RECP Indiana Comprehensive Practice Flashcards

RECP Indiana Comprehensive Practice Flashcards Which of the following does NOT affect how quickly the forces of supply and demand work?a) degree of standardization of the productb) mobility of the productc) degree of standardization of the product's priced) mobility of the parties to the transaction c In determining whether an item is real or personal property, a court would not consider which of the following?a) the cost of the item when it was purchasedb) whether its removal would cause severe damage to the real estatec) whether the item is clearly adapted to the real estated) any relevant agreement of the parties in their contract of sale a The rights of ownership of real property do NOT include the

right of:a) dispositionb) exclusivityc) controld) compatibility

d An increase in the following would affect supply EXCEPTa) populationb) construction costsc) governmental controlsd) the labor force b An owner conveys ownership of his residence to his church but reserves for himself a life estate in the residence. The future interest held by the church is aa) pur autre vieb) remainderc) reversiond) leasehold b When the supply of a commodity decreases while demand remins the same, price tends toa) riseb) dropc) be unaffectedd) go in the direction of supply a One factor that would NOT affect the desirability of the

location of a residence would be:a) retirement prospectsb)

employment opportunitesc) social servicesd) cultural advantages a The buyer of a 125000 home has paid 2000 as earnest money and has a loan commitment for 70% of the purchase price. The balance of the cash the buyer needs to

complete the transaction is:a) 3500b) 35500c)

37000d)37500 b A truckload of lumber that a homeowner purchased has been left in the driveway for use in building a porch. The lumber is considereda) real propertyb) personal propertyc) a chattel that is real propertyd) a trade or chattel fixture b Schools would be considered part of which real estate classification?a) special-purposeb) industrialc) commerciald) residential a) All of the following affect how quickly the forces of supply and demand work EXCEPTa) DEGREE OF

STANDARDIZATION OF THE PRODUCTB) MOBILITY OF

THE PRODUCTC) DEGREE OF STANDARDIZATION OF

THE PRODUCT'S PRICED) MOBILITY OF THE PARTIES

TO THE TRANSACTION

c

A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2000 employees, to a small town. What effect will this announcement MOST likely have on the small town's housing market?a) houses will likely become less expensiveb) houses will likely become more expensivec) because the announcement involves an issue of demographics, not of supply and demand, housing prices will stay the same.d) the announcement involves an industrial property; residential housing will not be affected.b) Property management, appraisal, financing, and

development are all examples of:a) factors affecting

demand.b) specializations within the real estate industryc) non-real estate professionsd) activities requiring broker management and supervision b) A person or company responsible for maintaining a client's property and maximizing the return on the client's

investment is serving as:a) rental agentb) a building

maintenance specialistc) a property managerd) an investment counselor c One who has ownership rights of real estate that could continue forever and which provide that no other person can claim to be the owner of or have any ownership control over the property hasa) fee simple interestb) life estatec) determinable feed) condition subsequent a Which of the following is not included in one's right to control their property?a) the right to invite people on the property for a political fundraiserb) the right to exclude the utilities meter readerc) the right to erect "no trespassing" signsd) the right to enjoy pride of ownership b Which of the following is a physical characteristic of land?a) indestructibilityb) improvementsc) area preferenced) scarcity a A property owner's land is located along the banks of a river. This owner's water rights are calleda) littoral rightsb) prior appropriation rightsc) riparian rightsd) hereditaments c A property on Main Street that was formerly a retail store will become the site of a new city hall, made possible by the government's power ofa) escheatb)possibility of reverterc) eminent domaind) taxation c The point at which supply and demand are balanced is

known as:a) highest and best useb) balancec) conformityd)

equilibrium d In general, when the supply of a certain commodity

increases:a) price tends to riseb)price tends to dropc)

demand for it tends to rised) demand for it tends to drop b)