Q&A Hero

Q: A designation awarded for completion of real estate courses sponsored by Boards of REALTORS is the GRI or Graduate of the REALTORS ____________________.

Q: Interpretations of various articles of the REALTORS Code of Ethics is known as the ____________________ of Practice.

Q: To temporarily make ineffective is to ____________________.

Q: To recall and make void is to ____________________.

Q: A ____________________ license is required of a real estate broker in order to conduct negotiations within another state.

Q: The broker in charge of an office is called the ____________________ broker.

Q: A real estate ____________________ is a state board that advises and sets policies regarding real estate licensees and transaction procedures.

Q: The party holding a franchise such as a franchised brokerage office is called a ____________________.

Q: A(n) ____________________ contractor is one who contracts to do work according to their own methods and is responsible to his employer only for the results of that work.

Q: A ____________________ is a person or legal entity license to act independently in conducting a real estate brokerage business.

Q: The GRI designation is offered by the state real estate commissions.

Q: When the property being sold is an investment contract in real estate rather than real estate itself, the broker may be required to have a securities license in addition to a real estate license.

Q: A recovery fund is a state-operated fund that can be tapped to pay real estate brokers who have claims against other brokers.

Q: Property owners who want to sell their home are interested in how much it will cost to sell it.

Q: A license may be revoked upon proof of violation of fair housing laws.

Q: Executors of estates are specifically exempt from holding a real estate license.

Q: Any person who earns a real estate commission and is not licensed is guilty of breaking the law.

Q: The term REALTOR applies to any licensed real estate salesperson.

Q: Real estate salespeople may reasonably be expected to work for a salary.

Q: In most states, members of the real estate commission are full-time employees appointed by the governor.

Q: In most states, a branch office maintained by a licensed brokerage firm must secure a branch office license in the firm's name.

Q: For a corporation to be granted a license as a real estate broker, all officers must be licensed as real estate brokers.

Q: Real estate brokers may operate a business as a sole proprietorship under their own name only.

Q: Brokers who wish to operate outside their home state will usually be required to file a notice of consent with the secretary of state in each state in which they wish to operate.

Q: Typically there is no specific educational requirement for obtaining a salesperson license.

Q: Continuing education requirements exist for the purpose of requiring licensees to stay up-to-date in their field.

Q: The ultimate responsibility for a mistake in a document prepared by a real estate salesperson rests equally upon the salesperson and the employing broker.

Q: A duly qualified person who has passed the real estate license exam and joined a brokerage firm is most properly referred to as a licensee.

Q: The sales associate, affiliated with a broker, who brings about a sale is paid by the title company.

Q: A listing is a contract between a property owner and the salesperson taking the listing.

Q: A real estate listing is a contract between a. the owner and the listing broker. b. the owner, the broker, and the listing salesperson. c. the owner and the listing salesperson. d. the broker and the listing salesperson.

Q: Which of the following is NOT a real estate license category? a. Salesperson b. Broker c. Attorney-in-fact d. Both a and c

Q: Which of the following could be licensed as a real estate broker? a. A corporation b. A partnership c. An actual person d. Any of the above

Q: A person who sells real estate for others a. must be licensed in order to collect compensation. b. need not be licensed if no compensation is involved. c. both a and b. d. neither a nor b.

Q: Which of the following may conduct a real estate brokerage business without a proper license? a. Members of the state bar b. Attorneys-in-fact c. Both a and b d. Neither a nor b

Q: Which of the following is a copyrighted term owned by NAR? a. Realty b. Realtist c. REALTOR d. Narob

Q: When a broker fell on hard times, he stopped paying his dues to NAR for two years. He still uses the REALTOR designation in his advertising and on his business cards. Which of the following is true? a. NAR can do nothing b. The broker can be sued by NAR c. The broker can be disciplined by the Real Estate Commission d. The broker is a member for life, so he is free to use the REALTOR designation

Q: Pat has a license and contractual rights to sell real estate in a typical state. This licensee may be presumed to be all of the following EXCEPT a. an agent or subagent. b. a licensee. c. a broker or salesperson. d. a REALTOR.

Q: The term "REALTOR" is synonymous with a. real estate broker. b. real estate license. c. a member of NAR. d. a real estate company.

Q: The National Association of REALTORS has sponsored many groups to further enhance the industry; they include all of the following EXCEPT a. Society of Industrial REALTORS. b. Farm and Land Institute. c. Society of Real Estate Appraisers. d. Institute of Real Estate Management.

Q: When a broker joins a franchise organization, the financial arrangements usually include a. a salary paid to the broker. b. a percentage of income paid to the franchiser. c. free jackets to the sales associates. d. salary to the agents.

Q: A typical broker-salesperson employment contract should include all of the following EXCEPT a. sales commission splits and earned bonuses. b. services to be supplied by the broker. c. tax withholding requirements. d. employment status.

Q: A residential real estatesalesperson can usually expect from his or her principal broker all of the following EXCEPT a. supervision, training and advice. b. signs, advertising, office space and supplies. c. payment of dues to the local REALTORS Association. d. access to multiple listing services.

Q: A state-run program where real estate license fees are used, in part, to pay uncollected judgements against licensees is a a. bonding program. b. recovery fund. c. multiple listing service. d. equalization fund.

Q: A real estate broker's or salesperson's license would most likely be revoked for a. failure to pay REALTORS dues. b. misrepresentations. c. failure to practice real estate. d. failing to split a commission with an unlicensed individual.

Q: Real estate commissions typically do all of the following EXCEPT a. review license exam answers. b. hold hearings in response to complaints of improper actions of licensees. c. enact new real estate legislation or amend existing legislation. d. determine the number and location of exam testing sites.

Q: Real estate commissions or departments act to protect the public by regulation and education. The following would be the usual activity of these organizations EXCEPT a. requiring a specific number of answers on a real estate license exam. b. requiring all licensees to be reexamined every two years. c. holding public hearings in response to complaints of improper actions of licensees. d. requiring a licensee to post a bond or contribute to a recovery fund.

Q: Which of the following is responsible for processing license applications, issuing real estate licenses, and collecting license fees? a. State legislature b. Federal Department of Real Estate Licenses c. Attorney General d. State Real Estate Commission or Department

Q: When moving to a new state, a licensed real estate agent in one state can presume his license status in the former state will be given credit in his new state of residence a. always. b. sometimes. c. never. d. when moving to Texas only.

Q: Over time, states have established licensing requirements dealing with all EXCEPT a. minimum age. b. education. c. residency. d. Intelligence Quotient (IQ).

Q: A real estate broker differs from a real estate salesperson under the law in that the a. broker is liable for the acts of the salesperson. b. salesperson may take a listing with him when he changes brokers. c. law recognizes no differences. d. salesperson is responsible for the acts of the broker.

Q: Since real estate agents will be handling other people's money, some states will examine licensee's a. bank account. b. credit history. c. age. d. financial statement.

Q: In most states, a person is exempt from licensure as a real estate agent when performing which of the following activities, even if receiving a fee? a. Renting resort condominiums for the owner as a commissioned rental agent b. Negotiating an exchange of properties where no cash changes hands c. Selling real property as an executor of an estate d. Dealing in land options

Q: Who can sell real property WITHOUT a license? a. Anyone, as long as they only sell one property per year b. An attorney, acting within his duties as an attorney c. Anyone, as long as they do not sell more than $100,000 worth of property in any one year d. A judge who is helping out a friend

Q: A nonexempt person who sells real estate for others a. must always be licensed. b. need not be licensed if there is no listing agreement.. c. must be a licensed broker. d. can sell real estate to people in other states.

Q: In which states are licensing examinations required for a real estate license? a. Only the western states b. All but the New England states c. All but Texas, Hawaii and Alaska d. Every state

Q: In the following examples, who needs a real estate license? a. Trustees selling foreclosed property for a lender b. Government employees finding tenants for government properties c. An attorney at law selling his clients property to settle an estate d. A nonexempt person dealing in real property for others for compensation

Q: Who, of the following would be required to have a real estate license? a. A secretary who answers the phone in a real estate office b. An attorney who specializes in real estate law c. An escrow officer d. A person who solicits buyers and sellers for a broker

Q: The basic intent for real estate license laws and regulations was to a. help brokers settle their disputes. b. protect the public. c. protect the broker d. control the real estate market.

Q: The first state to legislate licensing requirements for real estate agents was a. Texas. b. Rhode Island. c. California. d. New York.

Q: ____________________ obsolescence is he loss of value due to external forces or events.

Q: ____________________ cost is the cost at today's prices of constructing an exact replica of the subject improvements using the same or very similar materials.

Q: A popular market comparison method that is used when a property produces income is the gross rent ____________________, or GRM.

Q: ____________________ are made for price changes since each comparable was sold, as well as for differences in physical features, amenities, and financial terms.

Q: In the market approach, houses with similar physical features and amenities that have sold recently under market value conditions are called ____________________.

Q: The property to be appraised is known as the ____________________ property.

Q: A market where there is an excess of supply over demand is known as a ____________________ market.

Q: The process of combining two or more parcels of land into one larger parcel is called ____________________.

Q: The principle that holds that maximum value realized when a reasonable degree of homogeneity is present in a neighborhood is known as the principle of ____________________.

Q: The relationship between added cost and the value it returns is known as the principle of ____________________.

Q: From the viewpoint of a qualified appraiser, the value of the subject property is most affected by its highest and best use.

Q: The operating expense ratio of a building is determined by dividing the total operating expenses by the effective gross income.

Q: The rents that a property can be expected to produce on an annual basis may be referred to as the projected gross income.

Q: The conversion of future income into present value is known as hypothecation.

Q: Functional obsolescence results from factors outside the property.

Q: In appraising an historically significant Victorian era residence using the cost approach, the will probably appraise it on the basis of its reproduction cost.

Q: The appraisal method most likely to provide only a rough estimate of the value of a rental property is the cost approach.

Q: Seller motivation is considered most in the income approach.

Q: The Society of Real Estate Appraisers offers the CREI designation.

Q: The owner of a beautiful old house was told that because of the location of the property, bordered by two very busy streets, that it would have more value if the house was torn down and the empty lot put on the market. This is an example of highest and best use.