Chapter 1: Basic Real Estate Concepts Flashcards Preview

NC Real Estate Pre-Licensing > Chapter 1: Basic Real Estate Concepts > Flashcards

Flashcards in Chapter 1: Basic Real Estate Concepts Deck (32)
Loading flashcards...
1

Real Property/Real Estate/Realty

Land and everything that is attached to it. Immobile, indestructible, unique

2

What is the document used to transfer real property?

Deed

3

Deed

A written instrument that transfers an interest in real property when signed by a grantor and delivered to the grantee.

4

Personal Property/Chattel/Personalty

All property that is not real property or attached to it. Readily movable.

5

What is the document used to transfer personal property?

Bill of Sale

6

What are the physical characteristics of real property?

- Immobile
- Indestructible
- Unique/non-homogeneous/heterogeneous

7

Immobility, indestructibility, and non-homogeneity are __________ of real property.

physical characteristics of real estate

8

Immobility

Land cannot be moved from one location to another. Physical characteristic of real estate

9

Indestructibility

Land is a permanent commodity and cannot be destroyed. Physical characteristic of real estate

10

Non-homogeneity

AKA uniqueness or heterogeneity. No two parcels are the same. Physical characteristic of real estate

11

What are the economic characteristics of real property?

SLIP

- Scarcity
- Location
- Improvements
- Permanence of investments

12

Scarcity, location, improvements, and permanence of investment are __________ of real property.

economic characteristics of real estate

13

Scarcity

The physical supply of land does not change and cannot be adjusted to meet demand. Economic characteristic of real estate

14

Location

Most important economic characteristic of real estate

15

Improvements

Any permanent fixtures to or on the land such as roads, fences, or naturally growing things. Economic characteristic of real property

16

Situs

Societal and economic factors tied to the location of the land

17

How is real estate always regulated?

Based on the state laws where the land is located

18

Highest and Best Use

The use that provides the best ROI to the owner and the highest possible present value of land.

19

What form of land use controls exist?

1) Public
2) Private
3) Governmental

20

Public land use controls

Zoning laws, building codes, environmental control laws

21

Private land use controls

Conditions, covenants, and restrictions (CCR's)

22

Governmental land use controls

Public buildings and parks, watersheds, roads, military installations

23

Zoning laws, building codes, and environmental restrictions are forms of local land use control known as

Public land use controls

24

Conditions, covenants, and restrictions (CCR's) are examples of which land use control?

Private land use controls

25

Military bases and schools are examples of which land use control?

Governmental land use controls

26

REALTOR®

A LICENSEE who is a member of the National Association of Realtors

27

What are the categories of real estate?

1) Residential (1-4 units)
2) Commercial
3) Industrial
4) Agricultural
5) Special Purpose (churches, schools, airports etc)

28

Free market

A market in which the buyer and seller negotiate a purchase and sale without undue pressure, urgency, or outside influence other than the law of supply and demand

29

Factors affecting supply

- Labor
- Government controls
- Costs

30

Labor, govt controls, and costs are factors that are affecting __________.

Supply