Chapter 1 Areas of Concern

Question 1

Describe the various activities of real estate brokerage

Answer 1

The various activities of a real estate brokerage include sales and leasing, property management, property valuation, financing, and counseling.

Question 2

Distinguish among the five major sales specialties

Answer 2

The five major areas of sales specialty include residential, commercial, industrial, agricultural, and businesses.

Question 3

Identify reasons why property management has grown in importance

Answer 3

Property management has become important in Florida due to an increase in absentee ownership.

Question 4

Distinguish between a comparative market analysis and an appraisal

Answer 4

Comparative Market Analysis, although an estimate of a property’s value, differs from a true appraisal in its complexity and depth. Real estate licensees perform CMA’s rather than appraisals.

Question 5

Understand the licensing requirements of mortgage bankers and mortgage brokers

Answer 5

NEED

Question 6

Explain the three phases of development and construction

Answer 6

Three phases of development and construction involve [1] land acquisition, [2] subdividing and developing, and [3] construction

Question 7

Distinguish among the three categories of residential construction

Answer 7

In speculative building, the builder builds a home on his own land in hopes of selling it. Custom building, on the other hand, the builder builds a pre-arranged home on an owner’s property.