is NOT an example of one of them?A Local zoning lawsB

Principles of Real Estate, Unit 1 Flashcards There are seven sources of law in the United States. Which is NOT an example of one of them?A) Local zoning lawsB) FHA/VA regulationsC) Court decisionsD) Precedent set by decisions of the city council

• Precedent set by decisions of the city council

Laws passed by Congress and various state legislatures mayA) not designate penalties and violationsB) set precedents for future court decisions.C) authorize agencies to pass rules and regulations to enforce the provisions of the law.D) clarify and interpret court decisions

• authorize agencies to pass rules and regulations to

enforce the provisions of the law.Which physical and economic factors would NOT be a consideration for a land developer in determining the optimum use for a parcel of land for industrial purposes?A) TransportationB) Natural resources availableC) Public improvementsD) Indestructibility

• Indestructibility

Relative scarcity implies thatA) land available for development is scarce throughout Texas.B) land available for development may be in short supply in some areas.C) families may place different values on similar properties.D) families may prefer one area if a city over another.

• land available for development may be in short supply in

some areas.The term area preference refers toA) a physical characteristic of land.B) non-homogeneityC) relative scarcity.D) an economic characteristic of land.

• an economic characteristic of land.

The term non homogeneity refers toA) land's durability and indestructibilityB) capital expenditures represented by a fixed investment.C) the fact that no two parcels of land are exactly alike.D) the fact that the geographic location of land cannot be changed.

• the fact that no two parcels of land are exactly alike.

The factors that influence the demand for real estate include.A) wage levels and employment opportunities.B) local government ordinances.C) scarcity of building materials.D) labor supply.

• wage levels and employment opportunities.

The real estate market is considered local in character because.A) parcels of land are likely to be similar and confusion could occur concerning similar parcels in two different locations.B) each state has its own licensing requirements for real estate sales agents.C) land is fixed, or immobile.D) local taxation policies affect real estate values.

• land is fixed, or immobile.

Constitutional provisionsA) establish the rights of citizens and delineate government authority.B) set down specific provisions on every issue.C) can be waived by signing a

release.D) designate penalties and violations.

• establish the rights of citizens and delineate government

authority.

Value is best defined asA) the highest price that a property will bring.B) capital outlay for land, labor, materials, and profits.C) a measure of the present worth of future benefits as perceived by each person.D) the amount a buyer agrees to pay and a seller agrees to accept.

• a measure of the present worth of future benefits as

perceived by each person.In general, when the supply of a certain commodity increases,A) prices tend to rise.B) prices tend to remain level.C) prices tend to drop.D) demand tends to drop.

• prices tend to drop.

Real Estate license lawsA) are consistent from state to stateB) apply only to licensed brokers.C) were passed to protect the public from the possible fraud, dishonesty, and incompetence of unscrupulous brokers and sales agents.D) apply to persons who sell their own property.

• were passed to protect the public from the possible

fraud, dishonesty, and incompetence of unscrupulous brokers and sales agents.Common lawA) is derived from practices developed in the Spanish Empire.B_) has no effect on today's real estate practicesC) includes both custom and court decisions in its application today.D) establishes the limitations of municipal court decisions.

• includes both custom and court decisions in its

application today.A factor that affects supply in the real state market.A) construction costs.B) populations.C) wage levels.D) demographics,

• construction costs.

Price is BEST defined asA) the highest dollar amount a property will bring.B) the most likely amount a property will bring.C) the capital outlay for land, labor, materials, and profits.D) the amount a buyer agrees to pay and a seller agrees to accept.

• the amount a buyer agrees to pay and a seller agrees to

accept.Brenda holds a real estate license and has several years of experience in the industry. However, she has "retired" from actively marketing properties and now helps clients choose among the various alternatives involved in purchasing, using, or investing in property. What is her profession?A) Real estate counselorB) Real estate appraiserC) Real estate educatorD) REALTOR®

• Real estate counselor

Which is an example of special-purpose real estate?A) A public library.B) A shopping centerC) An industrial parkD) An apartment complex

• A public library.

A REALTOR® isA) a specially licensed real estate professional who acts as a point of contact between two or more people in negotiating the sale, purchase, or rental of a property.B) any real estate broker or sales agent who assists buyer, sellers, landlords, or tenants in any real estate transaction.C) a real estate license holder who is a member of the National Association of REALTORS®D) a member of the National Association of Real Estate Brokers who specializes in residential properties.

• a real estate license holder who is a member of the

National Association of REALTORS®

Peyton is a real estate broker in a large metropolitan area.Chances are his real estate firmA) deals in most or all the various real estate specializations.B) deals only in farm property.C) deals only in insurance.D) specializes in only one or two types of property

• specializes in only one or two types of property

The legal concept of precedentA) applies only to state court decisionsB) must always be followed by judges when formulating court decisions.C) grew out of common law.D) binds courts in all jurisdictions, regardless of superior authority.

• grew out of common law.

Which is an example of commercial real estate?A) an office building converted to low-income housing.B) An apartment for rent.C) Retail space for lease.D) A factory.

• Retail space for lease.

In general terms, the term market refers to which of the following?A) A place where buyers and sellers come together to establish prices.B) The amount of goods available at a given price.C) An estimate of the selling price.D) The amount of goods bought at a given price.

• A place where buyers and sellers come together to

establish prices.Which is an example of an economic characteristic of land?A) ImmobilityB) Non-homogeneityC) ImprovementsD) Indestructibility

• Improvements

Business cyclesA) recur at regular intervals.B) cannot be regulated by government fiscal and monetary policy.C) involve periods of expansions, recession, depression, and revival.D) occur simultaneously throughout the state.

• involve periods of expansions, recession, depression,

and revival.Compared with typical markets, the real estate marketA) is relatively quick to adapt to the forces of supply and demand.B) is national in scope.C) is relatively slow to adjust because of it non-homogeneity and its immobile characteristics.D) does not have the problem of oversupply.

• is relatively slow to adjust because of it

non-homogeneity and its immobile characteristics.Professional associations of specialist in various fields of real estate activity were organized to serve the interests of their members. Which is NOT generally a service expected of such organizations?A) Keeping members informed of developments in their field.B) Improving standards and practicesC) Providing a clearinghouse of information.D) Passing laws to regulate brokers and sales agents.

• Passing laws to regulate brokers and sales agents.