Chapter 1: The Real Estate Business (FITB) Flashcards Preview

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Flashcards in Chapter 1: The Real Estate Business (FITB) Deck (30):
1

A contractor who builds on his or her own lot in the hope of finding a purchaser upon completing is building on ____.

speculation

2

A broker who is working for an employer is said to be an ____.

agent

3

When working with a member of the public, the party the broker hopes to be successful with in the performance of his or her duties is referred to as a ____ or ____.

customer or principal

4

Most real estate licensees are involved in ___ brokerage.

residential

5

Property management has grown as a service of real estate primarily because of an increase in ____ ____

absentee ownership

6

The portion of the Federal Financial Institutions Reform, Recovery and Enforcement Act that requires the use of state-licensed or state-certified appraisers is ____.

Title XI

7

An estimate of the value of property developed by a real estate licensee for use in listing or selling property is known as ____ ____ ____.

comparative market analysis (CMA)

8

Mortgage brokers in Florida are licensed by the ____ ____ ____ ____.

Department of Financial Services

9

The category of construction that applies when a property owner employes a contractor to build on his or her lot is called ____ ____.

custom building

10

After completion of construction of a subdivision, the streets, sidewalks and common areas are frequently conveyed to the city or county in a process called ____.

dedication

11

An appraisal is an ____ of value.

estimate

12

Valuing a business requires an analysis of ____ ____ and ____ ____.

balance sheets and financial statements

13

The three areas of expertise real estate licensees bring to the transaction relate to ____, ____ and ____ ____.

valuation, marketing and property transfer

14

The composite value of the real and personal property, plus the intangible assets of a business, is called ____ ____ ____.

going concern value

15

Part ____ of FS 475 coveres regulation and licensing of real estate practitioners, while Part ____ covers the registration, licensing and certification of appraisers in Florida.

Part 1, Part 2

16

A mortgage broker

a. is the same as a mortgage banker.
b. must have a separate license.
c. originates loans.
d. must have a real estate license.

b. must have a separate license.

17

A real estate appraiser's fee for professional service is based on

a. a percentage of the property's gross income.
b. a percentage of the fair market value of the property.
c. the time and difficulty of the appraisal.
d. a percentage of the property's sales price.

c. the time and difficulty of the appraisal.

18

The real estate brokerage business can be best described as a

a. service business.
b. simple business.
c. business with few opportunities available.
d. construction business.

a. service business.

19

The principal in an agency relation is the

a. customer.
b. seller.
c. employer.
d. buyer.

c. employer.

20

The responsibilities of a property manager does NOT include

a. renting property for an absentee owner.
b. collecting rent.
c. overseeing maintenance.
d. preparing leases.

d. preparing leases.

21

Concentrating on one neighborhood or style of property is

a. a waste of time
b. a practice called farming
c. required by most brokers
d. illegal

b. a practice called farming

22

Which insurance policies can a real estate licensee offer to the public without additional state licensing?

a. flood insurance
b. fire insurance
c. renter's insurance
d. none

d. none

23

The purpose of the National Association of Realtors is to

a. preserve the right of individuals to own real property through an exchange of information
b. organize antigovernment activities
c. promote unethical practice of real estate professionals
d. award unearned educational designations

a. preserve the right of individuals to own real property through an exchange of information

24

What does the designation REALTOR signify?

a. Anyone in possession of a real estate license is a REALTOR.
b. The designation identifies the real estate professional as a member of NAR.
c. The designation is evidence that the licensee has an extensive background in the real estate profession.
d. The designation is evidence that the licensee has completed extensive real estate studies.

b. The designation identifies the real estate professional as a member of NAR.

25

A developer contacts to build a home on a buyer's lot to the buyer's specifications. This is an example of which type of building?

a. tract
b. custom
c. speculative
d. subdivision

b. custom

26

In their relationships with customers, brokers

a. work for them.
b. work with them.
c. represent them.
d. are always their agent.

b. work with them.

27

Licensees involved in business brokerage

a. must be able to analyze financial statements and understand balance sheets.
b. are not required to know much about the business they are selling.
c. must have a separate license.
d. never become involved in the tax aspects of the business.

a. must be able to analyze financial statements and understand balance sheets.

28

Real estate brokers are NOT required to be knowledgeable regarding

a. marketing
b. valuation
c. property transfer
d. accounting

d. accounting

29

The service provided by real estate brokers that is considered to require the most experience and knowledge is

a. property management
b. counseling
c. appraising
d. agricultural sales

b. counseling

30

Appraisers that are registered, licensed or certified under F.S. 475, Part II, must be utilized in

a. all appraisals
b. the appraisal of residential property
c. the appraisal of nonresidential property
d. federally related transactions

d. federally related transactions

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