AYOP Principles of Real Estate 1
Fixity - answer land and buildings and other improvements to land require long periods
of time to pay for themselves (investment permanence)
Situs - answer location preference from an economic standpoint rather than
geographical
Economic Characteristics of Land - answer scarcity, modification, fixity, situs
3 physical characteristics of land - answer on-homogeneity, immobility, and
indestructibility
Texas Real Estate License Act - answer Passed in 1949 and created TREC. It consists
of 9 members, 6 Brokers & 3 General public members; appointed by the governor and
approved by 2/3 of the senate present
5th Amendment - answer states that a citizen cannot have property taken from them
w/o due process of law or just compensation
Ordinance - answera local law
Capital Gains Tax - answera tax levied on the returns that people earn from capital
investments, like the profits from the sale of stocks or a home
Fair Housing Act - answerThe federal law that prohibits discrimination in housing based
on race, color, religion, sex, handicap, familial status, and national origin
Real Estate Settlement Procedures Act (RESPA) - answerFederal law that ensures that
residential buyers and sellers receive full disclosure of all settlement charges
National Association of Realtors - answerlargest trade group, founded in 1908
Methods of Property Valuation - answerAssessed value, estimated sales value,
investment value, replacement value
Assessed Value - answerValue established for tax purposes by local
municipalities(market value)
Estimated Sales Value - answerfound by examining sales prices of comparable
properties recently sold in the area
Investment Value - answerthe value of the property to a particular investor
, Replacement Value - answeramount it would cost to replace a property(insurable value)
Liquidation Value - answeran estimated amount that could be gained if the property was
quickly sold in a low-demand market(auction, foreclosure)
What affects demand? - answerpopulation, employment/wages, and demographics
The Business Cycle - answerExpansion, recession, depression, and revival
6 Categories of Real Estate - answerResidential, commercial, industrial, mixed-use,
agricultural, special purpose
Real Property - answerimmobile
Personal Property - answermobile
Fixtures - answerpersonal property that becomes real property once attached to land or
structure. Must look at attachment, adaptation, and intention of the installer.
Emblements - answerannually planted crops that belong to the tenant(not owner), part
of real estate when selling
Severance - answerthe action of ending a RE relationship, removing anything attached
to land, or when gov. uses eminent domain
Trade Fixtures - answerPersonal property(booth, bars, etc.) used in a business and can
be removed by the lessee when the lease terminates.
manufactured home - answera housing unit that is fully or partially assembled in a
factory before being moved to the living site, personal property unless attached to land
Fee Estate - answerAn indefinite, exclusive and absolute legal ownership interest in a
parcel of real estate
Key Elements of Location - answeremployment, culture, governmental structures, social
services, transportation
Condominium Concept - answeran individual can own airspace on a piece of land that
someone else owns, common elements are divided interest
Co-Operative - answeran organization that is owned by members and customers, who
pay an annual membership fee and share in any profits
Fixity - answer land and buildings and other improvements to land require long periods
of time to pay for themselves (investment permanence)
Situs - answer location preference from an economic standpoint rather than
geographical
Economic Characteristics of Land - answer scarcity, modification, fixity, situs
3 physical characteristics of land - answer on-homogeneity, immobility, and
indestructibility
Texas Real Estate License Act - answer Passed in 1949 and created TREC. It consists
of 9 members, 6 Brokers & 3 General public members; appointed by the governor and
approved by 2/3 of the senate present
5th Amendment - answer states that a citizen cannot have property taken from them
w/o due process of law or just compensation
Ordinance - answera local law
Capital Gains Tax - answera tax levied on the returns that people earn from capital
investments, like the profits from the sale of stocks or a home
Fair Housing Act - answerThe federal law that prohibits discrimination in housing based
on race, color, religion, sex, handicap, familial status, and national origin
Real Estate Settlement Procedures Act (RESPA) - answerFederal law that ensures that
residential buyers and sellers receive full disclosure of all settlement charges
National Association of Realtors - answerlargest trade group, founded in 1908
Methods of Property Valuation - answerAssessed value, estimated sales value,
investment value, replacement value
Assessed Value - answerValue established for tax purposes by local
municipalities(market value)
Estimated Sales Value - answerfound by examining sales prices of comparable
properties recently sold in the area
Investment Value - answerthe value of the property to a particular investor
, Replacement Value - answeramount it would cost to replace a property(insurable value)
Liquidation Value - answeran estimated amount that could be gained if the property was
quickly sold in a low-demand market(auction, foreclosure)
What affects demand? - answerpopulation, employment/wages, and demographics
The Business Cycle - answerExpansion, recession, depression, and revival
6 Categories of Real Estate - answerResidential, commercial, industrial, mixed-use,
agricultural, special purpose
Real Property - answerimmobile
Personal Property - answermobile
Fixtures - answerpersonal property that becomes real property once attached to land or
structure. Must look at attachment, adaptation, and intention of the installer.
Emblements - answerannually planted crops that belong to the tenant(not owner), part
of real estate when selling
Severance - answerthe action of ending a RE relationship, removing anything attached
to land, or when gov. uses eminent domain
Trade Fixtures - answerPersonal property(booth, bars, etc.) used in a business and can
be removed by the lessee when the lease terminates.
manufactured home - answera housing unit that is fully or partially assembled in a
factory before being moved to the living site, personal property unless attached to land
Fee Estate - answerAn indefinite, exclusive and absolute legal ownership interest in a
parcel of real estate
Key Elements of Location - answeremployment, culture, governmental structures, social
services, transportation
Condominium Concept - answeran individual can own airspace on a piece of land that
someone else owns, common elements are divided interest
Co-Operative - answeran organization that is owned by members and customers, who
pay an annual membership fee and share in any profits
