Chapter 1

Question 1

Real estate salesperson spend the majority of their time and effort in which category of real estate related tasks:

Answer 1

Sale or transfer

Question 2

As with other goods and services in tbe marketplace, real estate is affected by which 4 factors:

Answer 2

1. Supply and demand
2. Pricing
3. Costs incurred in bringing the properties to market
4. Value aspects of desire, usefulness, scarcity and ability to pay

Question 3

An overabundance of lower priced homes with many more buyers than homes available

Answer 3

Sellers market

Question 4

Number if higher prices homes for sale and only a few buyers for that price range

Answer 4

Buyers marker

Question 5

Defined as land or improved property with buildings designed for humans to live in

Answer 5

Residential property

Question 6

Land used for industrial purposes, such as Warehouses, factories, or power plants

Answer 6

Industrial property

Question 7

Income producing properties - office buildings, restaurants, shopping centers

Answer 7

Commercial property

Question 8

Land used primarily for growing crops or raising livestock

Answer 8

Agricultural property

Question 9

Land used for leisure activities - parks, forests, time shares

Answer 9

Recreational property

Question 10

Any property that is being held as an investment to generate income or profit. Any residential, commercial, or industrial property could be considered this

Answer 10

Investment property

Question 11

Brokers and salespersons can choose to specialise in different areas of real estate, some including:

Answer 11

1. Type of property
2. Clients
3. Geography
4. Business type
5. Transactions
6. Auction sale
7. Mortgage loans

Question 12

A legal document that pledges a property to the lender as security for payment of a debt

Answer 12

Mortgage

Question 13

How are properties affected by the local economy?

Answer 13

If the economy picks up, sales increase.

If the economy slows down, sales decrease.

Question 14

What does NAR stand for? What does NAR do?

Answer 14

1. National association of realtors

2. Enforces professional standards of conduct through its code of conduct.

Question 15

Good ethical practices have to do with what?

Answer 15

Trustworthiness, honesty, and competence

Question 16

What is the goal of the code of ethics?

Answer 16

1. To encourage the highest standards of ethical business practice by all members of association
2. provide protection for the public by using a formal complaint process

Question 17

What does the Preamble container?

Answer 17

Principles we consider aspirational only - things that cant be enforced. They are the ideas that the whole real estate community hopes the REALTORS will aspire and make apart of their practice

Question 18

What must a salesperson do when licensed to a broker?

Answer 18

The salesperson is licensed to perform transactions on behalf of their broker. The salesperson must perform all activities in the name of the broker.

Question 19

What types of insurance may brokers require licensees carry?

Answer 19

1. Automobiles insurance - naming broker as insured

2. Errors and ommisions insurance - covering broker and salesperson for negligent acts

Question 20

Which of the following would be an example of a licensed specializing in business type?

1. Jim specializes in clients who want to buy restaurants
2. Alice knows everything about the exclusive east side neighborhoods
3. Tom specializes in options
4. Chris is a buyers agent

Answer 20

1. Jim specializes in clients who want to buy restaurants

Question 21

The purpose of the NAR stands of practices is to:

1. Clarify, interpret, or give examples of the intent of the article itself
2. Share legal opinions with NAR members
3. Provide a source for the collection and sharing of market trend data
4. Allow for the collection of source data for government review

Answer 21

1. Clarify, interpret, or give examples of the intent of the article itself