Chap 1

Front 1

REAL PROPERTY

Back 1

Defined as the Land, everything permanently attached to the Land and everything appurtenant to (or goes with) the Land.

Front 2

PERSONALTY

Back 2

Personal Property - Considered to be all property that does not fit the definition of Real Property

Front 3

CHATTEL

Back 3

Items of Personal Property (moveable) ex. - Furniture, Clothing, Money, bonds, bank accounts

Front 4

LAND

Back 4

Earth's Surface extending downward to Center of Earth and upward to infinity including things permanently attached by nature such as trees and water.

Front 5

PARCEL

Back 5

A specific tract of Land

Front 6

REAL ESTATE

Back 6

"Realty" Defined as Land at, above, and below the earth's surface, including all things permanently attached to it, whether natural or artificial . Land is referred to as 'improved' when streets, utilities, sewers are brought to make suitable for building.

Front 7

REAL PROPERTY

Back 7

The Land itself, the improvements thereon and the intersects, benefits and rights inherent in ownership of real estate. (Bundle of Legal Rights)

Front 8

2 CATEGORIES OF REAL PROPERTY

Back 8

Economic and Physical

Front 9

ECONOMIC (SLIP)

Back 9

1. Scarcity

2. Location (Situs)

3. Improvements

4. Permanence of Investment

Front 10

PHYSICAL

Back 10

1. Immobility

2. Indestructibility

3. Uniquenesse

Front 11

ECONOMIC - Scarcity

Back 11

Land's total supply is fixed but a given location or type / quality may be limited

Front 12

ECONOMIC - Location

Back 12

Area Preference - Situs - takes into consideration social factors in addition to economic factors.E

Front 13

ECONOMIC - Improvements

Back 13

Any addition or change to land or building that affects the property's value

'on the land' - done to a house, fencing etc.

'to the land' - public nature, sidewalks, sewer etc.

-- repairs / replacements are not improvements

Front 14

ECONOMIC - Permanence of Investment

Back 14

Once Land is improved, total capital and labor used represents a large fixed investment

- drainage, electricity and water cannot be removed economically

- owner has no way to transfer investment to another parcel of Land.

Front 15

PHYSICAL - Immobility

Back 15

Geographic location of any given parcel of land can never be changed.

Front 16

PHYSICAL - Indestructibility

Back 16

Land is durable and indestructible however, improvements on Land can depreciate therefore reducing value.

depreciation - should not be confused with the fact a given location becomes undesirable economically therefore creating a decrease in market value

Front 17

PHYSICAL - Uniqueness

Back 17

Also referred to as non homogeneity or heterogeneity . Each parcel of Land is unique and

Under Doctrine of Specific Performance, monetary damages could never compensate a party harmed so the breaching party must carry out terms of contract.

Front 18

HIGHEST AND BEST USE

Back 18

Use that will give owners the greatest actual return on their investment

Front 19

BROKER

Back 19

An Agent who negotiates the sale, purchase or rental of property on behalf of others for a Fee or Commission.

Front 20

PROVISIONAL BROKER

Back 20

2 yrs - under supervision of a Broker-in-Charge

Front 21

5 CATEGORIES OF REAL PROPERTY

Back 21

1. Residential

2. Commercial

3. Industrial

4. Agricultural

5. Special - Purpose

Front 22

MARKET

Back 22

A place where goods are bought/ sold literally

Functions to facilitate this exchange by providing a setting in which supply and demand forces can establish a market value.

Front 23

SUPPLY & DEMAND

Back 23

When supply increases prices drop, when demand increases prices rise, both are balanced at 'point of equilibrium'

Front 24

BUSINESS CYCLES

Back 24

The upward and downward fluctuations in business activity caused by forces such as population growth, taxes, interest rates, war