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NATIONAL REAL ESTATE ASSOCIATION, INC.

EDUCATION AND INFORMATION COMMITTEE


Business & Training Center, Maya Building, 678 EDSA, Cubao, 1109 Quezon City

DIAGNOSTIC TEST - 1
MULTIPLE CHOICE
Direction : Choose the best answer. In your answer sheet, find the number of
the question and fill in the space that corresponds to the letter of the answer
you have chosen.
1.

The physical characteristic of real property that no two parcels of land are
exactly alike is called ___________.
a. Immobility
b. Nonhomogeneity
c. Situs
d. Indestructibility

2. The economic characteristics of real property include all of the following except
_____________.
a. Nonhomogeneity
b. Scarcity
c. Situs
d. Fixity (permanence of investment)
3. Which of the following factors would not be considered when determining
whether an item of personal property has become real?
a. Method of attachment
b. Value of the item
c. Permanence of the installation
d. Agreement between the parties
4. A shopping mall is an example of what type of real estate?
a. Industrial
b. Commercial
c. Residential
d. Special Purpose
5. Laws developed through the years by the courts based on custom and usage are
referred as _____________.
a. The Allodial System
b. Common Law
c. Statute Law
d. Emblements

6. The economic characteristic of scarcity refers to which of the following?


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a.
b.
c.
d.

No two parcels of land are exactly alike.


There may not be enough land in certain areas to satisfy demand.
People prefer certain areas.
The real estate industry has run out of land continue sufficient
development.

7. Included in the term real property.


a. Is anything permanently affixed to the land.
b. Are the air rights to the property.
c. Are mineral rights to the property.
d. All of the above.
8. The economic characteristic of situs refers to which of the following?
a. No parcels of land are exactly alike.
b. There may not be enough land in certain areas to satisfy demand.
c. People prefer certain areas.
d. Land cannot be destroyed.
9. A warehouse is an example of what type of real estate?
a. Residential
b. Special Purpose
c. Industrial
d. Commercial
10.A system of laws that recognizes private ownership of land is referred to as
_______________.
a. The Allodial System
b. Common Law
c. Statute Law
d. Feudal Law
11.Of the following items, which would be considered personal property?
a. A stores display counters
b. A garage
c. An installed dishwasher
d. Growing bushes
12.In the real estate market supply and demand interact to affect property prices.
Which of the following relationships is not correct?
a. When demand decrease, prices increase.
b. When supply increases, prices decrease.
c. When demand decrease, prices decrease.
d. When supply decreases, prices increase.
13.The physical characteristics of real property include all of the following except
________________.
a. Nonhomogeneity
b. Immobility
c. Situs
d. Indestructibility

14.Which of the following factors would not be considered when determining


whether an item of personal property has become real?
a. Agreement between the parties.
b. Method of attachment.
c. Permanence of the installation.
d. The length of time the item was been.
15.In the real estate market there are several factors that affect the supply and
demand of real estate. Which of the following would not affect the supply of real
estate?
a. The demographics of the countrys population.
b. The availability of building supplies.
c. Changes in the local governments zoning codes.
d. The availability of skilled construction labor.
16.The term REALTOR can be used only by _________________.
a. Licenses Brokers
b. Full-time licensed Salespersons or Brokers
c. All licensed Salesperson and Brokers
d. Licensees who are members of the National Association of Realtors
17.The term land includes all of the following except ______________.
a. Trees growing on the property
b. The propertys surface
c. Below the property to the center of the earth
d. A shed constructed on the property.
18.An office building is an example of what type of real estate?
a. Residential
b. Special Purpose
c. Industrial
d. Commercial
19.A mobile home on a permanent foundation most likely would be considered
__________________.
a. Chattel property
b. A Trade Fixture
c. Real Property
d. Personal Property
20.The economic characteristic of fixity refers to which of the following statement?
a. Investments in real estate are usually for the long term.
b. Land cannot be destroyed.
c. Land cannot be removed.
d. No two parcels of land are exactly alike.
21.All of the following are true regarding emblements except they ________________.
a. Are also called fructus industrials
b. Include cultivated crops.
c. Are considered real property.
d. Are also called fruits of industry.
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22.Services provided by the real estate industry include all of the following except
________________.
a. Bringing home buyers and sellers together.
b. Managing real estate for investors.
c. Selling homeowners insurance
d. Estimating the value of real estate.
23.Which of the following is considered to be personal property?
a. Trees growing on the property.
b. Trade fixtures installed on the property.
c. A garage.
d. A driveway.
24.Which economic characteristic of real estate refers to the concept that changes
in a parcel of land affect its value either favorably or unfavorably?
a. Fixity
b. Scarcity
c. Nonhomogeneity
d. Modifications
25.A tenant occupies a rental unit in an apartment building and installs new wooden
kitchen cabinets. At the end of the lease the tenant wishes to remove the
cabinets. Which of the following is true regarding removal of the cabinets?
a. The cabinets can be removed by the tenant.
b. The cabinets can be removed, but the tenant owes compensation to the
property owner.
c. The cabinets must stay, but the tenant is entitled to compensation.
d. The cabinets must stay.
26.A church is an example of what type of real estate?
a. Residential
b. Special Purpose
c. Industrial
d. Commercial
27.A restaurant owner occupying a leased space in commercial building installs a
large neon sign in the window. The sign would probably be considered
____________________.
a. An emblements
b. A Trade Fixture
c. Real Property
d. A Fixture.
28.What physical characteristic makes real estate easy for local governments to tax
and causes it to be heavily influenced by changes in the surrounding areas?
a. Indestructibility
b. Nonhomogeneity
c. Immobility
d. Situs

29.Which of the following is included in the definition of real estate but not in the
definition of land?
a. The air rights.
b. The propertys surface.
c. Below that property to the center of the earth.
d. Fixtures on the property.
30.Which economic characteristics of real estate refer to the concept that the
supply of land is limited and therefore strong demand in certain areas will
increase property values?
a. Fixity
b. Scarcity
c. Nonhomogeneity
d. Modifications