N.C. Real Estate Pre-Licensing Flashcards

Questions and Answers

What is the definition of real property?

All property that doesn't fit the definition of real property.

A non-possessory right to use the land for a particular purpose.

A legal life estate in real estate occupied as the family home.

Land and everything that is permanently attached to the land. (correct)

What does personal property (personalty) refer to?

All property that doesn't fit the definition of real property.

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?

Land at, above, or below the earth's surface, including all things permanently attached to it. Signup and view all the answers

What are the economic characteristics of real property summarized by the acronym SLIP?

Scarcity, Location, Improvements, Permanence of investment. Signup and view all the answers

Name one physical characteristic of real property.

Immobility, Indestructibility, Uniqueness. Signup and view all the answers

What is meant by the term 'highest & best use'?

The use that will give the owners the greatest actual return on their investment. Signup and view all the answers

What does a broker do in real estate?

Acts as an agent who negotiates the sale, purchase, or rental of property on behalf of others for a fee or commission. Signup and view all the answers

What are the categories of real estate?

Residential, commercial, industrial, agricultural, special purpose. Signup and view all the answers

What does the term 'point of equilibrium' refer to?

The point when supply and demand are balanced. Signup and view all the answers

Define 'appurtenance' in the context of real estate.

A right or privilege that goes with the ownership of the land. Signup and view all the answers

What is the difference between surface rights and subsurface rights?

Surface rights are the rights to use the surface of the earth, while subsurface rights are the rights to use the space below ground level. Signup and view all the answers

What does the term 'easement' mean?

A non-possessory right to use the land for a particular purpose. Signup and view all the answers

What is the purpose of the Uniform Commercial Code (UCC) in real estate?

It governs the sale of personal property and how it interacts with real property. Signup and view all the answers

What is an involuntary lien?

A lien created by law, such as a tax lien. Signup and view all the answers

How often must property taxes be reassessed in North Carolina?

Every 8 years. Signup and view all the answers

What are the four types of leasehold estates?

Estate for years, estate from period to period, estate at will, estate at sufferance. Signup and view all the answers

What is a grantor?

The person who gives the property. Signup and view all the answers

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.