REAL ESTATE

Artiqa Faryaini
Mind Map by Artiqa Faryaini, updated more than 1 year ago
Artiqa Faryaini
Created by Artiqa Faryaini over 6 years ago
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REAL ESTATE
  1. Definition of Real Estate
    1. What is Real Estate?
      1. a. Real estate is a legal term.
        1. b. It refers to an interest or a right in property.
          1. c. Real estate can refer to both : i. Tangible objects such as houses and buildings. ii. Intangible objects suh as a right or possession or easement on land.
        2. Real Property vs Personal Property
          1. Real Property
            1. Real property goes to the purchaser in a property transaction. A deed document is used to facilitate the transfer of title of ownership.
            2. Personal Property
              1. Personal property such as computer, TV etc.., stays with the seller in a transaction.
            3. Fixtures & Fittings
              1. Fixtures
                1. A fixture is an object that is permanently attached to the floor or walls that is not removable, it cannot be removed without damage to itself or to the property.
                  1. Example, bathroom sinks, toilets kitchen- built in cabinets, air conditioners.
                2. Fittings
                  1. A fitting is any item that is free standing or hung by a nail or a hook and it is removable.
                    1. Example, paintings, carpets, curtains lamps, television, computer
                3. Physical Characteristics of Real Estate
                  1. 1. Immobile
                    1. Land is geographically fixed. Location is the single most important factor in determining value.
                    2. 2. Scarce
                      1. Land is scarce as a total land supply is fixed. Where land is limited in supply, value of land tends to be higher
                      2. 3. Indestructible
                        1. Land may be altered but it cannot be destroyed.
                        2. 4. Unique
                          1. Real estate is unique as no 2 parcels of land are exactly the same.
                        3. Concepts of Real Estate
                          1. Market Value
                            1. Is an objective estimate of the worth of real estate based on different factors.
                              1. a. Willing seller and willing buyer
                                1. b. probably selling price
                                  1. c. both buyer and seller well-informed
                                    1. d. act independently without undue pressure
                                      1. e.arm's length transaction
                                    2. Value in Use
                                      1. A subjective reference of worth from owner's perspectives. Example, sentimental value
                                      2. Highest & Best Use
                                        1. i. Legally and physically possible development potential
                                          1. ii. Transaction purposes
                                            1. iii. In contrast with existing use
                                              1. iv. Strongly influenced by URA's development control : land use, height control and plot ratio.
                                              2. Investment in Value
                                                1. Value or worth from a specific investor's perspective and circumstances.
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