Chapter One - The Real Estate Business

Question 1

Property management and real estate asset management are both real estate management professions. The primary distinction between the two is that

a. property managers always report to an asset manager.
b. asset managers have greater knowledge of a property’s finances.
c. property managers handle day-to-day operations while asset managers manage portfolios of properties.
d. asset managers are primarily responsible for maintenance technicians.

Answer 1

c. property managers handle day-to-day operations while asset managers manage portfolios of properties.

Question 2

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

a. brokers.
b. developers.
c. zoning administrators.
d. excavators.

Answer 2

b. developers.

Question 3

The term “commercial property” generally refers to

a. non-owner-occupied properties.
b. retail, office and industrial properties.
c. multi-tenant properties.
d. retail properties.

Answer 3

b. retail, office and industrial properties.

Question 4

Which of the following professionals involved in the real estate business are most concerned about procuring buyers and sellers for clients?

a. Brokers and agents
b. Property managers
c. Corporate real estate managers
d. Appraisers

Answer 4

a. Brokers and agents

Question 5

Which of the following ways of specializing is common in the real estate brokerage business?

a. By type of house
b. By geography
c. By financial background of client
d. By type of mortgage

Answer 5

b. By geography

Question 6

What is an advisory service provider?

a. A broker of fee simple titles
b. A corporate real estate broker
c. A broker performing non-transactional services for a commission
d. A broker who renders real estate services for a fee

Answer 6

d. A broker who renders real estate services for a fee

Question 7

7. The level of government which is most active in regulating real estate licensees is the
   a. federal government.
   b. state government.
   c. county government.
   d. municipal government where the person resides.

Answer 7

b. state government.