Real Estate Principles

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

• ISBN13: 9780793129584
• ISBN10: 0793129583
• Edition: 6th
• Format: Hardcover
• Copyright: 1999-02-01
• Publisher: Dearborn Trade

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

Preface	ix
Real Estate Today Features	xiii
Introduction to Real Estate Decision Making	1	(18)
The Role of Real Estate Studies in Business Education	2	(1)
Special Characteristics of Real Estate	3	(4)
The Economic Importance of Real Estate	7	(1)
The Real Estate Industry: The Private Sector	8	(4)
The Real Estate Industry: The Public Sector	12	(7)
Part One Real Estate Market Analysis	19	(46)
Understanding Real Estate Markets	20	(20)
The Idealized Supply and Demand Model	22	(1)
Real Estate Resources: Supply Factors---Improvements	22	(4)
Real Estate Resources: Supply Factors---Land	26	(1)
Real Estate Resources: Demand Factors	27	(3)
Price-Distance Relationships	30	(2)
Highest and Best Use	32	(8)
The Economics of Regional and Community Growth	40	(25)
Economic Factors Influencing the Growth and Decline of Cities	42	(4)
The Location of People	46	(1)
Analyzing Local Real Estate Demand	46	(2)
Models of Urban Growth Patterns	48	(3)
The Importance of Public Facilities in the Growth Process	51	(2)
Urban Form: A Synthesis	53	(6)
The Dynamics of Neighborhood Change	59	(6)
Part Two Real Estate's Legal Framework	65	(88)
Property Rights and Ownership Interests	66	(20)
What Is Real Property?	68	(1)
Fixtures	68	(1)
Mineral and Air Rights	69	(1)
Water Rights	70	(2)
Estates in Land	72	(5)
Concurrent Estates	77	(2)
Condominium Ownership	79	(1)
Cooperative Ownership	80	(1)
Time-Sharing	80	(6)
Private Restrictions on Ownership	86	(18)
Liens	88	(1)
Easements	89	(6)
Licenses	95	(1)
Profit A Prendre	95	(1)
Encroachments	95	(1)
Adverse Possession	95	(1)
Restrictive Covenants	96	(8)
Public Restrictions on Ownership	104	(28)
The Property Tax	106	(2)
Escheat	108	(1)
Eminent Domain	108	(1)
Police Power	109	(1)
The Comprehensive General Plan	110	(1)
Comprehensive Zoning	111	(8)
Innovative Land-Use Control Methods	119	(2)
The Takings Issue	121	(11)
Deeds and Legal Descriptions	132	(21)
Deeds	134	(6)
Legal Descriptions	140	(13)
Part Three Real Estate Services	153	(80)
Real Estate Brokerage	154	(26)
The Real Estate Sales Process	156	(1)
Real Estate Brokers and Salespersons	157	(1)
Licensing of Salespersons and Brokers	157	(1)
Real Estate Brokerage Regulation	158	(2)
Legal Aspects of the Broker-Client Relationship	160	(1)
The Role of Real Estate Brokers	161	(1)
The Creation of Agency Relationships	161	(7)
Duties and Rights Under Agency Relationships	168	(3)
Termination of Agency Relationships	171	(1)
Types of Brokerage Firms	172	(1)
Broker and Salesperson Compensation	173	(7)
Property Management and Leasing	180	(21)
The Role of the Property Manager	182	(1)
Functions of a Property Manager	182	(2)
The Management Agreement	184	(2)
The Role and Function of Asset Managers	186	(1)
Leases	187	(4)
The Landlord-Tenant Relationship in a Residential Lease	191	(10)
Real Estate Appraisal	201	(32)
Understanding Appraisal Regulation	202	(1)
What Is Value?	202	(3)
Some Key Appraisal Principles	205	(2)
The Appraisal Process	207	(4)
The Sales Comparison Approach	211	(5)
The Cost Approach	216	(3)
The Income Approach	219	(14)
Part Four Real Estate Transactions	233	(134)
Contracts in Real Estate Transactions	234	(16)
Necessary Elements of a Contract	236	(2)
Real Estate Sales Contracts	238	(6)
Option-to-Buy Contracts	244	(1)
Performance and Breach of Contract	245	(5)
Principles of Real Property Insurance	250	(18)
Risks of Property Ownership	252	(1)
Insurance Against Property Losses	252	(4)
Earthquake Insurance	256	(5)
Liability Insurance	261	(1)
Flood Insurance	262	(1)
Mortgage Life Insurance	262	(1)
Businessowner's Policy	263	(5)
Financing Residential Property	268	(32)
Understanding the Mortgage Concept	270	(1)
U. S. Mortgage Practice	271	(4)
Understanding the Foreclosure Process	275	(2)
Structure of the U. S. Housing Finance System	277	(4)
Mortgage Market Participants	281	(2)
Understanding the Mortgage Loan Origination Process	283	(17)
Time Value of Money and Mortgage Mechanics	300	(42)
The Relationship Between Risk and Return	302	(2)
Time Value of Money Formulas	304	(11)
Financial Decision Rules: NPV and IRR	315	(3)
Mortgage Mechanics	318	(4)
Understanding the Fixed-Rate Mortgage: Prepayment	322	(2)
Understanding the Fixed-Rate Mortgage: Refinancing	324	(3)
Understanding the Fixed-Rate Mortgage: Discount Points and Effective Interest Rates	327	(4)
Alternatives to the Fixed-Rate Mortgage	331	(11)
Title Examination and the Closing Process	342	(25)
Title Examination	344	(6)
Title Closings	350	(17)
Part Five Real Estate Investment Analysis	367	(42)
Home Purchase Decisions	368	(16)
The Rent or Buy Decision	370	(4)
How Much Home Can You Afford?	374	(2)
Choosing a Property	376	(3)
Making and Closing the Deal	379	(5)
Investing in Income-Producing Properties	384	(25)
Advantages of Real Estate Investment	386	(3)
Financial Decision Making	389	(4)
The Discounted Cash-Flow Model	393	(9)
REITs as an Alternative to Direct Investment in Real Estate	402	(7)
Part Six Real Estate Development	409	(40)
Residential Land Uses	410	(19)
Types of Residential Development	412	(7)
Market and Feasibility Analysis	419	(2)
Financial Feasibility Analysis	421	(1)
The Importance of Market Analysis	421	(8)
Commercial and Industrial Development	429	(20)
Shopping Center Development	432	(2)
Evolution of the Shopping Center	434	(2)
The Shopping Center Development Process	436	(3)
Office Buildings	439	(4)
Industrial Parks and Distribution Facilities	443	(1)
Hotel, Motel and Resort Developments	444	(5)
Glossary	449	(20)
Appendix A: Time Value of Money Tables	469	(6)
Appendix B: NAR's Code of Ethics and Standards of Practice	475	(10)
Index	485	(6)
Credits and Acknowledgments	491