FINC 371 - Exam 1 (Peterson) Anapaula
Questions & Answers 100% Correct
What is Real Estate? - ANSWERLand + Improvements
Improvements = Anything reasonably permanently attached/affixed to land.
What are the 6 most important things in Real Estate? - ANSWERLocation, Location,
Location
Timing, Timing, Timing
Real Estate
Special Characteristics - ANSWER1. Fixed Location
2. Uniqueness
3.Interdependence of land uses
4. Long life
5. Long-term commitments
6. Large transactions
7. Long gestation period
4 Main Sectors of Real Estate - ANSWER1. Residential
2. Commercial
3. Industrial
4.Ranch/Agriculture
Real Property - ANSWER- All interests, benefits, and rights inherent in the ownership of the
real estate
- Estate is a right or interest in real estate
- "Bundle of Rights" - Right to use, sell, lease, enter, give away, etc.
- When transferred, a written document must be prepared
Title - ANSWEROwnership rights to real property
(Actual Ownership)
,Deed - ANSWERDocument used to convey right from one property to another
(Document showing ownership)
Residential Real Estate - ANSWER1. Single Family Attached
- Duplex/ Quad-plex
- Apartment Complex (No Ownership)
- Rowhouse
- Condominium (Ownership Structure)
2. Single Family Detached
- Single Family Residence "Home"
- Patio Home
- Zero Lot Line Home
Ranch/Agricultural Real Estate - ANSWER1. Recreational
2. Land
3. Cattle Production
4. Farmland
5. Wildlife Refuge
6. Wetlands
- Mitigation Credits
4 Factors of Production in Economics - ANSWER1. Land
2. Labor
3. Capital
4. Entrepreneurship
, 3 Economic Attributes of Land - ANSWER1. Durable
2. Finite
3. Useful
Real Estate - ANSWER- Is the physical land and appurtenances (improvements or buildings)
affixed to the land
- Immobile and Tangible
- Natural part of land
- Building and site
- All permanent buildings attachments (fixtures)
- Attachments above and below ground
Lease - ANSWERConveys the rights of use and possession of the real property under the
agreed upon terms
(Ownership is not transferred)
Testing for Fixture Status (3) - ANSWER1. Test of Intent of the Parties
2. Test of Attachment
3. Test of Adapability
Test of Intent of the Parties - ANSWERIntention of the party who attached the item
* Best to have it written in Real Estate Contract *
Test of Attachment (2) - ANSWER1. Manner in which item is affixed
2. Can it be removed without serious injury to real estate?
Test of Adaptability (2) - ANSWER1. Character of item and its adaption to the real estate
2. Would its removal alter the usefulness of the real estate?
Air Rights - ANSWERReal property rights to the space above the earth's surface
- Pie Shaped
- Transferable
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