REAL ESTATE ACTUAL EXAM QUESTION AND CORRECT ANSWERS WITH RATIONALES RATED A GRADE.

1. Brokerage definition... Correct Answer the business practice of bringing together the parties in a practice. 2. What are two examples of special use property? Correct Answer schools and cemetary 3. What is an example of functional obsolescence? Correct Answer bathroom 3. Principal definition.. . Correct Answer a consumer of real estate services who has entered into an agency relationship with a broker or another licensee employed by a broker. 4. Capitalization definition.. . Correct 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? Correct Answer Inform the buyer 8. All are examples of real estate except... Correct Answer factories 9. What is homeowners insurance? Correct Answer Insurance to protect owners from fires and other etc. 10. Special agent definition... Correct 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 Correct Answer Gross Rent Multiplier Method What is steering? Correct 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. Correct Answer Except when listing broker does not disclose information 16. Can a salesperson give legal advice? Correct Answer No, not unless they are an attorney. 17. Who determines the commission in a listing contract? Correct Answer An agreement between the owner and broker 19. All are typical duties of a property manager with the exception of... Correct Answer Investing profits