Podcast
Questions and Answers
What is the definition of real property?
What is the definition of real property?
What does personal property (personalty) refer to?
What does personal property (personalty) refer to?
All property that doesn't fit the definition of real property.
What defines land in real estate?
What defines land in real estate?
The earth's surface extending downwards to the center of the earth and upward to infinity.
What is real estate or realty?
What is real estate or realty?
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What are the economic characteristics of real property summarized by the acronym SLIP?
What are the economic characteristics of real property summarized by the acronym SLIP?
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Name one physical characteristic of real property.
Name one physical characteristic of real property.
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What is meant by the term 'highest & best use'?
What is meant by the term 'highest & best use'?
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What does a broker do in real estate?
What does a broker do in real estate?
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What are the categories of real estate?
What are the categories of real estate?
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What does the term 'point of equilibrium' refer to?
What does the term 'point of equilibrium' refer to?
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Define 'appurtenance' in the context of real estate.
Define 'appurtenance' in the context of real estate.
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What is the difference between surface rights and subsurface rights?
What is the difference between surface rights and subsurface rights?
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What does the term 'easement' mean?
What does the term 'easement' mean?
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What is the purpose of the Uniform Commercial Code (UCC) in real estate?
What is the purpose of the Uniform Commercial Code (UCC) in real estate?
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What is an involuntary lien?
What is an involuntary lien?
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How often must property taxes be reassessed in North Carolina?
How often must property taxes be reassessed in North Carolina?
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What are the four types of leasehold estates?
What are the four types of leasehold estates?
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What is a grantor?
What is a grantor?
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Study Notes
Real Property and Personal Property
- Real property encompasses land and all permanent attachments such as buildings or other improvements, plus appurtenant rights.
- Personal property, or personalty, refers to movable items not classified as real property, which are known as chattels.
Types of Land and Real Estate
- Land is defined as the Earth's surface extending from the center of the Earth upwards indefinitely.
- Real estate (or realty) includes land and everything permanently attached, whether natural (trees) or artificial (buildings).
Ownership Rights and Real Estate Characteristics
- Real property ownership includes the land, improvements, and legal rights of disposition, enjoyment, exclusion, possession, and control (DEEP C).
- Economic characteristics of real property include scarcity, location, improvements, and investment permanence (SLIP).
- Physical characteristics highlight immobility, indestructibility, and uniqueness of real property.
Types of Improvements
- Improvements on the land refer to private structures like homes and pools, while improvements to the land involve public enhancements like sidewalks and parks.
Use and Value of Property
- The highest and best use indicates the most profitable legal use of a property that maximizes its return on investment.
Real Estate Professionals
- A broker is an agent who negotiates sales, purchases, or rentals of property for a fee.
- Different categories of real estate include residential, commercial, industrial, agricultural, and special purpose.
Supply and Demand Balance
- The point of equilibrium occurs when market supply meets demand, affecting property pricing.
Real Property Rights
- Surface rights allow landowners to utilize the surface; subsurface rights enable resource extraction below ground, while air rights refer to the use of space above the land.
- Riparian rights apply to non-navigable water bordering land, whereas littoral rights pertain to navigable waters.
Changes to Land
- Accretion refers to gradual land gain through soil deposition, while erosion is the irreversible loss of land due to nature. Reliction is land gained when water recedes permanently, while avulsion deals with land loss from catastrophic events.
Types of Estates
- Freehold estates indicate indeterminate ownership lengths, while leasehold estates signify ownership for a specific period.
- Various freehold estates include fee simple absolute (unlimited ownership), fee simple defeasible (ownership contingent on conditions), and life estates (ownership tied to life duration).
Ownership Structures
- Tenancy in common allows multiple owners with undivided interests, while joint tenancy includes equal ownership with survivorship rights.
- Tenancy by entirety requires marriage for equal ownership with automatic survivorship.
Licensing and Professional Regulations
- In North Carolina, the real estate commission consists of nine members overseeing licensing and regulations; qualifications to become a broker include age, citizenship, a 75-hour course, and passing an exam.
- Brokers must renew licenses annually by completing continuing education and paying fees.
Liens and Encumbrances
- A lien is a non-possessory claim against property securing a debt; they can be voluntary (like a mortgage) or involuntary (like a tax lien).
- Specific liens affect particular properties, while general liens affect all debtor's property.
Property Taxation and Assessment
- Ad valorem taxes are levied based on property value, with special assessments aimed at funding improvements.
- In NC, property undergoes octennial reappraisal every eight years, analyzing property values collectively within areas.
Easements and Rights of Use
- An easement grants a non-possessory right to use land for specific purposes, categorized into easement appurtenant (benefiting one parcel) and easement in gross (benefiting individuals).
- Easement by prescription is recognized after continuous use of another's land for a specified period (20 years in NC).
Other Key Terms
- Homestead laws protect a family home from creditors during the occupant's lifetime.
- Emblements refer to annual crops, typically viewed as real property, while severance converts real property to personal property through removal.
- The Machinery Act governs property tax standards and assessments for real estate in NC.
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Description
Test your knowledge of real estate terminology with these flashcards designed for North Carolina pre-licensing. Each card covers essential definitions such as real property, personal property, and land, crucial for aspiring real estate agents. Prepare effectively for your licensing exam.