Colibri Real Estate
Joe Alpha of ABC Real Estate Corp. has been very successful in buying
houses, fixing them up, and reselling them. He put an advertisement in the
local newspaper seeking investors to help him purchase property and pay for
renovations, promising an excellent return on investment when the
properties sold. Do you think that Joe needs a securities broker-dealer
license? correct answersNo
Ellie is very regimented. She likes to be in the office by 8 a.m. and be home
by 5:30
p.m. She likes that same precision in her monthly budget—she wants to
know what's coming in and how much she can expect to put into her IRA.
She is a good candidate for a career in real estate sales. correct
answersFalse
Phil, a real estate licensee, considers going to work for JJ Realty. Broker
Jana James offers him a 60%-40% split on commission. If JJ Realty takes in
$5,000 total commission on Phil's first sale, what is Phil's split? correct
answers$3,000
A real estate licensee is more likely to be an employee of his
broker. correct answersFalse
If a broker supervises the real estate activities of an associated licensee,
that licensee CANNOT be considered an independent contractor. correct
answersFalse
A real estate licensee who is an independent contractor is paid based on
successful real estate transactions, not on hours worked. correct
answersTrue
Generically speaking, a person who, for a fee, sells, lists, leases,
exchanges, negotiates, or otherwise deals in the real estate of others or
represents publicly that they do so. correct answersBroker
A business that serves as an intermediary between buyers and sellers
and/or lessees and lessors of real estate. correct answersBrokerage
Insurance that protects real estate licensees from liability due to mistakes or
negligence. It does not cover claims related to fraud or discrimination. correct
answersErrors and Omissions Insurance (E&O)
Under common law, a person who contracts to do a job for another but
maintains control over how the task will be carried out, rather than
following detailed instructions. correct answersIndependent Contractor
A person licensed under state law to practice real estate. correct
answersLicensee
,Any real estate licensee who is a member of the National Association of
REALTORS® (NAR) and his or her affiliated state/local boards. Only
members may use the term REALTOR® as it's a registered trademark of
NAR. correct answersREALTOR®
Generically speaking, a real estate licensee agent who is associated with a
broker and as such may perform most of the acts a broker can on behalf of
the broker. Also called Sales Associate. correct answersSalesperson
A real estate licensee who is treated as an independent contractor for tax
purposes when specified conditions are met: proper licensing; compensation
based on sales; and services performed under a written contract. correct
answersStatutory Nonemployee
In which field do the majority of new licensees begin their
work? correct answersResidential Sales
Which is NOT an advantage to a career in real estate sales? correct
answersthe option to double commission percentages during slow months
Licensee Louie has worked for Rick, the broker at ABC Realty, for 20 years.
Louie has been accused of negligence for not disclosing a material fact to a
buyer. Which statement is TRUE? correct answersRick can be held liable for
Louie's misconduct.
At the end of the year, what tax form will an independent contractor receive
to document their income? correct answers1099-MISC
Who could a real estate licensee represent in a real estate transaction?
Select all correct responses. correct answersBuyers
Landlord
s Sellers
Tenants
All are
correct
Steven just successfully finished his required real estate prelicensing
course. Which statement is TRUE? correct answersOnce he joins the NAR,
he can call himself a REALTOR®.
In order to be considered an independent contractor, a licensee's
compensation must be correct answersbased on sales produced, not hours
worked.
For a real estate licensee, which is NOT a characteristic that indicates they
are an independent contractor? correct answersThe licensee must be paid
for hours spent in the brokerage office.
What are the tasks for which a property manager is typically
responsible? Select all correct responses. correct answersCollecting
Rents
,Leasing Units
Maintaining Tenant Relationships
Managing the Maintenance and Repair of the Building
All are correct
The theory of supply and demand states that when supply exceeds demand,
prices will fall. correct answersTrue
Real estate cycles tend to lag somewhat behind general business cycles in
response to supply and demand. correct answersTrue
As the supply of homes in the area rises, what would you expect to
happen to home prices in the short term? correct answersHome prices
will fall slightly from their high points.
When Widget moves out, what type of market is Big City likely to
experience? correct answersBuyer's Market
Cost inflation can affect new home prices as builders pass along their
higher costs for labor and materials. correct answersTrue
Higher taxes tend to encourage spending and investing. correct
answersFalse P-E-G-S correct answersPhysical
Economic
Governme
nt Social
A situation in the housing market when there are many homes available
for sale, but few buyers. correct answersBuyer's Market
The interest rate that people or businesses must pay to use another's
money for their own purposes. correct answersCost of Money
The main business or industry in an area that supports and sustains the
community. correct answersEconomic Base
An increase in the cost of goods or services or too many people wanting too
few goods. correct answersInflation
A characteristic of real property; each piece of land, each building, and each
house is a unique piece of real estate. Also called Uniqueness or
Heterogeneity. correct answersNon-Homogeneity
, General swings in real estate activity, resulting in increasing or decreasing
activity and property values, during different phases of the cycle. correct
answersReal Estate Cycles
A physical characteristic of real property that says there is a limited
supply of real estate; the perceived supply of a good or service relative to
the demand for the item. correct answersScarcity
A situation in the housing market when a large number of buyers are looking
for houses in an area of limited availability. correct answersSeller's Market
An economic principle that says that for all products, goods, and services
when supply exceeds demand, prices will fall and when demand exceeds
supply, prices will rise. correct answersSupply and Demand
These associates take and approve loan applications, appraise properties,
assess risk. They can find jobs with savings and loan associations, mutual
savings banks, commercial banks, mortgage companies, endowments, and
government agencies. correct answersReal Estate Finance
People in this field use rigorous appraisal methods to evaluate property
for financial institutions, developers, property managers, or government
agencies. correct answersReal Estate Appraisal
These professionals purchase large tracts of land at a low cost per acre, then
subdivide and improve it with streets, sewers, and utilities so it can be resold
at a higher cost per front foot (for lots) or per square foot (for buildings).
correct answersReal Estate Development
People in this area of real estate build homes on contract or speculation.
They might choose to sell, appraise, manage, or help buyers finance the
property. correct answersReal Estate Property Construction
This is a growing field. More and more brokers, banks, and lawyers are
getting into this service area as profit margins are shrinking elsewhere. Jobs
can include title researcher, escrow agent, and title insurance overseer.
correct answersReal Estate Title Work
There are numerous national, state, and local trade associations that work
to educate, lobby, support members, and manage public relations. correct
answersReal Estate Trade Association Work
Continuing education is part of maintaining a real estate license. Educators
have ample opportunities to teach these courses. correct answersReal
Estate Education.
Joe Alpha of ABC Real Estate Corp. has been very successful in buying
houses, fixing them up, and reselling them. He put an advertisement in the
local newspaper seeking investors to help him purchase property and pay for
renovations, promising an excellent return on investment when the
properties sold. Do you think that Joe needs a securities broker-dealer
license? correct answersNo
Ellie is very regimented. She likes to be in the office by 8 a.m. and be home
by 5:30
p.m. She likes that same precision in her monthly budget—she wants to
know what's coming in and how much she can expect to put into her IRA.
She is a good candidate for a career in real estate sales. correct
answersFalse
Phil, a real estate licensee, considers going to work for JJ Realty. Broker
Jana James offers him a 60%-40% split on commission. If JJ Realty takes in
$5,000 total commission on Phil's first sale, what is Phil's split? correct
answers$3,000
A real estate licensee is more likely to be an employee of his
broker. correct answersFalse
If a broker supervises the real estate activities of an associated licensee,
that licensee CANNOT be considered an independent contractor. correct
answersFalse
A real estate licensee who is an independent contractor is paid based on
successful real estate transactions, not on hours worked. correct
answersTrue
Generically speaking, a person who, for a fee, sells, lists, leases,
exchanges, negotiates, or otherwise deals in the real estate of others or
represents publicly that they do so. correct answersBroker
A business that serves as an intermediary between buyers and sellers
and/or lessees and lessors of real estate. correct answersBrokerage
Insurance that protects real estate licensees from liability due to mistakes or
negligence. It does not cover claims related to fraud or discrimination. correct
answersErrors and Omissions Insurance (E&O)
Under common law, a person who contracts to do a job for another but
maintains control over how the task will be carried out, rather than
following detailed instructions. correct answersIndependent Contractor
A person licensed under state law to practice real estate. correct
answersLicensee
,Any real estate licensee who is a member of the National Association of
REALTORS® (NAR) and his or her affiliated state/local boards. Only
members may use the term REALTOR® as it's a registered trademark of
NAR. correct answersREALTOR®
Generically speaking, a real estate licensee agent who is associated with a
broker and as such may perform most of the acts a broker can on behalf of
the broker. Also called Sales Associate. correct answersSalesperson
A real estate licensee who is treated as an independent contractor for tax
purposes when specified conditions are met: proper licensing; compensation
based on sales; and services performed under a written contract. correct
answersStatutory Nonemployee
In which field do the majority of new licensees begin their
work? correct answersResidential Sales
Which is NOT an advantage to a career in real estate sales? correct
answersthe option to double commission percentages during slow months
Licensee Louie has worked for Rick, the broker at ABC Realty, for 20 years.
Louie has been accused of negligence for not disclosing a material fact to a
buyer. Which statement is TRUE? correct answersRick can be held liable for
Louie's misconduct.
At the end of the year, what tax form will an independent contractor receive
to document their income? correct answers1099-MISC
Who could a real estate licensee represent in a real estate transaction?
Select all correct responses. correct answersBuyers
Landlord
s Sellers
Tenants
All are
correct
Steven just successfully finished his required real estate prelicensing
course. Which statement is TRUE? correct answersOnce he joins the NAR,
he can call himself a REALTOR®.
In order to be considered an independent contractor, a licensee's
compensation must be correct answersbased on sales produced, not hours
worked.
For a real estate licensee, which is NOT a characteristic that indicates they
are an independent contractor? correct answersThe licensee must be paid
for hours spent in the brokerage office.
What are the tasks for which a property manager is typically
responsible? Select all correct responses. correct answersCollecting
Rents
,Leasing Units
Maintaining Tenant Relationships
Managing the Maintenance and Repair of the Building
All are correct
The theory of supply and demand states that when supply exceeds demand,
prices will fall. correct answersTrue
Real estate cycles tend to lag somewhat behind general business cycles in
response to supply and demand. correct answersTrue
As the supply of homes in the area rises, what would you expect to
happen to home prices in the short term? correct answersHome prices
will fall slightly from their high points.
When Widget moves out, what type of market is Big City likely to
experience? correct answersBuyer's Market
Cost inflation can affect new home prices as builders pass along their
higher costs for labor and materials. correct answersTrue
Higher taxes tend to encourage spending and investing. correct
answersFalse P-E-G-S correct answersPhysical
Economic
Governme
nt Social
A situation in the housing market when there are many homes available
for sale, but few buyers. correct answersBuyer's Market
The interest rate that people or businesses must pay to use another's
money for their own purposes. correct answersCost of Money
The main business or industry in an area that supports and sustains the
community. correct answersEconomic Base
An increase in the cost of goods or services or too many people wanting too
few goods. correct answersInflation
A characteristic of real property; each piece of land, each building, and each
house is a unique piece of real estate. Also called Uniqueness or
Heterogeneity. correct answersNon-Homogeneity
, General swings in real estate activity, resulting in increasing or decreasing
activity and property values, during different phases of the cycle. correct
answersReal Estate Cycles
A physical characteristic of real property that says there is a limited
supply of real estate; the perceived supply of a good or service relative to
the demand for the item. correct answersScarcity
A situation in the housing market when a large number of buyers are looking
for houses in an area of limited availability. correct answersSeller's Market
An economic principle that says that for all products, goods, and services
when supply exceeds demand, prices will fall and when demand exceeds
supply, prices will rise. correct answersSupply and Demand
These associates take and approve loan applications, appraise properties,
assess risk. They can find jobs with savings and loan associations, mutual
savings banks, commercial banks, mortgage companies, endowments, and
government agencies. correct answersReal Estate Finance
People in this field use rigorous appraisal methods to evaluate property
for financial institutions, developers, property managers, or government
agencies. correct answersReal Estate Appraisal
These professionals purchase large tracts of land at a low cost per acre, then
subdivide and improve it with streets, sewers, and utilities so it can be resold
at a higher cost per front foot (for lots) or per square foot (for buildings).
correct answersReal Estate Development
People in this area of real estate build homes on contract or speculation.
They might choose to sell, appraise, manage, or help buyers finance the
property. correct answersReal Estate Property Construction
This is a growing field. More and more brokers, banks, and lawyers are
getting into this service area as profit margins are shrinking elsewhere. Jobs
can include title researcher, escrow agent, and title insurance overseer.
correct answersReal Estate Title Work
There are numerous national, state, and local trade associations that work
to educate, lobby, support members, and manage public relations. correct
answersReal Estate Trade Association Work
Continuing education is part of maintaining a real estate license. Educators
have ample opportunities to teach these courses. correct answersReal
Estate Education.
