FREC 1 Questions & Answers | 100% Correct
Answers | Verified | Latest 2024 Version
What does RESPA stand for? What does it mean? - ✔✔Real Estate Settlement Procedures Act. Getting
someone qualified
Wha is real estate brokerage? - ✔✔Real estate brokerage is the business of bringing together buyers and
sellers and owners and renters and completing real estate transactions (paid a fee or a commission for
services)
5 major sales specialties - ✔✔"Residential"- 4 or fewer residential units OR agricultural property of 10 or
fewer acres.
"Commercial" - improved residential property of greater than 4 units.
"Industrial" - must have technical knowledge of the needs of different industries.
"Agricultural"- agricultural property of more than 10 acres (must be familiar with the operation of farms
and related problems)
"Business"- real estate licensees who engage in the sale,purchase,or lease of businesses are called
business brokers.
True or false
business brokers need a license - ✔✔TRUE
What is property management? - ✔✔A property manager who manages and maintains property for the
property owner.
Definition of "absentee owner" - ✔✔Someone who doesn't reside on the property and rely on a
professional property manager
Appraising - ✔✔The process of estimating the value of property. (Requires separate license)
What does USPAP stand for? And what does it mean? - ✔✔Uniform standards of professional appraisal
practice. It's a set of guidelines to follow when providing appraisal services.
, What does CMA stand for? - ✔✔Comparative market analysis. (Collecting information around the area
e.g recent sales, property currently for sale)
What does BPO stand for? - ✔✔Brokers price opinion. (Written opinion of the value of real property)
Are licensees allowed to prepare and charge for a CMA/BPO? - ✔✔Yes. But it is not called an appraisal!!!
When conducting appraisals real estate licensees must abide by the USPAP. True or false? - ✔✔TRUE
USPAP standards do not apply to CMAs and BPOs. True or false - ✔✔TRUE
What does subdividing mean? - ✔✔Process of converting parcels of land into smaller units or lots.
The gift of land by an owner to a governmental body for public use is called what? - ✔✔Dedication
What are the 3 types of construction? - ✔✔1. Speculation- involves purchasing one or more lots and
constructing a home(s) without securing a buyer in advance of construction.
2. Custom - A custom builder constructs homes under contract with a buyer often using building plans
provided by architects or buyers.
3. Tract Homes - tract homes are speculative. A new subdivision will typically feature several model
homes buyers select a floor plan from the models and a lots on which to build in the new subdivision.
What are the 3 roles of government in Florida real estate? - ✔✔1. Local government which supports
infrastructure, roads, sewers, schools etc.
2. State government which collects documents and taxes on property sales.
3. Federal government which regulates fiscal and monetary policies. Federal agencies HUD, FHA, VA. EPA,
IRS etc.
Definition of MLS (multiple listing services) - ✔✔Database allows a real estate brokers representing
sellers under a listing contract to share information about properties with real estate brokers who may
represent potential buyers.
Answers | Verified | Latest 2024 Version
What does RESPA stand for? What does it mean? - ✔✔Real Estate Settlement Procedures Act. Getting
someone qualified
Wha is real estate brokerage? - ✔✔Real estate brokerage is the business of bringing together buyers and
sellers and owners and renters and completing real estate transactions (paid a fee or a commission for
services)
5 major sales specialties - ✔✔"Residential"- 4 or fewer residential units OR agricultural property of 10 or
fewer acres.
"Commercial" - improved residential property of greater than 4 units.
"Industrial" - must have technical knowledge of the needs of different industries.
"Agricultural"- agricultural property of more than 10 acres (must be familiar with the operation of farms
and related problems)
"Business"- real estate licensees who engage in the sale,purchase,or lease of businesses are called
business brokers.
True or false
business brokers need a license - ✔✔TRUE
What is property management? - ✔✔A property manager who manages and maintains property for the
property owner.
Definition of "absentee owner" - ✔✔Someone who doesn't reside on the property and rely on a
professional property manager
Appraising - ✔✔The process of estimating the value of property. (Requires separate license)
What does USPAP stand for? And what does it mean? - ✔✔Uniform standards of professional appraisal
practice. It's a set of guidelines to follow when providing appraisal services.
, What does CMA stand for? - ✔✔Comparative market analysis. (Collecting information around the area
e.g recent sales, property currently for sale)
What does BPO stand for? - ✔✔Brokers price opinion. (Written opinion of the value of real property)
Are licensees allowed to prepare and charge for a CMA/BPO? - ✔✔Yes. But it is not called an appraisal!!!
When conducting appraisals real estate licensees must abide by the USPAP. True or false? - ✔✔TRUE
USPAP standards do not apply to CMAs and BPOs. True or false - ✔✔TRUE
What does subdividing mean? - ✔✔Process of converting parcels of land into smaller units or lots.
The gift of land by an owner to a governmental body for public use is called what? - ✔✔Dedication
What are the 3 types of construction? - ✔✔1. Speculation- involves purchasing one or more lots and
constructing a home(s) without securing a buyer in advance of construction.
2. Custom - A custom builder constructs homes under contract with a buyer often using building plans
provided by architects or buyers.
3. Tract Homes - tract homes are speculative. A new subdivision will typically feature several model
homes buyers select a floor plan from the models and a lots on which to build in the new subdivision.
What are the 3 roles of government in Florida real estate? - ✔✔1. Local government which supports
infrastructure, roads, sewers, schools etc.
2. State government which collects documents and taxes on property sales.
3. Federal government which regulates fiscal and monetary policies. Federal agencies HUD, FHA, VA. EPA,
IRS etc.
Definition of MLS (multiple listing services) - ✔✔Database allows a real estate brokers representing
sellers under a listing contract to share information about properties with real estate brokers who may
represent potential buyers.
