Practice

Question 1

A person who conducts activities on behalf of a broker is called a(n) ___.

Answer 1

Salesperson

Question 2

Appraisers must have detailed knowledge of the methods of property ___.

Answer 2

Value

Question 3

Real estate professionals keep their skills and knowledge current by obtaining ___.

Answer 3

Continuing education

Question 4

A single-family home is a type of ___ property.

Answer 4

residential

Question 5

If the supply of a single-family home goes up and a major local employer lays off a large number of workers, the price of real estate tends to ___.

Answer 5

Decrease

Question 6

The splitting of a single piece of property into smaller parcels is called ___.

Answer 6

Subdivision

Question 7

Niche marketing refers to the targeted marketing of specific ___ populations.

Answer 7

Demographic

Question 8

A tax ___ for mortgage interest payments is a benefit of home ownership.

Answer 8

deduction

Question 9

A community implements land-use restrictions so that less vacant land is available for residential development. At this time, demand for housing increases due to higher population. Prices for real estate will tend to ___.

Answer 9

increase

Question 10

A ___ is a person or company licensed to represent others in the purchase, sale, exchange, or lease of real property.

Answer 10

Broker

Question 11

A ___ is a place where goods are bought and sold and a price for the goods is established.

Answer 11

market

Question 12

Real estate markets are ___ markets.

Answer 12

local

Question 13

Even if two parcels appear identical, they are never exactly alike because of this quality: ___.

Answer 13

uniqueness

Question 14

A ___ is a person who performs real estate activities while employed by, or associated with, a licensed real estate broker.

Answer 14

salesperson

Question 15

An owner of this type of housing owns an individual unit and also shares ownership of common facilities: ___.

Answer 15

Condominium

Question 16

___ is a real estate specialty that involves maintaining and administering another’s property for a fee.

Answer 16

property management

Question 17

___ is the process of using established methods and good judgement to form an opinion of the value of a property

Answer 17

appraisal

Question 18

The bringing together of parties interested in making a real estate transaction

Answer 18

Brokerage

Question 19

The characteristic of real estate that refers to the fact that property cannot be relocated elsewhereis ___.

Answer 19

Immobility

Question 20

A report based on visual survey of property structure, systems, and side conditionsis a(n) ___.

Answer 20

home inspection

Question 21

___ is the provision of a dwelling place for purchase or rental without discrimination based on an individual’s race, color, national origin, religion, sex, familial status, or disability.

Answer 21

Fair housing

Question 22

The 5 classes of real estate are…

Answer 22

Residential
Commercial
Industrial
Agricultural
Special purpose

Question 23

Rental is a class of real estate. True or false?

Answer 23

False

Question 24

Because of real estate’s ___ and ___, the market generally adjusts slowly to the forces of supply and demand.

Answer 24

Uniqueness and immobility

Question 25

The real estate market generally adjusts ___ to the forces of supply and demand.

Answer 25

Slowly

Question 26

Supply of labor generally has an effect on the ___ of real estate in a market

Answer 26

supply

Question 27

Cost of construction generally has an effect on the ___ of real estate in a market.

Answer 27

supply

Question 28

Brokerage is the only specialty in real estate. True or false?

Answer 28

False

Question 29

Appraisal and home inspection are...

Answer 29

Specialties in real estate

Question 30

Financing is a(n)...

Answer 30

specialty in real estate

Question 31

Property managers do not need to be overseen by a sponsoring broker. True or false?

Answer 31

False

Question 32

Residential leasing agents need to be overseen by a sponsoring broker. True or false?

Answer 32

True

Question 33

Warehouses are an example of ___ property.

Answer 33

industrial

Question 34

Factories are an example of ___ property.

Answer 34

industrial

Question 35

power plants are an example of ___ property.

Answer 35

industrial

Question 36

Real estate professionals generally tend to specialize in one activity or class of real estate. True or false?

Answer 36

True

Question 37

The amount invested in a property is the owner's ___.

Answer 37

Equity

Question 38

In general, the most widely recognized real estate activity is ___.

Answer 38

Brokerage

Question 39

Finding funds to put together real estate transactions is called ___.

Answer 39

Financing

Question 40

Real estate counseling is a(n)...

Answer 40

specialty in real estate

Question 41

Real estate education is a(n)...

Answer 41

specialty in real estate

Question 42

___ involves forming an opinion of value of the property.

Answer 42

Appraisal

Question 43

Market trends in ___ can be overturned by a natural disaster such as an earthquake.

Answer 43

supply & demand

Question 44

When job opportunities are scarce, demand for real estate tends to ___.

Answer 44

Decrease

Question 45

When employment wages are increased in an area, the demand for real estate tents to ___.

Answer 45

Increase

Question 46

A major employer moving into an area or shutting down can drastically affect ___ in the real estate market

Answer 46

demand

Question 47

Retail space is an example of ___ property.

Answer 47

Commercial

Question 48

Dormitories are an example of ___ property.

Answer 48

Special purpose

Question 49

A married couple filing jointly on their tax return can exclude up to ___ of profit from capital gains tax.

Answer 49

$500,000

Question 50

A single tax filer is entitled to exclude up to ___ from capital gains tax

Answer 50

$250,000

Question 51

A single filer can exclude up to $250,000, and a married couple can exclude up to $500,000 from ___.

Answer 51

Capital gains tax

Question 52

Demographics have an affect on ___ in real estate.

Answer 52

Demand

Question 53

When the population of a town suddenly increases, prices in real estate tend to ___.

Answer 53

Increase

Question 54

___ refers to the fact that each parcel of real estate occupies its own individual geographic location.

Answer 54

Uniqueness

Question 55

Government controls affect the ___ of real estate.

Answer 55

Supply

Question 56

Local zoning ordinances affect the ___ of real estate

Answer 56

Supply

Question 57

Local building codes affect the ___ of real estate.

Answer 57

Supply

Question 58

Government financial policies affect the ___ of real estate.

Answer 58

Supply

Question 59

A ___ examines property and reports problems.

Answer 59

Home inspector

Question 60

A ___ improves property.

Answer 60

Developer

Question 61

___ improvements are developed on public lands

Answer 61

offsite

Question 62

___ improvements are developed within the property.

Answer 62

onsite

Question 63

Roads are ___ improvements.

Answer 63

onsite

Question 64

Sewers are ___ improvements

Answer 64

offsite

Question 65

Water lines are ___ improvements

Answer 65

offsite

Question 66

A building is an ___ improvement.

Answer 66

onsite

Question 67

A fence is an ___ improvement

Answer 67

onsite

Question 68

When the supply of a certain commodity ___ while demand remains the same, prices of that commodity tend to increase.

Answer 68

Decreases

Question 69

When consumers continue to demand a product for which there is limited supply, prices generally ___.

Answer 69

Increase

Question 70

The ___ is the largest trade organization serving the real estate business.

Answer 70

National Association of REALTORS®

Question 71

Wastelands are a category of real property. True or false?

Answer 71

False

Question 72

Timberlands are an example of ___ property.

Answer 72

Agricultural

Question 73

The forces of ___ in the market determine how prices for goods and services are set.

Answer 73

Supply & demand

Question 74

Market trends in supply and demand can be ___ by a natural disaster, such as a hurricane or earthquake.

Answer 74

overturned

Question 75

What is a realtor?

Answer 75

A member of the National Association of Realtors

Question 76

What 4 factors affect demand in real estate?

Answer 76

Population Demographics Employment opportunities Wage levels

Question 77

High supply = ___ prices

Answer 77

Low

Question 78

Low supply = ___ prices

Answer 78

High

Question 79

Higher demand = ___ prices

Answer 79

High

Question 80

Low demand = ___ prices

Answer 80

Low

Question 81

Local governments can influence ___ in the real estate market.

Answer 81

Supply

Question 82

Land-use controls influence ___ in the real estate market

Answer 82

supply

Question 83

What 4 factors affect supply in the real estate market?

Answer 83

Skilled labor force Construction costs Government controls Government financial policies

Question 84

Policies on the taxation of real estate have significant and complex effects on the ___ of real estate.

Answer 84

Supply

Question 85

The Federal Reserve has an effect on the force of ___ in the real estate market.

Answer 85

Supply

Question 86

The ___ establishes a discount rate of interest for the money it lends out to its member banks.

Answer 86

Federal Reserve

Question 87

___ rates established by the Federal Reserve have an impact on the rates member banks charge to borrowers.

Answer 87

Interest

Question 88

___ involves marketing to a specific generation

Answer 88

Niche Marketing

Question 89

A real estate agent advertises that she is bilingual in both English and Spanish and therefore can provide services to Hispanic clients who may only be fluent in Spanish without needing a translator. What is the real estate agent doing?

Answer 89

Niche Marketing

Question 90

Family size is an example of ___.

Answer 90

Demographics

Question 91

An apartment complex is an example of ___ property.

Answer 91

Residential

Question 92

Jewel Osco is an example of ___ property.

Answer 92

Commercial

Question 93

Union Station is an example of ___ property.

Answer 93

Special Purpose

Question 94

A bowling alley would be considered as ___ property.

Answer 94

Commercial

Question 95

The ratio of adults to children in a household is an example of ___.

Answer 95

Demographics

Question 96

A local elementary school recently constructed a playground that is wheelchair accessible. A real estate agent purchases an advertisement on a billboard next to a local pediatric physical therapy clinic, advertising that she is selling homes in the same neighborhood where this school is located. What is this an example of?

Answer 96

Niche marketing

Question 97

The person who is the point of contact between two or more parties in negotiating the sale, purchase, or rental of real estate is a ___.

Answer 97

Real Estate Licensee

Question 98

All real estate licensees are employed by a ___.

Answer 98

Sponsoring broker

Question 99

Who oversees services conducted by real estate licensees?

Answer 99

Sponsoring broker

Question 100

___ brings together tenants and prospective rental properties

Answer 100

Residential leasing agents

Question 101

The ___ is responsible for the actions of all licensees working under the umbrella of the firm.

Answer 101

Sponsoring broker

Question 102

Real estate licensees conduct services on behalf of a ___.

Answer 102

Sponsoring broker

Question 103

A professional ___ substantiates the sales price of a home and assists the lender in determining the maximum loan amount.

Answer 103

appraisal

Question 104

Appraisal is the process of rendering an opinion of a property's ___.

Answer 104

Value

Question 105

Most real estate transactions are financed by means of ___ or ___.

Answer 105

Mortgage loans Trust deed loans

Question 106

What establishes minimum education requirements for obtaining and keeping a real estate license?

Answer 106

State licensing laws

Question 107

Members of the National Association of Realtors must subscribe to a(n)...

Answer 107

Code of ethics

Question 108

___ property includes all property used for housing.

Answer 108

Residential

Question 109

___ property is business property.

Answer 109

Commercial

Question 110

___ property includes government held lands.

Answer 110

Special purpose

Question 111

Fred owns a property in Dekalb. On this property, he raises chickens for eggs, raises cows for milk, and plants fields of corn and wheat. He sells the products that he produces to a local supermarket. What type of property does Fred own?

Answer 111

Agricultural

Question 112

McDonalds is an example of ___ property.

Answer 112

Commercial

Question 113

The real estate market can be subdivided into the ___ market and the ___ market.

Answer 113

Sales market Rental Market

Question 114

The ___ market involves the transfer of a title and ownership rights

Answer 114

Sales market

Question 115

The ___ market involves temporarily leasing space to tenants

Answer 115

Rental

Question 116

How many categories of real property do real estate licensees generally choose to specialize in?

Answer 116

One

Question 117

What establishes market value?

Answer 117

Supply & Demand