N.C. Real estate pre-licensing exam with correct answers 100%

N.C. Real estate pre-licensing exam with correct answers 100% Real property -Answer-Land & everything that is permanetly attached to the land & everything that is appurtenant to the land Personal property (personalty) -Answer-All propery that doesn't fit the definition of real property. CHATTLES are moveable Land -Answer-The earth's surface extending downwards to the center of the earth & upward to infinity Real estate (realty) -Answer-Land at, above, or below the earth's surface, including all things permanently attached to it, whether artificial or natural Real property -Answer-The land itself, the improvements there on, & the interests, benefits, & rights inherent in the ownership of real estate Economic characteristics of real property -Answer-Scarcity Location Improvements Permanence of investment (SLIP) Physical characteristics of real property -Answer-Immobility Indestructibility Uniqueness Improvement ON the land -Answer-Improvements of a private nature (i.e. house, pool) Improvements TO the land -Answer-Improvements of public nature (i.e. sidewalks, parks, streets) Highest & best use -Answer-The use that will give the owners the greatest actual return on their investment Broker -Answer-Acts as an agent who negotiated the sale, purchase or rental of property on behalf of others for a fee/commission Categories of real estate -Answer-1)residential 2)commercial 3)industrial 4)agricultural 5)special purpose Point of equilibrium -Answer-Point when supply & demand are balanced Bundle of Legal Rights -Answer-Disposition Enjoyment Exclusion Possession Control (DEEP C) Appurtenance -Answer-A right or privilege that goes w/ ownership of the land (includes mineral/subsurface, air & water rights) Surface rights -Answer-The rights to use the surface of the earth Subsurface rights (mineral rights) -Answer-The rights to use the space below ground level & to extract the natural resources lying below the earth's surface Air rigts -Answer-Rights to use the air above the land Riparian rights -Answer-Non-navigable bodies of water bordering owner's land, has rights to middle of water Littoral rights -Answer-Navigable bodies of water w/ a tide owners have rights to the mean high water mark Foreshore -Answer-The strip of land btwn high & low tide. Owned by the state of N.C. Accretion -Answer-A gradual increase in land from the deposit of soil by the water Reliction -Answer-Water gradually recedes or disappears permanently; new land is gained Erosion -Answer-Loss of land due to nature over time. Cannot reclaim land Avulsion -Answer-Loss of land due to a catastrophic act of nature. Can potentially be reclaimed by owner. Lateral support -Answer-The right to have adjacent property support the natural boundaries of the land Subjacent support -Answer-When a land owner severs subsurface rights, whoever obtains them must ensure surface support of the landowner's property is maintained Manufactured home (mobile homes) -Answer-Built according to H.U.D. construction standards & affixed w/ H.U.D. label Steps to convert a manufactured home to real property -Answer-Wheels & hitch must be removed, affixed to a permanent foundation on land owned by the homeowner Modular homes -Answer-Pieces constructed in factories. Once erected at site are automatically real property. Must be affixed w/ H.U.D. label Emblements -Answer-Annual crops. Usually considered real property. Severance -Answer-Converting real property to personal property by removal (i.e. cutting down a tree) Annexation -Answer-Converting personal property to real property by permanent attachment Total circumstances test -Answer-A legal test applied by the courts to determine whether an item is a fixture or personal property 4 parts of total circumstances test IRMA -Answer-1)Intention of annexor 2)Relationship of annexor 3)Methods of annexor 4)Adaptation to real estate Trade fixtures -Answer-An article owned by a tenant & attached to a rented space or building for use in conducting business Agricultural fixtures (NC LAW) -Answer-Fixtures installed during lease are considered real property & cannot be removed Uniform Commercial Code (UCC) -Answer-If a homeowner purchases an item on credit & gives the creditor a security agreement, that item remains personal property & may be removed by creditor in event of default. Becomes real