property- things and objects that can be used, controlled or disposed of by an owner
real estate- consists of physical land plus structures and other improvements that
are permanently attached.
personal property is movable whereas real estate is not
3 physical features of real estate
immobility - fixed location cannot be moved
unique location (heterogeneity) - every single parcel of real estate has a location that cannot be
indestructibility- land component, physical asset and legal interest is viewed as indestructible.
3 economic features of real estate
Scarcity – every location is unique , only certain parcels can satisfy reqs of a specific investment.
long economic life
situs - interaction with the usses of surronding land parcels
agglomeration is used to explain the phenomenon where similar types of business locate in close
proxmity to each other. car dealerships.
Real Estate Supply – three special factors are involved when supply of real estate is discussed: time,
place and substitution.
Axial theory – the axial theory is a direct takeoff on the concentric circle theory but picks up on an
important factor affecting urban growth that Burgess ignored: transportation axes or arteries.
In the 1930s, Homer Hoyt developed what is known as the sector theory. This theory attempts to
explain residential concentrations around the CBD. Cultural as well as economic factors would result in
clustering at logical distances from major transportation routes.
Office Building Types
Class A Office buildings typically have a modern and superior quality of exterior curtain walls, state of
the art mechanical, electrical and life safety systems and a high quality interior finish. These more
prestigious office buildings are typically occupied by the city’s premier office users and have a definitive
market presence. Given all the above, Class “A” buildings command premium rents.
Class B office buildings commonly have acceptable(but not outstanding) curtain wall finishes, adequate(
but not state of the art) mechanical, electrical and life safety systems and a mid-quality level of interior
finish, class B buildings compete for a wide range of users, at average rents for their market areas.
Class C office buildings – the Curtin wall and mechanical, electrical and life safety systems of class c
buildings are generally somewhat outdated and the quality of the finish is often below average. These
buildings commonly compete for tenants requiring functional space at below average rents. Lecture 2
real property is immovable, fixed in one place.
includes interests benefits and rights inherent in the ownership of physical real estate
personal property is movable items,not permanently affixed to and part of real estate, is mobile.
when permanently attached to building, becomes a fixture and a part of real property.
5 elements to all real estate contracts
names of legally competent parties
signatures of legally competent parties
description of property or premises
surface rights - right to use, control and occupy a designated property on earth’s surface including trees
Air rights - right to use, control or occupy the space above a designated property.
Sub surface right - the right to use, control or occupy the area below or beneath a property.
Riparian rights- the rights of an owner whose land borders a river, stream or lake are governed in some
states by the common law.
prior appropriation - the right to use natural water is controlled by the government rather than by the
littoral rights - a special doctrine applies to land that borders large lakes and oceans. permits use of the
waters without restrictions.
bundle of rights
right of possession, control, enjoyment, disposition and exclusion.
Escheat- an individual dies interstate without will or heirs the government of the province will take the
property as crown land under its power.
fee simple - absolute ownership for life, his heirs and assign forever.
life estate - the grantor conveys a fee simple interest to a grantee for a period measured by the lifetime of
an easement is an interest in real estate that fives the holder the right to use but not possess the real
Methods of transferring Title – Voluntary: Will, gift and sale
Involuntary – fraud, descent, escheat, eminent domain, enforcing liens, adverse possession. Lecture 3
agents chief duties are:
loyalty to his principal
obedience to the principals instructions
care in the performance of his duties
accountability for the principals money or property
full disclosure to the principal of all mate