NC Superior Real Estate School - Chapter 1 Exam

NC Superior Real Estate School - Chapter 1 Exam Chapter 1 Vocabulary: Basic Real Estate Concepts -Answer-Chapter 1 Vocabulary: Basic Real Estate Concepts Bill of Sale -Answer-Investment used to transfer the ownership of personal property to real property Chattel -Answer-Another name for personal property (Movables, which are not annexed to or part of, the land; also referred to as chattels.) Closing -Answer-The event at which the real estate contract is finally performed. (quizlet) Free Market -Answer-An economic system in which prices and wages are determined by unrestricted competition between businesses, without government regulation or fear of monopolies. (quizlet) Highest and Best Use -Answer-The legal use of a parcel of land, which when capitalized, will generate the greatest net present value of income. the use that will provide the property owner the best return on an investment over a specified time period, resulting in the highest possible present value of land Highest and best use can and does change with time → best resources to improve land, its productivity by using other resources, capital, or labor (coordinated by an expert) The use must be legal, comply with zoning, gov't reg., and legal, deed/covenant restrictions Should not be overimproved or underimproved bc this would not be an optimum or best use The one use that provides the greatest return and maximizes the value of the real estate - At any given time there is only one highest and best use and it is the use which provides the greatest return and maximizes the value of the real estate. Immobility -Answer-Physical Characteristic of Land land cannot be relocated/moved causes real estate to be a local market (individual state regulatory agencies create rules that govern their licensees) Improvements -Answer-Additions or repairs such as pools, fences, driveways, etc. Indestructibility -Answer-Physical Characteristic of Land AKA Permanence land cannot be destroyed Land Use Controls -Answer-Public or private restrictions on how land may be used (e.g., zoning). (quizlet) Listing Contract -Answer-An employment agreement between an owner and broker defining the duties and rights of both parties. (Unilateral contract) (quizlet) Nonhomogeneity -Answer-Physical Characteristic of Land AKA Uniqueness no two parcels are identical (view, soil, vegeta., drainage, etc.) Even when there are two nearly identical properties there are still variations Basis for the legal remedy of specific performance Offer to Purchase and Contract -Answer-In NC, the most common title for a real estate sales contract. 1 contract that serves 2 purposes, offer to purchase AND contract and can be used as an offer to sell too. All the sellers signatures need to be on this contract. Full legal names and relationship, Fred G. Flintstone and wife, Wilma Q. Flintstone. Property description can be obtained through Deed. A bilateral enforceable contract for the sale of real property. (quizlet) Personal Property -Answer-Movables, which are not annexed to or part of, the land; also referred to as chattels. Everything not land or permanently attac