Missouri Real Estate Broker Exam 2023

Heterogeneity or Nonhomogeneity - ANSWER-Every parcel of land is different Immobility - ANSWER-Location of a parcel of land can never be changed Durable - ANSWER-Refers to land that is indestructible, meaning improvements can depreciate or be destroyed, but the land still remains Scarcity - ANSWER-When supply is limited, the price will increase Improvements - ANSWER-May increase or decrease the value of the property Permanence of Investment - ANSWER-Refers to the capital and labor used to develop a large fixed investment (water lines, sewage systems, electric, roads) Area preference or situs - ANSWER-location of the property and is based on factors such as reputation, aesthetic beauty (river view) geography and convenience. People will pay more for location. Emblements - ANSWER-Trees, grasses and perennial shrubbery that does not require annual culvitavion are considered real property (fruits of nature) Are house keys real property or personal? - ANSWER-Real because of their adapted use to the property Depreciation - ANSWER-causes loss of property value Curable Depreciation - ANSWER-reasonable and economically feasible to correct Incurable Depreciation - ANSWER-Not economically feasible to correct Physical Depreciation - ANSWER-May be curable or incurable and is caused by lack of maintenance and ordinary wear and tear Functional obsolescence - ANSWER-May be curable or incurable and occurs because of poor floor plan, outdated items, or changes in technology (examples - a low ratio of bathrooms to bedrooms; older home with few electrical outlets; new home built with one-car garage) External Obsolescence - ANSWER-Incurable and occurs because of factors located outside the property. Also known as Economic, Locational, or Environmental Obsolescence. Examples: nearby nuclear power plant or pig farm, or rising interest rates Plottage - ANSWER-Value is created when two or more tracts of land are merged into a single, larger one Assemblage - ANSWER-The process of merging the parcels of real estate Anticipation - ANSWER-Value of property will adjust with anticipation of change within the community - zoning from residential to commercial; expansion of airport DUST (elements of value) - ANSWER-Demand - number of properties that people are willing and able to buy at a given price Utility - how has the land and improvement been utilized Scarcity - when supply is limited, the price will increase Transferability - there must be a good and marketable title to the property Front Footage - ANSWER-linear measurement of a property along the street line or water line Livable Area - Finished area - ANSWER-suitable for year-round use Livable area - Unfinished area - ANSWER-Not suitable for year-round use Section - ANSWER-1 mile x 1 mile, 640 acres Township - ANSWER-6 miles x 6 miles or 36 sections Check - ANSWER-24 miles by 24 miles (largest) Brownfield or Brownfield Site - ANSWER-real property for which development is complicated by crap that occurred there which left pollutants, illegal drug labs, abandoned gas stations, former dry cleaners Private Deed Restrictions - ANSWER-Developer places these on real estate to control and maintain the desirable quality and character of a subdivision or property Police Power - ANSWER-Right of the government to regulate for the purpose of promoting the health, safety and welfare of the public (zoning and building codes) Eminent Domain - ANSWER-Right of the govt or quasi-govt to take your property but must provide just compensation Condemnation - ANSWER-Right of govt to take property and will provide just compensation