Unit 1 - 1 State - Real Estate Business

Question 1

Unit 1

Business Broker

Answer 1

No special license needed; active current sales associate

sale, purchase, or lease of businesses

Question 2

Unit 1

Property Manager vs Rental Agent

Answer 2

PM maintains and manages

Rental Agent only finds tenant

Question 3

Unit 1

Community Association Manager (CAM)

Answer 3

Must hold a CAM license when community association consists of more than 10 units or has an excess of $100,000 annual budget

Applicable to mobile home parks, planned unit developments, HOA, coops, time-shares, condominiums, and other residential units

Question 4

Unit 1

Types of Valuation Methods for Appraisals

USPAP required?

Certified or Licensed Aprraiser required?

Answer 4

federally related loan = Yes and Yes

not federally related = Yes and No

BPO = No and No

CMA = No and No

Question 5

Unit 1
Comparative Market Analysis (CMA)
Prepare using???

Answer 5

prepare CMA by collecting

1. Recent sales of similar properties
2. Properties currently offered for sale
3. Recently expired listings

As long as not federally related loan and not a an appraisal, do not need to conform to USPAP or be a licensed appraiser

Question 6

Broker’s price opinion (BPO)

Answer 6

*written opinion of the value of real property

*normally bank contacts broker to provide BPO on distressed/short sale property

*BPO normally requires a fee (cannot be called appraisal)

Can be prepared by sales associate or broker associate as long as working under a broker and not called a formal appraisal

Question 7

Unit 1
Can real estate licensees accept referral fees from mortgage lenders?

Answer 7

No, unless they have MLO (mortgage loan originators) license

Question 8

Unit 1

Subdivision plat map

Answer 8

Developers must submit and have approved and recorded on public record before starting to build

Includes lot sizes, streets, public utilities, etc