Flashcards in Chapter 1-3 Deck (70)
what is brokerage?
bringing parties together in a real estate transaction
what is appraisal?
it is the process of estimating a property't market value based on establishing methods and professional judgment
what is property manager?
a person or company hired to maintain and mange property on behalf of it's owner
what is subdivision?
it is the splitting of a single property into smaller parcels
what is development?
involves the contraction of the improvements on the land
what is home inspections?
it is profession that allows practitioners to combine their interest in real estate with their professional skills and training in the construction trades
what is counseling?
this involves providing clients with come tent independent advice base on the sound profession judgment
what is auctioning buying or selling?
this uses an open and competitive bidding to transfer property.
what is are requirements auctioneers in IL?
they must be licensed in IL.
what is the largest organization?
National association of realtors (NAR)
what is a member of NAR called?
what does NAR prides themselves over?
member adheres to a code of ethics and dedicated to equal housing opportunity
what are the five categories of real property?
residential, commercial, industrial, agricultural and special purpose
what are the factors that affect supply of real estate?
labor force, construction cost, government controls and government financial polices
what is labor force and construction costs?
1. a storage of skilled labor or building materials or an increase in the cost decrease the amount of new homes
2. construction permit fees and high property transfer cost
what are the government controls and financial policies?
the federal reserve board establishes a discount rate of interest for the money it lens to its member banks. that rate has direct impact on the interest rates that banks charge to borrowers
what are government agencies?
the federal housing administration (FHA), and the department of veteran affairs (VA), also have impact by insuring or guaranteeing loans
What are factors that affect the demand for real estate?
population, demographics, employment and wage levels
what is land?
is the earth's surface extending downward to the center of the earth and upward
what is real estate?
is defined as land at, above and below the earth's surface, plus all things permanently attach to it
what are the bundle of rights?
possession, control, enjoyment, exclusion, disposition
what is personal property?
is all property that can be owned and that does not fit the description of real property
what are the two classes of plants?
1. trees, perennial, shrubbery and grasses that do require annual cultivation are considered real property
2. annually cultivation crops such as wheat, corn, vegetables and fruit
what are emblements?
are generally considered personal property. As long as annual crop is growing, it will stay with real property unless other provisions are made
what is custom in IL for farmland?
when farmland is sold, it customary for it to be transferred on march 1.
what is severance?
an item of real property can become personal property
what is annexation?
when personal property becomes real real property
what is fixture?
is person property that has been so affixed to land or building that by time it becomes real property
what is legal test of fixture?
did person who installed the item for it to remain permeant on the property or for it to be movable in the future?