Chapter 1 - The Real Estate Business

Question 1

The real estate industry is regulated by federal, state and local laws, as well as by

Answer 1

it’s own professional codes of ethics

Question 2

People in real estate business who primarily focus on creating new properties are

Answer 2

Developers

Question 3

In addition to specifying who must obtain a real estate license and the requirements for obtaining one, license laws also define

Answer 3

How licensees must handle escrow deposits, funds, and fees

Question 4

What is the name of the professionals involved in the real estate business are most concerned about procuring buyers and sellers for clients?

Answer 4

Brokers and agents

Question 5

A real estate professional who oversees the day-to-day operation of a specific property on behalf of the owner is a(n)

Answer 5

property manager

Question 6

What is an advisory service provider?

Answer 6

A broker who renders real estate services for a fee

Question 7

The agency that administers and enforces license laws in each state is the

Answer 7

real estate commission, council, or similar board

Question 8

A residential property is one that

Answer 8

is used primarily for habitation

Question 9

The distinguishing feature of a commercial property is that

Answer 9

it ahs the potential to generate income from its use by a business

Question 10

Real estate activities

Answer 10

create, improve, manage, maintain, demolish, own, regulate, and transfer real properties

Question 11

Property type specializations

Answer 11

residential, residential income, office, retail, industrial, farm and ranch, special purpose, land

Question 12

Real estate brokerage

Answer 12

procure a buyer or tenant for an owner or landlord

Question 13

Forms of specialization

Answer 13

by property type, geographical area, type of transaction, type of client, by form of business organization, or by form of client relationship

Question 14

Skills and knowledge

Answer 14

market conditions, law, financing, marketing, ethics, selling, communications, computer basics and other skills

Question 15

Professional organizations

Answer 15

promote interests of practitioners and enhance their professional standing

Question 16

regulation of business practices

Answer 16

all facets of the industry are regulated by federal, state, and local laws; agents must understand relevant laws and adapt business practices accordingly

Question 17

Real estate license laws

Answer 17

the primary body of laws and regulations governing the licensure and conduct of real estate brokers and agents

license laws are administered and enforced under the jurisdiction of the state real estate commission

Question 18

Investment property

Answer 18

any property that is held by its owners for investment properties. Apartments, condos, etc

Question 19

Asset managers

Answer 19

Oversee groups of properties or portfolios. Their role is to achieve the investment objectives of the owners as opposed to managing day-to-day operations.