Ch 1 Review Questions

Question 1

All of the following are separable ownerships in land except
A.Surface of the land
B. Area below the surface
C. Non homogeneity
D. Air Rights

Answer 1

C Nonhomogeneity

Question 2

The characteristic of land that causes the real estate market to be essentially a local market is the physical characteristic of:
A. Indestructibility 
B. Immobility
C. Availability
D. Natural features

Answer 2

B Immobility

Question 3

The non homogeneity of land:
A. is the bases for the legal remedy of specific performance
B. Results from the uniqueness of every parcel of real estate
C. Is the physical characteristic of land
D. All of the above

Answer 3

D. All of the above

Question 4

An increase in the economic supply of land has resulted from:
A. Increased utilization of the physical supply of land
B. Modification by improvements to the land
C.High-density development
D.All of the above

Answer 4

D all of the above

Question 5

The quality of the location of land and consequently the value of the land can be changed by
A. The principle of Nonhomogeneity
B. Relocation of the land
C. Changes in the national scope of the real estate business
D. Improvements to the land that result in accessibility not previously available.

Answer 5

D. Improvements to the land that result in accessibility not previously available.

Question 6

The employment of the concept of highest and best use:
A. Includes consideration of the physical and economy related factors affecting the land use.
B. Results in the greatest present value of the land
C. Must be a use feasible in the near future.
D. All of the above

Answer 6

D. All of the above

Question 7

An example of public land use controls is:
A. Restrictive covenants
B. Zoning Laws
C. Deed restrictions
D. Protective covenants

Answer 7

B. Zoning Laws

Question 8

Real estate investment offers the opportunity to produce a profit in the following ways except:
A. Appreciation
B. Positive cash flow
C. Specific performance 
D. Tax advantages

Answer 8

C. Specific performance

Question 9

The physical characteristics of land create a real estate market that has special features not inherent in other markets including
I. The characteristic that the real estate market is slow to react to changes in the supply and demand for real estate
II. The characteristic of the necessity for local specialists to adequately serve the buying and selling public

Answer 9

I and II

Question 10

The real estate market may be described in all of the following ways except:
A. Free market
B. Local market
C. Moveable market
D. Market that is slow to react to changes in supply and demand.

Answer 10

C. Moveable market

Question 11

The function of a real estate agent in dealings with buyers and sellers in the real estate market may best be described as which of the following?
A. Financier
B. Counselor or advisor
C. Contractor
D. Salesperson

Answer 11

B. Counselor or advisor

Question 12

The real estate agent must have specialized knowledge of a variety of subjects that include the following except:
A. Financing
B. Contracts
C.Legal Advice
D. Valuation of property

Answer 12

C.Legal Advice

Question 13

Which of the following is (are) accurate regarding a successful career in real estate?
I> A successful career in real estate is based on ethical conduct and service to others.
II a successful career in real estate is based on knowledge of a great variety of subjects

Answer 13

Both I and II

Question 14

Economic characteristics of real property include which of the following?
A.Situs
B. Immobility
C. Indestructibility 
D. Nonhomogeneity

Answer 14

A.Situs

Question 15

Which of the following has the greatest effect on real property value?
A. Tax rates
B. Location/Situs
C. Availability
D. Indestructibility

Answer 15

B. Location/Situs

Question 16

Which of the following is an example of the private control of land use?
A. Zoning
B. Restrictive covenants
C. Building codes
D. Environmental controls

Answer 16

B. Restrictive covenants

Question 17

The real estate market is:
I. An example of the free market concept
II. Local in character

Answer 17

I & II

Question 18

The term Realtor designates
A. Any real estate licensee
B. A real estate licensee who is a member of the national, state and local association of Realtors.
C. Only licensees who hold brokers licenses.
D. All of the above

Answer 18

B. A real estate licensee who is a member of the national, state and local association of Realtors.

Question 19

The real estate market is subject to
I. The cyclic changes in the national economy
II. The law of supply and demand

Answer 19

I and II

Question 20

Which of the following statements regarding the real estate business is (are) correct:
I. Real estate transactions can be traced to biblical times
II the business of real estate brokerage is a product of the twentieth century

Answer 20

I and II

Question 21

Physical characteristics of land included all of the following except:
A. Situs
B. Nonhomogeneity
C. Performance
D. Immobility

Answer 21

A. Situs

Question 22

The national association of realtors is 
A. A government organization
B. A trade group
C. An organization for buyers and sellers of commercial real estate
D. All of the above

Answer 22

B. A trade group

Question 23

Factors affecting supply and demand in real estate include all of these items EXCEPT:
A. Government regulations
B. Interest rates
C. Local economic conditions
D. Real estate investment trusts

Answer 23

D. Real estate investment trusts

Question 24

A realtor must be:
I a licensee
II a broker

Answer 24

I a licensee

Question 25

Scarcity and situs are examples of 
A. Physical characteristics of the land
B. Highest and best use 
C. Permanence of investment
D. Economic characteristics of the land

Answer 25

D. Economic characteristics of the land

Question 26

All of the following are public land use restrictions except:
A. Building codes
B. Protective covenants
C. Zoning
D. Regional planning

Answer 26

B. Protective covenants