Unit 1- Real Estate Concepts Flashcards
Real property is defined as the land itself and any improvements on it, as well as any rights inherent in the ownership of real estate. True or False?
True
The primary characteristic of personal property is movability. True or False?
True
The two major classifications of property are
Personal property and real property
The word improvement refers to all of the following EXCEPT
Chattels
In general, when the supply of a certain commodity increases, prices
tend to drop
Which of the following is NOT an economic characteristic of real estate?
Indestructibility
A theater or hotel would be classified under the real estate category of
commercial
In North Carolina, the term provisional broker refers to
A licensee who must operate under the supervision of a broker-in charge
Highest and best use of real estate will
Maximize the property’s value
In general terms, a market refers to which of the following?
Amount of goods available at a given price
The point at which supply and demand are balanced is known as
equilibrium
A businessman buys tracts of land, makes improvements to the land, such as utilities and roads, and constructs buildings. The improved lots are then sold to the general public. He is engaged in the real estate business as
a developer
Under this concept, land’s value will be maximized and will give owners the greatest actual return on their investment. This concept is called
Highest and best use
One of the disadvantages to real estate investment is that land
lacks liquidity
Although well-located and fairly-priced real estate investments have historically shown a good rate of return, there are disadvantages to real estate investment. Which of the following is NOT a typical disadvantage of using real estate as an investment?
Real estate tends to keep pace with inflation
