Chapter 01: Basic Real Estate Concepts Flashcards
All of the following factors would affect supply, EXCEPT
A. population
B. construction costs
C. government controls
D. the labor force
A. population
When the supply of a commodity decreases:
A. prices tend to rise
B. prices tend to drop
C. demand tends to rise
D. demand tends to drop
A. prices tend to rise
All of the following are physical characteristics of land, EXCEPT:
A. indestructibility
B. uniqueness
C. immobility
D. scarcity
D. scarcity
All of the following are required of a candidate to obtain a NC Real Estate Brokers License, EXCEPT:
A. minimum age of 18
B. high school diploma
C. good character
D. formal background check
B. high school diploma
Which of the following is correct regarding the educational requirements of a provisional broker?
A. must complete 90 hours of CE in the first 3 years
B. must complete 90 hours of post-licensing in the first 3 year, completing at least 30 hours every year by June 10
C. must complete 90 hours of post-licensing in the first 18 months of being licensed and complete 8 hours of CE every year prior to the second renewal of their real estate license
D. the renewal date for post-licensing and CE is June 10
C. must complete 90 hours of post-licensing in the first 18 months of being licensed and complete 8 hours of CE every year prior to the second renewal of their real estate license
How are the members of the NC Real Estate Commission chosen?
A. they are elected by the public at large
B. they are appointed by the governor
C. seven are appointed by the governor and 2 are appointed by the legislature
D. four are appointed by the legislature and 3 are appointed by the governor
C. seven are appointed by the governor and 2 are appointed by the legislature
It is the job of the NC Real Estate Commission to perform all of the following, EXCEPT:
A. fine licensees who violate the rules or statutes
B. provide information to licensees and the public
C. regulate and educate licensees
D. protect the public and consumer
A. fine licensees who violate the rules or statutes
All of the following are economic characteristics of real property, EXCEPT:
A. scarcity
B. immobility
C. location
D. permanence
B. immobility
(Immobility is a physical characteristic of land, not an economic one)
The fact that real estate licensees must be licensed in the state where the real estate is located and not where the client is located occurs:
A. because individual state regulatory agencies create rules that govern their licensees
B. because they are subject to requirements in the national and state constitutions
C. only in NC
D. because of the concept of highest and best use
A. because individual state regulatory agencies create rules that govern their licensees
(Each state has different laws and rules regarding licensure. You must be licensed in the state where the property is located that is being transferred)
Highest and best use would best be defined as:
A. the use that produces the highest sales price for the property
B. the one use that provides the greatest return and maximizes the value of the real estate
C. the categorization of the multiple ways in which a property may be utilized
D. the existing and current use of the property
B. the one use that provides the greatest return and maximizes the value of the real estate
(At any given time there is only one highest and best use and it is the use which provides the greatest return and maximizes the value of the real estate)
In regard to real estate’s role in economic cycles, which of the following statements is correct?
A. real estate is a stable market that does not fluctuate
B. real estate is a lagging indicator and contains periods of expansion, recession, depression, and revival
C. real estate is a leading indicator of economic cycles
D. real estate cycles are easily predictable
B. real estate is a lagging indicator and contains periods of expansion, recession, depression, and revival
(Real estate cycles tend to follow economic developments and the market is constantly going through periods of change)
In regard to the composition of the NC Real Estate Commission, which of the following statements is correct?
A. it must be composed of at least 5 people who are real estate licensees
B. three of the people on the commission must be laypeople
C. at least 3 of the members must be licensees and 2 must be laypeople
D. at least 3 of the members must be laypeople and 2 must be licensees
C. at least 3 of the members must be licensees and 2 must be laypeople
(Three members must have licenses, 2 people must be laypeople and the remaining 4 can be in either category, but are typically real estate professionals)
The NCREC has the authority to:
A. regulate the commissions and fees charged by licensees
B. discipline a REALTOR for breach of Code of Ethics
C. fine a licensee for violations of license law
D. require licensees to obtain education
D. require licensees to obtain education
(NCREC imposes initial course requirements, post-licensing course requirements and CE requirements on licensees, all relating to their education)
Under the doctrine of specific performance, the party harmed by breach of a real estate contract can ask a judge to force the breaching party to carry out the terms of the contract rather than order the breaching party to pay monetary damages. Which physical characteristic of land is the basis for the doctrine of specific performance?
A. indestructibility
B. uniqueness
C. immobility
D. permanence of investment
B. uniqueness
(Because properties are unique, when a contract is breached a party may be required to complete the transfer as this may be the only equitable remedy for the non-breaching party)
Which of the following is considered to have the greatest impact on the value of a property?
A. area preference
B. permanence of investment
C. scarcity
D. uniqueness
A. area preference
(The value of real estate is primarily dictated by location)
