Chapter 1 - Intro

Question 1

What does avulsion refer to?

Answer 1

The sudden removal of land by act of nature.

Question 2

What is the term for gradual and imperceptible wearing away of land?

Answer 2

Erosion

Question 3

Name the five types of real property.

Answer 3

Residential, Commercial, Industrial, Agricultural, and special purpose.

Question 4

What can ‘special purpose’ real estate be used for?

Answer 4

Churches, schools, cemeteries, and government-held lands.

Question 5

Labor force and construction costs, governement controls, and governmental financial policies can effect?

Answer 5

Supply in the real estate market.

Question 6

What are three factors that can effect demand?

Answer 6

Population, Demographics, and employment + wage levels.

Question 7

Land at, above, and below the earth’s surface, plus all things attached to it is defined as what?

Answer 7

Real Estate

Question 8

What does the term ‘Real Property’ refer to?

Answer 8

Bundle of legal rights. The interests, benefits, and rights included in the ownership of land and real estate.

Question 9

Which two characteristics govern how the market reacts to the pressures of supply and demand?

Answer 9

Uniqueness and Immobility

Question 10

How do local goverments influence supply?

Answer 10

Land-use controls, building codes, and zoning ordinances.

Question 11

What is the definition of “land”?

Answer 11

The earth’s surface extending downward to the center of the earth and upward to infinity.

Question 12

How do the definitions of land and real estate differ?

Answer 12

In addition to the natural land, real estate also includes all human made improvements.

Question 13

What is included in the ‘bundle of legal rights’? (DEEPC)

Answer 13

Disposition
Enjoyment
Exclusion (keep people off your property)
Posession
Control

Question 14

What do the terms chattel, emblements, and personalty all refer to?

Answer 14

Personal Property

Question 15

Severance

Answer 15

Changing Real Property into Personal Property

Question 16

Annexation

Answer 16

Changing Personal Property into Real Property

Question 17

Fixtures

Answer 17

Personal Property that has been affixed to land or a building.

Question 18

Trade fixture

Answer 18

Personal Property of a business owner

Question 19

When must trade fixtures be removed?

Answer 19

On or before the last day the property is rented.

Question 20

Scarcity, Improvements, Permanence of Investment, and Location are ______ characterstics of real esate.

Answer 20

Economic characteristics

Question 21

Immobility (location never changes), Indestructibility, and Uniqueness are ______ characteristics of real estate.

Answer 21

Physical characteristics

Question 22

As a mortgage is paid off, what happens to equity?

Answer 22

Increases

Question 23

What percentage of the replacement cost does home insurance cover?

Answer 23

80%

Question 24

How much capital gains exemption is a single person entitled to?

Answer 24

$250k

Question 25

What type of property are plants considered to be?

Answer 25

Personal Property.

Question 26

Situs (re: economic characteristics)

Answer 26

Area of preference (latin for site)

Question 27

What is a homeowner entitled to write off on their taxes?

Answer 27

Real estate taxes, interest, and capital gains

Question 28

How much capital gains exemption is a married person entitled to?

Answer 28

$500k

Question 29

How many years must you live on a property in order to file a capital gains exception?

Answer 29

2 years

Question 30

How many days do you have to identify a property in order to deter capital gains?

Answer 30

40 days

Question 31

How many days do you have to close on a property in order to avoid capital gains? (deferment)

Answer 31

120 days