RE Fundamentals CHAPTER 1: Real Estate Business Flashcards

RE Fundamentals CHAPTER 1: Real Estate Business Flashcards

The rights to use real estate. Includes, but is not limited to:-

personal residence owned in FEE SIMPLE- a LIFE ESTATE to a farm- rights to use land under a LEASE- EASEMENTS and other partial interests Real

Propertyhttps://www.investopedia.com/terms/r/real-property

.asp What will a luxurious name brand do to a property's value?- No impact on the value.- Luxury names do not attach themselves to property.- Increase the value.- Decrease the value.Increase the value.Olaf sells his real property to Betty by warranty deed. A week later, Olaf sells the same real property to Bert. Betty sues Bert to determine who the owner is. Who wins?- The winner depends on who paid more.- Bert and Betty must sell the property and divide the proceeds.- Betty. Olaf can only sell his property once. After it's gone, it's gone.- Bert.He received the last deed.Betty. Olaf can only sell his property once. After it's gone, it's gone.Otto owns real property in a rural area. He believes there's coal under his land, but doesn't have the money to pay for drilling. What can Otto do?- Nothing, underground rights cannot be separated from above-ground rights.- Sell the underground mineral rights to a mining company in exchange for a share of the coal revenue.- Nothing, owning real property doesn't include rights to what is underground.- Nothing. A person cannot dig on their own land.Sell the underground mineral rights to a mining company in exchange for a share of the coal revenue.What acronym can be used to determine if something is a fixture of moveable property?- U.S.A.- M.A.R.I.A.-

S.C.U.B.A.- R.O.Y.G.B.I.V.

M.A.R.I.A.

Is land destructible?- Yes, with enough willpower.- No.- Yes. It can be used up like oil.- No, it only exists in the abstract.term-34 No Bill, a real estate investor, is considering buying land in two places, the middle of the New York City business district and rural Oklahoma. Which is likely to be more expensive?- The same.- Oklahoma, as people don't like to be near work.- NYC, as it is highly sought after by buyers.- There is no market data to answer this.NYC, as it is highly sought after by buyers.What is the benefit of land not being liquid?- It can easily be moved and hidden.- It's almost impossible to steal.- It can be easily exchanged for other goods.- There are so many parcels just like it.It's almost impossible to steal.Real estate includes...?- Only land- Only pipes- Only buildings- Land and buildings Land and buildings

In law, land, and everything more or less attached to it.Ownership below to the center of the earth and above to the heavens. Distinguished from PERSONAL PROPERTY.Sale as REALTY.In business, the activities concerned with ownership and use transfers of physical property.Real

Estatehttps://www.investopedia.com/terms/r/realestate.asp

A use that is not permitted by the current zoning ordinances is referred to as a/an...?- Conforming use- Variance- Non-conforming use- Conventional use Non-conforming use The gas company buying the right to cross real property to install and maintain a gas line is called...?- A mortgage- An encumbrance- An easement- A nuisance An easement Which of the following locations will produce the highest home values?- In a remote mountain.- In a rural area, far from jobs- Near a commercial center with jobs.- In a very hot climate that few would enjoy.Near a commercial center with jobs.A 30th-floor condominium unit with built-in central AC is best described as...?- Crops- Real Estate- Land- Real Property Real Property When land only is listed for sale, what is included?- Only buildings on the land- Land and mobile homes on the land- Only the animals on the land- Land and everything underneath the land Land and everything underneath the land A real estate salesperson works as an ..............under their sponsoring broker.- Assistant- Consultant- Employee- Independent contractor Independent contractor A growing crop. Annual crops are generally considered to be personal property as opposed to being included as part

of the land.EXAMPLE: Abel, a tenant planted corn on

Baker's land. Three days prior to harvesting, Baker informs Abel that the land lease had expired. Abel has the right to harvest the corn.

Emblementshttps://www.investopedia.com/terms/e/emblem

ents.asp Glen wants to leave his real property to his son in his will.Can he do this?- Yes, the right to devise and inherit are among the bundle of rights.- Glen must first ask permission from his neighbors.- No. State law determines how real property passes when someone dies.- No. Only a court decides how real property passes when someone dies.Yes, the right to devise and inherit are among the bundle of rights.The privilege of gaining income from the sale of oil, gas, and other valuable resources found on land. Contrast

surface rights, air rights.EXAMPLE: Abel purchases a

property that contains underground oil deposits. He may:-

develop a system for drilling a well- sell the rights for a price to an oil company- lease the rights to an oil company in exchange for a

royaltyhttps://www.investopedia.com/terms/m/mineral-right

s.asp Mineral

Rightshttps://www.investopedia.com/terms/m/mineral-rights

.asp Generally, can a building be built to block the ocean view of an existing home?- No. The first building has the right to the view.term-10- No, not without the first house owner's permission.- No. Not without paying the first building for the blocked view.- Yes, there is no right to a view.Yes, there is no right to a view.

What is the best way to make sure the buyer and seller know what is a fixture and what is personal property?- Everything found inside the house is a fixture, so there is no cause for disputes.- The buyer should nail everything to the walls.- Go to court often to resolve disputes- The parties should be as detailed as possible in their agreement.The parties should be as detailed as possible in their agreement.2nd National Bank has a mortgage on Victor's home. Victor doesn't pay his mortgage and 2nd National Bank forecloses. The bank knows Victor has a valuable record collection in his home and wants to keep it after the foreclosure. Victor files a lawsuit. The mortgage says nothing about the record collection. The bank says it's part of the house. Who wins?- The bank. The records are emblements.- The bank. The records are a fixture.- Victor.The records are not fixtures.- The record collection is sold, and the money is divided.Victor. The records are not fixtures.Which of these is NOT part of the bundle of rights for a real property owner?- The right to lease land- The right to sell off part of your land- The right to quietly enjoy your land- The right to unilaterally annex neighboring property The right to unilaterally annex neighboring property Which of the following improvements will most likely increase a home's value?- Adding a bedroom to the house.- Adding solar panels to the property.-All of the answer choices provided are correct.- Adding a garage in the rear yard.All of the answer choices provided are correct.Same as PERSONALTY, i.e., all property that is not realty.Property that is moveable, not fixed to the land.Examples

include:- appliances not permanently attached to real

property- cash and securities- furniture and household items- mobile homes not permanently affixed to a site- vehicles Personal

Propertyhttps://www.investopedia.com/terms/p/personalpro

perty.asp Land is considered...?- A bad investment- Indestructible- Liquid- All of the answer choices provided are correct.Indestructible Because land is unique, the value of land...?- It has no relationship to value.- Increases- Decreases- There are many parcels that are exactly the same.Increases Biff is buying a house from Sloan. As they're deciding which items in the house stay and which go, they come upon a heavy table. The table can be used in any large room but has been in the house for 100 years. The contract says that all movable property is to be removed and taken by the seller. Who gets the table?- Sloan, because the table is adaptable to another setting.- Neither. The table is returned to the family that bought the table 100 years ago.-