30 Questions
Which type of ownership interest in real estate is the highest recognized by law?
Fee Simple Absolute
What is the key characteristic of a Fee Simple Defeasible ownership?
It has limitations on property use that could result in the loss of the ownership right.
What is a life estate based on the life of someone other than the holder called?
Life Estate Pur Autre Vie
Which type of limitation on property use results in the automatic return of title to the former owner without the need for legal action?
Special Limitation
Which of the following is NOT considered personal property?
A house
Which of the following is NOT one of the four elements that create value for real estate?
Durability
Which of the following is NOT an economic force influencing value?
Population growth
Which of the following is NOT a physical or environmental force influencing value?
Zoning Laws
Which form of co-ownership allows each co-tenant to use the entire property and transfer their interest by gift or sale or by will at death?
Cotenancy
Which form of co-ownership requires the four unities of ownership and creates a right of survivorship?
Joint Tenancy
Which form of co-ownership is automatically terminated in the event of divorce and allows each spouse to have an equal, undivided interest in the property?
Marital Property
Which of the following is NOT considered a common area in a condominium?
Land
Which form of co-ownership is commonly used in business partnerships and requires all partners to have the right to use the property for partnership purposes?
Tenancy in Partnership
What is the main difference between a condominium and a cooperative?
Financing options
What is a Planned Unit Development (PUD) characterized by?
Shared common areas
Which economic characteristic of land refers to people's choices and preferences for a given area?
Area Preference
Which of the following is NOT a factor considered in determining market value?
Special considerations or concessions granted by anyone associated with the sale
What does the term 'market value' refer to?
The estimated amount for which an asset or liability should exchange between a willing buyer and a willing seller
What is the assumed condition of the buyer in a market value transaction?
Motivated, but not compelled to buy
What is the significance of proper marketing in determining market value?
It exposes the asset to the market to obtain the best price reasonably obtainable
Which one of these is true about a life estate?
The land reverts back to the original owner upon the death of the life estate holder.
What is the main difference between a leasehold estate and a leased fee estate?
A leasehold estate is held by the tenant, while a leased fee estate is held by the landlord.
What is an easement in gross?
An easement that belongs to an individual person or business and does not run with any parcel of land.
What is the main difference between a license and an easement?
A license is a temporary permission, while an easement is a permanent right.
Which principle emphasizes the importance of using the best market information available at the time of a transaction?
Principle of Substitution
Which principle states that the value of a property is influenced by the expectation of future benefits?
Principle of Anticipation
Which principle states that the value of a property is affected by the interaction of supply and demand in the market?
Principle of Supply and Demand
Which principle emphasizes the importance of using comparable properties to determine the value of a property?
Principle of Substitution
Which principle states that the value of a property is influenced by the presence of external factors, such as proximity to amenities or nuisances?
Principle of Externalities
Which principle states that the value of a property is affected by the interaction of supply and demand in the market?
Principle of Supply and Demand
Test your knowledge on factors that affect market value, including accessibility and presence of transportation facilities, flood control and soil conservation, soil characteristics, location and trend of development, topography and elevation, size and shape, and climate and weather.
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