Real Estate Test 1 Review

Real Estate Test 1 Review - STEPHEN TROUSDALE TEST 1 REVIEW...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
STEPHEN TROUSDALE TEST 1 REVIEW Aspects of a perfectly competitive market : Supply = demand Price = value Supply curve in the short run is perfectly elastic Homogenous product Fungible: capable of being divided into equal, identical parts No barriers to entry or exit Organized market structure No governmental involvement Space (location) is not a factor International in scope Aspects of Real Estate markets: Heterogeneous product unique due to its location Not fungible Supply not = to demand, price not = to value Supply is inelastic in the short run Price makers (setters) Barriers to entry: wealth; barriers to exit “thin” – the higher the price, the less properties available Lack of organized market structure Government involvement Spatial dimension is critical Local market Interdependence of land use Allodial system: private individuals can own property - Land : all naturally occurring elements - Real Estate : land plus any improvements (to the land (infrastructure) or on the land (dwellings or other structures)) - Real property : real estate and legal rights inherent in the ownership (missing some notes here from 1/18 & 1/21)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
STEPHEN TROUSDALE Legal rights inherent in the ownership of RE: 1). Right of exclusive possession 2). Right to use and enjoyment 3). Right of disposition 4). ? An owner’s interest in RE is considered to be: - alienable : can give up/transfer ownership during one’s lifetime - devisable : transferable by will upon death (testate) - descendible : transferable w/out a will (intestate) - Doctrine of escheat : if owner dies without a will & there are no identifiable heirs, state receives ownership When an estate is created, there are 2 parties: 1). Grantor 2). Grantee : receives the estate - Fixture : something that was once personal property, but by virtue of its placement, it has become part of the RE 4 Mutually Exclusive tests to determine if Fixture or not: 1). Intent test: determine intent of parties or what is customary) 2). Annexation test: can item in question be removed w/out damage) 3). Adaptation test: looks at use of item in relation to RE that it’s a part of (ex. Custom drapes for odd-sized windows) 4). Relationships of the parties: mediator usually favors the party with less info, typically the buyer Trade/Commercial fixtures -part of the RE once installed, but can convert back to personal property before expiration of lease, otherwise becomes property of landlord - Estate : quantity, duration, or extent of interest one has in property Two Kinds of Estates: 1). Freehold Estates : interest in property is indefinite in duration a. Freehold Estate of Inheritance: estates/property passed to someone thru a will
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/11/2008 for the course RE 3405 taught by Professor Delaney during the Spring '08 term at Baylor.

Page1 / 6

Real Estate Test 1 Review - STEPHEN TROUSDALE TEST 1 REVIEW...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online