NC Superior Real Estate School – Exam Chapter 1 with Correct Solutions

NC Superior Real Estate School – Exam Chapter 1 with Correct Solutions 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