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Real Estate Exam! > Unit 1: The Real Estate Business > Flashcards

Unit 1: The Real Estate Business Flashcards

1
Q

True/False The product that real estate licensees market is expert information.

A

True

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2
Q

True/False Real estate professionals provide knowledge of market conditions.

A

True

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3
Q

True/False Follow-up refers to returning phone calls to prospective buyers in a timely manner.

A

False. Follow-up is what a sales associate does for buyers and sellers after the sale (closing) to promote customer loyalty.

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4
Q

True/False Real estate professionals who specialize in the sale, purchase, and lease of businesses must hold a commercial license.

A

False. In Florida, an active real estate sales associate or broker license is required to market business opportunities. No license distinction is made regarding the type of real estate.

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5
Q

True/False Rental agents manage the property once a tenant is secured.

A

False. Rental agents typically find a tenant for property and collect a fee. Property managers continue to manage the property once a tenant is secured.

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6
Q

True/False A property manager is responsible for protecting the owner’s investment.

A

True.

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7
Q

True/False The Uniform Standards of Professional Appraisal Practice are standards of practice that must be followed by appraisers but not real estate licensees.

A

False. Florida law requires appraisers, real estate brokers, broker associates, and sales associates to abide by the Uniform Standards of Professional Appraisal Practice when conducting appraisals of real property.

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8
Q

Real estate licensees must abide by USPAP when preparing CMAs and BPOs.

A

False. The USPAP standards do not apply to real estate licensees who, in the ordinary course of business, perform CMAs and BPOs

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9
Q

True/False An individual who offers to negotiate the terms of residential mortgage loan applications for compensation must be licensed as a real estate broker.

A

False. Individuals who negotiate the terms of residential mortgage loan applications for compensation must be licensed as mortgage loan originators.

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10
Q

True/False Sources of real estate financing include commercial banks, savings associations, credit unions, and mortgage companies.

A

True.

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11
Q

True/False A subdivision plat map usually must be submitted to the local government planning board.

A

True. Before work can begin, most local governments require that developers submit a subdivision plat map of a new development for review by the applicable government planning board.

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12
Q

True/False A gift of land by a developer to a local government to be used for streets and sidewalks is called dedication.

A

True.

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13
Q

True/False The three categories of residential construction are spec homes, custom homes, and tract homes.

A

True. Building “on speculation” involves purchasing one or more lots and constructing a home (or homes) without a buyer in advance of construction. A custom builder constructs homes under contract with a buyer, often using building plans provided by architects or buyers. 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 build in the new subdivision.

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14
Q

True/False Purchasing one or more residential lots and constructing homes on the lots without first finding a buyer for the new construction is called building on speculation.

A

True. Building “on speculation” involves purchasing one or more lots and constructing a home (or homes) without a buyer in advance of construction.

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15
Q

True/False The multiple listing service is a database that allows real estate licensees to share information about properties with other real estate licensees.

A

True. The MLS is a database that allows real estate brokers representing sellers under a listing contract to share information about properties with real estate brokers who may represent potential buyers.

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16
Q

True/False A person who is licensed by the Florida Department of Business and Professional Regulation (DBPR) is called a REALTOR®.

A

False. A REALTOR® is a real estate licensee who belongs to the National Association of REALTORS®. Not all real estate licensees are REALTORS®.

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17
Q

specialized service for others in return for compensation in the form of a commission, fee, or other valuable consideration.

A

Real estate brokers provide:

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18
Q

expert knowledge of property transfer, market conditions, and how to market real estate and businesses.

A

Real estate professionals provide:

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19
Q

(1) residential, (2) commercial, (3) industrial, (4) agricultural, and (5) businesses.

A

The five major sales specialties

20
Q

a selected and limited geographic area to which a sales associate devotes special attention and study. Target marketing involves expertise in locating prospects.

A

Farm area

21
Q

Business opportunity brokerage involves:

A

the sale or lease of an existing business. A real estate license is required to sell and lease business opportunities for others.

22
Q

is a professional service conducted by a person or company hired to maintain and manage property on behalf of property owners.

A

Property management

23
Q

property owners who do not reside on the property and who often rely on a professional property manager to manage the investment.

A

Absentee owners

24
Q

Federal and state laws require appraisals that involve a federally related transaction to be prepared by:

A

a state-certified or licensed appraiser.

25
Q

When preparing appraisals, Florida law requires appraisers and real estate licensees to abide by:

A

the Uniform Standards of Professional Appraisal Practice(USPAP). The USPAP is a set of guidelines (standards of practice) to follow when conducting appraisal services. Real estate licensees may not represent themselves as state-certified, registered, or licensed appraisers unless they also hold those licenses.

26
Q

a marketing tool that is prepared for a potential buyer or seller based on recent sales of similar properties, properties currently on the market, and recent expired listings. A CMA may not be referred to or represented as an appraisal.

A

A comparative market analysis

27
Q

a broker’s written opinion of the value of real property. A broker may charge a separate fee for a BPO, provided it is not used in connection with originating a federally related loan and it is not labeled as an appraisal.

A

A broker’s price opinion (BPO)

28
Q

A mortgage loan originator (MLO) must:

A

be licensed to receive compensation for taking a residential mortgage application or negotiating the terms of a residential mortgage loan. A real estate licensee may not accept a referral fee from a lender unless the real estate licensee is also licensed as a mortgage loan originator.

29
Q

the gift of land by an owner to a government body for public use. The developer installs the improvements and the local municipality agrees to maintain the improvements as part of the subdivision plat approval process.

A

Dedication

30
Q

The three categories of residential construction are:

A

(1) speculative (spec) homes, (2) custom homes, and (3) tract homes.

31
Q

a real estate licensee who is a member of the National Association of REALTORS® (NAR).

A

A REALTOR®

32
Q

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) Delayed customer contact
B) Door-to-door sales
C) Final walk-through and property inspection
D) Follow-up

A

D) Follow-up

33
Q

Which statement concerning broker’s price opinions (BPOs) is TRUE?

A) The payment for a BPO must be paid to the broker and not directly to the sales associate who prepared the BPO.
B) All BPOs must conform to Uniform Standards of Professional Appraisal Practice (USPAP).
C) A BPO is also called an appraisal of real property.
D) A broker’s license is required to conduct a BPO.

A

A) 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.

34
Q

Which term may only be used by members affiliated with the NAR?

A) Licensed real estate sales associate
B) REALTOR®
C) Real estate sales associate
D) Real estate broker

A

B) REALTOR®

35
Q

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) Financial counselor
B) Mortgage counselor
C) Mortgage loan originator
D) Business broker

A

C) Mortgage loan originator

36
Q

The five major sales specialties do NOT include

A) businesses.
B) industrial.
C) residential.
D) mixed-use property.

A

D) mixed-use property.

37
Q

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 subdivision plat map.
C) an elevation.
D) a topography map.

A

B) 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.

38
Q

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) Commercial business license
B) Real estate license
C) Business broker license
D) Member of national association of business brokers

A

B) Real estate license

39
Q

An individual who, for a fee, finds tenants for available properties in a community is called

A) a landlord.
B) an absentee owner.
C) a rental agent.
D) a property manager.

A

C) a rental agent.

40
Q

Which term best describes a property owner who is NOT a resident of the property?

A) Property manager
B) Tenant
C) Absentee owner
D) Rental agent

A

C) 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.

41
Q

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) eminent domain.
B) dedication.
C) land acquisition.
D) entrepreneurship.

A

B) dedication. Dedication is the gift of land by an owner, in this case a developer, to a government body for a public use.

42
Q

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) Contract home
B) Custom home
C) Modular home
D) Tract home

A

D) 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.

43
Q

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 comparative market analysis.
B) an appraisal report.
C) a federally related transaction.
D) an appraisal.

A

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.

44
Q

A part of the real estate business that is concerned with bringing together buyers and sellers and owners and renters and completing a real estate transaction.

A

Real Estate Brokerage

45
Q

Real estate licensees who engage in the sale, purchase, or lease of businesses.

A

Business Broker

46
Q

The real estate activity dealing in the sale, purchase, or lease of businesses.

A

Business Opportunity

Real Estate Exam! (20 decks)

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