Unit 2 Summary Flashcards
(13 cards)
What does the term ‘land’ include?
Earth’s surface, mineral deposits under the earth, air above the earth
This definition expands beyond the common perception of land as just the surface.
What is the definition of ‘real estate’?
Land and all natural and man-made improvements attached to it
Real estate encompasses both the physical land and any developments on it.
What does ‘real property’ refer to?
Real estate plus the bundle of legal rights associated with ownership
The concept of real property includes the rights a buyer acquires with the purchase.
What is meant by ‘bundle of rights’ in real estate?
Legal rights to use the land in certain ways
This term originates from the historical transfer of land rights in England.
Can different parties own various rights to the same parcel of real estate?
Yes
For example, surface rights, air rights, and subsurface rights can be owned by different individuals.
What is classified as personal property?
Property that does not fit the definition of real estate
Personal property is also referred to as chattels.
What are fixtures in real estate?
Articles of personal property attached to real estate
Fixtures are considered part of the real estate.
What are trade fixtures?
Personal property attached to real property by a tenant for business purposes
Trade fixtures remain the tenant’s personal property and can be removed at lease end.
What are the economic characteristics of land?
- Scarcity
- Improvements
- Permanence of investment
- Location
These characteristics influence land as an investment.
What are the physical characteristics of land?
- Immobility
- Indestructibility
- Uniqueness
These traits distinguish land from other types of property.
What 7 types of laws govern real estate transactions?
- U.S. Constitution
- State constitutions
- State statutes
- Laws passed by Congress
- Regulatory agency rules
- Local ordinances
- Common law
These laws create a complex legal framework for real estate transactions.
Do all states and Canadian provinces have licensing requirements for real estate practitioners?
Yes
All 50 states, the District of Columbia, and all Canadian provinces require some form of licensing.
What is the obligation of real estate licensees regarding laws?
To be familiar with real estate laws and licensing requirements in their practicing states
This ensures compliance and informed practice in real estate transactions.
