Chapter 1 - Gold Coast Real Estate Homework Questions and Answers

Chapter 1 - Gold Coast Real Estate Homework Questions and Answers Which of the following statements is true regarding a mortgage loan originator (MLO)? (a) A mortgage loan originator is the same as a mortgage broker. (b) A mortgage loan originator must have a separate license. (c) A mortgage loan originator makes loans. (d) A mortgage loan originator must have a real estate license. (b) A mortgage loan originator must have a separate license. A real estate appraiser's fee for professional service is based on which of the following? (a) A percentage of the property's gross income. (b) A percentage of the fair market value of the property. (c) The time and difficulty of the appraisal. (d) A percentage of the property's sales price. (c) The time and difficulty of the appraisal. Which of the following best describes the real estate brokerage business? (a) Service business (b) Simple business (c) Business with few opportunities available (d) Construction business (a) Service business When a developer completes construction of a new subdivision, all streets, electric, water, and sewer installation are finished and deeded to the city or county. What is this process called? (a) A quit claim deed (b) An easement (c) Dedication (d) Annexation (c) Dedication All of the following are responsibilities of a property manager, EXCEPT: (a) Renting property for an absentee owner (b) Collecting rent (c) Overseeing maintenance (d) Preparing leases (d) Preparing leases What does the term "farming" refer to in real estate? (a) Specializing in one geographic area (b) Working in a cooperative manner (c) Specializing in agricultural properties (d) Specializing in the sales of orange groves or cattle farms (a) Specializing in one geographic area Which insurance policies can a real estate licensee offer to the public without additional state licensing? (a) Flood insurance (b) Fire insurance (c) Renter's insurance (d) None of the above (d) None of the above What is the purpose of the National Association of REALTORS®? (a) Preserve the right of individuals to own real property through an exchange of information. (b) Organize antigovernment activities. (c) Promote unethical practice of real estate professionals. (d) Award unearned educational designations. (a) Preserve the right of individuals to own real property through an exchange of information What does the designation of REALTOR® signify? (a) Anyone in possession of real estate license is a REALTOR®. (b) The designation identifies the real estate professional as a member of the the NAR. (c) The designation is evidence that the licensee has an extensive background in the reat estate profession. (d) The designation is evidence that the licensee has completed extensive real estate studies. (b) The designation identifies the real estate professional as a member of the the NAR. A developer contracts to build a home according to the buyer's specifications. This is an example of which type of building? (a) Tract (b) Custom (c) Speculative (d) Subdivision (b) Custom The federal, state, and local governments all play a role in the regulation of real estate. In which of the following areas would the local government have the most impact? (a) Property taxes, building moratoriums, and zoning (b) Primary and secondary mortgage markets (c) Documentary stamp taxes, intangible taxes, and note taxes (d) Civil rights enforcement and monetary policy (a) Property taxes, building moratoriums, and zoning Which of the following best describes licensees who are involved in business brokerage? (a) They must be able to analyze financial statements and understand balance sheets. (b) They are not required to know much about the business they are selling. (c) They must have a separate license. (d) They never become involved in the tax aspects of the business. (a) They must be able to analyze financial statements and understand balance sheets.