Superior NC Real Estate Question and Answer
Grade A+ 100% Correct Questions and Answers
• Bundle of Rights . Answer: All real property rights that are conferred with
ownership, including right of possession, right of quiet enjoyment, right of
disposition, right of exclusion, and right of control.
• Heterogeneity . Answer: A characteristic of real property indicating its diversity
or uniqueness.
• Highest and Best Use . Answer: The most profitable, legally permitted,
financially feasible, and physically possible use of a piece of property.
• Immobility . Answer: A physical characteristic of real estate referring to the fact
that the real estate itself cannot move from one place to another.
• Improvements . Answer: Additions to real property that are man-made,
substantial fixtures, such as buildings.
• Independent Contractor . Answer: Under common law, a person who contracts to
do a job for another but maintains control over how the task will be carried out,
rather than following detailed instructions.
• Indestructibility . Answer: Refers to the fact that real estate cannot be destroyed.
• Land . Answer: The surface of the earth, and everything under the ground to the
center of the earth, and the airspace above as far as can reasonably be used.
• Land Use Controls . Answer: Public or private restrictions on how land may be
used (e.g., zoning).
• Personal Property . Answer: Any property that is not real property. It is
moveable, thus not fixed to the land. Includes tangible items that are not
permanently attached to or part of real estate and any property that is not real
property. Also called Chattel or Personalty.
• Public Restriction . Answer: A law or regulation limiting or regulating the use of
real property.
, • Real Estate . Answer: The actual physical land and everything, both natural and
man-made, which is attached (or appurtenant) to it.
• Real Property . Answer: Land, its attachments, and the rights associated with the
property. Real property includes real estate plus interests, rights, and benefits of
ownership. It may be legally referenced as land, tenements, and hereditaments.
Also called Realty.
• Scarcity . Answer: A physical characteristic of real property that says there is a
limited supply of real estate; the perceived supply of a good or service relative to
the demand for the item.
• Situs . Answer: A place where something exists; an area with preferred features,
giving it value to the property; the exact location or position of a piece of real
estate. Also called Location or Area Preference.
• Supply and Demand . Answer: An economic principle that says that for all
products, goods, and services when supply exceeds demand, prices will fall and
when demand exceeds supply, prices will rise.
• Tax Shelter . Answer: 1. Any method used to reduce taxable income, thereby
reducing the amount of tax paid to a government.
2. Property or other investments that give owners certain income tax advantages,
such as deductions for property taxes, mortgage interest, and depreciation.
• Tenements . Answer: Everything of a permanent nature associated with land and
ordinarily transferred with the land. Tenements are both tangible (e.g., buildings)
and intangible (e.g., air rights).
• Uniqueness . Answer: A characteristic of real property: each piece of land, each
building, and each house is a different piece of real estate. Also called Non-
Homogeneity or Heterogeneity.
• There are four broad forces that affect the real estate market . Answer: Physical,
economic, government, and social.
• There are different categories of broker licensees . Answer: provisional broker,
broker, and broker-in-charge.
Grade A+ 100% Correct Questions and Answers
• Bundle of Rights . Answer: All real property rights that are conferred with
ownership, including right of possession, right of quiet enjoyment, right of
disposition, right of exclusion, and right of control.
• Heterogeneity . Answer: A characteristic of real property indicating its diversity
or uniqueness.
• Highest and Best Use . Answer: The most profitable, legally permitted,
financially feasible, and physically possible use of a piece of property.
• Immobility . Answer: A physical characteristic of real estate referring to the fact
that the real estate itself cannot move from one place to another.
• Improvements . Answer: Additions to real property that are man-made,
substantial fixtures, such as buildings.
• Independent Contractor . Answer: Under common law, a person who contracts to
do a job for another but maintains control over how the task will be carried out,
rather than following detailed instructions.
• Indestructibility . Answer: Refers to the fact that real estate cannot be destroyed.
• Land . Answer: The surface of the earth, and everything under the ground to the
center of the earth, and the airspace above as far as can reasonably be used.
• Land Use Controls . Answer: Public or private restrictions on how land may be
used (e.g., zoning).
• Personal Property . Answer: Any property that is not real property. It is
moveable, thus not fixed to the land. Includes tangible items that are not
permanently attached to or part of real estate and any property that is not real
property. Also called Chattel or Personalty.
• Public Restriction . Answer: A law or regulation limiting or regulating the use of
real property.
, • Real Estate . Answer: The actual physical land and everything, both natural and
man-made, which is attached (or appurtenant) to it.
• Real Property . Answer: Land, its attachments, and the rights associated with the
property. Real property includes real estate plus interests, rights, and benefits of
ownership. It may be legally referenced as land, tenements, and hereditaments.
Also called Realty.
• Scarcity . Answer: A physical characteristic of real property that says there is a
limited supply of real estate; the perceived supply of a good or service relative to
the demand for the item.
• Situs . Answer: A place where something exists; an area with preferred features,
giving it value to the property; the exact location or position of a piece of real
estate. Also called Location or Area Preference.
• Supply and Demand . Answer: An economic principle that says that for all
products, goods, and services when supply exceeds demand, prices will fall and
when demand exceeds supply, prices will rise.
• Tax Shelter . Answer: 1. Any method used to reduce taxable income, thereby
reducing the amount of tax paid to a government.
2. Property or other investments that give owners certain income tax advantages,
such as deductions for property taxes, mortgage interest, and depreciation.
• Tenements . Answer: Everything of a permanent nature associated with land and
ordinarily transferred with the land. Tenements are both tangible (e.g., buildings)
and intangible (e.g., air rights).
• Uniqueness . Answer: A characteristic of real property: each piece of land, each
building, and each house is a different piece of real estate. Also called Non-
Homogeneity or Heterogeneity.
• There are four broad forces that affect the real estate market . Answer: Physical,
economic, government, and social.
• There are different categories of broker licensees . Answer: provisional broker,
broker, and broker-in-charge.
