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1

Situs

Takes into account Societal & Economic factors of where the land is located.
Most important economic factor in real estate
Society & Economics

2

Permanence of Investment

Court Order
Party harmed by breach of RE Contract
Judge forces breaching party to pay monetary damages
Physical Characteristic of land
Doctrine of Specific Performance

3

Heterogenity & Non Homogeneity

No 2 parcels are alike
Both words mean the same thing
Unique

Ex: House/lot differences

4

Bill of Sale

Document used to transfer personal property
ex: Receipt

5

Title

Title = Ownership
Receipt of a Title = Deed

6

Supply & Demand

Supply increases = Price decreases
Demand increases = Price increases

7

Scarcity

Short Supply in comparison with demand

8

Real Estate Cycles

The cycle of Real Estate: E R D R
E - Expansion
R - Recession
D - Depression
R- Revival

9

Personal Property

aka - Chattel or Personalty
Readily Moveable or things you can take when you move

-Shake the house upside down, whatever comes out you can take
Ex: Couch, lamp, washer/dryer

10

NCREC Disciplinary Actions

1. Reprimand
2. Revoke
3. Suspend
4. Censure
* CANNOT GIVE FINES*

11

Who is eligible to take the course and get licensed?

1. 18 years or older
2. US Citizen
3. SSN
4. No formal education needed (not even HS)
5. Pass a background check
6. Committed to challenging course
7. NCREC requires contract (our registration for this course)

12

Fructus Industriales

Personal Property
Fruits of the the tree, but not the actual tree
Annual Crops

13

5 Categories of Real Estate

1. Residential (1-4 units)
2. Commercial
3. Industrial
4. Agricultural
5. Special Purpose (Funeral Home)

14

Real Estate

Artificially Attached
Land, buildings, sheds, Fences

15

Land

*Immobile & Indestructible*

Earth's Surface
Downward to the center of the earth upward to heaven

FFA has access through for air space

16

North Carolina Real Estate Commission

NCREC: 9 members duty is to protect & promote interest of the Public, they create rules & regs

7 appointed by the Government
2 appointed by Legislative

3 must hold RE licenses
2 must be lay people

Chair selected by the Commission

17

Realtor vs. Broker

Realtor: Trade organization member (you do not have to join)

Broker: Real Estate Brokers License holder

Must be a Broker to become a Realtor

18

Provision Broker

1. Supervised by BIC
2. Needs to complete post licensing education

complete courses 301, 302 & 303 within 18 months of passing exam
You are considered Active if:

1. Completed all Continuing Education (CE)
2. Renewed your license annual $45
3. Affiliated with a BIC

If not all of those 3 things are a yes, you are inactive

19

Full Broker

1. Complete all of your CE (301,302 & 303)
2. Renewed your license annual $45

You no longer need BIC Supervision

If not all of those things are a yes, you are inactive

20

BIC Eligible

Has met the requirements to become a BIC but is not actively serving as a BIC

aka Vice President

21

BIC

Broker in Charge (pronounced like Bic pen)

Supervises the entire office

aka Head honcho, President

22

4 North Carolina License Status'

1. Provisional Broker
2. Full Broker
3. BIC Eligible
4. BIC

23

When is a Real Estate License required?

MUST BE ALL 3:

1. It is a Real Estate activity: LL BEANS
List, Lease, Buy, Exchange, Auction, Negotiate & Sell
2. For someone else other than yourself
3. Getting Paid

Exceptions:
1. Salaried employees of a broker/developer/owner of the property.
1a. Unlicensed RE assistants CAN NOT show a property for sale, only rentals
2. An attorney providing a legal service (ex: probate estate)

24

Rate of Return (ROR)

The % of the net income produced by a property or another investment

Net = AFTER TAXES

25

Appreciation

An increase in property value

26

Inflation

The Purchase price of goods changes over time & typically grows 1-2% annually.

ex: Milk 1920's = $0.20. Milk 2020 = $3.50

27

Appurtenance

Any right or privilege that is considered to run w/ the land. Not all rights and privileges run w/ the land, must be perusal in nature.

Ex: Municipal water & sewer lines: it is the right and privilege that the government has to place the pipes to provide utility services.

28

Land Use Controls

1. Public
2. Private
3. Government

29

Highest & Best Use

Physical & Economic factors affecting the land that provide:
1. The GREATEST return
2. Maximizes the value of Real Estate
3. Must be a use feasible future use

Ex: Transportation, Resources, Zoning, Elevation & Contour (shape of the land)

30

Protective Covenants

An agreement restricting specified financial transactions.

Ex: a loan agreement states that a person may not borrow money from another lender against certain collateralized property.