Colibri Real Estate Chapter 1 Updated Exam |Questions With Verified Answers

Colibri Real Estate Chapter 1 Updated Exam |Questions With Verified Answers What five economic characteristics affect the value of land in the marketplace? (D.U.S.T.S) Correct Answer 1. Demand; The more demand a property has, the higher the value 2. Utility (Or usefulness); More space/rooms more useful .3 bed 4 bath > 1 bed 2 bath 3. Scarcity; A property will sell quickly if limited property's available 4. Transferability; Real estate is readily transferable from seller to buyer (loans available, rates are low) 5. Situs; (Site) Unique property attractiveness What are the three physical characteristics of land? Correct Answer - Immobile or permanent - Indestructible - Non-homogenous or unique Explain the differences between the legal concepts of land and real estate. Correct Answer The legal concept of Real Estate encompasses all man made structures that are "permanently" attached to the land and on top of the land itself. Define special purpose real estate and give an example. Correct Answer A property that doesn't fall into the Residential, Industrial, Commercial, Agricultural property categories; usually churches, hospitals, schools or recreational areas Name the 5 major rights included in the bundle of rights to real estate. Correct Answer The right of Possession The right to Transfer Interests The right to Encumber The right to Exclude The right to Use Define the "right to use" and it's limitations Correct Answer The right to use a property refers to the right to use it in certain ways like, mining, building or landscaping depending on the local zoning and legality of use. One's right to use must not infringe on another's right to use and enjoy the property What's the difference between Littoral rights and Riparian rights? Correct Answer Littoral rights apply to properties bordering still standing bodies of water like oceans while Riparian rights apply to properties bordering moving bodies like rivers What are the legal tests that determine if an item is a fixture? Correct Answer Original Intention