Characteristics of land Flashcards

Characteristics of land Flashcards Let's say Kevin's property borders a river. During a massive rainfall, the river floods and washes away tons of the soil from the banks of Kevin's property. Kevin's sudden loss of land is called Avulsion Avulsion is caused bywater the relative difficulty of converting an asset to cash without loss of value.Illiquidity Let's say your property is on a lakefront in an area suffering through a 10-year drought. Chances are the lake's water level has gone down during the drought, making your property's landmass larger. what is this an example of?Reliction - a gradual increase in land area when water gradually withdraws.Let's say you live in a very small town but decide to move to Atlanta. When you move, you find that property prices in downtown Atlanta are much higher than they were in your hometown. This is partially due to....Scarcity Earl just accepted a job overseas and has to report in one month. Broker Jane tells Earl they can likely sell his home by then, but the selling price will probably be adversely affected by trying to convert to cash quickly. What economic characteristic of land is being addressed here?Illiquidity The natural forces that bring about additions in soil to one property often cause loss of soil to another property in the same event. For example, if the Wet River floods and soil is lost at the mouth of the river, the soil still exists, right? It will have to land somewhere, resulting in what Accretion T/F - there are both natural and physical characteristics that can affect the value of land true Let's say a buyer wants to move from a rural area to a home in a nearby city because the city has a strong local economy with plenty of job opportunities. This buyer is influenced by whT SITUS The cost of real estate in a metropolitan area has gone up dramatically over the past year because an increasing number of people has been moving to that area, and there are only a finite number of parcels of land that are close to

the downtown area. This is an example of:

Scarcity What are the natural factors that can affect the physical characteristics of land AccessionAccretionErosionRelictionAvulsion the soil that gets deposited in accretion alluvion One way land is special and separate from personal property is that it has three unique physical characteristics.

They are:

Indestructibility - you cannot destroy itImmobility - you can't pack it up and take it with youNon-homogeneity (or

heterogeneity) - no two pieces of land are the same. each piece of land occupies a different space on earth the economic characteristic that informs the economic principle of supply and demand.Scarcity refers to the fact that real estate exists in a fixed location and cannot be moved.Fixity, or investment permanence, the process that results in the gradual increase in land area through deposits of soil by natural forces.Accretion the sudden loss of land by flood or when a stream or river changes course Avulsion the gradual loss of land over time. This most often happens when bodies of water wash away bordering land.Erosion what are the factors that affect land's value? - physical characterisitics-natural characteristics- economic characteristics what are the economic characteristics that can affect the value of land ScarcitySitusModificationFixityIlliquidity Why is fixity (or investment permanence) important to people who invest in real estate?In contrast to investments in personal property, investing in real estate tends to take a lot more money upfront and takes a long time to pay off - it's not a liquid asset. It can't be packed up and moved or quickly converted to cash.Because of fixity, investors must carefully analyze the long-term nature of owning property.refers to the fact that the value of land can be affected by human-made changes to the land modification or improvability Let's say Alea's land had a house built on it, was flooded, and was then hit by a meteor. After all these events, her land still existed. It was a little bumpy and soggy, but it still existed.What trait has Alea's land so valiantly exhibited?Alea's land showed how it's indestructible, just like all land what does the economic characteristic situs take into consideration?it takes the preferences that people have for certain areas.Situs takes into account not only the geographical location of property but also the economic qualities of that area that make it more or less desirable Let's say strawberry plants sprout in your backyard. You didn't plant them, but you still have the right to pick them, eat them, or make them into strawberry shortcake. what is this an example of Accession you just sold a home in the country to a couple. After a massive flood (it rained for nine days straight!) the river a few acres over broke through a dam and changed course - running right through the couples' property. have they lost title?no - the client has experienced avulsion & because the loss was sudden, no title is lost what is the best way to determine the difference between accretion & avulsion?t ultimately depends on the definition of words like "sudden" and "gradual, to the economic significance of a property's location.Situs

the natural factor that is the right to all that one's own property produces, including that which is added, either naturally or by human action, to the property already owned. This often comes into play when dealing with crops.Accession