Ch 1 Basic Real Estate Concepts Flashcards
1
Q
What Is Real Property
A
The land and everything attached to it “immovable” “transfers by a deed”
2
Q
What is Personal Property
A
Everything else ex. “Personalty” “Chattle” tranfers ownership by bill of sale
3
Q
What is Real Estate
A
The earths surface down to the center and up to the heavens Ex. “surface” “Subsurface”
4
Q
What are Physical Characteristics
A
Immobility, Indestructibility, Uniqueness
5
Q
What are Economic Characteristics
A
Scarcity, Permanence of Investment
6
Q
What is Leverage
A
Effect of using borrowed money to make money “risky”
7
Q
What is Equity
A
The difference between value and debt “The more equity the less risk of foreclosure”
8
Q
Highest and Best Use
A
The most profitable single use to which a property is adapted will produce the highest return on investment ROI
