Unit Review Questions

Question 1

Which of the following professional activities is a real estate broker or agent most likely to be directly involved in?

Answer 1

Transferring real estate ownership.

Question 2

The distinguishing feature of commercial property is that:

Answer 2

It has the potential to generate income from its use by a business.

Question 3

An important reason for a real estate salesperson or broker in a large market to specialize in a geographical area is that:

Answer 3

It is difficult to maintain adequate market knowledge on a large area.

Question 4

A real estate professional who oversees the day-to-day operation of a specific property on behalf of the owner is a(n):

Answer 4

Property manager.

Question 5

Which of the following is a primary real estate brokerage activity?

Answer 5

Locating a landlord for a tenant.

Question 6

The real estate industry is regulated by federal, state and local laws, as well as by:

Answer 6

Its own professional codes of ethics.

Question 7

The agency that administers and enforces license laws in each state is the:

Answer 7

Real estate commission, council, or similar board.

Question 8

In addition to specifying who must obtain a real estate license and requirements for obtaining one, license laws also define:

Answer 8

How licensees must handle escrow deposits, funds, and fees.

Question 9

An investment property is:

Answer 9

Any property that is held by its owners for investment purposes.

Question 10

A residential property is one that

Answer 10

Is used primarily for habitation.