Physical and economic characteristics of real property Flashcards

Physical and economic characteristics of real property Flashcards LandThe earth's surface, extending downward to the center of the earth and upward to infinity including things permanently attached by nature, such as trees and water.Includes the minerals and substances below the earth's surface together with the airspace above the land up to infinity.Fixed Total SupplyEven though a considerable amount of land is not inhabited, the supply of land in a given location ( ocean front) or of a particular quality may be limited creating increased demand for that specific land.ImmobilityIncapable of being moved; fixed in location, such as land.indestructibility of real estateDurable and permanent, permanence of land coupled with the long term nature of the improvements placed on it has tended to stabilize investments in land. However, while land is indestructible, the improvements on it depreciate and can become obsolete thereby reducing values perhaps drastically.Permanence of investmentthe investment of making improvements should be long term and relatively stable LocationArea preference or people's choices and tastes regarding a given area. One of the most important economic characteristics of land.ScarcityAlthough land is not thought of as a rare commodity, it's total supply is fixed.Improvements on the landAny fixed structures such as buildings, fences, walls, and decks.Improvements to the landExcavation and fill, Sewers and other utilities, Roads and driveways Improved landLand with man-made alterations such as streets, utilities, sewers.ImprovementsBuildings, roads, and other additions to land that increase its value.Real estateLand at, above , and below the earth's surface, including all things permanently attached to it, whether natural or artificial. Broader term than land. Includes not only the physical components of the land provided by nature but also human made permanent improvements on and to the land.uniquenessnonhomogeneity SitusTakes into consideration social factors and economic factors

Economic Characteristics of Real EstateScarcity, Location, Imporvements, Permanence of Investment Physical characteristics of real estate- Immobility- Indestructibility- Nonhomogeneity or uniqueness doctrine of specific performanceAction taken by a party who is harmed by the breach of a real estate contract.ParcelA specific tract of land