MRE_PRACTICE TEST UNITS 1-16 LATEST QUESTIONS AND
VERIFIED ANSWERS
(Unit 1) A building that is remodeled into residential units and no longer used for its original purpose is
an example of:
A)
a converted-use property.
B)
a planned unit development.
C)
a modular home.
D)
an urban homestead.| - CORRECT ANSWER✅✅✅A) The answer is a converted-use property.
Commercial storage lofts fitted out to serve as apartments are a fairly common example of converted-
use property.>
(Unit 1) A development that combines office space, stores, and residential units in a single, vertical
community is called a:
A)
manufactured housing park.
B)
planned unit development.
C)
time-share community.
D)
mixed-use development.| - CORRECT ANSWER✅✅✅D) The answer is mixed-use development. A
mixed-use development (MUD) combines commercial and residential uses in a single high-rise building.>
(Unit 1) A highrise development that includes office space, stores, theaters, and apartment units is an
example of:
A)
,planned unit development.
B)
special cluster zoning.
C)
proprietary lease properties.
D)
mixed-use development.| - CORRECT ANSWER✅✅✅D) The answer is mixed-use development. A
mixed-use development (MUD) is a small community built vertically in one building.>
(Unit 1) An increase in the following would affect supply EXCEPT:
A)
construction costs.
B)
the labor force.
C)
governmental controls.
D)
population.| - CORRECT ANSWER✅✅✅D) The answer is population. As population grows, so does
the demand for housing. Increases in construction costs, governmental controls, and the labor force
affect supply.>
(Unit 1) The National Association of REALTORS® is composed of:
A)
state, regional, and local associations.
B)
state associations.
C)
local associations.
D)
state and regional associations.| - CORRECT ANSWER✅✅✅
,A) The answer is state, regional, and local associations. Many trade organizations serve the real estate
business. The largest is the National Association of REALTORS® (NAR), whose website is
www.realtor.org. NAR is composed of state, regional, and local associations.
> - CORRECT ANSWER✅✅✅
(Unit 1) Members of professional associations are expected to comply with the:
A)
code of ethics as set forth by each organization.
B)
code of standards.
C)
standard operating morals.
D)
code of brokers.| - CORRECT ANSWER✅✅✅A) The answer is code of ethics as set forth by each
organization. Requiring members to comply with the standards of practice and code of ethics and
setting forth consequences for noncompliance helps ensure a high level of professionalism from the
organization and its members.>
(Unit 1) A licensed real estate broker may charge a fee for providing services involving real estate
EXCEPT:
A)
leasing.
B)
exchanging.
C)
selling.
D)
appraising.| - CORRECT ANSWER✅✅✅D) The answer is appraising. While a real estate licensee may
be asked to estimate a property's likely sales price, most transactions require a licensed or certified real
estate appraiser to develop an opinion of a property's market value.>
, (Unit 1) A person who performs a visual survey of a property structure and writes a report for a buyer is:
A)
a home inspector.
B)
a property manager.
C)
an appraiser.
D)
an educator.| - CORRECT ANSWER✅✅✅A) The answer is a home inspector. The home inspector,
who prepares an analytical report of a visual inspection of the property's structure and systems, is
becoming more important in the real estate transaction as more consumers rely on these reports when
buying property.>
(Unit 1) A real estate firm or an individual real estate professional:
A)
is prohibited by law from handling all classes of property.
B)
usually performs all the services and handles all classes of property.
C)
never performs all services and handles all classes of property.
D)
rarely performs all the services or handles all classes of property.| - CORRECT ANSWER✅✅✅
D) The answer is rarely performs all the services or handles all classes of property. Although it is possible
for a single real estate firm or an individual real estate professional to perform all the services and
handle all classes of property discussed here (unless restricted by a state's license law), this is rarely
done, except in small towns.
> - CORRECT ANSWER✅✅✅
VERIFIED ANSWERS
(Unit 1) A building that is remodeled into residential units and no longer used for its original purpose is
an example of:
A)
a converted-use property.
B)
a planned unit development.
C)
a modular home.
D)
an urban homestead.| - CORRECT ANSWER✅✅✅A) The answer is a converted-use property.
Commercial storage lofts fitted out to serve as apartments are a fairly common example of converted-
use property.>
(Unit 1) A development that combines office space, stores, and residential units in a single, vertical
community is called a:
A)
manufactured housing park.
B)
planned unit development.
C)
time-share community.
D)
mixed-use development.| - CORRECT ANSWER✅✅✅D) The answer is mixed-use development. A
mixed-use development (MUD) combines commercial and residential uses in a single high-rise building.>
(Unit 1) A highrise development that includes office space, stores, theaters, and apartment units is an
example of:
A)
,planned unit development.
B)
special cluster zoning.
C)
proprietary lease properties.
D)
mixed-use development.| - CORRECT ANSWER✅✅✅D) The answer is mixed-use development. A
mixed-use development (MUD) is a small community built vertically in one building.>
(Unit 1) An increase in the following would affect supply EXCEPT:
A)
construction costs.
B)
the labor force.
C)
governmental controls.
D)
population.| - CORRECT ANSWER✅✅✅D) The answer is population. As population grows, so does
the demand for housing. Increases in construction costs, governmental controls, and the labor force
affect supply.>
(Unit 1) The National Association of REALTORS® is composed of:
A)
state, regional, and local associations.
B)
state associations.
C)
local associations.
D)
state and regional associations.| - CORRECT ANSWER✅✅✅
,A) The answer is state, regional, and local associations. Many trade organizations serve the real estate
business. The largest is the National Association of REALTORS® (NAR), whose website is
www.realtor.org. NAR is composed of state, regional, and local associations.
> - CORRECT ANSWER✅✅✅
(Unit 1) Members of professional associations are expected to comply with the:
A)
code of ethics as set forth by each organization.
B)
code of standards.
C)
standard operating morals.
D)
code of brokers.| - CORRECT ANSWER✅✅✅A) The answer is code of ethics as set forth by each
organization. Requiring members to comply with the standards of practice and code of ethics and
setting forth consequences for noncompliance helps ensure a high level of professionalism from the
organization and its members.>
(Unit 1) A licensed real estate broker may charge a fee for providing services involving real estate
EXCEPT:
A)
leasing.
B)
exchanging.
C)
selling.
D)
appraising.| - CORRECT ANSWER✅✅✅D) The answer is appraising. While a real estate licensee may
be asked to estimate a property's likely sales price, most transactions require a licensed or certified real
estate appraiser to develop an opinion of a property's market value.>
, (Unit 1) A person who performs a visual survey of a property structure and writes a report for a buyer is:
A)
a home inspector.
B)
a property manager.
C)
an appraiser.
D)
an educator.| - CORRECT ANSWER✅✅✅A) The answer is a home inspector. The home inspector,
who prepares an analytical report of a visual inspection of the property's structure and systems, is
becoming more important in the real estate transaction as more consumers rely on these reports when
buying property.>
(Unit 1) A real estate firm or an individual real estate professional:
A)
is prohibited by law from handling all classes of property.
B)
usually performs all the services and handles all classes of property.
C)
never performs all services and handles all classes of property.
D)
rarely performs all the services or handles all classes of property.| - CORRECT ANSWER✅✅✅
D) The answer is rarely performs all the services or handles all classes of property. Although it is possible
for a single real estate firm or an individual real estate professional to perform all the services and
handle all classes of property discussed here (unless restricted by a state's license law), this is rarely
done, except in small towns.
> - CORRECT ANSWER✅✅✅
