Real Estate: Chapter 1 Quiz

Describe the economic characteristics of land:

1: Scarcity 2: Permanence of investment 3: Area of preference- (situs) 4: Improvements

Describe the physical characteristics of land:

1: Uniqueness; no 2 parcels are alike 2: Immovable 3: Indestructible

All of the following would affect demand EXCEPT: A: demographic B: population C: wage levels D: fiscal policy

A: demographic

The point at which supply & demand are balance is known as: A: equilibrium B: conformity C: balance D: highest & best use

A: equilibrium

Mr. Smith's real and personal property owned at the time of death is called his? A: estate B: will C: probate D: all of the above

A: estate

When is a bill of sale used to transfer the ownership of a specific item? A: personal property B: easements C: fixtures D: real property

A: personal property

The physical land above and below the earth's surface with all appurtenances, including all structures and any interest in land whether corporal or incorporeal, freehold or non-freehold, is called: A: real property B: appurtenance C: real estate D: land

A: real property

The allodial system of real estate which is the free and full ownership rights in the land by individuals is based on what real property law? A: Great Britain B: US C: UK D: Canada

B: US

Carr is interested in a house that fits most of her needs, but is located in a busy area where she is not sure she wants to live. Her concern about the property's location is called ? A: highest and best use B: area preference C: permanence of investment D: locality

B: area preference

According to textbooks, real estate can mean several things. Which of the following do NOT fit into the definition of real estate? A: newly planted rose bush B: farm equipment C: a garage D: a fence along the back of the property

B: farm equipment

Real estate is highly dependent on the local environment b/c of its: A: homogeneity B: immobility C: durability D: high capital value

B: immobility

Which of the following is not considered to be a physical characteristic of land? A: heterogeneity B: situs C: immobility D: indestructibility

B: situs

The rights, privileges and improvements that belong to you and pass with the transfer of property that are not necessarily part of the actual property are called: A: real property rights B: bundle of legal rights C: appurtenance's D: allodial system rights

C: appurtenance's

Land is considered to be: A: immune to the forces of supply & demand B: subordinate to real property rights C: indestructible D: a wasting asset

C: indestructible

Which of the following would be considered the correct and proper definition of real property? A: the natural items associated with real estate such as trees, soil, and rocks B: items located within the dwelling such as appliances, furniture and any accessories C: land & appurtenances, including anything of a stationary or permanent nature such as trees, rocks, structures, and minerals. D: All of the above

C: land & appurtenances

The phrase "bundle of legal rights" is properly included in: A: a legal description B: the definition of land C: the definition of real property D: leases for less than 1 year

C: the definition of real property

Which would NOT be considered real property? A: air rights B: house C: trade fixtures D: mineral rights

C: trade fixtures

The term land refers to all of the following EXCEPT: A: minerals B: trees C: air above the land D: a log home

D: a log home

Under the bundle of legal rights, which of the following could an owner of real estate legally do? A: sell the property B: take a mortgage out against the property C: lease the property D: all of the above

D: all of the above

An ownership concept describing all the legal rights that attach to the ownership of real property, including the right to sell, lease, encumber, use, enjoy, exclude, and devise by will is called: A: allodial system B: feudal system C: real property D: bundle of legal rights

D: bundle of legal rights

Which is NOT an economic characteristic of land? A: location B: scarcity C: ability to improve D: immobility

D: immobility

An ancient system of land ownership, where under old English common law the government or king held title to all lands is properly described as:

Feudal System

What is the difference between real estate and land?

The definition of real estate includes both natural and man-made things affixed to the parcel of property, whereas, land only includes the natural items attached to the property.