Course 1-1

Question 1

Economic Factors in Real Estate

Answer 1

Supply and Demand, Pricing, Costs incurred in bringing to market. Value aspect of desire.

Question 2

How are sale effected by the local economy

Answer 2

If the economy slows, so do sales, the reverse is the same.

Question 3

List three kinds of properties

Answer 3

Commercial, residential, Agriculture, industrial, special purpose, recreational, investment.

Question 4

Jim decided to focus on sub divisions west of town, what kind of real estate did he specialize in?

Answer 4

Geography.

Question 5

Trade Association?

Answer 5

National Association of Realtors NARs

Question 6

Trade Associations for Brokers

Answer 6

National Association of Real Estate Brokers

Question 7

Some of the guildlines in the Code of Ethics?

Answer 7

Protecting and promoting the interests of the client
Avoiding exaggeration, misrepresentation and the concealment of pertinent facts
Cooperating with other brokers
Informing sellers or purchasers of the licensee’s interest in a property
Accepting commissions
Handling trust funds

Question 8

Duties outlined in the Code of Ethics

Answer 8

Providing equal, non-discriminatory services to all persons
Refraining from providing professional services outside the licensee’s field of expertise
Being truthful and clear in advertising
Avoiding activities that might constitute the practice of law
Refraining from false or misleading statements about competitors

Question 9

What ethical standard guide real estate professionals?

Answer 9

The code of ethics and standard practices set forth by NAR

Question 10

Identify two duties set for by NAR in regards to clients.

Answer 10

Avoiding misrepresentation, exaggerations, and concealment of pertinent facts.

Question 11

List two duties set forth by NAR in regards to public

Answer 11

Providing equal, non discriminatory services to all persons, refraining from providing professional services outside the licensees field of expertise.

Question 12

Why is practicing ethical behavior a good business practice

Answer 12

Clients will be loyal and send referrals your way.

Question 13

From who may a salesperson receive compensation for performed activities?

Answer 13

ONLY from the employing broker

Question 14

What is the major difference between an employee and a contractor

Answer 14

The issue of control, a broker can control the what and the how of an employee. A broker can control the what but not the how of an independent contractor.

Question 15

What kinds of insurance do brokers normally require of their employees?

Answer 15

High limits of auto insurance with the broker named as the insured errors and omissions insurance.

Question 16

What should a licensee written employment agreement contain?

Answer 16

Each persons responsibilities to the other, the brokers supervision, the licensees duties, the licensees compensation program.