BOB HOGUE SCHOOL OF REAL ESTATE
EXAM QUESTION MASTER 1 WITH
CORRECT ANSWERS
T/F - Real estate professionals provide knowledge of market conditions - Correct
Answers -True
The product that real estate licensees market is - Correct Answers -Expert Information
Real estate professionals provide expert information in three areas: - Correct Answers -
Property transfer, market conditions, and how to market real estate and businesses.
D.B.P.R
(Department of Business and Professional Regulation) main office location - Correct
Answers -- Located in Tallahassee, FL.
DRE (Division of Real Estate) main office location - Correct Answers -FS mandated that
the DRE offices and the principle office of the Commission be located in Orlando, FL.
Target Market - Correct Answers -A specific group of prospects chosen because of its
demographic, financial, and lifestyle characteristics.
Farm Area (Target Market) - Correct Answers -A selected geographical area or a group
of people from which to solicit real estate business and to which a real estate licensee
devotes special attention and study.
Follow-up - Correct Answers -What a sales associate does after a sale to maintain
customer contact and goodwill.
T/F - Follow-up refers to returning phone calls to prospective buyers in a timely manner.
- Correct Answers -False - Follow-up is what a sales associate does for buyers and
sellers after the sale (closing) to promote customer loyalty.
T/F - Real estate professionals who specialize in the sale, purchase, and lease of
businesses must hold a commercial license. - Correct Answers -False - In Florida, an
active real estate sales associate or broker license is required to market business
opportunities. No license distinction is made regarding the type of real estate.
,Five Major Sales Specialties - Correct Answers -Residential, Commercial, Industrial,
Agricultural, Businesses
Residential - Correct Answers -Residential sales associates need to know the best
access routes and locations of schools, shopping facilities, and recreation facilities.
They must be able to explain property taxes, homestead exemptions, restrictive
covenants, and approximate utility costs in the area. One of the more important aspects
of residential sales is knowing how to help prospective buyers obtain financing. Most
real estate licensees specialize in the sale and purchase of owner-occupied residential
property.
Commercial - Correct Answers -Real estate professionals who specialize in commercial
sales need expertise regarding income-producing properties, investment analysis, and
the various techniques for increasing after-tax cash flow. Improved residential property
of more than four units, retail stores, office buildings, and shopping centers are
examples of income-producing commercial properties.
Industrial - Correct Answers -Real estate licensees who provide real estate expertise of
industrial real estate must have technical knowledge of the needs of different industries,
such as transportation requirements, industrial construction methods, and local land-use
restrictions affecting industrial properties. Many industrial brokers are developing and
marketing industrial subdivisions.
Agricultural - Correct Answers -Professionals who specialize in the sale of farms and
agricultural land must be familiar with the operation of farms and the economic
problems associated with the various types of farming. Real estate licensees who
specialize in agricultural real estate are knowledgeable about farm operations and the
federal programs affecting farm operations.
Businesses - Correct Answers -Real estate licensees who engage in the sale,
purchase, or lease of businesses are called business brokers. A business opportunity
involves the sale or lease of an existing business, including the sale of tangible and
intangible assets. In most states, if real property is an asset of the business, a real
estate broker's license is required to sell the business. There is a presumption in Florida
law that businesses will have some sort of real property involved, either land with
physical improvements (such as a building) or a long-term lease. For this reason, in
Florida, an active current real estate license is required to sell or lease business
opportunities.
Business Brokers - Correct Answers -Real estate licensees who engage in the sale,
purchase, or lease of businesses.
Business Opportunity - Correct Answers -The real estate activity dealing in the sale,
purchase, or lease of businesses.
,Property Management - Correct Answers -The leasing, managing, marketing, and
overall maintenance of property for others. A professional service conducted by a
person or company hired to maintain and manage property on behalf of property
owners. The scope of the work the property manager performs is detailed in the
management agreement.
Property Manager - Correct Answers -- The property owner's local representative who
manages properties for various owners.
- Primary duties are to secure and keep tenants, to provide financial records and
accounts, and to provide upkeep and maintenance of the properties.
- Primary charge is to protect the owner's investment and to maximize the owner's
return on the investment.
Rental Agent - Correct Answers -A person who, for a fee, acts as an intermediary
between a person seeking to lease a housing accommodation and a property owner
seeking to acquire a lease for a housing accommodation. Rental agents who are paid
on a transaction basis must be licensed real estate agents. Salaried employees who
work in an onsite rental office in a leasing capacity are exempt from a real estate
license, provided they are not paid on a transactional basis.
Absentee Owner - Correct Answers -A property holder who does not reside on the
property and who usually relies on a property manager to supervise the investment.
Community Association Manager - Correct Answers -A person who holds a CAM
license to manage community associations of more than 10 units and associations with
annual budgets in excess of $100,000.
T/F A property manager is responsible for protecting the owner's investment. - Correct
Answers -T
T/F Rental agents manage the property once a tenant is secured. - Correct Answers -F
Appraisal - Correct Answers -The process of developing and communicating an opinion
of a property's value based on supportable evidence and approved methods as of a
certain date.
One who is registered, licensed, or certified by the DBPR and provides an estimate of
value. - Correct Answers -Appraiser
T/F Real estate licensees must abide by USPAP when preparing CMAs and BPOs. -
Correct Answers -F
T/F The Uniform Standards of Professional Appraisal Practice are standards of practice
when conducting appraisals of real property that must be followed by appraisers but not
real estate licensees. - Correct Answers -The statement is false. Florida law requires
appraisers, real estate brokers, broker associates, and sales associates to abide by the
, Uniform Standards of Professional Appraisal Practice when conducting appraisals of
real property.
T/F An individual who offers to negotiate the terms of residential mortgage loan
applications for compensation must be licensed as a real estate broker. - Correct
Answers -F
T/F Sources of real estate financing include commercial banks, savings associations,
credit unions, and mortgage companies. - Correct Answers -T
Land acquisition - Correct Answers -Developers and builders acquire raw land and then
prepare the site for construction. They must carefully study zoning and land-use plans
to determine what type of development is permissible. During this phase, the developer
seeks approval for the proposed project from the local municipality. The developer
incurs costs for engineering plans, attorney fees, surveys, and application fees.
Subdividing - Correct Answers -The process of converting parcels of land into smaller
units or lots.
Development - Correct Answers -The process of improving raw land so that it can be
put to productive use.
Recording the subdivision plat map - Correct Answers -Before work can begin, most
local governments require that developers submit a subdivision plat map of a new
development for review by the applicable government planning board (Commission).
Subdivision plat map - Correct Answers -An engineer's plan for land use superimposed
on a map of the land to be developed. The subdivision plat map indicates the proposed
size and location of individual building lots, streets, and public utilities, including water
and sewer lines, and other clarifying information
Dedication - Correct Answers -An offer of land for some public use, by an owner,
together with acceptance by or on behalf of the public.
T/F A subdivision plat map usually must be submitted to the local government planning
board. - Correct Answers -T
T/F A gift of land by a developer to a local government to be used for streets and
sidewalks is called dedication. - Correct Answers -T
speculative (spec) homes - Correct Answers -Building "on speculation" involves
purchasing one or more lots and constructing a home (or homes) without a buyer in
advance of construction (no presale).
Custom homes - Correct Answers -A custom builder constructs homes under contract
with a buyer, often using building plans provided by architects or buyers.
EXAM QUESTION MASTER 1 WITH
CORRECT ANSWERS
T/F - Real estate professionals provide knowledge of market conditions - Correct
Answers -True
The product that real estate licensees market is - Correct Answers -Expert Information
Real estate professionals provide expert information in three areas: - Correct Answers -
Property transfer, market conditions, and how to market real estate and businesses.
D.B.P.R
(Department of Business and Professional Regulation) main office location - Correct
Answers -- Located in Tallahassee, FL.
DRE (Division of Real Estate) main office location - Correct Answers -FS mandated that
the DRE offices and the principle office of the Commission be located in Orlando, FL.
Target Market - Correct Answers -A specific group of prospects chosen because of its
demographic, financial, and lifestyle characteristics.
Farm Area (Target Market) - Correct Answers -A selected geographical area or a group
of people from which to solicit real estate business and to which a real estate licensee
devotes special attention and study.
Follow-up - Correct Answers -What a sales associate does after a sale to maintain
customer contact and goodwill.
T/F - Follow-up refers to returning phone calls to prospective buyers in a timely manner.
- Correct Answers -False - Follow-up is what a sales associate does for buyers and
sellers after the sale (closing) to promote customer loyalty.
T/F - Real estate professionals who specialize in the sale, purchase, and lease of
businesses must hold a commercial license. - Correct Answers -False - In Florida, an
active real estate sales associate or broker license is required to market business
opportunities. No license distinction is made regarding the type of real estate.
,Five Major Sales Specialties - Correct Answers -Residential, Commercial, Industrial,
Agricultural, Businesses
Residential - Correct Answers -Residential sales associates need to know the best
access routes and locations of schools, shopping facilities, and recreation facilities.
They must be able to explain property taxes, homestead exemptions, restrictive
covenants, and approximate utility costs in the area. One of the more important aspects
of residential sales is knowing how to help prospective buyers obtain financing. Most
real estate licensees specialize in the sale and purchase of owner-occupied residential
property.
Commercial - Correct Answers -Real estate professionals who specialize in commercial
sales need expertise regarding income-producing properties, investment analysis, and
the various techniques for increasing after-tax cash flow. Improved residential property
of more than four units, retail stores, office buildings, and shopping centers are
examples of income-producing commercial properties.
Industrial - Correct Answers -Real estate licensees who provide real estate expertise of
industrial real estate must have technical knowledge of the needs of different industries,
such as transportation requirements, industrial construction methods, and local land-use
restrictions affecting industrial properties. Many industrial brokers are developing and
marketing industrial subdivisions.
Agricultural - Correct Answers -Professionals who specialize in the sale of farms and
agricultural land must be familiar with the operation of farms and the economic
problems associated with the various types of farming. Real estate licensees who
specialize in agricultural real estate are knowledgeable about farm operations and the
federal programs affecting farm operations.
Businesses - Correct Answers -Real estate licensees who engage in the sale,
purchase, or lease of businesses are called business brokers. A business opportunity
involves the sale or lease of an existing business, including the sale of tangible and
intangible assets. In most states, if real property is an asset of the business, a real
estate broker's license is required to sell the business. There is a presumption in Florida
law that businesses will have some sort of real property involved, either land with
physical improvements (such as a building) or a long-term lease. For this reason, in
Florida, an active current real estate license is required to sell or lease business
opportunities.
Business Brokers - Correct Answers -Real estate licensees who engage in the sale,
purchase, or lease of businesses.
Business Opportunity - Correct Answers -The real estate activity dealing in the sale,
purchase, or lease of businesses.
,Property Management - Correct Answers -The leasing, managing, marketing, and
overall maintenance of property for others. A professional service conducted by a
person or company hired to maintain and manage property on behalf of property
owners. The scope of the work the property manager performs is detailed in the
management agreement.
Property Manager - Correct Answers -- The property owner's local representative who
manages properties for various owners.
- Primary duties are to secure and keep tenants, to provide financial records and
accounts, and to provide upkeep and maintenance of the properties.
- Primary charge is to protect the owner's investment and to maximize the owner's
return on the investment.
Rental Agent - Correct Answers -A person who, for a fee, acts as an intermediary
between a person seeking to lease a housing accommodation and a property owner
seeking to acquire a lease for a housing accommodation. Rental agents who are paid
on a transaction basis must be licensed real estate agents. Salaried employees who
work in an onsite rental office in a leasing capacity are exempt from a real estate
license, provided they are not paid on a transactional basis.
Absentee Owner - Correct Answers -A property holder who does not reside on the
property and who usually relies on a property manager to supervise the investment.
Community Association Manager - Correct Answers -A person who holds a CAM
license to manage community associations of more than 10 units and associations with
annual budgets in excess of $100,000.
T/F A property manager is responsible for protecting the owner's investment. - Correct
Answers -T
T/F Rental agents manage the property once a tenant is secured. - Correct Answers -F
Appraisal - Correct Answers -The process of developing and communicating an opinion
of a property's value based on supportable evidence and approved methods as of a
certain date.
One who is registered, licensed, or certified by the DBPR and provides an estimate of
value. - Correct Answers -Appraiser
T/F Real estate licensees must abide by USPAP when preparing CMAs and BPOs. -
Correct Answers -F
T/F The Uniform Standards of Professional Appraisal Practice are standards of practice
when conducting appraisals of real property that must be followed by appraisers but not
real estate licensees. - Correct Answers -The statement is false. Florida law requires
appraisers, real estate brokers, broker associates, and sales associates to abide by the
, Uniform Standards of Professional Appraisal Practice when conducting appraisals of
real property.
T/F An individual who offers to negotiate the terms of residential mortgage loan
applications for compensation must be licensed as a real estate broker. - Correct
Answers -F
T/F Sources of real estate financing include commercial banks, savings associations,
credit unions, and mortgage companies. - Correct Answers -T
Land acquisition - Correct Answers -Developers and builders acquire raw land and then
prepare the site for construction. They must carefully study zoning and land-use plans
to determine what type of development is permissible. During this phase, the developer
seeks approval for the proposed project from the local municipality. The developer
incurs costs for engineering plans, attorney fees, surveys, and application fees.
Subdividing - Correct Answers -The process of converting parcels of land into smaller
units or lots.
Development - Correct Answers -The process of improving raw land so that it can be
put to productive use.
Recording the subdivision plat map - Correct Answers -Before work can begin, most
local governments require that developers submit a subdivision plat map of a new
development for review by the applicable government planning board (Commission).
Subdivision plat map - Correct Answers -An engineer's plan for land use superimposed
on a map of the land to be developed. The subdivision plat map indicates the proposed
size and location of individual building lots, streets, and public utilities, including water
and sewer lines, and other clarifying information
Dedication - Correct Answers -An offer of land for some public use, by an owner,
together with acceptance by or on behalf of the public.
T/F A subdivision plat map usually must be submitted to the local government planning
board. - Correct Answers -T
T/F A gift of land by a developer to a local government to be used for streets and
sidewalks is called dedication. - Correct Answers -T
speculative (spec) homes - Correct Answers -Building "on speculation" involves
purchasing one or more lots and constructing a home (or homes) without a buyer in
advance of construction (no presale).
Custom homes - Correct Answers -A custom builder constructs homes under contract
with a buyer, often using building plans provided by architects or buyers.
