Unit 1 & 2

Question 1

The business of bringing people together in a real estate transaction.

Answer 1

BROKERAGE

Question 2

Acts as a point of contact between two or more people in negotiating the sale, purchase, or rental of property.

Answer 2

REAL ESTATE “LICENSEE”

Question 3

All licensees are employed by a:

Answer 3

SPONSORING BROKER

Question 4

The process of rendering an opinion of a property’s market value based on established methods and the appraiser’s professional judgment.

Answer 4

Appraisal

Question 5

Providing clients with competent independent advice based on sound professional judgement.

Answer 5

Counseling

Question 6

Conducts a thorough visual survey of a property’s structure, systems, and site conditions and prepare an analytical report that is valuable to both purchasers and homeowners.

Answer 6

Home Inspector

Question 7

Members of the National Association of Real Estate Brokers are called:

Answer 7

REALISTS

Question 8

Members of the National Association of Realtors are called:

Answer 8

REALTORS

Question 9

Types (Categories) of Real Property are:

Answer 9

Agriculture
Residential
Commercial
Industrial
Special Purpose

Question 10

A place where goods can be bought and sold

Answer 10

Market

Question 11

Factors that affect the demand of real estate

Answer 11

Population
Demographics
Employment & Wage Levels

Question 12

Factors that affect supply of real estate

Answer 12

Labor Force
Construction Costs
Government Controls
Government Financial Policies

Question 13

When supply increases and demand remains stable:

Answer 13

Prices go down

Question 14

When demand increases and supply remains stable:

Answer 14

Prices go up

Question 15

High demand results in:

Answer 15

Higher prices

Question 16

Low demand results in:

Answer 16

Low prices

Question 17

A professional opinion of a property’s market value, based on established methods and using trained, professional judgment, is performed by a….

Answer 17

Real Estate Appraisal

Question 18

In general, when the supply of a certain commodity increases…..

Answer 18

Prices drop

Question 19

Which of these factors tends to affect supply in the real estate market…

Answer 19

Population
Demographics
Employment and wage levels
GOVERNMENT CONTROLS AND FINANCIAL POLICIES

Question 20

What is the most widely recognized real estate activity?

Answer 20

Brokerage

Question 21

How many units is considered residential?

Answer 21

1-4 units

Question 22

How many units is considered commercial real estate?

Answer 22

5 + units

Question 23

How long do you have to get a sponsoring broker after you’ve passed the state exam before they will issue you your license?

Answer 23

You have ONE year to get a sponsoring broker. If not, you have to re-take the state exam.

Question 24

Who is responsible for maintaining a client’s property and maximizing the return on the client’s investment, a real estate licensee is serving as…..

Answer 24

PROPERTY MANAGER

Question 25

Local government can influence the supply of real estate by

Answer 25

Land-use controls zoning ordinances building codes ALL OF THESE

Question 26

Real Estate is a...

Answer 26

Business with many specialties

Question 27

How many types of R.E. Licenses are in Illinois?

Answer 27

3 (Broker; Managing Broker; Residential Leasing Agent)

Question 28

Brokerage is in the business of:

Answer 28

Bringing people together

Question 29

Immobility refers to:

Answer 29

The fact that property cannot be relocated to satisfy demand where supply is low.

Question 30

Land is defined as:

Answer 30

The earth's surface extending downward to the center of the earth and upward to infinity.

Question 31

Real Estate is defined as:

Answer 31

Land at, above and below the earth's surface, plus all things that are permanently attached to it.

Question 32

Real Property is:

Answer 32

The interests, benefits, and rights that are automatically included in the ownership of land and real estate.

Question 33

Appurtenance (definition)

Answer 33

Anything tangible or intangible associated with the property, although not necessarily a direct part of it. (parking spaces in a multi-unit building; septic tanks; easements; water rights; and other improvements) An appurtenance is CONNECTED to the property and ownership of the appurtenance normally TRANSFERS to the new owner when the property is sold.

Question 34

Economic characteristics of real estate:

Answer 34

Scarcity Improvements Permanence of investment Location

Question 35

Physical characteristics of real estate:

Answer 35

Indestructibility Immobility Uniqueness

Question 36

Real Property Bundle of Rights Ownership

Answer 36

Right to exclude Right to disposition Right of possession Right of enjoyment Right to control the property

Question 37

Any word ending in "OR" is:

Answer 37

The Giver (i.e. Mortgagor; grantor)

Question 38

Any word ending in "EE" is:

Answer 38

The recipient (i.e. Leesee; grantee)

Question 39

When is a deed valid?

Answer 39

When it is delivered and accepted.

Question 40

Real Property Examples:

Answer 40

Microwave that is bolted in. Plants; Trees; Grasses that do not require annual cultivation.

Question 41

What does MAA stand for:

Answer 41

Method of Attachment Adaptation to Real Estate Agreement

Question 42

7 types of Real Estate Laws are:

Answer 42

1. Contract 2. General Property 3. Agency 4. Real Estate License 5. Federal, State, Local 6. Zoning 7. Environmental

Question 43

What is the most important economic characteristic of real estate?

Answer 43

Location!!!