Chapter 1 Flashcards
Ownership of land involves only the surface and the dirt below, NOT the air above it.
True
The immobility of land hurts its value in a bad market.
True
A single-family residence that is converted into a doctor’s office is categorized as mixed-use space.
False
Most real estate licensees are employees of a brokerage firm.
False
A real estate licensee who is an independent contractor is paid based on successful real estate transactions, not on hours worked.
True
Real estate cycles tend to lag somewhat behind general business cycles in response to supply and demand.
True
As the supply of homes in the area rises, what would you expect to happen to home prices in the short term?
Home prices will fall.
The theory of supply and demand states that when supply exceeds demand, prices will fall.
True
Do you think higher property taxes tend to encourage or discourage spending and investing?
Discourage
Nick is preparing to build a pool and deck in his backyard. The contractor just delivered a load of lumber and concrete to his house in preparation for construction beginning next week. That lumber and concrete would be considered
personal property.
Which is NOT an example of an improvement?
the line of pine trees planted along the edge of the property
A property that houses a research and development facility is typically categorized as
industrial property.
Uniqueness and scarcity help the value of real estate because
no two properties are exactly the same.
LLC Investments owns a building with two specialty stores on the first floor, office space on the second floor, and a loft apartment on the top floor. This is an example of
mixed-use property.
At the end of the year, what form will a real estate salesperson who files a tax return as an independent contractor receive that details his or her compensation for the year?
1099
