Chapter 1: A career in Real Estate

Question 1

The Department of Housing and Urban Development (HUD):

Answer 1

Establishes criteria for residential property loans insured or guaranteed by the government.

Question 2

The real estate trade organization that expects its members to follow its outlined Code of Ethics is the:

Answer 2

National Association of Realtors

Question 3

Which statement regarding a professional home inspection is FALSE?

Answer 3

The seller must preform all repairs requested by the buyer, or be in breach of contract.

Question 4

Which of the following is NOT a natural resource property?

Answer 4

Properties abutting the sea.

Question 5

When dealing with a manufactured home, a real estate licensee can sell a manufactured structure that is:

Answer 5

Permanently attached to the land.

Question 6

Which of the following would hinder the success of a new licensee?

Answer 6

Taking advantage of clients.

Question 7

The agency that administers real estate regulations in Nevada is the:

Answer 7

Nevada Real Estate Division.

Question 8

A section 1031 tax-deferred exchange is NOT:

Answer 8

a method for the exchanger to defer capital gains taxes on the sale of a primary residence.

Question 9

This course is largely about one particular area of real estate but introduces “specialized areas of real estate.” These specialized areas require additional training and knowledge beyond the scope of this course. Which is the area of real estate do we NOT consider to be a specialized area?

Answer 9

Residential

Question 10

Which agency directly affects the amount of money available for mortgage loans and the rate charged to commercial banks?

Answer 10

Federal Reserve Board.