Real Estate National Practice
Quiz to is to help you pass your National Real Estate Exam
Questions and Answers
- 1.
A system of laws that recognizes private ownership of land is referred to as?
- A.
Common law
- B.
Feudal law
- C.
Allodial system
- D.
Statute law
Correct Answer
C. Allodial systemExplanation
The correct answer is allodial system. The allodial system is a system of laws that recognizes private ownership of land. Under this system, individuals have absolute ownership and control over their land, free from any feudal or governmental claims or restrictions. This system is in contrast to feudal law, which grants ownership rights to the ruling class or government, and common law, which is based on legal precedent and does not necessarily guarantee private ownership of land. Statute law refers to laws enacted by a legislative body.Rate this question:
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- 2.
All of the following which are considered personal property
- A.
A garage
- B.
Growing bushes
- C.
Installed dishwasher
- D.
A stores displayed counters
Correct Answer
D. A stores displayed countersExplanation
The answer is "a stores displayed counters" because personal property refers to movable possessions that individuals own. In this case, the displayed counters in a store can be easily moved and are not permanently attached to the building, making them personal property. The other options, such as a garage, growing bushes, and an installed dishwasher, are considered fixtures or real property as they are permanently attached to the land or building.Rate this question:
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- 3.
In general, when the supply of R.E increase...
- A.
Prices tend to increase
- B.
Prices tend to decrease
- C.
Demand tends to increase
- D.
Demand is unchanged
Correct Answer
B. Prices tend to decreaseExplanation
When the supply of renewable energy (R.E) increases, it leads to a greater availability of energy resources. This increased supply can result in a decrease in prices as the market becomes more competitive. With more options for consumers, suppliers may lower their prices to attract customers. This decrease in prices can make renewable energy more affordable and accessible to a larger population, encouraging its adoption and reducing reliance on non-renewable energy sources.Rate this question:
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- 4.
Which of the following describes the act by which real property can be converted to personal property?
- A.
Seperatation
- B.
Conversion
- C.
Severance
- D.
Accession
Correct Answer
C. SeveranceExplanation
Severance refers to the act of converting real property into personal property. This typically involves physically detaching or removing an item from the land or property, thereby transforming it into movable personal property. This process can occur through various means, such as cutting down a tree, removing fixtures, or extracting minerals from the land. Severance allows the owner to separate and take possession of the item, making it distinct from the real property it was previously attached to.Rate this question:
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- 5.
A buyer and seller of a home are debating whether a certain iteam is real or personal property. The buyer believes its real propeprty and should be conveyed with the house; the seller believes it is personal property and may be conveyed seperatley with a bill of sale. In determining whether the item is real or personal property, a court would consider all of the following except?
- A.
Adaptation of the item to the real estate
- B.
The method of of attachment
- C.
Permanence of the installation
- D.
The length of time the item has been attached to the property
Correct Answer
D. The length of time the item has been attached to the propertyExplanation
A court would consider the adaptation of the item to the real estate, the method of attachment, and the permanence of the installation when determining whether the item is real or personal property. The length of time the item has been attached to the property is not relevant in this determination.Rate this question:
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- 6.
In the real estate market there are several factors that effect the supply of demand for real estate. Which of the following woul daffect the demand for real estate.
- A.
# of real estate brokers in the area
- B.
# of full-time real estate salespersons in the area
- C.
Wage levels and employment opportunities
- D.
Price of new homes being built in area
Correct Answer
C. Wage levels and employment opportunitiesExplanation
Wage levels and employment opportunities can affect the demand for real estate because they directly impact people's ability to afford and purchase properties. Higher wage levels and more employment opportunities can increase the demand for real estate as individuals have more financial stability and purchasing power. Conversely, lower wage levels and limited employment opportunities can decrease the demand for real estate as people may struggle to afford homes or choose to delay purchasing until their financial situation improves.Rate this question:
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- 7.
The economic characteristic of permanence of investment refers to which of the following?
- A.
No 2 parcels of land are exactly alike
- B.
Land cannot be removed
- C.
Investments in real estate are usually for the long term
- D.
Land cannot be destroyed
Correct Answer
C. Investments in real estate are usually for the long termExplanation
The economic characteristic of permanence of investment refers to the fact that investments in real estate are usually made for the long term. Unlike other assets, such as stocks or bonds, real estate investments are typically held onto for a significant amount of time. This is because real estate is a tangible asset that provides a stable source of income through rental or lease agreements. Additionally, the value of real estate tends to appreciate over time, making it a favorable long-term investment option.Rate this question:
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- 8.
James is building a new enclosed front porch on his home. A truckload of lumber is left on his driveway for use in the building of the porch. At this poin the lumber is considered which kind of property?
- A.
A fixture because it will be permanently affixed to existing real property
- B.
Personal property
- C.
Real prop.
- D.
A trade fixture
Correct Answer
B. Personal propertyExplanation
The lumber left on James' driveway for use in building the porch is considered personal property. Personal property refers to movable items that are not permanently affixed to the land or structure. In this case, the lumber can be easily moved and is not permanently attached to the existing real property.Rate this question:
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- 9.
Property management, appraisal, financing, and development are all examples of
- A.
Government regulation of real estate industry
- B.
Services provided by the real esate industry
- C.
Non real estate professions
- D.
Factors affecting demand for real estate.
Correct Answer
B. Services provided by the real esate industryExplanation
The given answer, "services provided by the real estate industry," is correct because property management, appraisal, financing, and development are all services that are commonly provided by professionals in the real estate industry. These services are essential for the functioning and growth of the real estate market, as they involve managing properties, determining their value, securing financing for transactions, and developing new properties. Therefore, this answer accurately identifies the common services offered by the real estate industry.Rate this question:
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- 10.
Which of the following are considered personal property?
- A.
Trees growing on property
- B.
A garage
- C.
A driveway
- D.
Trade fixtures installed on property
Correct Answer
D. Trade fixtures installed on propertyExplanation
Trade fixtures installed on property are considered personal property because they are items that are attached to the property but are used for business purposes. Unlike trees growing on the property, a garage, and a driveway, which are typically considered part of the real property, trade fixtures can be removed by the tenant or business owner when they vacate the property. Therefore, trade fixtures are not permanently affixed to the property and are therefore classified as personal property.Rate this question:
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- 11.
Which economic characteristic of real estate refers to the concept that changes in a parcel of land affect its value either favorably or un favorably?
- A.
Fixity
- B.
Modifications
- C.
Scarcity
- D.
Nonhomogeneity
Correct Answer
B. ModificationsExplanation
Modifications is the correct answer because it refers to the economic characteristic of real estate where changes made to a parcel of land can impact its value positively or negatively. This implies that any alterations or improvements made to the property can either increase or decrease its worth.Rate this question:
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- 12.
What physical characteristic makes real estate easy for local gov. to tax and causes it to be heavlily influenced by changes in the surrounding areas
- A.
Indestructibility
- B.
Nonhomogeneity
- C.
Immobility
- D.
Situs
Correct Answer
C. ImmobilityExplanation
Immobility is the physical characteristic that makes real estate easy for local governments to tax and causes it to be heavily influenced by changes in the surrounding areas. Unlike other assets, such as stocks or bonds, real estate cannot be easily moved or transported. This immobility allows local governments to easily identify and tax properties within their jurisdiction. Additionally, changes in the surrounding areas, such as the development of new infrastructure or the opening of new businesses, can have a significant impact on the value of real estate, making it highly influenced by its surroundings.Rate this question:
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- 13.
Which of the following is included in the definition of real estate but not the defintion of land
- A.
Air rights
- B.
Propertys surface
- C.
Below the surface to center of earth
- D.
Fixtures on property
Correct Answer
D. Fixtures on propertyExplanation
Fixtures on property are included in the definition of real estate but not in the definition of land. Real estate refers to the physical property and all the improvements attached to it, including fixtures. Fixtures are items that are permanently attached to the property, such as built-in appliances or lighting fixtures. On the other hand, land refers specifically to the surface area of the earth, excluding any improvements or attachments. Therefore, fixtures on property are considered part of real estate but not part of the definition of land.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Mar 15, 2010Quiz Created by
Janetmm
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