Certified Residential Appraiser Practice Exam

Which characteristic of land refers to its long-lasting asset nature and economic life?

1. Utility

2. Durability

3. Scarcity

4. Transferability

The correct answer is: Durability

The characteristic of land that refers to its long-lasting asset nature and economic life is durability. Durability pertains to the inherent quality of land as a physical asset that does not wear out or diminish in value like many other types of property over time. Unlike buildings or other structures that may require depreciation or face obsolescence due to age or changing conditions, land remains a stable resource. This stability allows land to maintain its value over extended periods, making it a reliable investment. The long-lasting aspect of land means that it does not suffer from the same degree of deterioration that can affect buildings, roads, or other improvements. Hence, durability highlights the remarkable longevity of land as an economic resource, affirming its critical role in real estate and investment planning. In the context of the other options: utility refers to the usefulness of the land for various purposes, scarcity relates to the limited availability of land which can enhance value, and transferability involves the ease with which ownership can be conveyed. While all these characteristics are essential in the field of real estate, they do not specifically capture the long-lasting and enduring value that defines durability.