Deck 1: Introduction to the Real Estate Business

Question 1

The real estate industry has an enormous impact on the overall economy?

Answer 1

True

Question 2

A "normal" market is one in which neither the seller nor the buyer has the advantage.

Answer 2

True

Question 3

Real estate accounts for what percentage of wealth in the United States?

A) 20%
B) 25%
C) 45%
D) 75%

Answer 3

45%

Question 4

Real estate is defined as:

A) land itself.
B) land and what is affixed to it.
C) personal property.
D) houses and buildings, independent of the land to which they are affixed.

Question 5

Real estate brokers are licensed by individual states to provide which of the following services?

A) Helping the seller arrive at a realistic sales/lease price
B) Assisting in the negotiations between seller and buyer
C) Marketing property
D) All of above

Question 6

A loan originator:

A) explains the loan, assists the borrower in filling out forms, and collects necessary documentation.
B) makes sure that the loan package is filled out correctly and that all necessary documents are included.
C) reviews the information in the loan package and determines whether the loan will be granted.
D) closes the loan and files the necessary documents.

Question 7

Why is home inspection crucial when buying a home?

A) Lenders will not loan money if there are too many problems with a property.
B) It gives the buyer a realistic picture of the nature of his or her purchase.
C) It gives the seller a layer of protection from unhappy buyers.
D) All of the above

Question 8

Which of the following is true with regard to real estate attorneys?

A) They must always be involved in real estate closings.
B) They must be involved in transactions over $500,000.
C) They must be involved in all commercial leasing.
D) None of the above

Question 9

Appraisers provide which of the following services?

A) They formulate the exact worth of a piece of property.
B) They give their opinions about the value of a piece of property.
C) They advise buyers as to whether they are getting a good deal.
D) They advise sellers as to the exact selling price they will be able to receive.

Question 10

Realtor is a copyrighted name that is used by which organization?

A) National Association of Real Estate Brokers
B) National Association of Real Estate Professionals
C) National Association of Realtors
D) National Association of Real Estate Advisors

Question 11

Why is it important to distinguish between real property and personal property?

A) laws treat each type of property very differently
B) it really isn't that important to know the difference
C) conveyances of both types have to be filed in the county courthouse
D) personal property is always more valuable

Question 12

The set of laws that govern the conveyance of personal property are called the:

A) Property Code.
B) Uniform Commercial Code.
C) Code of Personal Property.
D) Insurance Code.

Question 13

The Statute of Frauds applies to the transfer of an interest in real property and states that:

A) the Uniform Commercial Code must be followed.
B) all transactions involving real estate must be recorded.
C) all transactions involving the transfer of an interest in real property must be in writing to be enforceable.
D) the Deceptive Trade Practices Act does not apply to real estate transactions.

Question 14

Normally, fixtures that tenants install become property of the landlord. Exceptions to this general rule include:

A) trade fixtures placed in commercial spaces.
B) fixtures that can be easily removed.
C) fixtures that cost more than $1,000.
D) fixtures installed without the landlord's approval.

Question 15

Real estate commissions are:

A) uniform throughout the United States.
B) set by state law.
C) set by federal law.
D) are negotiated between the parties.

Question 16

Name and briefly describe four of the professions within the real estate market.

Question 17

Correlate seller's markets and buyer's markets with the boom and bust of the real estate market.

Question 18

Discuss how personal property becomes a fixture.

Question 19

What is the difference between abstract of title and title insurance?

Question 20

Real estate can be classified by use. Name three of the use classifications besides residential.

Question 21

Explain how the real estate market and the business cycle are connected. Include how they interact to bring the economy up or down, and use statistics from the chapter to illustrate your argument.

Question 22

Discuss the six basic factors that determine the value of real property.