Unit 1 chapter 1 review

Question 1

List five industries that are dependent on real estate activity.

Answer 1

Loan originators
Appraisers
Plumbers
Auctioneers
Landscape supplier

Question 2

List three ways the state government plays a role in real estate.

Answer 2

Licensing for real estate professionals
Recording of deeds, transfers of property
Estate taxes

Question 3

List two examples of ways a broker could commit fraud in a real estate transaction.

Answer 3

Exaggerating the benefits of a property’s value

Not providing information on material facts

Question 4

What is the main requirement within the Statute of Frauds?

Answer 4

All contracts must be in writing to be enforceable.

Question 5

What rule should brokers follow to ensure they are acting ethically?

Answer 5

Do unto others as you would have them do unto you.

Question 6

List four reasons an appraisal is done.

Answer 6

To obtain a property loan

To obtain the insurance value

To obtain a divorce settlement

To determine capital gain

Question 7

List five sources of financing for real estate buyers.

Answer 7

Banks, savings and loans, credit unions, insurance companies, sellers of property, mortgage bankers, and mortgage brokers

Question 8

How is a mortgage obtained?

Answer 8

by pledging property as collateral and promising to repay the loan with payments and times agreed upon with the mortgagee

Question 9

What are land appurtenances?

Answer 9

rights, privileges, and improvements that belong to and pass with the transfer of the property