section 1 the real estate business

Question 1

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 1

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

Question 2

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 2

b. state government.

Question 3

Q
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 3

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

Question 4

People in the real estate business who primarily focus on creating new properties are
a. brokers.
b. developers.
c. zoning administrators.
d. excavators.

Answer 4

b. developers

Question 5

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 5

b. retail, office and industrial properties.

Question 6

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 6

a. Brokers and agents

Question 7

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 7

b. By geography

Question 8

procure opposite party for buyer or tenant, owner or landlord

Answer 8

real estate brokerage

Question 9

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

Answer 9

real estate activities

Question 9

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

Answer 9

property type specialization

Question 10

property type, geographical area, transaction type, client type, business type, form of client relationship

Answer 10

farms of brokerage specialization

Question 11

Market conditions; law; fancying; marketing; ethics; selling; communication; computer basics;

Answer 11

skills and knowledge needed

Question 12

Promote interests of practitioners, enhance professional standing

Answer 12

major professional organization.

Question 13

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

Answer 13

regulation of business practices

Question 14

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

Answer 14

real estate license laws

Question 15

Property that is owned and used for habitation. Such properties may be further classified in terms of how many families they are designed to house, whether they are attached to other units or detached, and so forth.

Answer 15

residential property

Question 16

Held by the owners for investment purposes. Does not refer to owner-occupied properties

Answer 16

investment property

Question 17

refers to retail and office properties, but may also include industrial real estate. The term “commercial” relates to the fact that the property can potentially generate income from a business’s usage.

Answer 17

commercial property