RE 1.2_Principles of Real Estate I QUIZ
If the replacement cost of an item with a 5 year life span is $100, and it is 4 years old, what is the actual cash value of the item...? $20 $50 $80 $100
$20
A married couple is exempt from paying taxes on capital gains for up to how much in profit if they lived in their house for at least 2 of the last 5 years...? $100,000 $250,000 $500,000 $1,000,000
$500,000
The replacement cost minus depreciation is referred to as...? Net cash value Actual cash value Gross cash value Effective cash value
Actual cash value
The rights in real property to the reasonable use of the air space above the surface of the land is known as...? Mineral Rights Air Rights Land Rights Riparian Rights
Air Rights
What is typically covered in a homeowners policy...? Personal property within the house The house itself Liability All of the above
All of the above
Which of the following is a tax deduction a homeowner can take advantage of...? Mortgage interest payments Real estate taxes Loan origination fees All of the above
All of the above
Which of the following is considered a legal test for determining if an item is a fixture or not...? Mode and permanence of how the item was attached Adaptation of the item Intention of the parties All of the above
All of the above
Which of the following is considered a permanent man-made improvement to land...? Fences Sheds Wells All of the above
All of the above
The transfer of personal property is typically done using a...? Bill of Sale Purchase Contract All of the above Deed
Bill of Sale
The right of exclusion, which allows a landowner to prevent others from entering or occupying their property, is included in the...? Riparian Rights Littoral Rights Bundle of Rights Air Rights
Bundle of Rights
The profit realized from the sale of real estate or other investment is known as...? Capital Gains Debits Credits Deductibles
Capital Gains
A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease is known as a...? Cooperative Condominium Townhouse PUD
Cooperative
Tax benefits for homeowners are provided in part to...? Discourage homeownership Encourage homeownership Reduce the length of homeownership Decrease mortgage payments
Encourage homeownership
Personal property that has become real property by having been permanently attached or adapted to real property is known as a/an...? Fixture Trade Fixture Emblements Chattel
Fixture
Most homeowners policies do NOT cover which of the following...? Flood damage Smoke damage Fire damage All of the above
Flood damage
What is the most common homeowners policy found in Texas...? HOA HOB HOC HOD
HOB
Which of the following is an example of a fixture...? Rugs Removable bookshelves Kitchen cabinets Curtains
Kitchen cabinets
Who is responsible for selling newly constructed mobile homes...? Manufactured home dealerships Real estate brokers Real estate agents Mobile home owners
Mobile home owners
All property that is not land and is not permanently attached to land is known as...? Real Property Real Estate Personal Property Fixture
Personal Property
Mobile homes not permanently attached to the land are generally considered...? Trade Fixtures Real Property Fixtures Personal Property
Personal Property
The surface of the earth, the area above and below the surface, and everything permanently attached thereto is known as...? Land Real Property Real Estate Bundle of Rights
Real Estate
Trees and shrubbery that are not cultivated annually are considered...? Personal property Chattel Real property Emblements
Real property
A cooperative owner owns ......................... in the cooperative? Shares of stock A deed Title All of the above
Shares of stock
Mineral rights are typically considered dominant to which of the following rights...? Surface rights Air rights Sub-surface rights None of the above
Surface rights
Items that are installed by a commercial tenant and are removable upon termination of the tenancy are known as...? Emblements Trade Fixtures Chattel Real Property
Trade Fixtures
For tax purposes, real estate taxes can be deducted from personal income...? True False
True
Modular homes can typically be built quicker and at a lower cost as compared to homes constructed on-site...? True False
True