FEE SIMPLE Absolute ownership. The greatest interest that one can

CHAPTER 1 REAL ESTATE Flashcards FEE SIMPLEAbsolute ownership. The greatest interest that one can have in real property. An estate that is without restriction, of indefinite duration, freely transferable and inheritable.OBLIGATORY ADVANCESLender agrees to advance a portion of the funds at stated intervals as the construction progresses.chapter 1 basicChapter 1 - Basic Real Estate1. Supply When supply increases, prices drop.2. Highest and Best Use will give the owners the greatest return on their investment.3. Types of Real Estate Characteristics Economic and physical4.Personal Property All property that is not real property.5.Business Cycles Fluctuations in business activity. Primarily

caused by: population growth, taxes, interest rates, wars

and oil embargoes.6. Real Property Land, improvements, interests, benefits and rights inherent in real estate ownership.7. Situs The personal preference of people for one location over another, not necessarily based on objective facts and knowledge.8. Provisional Broker Works on behalf of the Broker.9. Land Earth's surface extending down to earth surface, upward to infinity.10.Non-homogeneity A lack of uniformity; dissimilarity; heterogeneity. Because no two parcels of land are exactly alike11. Economic Characteristics of Real Estate

LIPS:Location or

SitusImprovementsPermanenceScarcity12. Factors Affecting Supply - Labor force availability- Construction

and material costs- Governmental Controls: building codes,

environmental restrictions, land use, zoning- Governmental financial policies that impact interest rates and money supply.13. Physical Characteristics of Real Estate

UII:UniqueImmobileIndestructible14. Chattel Items of

Personal property, or personality, that do not fit into the definition of real property; moveable objects. Tangibles.15.Personality Personal property. Chattels.16. heterogeneity Uniqueness of land; Same as non homogeneity;17. Real Estate Land plus all things permanently attached to it, whether nature and man-made improvements.18. Business Cycle Stages Expansion, recession, depression and revival.19. Factors Affecting Demand - Population- Demographics- Employment & wage levels20. Market Place where goods are bought and sold.21. Demand When Demand INCREASES, prices RISE. Amount of

goods and services people are willing to buy at a given price.1. heterogeneity Uniqueness of land; Same as non homogeneity;2. Factors Affecting Supply - Labor force availability- Construction and material costs- Governmental

Controls: building codes, environmental restrictions, land

use, zoning- Governmental financial policies that impact interest rates and money supply.3. Business Cycles

Fluctuations in business activity. Primarily caused by:

population growth, taxes, interest rates, wars and oil embargoes.4. Real Property Land, improvements, interests, benefits and rights inherent in real estate ownership.5. Provisional Broker Works on behalf of the Broker.1. Factors Affecting Supply - Labor force availability- Construction and material costs- Governmental

Controls: building codes, environmental restrictions, land

use, zoning- Governmental financial policies that impact interest rates and money supply.2. heterogeneity Uniqueness of land; Same as non homogeneity;3.Business Cycles Fluctuations in business activity. Primarily

caused by: population growth, taxes, interest rates, wars

and oil embargoes.1. heterogeneity Uniqueness of land; Same as non homogeneity;2. Factors Affecting Supply - Labor force availability- Construction and material costs-

Governmental Controls: building codes, environmental

restrictions, land use, zoning- Governmental financial policies that impact interest rates and money supply.