Unit 1 Chapter 3

Question 1

Characteristics of real property

Answer 1

 Physical – immobility, indestructibility, uniqueness

Economic – supply and demand, scarcity, permanence of investment

Question 2

Property classifications

Answer 2

 Real vs personal – personal is movable, real is not
 Tangible vs intangible – tangible is physical, visible, material, while intangible is abstract with no
physical existence

Question 3

Types and uses of real property

Answer 3

 Residential – human habitation
 Investment – non owner occupied
 Unimproved land – no buildings or residents
 Industrial – warehouses, factories, distribution centers, power plants
 Commercial – potentially generate income from business usage
 Agricultural – crops and livestock
 Special purpose – parks, shorelines, churches, schools, government buildings, etc.