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A collection of questions and answers related to the alabama real estate post-license exam. It covers various topics relevant to real estate practices, including risk assessment, investment strategies, property types, legal aspects, and ethical considerations. The document aims to assist individuals preparing for the exam by offering insights into common exam questions and their corresponding answers.
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Which of the following best defines Risk? - correct answer The chance of experiencing a loss. Unexpected inflations can diminish an investor's rate of return if the income does not increase enough to make up for the effect of the inflation. This risk is known as - correct answer Inflation Risk The ______ is based on the idea that money available at the present time is worth more then in the future, due to it's potential earning capacity. - correct answer Time value of the money. Which type of retail center is anchored by three or more full-line department stores? - correct answer Mega Mall What Type of office buildings are usually one or two stories that can accommodate warehouse and industrial activities in addition to offices? - correct answer Flex Space Office Buildings. Which of the following is not a type of industrial properties? - correct answer Corporate headquarters. Which of this is an advantage of investing in a single-family home? - correct answer The market for single-family investment homes will not be inundated with competitive rentals. What is the primary advantage/s of owning a condominium as an investment property? - correct answer Condos are easy to rent and condo's association provides exterior and ground maintenance. Which of the following is an advantage of investing in a two-to-four unit dwelling? - correct answer Tenants often pay for their own utilities and repairs. What is the concept of using other people's money for investing? - correct answer Leverage
What risk occurs when the real estate market is slow with not many buyers, sellers, or transactions? - correct answer Liquidity Risk Which of the following is NOT a way investors can realize profits in real estate? - correct answer Inflation The government is most likely to pass rent controlled laws on which kind of property? - correct answer Apartment Buildings What type of properties have total of leasable area of up to 30,000 SQF and are usually anchored by a convince store, such as minimarket? - correct answer Strip Center Can investor take depreciation tax deductions with their vacation homes? - correct answer Yes, if they live in the home 14 days or less a year Why is investment in land riskier than other forms of investment? - correct answer Since there are no improvements, the property cannot be depreciated for tax purposes. Which of the following is NOT a characteristic of liquidity? - correct answer Lull in the regular-trade market What is is based on the capacity of the manager and their ability to innovate, respond to competitive situations, and operate the business activity competently? - correct answer Management Risk Property is considered a/n _____ assets if it cannot be transferred as easily as other assets, such as stock or bonds - correct answer illiquid All of the following are residential properties except which one? - correct answer Motel When dealing with fixer-upper, which principle of value will not have an effect on the property? - correct answer Progression
The most common addendum in a sales contract is the seller's property condition disclosure, and the most common contingency is - correct answer financing What type of database segmentation system is designed to collect, store, and retrieve industry-specific functional data? - correct answer Application Areas What does an official Alabama Wood Infestation Inspection report determine? - correct answer The visible presence of an active or previous infestation of wood destroying organisms in an existing structure Which social media site allows agents to establish their professional reputation and gain access to other real estate professionals such as mortgage lenders, home inspectors, lawyers, title closing personnel, and building contractors? - correct answer LinkedIn What type of survey gives the estimated location of a home and improvements on the lot, with the accuracy of plus or minus one foot? - correct answer Spot A disadvantage to investing in a two-to-four unit dwelling is - correct answer they are becoming harder to find. Leasehold estates are distinguished from freeholds by - correct answer their temporary nature. An agent can identify and evaluate competitors by using a valuable tool called a - correct answer competitive analysis. What is money that the buyer or seller needs to pay at closing known as? - correct answer A debit When talking about closing costs, what is meant by the concept of variance testing range? - correct answer Costs stated in the loan disclosure cannot vary by a certain amount on the closing disclosure.
What do we call the frequent refinancing of a mortgage that results in little or no economic benefit to the borrower and is undertaken with the primary purpose of generating additional loan fees, prepayment penalties, and financing fees from the borrower? - correct answer Loan flipping When a home is listed, typically demand and interest fade after - correct answer three or four weeks. What term is used when a contractor provides all materials and labor for a job? - correct answer Turnkey What type of database management system feature will allow you to easily open up a contact name and update the listing? - correct answer Updating Files