Real Estate
Exam
,CH1 - Farming - CORRECT ANSWERS-Licensees concentrate on one type or style of
property or on one particular neighborhood.
Farm Area or Target Market - CORRECT ANSWERS-Finding and specializing in a
particular neighborhood or type of property.
Property Transfer - CORRECT ANSWERS-Includes deeds, mortgages, surveys,
appraisals, contracts, title insurance, floodplains, zoning, buildings codes, finance.
Comparative Market Analysis (CMA) - CORRECT ANSWERS-A value estimate based
on recent sales of similar properties in the same neighborhood
Broker Price Opinion (BPO) - CORRECT ANSWERS-Determine selling price of
property. Licensee takes photos and completes BPO report form provided by the lender
comparing local and regional market information.
Difference between CMA, BPO AND Appraisals - CORRECT ANSWERS-- CMA
conducted by real estate agent while Appraisals conducted by licensed appraiser on
behalf of banks
- BPOs are less thorough than appraisals but more analysis than a basic CMA.
Multiple Listing Service (MLS) - CORRECT ANSWERS-System that provides an
extensive marketing tool for real estate licensees. Local and state level.
Residential Transaction - CORRECT ANSWERS-- The sale of improved residential
property of four units or fewer
- The sale of unimproved residential property intended for use of four units or fewer
- The sale of agricultural property of 10 acres or fewer.
Other types of sales - CORRECT ANSWERS-- Commercial Sales/Leasing: Analyzing
past and future potential income derived from investment propert, including apartment
buildings, office, shopping centers. Law knowledge for brokers.
- Industrial: warehouses and manufacturing facilities. User owners rather than investors.
Knowledge in gov. regulartions of land, environment, transportation, etc.
- Agricultural: Large tracts of land and money. Study of profitability.
- Business: Listing and sales of businesses, known as business opportunities.
Knowledge in financial and balance statements.
- Property Management: Owners who buy income property as investments and depend
on professionals to manage them, called absentee owners. Compensation based on a
percentage of the rents collected from tenants. Deal w/locating tenants, rents, payment
of taxes, insurance and maintenance.
, - Counseling: Analyzing existing or potential projects and providing expert advice to
members of the public based on their personal judgement.
Going Concern Value - CORRECT ANSWERS-Value of a business, includes tangible
and intangible income/assets, goodwill.
Appraising - CORRECT ANSWERS-Process of developing an opinion of value of real
property, where independent, impartial and objective analysis is made. Fees based on
time and effort.
- Needed to determine whether the value of property being used as collateral for a loan
is adequate.
- Title XI of FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act of
1989) needed rules under USPAP (Uniform Standards of Professional Appraisal
Practice).
Financing - CORRECT ANSWERS-Mortgage lenders lend money to fund loans that are
secured by interests in real estate. Mortgage originators need separate license provided
by Florida Department of Financial Services (FDFS).
Flood Hazard Areas - CORRECT ANSWERS-areas bordering on rivers and streams
which are subject to federal regulations concerning improvements and construction in
those areas; required to have flood insurance if federally related mortgage.
Three general phases of development and construction - CORRECT ANSWERS-- Land
Acquisition
- Subdividing and Development
- Recording of the subdivision plat map (once approved by the city or county)
Dedication - CORRECT ANSWERS-Once subdivision construction is complete, a
transfer of ownership of streets and sidewalks is typically conveyed by a developer to
the city or county.
Types of Building - CORRECT ANSWERS-- Custom Building: buyer's specifications
- Speculative Building: for the hope for someone liking it
- Tract Building: Model Center
National Association of REALTORS (NAR) - CORRECT ANSWERS-Nation's largest
trade and professional association with the goal of preserving the right of individuals to
own real property through an exchange of information.
Government Regulation - CORRECT ANSWERS-- Local Level: planning and zoning
(possible locations), property taxation, building and health code regulations. Impose
moratoriums or temp delays due to environmental concerns.
Exam
,CH1 - Farming - CORRECT ANSWERS-Licensees concentrate on one type or style of
property or on one particular neighborhood.
Farm Area or Target Market - CORRECT ANSWERS-Finding and specializing in a
particular neighborhood or type of property.
Property Transfer - CORRECT ANSWERS-Includes deeds, mortgages, surveys,
appraisals, contracts, title insurance, floodplains, zoning, buildings codes, finance.
Comparative Market Analysis (CMA) - CORRECT ANSWERS-A value estimate based
on recent sales of similar properties in the same neighborhood
Broker Price Opinion (BPO) - CORRECT ANSWERS-Determine selling price of
property. Licensee takes photos and completes BPO report form provided by the lender
comparing local and regional market information.
Difference between CMA, BPO AND Appraisals - CORRECT ANSWERS-- CMA
conducted by real estate agent while Appraisals conducted by licensed appraiser on
behalf of banks
- BPOs are less thorough than appraisals but more analysis than a basic CMA.
Multiple Listing Service (MLS) - CORRECT ANSWERS-System that provides an
extensive marketing tool for real estate licensees. Local and state level.
Residential Transaction - CORRECT ANSWERS-- The sale of improved residential
property of four units or fewer
- The sale of unimproved residential property intended for use of four units or fewer
- The sale of agricultural property of 10 acres or fewer.
Other types of sales - CORRECT ANSWERS-- Commercial Sales/Leasing: Analyzing
past and future potential income derived from investment propert, including apartment
buildings, office, shopping centers. Law knowledge for brokers.
- Industrial: warehouses and manufacturing facilities. User owners rather than investors.
Knowledge in gov. regulartions of land, environment, transportation, etc.
- Agricultural: Large tracts of land and money. Study of profitability.
- Business: Listing and sales of businesses, known as business opportunities.
Knowledge in financial and balance statements.
- Property Management: Owners who buy income property as investments and depend
on professionals to manage them, called absentee owners. Compensation based on a
percentage of the rents collected from tenants. Deal w/locating tenants, rents, payment
of taxes, insurance and maintenance.
, - Counseling: Analyzing existing or potential projects and providing expert advice to
members of the public based on their personal judgement.
Going Concern Value - CORRECT ANSWERS-Value of a business, includes tangible
and intangible income/assets, goodwill.
Appraising - CORRECT ANSWERS-Process of developing an opinion of value of real
property, where independent, impartial and objective analysis is made. Fees based on
time and effort.
- Needed to determine whether the value of property being used as collateral for a loan
is adequate.
- Title XI of FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act of
1989) needed rules under USPAP (Uniform Standards of Professional Appraisal
Practice).
Financing - CORRECT ANSWERS-Mortgage lenders lend money to fund loans that are
secured by interests in real estate. Mortgage originators need separate license provided
by Florida Department of Financial Services (FDFS).
Flood Hazard Areas - CORRECT ANSWERS-areas bordering on rivers and streams
which are subject to federal regulations concerning improvements and construction in
those areas; required to have flood insurance if federally related mortgage.
Three general phases of development and construction - CORRECT ANSWERS-- Land
Acquisition
- Subdividing and Development
- Recording of the subdivision plat map (once approved by the city or county)
Dedication - CORRECT ANSWERS-Once subdivision construction is complete, a
transfer of ownership of streets and sidewalks is typically conveyed by a developer to
the city or county.
Types of Building - CORRECT ANSWERS-- Custom Building: buyer's specifications
- Speculative Building: for the hope for someone liking it
- Tract Building: Model Center
National Association of REALTORS (NAR) - CORRECT ANSWERS-Nation's largest
trade and professional association with the goal of preserving the right of individuals to
own real property through an exchange of information.
Government Regulation - CORRECT ANSWERS-- Local Level: planning and zoning
(possible locations), property taxation, building and health code regulations. Impose
moratoriums or temp delays due to environmental concerns.
