REAL ESTATE PRACTICE EXAM QUESTIONS
1. Brokerage denition...
Correct answer: the business practice of bringing together the parties in a practice.
2. What are two examples of special use property?
Correct answer: schools and cemetary
3. What is an example of functional obsolescence?
Correct answer: bathroom
4. Principal denition...
Correct answer: a consumer of real estate services who has entered into an agency
relationship with a broker or another licensee employed by a broker.
5. Capitalization denition...
Correct answer: the process of determining the present value of a property from it's future
income.
6. What is the salespersons obligation to a buyer under single agency listing?
Correct answer: Inform the buyer
8. All are examples of real estate except...
Correct answer: factories
9. What is homeowners insurance?
Correct answer: Insurance to protect owners from res and other etc.
, 10. Special agent denition...
Correct answer: the type of agency in which the principal authorizes the agent to
represent the agent in "one specic transaction or business activity"
11. Which is not used to determine cost approach to estimate value?
-Quantity Survey Method
-Unit-in-Place Method
-Square Foot Method
-Gross Rent Multiplier Method
Correct answer: Gross Rent Multiplier Method
What is steering?
Correct answer: the unlawful act of keeping a buyer away from certain communities or
guiding them to purchase in certain communities.
15. Entitlement to commission when transaction is not consummated.
Correct answer: Except when listing broker does not disclose information
16. Can a salesperson give legal advice?
Correct answer: No, not unless they are an attorney.
17. Who determines the commission in a listing contract?
Correct answer: An agreement between the owner and broker
19. All are typical duties of a property manager with the exception of...
Correct answer: Investing prots
1. Brokerage denition...
Correct answer: the business practice of bringing together the parties in a practice.
2. What are two examples of special use property?
Correct answer: schools and cemetary
3. What is an example of functional obsolescence?
Correct answer: bathroom
4. Principal denition...
Correct answer: a consumer of real estate services who has entered into an agency
relationship with a broker or another licensee employed by a broker.
5. Capitalization denition...
Correct answer: the process of determining the present value of a property from it's future
income.
6. What is the salespersons obligation to a buyer under single agency listing?
Correct answer: Inform the buyer
8. All are examples of real estate except...
Correct answer: factories
9. What is homeowners insurance?
Correct answer: Insurance to protect owners from res and other etc.
, 10. Special agent denition...
Correct answer: the type of agency in which the principal authorizes the agent to
represent the agent in "one specic transaction or business activity"
11. Which is not used to determine cost approach to estimate value?
-Quantity Survey Method
-Unit-in-Place Method
-Square Foot Method
-Gross Rent Multiplier Method
Correct answer: Gross Rent Multiplier Method
What is steering?
Correct answer: the unlawful act of keeping a buyer away from certain communities or
guiding them to purchase in certain communities.
15. Entitlement to commission when transaction is not consummated.
Correct answer: Except when listing broker does not disclose information
16. Can a salesperson give legal advice?
Correct answer: No, not unless they are an attorney.
17. Who determines the commission in a listing contract?
Correct answer: An agreement between the owner and broker
19. All are typical duties of a property manager with the exception of...
Correct answer: Investing prots
