Real Estate Principles

by Floyd, Charles F.; Allen, Marcus T.

• ISBN13: 9780793141838
• ISBN10: 0793141834
• Edition: 7th
• Format: Hardcover
• Copyright: 2002-03-01
• Publisher: Dearborn Trade Pub

Summary

This leading textbook for the college introductory real estate principles course is a comprehensive, well written text known for its easy to understand and practical approach to the principles of real estate. Highlights include: * Instructor Resources available online atwww.dearbornRE.com, including a PowerPointpresentation. * "Real Estate Today" advisory boxes analyze specificlegal cases and controversial issues in the industry. * A recurring case study is woven thoughout the book,highlighting the decision process in a typical realestate transaction. * "Close Ups", "Legal Highlights" and "Case Studies"appear thoughout to provide "real world"applications of the concepts. * Contains a student study guide CD ROM withinteractive case studies.

Table of Contents

Dedication	iii
Preface	x
The Market for Real Estate Knowledge	1	(10)
Defining the Real Estate Body of Knowledge	2	(2)
Defining and Analyzing the Market for Real Estate Knowledge	4	(7)
PART ONE Real Estate Legal Analysis	11	(140)
Property Rights and Legal Descriptions	12	(30)
Real vs. Personal Property	14	(1)
Fixtures	14	(2)
Mineral and Air Rights	16	(1)
Water Rights	16	(1)
Estates in Land	17	(4)
Concurrent Estates	21	(2)
Condominium Ownership	23	(1)
Cooperative Ownership	24	(1)
Time-Shares	25	(1)
Legal Descriptions	25	(17)
Private Restrictions on Ownership	42	(18)
Liens	44	(1)
Easements	45	(6)
Licenses	51	(1)
Profit a Pendre	51	(1)
Adverse Possession	51	(2)
Encroachments	53	(1)
Restrictive Covenants	53	(7)
Public Restrictions on Ownership	60	(30)
The Property Tax	62	(2)
Escheat	64	(2)
Power of Eminent Domain	66	(1)
Police Power	67	(2)
The Comprehensive General Plan	69	(1)
Comprehensive Zoning	69	(10)
Innovative Land-Use Control Methods	79	(2)
The Takings Issue	81	(9)
Deeds and Leases	90	(20)
Deeds	91	(7)
Leases	98	(12)
Contracts in Real Estate Transactions	110	(18)
Necessary Elements of a Contract	112	(3)
Breach of Contract	115	(1)
Contract Contingencies	116	(1)
Real Estate Sales Contracts	116	(5)
Option-To-Buy Contracts	121	(1)
Contract for Deed	122	(1)
Some Basic Negotiation Tips and Strategies	122	(6)
Title Examination and the Closing Process	128	(23)
Title Examination	130	(4)
Title Closings	134	(17)
PART TWO Real Estate Market Analysis	151	(46)
Understanding Real Estate Markets	152	(20)
Real Estate Space Markets	154	(7)
Real Estate Asset Markets	161	(2)
Tying Together the Space and Asset Markets	163	(2)
Preparing a Real Estate Market Analysis	165	(7)
Urban and Regional Economics	172	(25)
Economic Factors Influencing the Growth and Decline of Cities	174	(4)
The Location of People	178	(1)
Analyzing Local Real Estate Demand	179	(1)
The Bid-Rent Curve and the Concept of Highest and Best Use	180	(2)
Models of Urban Growth Patterns	182	(5)
The Importance of Public Facilities in the Growth Process	187	(4)
Urban From: A Synthesis	191	(1)
The Dynamics of Neighborhood Change	192	(5)
PART THREE Real Estate Service Industries	197	(74)
Real Estate Brokerage	198	(24)
The Real Estate Sales Process	200	(2)
Real Estate Brokers and Salespersons	202	(1)
Licensing of Salespeople and Brokers	202	(1)
Real Estate Brokerage Regulation	203	(1)
Legal Aspects of the Broker-Client Relationship	203	(1)
The Role of Real Estate Brokers	203	(1)
The Creation of Agency Relationships	204	(5)
Duties and Rights Under Agency Relationships	209	(4)
Termination of Agency Relationships	213	(2)
Types of Brokerage Firms	215	(1)
Broker and Salesperson Compensation	216	(6)
Real Estate Appraisal	222	(32)
Understanding the Appraisal Profession	224	(1)
What is Value?	224	(1)
Some Key Appraisal Principles	224	(4)
The Appraisal Process	228	(6)
The Sales Comparison Approach	234	(4)
The Cost Approach	238	(16)
Property Management	254	(17)
The Role of the Property Manager	256	(1)
The Management Agreement	256	(5)
Functions of a Property Manager	261	(6)
The Role and Function of Asset Managers	267	(4)
PART FOUR Real Estate Finance and Investment Analysis	271	(136)
Residential and Commercial Property Financing	272	(36)
Understanding the Mortgage Concept	274	(1)
U.S. Mortgage Practice	275	(3)
Understanding the Foreclosure Process	278	(3)
Structure of the U.S. Housing Finance System	281	(5)
Mortgage Market Participants	286	(3)
Understanding the Mortgage Loan Origination Process	289	(10)
Sources of Capital in Commercial Property Markets	299	(4)
Commercial Financing Underwriting Criteria	303	(5)
Risk, Return and the Time Value of Money	308	(20)
The Relationship Between Risk and Return	310	(2)
Time Value of Money Formulas	312	(10)
Financial Decision Rules: NPV and IRR	322	(6)
Mortgage Mechanics	328	(22)
Mortgage Mechanics	329	(5)
Understanding the Fixed-Rate Mortgage: Prepayment	334	(3)
Understanding the Fixed-Rate Mortgage: Refinancing	337	(2)
Understanding the Fixed-Rate Mortgage: Discount Points and Effective Interest Rates	339	(3)
Alternatives to the Fixed-Rate Mortgage	342	(8)
Analyzing Income-Producing Properties	350	(18)
Advantages of Real Estate Investment	352	(2)
Financial Decision Making	354	(4)
The Discounted Cash Flow Model	358	(10)
Residential Development	368	(20)
Types of Residential Development	370	(6)
Market and Feasibility Analysis	376	(4)
Financial Feasibility Analysis	380	(1)
The Importance of Market Analysis	380	(8)
Commercial and Industrial Development	388	(19)
Shopping Center Development	389	(3)
Evolution of the Shopping Center	392	(1)
The Shopping Center Development Process	393	(5)
Office Buildings	398	(4)
Industrial Parks and Distribution Facilities	402	(1)
Analysis of Industrial Sites	402	(1)
Hotel, Motel, and Resort Developments	402	(5)
PART FIVE Special Topics	407	(36)
Principles of Real Property Insurance	408	(18)
Risks of Property Ownership	410	(1)
Insurance Against Property Losses	410	(9)
Earthquake Insurance	419	(1)
Liability Insurance	419	(1)
Flood Insurance	420	(1)
Mortgage Life Insurance	421	(1)
Businessowner's Policy	421	(5)
Home Purchase Decisions	426	(17)
The Rent or Buy Decision	427	(5)
How Much Home Can You Afford	432	(2)
Choosing a Property	434	(4)
Making and Closing the Deal	438	(5)
Glossary	443	(12)
Appendix A: Time Value of Money Tables	455	(6)
Appendix B: NAR's Code of Ethics and Standards of Practice	461	(9)
Index	470	(5)
Credits and Acknowledgments	475