Modern Real Estate Practice Nineteenth Edition Update: Binder UNIT 1

REAL ESTATE MARKET

SPECIFIC PLACE OR ECONOMIC SYSTEM WHERE GOODS ARE BOUGHT AND SOLD

SUPPLY AND DEMAND

THE ECONOMIC FORCES THAT SET PRICES FOR PRODUCTS

CHARACTERISTICS OF REAL ESTATE AFFECTING SUPPLY AND DEMAND:

UNIQUENESS, IMMOBILITY, EFFECT OF NATURAL DISASTERS OR CHANGES IN FINANCIAL MARKETS OR LOCAL EVENTS

WHAT WILL HAPPEN TO PRICES IF SUPPLY INCREASES RELATIVE TO DEMAND

PRICES WILL GENERALLY DROP

WHAT WILL HAPPEN TO PRICES IF DEMAND INCREASES RELATIVE TO SUPPLY

PRICES WILL GENERALLY RISE

FACTORS AFFECTING SUPPLY

LABOR FORCE, CONSTRUCTION MATERIAL AND COSTS, GOV'T CONTROLS AT ALL LEVELS AND GOV'T FINANCIAL POLICIES

FACTORS AFFECTING DEMAND

POPULATION, DEMOGRAPHICS, EMPLOYMENT AND WAGE LEVELS

LAND

THE EARTH'S SURFACE EXTENDING DOWNWARD TO THE CENTER OF THE EARTH AND UPWARD TO INFINITY, INCLUDING THINGS PERMANENTLY ATTACHED BY NATURE, SUCH AS TREES AND WATER

REAL ESTATE

THE LAND AND ALL THINGS PERMANENTLY ATTACHED TO IT BY EITHER NATURE OR PEOPLE (IMPROVEMENTS)

REAL PROPERTY

REAL ESTATE PLUS THE INTERESTS, BENEFITS, AND RIGHTS INHERENT IN THE OWNERSHIP OF REAL ESTATE

OWNERSHIP OF REAL PROPERTY

BUNDLE OF LEGAL RIGHTS; CONCEPT COMES FROM OLD ENGLISH LAW

BUNDLE OF LEGAL RIGHTS INCLUDE:

THE RIGHTS OF POSSESSION, CONTROL, ENJOYMENT, EXCLUSION, AND DISPOSITION

TITLE TO REAL PROPERTY INCLUDES:

RIGHT TO PROPERTY AND EVIDENCE OF OWNERSHIP BY DEED

APPURTENANCE

RIGHT OR PRIVILEGE ASSOCIATED WITH THE PROPERTY, ALTHOUGH NOT NECESSARILY A PART OF IT

SURFACE RIGHTS

MAY BE SOLD OR LEASED TO OTHERS

SUBSURFACE RIGHTS

INCLUDES RIGHTS TO MINERALS AND OTHER SUBSTANCES UNDER THE EARTH'S SURFACE. MAY BE SOLD OR LEASED TO OTHERS BUT INDEPENDENT OF SURFACE OWNERSHIP

AIR RIGHTS

MAY BE SOLD OR LEASED INDEPENDENT OF SURFACE OWNERSHIP AND HAVE BECOME AN OWNERSHIP ISSUES DUE TO SOLAR ENERGY APPLICATIONS THAT REQUIRE DIRECT ACCESS TO SUNLIGHT

WATER RIGHTS

RIGHTS HELD BY OWNERS OF LAND ADJACENT TO RIVERS, LAKES, OR OCEANS

RIPARIAN RIGHTS

TYPE OF WATER RIGHTS GRANTED TO OWNERS OF LAND ALONG A RIVER, STREAM, OR SIMILAR BODY OF WATER

LITTORAL RIGHTS

TYPE OF WATER RIGHTS OF OWNERS WHOSE LAND BORDERS COMMERCIALLY NAVIGABLE LAKES, SEAS, AND OCEANS

ACCRETION

INCREASES IN LAND RESULTING FROM DEPOSIT OF SOIL BY WATER'S ACTION

EROSION

LOSS OF SOIL BY GRADUALLY WEARING AWAY BY NATURAL FORCES

AVULSION

SUDDEN REMOVAL OF SOIL DUE TO AN ACT OF NATURE

DOCTRINE OF PRIOR APPROPRIATION

THE RIGHT TO USE ANY WATER, EXCEPT FOR LIMITED DOMESTIC USE, CONTROLLED BY THE STATE RATHER THAN THE ADJACENT LANDOWNER

PERSONAL PROPERTY

ALL PROPERTY THAT DOES NOT FIT THE DEFINITION OF REAL PROPERTY AND IS MOVABLE; ALSO REFERRED TO AS CHATTELS.

REAL PROPERTY OR FRUCTUS NATURALES

PLANTS, TREES, PERENNIALS THAT DO NOT REQUIRE ANNUAL CULTIVATION

PERSONAL PROPERTY OR FRUCTUS INDUSTRIALES

PLANTS, CROPS, ANNUALS WITH A GROWING SEASON OF LESS THAN ONE YEAR AND ALSO KNOWN AS EMBLEMENTS

SEVERANCE

AN ITEM OF REAL PROPERTY MAY BE CHANGED TO PERSONAL PROPERTY THROUGH SEVERANCE. TREES ARE REAL ESTATE THAT BECOME PERSONAL PROPERTY WHEN AN OWNER CUTS THEM DOWN.

ANNEXATION

AN ITEM OF PERSONAL PROPERTY MAY BECOME REAL ESTATE BY ANNEXATION. CONSTRUCTION MATERIALS ROUTINELY BECOME REAL ESTATE.