NC Real Estate Chapter 1 Review Questions Flashcards

NC Real Estate Chapter 1 Review Questions Flashcards The real estate market may be described in all the following

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

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

• A movable market

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

An increase in the economic supply of land has resulted

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

modification by improvements to the landC. High-Density developmentD. All of the above

• All of the above

The function of a real estate agent in dealings with buyers and sellers in the real estate market may be best described as which of the following?A. FinacierB. Counselor or advisorC. ContractorD. Salesperson

• Counselor or advisor

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

Which of the following has the greatest effect on real property value?A. Tax RatesB. LocationC. AvailabilityD.Indestructibility

• Location

All of the following are public land use restrictions

EXCEPT:A. Building codesB. Protective covenantsC.

ZoningD. Regional Planning

• Protective covenants

Scarcity and location are examples of:A. physical

characteristics of the landB. Highest and best useC.Permanence of investmentD. Economic characteristics of the land

• Economic characteristics of the land

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 feasible in the near futureD. All of the above

• All of the above

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

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

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

All of the following are separable ownerships in land

except:A. Surface of the landB. Area Below the surfaceC.

NonhomogeneityD. Air rights

• Nonhomogeneity

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

EXCEPT:A. FinancingB. ContractsC. Legal AdviceD.

Valuation of property

• Legal Advice

The term REALTOR designates:A. A real estate agent

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 of the above

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

state, and local association of REALTORS

An example of public land use control is:A. Restrictive

covenantsB. Zoning LawsC. Deed restrictionsD. Protective covenants

• Zoning Laws

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

Economic characteristics of real property include which of the following?A. LocationB. ImmobilityC. IndestructibilityD.Homogeneity

• Location

Which of the following is an example of the private control of land use?A. ZoningB. Restrictive covenantsC. Building codesD. Environmental controls

• Restrictive covenants

Physical characteristics of land include all of the following

EXCEPT:A. LocationB. NonhomgeneityC. PermanenceD.

Immobility

• Location