Oregon Real Estate Practice Test

What is a model unit in real estate practice?

1. A temporary structure used solely for advertising

2. A permanent office for real estate agents

3. A location where real estate contracts are signed

4. A site for holding open houses

The correct answer is: A temporary structure used solely for advertising

A model unit in real estate practice refers to an actual property or space that is used for demonstration purposes, typically showcasing the design, features, and amenities of a particular development or community. On the market, it allows potential buyers to visualize what their living environment would be like, helping them to make informed decisions. This concept aligns with the nature of a temporary structure used solely for advertising, as model units often highlight and promote new construction developments or renovated properties, acting as a tangible representation for marketing efforts. The goal is to attract prospective buyers and create interest in the homes available in a particular project or neighborhood. While advertising might be relevant to other options, they do not encapsulate the purpose or function of a model unit as effectively. For instance, a permanent office for real estate agents serves administrative and operational functions rather than displaying properties. Similarly, a location for signing contracts typically pertains to transaction completion, and a site for holding open houses is about marketing properties rather than serving as a designated unit for the purpose of demonstration.