FINC 371 - Exam 1 (Peterson) Revision
Questions And Actual Answers 2025.
What is Real Estate? - Answer Land + Improvements
Improvements = Anything reasonably permanently attached/affixed to land
What are the 6 most important things in Real Estate? - Answer Location, Location, Location
Timing, Timing, Timing
Real Estate
Special Characteristics (7) - Answer 1. Fixed Location
2. Uniqueness
3.Interdependence of land uses
4. Long life
5. Long-term commitments
6. Large transactions
7. Long gestation period
4 Main Sectors of Real Estate - Answer 1. Residential
2. Commercial
3. Industrial
4.Ranch/Agriculture
Residential Real Estate (2) - Answer 1. Single Family Attached
- Duplex/ Quad-plex
- Apartment Complex (No Ownership)
- Rowhouse
- Condominium (Ownership Structure)
2. Single Family Detached
,4 Food Groups of Commercial Real Estate - Answer 1. Industrial
2. Retail
3. Multifamily
4. Office
Commercial Real Estate - Answer 1. Retail
2. Office
3. Office/Warehouse
4. Medical
5. Hospitality
6. Education
7. Religious
Industrial Real Estate (2) - Answer 1. Manufacturing Plant
2. Oil & Gasoline Refineries
Ranch/Agricultural Real Estate - Answer 1. Recreational
2. Land
3. Cattle Production
4. Farmland
5. Wildlife Refuge
6. Wetlands
- Mitigation Credits
4 Factors of Production in Economics - Answer 1. *Land*
2. Labor
3. Capital
4. Entrepreneurship
3 Economic Attributes of Land - Answer 1. Durable
2. Finite
, - Immobile and Tangible
- Natural part of land
- Building and site
- All permanent buildings attachments (fixtures)
- Attachments above and below ground
Real Property - Answer - All interests, benefits, and rights inherent in the ownership of the real
estate
- Estate is a right or interest in real estate
- "Bundle of Rights" - Right to use, sell, lease, enter, give away, etc.
- When transferred, a written document must be prepared
Title - Answer Ownership rights to real property
(Actual Ownership)
Deed - Answer Document used to convey right from one property to another
(Document showing ownership)
Lease - Answer Conveys the rights of use and possession of the real property under the agreed
upon terms
(Ownership is not transferred)
Personal Property (aka "Chattel") - Answer Movable items or property that are not permantely
affixed to , or part of, the real estate
Fixture - Answer An article that was once personal property, but has since been installed or
attached to the land or building in a rather permanent manner
- Considered Real Estate
Trade Fixtures (aka "Chattel Fixture") - Answer An article that is owned and attached to a
rented space or building by a tenant and used in conducting business
Testing for Fixture Status (3) - Answer 1. Test of Intent of the Parties
Questions And Actual Answers 2025.
What is Real Estate? - Answer Land + Improvements
Improvements = Anything reasonably permanently attached/affixed to land
What are the 6 most important things in Real Estate? - Answer Location, Location, Location
Timing, Timing, Timing
Real Estate
Special Characteristics (7) - Answer 1. Fixed Location
2. Uniqueness
3.Interdependence of land uses
4. Long life
5. Long-term commitments
6. Large transactions
7. Long gestation period
4 Main Sectors of Real Estate - Answer 1. Residential
2. Commercial
3. Industrial
4.Ranch/Agriculture
Residential Real Estate (2) - Answer 1. Single Family Attached
- Duplex/ Quad-plex
- Apartment Complex (No Ownership)
- Rowhouse
- Condominium (Ownership Structure)
2. Single Family Detached
,4 Food Groups of Commercial Real Estate - Answer 1. Industrial
2. Retail
3. Multifamily
4. Office
Commercial Real Estate - Answer 1. Retail
2. Office
3. Office/Warehouse
4. Medical
5. Hospitality
6. Education
7. Religious
Industrial Real Estate (2) - Answer 1. Manufacturing Plant
2. Oil & Gasoline Refineries
Ranch/Agricultural Real Estate - Answer 1. Recreational
2. Land
3. Cattle Production
4. Farmland
5. Wildlife Refuge
6. Wetlands
- Mitigation Credits
4 Factors of Production in Economics - Answer 1. *Land*
2. Labor
3. Capital
4. Entrepreneurship
3 Economic Attributes of Land - Answer 1. Durable
2. Finite
, - Immobile and Tangible
- Natural part of land
- Building and site
- All permanent buildings attachments (fixtures)
- Attachments above and below ground
Real Property - Answer - All interests, benefits, and rights inherent in the ownership of the real
estate
- Estate is a right or interest in real estate
- "Bundle of Rights" - Right to use, sell, lease, enter, give away, etc.
- When transferred, a written document must be prepared
Title - Answer Ownership rights to real property
(Actual Ownership)
Deed - Answer Document used to convey right from one property to another
(Document showing ownership)
Lease - Answer Conveys the rights of use and possession of the real property under the agreed
upon terms
(Ownership is not transferred)
Personal Property (aka "Chattel") - Answer Movable items or property that are not permantely
affixed to , or part of, the real estate
Fixture - Answer An article that was once personal property, but has since been installed or
attached to the land or building in a rather permanent manner
- Considered Real Estate
Trade Fixtures (aka "Chattel Fixture") - Answer An article that is owned and attached to a
rented space or building by a tenant and used in conducting business
Testing for Fixture Status (3) - Answer 1. Test of Intent of the Parties
