NC Real Estate Exam: Real Estate Concepts

Land

Includes natural resources as well as minerals below and air above the surface

Real Estate

Land + improvements

Improvements

Any non natural structure permanent built or affixed to the land; i.e) buildings, fences, decks, roads

Real Property

Real estate + bundle of rights associated with real estate ownership

Personal property

Includes any asset other than real estate;

property that is unattached and moveable;

It usually goes with te seller in a sale unless othewise specifed in the sales contract

Acccession

The right to everything your property produces including assets that are added either naturally or by human action

Accretion

Occurs when land area gradually increases through deposits of soil by natural forces

i.e) A stream that takes soil and minerals from upriver and deposits them down river

Erosion

Gradual loss of land overtime

Reliction

Gradual increase in land area when water gradually withdraws

i.e) might happen during a severe drought

Avulsion

Sudden loss of land by flood or a stream or river changes course

Scarcity

Addresses supply and demand. Land is scarce. Supply and demand, demand for land can increase, but land itself never will.

Situs

Addresses the significance of a properties location. Economic significance of a property’s location.

Improvements aka modifications

Refers to the fact that the value of land can be affected by human made changes (improvements) to the land.;Human changes will and can affect the value of land.

i.e) If a city wants to build a park in a certain zip cod then houses bordering the park will appreciate in value

Permanence of Investment

Addresses the permanence of land. Since land is immobile developers and investors need to think of the long term investment before purchasing land.