Section 1 Real Estate Business

Question 1

True or false, real estate licensees are allowed to sell a business opportunity only if the real estate is sold along with the business?

Answer 1

False

Real estate licensees, Per Florida statutes, are licensed to sell business opportunities as well as handle the sale of the business real estate or lease of the real estate.

Question 2

True or false, real estate licensees may not appraise Real Property per the Florida real estate commission rules.

Answer 2

False

Real estate licensees may appraise Real Property provided they do not represent themselves as state certified, registered or licensed appraiser’s.

Question 3

True or false, rental agents collect a fee for finding a tenant for a landlord while property managers continue to manage the property once a tenant is found.

Answer 3

True

Question 4

True or false, per Florida statutes 177.091, plat maps must be recorded into the public records.

Answer 4

True

Question 5

True or false, a real estate brokerage is a business where sales associates provide real estate services to clients for compensation.

Answer 5

False

A real estate brokerage is a business where a managing broker oversees the broker associate/sales associate that work for the brokerage and provide real estate services to clients for compensation. Sales associates do not work directly for the client or paid directly by the client.

Question 6

True or false, there are three phases of development and construction that each project goes through: land acquisition, subdividing, and development.

Answer 6

True

Question 7

True or false, developers often sell land to a governmental body for public use when developing land.

Answer 7

False

Developers often dedicate land to a governmental body for public use when developing land.

Question 8

True or false, conducting a real estate appraisal is the process of estimating the value of real estate.

Answer 8

True

Question 9

True or false, USPAP ethics rule regarding compensation states that the payment of undisclosed fees, commissions, or things of value in connection with the procurement of an assignment is unethical.

Answer 9

True

Question 10

True or false, a farm area is an area/neighborhood picked by a licensee to market to on a very regular basis.

Answer 10

True

Question 11

Nick slick is a property manager for Tony tiger. Nick’s main objective as a property manager is to:

1. Obtain a renter for Tony Tigers property
2. Advertise that Tony Tiger has a property available for rent
3. Collect rental payments and maintaining escrow accounts per the law
4. Protect and maintain Tony Tigers property while maximizing Tony Tigers return on the investment

Answer 11

4, protect and maintain Tony Tigers property while maximizing Tony Tigers return on the investment.

Question 12

Mic visited a neighborhood that was being developed by Fred Flintstone. Developer Fred let Mic describe the home of Mic’s dreams and then Fred built it for Mic. This type of construction is called:

1. Tract
2. Spec
3. Custom
4. Dedication

Answer 12

3, custom

Question 13

Which real estate specialty handles properties designed for retail locations, restaurants, and professional offices?

1. Residential
2. Commercial
3. Industrial
4. Agricultural

Answer 13

2, commercial

Question 14

Generally, real estate agents perform a comparative market analysis for their clients to:

1. Help them determine a price to list when selling a home or a price to offer when buying a home
2. Determine value when working with a relocation company
3. When obtaining a FHA loan
4. When he brokers price or Pinyan isn’t a viable option to determine value

Answer 14

1, help them determine a price to list when selling a home or a price to offer when buying a home

Question 15

Sarah holds a real estate license. She was asked to appraise a property. She can do so provided Sarah:

1. Does not represent herself as state certified, registered or licensed appraiser; does not accept a fee; and follows USPAP standards
2. Does not represent herself as state-certified, registered or licensed appraiser; does not accept a fee based on the appraised value; is not doing it for a federally related transaction, and follow USPAP standards
3. Does so only by using the comparative market analysis or broker price opinion format
4. Does so only for a federally related transaction

Answer 15

2, does not represent herself as state certified, registered or licensed appraiser; does not accept a fee based on the appraised value; is not doing it for a federally related transaction, and follows USPAP standards.

Question 16

Max owns a piece of real estate but does not live in it. Max is called:

1. An absentee owner
2. An investment broker
3. A property manager
4. A second homeowner

Answer 16

1, an absentee owner

Question 17

Which real estate specialty generally consist of properties used for manufacturing, recycling, and distribution businesses?

1. Residential
2. Commercial
3. Industrial
4. Agricultural

Answer 17

3, industrial

Question 18

State certified, licensed and registered appraisers are regulated by:

1. The Florida real estate commission
2. The Florida real estate appraisal board
3. Division of real estate
4. The appraiser’s conference and standards commission

Answer 18

2, The Florida real estate appraisal board

Question 19

Real estate licensee Lucy decided to target a specific area near her own home and began making consistent marketing touches to cultivate buyers and sellers. This process is known as:

1. Canvassing
2. Farming
3. Plottage
4. Block busting

Answer 19

2, farming

Question 20

Expert information is the product that a broker, sales associate, or broker associate must market and contributes to a real estate transaction in all of the following areas except:

1. Knowledge of property transfer
2. Knowledge of estate management
3. Knowledge of the market conditions
4. Knowledge of how to market real estate

Answer 20

2, knowledge of estate management