Maine Real Estate UPDATED Exam
Questions and CORRECT Answers
An employer is responsible for direction a ( ) as to both what is to be done and how it is to be
done - CORRECT ANSWER- employee
Real estate licensees are almost always ( ) with their company - CORRECT ANSWER-
independent contractors
Every real estate brokerage should adopt a ( ) that identifies and describes the types of real
estate brokerage relationships in which the broke and affiliated licenses may engage -
CORRECT ANSWER- written company poilicy
license laws and rules apply to all licensees within the state, whereas the NAR ( ) applies only
t those who join the realtor organization - CORRECT ANSWER- Code of ethics
each market has a system whereby each company can promote its listed properties to other
companies who may have a buyer for its properties. the purpose of these (_) is to facilitate the
bringing together of sellers and buyers in the market. - CORRECT ANSWER- multiple
listing services (MLS)
if yu choose to become affiliated with a broker who is a member of a franchise, you will
probably be expected to ( ) for that membershipi that is often in addition to the standard fees
brokerages in your area charge licensees - CORRECT ANSWER- pay a fee
a (_) is someone who owns an unincorporated business by himself or herself, and is
personally liable for the debts of the business - CORRECT ANSWER- sole propietor
the legal structure of a ( ) provides the limited liability featurs of a corporation and the tax
efficiencies and operational flexibility of a partnership. all profits and losses are "passed
through" the business to each member - CORRECT ANSWER- LLC
when a ( ) partnership is formed, there are one or more general partners who accept personal
liability for the partnership and the other partners are limited partners. - CORRECT
ANSWER- limited partnership
,limited partners are NOT responsible for - CORRECT ANSWER- debts unless they
participate in management of the partnership
a (_) is a business entity that is perpetual and survives the lives of any of its shareholders. A
board of directors manages the business and officers are responsible for its daily operations.
shareholders who are not involved in the daily operations simply own stock shares are not
personally responsible - CORRECT ANSWER- corporation
you are the (_) in a real estate transaction if yuo are the licensee that started a change of
events that went unbroken, resulting in the closing.
EX: you are the licensee who brought a buyer to see a property. you assisted this buyer in
preparing, presenting, and negotiating the offer. you oversaw the process until the time of
closing - CORRECT ANSWER- procuring cause
fair competition means that companies cannot "fix their prices," that is, have an agreement
among brokerages ina market area to set their prices. the law requires each company to
establish its own (__) independent of all others - CORRECT ANSWER- fee structure
the EEOA of 1995 prohibits discrimination against a (_) because of the personas race, color,
religion sec, natural origin, age, disability or genetic information - CORRECT ANSWER- job
applicant or employee
independent contractor - CORRECT ANSWER- decides when to do it, how to do it, what
tools to use
National Association of Realtors (NAR) - CORRECT ANSWER- an association of real estate
companies and sales associates from across the coutry
realtor.com verse .org - CORRECT ANSWER- org = eductional resources
.com = developed by NAR where properties around the country can be accessed
sole propietor - CORRECT ANSWER- someone who owns an unincorporated business by
himself
Limitied-Liability Company (LLC) - CORRECT ANSWER- A company in which each
member is only liable for his or her own actions.
,unlimited members, limited liability features, not taxed (profits/losses passed through to each
member)
general partnership - CORRECT ANSWER- partnership in which partners share equally in
both responsibility and liability
every partner is an agent
limited partnership - CORRECT ANSWER- A partnership with one or more general partners
and one or more limited partners.
joint venture - CORRECT ANSWER- two or more partners engaed in a single project that is
expected to end at a certain time
*sharing money, effort, skill, knowledge, etc
corporation - CORRECT ANSWER- A business owned by stockholders who share in its
profits but are not personally responsible for its debts
state/federal antitrust laws - CORRECT ANSWER- -in place to promote free and open
competition
-laws are based on belief that consumers get greatest benefits when businesses compete fairly
Equal Employment Opportunity Act (EEOA) - CORRECT ANSWER- prohibits
discrimination against a job application/employee because or race color religion etc
Maine real estate commission - CORRECT ANSWER- Members:
4 industry members
2 public members
*investigate alleged violations, impose sanctions, prescribe standards for edu
a condominium is a ... - CORRECT ANSWER- type of ownership
, PUD (Panned unit development) - CORRECT ANSWER- usually includes single family
homes, condominiums, apartments, recreational and commercial area. Marets shows etc may
be within walking distance of where you live
the definition of land included the surface, the subsurface, and the air above the land -
CORRECT ANSWER- subsurface
subsurface rights - CORRECT ANSWER- the right to dig or drill a well for water, install a
foundation or strike oil
real estate is defined as land and all ( ) attached to the land - CORRECT ANSWER-
appurtenances
appurtenance - CORRECT ANSWER- something added
natural fruits of the soil that do not require yearly planting are considered - CORRECT
ANSWER- fructus naturales
EX: apple trees, blueberry bushes, etc - attached to land, considered real property
Real property - CORRECT ANSWER- real estate rights and interests associated with
ownership , owner can o whatevery they want as long as its legal
bundle of rights - CORRECT ANSWER- part of real property; prop owner has air rights,
surface, rights, subsurfacee, and rghts to do watever he or she wants
heterogeneity - CORRECT ANSWER- unique; greatest factor in dterming value
land has an economic value of (_). this means the availabiity f land in any particular area is
(_), and zoning affects how much land can be used for a particular purpose - CORRECT
ANSWER- scarcity
finite
the single most important factor in determining value of real property - CORRECT
ANSWER- location
Questions and CORRECT Answers
An employer is responsible for direction a ( ) as to both what is to be done and how it is to be
done - CORRECT ANSWER- employee
Real estate licensees are almost always ( ) with their company - CORRECT ANSWER-
independent contractors
Every real estate brokerage should adopt a ( ) that identifies and describes the types of real
estate brokerage relationships in which the broke and affiliated licenses may engage -
CORRECT ANSWER- written company poilicy
license laws and rules apply to all licensees within the state, whereas the NAR ( ) applies only
t those who join the realtor organization - CORRECT ANSWER- Code of ethics
each market has a system whereby each company can promote its listed properties to other
companies who may have a buyer for its properties. the purpose of these (_) is to facilitate the
bringing together of sellers and buyers in the market. - CORRECT ANSWER- multiple
listing services (MLS)
if yu choose to become affiliated with a broker who is a member of a franchise, you will
probably be expected to ( ) for that membershipi that is often in addition to the standard fees
brokerages in your area charge licensees - CORRECT ANSWER- pay a fee
a (_) is someone who owns an unincorporated business by himself or herself, and is
personally liable for the debts of the business - CORRECT ANSWER- sole propietor
the legal structure of a ( ) provides the limited liability featurs of a corporation and the tax
efficiencies and operational flexibility of a partnership. all profits and losses are "passed
through" the business to each member - CORRECT ANSWER- LLC
when a ( ) partnership is formed, there are one or more general partners who accept personal
liability for the partnership and the other partners are limited partners. - CORRECT
ANSWER- limited partnership
,limited partners are NOT responsible for - CORRECT ANSWER- debts unless they
participate in management of the partnership
a (_) is a business entity that is perpetual and survives the lives of any of its shareholders. A
board of directors manages the business and officers are responsible for its daily operations.
shareholders who are not involved in the daily operations simply own stock shares are not
personally responsible - CORRECT ANSWER- corporation
you are the (_) in a real estate transaction if yuo are the licensee that started a change of
events that went unbroken, resulting in the closing.
EX: you are the licensee who brought a buyer to see a property. you assisted this buyer in
preparing, presenting, and negotiating the offer. you oversaw the process until the time of
closing - CORRECT ANSWER- procuring cause
fair competition means that companies cannot "fix their prices," that is, have an agreement
among brokerages ina market area to set their prices. the law requires each company to
establish its own (__) independent of all others - CORRECT ANSWER- fee structure
the EEOA of 1995 prohibits discrimination against a (_) because of the personas race, color,
religion sec, natural origin, age, disability or genetic information - CORRECT ANSWER- job
applicant or employee
independent contractor - CORRECT ANSWER- decides when to do it, how to do it, what
tools to use
National Association of Realtors (NAR) - CORRECT ANSWER- an association of real estate
companies and sales associates from across the coutry
realtor.com verse .org - CORRECT ANSWER- org = eductional resources
.com = developed by NAR where properties around the country can be accessed
sole propietor - CORRECT ANSWER- someone who owns an unincorporated business by
himself
Limitied-Liability Company (LLC) - CORRECT ANSWER- A company in which each
member is only liable for his or her own actions.
,unlimited members, limited liability features, not taxed (profits/losses passed through to each
member)
general partnership - CORRECT ANSWER- partnership in which partners share equally in
both responsibility and liability
every partner is an agent
limited partnership - CORRECT ANSWER- A partnership with one or more general partners
and one or more limited partners.
joint venture - CORRECT ANSWER- two or more partners engaed in a single project that is
expected to end at a certain time
*sharing money, effort, skill, knowledge, etc
corporation - CORRECT ANSWER- A business owned by stockholders who share in its
profits but are not personally responsible for its debts
state/federal antitrust laws - CORRECT ANSWER- -in place to promote free and open
competition
-laws are based on belief that consumers get greatest benefits when businesses compete fairly
Equal Employment Opportunity Act (EEOA) - CORRECT ANSWER- prohibits
discrimination against a job application/employee because or race color religion etc
Maine real estate commission - CORRECT ANSWER- Members:
4 industry members
2 public members
*investigate alleged violations, impose sanctions, prescribe standards for edu
a condominium is a ... - CORRECT ANSWER- type of ownership
, PUD (Panned unit development) - CORRECT ANSWER- usually includes single family
homes, condominiums, apartments, recreational and commercial area. Marets shows etc may
be within walking distance of where you live
the definition of land included the surface, the subsurface, and the air above the land -
CORRECT ANSWER- subsurface
subsurface rights - CORRECT ANSWER- the right to dig or drill a well for water, install a
foundation or strike oil
real estate is defined as land and all ( ) attached to the land - CORRECT ANSWER-
appurtenances
appurtenance - CORRECT ANSWER- something added
natural fruits of the soil that do not require yearly planting are considered - CORRECT
ANSWER- fructus naturales
EX: apple trees, blueberry bushes, etc - attached to land, considered real property
Real property - CORRECT ANSWER- real estate rights and interests associated with
ownership , owner can o whatevery they want as long as its legal
bundle of rights - CORRECT ANSWER- part of real property; prop owner has air rights,
surface, rights, subsurfacee, and rghts to do watever he or she wants
heterogeneity - CORRECT ANSWER- unique; greatest factor in dterming value
land has an economic value of (_). this means the availabiity f land in any particular area is
(_), and zoning affects how much land can be used for a particular purpose - CORRECT
ANSWER- scarcity
finite
the single most important factor in determining value of real property - CORRECT
ANSWER- location
