Unit 1: The Real Estate Business Flashcards
The five major sales specialties do NOT include:
A) residential.
B) businesses.
C) mixed-use property.
D) industrial.
The answer is mixed-use property. The five major sales specialties include residential, commercial, industrial, agricultural, and businesses
What type of license or other credential is required for an individual to engage in the sale, purchase, or lease of businesses for others?
A) Real estate license
B) Member of national association of business brokers
C) Business broker license
D) Commercial business license
The answer is real estate license. Individuals and business entities engaged in the sale, purchase, or lease of businesses must qualify and be licensed as active real estate licensees.
A couple tours several model homes in a new subdivision. The couple decides to purchase one of the available lots and have the builder construct one of the model floor plans on the lot. Which type of construction is this?
A) Custom home
B) Tract home
C) Modular home
D) Contract home
The answer is tract home. Tract homes are a type of speculative building. A new subdivision will typically feature several model homes. Buyers select a floor plan from the models and a lot on which to have a home constructed in the new subdivision.
The sales associate who worked with the buyers in the transaction sets up an appointment with the buyers to visit them six weeks after the sale. The sales associate routinely makes a visit after the title closing to thank the buyers for choosing her real estate company and to extend an offer to help with the buyers’ future real estate needs. What type of service is the sales associate providing?
A) Final walk-through and property inspection
B) Delayed customer contact
C) Follow-up
D) Door-to-door sales
The answer is follow-up. Follow-up is what a sales associate does for buyers and sellers after the sale and can result in future referrals and word-of-mouth advertising.
A marketing tool used by real estate licensees in the process of soliciting for listings that is intended to help sellers determine an asking price is called
A) a federally related transaction.
B) an appraisal report.
C) a comparative market analysis.
D) an appraisal.
The answer is a comparative market analysis. Real estate licensees may help potential sellers determine an asking price by preparing a comparative market analysis (CMA). A CMA is a marketing tool and may not be called or represented as an appraisal.
Which statement concerning broker’s price opinions (BPOs) is TRUE?
A) A BPO is also called an appraisal of real property.
B) The payment for a BPO must be paid to the broker and not directly to the sales associate who prepared the BPO.
C) All BPOs must conform to Uniform Standards of Professional Appraisal Practice (USPAP).
D) A broker’s license is required to conduct a BPO.
The answer is the payment for a BPO must be paid to the broker and not directly to the sales associate who prepared the BPO. If a sales associate or broker associate performs a BPO, the compensation must be paid to the broker and not directly to the associate who prepared the BPO.
Which term best describes a property owner who is NOT a resident of the property?
A) Tenant
B) Property manager
C) Rental agent
D) Absentee owner
The answer is absentee owner. An absentee owner is a property owner who does not reside on the property and who often relies on a professional property manager to manage the investment.
Which term may only be used by members affiliated with the NAR?
A) REALTOR®
B) Real estate broker
C) Real estate sales associate
D) Licensed real estate sales associate
The answer is REALTOR®. A REALTOR® is a real estate licensee who belongs to the National Association of REALTORS®.
A developer transfers privately owned streets in a subdivision to the city with the agreement that the city will maintain the streets in the future. This process is called
A) entrepreneurship.
B) dedication.
C) land acquisition.
D) eminent domain.
The answer is dedication. Dedication is the gift of land by an owner, in this case a developer, to a government body for a public use.
An individual who, for a fee, finds tenants for available properties in a community is called
A) a rental agent.
B) an absentee owner.
C) a landlord.
D) a property manager.
The answer is rental agent. A rental agent typically finds tenants for properties and collects a fee.
A map that indicates the size and location of individual lots, streets, and public utilities within a new development is called
A) an architectural drawing.
B) a topography map.
C) a subdivision plat map.
D) an elevation.
The answer is a subdivision plat map. A subdivision plat map indicates the size and location of individual lots, streets, and public utilities, including water and sewer lines.
An individual who takes residential mortgage loan applications or offers to negotiate the terms of residential mortgage loan applications for compensation must hold which license?
A) Mortgage loan originator
B) Business broker
C) Mortgage counselor
D) Financial counselor
The answer is mortgage loan originator. Anyone who takes residential mortgage loan applications or offers to negotiate the terms of residential mortgage loan applications for compensation must be licensed as a mortgage loan originator (MLO).
