Which of the following is considered to have the greatest

Chapt. 1 - NC Principles & Practices 8th Edition - Basic Real Estate Concepts Flashcards IMPROVEMENTSStructures, Walls, Roads, and so on.....LANDSurface of the earth, area above and below the surface, and everything attached naturally (trees, shrubs) SUPPLY and DEMANDSupply increases - Prices decreaseDemand increases - Prices rise HIGHEST AND BEST USE takes into account: TransportationResourcesContourElevationZoning Which of the following is considered to have the greatest impact on the value of a property?a. Area preferenceb.Permanence of investmentc. Scarcityd. Uniqueness AREA PREFERENCEThe value of real estate is primarily dictated by location CHATTELPersonal property The North Carolina Real Estate Commission has the

authority to:a. Regulate the commissions and fees charged

by licenseesb. Discipline a REALTOR for breach of the Code of Ethicsc. Fine a licensee for violations of license lawd. Require licensees to obtain education Require licensees to obtain education. NCREC imposes initial course requirements, postlicensing course requirements and CE requirements on licensees, all relating to their education Under the doctrine of specific performance, party harmed by breach of a real estate contract can ask a judge to force the breaching party to carry out the terms of the contract rather than order the breaching party to pay monetary damages. Which physical characteristic of land is the basis for the doctrine of specific performance?a.Indestructabilityb. Uniquenessc. Immobilityd. Permanence of investment UNIQUENESSUniqueness because properties are unique, when a contract is breached a party may be required to complete the transfer as this may be the only equitable remedy for the non-breaching party SCARCITYA short supply in comparison with demand How are members of the NC Real Estate Commission chosen?a. They are elected by the public at largeb. They are appointed by governorc. Seven are appointed by governor and 2 are appointed by the legislatured. Four are appointed by the legislature and 3 are appointed by the governor Seven are appointed by the governor and 2 are appointed by the legislature. Three members must have licenses, 2 people must be laypeople and the remaining 4 can be in either category, but are typically real estate professionals PERSONALTYChattel or personal property APPRAISALSAppraisals are used to determine values in market -

LOCATION, LOCATION, LOCATION

REALTYLand and everything permanently attached to land.LOCATION or SITUSMost important "ECONOMIC" characteristic of real estate All of the following are physical characteristics of land,

EXCEPT:a. Indestructabilityb. Uniquenessc. Immobilityd.

Scarcity SCARCITYLand is not considered to be scare, though there is a infinite supply of land REAL ESTATE CYCLEReal estate is a lagging indicator with periods of expansion, recession, depression and revival

REAL ESTATELand and everything that is permanently attached to land.Interchangeable with real property and realtyReal estate is always regulated based on state laws where the land is locatedReal estate as an investment - not matter what its use is always considered an investment LAND USE CONTROLSPublicPrivateGovernment

When the supply of a commodity decreases:a. Prices tend

to riseb. Prices tend to dropc. Demands tend to rised.Demand tends to drop PRICES TEND TO RISEAn decrease in the number of homes on the market would cause prices to rise It is the job of the NC Real Estate Commission to perform

all of the following, EXCEPT:a. Fine licensees who violate

the rules or statutesb. Provide information to licensees and the publicc. Regulate and educate licenseesd. Protect the public and consumers Fine licensees who violate the rules or statutes. NCREC is not empowered to fine a licensee, although they can reprimand the licensee and suspend or revoke the license INDESTRUCTABILITYPHYSICAL characteristic of land - cannot be destroyed REALTORA registered trademark of the National Association of Realtors. Its use is limited to members only.

All of the following factors would affect supply, EXCEPT:a.

Populationb. Construction Costsc. Government Controlsd.Labor Force POPULATIONPopulation is an element affecting the demand of housing not the supply FIVE Categories of Real EstateResidentialCommercialIndustrialAgriculturalSpecial Purpose What is the length of the NC real estate licensing examination eligibility period?a. 75 hoursb. 30 daysc. 90 daysd. 180 days 180 DAYSThe examination eligibility period starts on the day a license application is filed. Candidates must pass the state licensing examination within 180 days or a new application is required SITUSLocation of land. Takes into account societal and economic factors If a candidate is denied a license due to information obtained in the mandatory criminal background check, how long do they have to request a hearing with NCREC?a. 30 daysb. 60 daysc. 90 daysd. 180 days 60 DAYSThe criminal background check is obtained by the candidate at NCREC.Check.com. The background check will be reviewed by NCREC after the candidate passes the examination and before a license is issued IMMOBILITYPHYSICAL characteristic of land - impossible to relocate land REAL PROPERTY includes real estate plus: InterestsRightsBenefitsTenementsHereditamentsCreates a Bundle of Rights Which of the following is correct regarding the educational requirements of a provisional broker?Must complete 90 hours of postlicensing in the first 18 months of being licensed and complete 8 hours of CE every year prior to the second renewal of their real estate license NON-HOMOGENEITYPHYSICAL characteristic of land - uniqueness HIGHEST AND BEST USEUse of land that will preserve its utility and yield a net income in the form of rent that forms, when capitalized at the proper rate of interest, the highest present value of the land

BILL OF SALEDocument used to transfer personal property HETEROGENEITY and NON-HOMOGENEITYNO TWO parcels are alike FREE MARKETEconomic condition in which Buyer and Seller are able to negotiate a purchase and sale agreement without undue pressure PERSONAL PROPERTYAll property that is not land and is not permanently attached to land. Everything "MOVEABLE" All of the following are economic characteristics of real

property, EXCEPT:a. Scarcityb. Immobilityc. Locationd.

Permanence IMMOBILITYImmobility is a physical characteristic of land, not an economic one What is the name of the publication that contains information for candidates taking the North Carolina real estate licensing examination?a. NC Real Estate Bulletinb.RELINC - Real Estate Licensing in North Carolinac. North Carolina Administrative Rulesd. North Carolina General Statutes RELINC -Real Estate Licensing in North Carolina REAL PROPERTYLand and everything permanently attached to land

Highest and best use would best be defined as:a. the use

that produces the highest sales price for the propertyb. the one use that provides the greatest return and maximizes the value of real estatec. the categorization of the multiple ways in which a property may be utilizedd. the existing and current use of the property the one use that provides the greatest return and maximizes the value of the real estate. At any given time there is only one highest and best use and it is the use which provides the greatest return and maximizes the value of the real estate BILL OF SALEInstrument transferring ownership of personal property In regard to the composition of the NC Real Estate

Commission, which of the following statements is correct:

At least 3 of the members must be licensees and 2 must be laypeople PHYSICAL CHARACTERISTICS of Real Property: ImmobilePermanence or IndestructabilityUniqueness ECONOMIC CHARACTERISTICS of Real Property: ScarcityLocationImprovementsPermanence In regard to real estate's role in economic cycles, which of the following statements is correct?a. Real estate is a stable market that does not fluctuateb. Real estate is a lagging indicator and contains periods of expansion, recession, depression and revivalc. Real estate is a leading indicator of economic cyclesd. Real estate cycles are easily predictable Real estate is a lagging indicator and contains periods of expansion, recession, depression and revival. Real estate cycles tend to follow economic developments and the market is constantly going through periods of change