A Real Estate Business MCQ Quiz

12 Questions | Total Attempts: 240

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A Real Estate Business MCQ Quiz - Quiz

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Questions and Answers
  • 1. 
    Real estate brokerage can be best defined as the business process of bringing together the parties who are interested in completing a real estate transaction.
    • A. 

      True

    • B. 

      False

  • 2. 
    According to Pennsylvania law, commission fees for brokers and salespersons are set by the Pennsylvania Real Estate Commission at 6% of the selling price of the property.
    • A. 

      True

    • B. 

      False

  • 3. 
    In an arrangement between the office broker and salespersons in that office, the office broker would not receive a percentage of the commission on a sales transaction, but would instead receive a flat fee per sales agent for any given month, may be best described as a 100% Commission Plan. Under this plan, the sales agent would be responsible for such expenses as advertising, yard signs, and most other expenses.
    • A. 

      True

    • B. 

      False

  • 4. 
    Independent contractor is a term used by the United States Internal Revenue Service to refer to those persons in the business world who operate autonomously from a traditional employer. Most real estate agents are classified as independent contractors.
    • A. 

      True

    • B. 

      False

  • 5. 
    The McCain-Weldon Antitrust Act of 1990 required that real estate offices act independently in establishing its own office fees and commissions. This could also include collusion or conspiracy among real estate businesses to control the duration of any real estate contract or the type of compensation to agents.
    • A. 

      True

    • B. 

      False

  • 6. 
    An example of "Special Use" category of real estate would be shore and mountain vacation property, resort time-share ownership, condos, etc.
    • A. 

      True

    • B. 

      False

  • 7. 
    Currently all real estate licenses in Pennsylvania are issued by the National Association of Realtors.
    • A. 

      True

    • B. 

      False

  • 8. 
    After a Pennsylvania Real Estate Salesperson license is issued the salesperson is then officially known as a REALTOR.
    • A. 

      True

    • B. 

      False

  • 9. 
    Supply and demand are two initial economic factors that affect real estate transactions.
    • A. 

      True

    • B. 

      False

  • 10. 
    In the situation when the demand of buyers is high and there are a greater number of buyers than available homes for sale, it is called a "broker's market".
    • A. 

      True

    • B. 

      False

  • 11. 
    In the situation when the supply of available real estate is high and the demand of buyers is average to weak, the price of real estate will drop and the market will be referred to as a "buyer's market".
    • A. 

      True

    • B. 

      False

  • 12. 
    Between 1998 and including 2005, there was a substantial recession in the United States resulting in a sluggish housing market. The supply of available real estate was high and there was little demand from the buyer, thus, there was a "buyer's market" during these years.
    • A. 

      True

    • B. 

      False

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