BOB HOGUE REAL ESTATE EXAM QUESTIONS & CORRECT
ANSWERS (PERFECTLY VERIFIED) GRADED A+
Absentee Owner - CORRECT ANSWER >>>A property holder who does not reside on the
property and who usually relies on a property manager to manage the investment.
Appraisal - CORRECT ANSWER >>>The process of developing and communicating an estimate of
a property's
Appraiser - CORRECT ANSWER >>>Appraisers charge a fee based on the time and difficulty of
the appraisal assignment and are not paid commission.
Broker Price Opinion (BPO) - CORRECT ANSWER >>>A broker's written opinion of the value of a
particular property that may not be used in connection with the originating a federally related
loan; not an appraisal.
Business Broker - CORRECT ANSWER >>>Real estate licensees who engage in the sale, purchase,
or lease of businesses.
Business Opportunity - CORRECT ANSWER >>>The sale or lease of an existing business,
including the sale of tangible and intangible assets
Community Association Manager (CAM) - CORRECT ANSWER >>>must hold a CAM license when
the community association consists of more than 10 units or has an annual budget in excess of
$100,000.
1|Page
,Comparative Market Analysis (CMA) - CORRECT ANSWER >>>An informal estimate of market
value performed by a real estate licensee for the seller to assist in arriving at an appropriate
listing price, or if working with the buyer, an informal estimate of market value to assist the
buyer in arriving at an appropriate offering price.
Delication - CORRECT ANSWER >>>The gift of land by an owner, in this case developer, to a
government body for public use. A valid dedication of land from the owner to the municipality
requires both an offer to dedicate (donate) the land and an acceptance by the municipality.
Farm Area - CORRECT ANSWER >>>one specific portion of a city, where a broker and sales
associate are experts in that particular portion
Follow-Up - CORRECT ANSWER >>>the sales step in which a salesperson follows up after the
sale to ensure customer satisfaction and repeat business
Multiple Listing Service (MLS) - CORRECT ANSWER >>>database that allows real estate brokers
representing sellers under a listing contract to share information about properties with real
estate brokers who may represent potential buyers
Property Management - CORRECT ANSWER >>>The leasing, managing, marketing, and overall
maintenance of property for others.
Property Manager - CORRECT ANSWER >>>Involves the leasing, managing, marketing, and
maintenance of property
Real Estate Brokerage - CORRECT ANSWER >>>A part of the real estate business that is
concerned with bringing together buyers and sellers and owners and renters and completing a
real estate transaction.
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,REALTOR® - CORRECT ANSWER >>>a real estate licensee who is a member of the National
Association of REALTORS®.
Rental Agent - CORRECT ANSWER >>>A person who, for a fee, acts as an intermediary between
a person seeking to lease a housing accommodation and a property owner seeking to acquire a
lease for a housing accommodation.
Target Market - CORRECT ANSWER >>>a specific group of prospects chosen because of its
demographic, financial, and lifestyle characteristics
Real estate professionals provide expert information in which three areas? - CORRECT
ANSWER >>>1. Knowledge of property transfer
2. Knowledge of market conditions
3. Knowledge of how to market real estate and businesses
Real estate sales associates involved in sales and leasing specialize in one of which 5 areas? -
CORRECT ANSWER >>>1. Residential
2. Commercial
3. Industrial
4. Agricultural
5. Businesses
Florida Real Estate Appraisal Board (FREAB) - CORRECT ANSWER >>>Regulates state certified
and licensed appraisers
Uniform Standards of Professional Appraisal Practice (USPAP) - CORRECT ANSWER >>>States
that it is unethical for an appraiser to accept compensation that is contingent on the value of
the property.
3|Page
, Mortgage Loan Originator (MLO) - CORRECT ANSWER >>>Anyone who takes residential
mortgage loan applications or offers to negotiate the terms of residential mortgage loan
applications for compensation must be licensed as an MLO
What are the three general phases of development and construction: - CORRECT ANSWER
>>>1. Land Acquisition
2. Subdivision and development
3. Recording the subdivision plat map
Land Acquisitions - CORRECT ANSWER >>>Developers and builders require raw land and then
prepare the site for construction.
Subdividing - CORRECT ANSWER >>>A separation of the land into smaller parcels
Development - CORRECT ANSWER >>>The process of improving raw land so that it can be put
to productive use
Recording the subdivision plat map - CORRECT ANSWER >>>Most local governments require
that developers submit a subdivision plat map of a new development for review by the planning
board.
What are the three general categories of residential construction: - CORRECT ANSWER >>>1.
Speculative (spec) homes
2. Custom homes
3. Tract homes
How is the real estate business regulate or influenced by the local government? - CORRECT
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ANSWERS (PERFECTLY VERIFIED) GRADED A+
Absentee Owner - CORRECT ANSWER >>>A property holder who does not reside on the
property and who usually relies on a property manager to manage the investment.
Appraisal - CORRECT ANSWER >>>The process of developing and communicating an estimate of
a property's
Appraiser - CORRECT ANSWER >>>Appraisers charge a fee based on the time and difficulty of
the appraisal assignment and are not paid commission.
Broker Price Opinion (BPO) - CORRECT ANSWER >>>A broker's written opinion of the value of a
particular property that may not be used in connection with the originating a federally related
loan; not an appraisal.
Business Broker - CORRECT ANSWER >>>Real estate licensees who engage in the sale, purchase,
or lease of businesses.
Business Opportunity - CORRECT ANSWER >>>The sale or lease of an existing business,
including the sale of tangible and intangible assets
Community Association Manager (CAM) - CORRECT ANSWER >>>must hold a CAM license when
the community association consists of more than 10 units or has an annual budget in excess of
$100,000.
1|Page
,Comparative Market Analysis (CMA) - CORRECT ANSWER >>>An informal estimate of market
value performed by a real estate licensee for the seller to assist in arriving at an appropriate
listing price, or if working with the buyer, an informal estimate of market value to assist the
buyer in arriving at an appropriate offering price.
Delication - CORRECT ANSWER >>>The gift of land by an owner, in this case developer, to a
government body for public use. A valid dedication of land from the owner to the municipality
requires both an offer to dedicate (donate) the land and an acceptance by the municipality.
Farm Area - CORRECT ANSWER >>>one specific portion of a city, where a broker and sales
associate are experts in that particular portion
Follow-Up - CORRECT ANSWER >>>the sales step in which a salesperson follows up after the
sale to ensure customer satisfaction and repeat business
Multiple Listing Service (MLS) - CORRECT ANSWER >>>database that allows real estate brokers
representing sellers under a listing contract to share information about properties with real
estate brokers who may represent potential buyers
Property Management - CORRECT ANSWER >>>The leasing, managing, marketing, and overall
maintenance of property for others.
Property Manager - CORRECT ANSWER >>>Involves the leasing, managing, marketing, and
maintenance of property
Real Estate Brokerage - CORRECT ANSWER >>>A part of the real estate business that is
concerned with bringing together buyers and sellers and owners and renters and completing a
real estate transaction.
2|Page
,REALTOR® - CORRECT ANSWER >>>a real estate licensee who is a member of the National
Association of REALTORS®.
Rental Agent - CORRECT ANSWER >>>A person who, for a fee, acts as an intermediary between
a person seeking to lease a housing accommodation and a property owner seeking to acquire a
lease for a housing accommodation.
Target Market - CORRECT ANSWER >>>a specific group of prospects chosen because of its
demographic, financial, and lifestyle characteristics
Real estate professionals provide expert information in which three areas? - CORRECT
ANSWER >>>1. Knowledge of property transfer
2. Knowledge of market conditions
3. Knowledge of how to market real estate and businesses
Real estate sales associates involved in sales and leasing specialize in one of which 5 areas? -
CORRECT ANSWER >>>1. Residential
2. Commercial
3. Industrial
4. Agricultural
5. Businesses
Florida Real Estate Appraisal Board (FREAB) - CORRECT ANSWER >>>Regulates state certified
and licensed appraisers
Uniform Standards of Professional Appraisal Practice (USPAP) - CORRECT ANSWER >>>States
that it is unethical for an appraiser to accept compensation that is contingent on the value of
the property.
3|Page
, Mortgage Loan Originator (MLO) - CORRECT ANSWER >>>Anyone who takes residential
mortgage loan applications or offers to negotiate the terms of residential mortgage loan
applications for compensation must be licensed as an MLO
What are the three general phases of development and construction: - CORRECT ANSWER
>>>1. Land Acquisition
2. Subdivision and development
3. Recording the subdivision plat map
Land Acquisitions - CORRECT ANSWER >>>Developers and builders require raw land and then
prepare the site for construction.
Subdividing - CORRECT ANSWER >>>A separation of the land into smaller parcels
Development - CORRECT ANSWER >>>The process of improving raw land so that it can be put
to productive use
Recording the subdivision plat map - CORRECT ANSWER >>>Most local governments require
that developers submit a subdivision plat map of a new development for review by the planning
board.
What are the three general categories of residential construction: - CORRECT ANSWER >>>1.
Speculative (spec) homes
2. Custom homes
3. Tract homes
How is the real estate business regulate or influenced by the local government? - CORRECT
4|Page
