Illinois Real Estate License Test Top Rated Questions and Answers Graded A

Brokerage - the business of bringing people together in a real estate transaction real estate licensee - acts as a point of contact between two or more people in negotiating the sale, purchase, or rental of property. A real estate licensee may be the agent for the buyer, for the seller, or for both llinois license categories - broker, managing broker, and leasing agent Appraisal - is the process of estimating a property's market value based on established methods and the appraiser's professional judgment. Property Management - a person or company hired to maintain and manage property on behalf of its owner. Financing - is the business of providing the funds that make real estate transactions possible. Most transactions are financed by means of mortgage loans or trust deed loans secured by the property. Subdivision - is the splitting of a single property into smaller parcels. Offsite improvements - such as water lines and storm sewers, are made on public lands to serve the new development. Onsite improvements - are additions or enhancements within the buildings or lots being sold that increase the value of the properties within the development. Onsite improvements include roads and infrastructure or new buildings. 5 Types of Real Property - Residential Commercial Industrial Agricultural Special purpose residential - all property used for single-family or multifamily housing, whether in urban, suburban, or rural areas commercial - business property, including office space, shopping centers, stores, theaters, hotels, and parking facilities; industrial - warehouses, factories, and land in industrial districts; agricultural - farms, timberland, ranches, and orchards; or special purpose - churches, schools, cemeteries, and government-held lands. Factors that affect supply side of market - labor force, construction and material costs, government controls, and financial policies. Factors That Affect the Demand of Real Estate - Population Demographics Employment and wage levels Demographics - the study and description of population. A professional estimate of a property's market value, based on established methods and using trained, professional judgment, is performed by a - real estate appraiser. In general, when the supply of a certain commodity increases, - prices tend to drop Which of these factors tends to affect supply in the real estate market? - Government controls and financial policies Which factor MOST likely influences the demand for real estate? - Wage levels and employment opportunities Property management, leasing, appraisal, financing, and development are all examples of - specializations within the real estate industry. A REALTOR® is - a real estate licensee who is a member of the National Association of REALTORS®. A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect will this announcement MOST likely have on the small town's housing market? - Houses will become more expensive. A licensee who has several years of experience in the industry decided to retire from actively marketing properties. Now this licensee helps clients choose among the various alternatives involved in purchasing, using, or investing in property. What is the licensee's profession? - Real estate counselor The term REALTOR® refers to - a member of the National Association of REALTORS®. Schools are considered part of which real estate classification? - Special-purpose When demand for a commodity decreases and supply remains the same, - price tends to fall. The term appraisal is defined as the - method of estimating a property's market value based on established methods and the appraiser's professional judgment. The Federal Reserve Board - establishes a discount rate of interest for the money it lends to its member banks. All of these are categories of the uses of real property EXCEPT - developmental. All of these would affect overall demand in the real estate market EXCEPT - zoning ordinances. All of these affect how quickly the forces of supply and demand work EXCEPT - degree of standardization of the product's price. A real estate professional who performs a visual survey of a property's structure and systems and prepares an analytical report for a purchaser or an owner is acting as - a home inspector. When the supply of a commodity decreases while demand remains the same, price tends to - rise. When responsible for maintaining a client's property and maximizing the return on the client's investment, a real estate licensee is serving as - a property manager. Detailed information about the age, education, behavior, and other characteristics of members of a population group is called - demographics. Land: - no improvements Real estate: - land with improvements Real property: - land with improvements plus rights Land - the earth's surface extending downward to the center of the earth and upward to infinity. Land includes not only the surface of the earth but also the underlying soil. Land also refers to objects that are naturally attached to the earth's surface, such as boulders and plants. Land includes the minerals and substances that lie far below the earth's surface (subsurface). It even includes the air above the earth, all the way up into space (airspace) Real Estate - is defined as land at, above, and below the earth's surface, plus all things permanently attached to it. Real estate is similar to land but means much more: Real estate includes the natural land along with all human-made improvements.