Chapter 1 - Review Questions Flashcards

Chapter 1 - Review Questions Flashcards The quality of the location of land and consequently the

value of the land can be changed by:A. the principle of

nonhomogeneityB. relocation of the landC. changes in the national scope of the real estate businessD. improvements to the land that result in accessibility not previously available

• improvements to the land that result in accessibility not

previously available Factors affecting supply and demand in real estate include

all of these items EXCEPT:A. government regulationsB.

interest ratesC. local economic conditionsD. real estate investment trusts

• real estate investment trusts

Which of the following is (are) accurate regarding a successful career in real estate?I. A successful career in real estate is based on ethical conduct and service to others.II. A successful career in real estate is based on knowledge of a great variety of subjects.A. I onlyB. II onlyC.both I and IID. neither I nor II

• both I and II

All of the following are separable ownership of land

EXCEPT:A. surface of the landB. area below the surfaceC.

nonhomogeneityD. air rights

• nonhomogeneity

An example of the public land use controls is:A. restrictive

covenantsB. zoning lawsC. deed restrictionsD. protective covenants

• zoning laws

Which of the following is an example of the private control of land use?A. zoningB. restrictive covenantsC. building codesD. environmental controls

• restrictive covenants

The real estate marker is subject to:I. the cyclic changes in

the notional economyII. the law of supply and demandA. I onlyB. II onlyC. both I and IID. neither I nor II

• both I and II

Economic characteristics of real property include which of the following?A. situsB. immobilityC. indestructibilityD.nonhomogeneity

• situs

Real estate investment offers the opportunity to produce a

profit in the following ways EXCEPT:A. appreciationB.

positive cash flowC. specific performanceD. tax advantages

• specific performance

The characteristic of land that causes the real estate market to be essentially a local market is the physical

characteristic of:A. indestructibilityB. immobilityC.

availabilityD. natural features

• immobility

All the following are public land use restriction EXCEPT:A.

building codesB. protective covenantsC. zoningD. regional

planning

• protective covenants

The real estate market may be described in all the following

ways EXCEPT:A. free marketB. local marketC. movable

marketD. market that is slow to react to changes in supply and demand

• movable market

Which of the following has the greatest effect on real property value?A. tax rateB. location/situsC. availabilityD.indestructibility

• location/situs

The real estate agent must have specialized knowledge of

a variety of subject that include the following EXCEPT:A.

financingB. contractsC. legal adviceD. valuation of property

• legal advice

The function of real estate agent in dealings with buyers and sellers in the real estate market may best be described as which of the following?A. financierB. counselor or advisorC. contractorD. salesperson

• counselor or advisor

The real estate market is:I. an example of the free market

conceptII. local in characterA. I onlyB. II onlyC. both I and IID. neither I nor II

• both I and II

The National Association of REALTORS is:A. a

government organizationB. a trade groupC. an organization for buyers and sellers of commercial real estateD. all of the above

• a trade group

The employment of the concept of highest and best use:A.

includes consideration of the physical and economic factors affecting land useB. results in the greatest present value of the landC. must be a use feasible in the near futureD. all of the above

• all of the above

Physical characteristics of land include all of the following

EXCEPT:A. situsB. nonhomogeneityC. performanceD.

immobility

• situs

The term REALTOR designates:A. any real estate

licenseeB. a real estate licensee who is a member of the national, state, and local association of REALTORSC. only licensees who hold broker's licensesD. all the above

• a real estate licensee who is a member of the national,

state, and local association of REALTORS An increase of the economic supply of land has resulted

from:A. increase utilization of the physical supply of landB.

modification by improvements to the landC. high-density developmentD. all the above

• all the above

The physical characteristics of land create a real estate market that has special features not inherent in other

markets, including:I. The characteristic that the real estate

market is slow to react to changes in the supply and demand of real estateII. the characteristic of the necessity for local specialists to adequately serve the buying and selling publicA. I onlyB. II onlyC. both I and IID. neither I nor II

• both I and II

A REALTOR must be:I. a licenseeII. a brokerA. I onlyB. II

onlyC. both I and IID. neither I nor II

• I only

The nonhomogeneity of land:A. is the basis for the legal

remedy of specific performanceB. results from the uniqueness of every parcel of real estateC. is a physical characteristic of landD. all of the above

• all of the above

Scarcity and situs are examples of:A. a physical

characteristics of the landB. highest and best useC.permanence of investmentD. economic characteristics of the land

• economic characteristics of the land

Which of the following statements regarding the real estate business is (are) correct?I. Real estate transactions can be traced to biblical times>II. The business of real estate brokerage is a product of the twentieth century.A. I onlyB. II onlyC. both I and IID. neither I nor II

• both I and II