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Real Estate Principles 1 questions and answers.
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Real Estate Principles 1 questions andanswers.
If the number of skilled workers to frame houses in a particular city has declined in the last few months,
that factor would ANS -More likely to affect the supply of housing
A shortage of skilled labor or building materials or a significant increase in the cost of labor or materials
can decrease the amount of new construction.
Upon receiving a real estate license in Texas, which organization(s) are license holders required to join?
ANS -A) The National Association of REALTORS® and Texas Land Title Association
B) The National Association of Home Builders and National Association of Real Estate Appraisers
C) The Texas Association of REALTORS®
***D)None of these
Although membership in professional organizations can be important to individual career development,
none are required under state law. It is likely, however, that new license holders hoping to work in
specific brokerages will be required to join a specific organization as a condition of employment.
What is the classification of a legal, single condominium for sale that is above a retail store that is not for
sale? ANS -The answer is residential.
Legal condominiums are classified as residential units, provided they are being sold separately from
surrounding real estate properties. They are residential regardless of the classification of surrounding
units.
If a question arises over the behavior of a licensed real estate sales agent or broker, a consumer usually
will first file a complaint with ANS -The answer is the Texas Real Estate Commission.
The Commission has the authority to discipline real estate license holders, with punishments ranging
from monetary fines to loss of license. Lower courts will often refuse to hear license-holder complaints,
deferring to Commission action.
,What is the classification of a warehouse property that is advertised as being ideal for conversion to
residential loft units? ANS -The answer is industrial.
A property retains its classification, in this case "industrial," until zoning authorities change it to
something else. Real estate professionals must warn potential buyers that rezoning is not always
guaranteed and all transactions carry risks.
Warehouses, factories, and research facilities are classified as which kind of property? ANS -The answer
is industrial.
Industrial property includes factories, warehouses, and research and development facilities. Agricultural
property includes farms, orchards, timberland, ranches, and hatcheries. Special-purpose property
includes churches, government land, and schools. Commercial property includes retail stores, shopping
malls, office buildings, theaters, and parking lots.
Under what real estate classification must a broker list a property if that property—once a very large
single-family home—has since been carved into three condominium units and one rental apartment?
ANS -The answer is residential.
If the large home has been legally divided into smaller units in an area where multifamily units are
permissible, there is no reason to change the classification. Classification does not make a distinction
between single- and multifamily dwellings.
Which s a body of law developed by the courts based on custom and usage? ANS -The answer is
common law.
Common law covers situations where there are no statutes.
The purpose of the National Association of REALTORS® is to ANS -The answer is keep members up to
date on current housing trends, legal issues, and brokerage business practices. The NAR offers state and
national conferences to its members, where new concerns are raised and discussed and, if appropriate,
responded to.
,Nonhomogeneity and heterogeneity are ANS -The answer is synonymous terms. Nonhomogeneity and
heterogeneity are synonymous terms, and both indicate that no two parcels of land are ever exactly the
same. All parcels differ geographically.
The demand for real estate is affected by which of the following? ANS -The answer is population.
For example, the movement of people to the western and southern states creates a greater demand for
housing in those areas. Other factors affecting demand are demographics and employment and wage
levels.
The Women's Council of REALTORS® offers training to receive which professional certification? ANS -The
answer is Performance Management Network.
The PMN courses specifically teach leadership skills in managing everything from a real estate team to a
full-service brokerage company. Although it is offered by WCR, it is open to all REALTOR® members.
To qualify for license renewal and continue in business, license holders must ANS -The answer is follow
certain prescribed standards of business conduct and meet continuing education requirements.
In order to obtain a license, the applicant must possess certain stated personal and educational
qualifications and pass an examination to prove adequate knowledge of the business. In addition, to
qualify for license renewal and continue in business, the license holder must follow certain prescribed
standards of business conduct and meet continuing education requirements.
Which is NOT insured by property insurance? ANS -The answer is land.
Land is not insured, because it cannot be destroyed. Similarly, because of its indestructibility, land
cannot be depreciated.
What real estate discipline is represented by BOMA? ANS -The answer is BOMA represents building
owners and managers.
, BOMA is a national group almost exclusively involved in issues concerning large-scale commercial
enterprises—everything from planning to meeting environmental-quality goals and building security.
A family's wanting to buy a home near good schools is an example of which characteristic of real estate?
ANS -The answer is area preference.
This also is called situs. Area preference is the most important economic characteristic of real estate.
When supply decreases and demand decreases, real estate prices ANS -The answer is remain stable.
When supply and demand increase or decrease together, prices remain stable.
Members of the National Association of Real Estate Brokers refer to themselves as ANS -The answer is
Realtists.
The National Association of Real Estate Brokers historically was a predominantly African American group
of real estate brokers, but modern membership comprises licensees of all races and national origins.
When demand increases, real estate prices ANS -The answer is increase. Demand and price move in the
same direction.
When demand increases, prices increase.
In real estate markets, which may change quickly? ANS -The answer is demand.
Supply and prices are relatively slow to adjust, but demand may change quickly. For example, if
mortgage rates drop suddenly, the demand for real estate may increase quickly as homebuyers rush to
lock in the lower mortgage rates.
If market analysis suggests there is need for a new condo development, but two developments are
constructed across the street from each other, will supply and demand determine which is successful?
ANS -The answer is that success is likely to be based on something other than supply and demand, such
as pricing.
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