Unit 1

Question 1

A licensee is a person who has satisfied the requirements of the employing broker.

Answer 1

False

Question 2

Improvements, such as water lines and storm sewers, made on public lands to serve a new development are called off-site improvements.

Answer 2

True

Question 3

Shopping centers, stores, theaters, hotels, and parking facilities are examples of special-purpose properties.

Answer 3

False

Question 4

Because it is possible for a single real estate firm or an individual real estate professional to perform all the services and handle all classes of property, few firms and professionals specialize in any one type.

Answer 4

False

Question 5

Real estate professionals are in violation of the Fair Housing Act if they discriminate based on a client’s race.

Answer 5

True

Question 6

Fair housing laws do not exist in state or local governments.

Answer 6

False

Question 7

The Federal Reserve Board (the Fed) establishes a discount rate of interest for the money it lends to commercial banks.

Answer 7

True

Question 8

Two characteristics of real estate govern the way the market reacts to the pressures of supply and demand: uniqueness and immobility.

Answer 8

True

Question 9

A person who performs a visual survey of a property structure and writes a report for a buyer is

Answer 9

a home inspector.

Question 10

Information including age, education, behavior, and other characteristics of members in a certain population is

Answer 10

demographics

Question 11

When demand for a commodity decreases and supply remains the same,

Answer 11

price tends to fall.

Question 12

Detailed information about the age, education, behavior, and other characteristics of members of a population group is called

Answer 12

demographics.

Question 13

A highrise development that includes office space, stores, theaters, and apartment units is an example of

Answer 13

mixed-use development.

Question 14

The splitting of a single property into smaller parcels is called

Answer 14

subdivision.

Question 15

The supply of land is affected by

Answer 15

monetary policy

Question 16

A building that is remodeled into residential units and no longer used for its original purpose is an example of

Answer 16

a converted-use property.

Question 17

The scope of the property manager’s work depends on the terms of the individual employment contract, known as

Answer 17

a management agreement.

Question 18

The MOST common real estate transaction is

Answer 18

the purchase of a home.

Question 19

Commercial real estate includes

Answer 19

office space, shopping centers, and stores, as well as theaters, hotels, and parking facilities.

Question 20

Special-purpose real estate includes

Answer 20

churches, schools, cemeteries, and government-held lands.

Question 21

When supply and demand for a good or service are roughly balanced, the price of the good or service

Answer 21

remains stable.

Question 22

Federal law specifically prohibits discrimination in the sale or rental of

Answer 22

housing.

Question 23

Mixed-use real estate is property that allows for

Answer 23

two uses—commercial and residential—in the same building.

Question 24

Property management, appraisal, financing, and development are all examples of

Answer 24

specializations within the real estate industry.

Question 25

In many states, the real estate sales associate is

Answer 25

a licensed real estate salesperson.

Question 26

Mortgage loan originators work in which specialization of the real estate market?

Answer 26

Financing

Question 27

A real estate professional who helps clients choose among the various alternatives involved in purchasing, using, or investing in property is

Answer 27

a real estate counselor.