UNIT 1 QUIZ - Modern REAL ESTATE Practice In Pennsylvania- 14th

UNIT 1 QUIZ - Modern REAL ESTATE Practice In Pennsylvania- 14th Edition Flashcards A buyer is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. Her concern about the property's location is calleda) Physical deterioration.b) Area preference.c) Permanence of investment.d) Immobility.

b) AREA OF PREFERENCE. The uniqueness of people's

preferences results in different values for similar units. Area of preference is the most important economic characteristic of land.Real property can be converted into personal property througha) severance.b) accession.c) conversion.d) inference.

a) SEVERANCE. It is posible to change an item of real

estate to personal property by severance. A growing tree is real estate until the owner cuts it dow, at which point the lumber becomes personal property.Which of the following is required in Pennsylvania real estate transactions?a) Mine Subsidence Statementb) Hazardous Structural Damage Statementc) Coal Mining Noticed) Notice of Mine Subsidence Activity

c) COAL MINING NOTICE. Because of the posibility of

mine subsidence, Pennsylvania law requires that the sellers provide a Coal Mining Notice to purcharsers indicating that the structure of the land may not be protected against damage caused by subsudence caused by coal mining. Special Insurance is available to cover damage by mine subsidence.Which of the following is considered to have the greatest impact on the value of a property?a) Uniquenessb) Permanence of investmentc) Scarcityd) Area preference

d) AREA OF PREFERENCE. Also known as situs, refers

not only to the geography but also to people's preference for a specific are; it is the unique qualityof these preferences that results in the different price points for similar properties. Location is often the single most important economic characteristic of land.The tenant of a single-family home installs an awning over the building's front windows to keep the sun away from some delicate hanging plants.Which of the following is TRUE?a) The tenant must remove the awning before the rental period is over.b) Because of its nature, the awning is considered personal property.c) The awning is considered a fixture.d) Because of the nature of the property, the awning is considered a trade fixture.

c) THE AWNING IS CONSIDERED A FIXTURE. Once

attached to the real estate, the awning becomes a fixture and is therefore classified as real estate. The facts that it was attached by the tenant rather than the owner is not relevant.Which of the following would NOT be a consideration when determining whether an item is real property?a) Cost of the item when purchasedb) Method of its attachment to other real propertyc) Intended use of the item by its ownerd) Manner in which the item is actually used with other real property

a) COST OF THE ITEM WHEN PURCHUSED. Tests use

to determine whether an article is a fixtureinclude intention, manner of annexation, adaptation to real estate, anad existance of an agreement.The term NONHOMOGENEITYrefers toa) scarcityb) Immobilityc) Uniquenessd) indestructibility

c) UNIQUENESS. Nonhomogeneity is another way of

stating one of the physical characteristics of land, the characteristic that recognizes that land is unique.

Which phrase BEST describes real state?a) Land and the air above itb) Land and all things permanently attached by naturec) Land and all things permanently affixed to itd) Land and minerals rights in the land

c) LAND AND ALL THINGS PERMANENTLY AFFIXED TO

IT . Real estate includes in its definition all things permanently attached to the land either by nature or by man.What is the purpose of real estate license laws?a) To limit the number of real estate licenseesb) To protect the public from fraud, dishonesty and incompetencec) To ensure that there are agents to meet the needs of the publicd) To prevent any one company from monopolizing the marketplace

b) TO PROTECT THE PUBLIC FROM FRAUD,

DISHONESTY, AND INCOMPETENCE. Because real estate licensees are invloved with other people's real estate and money, states require a certain amount of education before granting a real estate license.While moving into a newly purchased home, the buyer discovered that the seller had taken the ceiling fan that hung over the dining room table. The seller had not indicated that the ceiling fan would be removed, and the contract did not address this issue. Which statement is TRUE?a) Ceiling fans are normally considered to be real estate.b) The ceiling fan belongs to the seller.c) Ceiling fans are considered trade fixtures.d) Ceiling fans are considered personal property.

a) CEILING FANS ARE NORMALLY CONSIDERED REAL

ESTATE. When in a box, a ceiling fan is personal property, but once it's installed in the ceiling, it is considered real property.Which of the following is NOT an economic characteristic of real estate?a) Indestructibilityb) Permanence of investmentc) Location or area preferenced) Scarcity

a) INDESTRUCTIBILITY. Refers to a physical

characteristic of real estate, not an economic characteristic.A buyer purchased a parcel of land and immediately sold the mineral rights to an oil company. The buyer gave up which of the following?a) Air rightsb) Surface rightsc) Subsurface rightsd) Occupancy rights

c) SUBSURFACE RIGHTS. Mineral rights are subsurface

rights to the natural resources lying below the earth's surface.A homeowner is building an enclosed front porch on his home. A truckload of lumber that the homeowner purchased has been left in the driveway for use in building the porch. At this point, the lumber is considereda) Real property because it will be permanently affixed to the existing structure.b) Personal property.c) a chattel that is real property.d) a trade or chattel fixture.

b) PERSONAL PROPERTY. At the time of delivery, lumber

is considered personal property; once it is used to construct the porch, the lumber is considered real property.After the construction of a building over a railroad right of way, the trains cana) Use the tracks under the building as long as they first obtain the building owner's permission.b) Use the tracks under the building only if they cause no problem for the building's occupants.c) No longer use the tracks under the building.d) Operate as usual.

d) OPERATE AS USUAL. Air rights, the rights to use the

space above the earth, may be sold or leased independently, provided the law has not preempted such rights; the trains may operate as usual on the ground level.To construct such a building, the developer must purchase not only the air rights but also numerous small portions of the land's surface for the building's foundation supports.The bundle of legal rights includes all of the following rights EXCEPTa) Possess the property.b) Enjoy the property within the framework of the law.c) Sell or otherwise convey the property.d) Use the property for any purpose, legal or otherwise.

d) USE THE PROPERTY FOR ANY PURPOSE, LEGAL

OR OTHERWISE. The bundle of legal rights recognizes the right of an owner to use the property for a legal ppurpose. There is no legal right to use th eproperty of an ilegal purpose.

Which entity is generally responsible for creating the requirements for a real estate license?a) Individual state lawb) Federal legislationc) County legislationd) Local association of REALTORS®

a) INDIVIDUAL STATE LAW. All 50 states, the distric of

Columbia, and all Canadian provinces have pass laws that require brokers and salespersons to be licensed. Although state laws are similar, they do vary in some details.The buyers have asked their real estate agent to help them determine the correct way to take title to their new home. In this situation, the real estate agent shoulda) Suggest that the buyers consult an attorney.b) Do the research and offer alternatives.c) Tell the buyers that it does not really matter how they take title.d) Refer the buyers to their accountant.

a) SUGGEST THAT THE BUYERS CONSULT AN

ATTORNEY. Only attorneys are trained and licensed to prepare documents defining or transferringrights in property and to give advice on matters of law.Pennsylvania law requires the seller to provide notice to a purchaser about whether a structure on the land is entitled to support from the underlying coal. This is known as thea) coal notice.b) subsidence notice.c) coal support.d) subsistence support.

a) COAL NOTICE. Because of the posibility of mine

subsidence, Pennsylvania law requires the seller to provide notice to a purchaser about whether the land is entittled to support from the underlying coal. This is known as the coal notice.The bundle of ligal rights is included in the definition ofa) Landb) Real estatec) Real propertyd) Trade fixtures

c) REAL PROPERTY. The definition of real property

includes more than the physical nature of eirther "land" or "real estate". Real Property includes interests, rights, and benefitsasociated with ownership.Which of the following is a physical characteristic of real estate?a) Location or area preferenceb) Permanence of investmentc) Scarcityd) Indestructibility

d) INDESTRUCTIBILITY. Refers to a physical

characteristic, not an economic characteristic.