NC Real Estate School Chapter 1

Basic Real Estate Concepts

• Vocabulary covers terminology essential to understanding real estate principles.

Bill of Sale

• A legal document to transfer ownership of personal property to real property.

Chattel

• Another term for personal property; movable items not affixed to land.

Closing

• The conclusive event where a real estate contract is fulfilled, involving final transactions.

Free Market

• An economic system where prices and wages are dictated by competition without government interference.

Highest and Best Use

• Refers to the legal and optimal use of a property that maximizes its net present value.
• Must comply with zoning laws and legal restrictions; changes with time and resources.

Immobility

• Land's characteristic of being immovable, resulting in localized real estate markets.

Improvements

• Modifications or enhancements to a property, such as pools, fences, or driveways.

Indestructibility

• A characteristic of land signifying that it cannot be destroyed, also known as permanence.

Land Use Controls

• Regulations governing the permitted uses of land, often defined by zoning laws.

Listing Contract

• An agreement between a property owner and broker, outlining mutual rights and obligations.

Nonhomogeneity

• The idea that no two parcels of land are identical, affecting their value and legal specifications.

Offer to Purchase and Contract

• The primary sales contract in North Carolina serving dual purposes of an offer and contract for real estate transactions.

Personal Property

• Items that are movable and not permanently attached to land, commonly referred to as chattels.

Personalty

• Synonymous with personal property; highlights movable assets excluding real estate.

Real Estate

• Encompasses land and anything permanently attached, including surface, subsurface, and air rights.

Real Property

• Consists of land and all items permanently affixed to it, representing ownership in real estate.

Realtor

• A licensed real estate agent who is a member of real estate associations, enhancing professionalism in the industry.

Realty Scarcity

• Economic characteristic reflecting the limited availability of land despite increasing demand due to population growth.