Unit 1 Basic Real Estate Concepts Key Terms

broker

(1) One who acts as an intermediary on behalf of others for a fee or commission. (2) One who is licensed to list, lease, buy, exchange, auction, negotiate or sell interest in real estate for others for a fee.

business cycles

The upward and downward fluctuations in business activities generally characterized by four stages: expansion, recession, depression, and revival.

chattel

an item of movable personal property

demand

The amount of goods people are willing and able to buy at a given price; often coupled with supply.

fixity

Refers to the permanence of land and the long-term nature of real estate investments.

hereditaments

Any interests in real estate capable of being inherited.

highest and best use

The possible use of a property that would produce the greatest net income and thereby develop the highest value.

land

The earth’s surface, extending downward to the center of the earth and upward infinitely into space, including things permanently attached by nature, such as trees and water.

market

A place where goods can be bought and sold and value established

non-homogeneity

A lack of uniformity; dissimilarity; heterogeneity. Because no two parcels of land are exactly alike, real estate is said to be nonhomogeneic

non-provisional broker

A North Carolina real estate licensee that has completed the 90-hour post-licensing education to remove the provisional license status; also called a full broker

personal property

Items, called chattels or personalty, that do not fit into the definition of real property; movable objects. Examples would include furniture, clothing, jewelry, money, vehicles, et cetera

provisional broker

A real estate licensee who performs real estate activities under the supervision of a licensed real estate broker-in-charge. Must complete postlicensing courses to remove the provisional license status

real estate

Land; a portion of the earth’s surface extending downward to the center of the earth and upward infinitely into space, including all things permanently attached to it, whether naturally or artificially.

real property

The land plus permanent improvements and the interests, benefits, and rights inherent in real estate ownership.

situs

The personal preference of people for one location over another, not necessarily based on objective facts and knowledge.

supply

The amount of goods available in the market to be sold at a given price. The term is often coupled with demand.

tenements

Any structures attached to the land.