REE 3043 EXAM 1 FSU BAILEY QUESTIONS AND
ANSWERS 2026
When viewed as a tangible asset, real estate can be defined as the land and its
permanent improvements. Improvements on the land include:
fences
walkways
sewer systems
streets - Answers - fences
Real estate is property, which can be either a tangible or an intangible asset. Which of
the following would be considered an intangible asset?
Land
Building
Mortgage
Motor home - Answers - mortgage
When the value of land is considered, it is important to distinguish between land and
raw land. Raw land refers to a(n):
building site
structure on the land
property's infrastructure
area that does not include any improvements - Answers - area that does not include any
improvements
The demand for real estate derives from the need that participants in the user market
have for shelter and convenient access to other locations. The primary participants in
the user market include all of the following EXCEPT
owner occupants
tenants
renters
pension fund managers - Answers - pension fund managers
A market where tenants negotiate rent and other terms with property owners or their
managers is referred to as a:
Property Market
User Market
Housing Market
Capital Market - Answers - user market
,The actions of local, state, and federal governments affect real estate values
Primarily through user markets
Primarily through capital markets
Primarily through their taxation policies
Through all the above - Answers - All of the above
What portion of households owns their house? - Answers - 2/3
Of the following asset categories, which class has the greatest aggregate market value?
Corporate equities
Mortgage debt
Government debt
Nongovernment real estate - Answers - Nongovernment real estate
Storm water drainage systems are best described as:
Tangible assets
Improvements to the land
Intangible assets
Improvements on the land - Answers - improvements to the land
What is the single largest asset category in the portfolio of a typical U.S. household?
Housing
Consumer durables
Stocks
Bonds - Answers - housing
Real estate markets differ from other asset classes by having all of the following
characteristics except
Local market
High transaction costs
Segmented market
homogeneous product - Answers - homogeneous product
Which of the following is the least important to the location of commercial properties?
Access to customers
Visibility
Access to schools
Availability of communications infrastructure - Answers - access to schools
Which of the following is not a form of real property right?
, Lien
Easement
Leasehold
License - Answers - license
Which of these easements is most likely to be an easement in gross?
Common wall easement
Driveway easement
Drainage easement
Power line easement - Answers - power line easement
Rules used by courts to determine whether something is a fixture include all except:
Intention of the parties
Manner of attachment
Law of capture
Character of the article and manner of adaptation - Answers - Law of capture
Which of the following is a titled estate?
Fee simple absolute
Fee simple conditional
Life estate
All of these - Answers - all of these
Which of these forms of co-ownership could best be described as "normal ownership,"
except that multiple owners can have unequal ownership interest in the same property?
Tenancy in common
Joint tenancy
Tenancy by the entirety
Condominium - Answers - tenancy in common
Which of these marriage-related forms of co-ownership gives each spouse a one-half
interest in any property that is "fruits of the marriage"?
Dower
Curtesy
Community property
Elective share - Answers - community property
Which of these liens has the highest priority?
First mortgage lien
ANSWERS 2026
When viewed as a tangible asset, real estate can be defined as the land and its
permanent improvements. Improvements on the land include:
fences
walkways
sewer systems
streets - Answers - fences
Real estate is property, which can be either a tangible or an intangible asset. Which of
the following would be considered an intangible asset?
Land
Building
Mortgage
Motor home - Answers - mortgage
When the value of land is considered, it is important to distinguish between land and
raw land. Raw land refers to a(n):
building site
structure on the land
property's infrastructure
area that does not include any improvements - Answers - area that does not include any
improvements
The demand for real estate derives from the need that participants in the user market
have for shelter and convenient access to other locations. The primary participants in
the user market include all of the following EXCEPT
owner occupants
tenants
renters
pension fund managers - Answers - pension fund managers
A market where tenants negotiate rent and other terms with property owners or their
managers is referred to as a:
Property Market
User Market
Housing Market
Capital Market - Answers - user market
,The actions of local, state, and federal governments affect real estate values
Primarily through user markets
Primarily through capital markets
Primarily through their taxation policies
Through all the above - Answers - All of the above
What portion of households owns their house? - Answers - 2/3
Of the following asset categories, which class has the greatest aggregate market value?
Corporate equities
Mortgage debt
Government debt
Nongovernment real estate - Answers - Nongovernment real estate
Storm water drainage systems are best described as:
Tangible assets
Improvements to the land
Intangible assets
Improvements on the land - Answers - improvements to the land
What is the single largest asset category in the portfolio of a typical U.S. household?
Housing
Consumer durables
Stocks
Bonds - Answers - housing
Real estate markets differ from other asset classes by having all of the following
characteristics except
Local market
High transaction costs
Segmented market
homogeneous product - Answers - homogeneous product
Which of the following is the least important to the location of commercial properties?
Access to customers
Visibility
Access to schools
Availability of communications infrastructure - Answers - access to schools
Which of the following is not a form of real property right?
, Lien
Easement
Leasehold
License - Answers - license
Which of these easements is most likely to be an easement in gross?
Common wall easement
Driveway easement
Drainage easement
Power line easement - Answers - power line easement
Rules used by courts to determine whether something is a fixture include all except:
Intention of the parties
Manner of attachment
Law of capture
Character of the article and manner of adaptation - Answers - Law of capture
Which of the following is a titled estate?
Fee simple absolute
Fee simple conditional
Life estate
All of these - Answers - all of these
Which of these forms of co-ownership could best be described as "normal ownership,"
except that multiple owners can have unequal ownership interest in the same property?
Tenancy in common
Joint tenancy
Tenancy by the entirety
Condominium - Answers - tenancy in common
Which of these marriage-related forms of co-ownership gives each spouse a one-half
interest in any property that is "fruits of the marriage"?
Dower
Curtesy
Community property
Elective share - Answers - community property
Which of these liens has the highest priority?
First mortgage lien
