Real Estate Practice
1. Brokerage definition...—ANSWER--the business practice of bringing
together the parties in a practice.
2. What are two examples of special use property?—ANSWER--schools
and cemetary
3. What is an example of functional obsolescence?—ANSWER--bathroom
4. Principal definition...—ANSWER--a consumer of real estate services who
has entered into an agency relationship with a broker or another licensee
employed by a broker.
5. Capitalization definition...—ANSWER--the process of determining the
present value of a property from it's future income.
6. What is the salespersons obligation to a buyer under single agency
listing?—ANSWER--Inform the buyer
8. All are examples of real estate except...—ANSWER--factories
, 9. What is homeowners insurance?—ANSWER--Insurance to protect
owners from fires and other etc.
10. Special agent definition...—ANSWER--the type of agency in which the
principal authorizes the agent to represent the agent in "one specific
transaction or business activity"
11. Which is not used to determine cost approach to estimate value?
-Quantity Survey Method
-Unit-in-Place Method
-Square Foot Method
-Gross Rent Multiplier Method—ANSWER--Gross Rent Multiplier Method
What is steering?—ANSWER--the unlawful act of keeping a buyer away
from certain communities or guiding them to purchase in certain
communities.
15. Entitlement to commission when transaction is not consummated.—
ANSWER--Except when listing broker does not disclose information
16. Can a salesperson give legal advice?—ANSWER--No, not unless they
are an attorney.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
1. Brokerage definition...—ANSWER--the business practice of bringing
together the parties in a practice.
2. What are two examples of special use property?—ANSWER--schools
and cemetary
3. What is an example of functional obsolescence?—ANSWER--bathroom
4. Principal definition...—ANSWER--a consumer of real estate services who
has entered into an agency relationship with a broker or another licensee
employed by a broker.
5. Capitalization definition...—ANSWER--the process of determining the
present value of a property from it's future income.
6. What is the salespersons obligation to a buyer under single agency
listing?—ANSWER--Inform the buyer
8. All are examples of real estate except...—ANSWER--factories
, 9. What is homeowners insurance?—ANSWER--Insurance to protect
owners from fires and other etc.
10. Special agent definition...—ANSWER--the type of agency in which the
principal authorizes the agent to represent the agent in "one specific
transaction or business activity"
11. Which is not used to determine cost approach to estimate value?
-Quantity Survey Method
-Unit-in-Place Method
-Square Foot Method
-Gross Rent Multiplier Method—ANSWER--Gross Rent Multiplier Method
What is steering?—ANSWER--the unlawful act of keeping a buyer away
from certain communities or guiding them to purchase in certain
communities.
15. Entitlement to commission when transaction is not consummated.—
ANSWER--Except when listing broker does not disclose information
16. Can a salesperson give legal advice?—ANSWER--No, not unless they
are an attorney.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
