Unit 1- The Real Estate Business

Question 1

Property Management

Answer 1

Direct operations and maintenance; absentee ownership contributes to demand for service

Question 2

Primary Objective of Property Management

Answer 2

Produce highest net income for owner

Question 3

Community Association Management

Answer 3

Separate license required to manage common elements of association of 10 or more units OR annual budget of $100,000 or more

Question 4

Appraisal

Answer 4

Act or process of estimating value

Question 5

Appraisers

Answer 5

Must comply with federal guidelines in Uniform Standards of Professional Appraisal Practice (USPAP). Florida licensed appraisers governed by Chapter 475 Part 2 administered by the Florida Real Estate Appraisal Board (FREAB)

Question 6

Custom Building

Answer 6

Building according to owner’s plans and specifications- known buyer

Question 7

Tract Building

Answer 7

Pre-determined floor plans and elevations; “model homes” used to market houses in new subdivision- unknown buyer

Question 8

Spec building

Answer 8

Construction without a pre-sale- unknown buyer