Quiz 1 The Real Estate Business

Question 1

It is unethical for an appraiser to accept compensation for performing an assignment when it is contingent upon

A) the appraiser having a real estate license.
B) the requirement for a certain type of loan.
C) the reporting of a pre-determined result.
D) when the appraiser is asked for more comparables by the underwriter.

Answer 1

C) the reporting of a pre-determined result.

Question 2

The duties of a property manager include all EXCEPT
A) selling the property.
B) advertising the property.
C) maintaining the property in good repair.
D) budgeting expenses for the property.

Answer 2

A) selling the property.

Question 3

Having a membership in The National Association of REALTORS ® (NAR), Florida Association of REALTORS ® (FAR), and the local Board (association) of REALTORS ®
A) is required in order to hold a Florida Real Estate license.
B) is required in order to hold a Florida Appraiser’s license.
C) has nothing to do with obtaining or maintaining a real estate license.
D) is required for anyone wanting to buy or sell real estate.

Answer 3

C) has nothing to do with obtaining or maintaining a real estate license.

Question 4

In Florida, there is a demand for property management services due to the large amount of
A) waterfront properties.
B) theme parks.
C) absentee owners.
D) residents who own condominiums.

Answer 4

C) absentee owners.

Question 5

Which is NOT commonly an area of federal government interference in real property?
A) Federal Fair Housing Act
B) RESPA
C) National Parks
D) Zoning laws

Answer 5

D) Zoning laws

Question 6

A home that is specially built for a buyer, using his/her blueprints, is called
A) a custom home.
B) a tract home.
C) a spec home.
D) an original home.

Answer 6

A) a custom home.

Question 7

Dedication most nearly means
A) concern for others.
B) public health issues.
C) giving private land for public use.
D) donating a hospital to a private charity.

Answer 7

C) giving private land for public use.

Question 8

The act of appraisal can be completed by
A) anyone who hangs out a sign.
B) anyone who calls himself an appraiser.
C) anyone with a real estate license.
D) an appraiser following the USPAP standards.

Answer 8

D) an appraiser following the USPAP standards.

Question 9

Agriculture property in Florida is a property that
A) has many buildings on it.
B) has fewer than 10 acres.
C) has fewer than 5 acres.
D) has more than 10 acres.

Answer 9

D) has more than 10 acres.

Question 10

The practice of a real estate sales associate specializing in a particular geographic area is called
A) farming.
B) prospecting.
C) soliciting.
D) advertising.

Answer 10

A) farming.

Question 11

One example of a Loan Originator would be a(n)
A) family member.
B) a real estate agent.
C) associate lender.
D) seller who finances more than two homes in a two year period.

Answer 11

D) seller who finances more than two homes in a two year period.

Question 12

Which would NOT usually be involved in financing real estate?
A) A mortgage banker
B) A mortgage broker
C) A savings and loan
D) A real estate broker

Answer 12

D) A real estate broker

Question 13

Putting together two or more parcels of land to make a larger parcel is called
A) subdivision.
B) assemblage.
C) financial plan.
D) incentive.

Answer 13

B) assemblage.

Question 14

Florida law requires that you be approved by the state for licensure (through registration and application) \_\_\_\_\_\_\_\_\_ they can take the State-licensing exam, which is WHY students are asked to apply for licensure as early as possible while in the course.
A) before
B) after
C) upon finding a broker
D) when

Answer 14

A) before

Question 15

Which statement is TRUE?
A) The real estate industry makes up about 25% of the nation’s economy.
B) Real estate affects only real estate professionals, buyers, and sellers.
C) Real estate only has one direction: buying and selling.
D) The real estate industry is not regulated.

Answer 15

A) The real estate industry makes up about 25% of the nation’s economy.

Question 16

Which is the most important issue for a broker acting as a property manager to accomplish?
A) To make sure the building is 100% occupied
B) To keep the tenants happy and satisfied
C) To budget and keep the cost down
D) To get maximum income while preserving the value of the investment

Answer 16

D) To get maximum income while preserving the value of the investment

Question 17

Local communities regulate real estate by
A) buying and selling land themselves.
B) creating zoning laws.
C) annexing nearby towns.
D) taxing animals.

Answer 17

B) creating zoning laws.

Question 18

Services that a property manager must perform for the owner are listed in
A) a sales contract.
B) a listing contract.
C) a uniform management code.
D) a property management agreement.

Answer 18

D) a property management agreement.

Question 19

Why does a real estate professional need a license?
A) He has specific information to be able to show a house.
B) He has specific information to lease a house.
C) He has expert information on real estate that an average layperson does not have.
D) He does not need a license; he can sell and list whenever he wants.

Answer 19

C) He has expert information on real estate that an average layperson does not have.