COLIBRI REAL ESTATE CHAPTER 1 TEST
QUESTIONS & ANSWERS
What are the five economic characteristics that determine the market value of
land? - ANSWER
1. Demand; The greater the demand for a property, the greater value
2. Utility (Or usefulness); More room/space etc. the more useful. 3 bed 4 bath >
1 bed 2 bath
3. Scarcity; A property will be in demand soon if few property's available
4. Transferability; Real estate is easily transferable from seller to buyer (loans
available, low interest rates)
5. Situs; (Site) Unique property appeal
What are the three physical characteristics of land? - ANSWER - Immobile or
permanent
- Indestructible
- Non-homogenous or unique
Explain how the legal definitions can vary between ideas of land and real estate.
- ANSWER The legal definition of Real Estate encompasses all man made
constructions which are "permanently" attached to the land and above the land
itself.
Define special purpose property and give an example. - ANSWER A piece of
property that is not Residential, Industrial, Commercial, Agricultural property;
generally churches, hospitals, schools or recreational land
List the 5 important rights included in the bundle of rights to real estate. -
ANSWER The right of Possession
The right to Transfer Interests
The right to Encumber
The right to Exclude
QUESTIONS & ANSWERS
What are the five economic characteristics that determine the market value of
land? - ANSWER
1. Demand; The greater the demand for a property, the greater value
2. Utility (Or usefulness); More room/space etc. the more useful. 3 bed 4 bath >
1 bed 2 bath
3. Scarcity; A property will be in demand soon if few property's available
4. Transferability; Real estate is easily transferable from seller to buyer (loans
available, low interest rates)
5. Situs; (Site) Unique property appeal
What are the three physical characteristics of land? - ANSWER - Immobile or
permanent
- Indestructible
- Non-homogenous or unique
Explain how the legal definitions can vary between ideas of land and real estate.
- ANSWER The legal definition of Real Estate encompasses all man made
constructions which are "permanently" attached to the land and above the land
itself.
Define special purpose property and give an example. - ANSWER A piece of
property that is not Residential, Industrial, Commercial, Agricultural property;
generally churches, hospitals, schools or recreational land
List the 5 important rights included in the bundle of rights to real estate. -
ANSWER The right of Possession
The right to Transfer Interests
The right to Encumber
The right to Exclude
