REAL ESTATE PRINCIPLES AND
PRACTICES EXAM 1 QUESTIONS &
VERIFIED COMPLETE ANSWERS
Broker - Correct Answer ✔✔ intermediary b/w a buyer and a seller for sale, purchase or
rental of a property
-licensed to do so
-hires agents
Dual Agency - Correct Answer ✔✔ broker represents both buyer and seller in the same
deal
-both sides need full knowledge
Agent - Correct Answer ✔✔ sales person/representative
-can do nothing by himself, not even take the test without a broker sponsor
Appraisal - Correct Answer ✔✔ attempting to assign value
-must be licensed in Ohio
Home Inspection - Correct Answer ✔✔ conditions of homes (plumbing, electric,
structural, foundation, roof, and heating and cooling system)
-usually does not include environmental testing
Property Management - Correct Answer ✔✔ managing a rental property
-good way to learn investment reality
-finding new tenants, collecting rent, altering/constructing new space for tenants,
ordering repairs
-specific requirements set forth in the management agreement
-maximize owner's return on investment
Real Estate Development - Correct Answer ✔✔ adding value to land
-must like diversity, strategy/visualization, marketing, finance, legal, get in get out and
move on
-on-site: new homes, pools
-off-site: water lines and storm sewers made on public land
Finance - Correct Answer ✔✔ mortgage banking/lending/brokerage
Law - Correct Answer ✔✔ specializing in real estate
Education - Correct Answer ✔✔ licensing programs/ technical aspects of tax and
exchange law seminars
, Counseling - Correct Answer ✔✔ inspector, loan hand holding, how to negotiate
-wave of the future! to balance the playing field
Areas of Real Estate Specialization (11) - Correct Answer ✔✔ 1. Broker
2. Agent
3. Appraisal
4. Home Inspection
5. Property Management
6. Real Estate Development
7. Finance
8. Law
9. Education
10. Contruction
11. Counseling
Types of Real Property (5) - Correct Answer ✔✔ 1. Residential
2. Commercial
3. Industrial
4. Agricultural
5. Special Purpose
Residential
- type of real property - Correct Answer ✔✔ all real estate used for single family or
multifamily housing, whether in urban, suburban, or rural areas
-manufactured housing, apartments, condos, co-ops, time shares, multi and single
family
Commercial
-type of real property - Correct Answer ✔✔ business real estate, office space, shopping
centers, stores, theaters, hotels, parking facilities
-leasing/renting space for business
Industrial
-type of real property - Correct Answer ✔✔ warehouses, factories, land in industrial
districts, and power plants
-wholesale, factories
Agricultural
-type of real property - Correct Answer ✔✔ farms, timberland, ranches, orchards
-vineyards
Special Purpose
-type of real property - Correct Answer ✔✔ Government land: parks, fire department,
churches, schools, cemeteries, military bases
-Educational land is public land and doesn't pay real estate taxes
PRACTICES EXAM 1 QUESTIONS &
VERIFIED COMPLETE ANSWERS
Broker - Correct Answer ✔✔ intermediary b/w a buyer and a seller for sale, purchase or
rental of a property
-licensed to do so
-hires agents
Dual Agency - Correct Answer ✔✔ broker represents both buyer and seller in the same
deal
-both sides need full knowledge
Agent - Correct Answer ✔✔ sales person/representative
-can do nothing by himself, not even take the test without a broker sponsor
Appraisal - Correct Answer ✔✔ attempting to assign value
-must be licensed in Ohio
Home Inspection - Correct Answer ✔✔ conditions of homes (plumbing, electric,
structural, foundation, roof, and heating and cooling system)
-usually does not include environmental testing
Property Management - Correct Answer ✔✔ managing a rental property
-good way to learn investment reality
-finding new tenants, collecting rent, altering/constructing new space for tenants,
ordering repairs
-specific requirements set forth in the management agreement
-maximize owner's return on investment
Real Estate Development - Correct Answer ✔✔ adding value to land
-must like diversity, strategy/visualization, marketing, finance, legal, get in get out and
move on
-on-site: new homes, pools
-off-site: water lines and storm sewers made on public land
Finance - Correct Answer ✔✔ mortgage banking/lending/brokerage
Law - Correct Answer ✔✔ specializing in real estate
Education - Correct Answer ✔✔ licensing programs/ technical aspects of tax and
exchange law seminars
, Counseling - Correct Answer ✔✔ inspector, loan hand holding, how to negotiate
-wave of the future! to balance the playing field
Areas of Real Estate Specialization (11) - Correct Answer ✔✔ 1. Broker
2. Agent
3. Appraisal
4. Home Inspection
5. Property Management
6. Real Estate Development
7. Finance
8. Law
9. Education
10. Contruction
11. Counseling
Types of Real Property (5) - Correct Answer ✔✔ 1. Residential
2. Commercial
3. Industrial
4. Agricultural
5. Special Purpose
Residential
- type of real property - Correct Answer ✔✔ all real estate used for single family or
multifamily housing, whether in urban, suburban, or rural areas
-manufactured housing, apartments, condos, co-ops, time shares, multi and single
family
Commercial
-type of real property - Correct Answer ✔✔ business real estate, office space, shopping
centers, stores, theaters, hotels, parking facilities
-leasing/renting space for business
Industrial
-type of real property - Correct Answer ✔✔ warehouses, factories, land in industrial
districts, and power plants
-wholesale, factories
Agricultural
-type of real property - Correct Answer ✔✔ farms, timberland, ranches, orchards
-vineyards
Special Purpose
-type of real property - Correct Answer ✔✔ Government land: parks, fire department,
churches, schools, cemeteries, military bases
-Educational land is public land and doesn't pay real estate taxes
