Chapter 1 Quiz Answers

CHAPTER 1 QUIZ ANSWERS

1. What does caveat emptor mean? b. Let the buyer beware. – This is a Latin-based principle in commerce that means without a warranty the buyer takes the risk.

2. What are the duties of the state’s real estate department? d. All of the above. – The duties of the state’s real estate department includes licensing, regulating and administering disciplinary action.

3. What are the three levels of real estate licensing? a. Sales Associate, Broker, Broker Associate – A sales associate can also be called a sales agent.

4. True or False. All real estate applicants must be United States citizens? b. False – An applicant must have a social security number but does not have to be a U.S. citizen.

5. A license must be at least ______ years old. b. 18

6. An agreement between two states that provides for the recognition of each other's real estate license education is called _________________________. c. mutual recognition

7. An Involuntary Inactive License classification occurs if… b. A licensee does not renew her license at the end of the license period.

8. A voluntarily inactive license classification occurs if… c. The licensee is not affiliated with a broker, developer or real estate company.

9. True or False. It is legal to work under a real estate broker if you are not licensed. b. False

10. True or False. It is illegal to share a commission or pay compensation to an unlicensed person for any services that would require that person to have a real estate license. c. True