PRINCIPLES OF REAL ESTATE 1
CERTIFICATION EVALUATION ACCURATE
QUESTIONS GRADED A+
●● Real Estate Broker.
Answer: A person or an organization acting as the agent for others in
negotiating the purchase and sale of real property or other commodities
for a fee.
●● Real Estate Salesperson.
Answer: A person performing any of the acts included in the definition
of real estate broker but while associated with and supervised by a
broker.
●● Residential Property.
Answer: A type of property that includes one to four dwelling units.
●● Commercial Property.
Answer: Property that produces rental income or that is used in business.
Properties with five or more dwelling units are considered commercial
property.
●● Industrial Property.
,Answer: Property that is used by companies or persons for
manufacturing, warehousing, or the assemblage of components.
●● Special Purpose Property.
Answer: A category of real property created as a result of combining the
land and its improvements for a single highest and best use.
●● Mixed-Use Property.
Answer: Any urban, suburban or village development, or even a single
building, that blends a combination of residential, commercial, cultural,
institutional, or industrial uses, where those functions are physically and
functionally integrated, and that provides pedestrian connections.
●● Improvements.
Answer: Changes or additions made to a property, such as walls and
roads. These typically increase the value of a property, except in some
cases of over improvement.
●● Non-Homogeneity.
Answer: A physical characteristic of land describing that land as a
unique commodity.
●● Value.
Answer: The present worth of future benefits.
,●● Price.
Answer: The amount a purchaser agrees to pay and a seller agrees to
accept under the circumstances surrounding a transaction.
●● Cost.
Answer: The total dollar expenditure for labor, materials, and other
items related to construction.
●● Supply.
Answer: The amount of goods offered for sale within a given market at a
given price during a given time period.
●● Demand.
Answer: The amount of goods consumers are willing and able to buy at
any given price during any given time period.
●● Demography.
Answer: The study of the social and economic statistics of a community.
●● Agent.
Answer: A person authorized to act on behalf of another.
, ●● Principal.
Answer: The employer of an agent.
●● Customer.
Answer: The party the agent brings to the principal as seller or buyer of
the property.
●● General Agent.
Answer: An agent with full authority over one property of the principal,
such as a property manager.
●● Special Agent.
Answer: An agent with limited authority to act on behalf of the principal,
such as created by a listing.
●● Listing Contract.
Answer: A contract in which a property owner employs a real estate
broker to market the property described in the contract.
●● Fiduciary Duty.
Answer: That duty owed by an agent to act in the highest good faith
toward the principal and not to obtain any advantage over the latter by
the slightest misrepresentation, concealment, duress or pressure.
CERTIFICATION EVALUATION ACCURATE
QUESTIONS GRADED A+
●● Real Estate Broker.
Answer: A person or an organization acting as the agent for others in
negotiating the purchase and sale of real property or other commodities
for a fee.
●● Real Estate Salesperson.
Answer: A person performing any of the acts included in the definition
of real estate broker but while associated with and supervised by a
broker.
●● Residential Property.
Answer: A type of property that includes one to four dwelling units.
●● Commercial Property.
Answer: Property that produces rental income or that is used in business.
Properties with five or more dwelling units are considered commercial
property.
●● Industrial Property.
,Answer: Property that is used by companies or persons for
manufacturing, warehousing, or the assemblage of components.
●● Special Purpose Property.
Answer: A category of real property created as a result of combining the
land and its improvements for a single highest and best use.
●● Mixed-Use Property.
Answer: Any urban, suburban or village development, or even a single
building, that blends a combination of residential, commercial, cultural,
institutional, or industrial uses, where those functions are physically and
functionally integrated, and that provides pedestrian connections.
●● Improvements.
Answer: Changes or additions made to a property, such as walls and
roads. These typically increase the value of a property, except in some
cases of over improvement.
●● Non-Homogeneity.
Answer: A physical characteristic of land describing that land as a
unique commodity.
●● Value.
Answer: The present worth of future benefits.
,●● Price.
Answer: The amount a purchaser agrees to pay and a seller agrees to
accept under the circumstances surrounding a transaction.
●● Cost.
Answer: The total dollar expenditure for labor, materials, and other
items related to construction.
●● Supply.
Answer: The amount of goods offered for sale within a given market at a
given price during a given time period.
●● Demand.
Answer: The amount of goods consumers are willing and able to buy at
any given price during any given time period.
●● Demography.
Answer: The study of the social and economic statistics of a community.
●● Agent.
Answer: A person authorized to act on behalf of another.
, ●● Principal.
Answer: The employer of an agent.
●● Customer.
Answer: The party the agent brings to the principal as seller or buyer of
the property.
●● General Agent.
Answer: An agent with full authority over one property of the principal,
such as a property manager.
●● Special Agent.
Answer: An agent with limited authority to act on behalf of the principal,
such as created by a listing.
●● Listing Contract.
Answer: A contract in which a property owner employs a real estate
broker to market the property described in the contract.
●● Fiduciary Duty.
Answer: That duty owed by an agent to act in the highest good faith
toward the principal and not to obtain any advantage over the latter by
the slightest misrepresentation, concealment, duress or pressure.
