1 Real Estate Fundamentals and Property Types Free Online FlashCards

What does real estate include?

Real estate is land and things permanently attached to it, such as buildings and other improvements.

How does real property differ from real estate?

Real property generally includes real estate plus the legal rights and interests associated with owning or using it.

What is a fixture in real estate?

A fixture is an item attached to a building, such as a built-in cabinet, that may be treated as part of the real property depending on the circumstances and applicable law.

What is an easement?

An easement is a limited right or permission to use another person’s land for a defined purpose.

What distinguishes a condominium?

A condominium is an individually owned unit in a development that also has shared areas or facilities.

What are common uses of industrial property?

Industrial property is used for manufacturing, warehousing, distribution, or related operations.

What is a parcel?

A parcel is a defined piece of land, often identified in public records by a legal description or parcel number.

What does zoning regulate?

Zoning is a set of local rules regulating how land may be used and what may be built there.

How do title and deed differ?

Title is legal evidence of ownership and related rights; a deed is a legal document used to transfer an ownership interest in real property.

What does market value estimate?

Market value is an estimate of what a property would exchange for under stated assumptions about a typical transaction between willing, informed parties; it is not necessarily the eventual sale price.

How is a property owner’s equity determined?

Equity is the value of an owner’s interest after subtracting debts secured by the property. For a home worth $\$300{,}000$ with a $\$200{,}000$ mortgage balance, equity is about $\$100{,}000$ before selling costs and other claims.

How does a mortgage broker differ from a mortgage lender?

A mortgage broker acts as an intermediary between a borrower and potential lenders; unlike a mortgage lender, the broker does not lend the money.