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NC Real Estate Principles & Practices > Questions - Chapter 1 > Flashcards

Questions - Chapter 1 Flashcards

1
Q

All of the following are separable ownerships in land EXCEPT:

A. surface of the land.
B. area below the surface.
C. nonhomogeneity.
D. air rights.

A

1-1 C

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2
Q

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.

A

1-2 B

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3
Q

The nonhomogeneity of land:

A. is the basis for the legal remedy of specific performance.
B. results from the uniqueness of every parcel of real estate.
C. is a physical characteristic of land.
D. all of the above.

A

1-3 D

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4
Q

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.

A

1-4 D

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5
Q

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.

A

1-5 D

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6
Q

The employment of the concept of highest and best use:

A. includes consideration of the physical and economic factors affecting 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.

A

1-6 D

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7
Q

An example of public land use controls is:

A. restrictive covenants.
B. zoning laws.
C. deed restrictions.
D. protective covenants.

A

1-7 B

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8
Q

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.

A

1-8 C

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9
Q

The real estate market may be described in all the following ways EXCEPT:

A. a free market.
B. a local market.
C. a movable market.
D. a market that is slow to react to changes in supply and demand.

A

1-9 C

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10
Q

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

A

1-10 B

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11
Q

The real estate agent must have specialized knowledge of a variety of subjects that include all of the following EXCEPT:

A. financing.
B. contracts.
C. legal advice.
D. valuation of property.

A

1-11 C

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12
Q

Economic characteristics of real property include which of the following?

A. location
B. immobility
C. indestructibility
D. nonhomogeneity

A

1-12 A

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13
Q

Economic characteristics of real property include which of the following?

A. location
B. immobility
C. indestructibility
D. nonhomogeneity

A

1-13 A

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14
Q

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

A

1-14 B

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15
Q

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 broker’s licenses.
D. all of the above.

A

1-15 B

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16
Q

Physical characteristics of land include all of the following EXCEPT:

A. location.
B. nonhomogeneity.
C. permanence.
D. immobility.

A

1-16 A

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17
Q

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.

A

1-17 B

18
Q

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.

A

1-18 D

19
Q

Scarcity and location are examples of:

A. physical characteristics of the land.
B. highest and best use.
C. permanence of investment.
D. economic characteristics of the land.

A

1-19 D

20
Q

All of the following are public land use restrictions EXCEPT:

A. building codes.
B. protective covenants.
C. zoning.
D. regional planning.

A

1-20 B

21
Q

All of the following factors would affect supply, EXCEPT:

A. population
B. construction costs
C. government controls
D. the labor force

A

T1-1 A

Population is an element affecting the demand of housing not the supply.

22
Q

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

T1-2 A

A decrease in the number of homes on the market would cause prices to rise.

23
Q

All of the following are physical characteristics of land, EXCEPT:

A. indestructibility
B. uniqueness
C. immobility
D. scarcity

A

T1-3 D

Land is not considered to be scarce, though there is a finite supply of land.

24
Q

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

A

T1-4 B

The only educational requirement for a NC real estate license is completion of a 75 hour course.

25
Q

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 postlicensing in the first 3 years, completing at least 30 hours every year by June 10
C. must complete 90 hours of postlicensing in the first 3 years and complete 8 hours of CE every year prior to the second renewal of their real estate license
D. the renewal date for postlicensing and CE is June 10

A

T1-5 C

26
Q

How are 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.

A

T1-6 C

The governor appoints seven members and the house and the senate each appoint one.

27
Q

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 consumers

A

T1-7 A

The NCREC is not empowered to fine a licensee, although they can reprimand the licensee and suspend or revoke the license.

28
Q

All of the following are economic characteristics of real property, EXCEPT:

A. scarcity
B. immobility
C. location
D. permanence

A

T1-8 B

Immobility is a physical characteristic of land, not an economic one.

29
Q

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

T1-9 A

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.

30
Q

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

A

T1-10 B

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.

31
Q

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.

A

T1-11 B

Real estate cycles tend to follow economic developments and the market is constantly going through periods of change.

32
Q

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.

A

T1-12 C

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.

33
Q

The North Carolina Real Estate Commission has the authority to:

A. regulate the commissions and fees charged by licensees
B. discipline a REALTOR for breach of the Code of Ethics
C. fine a licensee for violations of license law
D. require licensees to obtain education

A

T1-13 D

NCREC imposes initial course requirements, postlicensing course requirements and CE requirements on licensees, all relating to their education.

34
Q

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

A

T1-14 B

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.

35
Q

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

T1-15 A

The value of real estate is primarily dictated by location.

36
Q

In determining the value of a property the location is important. Factors in the community which cause businesses to relocate there and the ability to attract new businesses is known as the:

A. the zoning overlays
B. the area’s market value
C. life cycle of the community
D. the economic base

A

T1-16 D

37
Q

What is the length of the NC real estate licensing examination eligibility period?

A. 75 hours
B. 30 days
C. 90 days
D. 180 days

A

T1-17 D

The examination eligibility period starts on the day a license application is filed. Candidates must pass the state licensing examination within 180 days or a new application is required.

38
Q

All of the following will result in a forfeiture of license application and examinations fees, EXCEPT:

A. Failing to take the examination within 90 days of license application
B. Failing to appear for an examination appointment
C. Appearing more than 15 minutes late for an examination appointment
D. Failing to produce a proper ID at the time of examination

A

T1-18 A

Licensees have 180 days within which to take the examination following application

39
Q

What is the name of the publication that contains information for candidates taking the North Carolina real estate licensing examination?

A. NC Real Estate Commission Bulletin
B. RELINC - Real Estate Licensing in North Carolina
C. North Carolina Administrative Rules
D. North Carolina General Statutes

A

T1-19 B

A copy of RELINC was provided to you with your student materials and Adventure Guide or may be downloaded from NCREC.gov

40
Q

If a candidate is denied a license due to information obtained in the mandatory criminal background check, how long do they have to request a hearing with NCREC?

A. 30 days
B. 60 days
C. 90 days
D. 180 days

A

T1-20 B

The criminal background check is obtained by the candidate at NCREC.Check.com. The background check will be reviewed by NCREC after the candidate passes the examination and before a license is issued.

NC Real Estate Principles & Practices (43 decks)

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