Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

The investment permanence of land is also known as ______.

1. Fixity

2. Liquidity

3. Durability

4. Stability

The correct answer is: Fixity

The concept of investment permanence of land is known as fixity. This term emphasizes that land is a unique and indestructible resource, reflecting its long-term value and ability to retain value over time. Unlike personal property or improvements that can depreciate or be removed, land itself remains fixed in location and generally appreciates in value as demand increases. In real estate, fixity suggests that land is not easily convertible to cash or other forms of investment, which distinguishes it from liquidity, the ability to quickly convert an asset into cash without significant loss of value. Additionally, while durability and stability may describe certain characteristics of properties or investments over time, fixity uniquely captures the essence of land as an enduring asset that underpins the concept of investment permanence. This understanding is crucial for real estate professionals when considering the long-term implications of land investments.