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

Which of the following is NOT considered an economic characteristic of land?

1. Economic scarcity

2. Fixity

3. Durability

4. Situs

The correct answer is: Durability

In the context of real estate, economic characteristics of land refer to attributes that influence its value in the marketplace. These characteristics include factors that affect the supply and demand dynamics of land, such as its uniqueness, location, and the ways in which it can be utilized. Durability refers to the physical nature of land and its inherent ability to last over time without significant deterioration. While durability is an important aspect when considering the physical characteristics of land, it does not relate to the economic factors that can impact its value. Economic scarcity, fixity, and situs, on the other hand, have direct implications on how land is perceived and valued economically. Economic scarcity refers to the limited availability of land in certain areas, affecting supply. Fixity describes the idea that land is immovable, which has implications for investment decisions. Situs pertains to the location of the property, which impacts desirability and value. Each of these factors plays a role in determining the market value of land based on economic considerations. Thus, durability, while significant, does not align with this economic framework.