Real Estate Practice Exam Questions

1. Brokerage definition... - Answer-the business practice of bringing together the parties in a practice. 2. What are two examples of special use property? - Answer-schools and cemetary 3. What is an example of functional obsolescence? - Answer-bathroom 4. Principal definition... - Answer-a consumer of real estate services who has entered into an agency relationship with a broker or another licensee employed by a broker. 5. Capitalization definition... - Answer-the process of determining the present value of a property from it's future income. 6. What is the salespersons obligation to a buyer under single agency listing? - Answer-Inform the buyer 8. All are examples of real estate except... - Answer-factories 9. What is homeowners insurance? - Answer-Insurance to protect owners from fires and other etc. 10. Special agent definition... - Answer-the type of agency in which the principal authorizes the agent to represent the agent in "one specific transaction or business activity" 11. Which is not used to determine cost approach to estimate value? -Quantity Survey Method -Unit-in-Place Method -Square Foot Method -Gross Rent Multiplier Method - Answer-Gross Rent Multiplier Method What is steering? - Answer-the unlawful act of keeping a buyer away from certain communities or guiding them to purchase in certain communities. 15. Entitlement to commission when transaction is not consummated. - Answer-Except when listing broker does not disclose information 16. Can a salesperson give legal advice? - Answer-No, not unless they are an attorney. 17. Who determines the commission in a listing contract? - Answer-An agreement between the owner and broker 19. All are typical duties of a property manager with the exception of... - Answer-Investing profits