Chapter 1 : Basic Concepts Flashcards Preview

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Flashcards in Chapter 1 : Basic Concepts Deck (39):
1

CHATTEL

Item of moveable personal property such as furniture, clothing, money, bonds, & bank accounts

2

LAND

Earth's surface extending downward to the center of the earth and upward to infinity, including trees, and water.

3

REAL PROPERTY

land itself, improvements, interests, benefits, and rights inherent in ownership.

4

REAL PROPERTY Characteristics

7 that are Physical & Economical

5

3 Physical Characteristics of Real Property

Immobility, Indestructibility, Uniqueness

6

Uniqueness of Land =

Nonhomogeneity or heterogeneity

7

4 Economic Characteristics of Real Property

Scarcity, Location, Improvements, Permanence of Investment (SLIP); influence its value as an investment

8

Scarcity : Economic Charactertistic

the increasing use of land has a positive impact on value

9

Location :Economic Characteristic

One of the most important economic characteristics of land.

10

SITUS

Location that takes into consideration of social factors in addition to economic factors.

11

Improvements: Economic Characteristic

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

12

Improvements of house, fencing

ON the land

13

Improvements of public nature, sidewalks, sewer systems, curbing etc.

TO the land

14

Permanence of Investment: Economic Characteristic

Improvements such as drainage, sewer & water, electricity. ROI long term

15

HIGHEST & BEST USE

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

16

Appraisal: Specialization

process of estimating the value of a parcel of real estate

17

Property Management: Specialization

solicit tenants, collect rent, altering or construction of new space, order repairs, and general maintenance of property.

18

Financing: Specialization

business of providing the funds necessary to complete real estate transactions.

19

Property Development :Specialization

architects, developers, dividing raw land into lots, build roads, install sewer systems.

20

Counseling: Specialization

Providing competent independent advice and guidance on a variety of real estate problems.

21

Education: Specialization

Provision of information to both the real estate practitioner and the consumer.

22

NCREC

regulatory licensing agency of the state of NC

23

National Association of Realtors (NAR) designates:

Graduate Realtors Institute ( GRI)
Certified Int Property Specialist (CIPS)
Certified Property Manager (CPM)
Accredited Buyer Representative (ABR)

24

American Society of Real Estate Counselors (ASREC) designates:

Counselors of Real Estate ( CRE)

25

Commercial Investment Real Estate Institute (CIREI) designates:

Certified Commercial Investment Member (CCIM)

26

Institute of Real Estate Management (IREM) designates:

Accredited Management Organization (AMO)
Accredited Resident Manager (ARM)

27

Realtors Land Institute (RLI) designates:

Accredited Land Consultant (ALC)

28

Society of Industrial and Office Realtors (SIOR) designates:

Professional Real Estate Executive (PRE)

29

Women's Counsel of Realtors (WCR) designates:

Leadership Training Graduate (LDG)

30

NAREB

National Association of Real Estate Brokers aka REALTISTS

31

Real Property : 5 Categories

Residential, Commercial, Industrial, Agricultural, Special- Purpose ALL a part of sales & rental markets.

32

Residential: Real Property

property used for housing

33

Commercial: Real Property

business property

34

Industrial: Real Property

warehouses, factories, power plants

35

Agricultural: Real Property

Farms, timberland, ranches, and orchards

36

Special Purpose: Real Property

churches, schools, cemetaries, gov't held lands

37

Point of Equilibrium

Where supply and demand are balanced.

38

Factors that Affect Supply

labor force
construction costs
government controls
monetary or financial policies

39

4 Stages of a Business Cycle

Expansion
Recession
Depression
Revival