Chapter 1: The Real Estate Business
What is an advisory service provider?
A broker who renders real estate services for a fee
Which of the following activities would be for a real estate professional to keep him or herself updated in matters relating to the real estate industry?
Become a member in a trade organization.
Which of the following professionals involved in the real estate business are most concerned about procuring buyers and sellers for clients?
Brokers and agents
All of the following are specialties of professionals in real estate, except?
Building; The six primary functional areas are populated by professionals with the following specialties: creating, managing and maintaining, destroying, holding, regulating, and transferring.
State license laws are administered in each state by a real estate _______.
Commission
All of the following are different types of property and their respective agents, except?
Construction agents; Different properties have different features and potential buyers, brokers commonly choose to specialize by property type. These include residential agents, commercial agents, industrial agents, and land agents.
Eileen has a new client, Ms. Wendes. Ms. Wendes would like a comparative price analysis. Eileen tells her that she charges a set fee for such a service. Considering what Eileen is offering, what is likely her job title?
Eileen is likely a broker because she is offering a service for a pre-set fee.
Your client is complaining about the fact that she has to take time out of their day to sign disclosures. She asks whether she can verbally give you the "OK" to represent her as an agent and help her find a property. You, obviously, respond that a verbal approval is not sufficient. Why is this the case?
Federal and state statutes specifically require certain disclosures that you must provide your clients in order to perform your job as a real estate agent.
When are demolition experts and excavation and removal experts needed?
For demolition
Jeremy oversees some of Tyler and Johns properties in order to help them meet their investment goals. What kind of manager is Jeremy?
If Jeremy is overseeing groups of property with the goal of achieving the owner's investment objectives, Jeremy is performing the role of an asset manager.
_______ property refers to any property that is held by its owners for investment purposes.
Investment
With regards to how one should deal with clients and customers, where can a real estate professional turn to for guidelines?
License Laws
Who defines procedures for handling escrow deposits and fees?
License laws specify procedures regarding the handling of escrow deposits and fees.
Which of the following is an example of real estate trade organizations? a.) Mortgage Bankers Association of America b.) State Senate c.) Real Estate Commission d.) U.S. Congress
Mortgage Bankers Association of America
Which of the following is an example of real estate trade organizations? a.) National Association of Industrial and Office Parks b.) U.S. Congress c.) MLS d.) Real Estate Commission
National Association of Industrial and Office Parks
Which of the following is an example of real estate trade organizations?
Real Estate Educators Association
What is the main difference between a real estate investor and property owners?
Real estate investors focus on identifying and exploiting real estate investment opportunities for profit.
Property that is owned and used for habitation is called:
Residential property
Your coworker states that he needs some training in order to become more comfortable performing some of his daily activities at work. What can you recommend your coworker do?
Seek membership in a trade organization; Trade organization membership can be very good for business, but also for general training and education. Various trade organizations offer training for professional development.
Which of the following ways of specializing is common in the real estate brokerage business?
Specializing by geography is the most frequent manner in which real estate brokerage businesses specialize.
Stefani has had a passion for helping others since she was a little girl. She has recently become involved in ownership transactions, helping people with their dreams of owning their own home. What career has Stefani likely chosen?
Stefani is a broker.
Your coworker tells you that she wants to do more for the advancement of women in the real estate industry. Out of the following trade organizations, which might be the best fit for your coworker?
The Women's Council of Realtors focuses on education and training as well as the professional advancement of women in the industry.
Brokers must have knowledge on various different aspects of real estate. Which of the following is not something a broker needs knowledge on?
Though brokers should have overall knowledge on local market conditions, it is not required for them to have knowledge on market conditions outside of their state in order to properly conduct their daily activities.
In the eyes of clients, which of the following may enhance one's business image as a real estate professional?
Trade organization membership can generally enhance a real estate professional's business image in the eyes of clients and the public at large.
What does "Transfer" mean with regards to a real estate related activity.
Transfers means the rights and interests in real estate than can be bought, sold, assigned, leased, exchanged, inherited, or otherwise transferred from one owner to another.
Who is responsible and allowed to pass regulations that further refine state statutes?
Who is responsible and allowed to pass regulations that further refine state statutes?
The two principal types of real estate managers are property managers and ______ managers.
asset
The role of the _______ is to achieve the investment objectives of the owners as opposed to managing day-to-day operations.
asset manager; An asset manager is meant to achieve investment objectives of the property owners.
Which of the following professionals is in charge of overseeing groups of properties or portfolios?
asset managers
Real estate professionals are individuals and ____________ whose sole enterprise is performing real estate-related service or function.
business organizations
People in the real estate business who primarily focus on creating new properties are
developers
The distinguishing feature of commercial property is that
it has the potential to generate income from its use by a business.
The key parties involved in creating real properties from raw land include:
landowner, developer, and mortgage lender
Critical aspects of real estate brokerage, such as procedures for handling escrow deposits and fees, are defined by:
license laws
Newly licensed practitioners generally start their careers in residential brokerage, which includes all of the following activities, except?
locating an assistant for a landlord; Primary real estate brokerage activities involve the following tasks: locating a buyer for a seller, locating a seller for a buyer, locating a tenant for a landlord, or locating a landlord for a tenant.
All of the following are principal areas of regulation by government in real estate, except?
maintenance; The principal areas of regulation are usage, taxation, and housing administration.
As a broker, you might perform all the following for a pre-set fee, except;
open houses
The principal types of transaction are sales, leases and subleases, exchanges, and:
options
All of the following are included as the most relevant laws for agents and brokers, except?
privacy; Agency, contracts, disclosure, environmental impact, and fair housing are among the most relevant laws for both agents and brokers.
Which of the following skills are professional in the brokerage business NOT required to have?
property management; skills a real estate broker should have include: financial qualifications, market analysis, marketing practices, ethical practices, liability management, data management, selling, time management, communication, writing, basic computer operation.
Which of the following professionals is in charge of overseeing specific properties on behalf of the owners?
property managers
Property management and real estate asset management are both real estate management professions. The primary distinction between the two is that
property managers handle day-to-day operations while asset managers manage portfolios of properties.
Brokers and Agents specialize along the following lines, except?
property sales price
All of the following are considered maintenance personnel, except?
real estate agents; Maintenance personnel help in the maintenance of the condition of a property. They include engineers, systems technicians, janitorial staff, and others given the task of maintain the condition of a property.
All of the following include property related functions performed by real estate professionals, except?
refinances; These include creation and improvement, management and maintenance, demolition, investment ownership, regulation, and transfer.
If non-occupants own an apartment for investment purposes, these properties can be referred to as investment properties or:
residential income properties
Special purpose properties include all of the following, except?
retail real estate
The level of government which is most active in regulating real estate licensees is the
state government.
Who is in charge of enforcing license laws?
state real estate commission
Under which of the following real estate professional's property-related functions would the transfer of rights and interests be listed?
transfer
