the peoples tastes and choices regarding a given area.
Situs: related to area
Is a related term regarding location that takes in consideration social factors, in addition to economic factors.
Personal Property:
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.
Highest and Best Use:
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.
Even if potential use of a property is known, land use controls will actually limit what can and cant be done on property.
The business of bringing two people together interested in making a real estate transaction.
Acts as an agent who negotiates the sale, purchase, or property rental on behalf of others for fee or commision.
Sales Person:
Works on behalf of broker. Must be under supervision of broker when listing, selling, buying renting etc. property.
The process of estimating the value of a parcel of real estate.
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.
Property Management:
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.
The business of providing the funds neccessary to complete a real estate transaction. Ex. Mortgage Loan
Property Development:
Work of developers or subdividers, who purchase raw land, divide it into lots, build roads and install sewer systems.
counceling and Education:
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.
NAR: National Association Of REALTORS
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.
is a registered trademark.
All REALTORS are licensees, but not all licensees are REALTORS.
Uses of Real Property:
Five catagories
1. Residential
2. commercial
3. industrial
4. agricultural
5. special-purpose
Use of Real Property: # 1
All property used for housing, from acreage to small city lots, both single family and multi family, in urban, suburban, and rural areas.
Use of Real Property: # 2
Business Property, Including offices, shoping centers, stores, movie theaters, hotel, and parking facilities.
Use of Real Property: # 3
Warehouses, factories, land in industrial districts and power plants.
Use of Real Property: # 4
Farms, timberland, ranches, and orchards
Use of Real Property: # 5
Churches, schools, cemetaries, and government held land
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.
Market Function:
To facilitate this exchange by providing a setting in which the supply and demand forces of the economy can establish market value.
Supply and demand:
When supply increases, prices drop as more products compete for buyers.
When demand increases, prices rise as more buyers compete for the product.
Point of Equilibrum:
When supply and demand are balance.
Business cycle:
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.
The Four stages of Business Cycle:
1-- expansion
2-- recession
3-- depression
4-- revival
All of the following factors affect supply
-> the labor force
-> construction costs
-> government controls