Colibri Unit 1 Flashcards

Colibri Unit 1 Flashcards List four industries that are indirectly linked to real estate activities.Builders, building suppliers, carpet manufacturers, appliance sales Define the "right to use" and describe its limitations.The right to use a property refers to the right to use it in certain ways, such as mining, cultivating, landscaping and building on the property. The right is subject to the limitations of local zoning and the legality of the use. One's right to use may not infringe on the rights of others to use and enjoy their property.What is an anchor tenant and why is one critical to a retail center?This is the main tenant at the shopping center and one that most lenders require before agreeing to financing for the center.In a market economy, what are the primary interaction between supply, demand, and price?If supply increases relative to demand, price decreasesIf supply decreases relative to demand, price increasesIf demand increases relative to supply, price increasesIf demand decreases relative to supply, price decreases What is the distinction between real and personal property?Real property is permanently attached to the land or to structures attached to the land whereas personal property is not.List at least 6 types of real estate real property and the uses for each.Residential - human livingCommercial - generating incomeInvestment - held by owners for investment purposes, usually not owner occupiedIndustrial - warehouses, factories, etc.Agricultural - growing crops and raising livestockSpecial purpose - doesn't fall into other

categories: churches, hospitals, schools, etc.; could be

parks, shorelines, etc.Unimproved or undeveloped land - no buildings or residents What five economic characteristics affect the value of land in the marketplace?Demand Utility or usefulness Scarcity Transferability Situs What is the difference between littoral rights and riparian rights?Littoral rights concern properties that border bodies of water that are not moving.Riparian rights concern properties that border moving water such as streams and rivers.Discuss how the right of possession determines what kind of estate or interest a party has in real estate.If the interest-holder enjoys the right of possession, the estate is an estate in land. If the interest-holder does not have the right of possession, the interest is an encumbrance in the case of a private interest-holder, or some form of public interest in the case of a non-private (i.e., governmental) interest-holder.List and describe the five types of office buildings by size and architecture.Research and Development - 1-2 stories with 50% office or lab space and the rest workshops, storage, or light manufacturingLow-rise - 1-3 stories with no elevatorGarden

office - 1-5 stories with extensive landscapingMid-rise - 4-15 stories with one elevatorHigh-rise - more than 15 stories with multiple elevators, not considered skyscrapers

What is a tract home?A home that is built to a certain set of guidelines used for a particular subdivision What is an emblement and is it real or personal property?Plants or crops that require human intervention and labor are emblements and are personal property.What are the unique traits or distinguishing features of real estate?inherent product value, unique appeal, demand must come to the supply, cannot always be sold for cash, slow to respond to market changes, local market If residential properties are defined as providing dwelling places for individuals or families, are hotels and motels considered residential properties? Why or why not?No, hotels and motels are not residential properties because they are considered to be only temporary housing.What are the essential characteristics of fee simple defeasible estates?The property must be used for a certain purpose or under certain conditions.If the use changes or if prohibited conditions are present, the estate reverts to the previous grantor of the estate.What is the purpose for licensing real estate professionals?To protect the public What rule should brokers follow to ensure they are acting ethically?Do unto others as you would have them do unto you.Name the two types of life estates and briefly explain the difference.Conventional life estate - created by a grant wherein the property owner grants the property to a life tenantLegal life estate - created by state law wherein the rights of surviving family members are protected when the husband or wife dies Name seven factors that influence supply of real estate.Availability of skilled labor, availability of construction loans and financing, availability of land, availability of materials, investment returns, the community's master plan, government regulation and police power What are the three major indicators in the real estate market and how are they read?Vacancy rates - too high means too little movement; too low means demand is high and prices are low.Price/sales information - how much property has sold and at what price indicates how the market is functioningBuilding permits - indicates new construction; the more new construction, the better the market What is the difference between a warehouse property and a manufacturing property?A warehouse property focuses on storage and distribution of goods.Manufacturing buildings are large facilities designed to accommodate the equipment for various manufacturing processes.List five organizations for real estate professionals.National Association of REALTORS®Indiana Association of REALTORS®Indiana Commercial Board of REALTORS®Women's Council of REALTORS®Real Estate Buyers Council The fee simple freehold estate is called the highest form of ownership interest, even though a fee simple defeasible carries some restriction on usage. Why are other estates less desirable?With all other estates in land-- life, leasehold-- the holder of the estate cannot control what happens to the estate in the future. The life estate reverts or is remaindered; the leasehold terminates when the lease expires.

List five sources of financing for real estate buyers.Banks, savings and loans, credit unions, insurance companies, sellers of property, mortgage bankers, and mortgage brokers What is real estate farming?Specializing in one particular geographic area or property type.What is the difference between tangible and intangible property, and how do each apply to real and personal property.Tangible is physical, visible, and material while intangible is abstract with no physical existence.All real property is tangible, but personal property may be either tangible (computers, furniture, cars) or intangible (trademarks, copyrights, listing agreements).What is the main requirement within the Statute of FraudsAll contracts must be in writing to be enforceable.What is the highest form of ownership interest one can acquire in real estate and why?Fee simple estate. It includes the complete bundle of rights and the tenancy is unlimited.Define real estate brokerage and list three organizations that cannot be registered as a real estate brokerage.A business which brings interested parties together to sell, lease, and rent or exchange real property.A joint venture temporary relationshipA business trust investment group for its own purposesA homeowners association How does a fee simple absolute estate differ from a fee simple defeasible estate?While defeasible estates restrict the property to a certain purpose or to be used under certain conditions, in an absolute estate, the property is not conditioned by stipulated or restricted uses.What is used to identify a property?Legal description List three ways the state government plays a role in real estate.Licensing for real estate professionalsRecording of deeds, transfers of propertyEstate taxes What primarily distinguishes freehold estates from leasehold estates?Whether an estate in land is a freehold or leasehold estate depends on the length of time the holder may enjoy the right to possess the estate, the relationship of parties owning the estate, and specific interests held in the estate.The duration of the owner's rights in a freehold cannot be

determined: they may last for a lifetime, for less than a

lifetime, or for generations beyond the owner's lifetime. In a leasehold, they have a specific duration, as represented by the lease term.List and describe six types of retail centers. Strip centers - usually have a convenience store, dry cleaner, beauty salon, or small restaurant; up to about 30,000 sq feet.Neighborhood centers - usually have supermarket, drugstore, shipping store; up to about 60,000 to 100,000 sq feet.Malls - complex of shops with walkways and parking areas; could be enclosed or coveredRegional centers - anchored by 1 or 2 department stores of at least 50,000 sq feet; include clothing, furniture storesMega malls

• super regional centers with about 1 million sq feet and 3

or more department storesOutlet centers - specialty center for specific manufacturers at a discount