©THEBRIGHT EXAM STUDY SOLUTIONS 8/26/2024 11:32 AM
Bob Hogue Real Estate Class Test Questions
With Correct Answers
Absentee Owner - answer✔✔A property holder who does not reside on the property and who
usually relies on a property manager to manage the investment.
Appraisal - answer✔✔The process of developing and communicating an estimate of a property's
Appraiser - answer✔✔Appraisers charge a fee based on the time and difficulty of the appraisal
assignment and are not paid commission.
Broker Price Opinion (BPO) - 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 - answer✔✔Real estate licensees who engage in the sale, purchase, or lease of
businesses.
Business Opportunity - answer✔✔The sale or lease of an existing business, including the sale of
tangible and intangible assets
Community Association Manager (CAM) - 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.
Comparative Market Analysis (CMA) - 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 - 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 - answer✔✔one specific portion of a city, where a broker and sales associate are
experts in that particular portion
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Follow-Up - answer✔✔the sales step in which a salesperson follows up after the sale to ensure
customer satisfaction and repeat business
Multiple Listing Service (MLS) - 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 - answer✔✔The leasing, managing, marketing, and overall maintenance
of property for others.
Property Manager - answer✔✔Involves the leasing, managing, marketing, and maintenance of
property
Real Estate Brokerage - 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.
REALTOR® - answer✔✔a real estate licensee who is a member of the National Association of
REALTORS®.
Rental Agent - 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 - 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? - 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? -
answer✔✔1. Residential
2. Commercial
3. Industrial
4. Agricultural
5. Businesses
Florida Real Estate Appraisal Board (FREAB) - answer✔✔Regulates state certified and licensed
appraisers
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/26/2024 11:32 AM
Uniform Standards of Professional Appraisal Practice (USPAP) - answer✔✔States that it is
unethical for an appraiser to accept compensation that is contingent on the value of the property.
Mortgage Loan Originator (MLO) - 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: - answer✔✔1. Land
Acquisition
2. Subdivision and development
3. Recording the subdivision plat map
Land Acquisitions - answer✔✔Developers and builders require raw land and then prepare the
site for construction.
Subdividing - answer✔✔A separation of the land into smaller parcels
Development - answer✔✔The process of improving raw land so that it can be put to productive
use
Recording the subdivision plat map - 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: - answer✔✔1. Speculative
(spec) homes
2. Custom homes
3. Tract homes
How is the real estate business regulate or influenced by the local government? -
answer✔✔Impacts the real estate business through property taxation and regulatory activities
such as occupational licensing, business tax receipts, building permits, building moratoriums,
zoning, and building codes
How is the real estate business regulate or influenced by the state governments? -
answer✔✔Manages a large amount of land and identifies coastal regions and other areas that are
protected from development. State documentary and intangible taxes are required when
ownership to real property is transferred or pledged as collateral for a mortgage
How is the real estate business regulate or influenced by the federal governments? -
answer✔✔Impacts through physical and monetary policies. HUD, FHA, EPA, VA
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Broker - answer✔✔A person who, for another and for compensation or other consideration (or
anticipation of compensation or other consideration), performs real estate services.
Broker Associate - answer✔✔A person who holds a broker's license but chooses to register and
work in real estate under the direction of another broker.
Compensation - answer✔✔Anything of value or a valuable consideration, directly or indirectly
paid, promised, or expected to be paid or received.
Expungement - answer✔✔A process by which the record of a criminal conviction is destroyed or
sealed after expiration of time. Expungement is not automatic. Attorneys charge extra for this
process, and applicants should confirm that the matter no longer apears on ones criminal history.
Florida resident - answer✔✔For application and licensing purposes, a person who has resided in
Florida continuously for four calendar months or more within the preceding year.
License - answer✔✔An individual who has qualified for, and been registered as, a real estate
broker, broker associate, or sales associate.
Mutual recognition agreement - answer✔✔Recognizes the education and experience of
individuals licensed in another state or nation when the other jurisdiction has education and
experience requirement comparable to Florida requirements. The agreement applies exclusively
to non residents who are licensed in another jurisdiction. The application requests mutual
recognition on the license application and indicates from which mutual recognition is requested.
nolo contendere (no contest) - answer✔✔A pleading of no contest by a defendant; a plea in a
criminal action not admitting guilt but subjecting the defendant to punishment as though it were
a guilty plea.
Owner-developer - answer✔✔An unlicensed entity that sells, exchanges, or leases its own
property.
Prima Facie Evidence - answer✔✔Requiring no further proof; acceptable on the face of.
real estate services - answer✔✔Real estate activities involving compensation for performing the
activities for another.
Reciprocity - answer✔✔Practice of mutual exchanges of privileges. To qualify for a reciprocal
real estate license, the elidgiable military applicant, spouse, or surviving spouse must currently
hold a valid real estate license issued in another state, US territory.
Registration - answer✔✔Authorization by the state to place an applicant on the register (record)
of officially recognized individuals and businesses.
