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Real Estate Chapter 1

24 Questions - Developed by: - Developed on: 2017-10-10 - 10,378 taken

Textbook And Engrade Questions

1

All of the following are separable ownerships in land EXCEPT

Air rights
Nonhomogenity
Area below the surface
Surface of land

2

All of the following factors would affect supply, EXCEPT:

Government controls
Population
The labor force
Construction costs

3

When the supply of a commodity decreases:

Prices tend to rise
Demand tends to drop
Demand tends to rise
Prices tend to drop

4

All of the following are required of a candidate to obtain a NC Real Estate Brokers License, EXCEPT:

High school diploma
Formal background check
Minimum age of 18
Good character

5

Which of the following is correct regarding the educational requirements of a provisional broker?

The renewal date for postlicensing and CE is June 10
Must complete 90 hours of postlicensing in the first 3 years, completing at least 30 hours every year by June 10
Must complete 90 hours of CE in the first 3 years
Must complete 90 hours of poslicensing in the first 3 years and complete 8 hours of CE every year prior to the second renewal of their real estate license

6

How are members of the NC Real Estate Commission chosen?

They are appointed by the governor
They are elected by the public at large
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

7

It is the job of the NC Real Estate Commission to perform all of the following, EXCEPT:

Fine licensees who violate the rules or statutes
Protect the public and consumers
Provide information to licensees and the public
Regulate and educate licensees

8

All of the following are economic characteristics of real property, EXCEPT:

Location
Immobility
Scarcity
Permanence

9

The fact that real estate licensees must be licensed in the state where the real estate is located and not where the client is located occurs:

Because they are subject to requirements in the national and state constitutions
Because of the concept of the highest and best use
Because the individual state regulatory agencies create rules that govern their licensees
Only in NC

10

Highest and best use would be best defines as:

The existing and current use of the property
The use the produces the highest sales price for the property
The categorization of the multiple ways in which a property may be utilized
The one use that provides the greatest return and maximizes the value of the real etate

11

In regard to real estate's role in economic cycles, which of the followng statements is correct?

Real estate is a lagging indicator and contains periods of expansion, recession, depression, and revival
Real estate cycles are easily predictable
Real estate is a leading indicator of economic cycles
Real estate is a stable market that does not fluctuate

12

In regard to the compostion of the NC Real Estate Commission, which of the followinf statement is correct?

It must be composed of at least 5 people who are real estate licensees
At least 3 members must be licensees and 2 must be laypeople
At least 3 of the members must be laypeople and 2 must be licensees
Three of the people on the commission must be laypeople

13

The North Carolina Real Estate Commission has the authority to:

Discipline a REALTOR for breach of the Code of Ethics
Require licensees to obtain education
Regulate the commissions and fees charged by licensees
Fine a licensee for violations of license law

14

Under the doctrine of specific performance, the 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 damanges. Which physical characteristic of land if the basis for the doctrine of specific performance?

Permanence of investment
Uniqueness
Indestructibility
Immobility

15

Which of the following is considered to have the greatest impact on the value of property?

Scarcity
Area preference
Permanence of investment
Uniqueness

16

In determining the value of a property the location is important. Factors in the community which cause businesses to relocate there and the ability to attract new businesses is known as the:

Life cycle of the community
The economic base
The zoning overlays
The area's market value

17

The characteristic of land that causes the real estate market to be essentially a local market is the physical characteristic of:

Natural features
Immobility
Availability
Indestructability

18

The nonhomogenity of land:

All of the above
Is a physical characteristic of land
Is the basis for the legal remedy of specific performance
Results from the uniqueness of every parcel of real estate

19

An increase in the economic supply of land has resulted from:

All of the above
Increased utilization of the physical supply of land
Modification by improvements to the land
High-density development

20

The quality of the location of land and consequently the value of the land can be changed by:

Improvements to the land that result in accessibility nor previously availiable
Relocation of the land
Changes in the national scope of the real estate business
The principle of nonhomogenity

21

The employment of the concept of highest and best use:

Includes consideration of the physical and economic factors affecting land use
Results in the greatest present value of the land
All of the above
Must be feasible in the near future

22

An example of public land use control is:

Zoning laws
Deed restrictions
Restrictive covenants
Protective covenants

23

Real estate investment offers the opportunity to produce a profit in the following ways, EXCEPT:

Positive cash flow
Tax advantages
Specific performance
Appreciation

24

The real estate market may be described in all of the following ways EXCEPT:

Market that is slow to react to changes in supply and demand
Movable market
Local market
Free market

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