Lesson 1 Quiz – The Real Estate Business

What is the purpose of the 60-hour pre-license course in Alabama?

To prepare applicants for license renewal

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To allow agents to appraise property

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To meet educational requirements for licensure

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To exempt licensees from continuing education

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Which specialization involves overseeing day-to-day rental property operations?

Investor

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Broker

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Appraiser

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Property Manager

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Which of the following is an example of a career in real estate that does NOT require client representation?

Sales agent

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Property manager

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Appraiser

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Broker

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What happens if a licensee in Alabama fails to complete post-license education?

They are fined $500

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Their temporary license expires

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They are issued a warning

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They must retake the exam

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Which organization is responsible for issuing real estate licenses in Alabama?

HUD

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National Association of REALTORS®

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Alabama Real Estate Commission

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AREAA

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Which type of property is typically purchased for income generation?

Residential

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Commercial

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Special-purpose

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Undeveloped land

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What is the term for property used for government or religious purposes?

Residential

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Agricultural

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Commercial

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Special-purpose

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Which real estate professional is required to maintain neutrality and provide objective property value?

Broker

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Property manager

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Appraiser

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Investor

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What is the primary responsibility of a real estate broker?

Appraising property

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Supervising agents and overseeing transactions

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Managing tenant relations

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Issuing property titles

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Which of the following is considered personal property?

A built-in bookcase

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A ceiling fan attached to the home

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A freestanding refrigerator

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A permanently installed patio

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Creating improved real property from raw land involves

financing, construction contracting, and regulatory approvals

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property managers, rental agreements, and asset managers

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property portfolios, architects, and zoning regulations

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real estate licensees, regulators, and state laws

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The experts who manage the legal aspects of a development project are the

real estate licensees

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attorneys

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escrow companies

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assessors

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Which one of the following do asset managers oversee?

Groups of properties

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Groups of investors

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Tenants

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Landlords

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Which of the following statements describes the role of an asset manager?

The asset manager’s role is to achieve the investment objectives of the owners

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The asset manager’s role is to manages the day-to-day operations

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The asset manager’s role is to maintain the property’s condition

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The asset manager’s role is to file the investor’s tax return

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Special purpose properties may include

residential dwellings

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condominium units

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cooperative buildings

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recreational facilities

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The real estate industry is regulated by which of the following?

Federal laws only

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State laws only

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Local municipalities

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Every level of government

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State license laws are administered in each state by

Real Estate Commissions

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police powers

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labor associations

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brokerages

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A Realtor® must maintain membership in which of the following trade organization?

NAHB

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NAR

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NAREB

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IREM

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A licensee’s choice of specialization is most likely influenced by

zoning restrictions

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competitive factors in the market

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governmental restrictions

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trade organizations and designations

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Which of the following are generally considered to be the key parties involved in the improvement of land?

Developer, landowner, and mortgage lender

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Retailers, attorneys, and subcontractors

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Market analysts, real estate licensees, and buyers

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Farmers, shareholders, and emblements

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Which of the following statements is true regarding investment properties?

Residential properties are not considered investment properties

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Only commercial properties are considered to be investment properties

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All classifications of property may be investment properties

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Only properties that produce a positive cash flow are considered to be investment properties

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Which of the following statements is true regarding individual specialization in real estate?

One’s choice of specialization is influenced by competitive factors in the market and by perceived opportunities

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Specialization in certain areas of real estate requires mandatory membership in the appropriate organization

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One’s choice of specialization is regulated by the National Association of Realtors®.

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Specialization in commercial transactions requires special certification in addition to licensure

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The principal types of transactions are in real estate brokerage are sales, leases and subleases, exchanges, and

wills

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trades

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management

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options

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Which of the following statements is true regarding the National Association of Realtors’® Code of Ethics?

The Code of Ethics is regulated by state laws

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The Code of Ethics sets an even higher standard of performance for its members

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The Code of Ethics must be adhered to by all licensees regardless of membership

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The Code of Ethics does not apply to real estate licensees

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The primary body of laws and regulations governing real estate brokerage practice is

state real estate license laws

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federal real estate license laws

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zoning regulations

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local municipalities

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