Test Bank for Real Estate Principles: A
Value Approach Test #1, Real Estate -
Ch. 1 End of Chapter, Real Estate
Chapter 2 - Legal and Regulatory
Determinants of Value (Key Terms)4th
Edition by Valerie D. Thompson
The interest being conveyed by a deed is specified in the: - ANSHabendum clause
Which of these is not a requirement of a valid deed? - ANSCompetent grantee
The "highest quality" form of deed is the: - ANSGeneral warrantee deed
A deed used mainly to clear up possible "clouds" or encumbrances to title (conflicting interests)
is the: - ANSQuitclaim deed
If a landowner sells the front part of a parcel of land, retaining the back portion as a
"land-locked" parcel, and if there is an existing informal path across the front parcel to the back
one, the seller is likely to retain the path as a (an): c - ANSImplied easement by prior use
If a neighboring land owner drives across a person's land openly and consistently for a number
of years the neighbor may acquire an easement by: - ANSPrescription
Factors that make it uniquely difficult to establish clear title in real estate as compared to most
personal property items include: - ANSLength of the ownership history in real estate
Which of these is a widely used form of "evidence of title - ANSTitle insurance commitment
If documents conveying interests in real property are properly recorded in the public records,
then they are binding or enforceable on all persons, regardless of whether those persons are
aware of the documents, by th - ANSDoctrine of constructive notice
The most common form of legal description for urban residential property is the: - ANSPlat lot
and block number
, 1. A market where tenants negotiate rent and other terms with property owners or their
managers is referred to as a: - ANSUser market
2. The market in which required rates of return on available investment opportunities are
determined is referred to as the: - ANSCapital market
4. What portion of households owns their house? - ANSApproximately two-thirds
5. Of the following asset categories, which class has the greatest aggregate market value? -
ANSNongovernment real estate
6. Storm water drainage systems are best described as: - ANSImprovements to the land
7. What is the single largest asset category in the portfolio of a typical U.S. household? -
ANSHousing
8. Real estate markets differ from other asset classes by having all of the following
characteristics except: - ANSHomogeneous product
9. Which of the following is not important to the location of commercial properties? - ANSAccess
to schools
10. Which of the following attributes of a home are the most difficult to observe and value? -
ANSLocation attributes
Assessment lien - ANSLien assessment by local governments to ensure that those who receive
the primary benefit of neighborhood improvements will be charged their 'fair share'.
Attach - ANSTo place a lien on real property.
Community Development District (CDD) lien - ANSA quasi-governmental unit with broad powers
to finance, create, operate, and maintain infrastructure and related services within a private
development or community. The CDD can impose taxes on assessments on the landowners,
and can issue municipal, tax-exempt bonds. Its board is elected by the community landowners,
and its activities are subject to full public disclosure.
Community property - ANSThe automatic right of husband and wife in property acquired by their
spouses during the marriage.
Condominium - ANSCombines single person ownership with tenancy in common. An ownership
form that combines a fee simple estate for ownership of individual units and tenancy in common
for ownership of common areas-describes an ownership form not a type of construction.
Value Approach Test #1, Real Estate -
Ch. 1 End of Chapter, Real Estate
Chapter 2 - Legal and Regulatory
Determinants of Value (Key Terms)4th
Edition by Valerie D. Thompson
The interest being conveyed by a deed is specified in the: - ANSHabendum clause
Which of these is not a requirement of a valid deed? - ANSCompetent grantee
The "highest quality" form of deed is the: - ANSGeneral warrantee deed
A deed used mainly to clear up possible "clouds" or encumbrances to title (conflicting interests)
is the: - ANSQuitclaim deed
If a landowner sells the front part of a parcel of land, retaining the back portion as a
"land-locked" parcel, and if there is an existing informal path across the front parcel to the back
one, the seller is likely to retain the path as a (an): c - ANSImplied easement by prior use
If a neighboring land owner drives across a person's land openly and consistently for a number
of years the neighbor may acquire an easement by: - ANSPrescription
Factors that make it uniquely difficult to establish clear title in real estate as compared to most
personal property items include: - ANSLength of the ownership history in real estate
Which of these is a widely used form of "evidence of title - ANSTitle insurance commitment
If documents conveying interests in real property are properly recorded in the public records,
then they are binding or enforceable on all persons, regardless of whether those persons are
aware of the documents, by th - ANSDoctrine of constructive notice
The most common form of legal description for urban residential property is the: - ANSPlat lot
and block number
, 1. A market where tenants negotiate rent and other terms with property owners or their
managers is referred to as a: - ANSUser market
2. The market in which required rates of return on available investment opportunities are
determined is referred to as the: - ANSCapital market
4. What portion of households owns their house? - ANSApproximately two-thirds
5. Of the following asset categories, which class has the greatest aggregate market value? -
ANSNongovernment real estate
6. Storm water drainage systems are best described as: - ANSImprovements to the land
7. What is the single largest asset category in the portfolio of a typical U.S. household? -
ANSHousing
8. Real estate markets differ from other asset classes by having all of the following
characteristics except: - ANSHomogeneous product
9. Which of the following is not important to the location of commercial properties? - ANSAccess
to schools
10. Which of the following attributes of a home are the most difficult to observe and value? -
ANSLocation attributes
Assessment lien - ANSLien assessment by local governments to ensure that those who receive
the primary benefit of neighborhood improvements will be charged their 'fair share'.
Attach - ANSTo place a lien on real property.
Community Development District (CDD) lien - ANSA quasi-governmental unit with broad powers
to finance, create, operate, and maintain infrastructure and related services within a private
development or community. The CDD can impose taxes on assessments on the landowners,
and can issue municipal, tax-exempt bonds. Its board is elected by the community landowners,
and its activities are subject to full public disclosure.
Community property - ANSThe automatic right of husband and wife in property acquired by their
spouses during the marriage.
Condominium - ANSCombines single person ownership with tenancy in common. An ownership
form that combines a fee simple estate for ownership of individual units and tenancy in common
for ownership of common areas-describes an ownership form not a type of construction.
