COLIBRI UNIT 1 QUESTIONS &
ANSWERS 100% CORRECT!!
List four industries that are indirectly linked to real estate activities. -
ANSWERBuilders, building suppliers, carpet manufacturers, appliance sales
How is a property manager defined? - ANSWERA property manager is defined as
one who preserves the value of an investment (by an owner) while generating
income as an agent for the owner.
List five organizations for real estate professionals. - ANSWERNational Association
of REALTORS®
Indiana Association of REALTORS®
Indiana Commercial Board of REALTORS®
Women's Council of REALTORS®
Real Estate Buyers Council
What is the purpose for licensing real estate professionals? - ANSWERTo protect
the public
List two examples of ways a broker could commit fraud in a real estate transaction. -
ANSWERExaggerating the benefits of a property's value
Not providing information on material facts
List five industries that are dependent on real estate activity. - ANSWERLoan
originatorsAppraisersPlumbersAuctioneersLandscape suppliers
List three ways the state government plays a role in real estate. - ANSWERLicensing
for real estate professionalsRecording of deeds, transfers of propertyEstate taxes
Define real estate brokerage and list three organizations that cannot be registered as
a real estate brokerage. - ANSWERA business which brings interested parties
together to sell, lease, and rent or exchange real property.
A joint venture temporary relationship
A business trust investment group for its own purposes
A homeowners association
List five activities for which a real estate broker would receive or expect to receive
compensation. - ANSWERSelling real estate
Negotiating the sale of real estate
Dealing in options on real estate
Supervising the collection of rent for the use of real estate
Procuring of leads intended to result in the sale of real estate
What is real estate farming? - ANSWERSpecializing in one particular geographic
area or property type.
, What is the main requirement within the Statute of Frauds - ANSWERAll contracts
must be in writing to be enforceable.
What rule should brokers follow to ensure they are acting ethically? - ANSWERDo
unto others as you would have them do unto you.
List four reasons an appraisal is done. - ANSWERTo obtain a property loan
To obtain the insurance value
To obtain a divorce settlement
To determine capital gain
List five sources of financing for real estate buyers. - ANSWERBanks, savings and
loans, credit unions, insurance companies, sellers of property, mortgage bankers,
and mortgage brokers
How is a mortgage obtained? - ANSWERby pledging property as collateral and
promising to repay the loan with payments and times agreed upon with the
mortgagee
What are land appurtenances? - ANSWERrights, privileges, and improvements that
belong to and pass with the transfer of the property
What is used to identify a property? - ANSWERLegal description
What is a tract home? - ANSWERA home that is built to a certain set of guidelines
used for a particular subdivision
What five economic characteristics affect the value of land in the marketplace? -
ANSWERDemand Utility or usefulness Scarcity Transferability Situs
What are the three physical characteristics of land? - ANSWERImmobile or
permanentIndestructible Non-homogeneous or unique
List at least 6 types of real estate real property and the uses for each. -
ANSWERResidential - human living
Commercial - generating income
Investment - held by owners for investment purposes, usually not owner occupied
Industrial - warehouses, factories, etc.
Agricultural - growing crops and raising livestock
Special purpose - doesn't fall into other categories: churches, hospitals, schools,
etc.; could be parks, shorelines, etc.
Unimproved or undeveloped land - no buildings or residents
If residential properties are defined as providing dwelling places for individuals or
families, are hotels and motels considered residential properties? Why or why not? -
ANSWERNo, hotels and motels are not residential properties because they are
considered to be only temporary housing.
ANSWERS 100% CORRECT!!
List four industries that are indirectly linked to real estate activities. -
ANSWERBuilders, building suppliers, carpet manufacturers, appliance sales
How is a property manager defined? - ANSWERA property manager is defined as
one who preserves the value of an investment (by an owner) while generating
income as an agent for the owner.
List five organizations for real estate professionals. - ANSWERNational Association
of REALTORS®
Indiana Association of REALTORS®
Indiana Commercial Board of REALTORS®
Women's Council of REALTORS®
Real Estate Buyers Council
What is the purpose for licensing real estate professionals? - ANSWERTo protect
the public
List two examples of ways a broker could commit fraud in a real estate transaction. -
ANSWERExaggerating the benefits of a property's value
Not providing information on material facts
List five industries that are dependent on real estate activity. - ANSWERLoan
originatorsAppraisersPlumbersAuctioneersLandscape suppliers
List three ways the state government plays a role in real estate. - ANSWERLicensing
for real estate professionalsRecording of deeds, transfers of propertyEstate taxes
Define real estate brokerage and list three organizations that cannot be registered as
a real estate brokerage. - ANSWERA business which brings interested parties
together to sell, lease, and rent or exchange real property.
A joint venture temporary relationship
A business trust investment group for its own purposes
A homeowners association
List five activities for which a real estate broker would receive or expect to receive
compensation. - ANSWERSelling real estate
Negotiating the sale of real estate
Dealing in options on real estate
Supervising the collection of rent for the use of real estate
Procuring of leads intended to result in the sale of real estate
What is real estate farming? - ANSWERSpecializing in one particular geographic
area or property type.
, What is the main requirement within the Statute of Frauds - ANSWERAll contracts
must be in writing to be enforceable.
What rule should brokers follow to ensure they are acting ethically? - ANSWERDo
unto others as you would have them do unto you.
List four reasons an appraisal is done. - ANSWERTo obtain a property loan
To obtain the insurance value
To obtain a divorce settlement
To determine capital gain
List five sources of financing for real estate buyers. - ANSWERBanks, savings and
loans, credit unions, insurance companies, sellers of property, mortgage bankers,
and mortgage brokers
How is a mortgage obtained? - ANSWERby pledging property as collateral and
promising to repay the loan with payments and times agreed upon with the
mortgagee
What are land appurtenances? - ANSWERrights, privileges, and improvements that
belong to and pass with the transfer of the property
What is used to identify a property? - ANSWERLegal description
What is a tract home? - ANSWERA home that is built to a certain set of guidelines
used for a particular subdivision
What five economic characteristics affect the value of land in the marketplace? -
ANSWERDemand Utility or usefulness Scarcity Transferability Situs
What are the three physical characteristics of land? - ANSWERImmobile or
permanentIndestructible Non-homogeneous or unique
List at least 6 types of real estate real property and the uses for each. -
ANSWERResidential - human living
Commercial - generating income
Investment - held by owners for investment purposes, usually not owner occupied
Industrial - warehouses, factories, etc.
Agricultural - growing crops and raising livestock
Special purpose - doesn't fall into other categories: churches, hospitals, schools,
etc.; could be parks, shorelines, etc.
Unimproved or undeveloped land - no buildings or residents
If residential properties are defined as providing dwelling places for individuals or
families, are hotels and motels considered residential properties? Why or why not? -
ANSWERNo, hotels and motels are not residential properties because they are
considered to be only temporary housing.
