Chapter 1: Basic Real Estate Concepts

All of the following are separable ownerships in land EXCEPT

• Surface of the land

• area below the surface

• nonhomogeneity

• air rights

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

• indestructibility

• immobility

• availability

• natural features

The nonhomogeneity of land:

• is the basis for the legal remedy of specific performance

• results from the uniqueness of every parcel of real estate

• is a physical characteristic of land

• all of the above

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

• increased utilization of the physical supply of land

• modification by improvements to the land

• high-density development

• all of the above

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

• the principle of nonhomogeneity

• relocation of the land

• changes in the national scope of the real estate business

• improvements to the land that result in accessibility not previously available

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

• must be a use feasible in the near future

• all of the above

An example of public land use controls is:

• restrictive covenants

• zoning laws

• deed restrictions

• protective covenants

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

• appreciation

• positive cash flow

• specific performance

• tax advantages

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

• a free market

• a local market

• a movable market

• a market that is slow to react to changes in supply and demands

The function of a real estate agent in dealings with buyers and sellers in the real estate market may best be described as which of the following?

• financier

• counselor or advisor

• contractor

• salesperson