NC SUPERIOR REAL ESTATE SCHOOL CHAPTER 1 TEST QUESTIONS AND
ALL ANSWERS CORRECT
Answer to Chapter 1 Vocabulary: Fundamental Real Estate Concepts Chapter 1
Terminology: Fundamental Real Estate Ideas
Bill of Sale: ANSWER Investment is used to convert personal property into real
estate.
Chattel: REPLY Another name for personal property (Movables, which are not
affixed to or part of, the land; commonly referred to as chattels.)
Conclusion: ANSWER the occasion of the ultimate performance of the real
estate deal. (Quizlet)
Free Market: A Response An economic system where enterprises freely
compete with one another to set pricing and wages without fear of monopolies
or government control. (Quizlet)
Best and Highest Use: ANSWER the legitimate use of a piece of property that
will yield the highest net present value of revenue when capitalized.
the usage that will yield the highest present value of land and give the property
owner the best return on investment over a given time period
Highest and best use can and does alter over time → best resources to increase
land's production by employing labor, capital, or other resources (organized by
an expert)
The use must be lawful and adhere to all applicable zoning, government
regulations, and deed/covenant restrictions.
It shouldn't be too or underly enhanced because that wouldn't be the best or
most efficient use.
, The one use that offers the greatest return and maximizes the value of the real
estate - At any given time there is only one highest and best use and it is the use
which provides the greatest return and maximizes the value of the real estate.
The physical characteristic of land that is immobile
Land cannot be moved or shifted.
makes the real estate market a local one (different state regulatory bodies make
regulations that apply to their licensees).
Enhancements: ANSWER repairs or additions like driveways, fences, and
pools, etc.
ANSWER Physical Property of Land: Indestructibility
Also known as Permanence
It is impossible to destroy land.
Land Use Controls: ANSWER Private or public limitations on the use of land,
such as zoning. (Quizlet)
Listing Agreement: Response An employment contract outlining the
responsibilities and rights of an owner and broker. (One-sided agreement)
(Quizlet)
ANSWER Physical Property of Land: Nonhomogeneity
AKA Distinctiveness
No two lots are alike in terms of drainage, vegetation, view, soil, etc.
There are differences even between two qualities that are almost identical.
The foundation for the specific performance legal remedy
Offer to Buy and Agreement - RESPONSES The most typical title for a real
estate sales contract in North Carolina.
One contract that can be used as both an offer to buy and an offer to sell. This
contract must bear the signatures of each seller. Fred G. Flintstone and his wife,
ALL ANSWERS CORRECT
Answer to Chapter 1 Vocabulary: Fundamental Real Estate Concepts Chapter 1
Terminology: Fundamental Real Estate Ideas
Bill of Sale: ANSWER Investment is used to convert personal property into real
estate.
Chattel: REPLY Another name for personal property (Movables, which are not
affixed to or part of, the land; commonly referred to as chattels.)
Conclusion: ANSWER the occasion of the ultimate performance of the real
estate deal. (Quizlet)
Free Market: A Response An economic system where enterprises freely
compete with one another to set pricing and wages without fear of monopolies
or government control. (Quizlet)
Best and Highest Use: ANSWER the legitimate use of a piece of property that
will yield the highest net present value of revenue when capitalized.
the usage that will yield the highest present value of land and give the property
owner the best return on investment over a given time period
Highest and best use can and does alter over time → best resources to increase
land's production by employing labor, capital, or other resources (organized by
an expert)
The use must be lawful and adhere to all applicable zoning, government
regulations, and deed/covenant restrictions.
It shouldn't be too or underly enhanced because that wouldn't be the best or
most efficient use.
, The one use that offers the greatest return and maximizes the value of the real
estate - At any given time there is only one highest and best use and it is the use
which provides the greatest return and maximizes the value of the real estate.
The physical characteristic of land that is immobile
Land cannot be moved or shifted.
makes the real estate market a local one (different state regulatory bodies make
regulations that apply to their licensees).
Enhancements: ANSWER repairs or additions like driveways, fences, and
pools, etc.
ANSWER Physical Property of Land: Indestructibility
Also known as Permanence
It is impossible to destroy land.
Land Use Controls: ANSWER Private or public limitations on the use of land,
such as zoning. (Quizlet)
Listing Agreement: Response An employment contract outlining the
responsibilities and rights of an owner and broker. (One-sided agreement)
(Quizlet)
ANSWER Physical Property of Land: Nonhomogeneity
AKA Distinctiveness
No two lots are alike in terms of drainage, vegetation, view, soil, etc.
There are differences even between two qualities that are almost identical.
The foundation for the specific performance legal remedy
Offer to Buy and Agreement - RESPONSES The most typical title for a real
estate sales contract in North Carolina.
One contract that can be used as both an offer to buy and an offer to sell. This
contract must bear the signatures of each seller. Fred G. Flintstone and his wife,
