Unit 1-2

Question 1

When supply increases it will cause real estate prices to…
Rise , drop, stay

Answer 1

Drop

Question 2

When demand increases it will cause prices to…

Rise , drop, stay

Answer 2

Rise

Question 3

When supply and demand decrease equally, it will cause real estate prices to..
rise, drop, stay

Answer 3

stay

Question 4

When supply decreases and demand increases, it will cause real estate prices to.. rise, drop, stay

Answer 4

rise

Question 5

When supply and demand are unchanged, it will cause real estate prices to…
rise, drop, stay

Answer 5

stay

Question 6

When supply decreases it will cause real estate prices to…
rise, drop, stay

Answer 6

rise

Question 7

Do construction costs affect demand or supply of real estate?
demand, supply

Answer 7

supply

Question 8

Do financial policies affect demand or supply of real estate?
demand, supply

Answer 8

supply

Question 9

Does the population affect demand or supply of real estate? demand, supply

Answer 9

[demand]

Question 10

Do government controls affect demand or supply of real estate? demand, supply

Answer 10

[supply]

Question 11

Does employment and wage levels affect demand or supply of real estate?
demand, supply

Answer 11

demand

Question 12

A real state professional who performs a visual survey of a property and prepares an analytical report for a purchaser or owner is acting as…

home inspector, broker, an appraiser, a property manager

Answer 12

home inspecstor

Question 13

The Federal Reserve Board ______________________________.

a.
monitors the Federal Housing Administration

b.
establishes a discount rate of interest for the money it lends to its member banks

c.
regulates nationwide construction costs

d.
establishes real estate inspection standards

Answer 13

establishes a discount rate of interest for the money it lends to its member banks

Question 14

The term appraisal refers to______________________________________.

Select One:

a.
the transfer of funds in the financing of real estate transactions

b.
an appraiser’s advice to the homeowner on the condition of their property

c.
the prices of properties sold in the last one year

d.
the method of estimating a property’s market value based on established methods and the appraiser’s judgment

Answer 14

the method of estimating a property’s market value based on established methods and the appraiser’s judgment

Question 15

Schools are considered part of which real estate classification?

Select One:

a.
Special-purpose

b.
industrial

c.
Government- Held

d.
commercial

Answer 15

special purpose

Question 16

Which of these factors most likely influences the demand for real estate?

Select One:

a.
Constructions costs

b.
Labor force

c.
Government financial policies

d.
Wage levels and employment opportunities

Answer 16

wage levels and employment oppurtunities

Question 17

In general, when the supply of a commodity increases________________________________.

Select One:

a.
prices tend to rise.

b.
prices tend to drop.

c.
prices are unchanged.

d.
demands tend to rise.

Answer 17

prices tend to drop

Question 18

All of these are categories of the uses of real property except:

Select One:

a.
developmental

b.
agricultural

c.
residential

d.
industrial

Answer 18

developmental

Question 19

A REALTOR® is ___________________________.

Select One:

a.
a real estate licensee who is a member of the National Association of Realtors

b.
a real estate broker who has been licensed for at least 5 years.

c.
any real estate broker who represents clients in a real estate transaction

d.
a real estate broker who has been licensed by the federal government

Answer 19

a real estate licensee who is a member of the National Association of Realtors

Question 20

Detailed information about the age, education, behavior, and other characteristics of members of a population is called___________________.

Select One:

a.
demographics

b.
household descriptions

c.
family data

d.
population analysis

Answer 20

demographics

Question 21

When the supply of a commodity decreases while demand remains the same, price tends to _____________________________.

Select One:

a.
go in the direction of the supply

b.
not be affected

c.
rise

d.
drop

Answer 21

rise

Question 22

Indicate whether each right documented in the statement is a legal test of fixture by selecting yes to represent that it is a legal test of fixture or no to represent that it is not a legal test of fixture
1. Adaption to real estate :
2. Type of construction :
3. visibility:
4. Method of attathment :

Answer 22

1. y
2. n
3. n
4. y

Question 23

Which factor is type of land:

Indestructibility

Physical or economical

Answer 23

[physical characteristic of land]

Question 24

Which factor is type of land:

Improvements

Physical or economical

Answer 24

economical

Question 25

Which factor is type of land: Scarcity Physical economical

Answer 25

economical

Question 26

Which factor is type of land: Uniqueness Physical economical

Answer 26

physical

Question 27

Which factor is type of land: Permanence of Investment Physical or economical

Answer 27

economical

Question 28

Which factor is a type of land: Immobility Physical economical

Answer 28

Physical

Question 29

Is this right included in the rights of ownership covered by the property owner T or F 1. Rights of Disposition 2. Right of Collusion 3. Right of Control

Answer 29

1. t 2. f 3. t

Question 30

Is this right included in the rights of ownership covered by the property owner T or F 1. Right of Enjoyment 2. Right of Possession 3.Right of Construction

Answer 30

1. t 2. t 3. n

Question 31

A person buys a parcel of natural forest. The person then immediately cuts down all the trees and constructs a large shed out of the old sheets of rusted steel for storing varnish and industrial waste products. Which of these statements is true about the rusty shed? Select One: a. The owner’s action constitutes improvement of the property b. Altering the property in order to construct a shed is not included in the bundle of legal rights c. If the owner is in the business of storing toxic substances, the shed is a trade fixture d. The shed is personal property

Answer 31

The owner’s action constitutes improvement of the property

Question 32

An owner decides to sell her house and takes the expensive front door with her when she moves. Assuming the contract doesn’t address this issue, is this action by the seller legal? Select One: a. Yes, and the act is called accession b. No, the act of severance is not allowed here because the door is a fixture c. Yes, and the act is called separation d. No, this is conversion and theft

Answer 32

No, the act of severance is not allowed here because the door is a fixture

Question 33

Intent of the parties, method of attachment, and agreement between the parties are the legal tests for determining whether an item is ___________________. Select One: a. an improvement or fixture b. a trade fixture or personal property c. real property or personal property d. a fixture or personal property

Answer 33

a fixture or personal property

Question 34

Parking spaces in multi-unit buildings, water rights, and other improvements are classified as ___________________________________. Select One: a. trade fixtures b. appurtenances c. emblements d. subsurface rights

Answer 34

appurtenances

Question 35

All of these rights are included in the right to control one’s property except _____________________________________. Select One: a. erect “No Trespassing” signs b. sell the property to a neighbor c. enjoy profits from its ownership d. exclude utility meter readers

Answer 35

exclude utility meter readers

Question 36

The phrase “bundle of legal rights” is included in ___________________________________. Select One: a. contracts b. the definition of real property c. the definition of personal property d. the legal description

Answer 36

the definition of real property

Question 37

One difference between real property and personal property is that real property includes _____________________________________. Select One: a. land and the rights and interests inherent in the ownership of the land, while personal property includes only air and mineral rights b. land and all things permanently attached while personal property includes property that is moveable c. the trees and air rights, while personal property includes the contents of the property d. annual crops, while personal property includes mineral rights and trees

Answer 37

land and all things permanently attached while personal property includes property that is moveable

Question 38

Which of these is considered the most important characteristic of land? Select One: a. structure b. improvements c. permanence d. location Feedback

Answer 38

location

Question 39

When an owner of real estate sells property to someone else, he is exercising which of these legal rights? Select One: a. Disposition b. Power of Attorney c. Legal Enjoyment d. Control

Answer 39

Disposition

Question 40

Which of these best describes the economic characteristics of real estate? Select One: a. Location, uniqueness, and indestructibility b. Attachment, location , and improvements c. Scarcity, improvements, and location d. Scarcity, immobility, and improvements

Answer 40

Scarcity, improvements, and location