Part 1 - Practice Test Flashcards

Part 1 - Practice Test Flashcards What physical characteristic makes real estate easy for local governments to tax and causes it to be heavily influenced by changes in the surrounding areas?A.IndestructibilityB. NonhomogeneityC. ImmobilityD. Situs Immobility Which of the following describes the act by which real property can be converted to personal property?A.SeveranceB. AccessionC. ConversionD. Separation Severance A buyer and a seller of a home are debating whether a certain item is real or personal property. The buyer believes it is real property and should be conveyed with the house; the seller believes it is personal property and may be conveyed separately with a bill of sale. In determining whether the item is real or personal property, a court would

consider all of the following EXCEPT:A. adaptation of the

item to the real estateB. The method of attachmentC.Permanence of the InstallationD. The length of time the item has been attached to the property.The length of time the item has been attached to the property.Which economic characteristic of real estate refers to the concept that changes in a parcel of land affect its value

either favorably or unfavorably:A. FixityB. ScarcityC.

NonhomogeneityD. Modifications Modifications A tenant occupies a rental unit in an apartment building and, without notifying the owner, installs new wooden kitchen cabinets. At the end of the lease, the tenant wishes to remove the cabinets. Which of the following is TRUE regarding removal of the cabinets?A. The cabinets may be removed by the tenantB. The cabinets may be removed, but the tenant is entitled to compensationC. The cabinets must stay, but the tenant is entitled to compensationD. The cabinets must stay The cabinets must stay A system of laws that recognizes private ownership of land

is called:A. The allodial systemB. common lawC. statute

lawD. feudal law The allodial system Property management, appraisal, financing, and

development are all examples of:A. Factors affecting

demand for real estateB. services provided by the real estate industryC. non-real estate professionsD.government regulation of the real estate industry services provided by the real estate industry Laws based on custom and usage that have been

developed through the years by the courts are called:A.

The allodial systemB. common lawC. statute lawD.

emblements Common law An office building is an example of which type of real estate?A. ResidentialB. Special purposeC. IndustrialD.

Commercial Commercial

Which of the following is included in the definition of real estate but NOT the definition of land?A. The air rightsB.The property's surfaceC. Below the property to the center of the earthD. Fixtures on the property Fixtures on the property Store shelves and restaurant equipment are examples of which of the following?a. Real propertyb. Real estatec.Trade fixturesd. General Fixtures Trade fixtures Intent of the parties, method of annexation, adaptation to real estate, and agreement between the parties are the

legal tests for determining whether an item is:A. a trade

fixture or personal propertyB. Real property or real estateC.a fixture or personal propertyD. an improvement a fixture or personal property James is building a new enclosed front porch on his home.A truckload of lumber has been left on James' driveway for use in building the porch. At this point, the lumber is considered which kind of property?A. A fixture because it will be permanently affixed to existing real propertyB.Personal propertyC. Real propertyD. A trade fixture Personal property In general, when the supply of real estate increases,A.Prices tend to increaseB. prices tend to decreaseC.demand tends to increaseD. demand is unchanged prices tend to decrease

Included in the term real property is:A. Anything

permanently affixed to the landB. the air rights to the propertyC. mineral rights to the propertyD. all of the above all of the above the economic characteristic of situs refers to which of the following?A. No two parcels of land are exactly alikeB.There may not be enough land in certain areas to satisfy demandC. People prefer certain areasD. land cannot be destroyed People prefer certain areas A restaurant owner occupying a leased space in a commercial building installs a large neon sign in the

window. The sign would probably be considered:A. An

emblementB. a trade fixtureC. real propertyD. a fixture a trade fixture Which of the following is considered personal property?A.Trees growing on the propertyB. Trade fixtures installed on the propertyC. A garageD. A driveway Trade fixtures installed on the property The economic characteristic of permanence of investment refers to which statement?A. Investments in real estate are usually for the long termB. Land cannot be destroyedC.Land cannot be removedD. No two parcels of land are exactly alike Investments in real estate are usually for the long term Of the following items, which is considered personal property?A. A store's display countersB. A garageC. An installed dishwasherD. Growing bushes A store's display counters