Bob Hogue Real Estate Class Test
Questions and Answers
Absentee Owner - ANSWER-A property holder who does not reside on the property and who usually
relies on a property manager to manage the investment.
Appraisal - ANSWER-The process of developing and communicating an estimate of a property's
Appraiser - ANSWER-Appraisers charge a fee based on the time and difficulty of the appraisal assignment
and are not paid commission.
Broker Price Opinion (BPO) - ANSWER-A broker's written opinion of the value of a particular property
that may not be used in connection with the originating a federally related loan; not an appraisal.
Business Broker - ANSWER-Real estate licensees who engage in the sale, purchase, or lease of
businesses.
Business Opportunity - ANSWER-The sale or lease of an existing business, including the sale of tangible
and intangible assets
Community Association Manager (CAM) - ANSWER-must hold a CAM license when the community
association consists of more than 10 units or has an annual budget in excess of $100,000.
Comparative Market Analysis (CMA) - ANSWER-An informal estimate of market value performed by a
real estate licensee for the seller to assist in arriving at an appropriate listing price, or if working with the
buyer, an informal estimate of market value to assist the buyer in arriving at an appropriate offering
price.
Delication - ANSWER-The gift of land by an owner, in this case developer, to a government body for
public use. A valid dedication of land from the owner to the municipality requires both an offer to
dedicate (donate) the land and an acceptance by the municipality.
Farm Area - ANSWER-one specific portion of a city, where a broker and sales associate are experts in that
particular portion
Follow-Up - ANSWER-the sales step in which a salesperson follows up after the sale to ensure customer
satisfaction and repeat business
Multiple Listing Service (MLS) - ANSWER-database that allows real estate brokers representing sellers
under a listing contract to share information about properties with real estate brokers who may
represent potential buyers
Property Management - ANSWER-The leasing, managing, marketing, and overall maintenance of
property for others.
Property Manager - ANSWER-Involves the leasing, managing, marketing, and maintenance of property
Real Estate Brokerage - ANSWER-A part of the real estate business that is concerned with bringing
together buyers and sellers and owners and renters and completing a real estate transaction.
,REALTOR® - ANSWER-a real estate licensee who is a member of the National Association of REALTORS®.
Rental Agent - ANSWER-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.
Target Market - ANSWER-a specific group of prospects chosen because of its demographic, financial, and
lifestyle characteristics
Real estate professionals provide expert information in which three areas? - ANSWER-1. Knowledge of
property transfer
2. Knowledge of market conditions
3. Knowledge of how to market real estate and businesses
Real estate sales associates involved in sales and leasing specialize in one of which 5 areas? - ANSWER-1.
Residential
2. Commercial
3. Industrial
4. Agricultural
5. Businesses
Florida Real Estate Appraisal Board (FREAB) - ANSWER-Regulates state certified and licensed appraisers
Uniform Standards of Professional Appraisal Practice (USPAP) - ANSWER-States that it is unethical for an
appraiser to accept compensation that is contingent on the value of the property.
Mortgage Loan Originator (MLO) - ANSWER-Anyone who takes residential mortgage loan applications or
offers to negotiate the terms of residential mortgage loan applications for compensation must be
licensed as an MLO
What are the three general phases of development and construction: - ANSWER-1. Land Acquisition
2. Subdivision and development
3. Recording the subdivision plat map
Land Acquisitions - ANSWER-Developers and builders require raw land and then prepare the site for
construction.
Subdividing - ANSWER-A separation of the land into smaller parcels
Development - ANSWER-The process of improving raw land so that it can be put to productive use
Recording the subdivision plat map - ANSWER-Most local governments require that developers submit a
subdivision plat map of a new development for review by the planning board.
What are the three general categories of residential construction: - ANSWER-1. Speculative (spec) homes
2. Custom homes
,3. Tract homes
How is the real estate business regulate or influenced by the local government? - ANSWER-Impacts the
real estate business through property taxation and regulatory activities such as occupational licensing,
business tax receipts, building permits, building moratoriums, zoning, and building codes
How is the real estate business regulate or influenced by the state governments? - ANSWER-Manages a
large amount of land and identifies coastal regions and other areas that are protected from
development. State documentary and intangible taxes are required when ownership to real property is
transferred or pledged as collateral for a mortgage
How is the real estate business regulate or influenced by the federal governments? - ANSWER-Impacts
through physical and monetary policies. HUD, FHA, EPA, VA
Broker - ANSWER-A person who, for another and for compensation or other consideration (or
anticipation of compensation or other consideration), performs real estate services.
Broker Associate - ANSWER-A person who holds a broker's license but chooses to register and work in
real estate under the direction of another broker.
Compensation - ANSWER-Anything of value or a valuable consideration, directly or indirectly paid,
promised, or expected to be paid or received.
Expungement - ANSWER-A process by which the record of a criminal conviction is destroyed or sealed
after expiration of time. Expungement is not automatic. Attorneys charge extra for this process, and
applicants should confirm that the matter no longer apears on ones criminal history.
Florida resident - ANSWER-For application and licensing purposes, a person who has resided in Florida
continuously for four calendar months or more within the preceding year.
License - ANSWER-An individual who has qualified for, and been registered as, a real estate broker,
broker associate, or sales associate.
Mutual recognition agreement - ANSWER-Recognizes the education and experience of individuals
licensed in another state or nation when the other jurisdiction has education and experience
requirement comparable to Florida requirements. The agreement applies exclusively to non residents
who are licensed in another jurisdiction. The application requests mutual recognition on the license
application and indicates from which mutual recognition is requested.
nolo contendere (no contest) - ANSWER-A pleading of no contest by a defendant; a plea in a criminal
action not admitting guilt but subjecting the defendant to punishment as though it were a guilty plea.
Owner-developer - ANSWER-An unlicensed entity that sells, exchanges, or leases its own property.
Prima Facie Evidence - ANSWER-Requiring no further proof; acceptable on the face of.
real estate services - ANSWER-Real estate activities involving compensation for performing the activities
for another.
, Reciprocity - ANSWER-Practice of mutual exchanges of privileges. To qualify for a reciprocal real estate
license, the elidgiable military applicant, spouse, or surviving spouse must currently hold a valid real
estate license issued in another state, US territory.
Registration - ANSWER-Authorization by the state to place an applicant on the register (record) of
officially recognized individuals and businesses.
Sales Associate - ANSWER-A person who performs real estate services for compensation but who does
so under the direction, control, or management of a broker or an owner-developer.
Sealed - ANSWER-Statutes in some states permit a person's criminal record to be sealed, and thereafter
such records cannot be examined except by order of the court or by designated officials.
withhold adjudication - ANSWER-When the court determines that a defendant is not likely to again
engage in a criminal act and that the ends of justice and the welfare of society do not require that the
defendant suffer the penalty imposed by law, the court may withhold adjudication of guilt, stay (stop)
the imposition of the sentence, and place the defendant on probation.
What are the four parts of Chapter 475? - ANSWER-1. Real estate brokerage
2. Real estate appraisers
3. Commercial Real Estate Lien Act
4. Commercial Real Estate Leasing Commission Lien Act
Florida Real Estate Commission (FREC) - ANSWER-The Florida Legislature created this organization to
administer and enforce license law, authority to keep records, conduct investigations, and the power to
grant, deny, suspend, and revoke licenses.
Division of Real Estate (DRE) - ANSWER-Supports the Commission (FREC). under the Dept. of Business &
Professional Regulation (DBPR)
Florida Statue 20 - ANSWER-Governs the exectuve branch of Florida's government
Florida Statue Chapter 475 - ANSWER-Often called the Real Estate Professional Practice Act. Chapter 475
was created by the Florida Legislature to establish the legal rights and responsibilities of real estate
licensee and real estate appraisers. First set of laws passed by the legislature in Florida
Commercial Real Estate Lien Act - ANSWER-Gives the broker lien rights for earned commission associated
with a brokerage agreement to lease commercial real estate.
Chapter 455, Business and Professional Regulation - ANSWER-Defines the general legal practice and
procedure for the Dept. of Business & Professional Regulation (DBPR) and the licensees of all professions
regulated by the DBPR, including real estate.
Section 455.10 of Chapter 455 - ANSWER-The statue provides that an individual cannot be disqualified
from practicing an occupation or profession regulated by the State of Florida solely because the person is
not a US citizen.
Questions and Answers
Absentee Owner - ANSWER-A property holder who does not reside on the property and who usually
relies on a property manager to manage the investment.
Appraisal - ANSWER-The process of developing and communicating an estimate of a property's
Appraiser - ANSWER-Appraisers charge a fee based on the time and difficulty of the appraisal assignment
and are not paid commission.
Broker Price Opinion (BPO) - ANSWER-A broker's written opinion of the value of a particular property
that may not be used in connection with the originating a federally related loan; not an appraisal.
Business Broker - ANSWER-Real estate licensees who engage in the sale, purchase, or lease of
businesses.
Business Opportunity - ANSWER-The sale or lease of an existing business, including the sale of tangible
and intangible assets
Community Association Manager (CAM) - ANSWER-must hold a CAM license when the community
association consists of more than 10 units or has an annual budget in excess of $100,000.
Comparative Market Analysis (CMA) - ANSWER-An informal estimate of market value performed by a
real estate licensee for the seller to assist in arriving at an appropriate listing price, or if working with the
buyer, an informal estimate of market value to assist the buyer in arriving at an appropriate offering
price.
Delication - ANSWER-The gift of land by an owner, in this case developer, to a government body for
public use. A valid dedication of land from the owner to the municipality requires both an offer to
dedicate (donate) the land and an acceptance by the municipality.
Farm Area - ANSWER-one specific portion of a city, where a broker and sales associate are experts in that
particular portion
Follow-Up - ANSWER-the sales step in which a salesperson follows up after the sale to ensure customer
satisfaction and repeat business
Multiple Listing Service (MLS) - ANSWER-database that allows real estate brokers representing sellers
under a listing contract to share information about properties with real estate brokers who may
represent potential buyers
Property Management - ANSWER-The leasing, managing, marketing, and overall maintenance of
property for others.
Property Manager - ANSWER-Involves the leasing, managing, marketing, and maintenance of property
Real Estate Brokerage - ANSWER-A part of the real estate business that is concerned with bringing
together buyers and sellers and owners and renters and completing a real estate transaction.
,REALTOR® - ANSWER-a real estate licensee who is a member of the National Association of REALTORS®.
Rental Agent - ANSWER-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.
Target Market - ANSWER-a specific group of prospects chosen because of its demographic, financial, and
lifestyle characteristics
Real estate professionals provide expert information in which three areas? - ANSWER-1. Knowledge of
property transfer
2. Knowledge of market conditions
3. Knowledge of how to market real estate and businesses
Real estate sales associates involved in sales and leasing specialize in one of which 5 areas? - ANSWER-1.
Residential
2. Commercial
3. Industrial
4. Agricultural
5. Businesses
Florida Real Estate Appraisal Board (FREAB) - ANSWER-Regulates state certified and licensed appraisers
Uniform Standards of Professional Appraisal Practice (USPAP) - ANSWER-States that it is unethical for an
appraiser to accept compensation that is contingent on the value of the property.
Mortgage Loan Originator (MLO) - ANSWER-Anyone who takes residential mortgage loan applications or
offers to negotiate the terms of residential mortgage loan applications for compensation must be
licensed as an MLO
What are the three general phases of development and construction: - ANSWER-1. Land Acquisition
2. Subdivision and development
3. Recording the subdivision plat map
Land Acquisitions - ANSWER-Developers and builders require raw land and then prepare the site for
construction.
Subdividing - ANSWER-A separation of the land into smaller parcels
Development - ANSWER-The process of improving raw land so that it can be put to productive use
Recording the subdivision plat map - ANSWER-Most local governments require that developers submit a
subdivision plat map of a new development for review by the planning board.
What are the three general categories of residential construction: - ANSWER-1. Speculative (spec) homes
2. Custom homes
,3. Tract homes
How is the real estate business regulate or influenced by the local government? - ANSWER-Impacts the
real estate business through property taxation and regulatory activities such as occupational licensing,
business tax receipts, building permits, building moratoriums, zoning, and building codes
How is the real estate business regulate or influenced by the state governments? - ANSWER-Manages a
large amount of land and identifies coastal regions and other areas that are protected from
development. State documentary and intangible taxes are required when ownership to real property is
transferred or pledged as collateral for a mortgage
How is the real estate business regulate or influenced by the federal governments? - ANSWER-Impacts
through physical and monetary policies. HUD, FHA, EPA, VA
Broker - ANSWER-A person who, for another and for compensation or other consideration (or
anticipation of compensation or other consideration), performs real estate services.
Broker Associate - ANSWER-A person who holds a broker's license but chooses to register and work in
real estate under the direction of another broker.
Compensation - ANSWER-Anything of value or a valuable consideration, directly or indirectly paid,
promised, or expected to be paid or received.
Expungement - ANSWER-A process by which the record of a criminal conviction is destroyed or sealed
after expiration of time. Expungement is not automatic. Attorneys charge extra for this process, and
applicants should confirm that the matter no longer apears on ones criminal history.
Florida resident - ANSWER-For application and licensing purposes, a person who has resided in Florida
continuously for four calendar months or more within the preceding year.
License - ANSWER-An individual who has qualified for, and been registered as, a real estate broker,
broker associate, or sales associate.
Mutual recognition agreement - ANSWER-Recognizes the education and experience of individuals
licensed in another state or nation when the other jurisdiction has education and experience
requirement comparable to Florida requirements. The agreement applies exclusively to non residents
who are licensed in another jurisdiction. The application requests mutual recognition on the license
application and indicates from which mutual recognition is requested.
nolo contendere (no contest) - ANSWER-A pleading of no contest by a defendant; a plea in a criminal
action not admitting guilt but subjecting the defendant to punishment as though it were a guilty plea.
Owner-developer - ANSWER-An unlicensed entity that sells, exchanges, or leases its own property.
Prima Facie Evidence - ANSWER-Requiring no further proof; acceptable on the face of.
real estate services - ANSWER-Real estate activities involving compensation for performing the activities
for another.
, Reciprocity - ANSWER-Practice of mutual exchanges of privileges. To qualify for a reciprocal real estate
license, the elidgiable military applicant, spouse, or surviving spouse must currently hold a valid real
estate license issued in another state, US territory.
Registration - ANSWER-Authorization by the state to place an applicant on the register (record) of
officially recognized individuals and businesses.
Sales Associate - ANSWER-A person who performs real estate services for compensation but who does
so under the direction, control, or management of a broker or an owner-developer.
Sealed - ANSWER-Statutes in some states permit a person's criminal record to be sealed, and thereafter
such records cannot be examined except by order of the court or by designated officials.
withhold adjudication - ANSWER-When the court determines that a defendant is not likely to again
engage in a criminal act and that the ends of justice and the welfare of society do not require that the
defendant suffer the penalty imposed by law, the court may withhold adjudication of guilt, stay (stop)
the imposition of the sentence, and place the defendant on probation.
What are the four parts of Chapter 475? - ANSWER-1. Real estate brokerage
2. Real estate appraisers
3. Commercial Real Estate Lien Act
4. Commercial Real Estate Leasing Commission Lien Act
Florida Real Estate Commission (FREC) - ANSWER-The Florida Legislature created this organization to
administer and enforce license law, authority to keep records, conduct investigations, and the power to
grant, deny, suspend, and revoke licenses.
Division of Real Estate (DRE) - ANSWER-Supports the Commission (FREC). under the Dept. of Business &
Professional Regulation (DBPR)
Florida Statue 20 - ANSWER-Governs the exectuve branch of Florida's government
Florida Statue Chapter 475 - ANSWER-Often called the Real Estate Professional Practice Act. Chapter 475
was created by the Florida Legislature to establish the legal rights and responsibilities of real estate
licensee and real estate appraisers. First set of laws passed by the legislature in Florida
Commercial Real Estate Lien Act - ANSWER-Gives the broker lien rights for earned commission associated
with a brokerage agreement to lease commercial real estate.
Chapter 455, Business and Professional Regulation - ANSWER-Defines the general legal practice and
procedure for the Dept. of Business & Professional Regulation (DBPR) and the licensees of all professions
regulated by the DBPR, including real estate.
Section 455.10 of Chapter 455 - ANSWER-The statue provides that an individual cannot be disqualified
from practicing an occupation or profession regulated by the State of Florida solely because the person is
not a US citizen.
