Chap 1

Question 1

A developer transfers privately owned streets in a subdivision to the city with the agreement that the city will maintain the streets in the future. This process is called?

Answer 1

Dedication

Question 2

Which term may only be used by members affiliated with the NAR?

A)
REALTOR®
 B)
Real estate broker
 C)
Real estate sales associate
 D)
Licensed real estate sales associate

Answer 2

A. REALTOR

Question 3

A couple tours several model homes in a new subdivision. The couple decides to purchase one of the available lots and have the builder construct one of the model floor plans on the lot. Which type of construction is this?

Answer 3

Tract Home

Question 4

The five major sales specialties do NOT include

A)
industrial.
 B)
businesses.
 C)
residential.
 D)
mixed-use property.

Answer 4

D. Mixed-use property

Question 5

An individual who, for a fee, finds tenants for available properties in a community is called

Answer 5

a rental agent

Question 6

A map that indicates the size and location of individual lots, streets, and public utilities within a new development is called

Answer 6

a subdivision plat map

Question 7

A marketing tool used by real estate licensees in the process of soliciting for listings that is intended to help sellers determine an asking price is called

Answer 7

a CMA comparative market analysis

Question 8

An individual who takes residential mortgage loan applications or offers to negotiate the terms of residential mortgage loan applications for compensation must hold which license?

Answer 8

MLO Mortgage Loan Originator

Question 9

The sales associate who worked with the buyers in the transaction sets up an appointment with the buyers to visit them six weeks after the sale. The sales associate routinely makes a visit after the title closing to thank the buyers for choosing her real estate company and to extend an offer to help with the buyers’ future real estate needs. What type of service is the sales associate providing?

Answer 9

Follow up

Question 10

Which term best describes a property owner who is NOT a resident of the property?
A)
Absentee owner
 B)
Tenant
 C)
Property manager
 D)
Rental agent

Answer 10

Absentee Owner

Question 11

What type of license or other credential is required for an individual to engage in the sale, purchase, or lease of businesses for others?

A)
Business broker license
 B)
Commercial business license
 C)
Real estate license
 D)
Member of national association of business brokers

Answer 11

Real Estate License

Question 12

Which statement concerning broker’s price opinions (BPOs) is TRUE?

A)
The payment for a BPO must be paid to the broker and not directly to the sales associate who prepared the BPO.
B)
All BPOs must conform to Uniform Standards of Professional Appraisal Practice (USPAP).
C)
A broker’s license is required to conduct a BPO.
D)
A BPO is also called an appraisal of real property.

Answer 12

A)

The payment for a BPO must be paid to the broker and not directly to the sales associate who prepared the BPO.

Question 13

This refers to a selected and limited geographic area to which a sales associate devotes special attention and study. Target marketing involves expertise in locating prospects.

Answer 13

Farm Area

Question 14

USPAP stands for what?

Answer 14

Uniform Standards of Professional Appraisal Practice

Question 15

This is a brokers opinion of the value of real property?

Answer 15

BPO Brokers Price Opinion

Question 16

These are the three general phases of development and construction, one includes recording of the subdivision plat map?

Answer 16

Land acquisition, Subdividing and Development

Question 17

The scope of work a property manager performs in detailed in the ?

Answer 17

Management Agreement

Question 18

A property manager’s charge is to protect the owner’s investment and maximize the owners ____?

Answer 18

ROI Return on Investment

Question 19

The product a RE sales associate must market is?

Answer 19

Expert Information

Question 20

The 3 areas of expertise that RE licensees bring to the transaction are knowledge of what 3 things?

Answer 20

Property Transfer, Market Conditions, How to Market RE & Businesses

Question 21

RE licensees who engage in the sale, purchase, or lease of businesses are called?

Answer 21

Business Brokers

Question 22

This involves the sale or lease of an existing business, including the sale of tangible and intangible assets?

Answer 22

Business Opportunity

Question 23

Managing which type of property of more than 10 unites, or annual budget in excess of 100K, requires a CAM license?

Answer 23

Condominium Complex. CAM is not required for apartment buildings, commercial property or single-family dwellings.

Question 24

Effective advertising involving developing a database of prospects to direct a specific message is called?

Answer 24

Target Marketing

Question 25

A broker charges a prospective client $50.00 for a CMA. Which statement applies?
A. Brokers are not permitted to charge for CMA’s.
B. This is permissible, provided the broker does not represent the CMA as an appraisal.
C. The broker must be a state-certified or license appraiser to do this
D. The CMA must be signed by a state-certified or licenced appraiser

Answer 25

B. This is permissible, provided the broker does not represent the CMA as an appraisal.