Texas Real Estate State Practice Exam

What emphasizes that land and buildings are fixed or permanent investments rather than liquid assets in real estate?

1. Fixity

2. Scarcity

3. Indestructibility

4. Modification

The correct answer is: Fixity

The concept that emphasizes land and buildings as fixed or permanent investments is primarily related to fixity. Fixity refers to the notion that real estate is immobile and cannot be moved. Unlike liquid assets such as stocks or bonds, which can be quickly bought or sold, real estate transactions typically involve a longer time frame and a greater level of investment permanence. This characteristic underscores the idea that land and buildings are significant, lasting investments, often requiring considerable time and resources to acquire and develop. Other options like scarcity, indestructibility, and modification relate to different aspects of real estate. Scarcity pertains to the limited availability of land and resources, which can affect value but does not specifically address the permanence of the investment. Indestructibility refers to the inherent durability of land and buildings, suggesting they cannot be destroyed. While this is a valid characteristic, it doesn't focus on the fixed investment nature. Modification involves changes made to the property, which also doesn't capture the essence of fixity as it relates to immobility and permanence in investment.