COLIBRI UNIT 1 TEST QUESTIONS AND
ANSWERS
Identify four industries indirectly dependent upon real estate activities. -
Responders Builders, building suppliers, carpet manufacturers, appliance sales
Identify five industries dependent on real estate activity. - Responders Loan
originatorsAppraisersPlumbersAuctioneersLandscape suppliers
Identify three ways that the state government is involved in real estate. -
Responders Licensing for real estate professionalsRecording of deeds, transfers
of propertyEstate taxes
Define real estate brokerage and give three entities that cannot be registered as a
real estate brokerage.
- ANSWER An association that brings interested parties together to sell, lease,
and rent or exchange real property.
A joint venture temporary relationship
A business trust investment group for its own purposes
A homeowners association
List five activities for which a real estate broker would receive or expect to
receive compensation. - ANSWER Selling real estate
Negotiating the sale of real estate
Dealing in options on real estate
Supervising the collection of rent for the use of real estate
Procuring of leads intended to result in the sale of real estate
What is real estate farming? - ANSWER Specializing in one specific
geographic area or type of property.
, How is a property manager described? - ANSWER A property manager is
someone who preserves the worth of an investment (belonging to an owner) and
gets income as the agent for the owner.
Name five professional organizations for real estate practitioners. - ANSWER
National Association of REALTORS®
Indiana Association of REALTORS®
Indiana Commercial Board of REALTORS®
Women's Council of REALTORS®
Real Estate Buyers Council
Why should real estate professionals be licensed? - ANSWER To safeguard the
public
Provide two examples of how a broker could commit fraud in a real estate
transaction. - ANSWER Overstating the benefit of a property's value
Leaving out information about material facts
What is the Statute of Frauds' major requirement - ANSWER That all contracts
must be in writing in order to be enforceable.
What is the rule that brokers must employ to ensure that they are being moral? -
ANSWER Do unto others as you would have them do unto you.
Mention four reasons why an appraisal is completed. - ANSWER To secure a
property loan
To secure the insurance value
To secure a divorce settlement
To determine capital gain
Name five fund sources for real estate buyers. - ANSWER Banks, savings and
loans, credit unions, insurance companies, property sellers, mortgage bankers,
and mortgage brokers
ANSWERS
Identify four industries indirectly dependent upon real estate activities. -
Responders Builders, building suppliers, carpet manufacturers, appliance sales
Identify five industries dependent on real estate activity. - Responders Loan
originatorsAppraisersPlumbersAuctioneersLandscape suppliers
Identify three ways that the state government is involved in real estate. -
Responders Licensing for real estate professionalsRecording of deeds, transfers
of propertyEstate taxes
Define real estate brokerage and give three entities that cannot be registered as a
real estate brokerage.
- ANSWER An association that brings interested parties together to sell, lease,
and rent or exchange real property.
A joint venture temporary relationship
A business trust investment group for its own purposes
A homeowners association
List five activities for which a real estate broker would receive or expect to
receive compensation. - ANSWER Selling real estate
Negotiating the sale of real estate
Dealing in options on real estate
Supervising the collection of rent for the use of real estate
Procuring of leads intended to result in the sale of real estate
What is real estate farming? - ANSWER Specializing in one specific
geographic area or type of property.
, How is a property manager described? - ANSWER A property manager is
someone who preserves the worth of an investment (belonging to an owner) and
gets income as the agent for the owner.
Name five professional organizations for real estate practitioners. - ANSWER
National Association of REALTORS®
Indiana Association of REALTORS®
Indiana Commercial Board of REALTORS®
Women's Council of REALTORS®
Real Estate Buyers Council
Why should real estate professionals be licensed? - ANSWER To safeguard the
public
Provide two examples of how a broker could commit fraud in a real estate
transaction. - ANSWER Overstating the benefit of a property's value
Leaving out information about material facts
What is the Statute of Frauds' major requirement - ANSWER That all contracts
must be in writing in order to be enforceable.
What is the rule that brokers must employ to ensure that they are being moral? -
ANSWER Do unto others as you would have them do unto you.
Mention four reasons why an appraisal is completed. - ANSWER To secure a
property loan
To secure the insurance value
To secure a divorce settlement
To determine capital gain
Name five fund sources for real estate buyers. - ANSWER Banks, savings and
loans, credit unions, insurance companies, property sellers, mortgage bankers,
and mortgage brokers
