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26 Cards in this Set
- Front
- Back
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What is Real Estate/Realty/Real Property? What are the 3 Components of Land Ownership? |
Land and everything that is permanently attached to it. 1-Mineral Rights 2- Air Rights 3- Surface (of the Earth) Rights (These components are separable) |
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What is Personal Property? |
Everything that is readily movable. |
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What are ECONOMIC Characteristics of Real Property? |
Economic 1- scarcity/limited availability 2- permanence of investment 3- location 4- modification by improvement |
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What Are PHYSICAL Characteristics of Real Property? |
Physical 1- immobility (Land cannot be relocated) 2- indestructibility (permanence) 3- heterogeneity (uniqueness) |
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What is Indestructibility? |
Permanence Land is ... - permanent - cannot be destroyed - maybe altered substantially in topography, but it remains |
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What is Heterogeneity? (Non-Homogeneity) |
No 2 parcels of land are identical |
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What is Homogeneity? |
Neighborhoods that are alike and made up of similar properties |
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What is Scarcity? (An economic characteristic affecting land use) |
Availability or lack of availability. |
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What is Supply and Demand? (An economic characteristic affecting land use) |
The greater the supply of any commodity in comparison with demand, the lower the value will be. |
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What is Permanence of Investment? (An economic characteristic affecting land use) |
-Location has greatest effect on land -Modification by improvement Basically, because land is permanent, it's a good investment (but it fluctuates, and has to be attractive . E.g. Someone looking for land for a golf course needs hills, but if putting in a swimming pool, flat land is needed. |
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What is Modification by Improvement? (An economic characteristic affecting land use) |
Greatly affects the value of land... lot transforms from vacant to completed dwelling, the land increases; Improvements not limited to the building but can be landscaping, connection to public utilities, improved road access, etc. (page 5) |
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What is Location? (An economic characteristic affecting land use) |
Of all the characteristics of land, location has the greatest effect on property value |
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What is Highest and Best Use? |
The use of land that will preserve land (utility?), provide the greatest income, and result in the greatest present value of the land. |
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What is Specific Performance? |
Legal remedy for breach of contract (Uniqueness) E.g. We have a binding contract and now you renig on our deal. I sold my home already and your house is the only house that can satisfy my unique wants- I can sue you. |
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What are land use restrictions? |
Feudal System- Land owned or controlled by the king Allodial System- Individual or private ownership of land (came to the US in 1785) |
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What's an Investment? |
Outlay of $ expecting income or profit or the acquisition of property expecting income or profit. |
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What is NAR? |
National Association of Realtors - Est. 1908 -Dedicated to the preservation of private property rights |
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What is a Realtor? What is MLS? |
A professional in real estate who subscribes to a strict code of ethics known as the Code of Ethics and Standards of practice (a registered trademark of NAR) Multiple Listing Service- The information highway in real estate |
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What is ARELLO? |
Association of Real Estate License Law Officials -Est. 1929 by license law officials on state commissions -Assist each other in creating, administering, and enforcing license laws |
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What is a Listing Contract? |
A document that details when a property owner employs a real estate firm to market a property for a period of time and terms |
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What is a Contract for Sale (Offer to Purchase)? |
A binding contract to buy and sell real property results from the written acceptance of a written offer to purchase or counteroffer. |
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What is Financing Leverage? |
Leverage is the use of someone else's $ to enhance your own. |
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What happens at the Final Settlement (Closing)? Who Receives What? |
The completion of the real estate transaction occurs at final settlement or closing -Buyer receives the deed -Seller receives compensation for sale of property -Real estate broker receives commission |
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What is Free Market? |
It provides ample time for a buyer and seller to affect a mutually beneficial purchase and sale without undue pressure or urgency. |
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What are Physical Characteristics/Factors Affecting Land Use? -NATURAL FACTORS -ARTIFICIAL FACTORS (Page 5-6) |
Natural- location, topography, soil conditions, size, shape, subjection to flooding, action of the sun, and the presence of absence of minerals. Artificial- streets, highways, adjacent land use patterns, and availability of public utilities. |
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What are ECONOMIC Characteristics/Factors Affecting Land Use? |
Examples: Local property tax assessments, tax rates, wage and employment levels, availability of financing, interest rates, growth in the community, zoning, fire regulations, building codes, and extent of community planning |
