UNIT 1 BOB HOGUE REAL ESTATE
EXAM QUESTIONS AND ANSWERS
Complex real estate transactions - Correct Answers -Demand the services of licensed
real estate associates, appraisers, attorneys, bankers, title insurance agents, architects,
surveyors, and accountants
Residential real estate v. Commercial real estate - Correct Answers -Residential: often
the greatest source of wealth and savings for individuals
Commercial: addresses the need for retail, office, and manufacturing space
The product that a real estate sales associate must market is _________ ________. -
Correct Answers -Expert Information
The three areas of expertise real estate licensees bring to the transaction relate to
______________, ______________, and ______________ ______________. - Correct
Answers -1. Knowledge of *Property Transfer*
2. Knowledge of *Market Conditions*
3. Knowledge of *How to market real estate and businesses*.
Property Transfer - Correct Answers -transfers of title, property taxes, financing, and
local zoning ordinances.
Business brokers - Correct Answers -Real estate licensees who engage in the sale,
purchase, or lease of businesses.
There is a presumption in Florida law that businesses will have some sort of real
property involved, either land with physical improvements (such as a building) or a long-
term lease. For this reason, - Correct Answers -In Florida, an active current real estate
license is required to sell or lease business opportunities.
In most states, if real property is an asset of the business: - Correct Answers -A real
estate broker's license is required to sell the business.
Marketing Conditions - Correct Answers -Changes in ______________
______________ are due to changes in income tax laws, building moratoriums, and
fluctuations in supply and demand.
, How to market real estate and businesses - Correct Answers -*Sale presentation* that
is *most effective* when working with a physician relocating to a new city may be
completely different from the approach used to assist the owner of an expanding
gourmet coffee bar in choosing an additional location.
Real Estate Brokerage - Correct Answers -business of bringing together buyers &
sellers, owners & renters, & completing real estate transactions.
Five (5) Components of real estate brokerage - Correct Answers -1. sales and leasing,
2. property management, 3. appraising, 4. financing, and 5. counseling.
Sales and Leasing - Correct Answers -The broker act as an agent or an intermediary
between two or more people in the *negotiation* of the *sale, purchase, or rental of real
estate*.
Five (5) major sales specialties - Correct Answers -1. Residential, 2. Commercial, 3.
Industrial, 4. Agricultural and 5. Businesses
1. Residential - Correct Answers -Best access routes and locations of schools, shopping
facilities, and recreation facilities. They must be able to *explain property taxes,
homestead exemptions, restrictive covenants*, and approximate utility costs in the area.
*Restrictive covenants* are binding legal obligations written into the deed of a property
contract, usually by the seller. These covenants can be either simple or complex and
can *levy penalties against buyers who fail to obey them*.
2. Commercial - Correct Answers -Need expertise regarding Income-producing
properties, investment analysis, and the various techniques for increasing after-tax cash
flow.
Examples of income-producing commercial properties: - Correct Answers -Improved
residential property of more than four units, retail stores, office buildings, and shopping
centers.
3. Industrial - Correct Answers -technical knowledge of the needs of different industries,
such as *transportation requirements, industrial construction methods, and local land-
use restrictions* affecting industrial properties.
4. Agricultural - Correct Answers -Must be familiar with operation of farms and the
*economic problems associated* with the various types of farming. Real estate
licensees who specialize in agricultural real estate are knowledgeable about *farm
operations* and the *federal programs* affecting farm operations.
5. Businesses - Correct Answers -Involves the sale or lease of an existing business,
including the sale of tangible and intangible assets.
EXAM QUESTIONS AND ANSWERS
Complex real estate transactions - Correct Answers -Demand the services of licensed
real estate associates, appraisers, attorneys, bankers, title insurance agents, architects,
surveyors, and accountants
Residential real estate v. Commercial real estate - Correct Answers -Residential: often
the greatest source of wealth and savings for individuals
Commercial: addresses the need for retail, office, and manufacturing space
The product that a real estate sales associate must market is _________ ________. -
Correct Answers -Expert Information
The three areas of expertise real estate licensees bring to the transaction relate to
______________, ______________, and ______________ ______________. - Correct
Answers -1. Knowledge of *Property Transfer*
2. Knowledge of *Market Conditions*
3. Knowledge of *How to market real estate and businesses*.
Property Transfer - Correct Answers -transfers of title, property taxes, financing, and
local zoning ordinances.
Business brokers - Correct Answers -Real estate licensees who engage in the sale,
purchase, or lease of businesses.
There is a presumption in Florida law that businesses will have some sort of real
property involved, either land with physical improvements (such as a building) or a long-
term lease. For this reason, - Correct Answers -In Florida, an active current real estate
license is required to sell or lease business opportunities.
In most states, if real property is an asset of the business: - Correct Answers -A real
estate broker's license is required to sell the business.
Marketing Conditions - Correct Answers -Changes in ______________
______________ are due to changes in income tax laws, building moratoriums, and
fluctuations in supply and demand.
, How to market real estate and businesses - Correct Answers -*Sale presentation* that
is *most effective* when working with a physician relocating to a new city may be
completely different from the approach used to assist the owner of an expanding
gourmet coffee bar in choosing an additional location.
Real Estate Brokerage - Correct Answers -business of bringing together buyers &
sellers, owners & renters, & completing real estate transactions.
Five (5) Components of real estate brokerage - Correct Answers -1. sales and leasing,
2. property management, 3. appraising, 4. financing, and 5. counseling.
Sales and Leasing - Correct Answers -The broker act as an agent or an intermediary
between two or more people in the *negotiation* of the *sale, purchase, or rental of real
estate*.
Five (5) major sales specialties - Correct Answers -1. Residential, 2. Commercial, 3.
Industrial, 4. Agricultural and 5. Businesses
1. Residential - Correct Answers -Best access routes and locations of schools, shopping
facilities, and recreation facilities. They must be able to *explain property taxes,
homestead exemptions, restrictive covenants*, and approximate utility costs in the area.
*Restrictive covenants* are binding legal obligations written into the deed of a property
contract, usually by the seller. These covenants can be either simple or complex and
can *levy penalties against buyers who fail to obey them*.
2. Commercial - Correct Answers -Need expertise regarding Income-producing
properties, investment analysis, and the various techniques for increasing after-tax cash
flow.
Examples of income-producing commercial properties: - Correct Answers -Improved
residential property of more than four units, retail stores, office buildings, and shopping
centers.
3. Industrial - Correct Answers -technical knowledge of the needs of different industries,
such as *transportation requirements, industrial construction methods, and local land-
use restrictions* affecting industrial properties.
4. Agricultural - Correct Answers -Must be familiar with operation of farms and the
*economic problems associated* with the various types of farming. Real estate
licensees who specialize in agricultural real estate are knowledgeable about *farm
operations* and the *federal programs* affecting farm operations.
5. Businesses - Correct Answers -Involves the sale or lease of an existing business,
including the sale of tangible and intangible assets.
