1. Intro to Modern Real Estate Practice

Question 1

Abatement

Answer 1

Elimination or reduction of real estate taxes to attract new business to an area.

Question 2

Agricultural Real Estate

Answer 2

farms, timberland, pastureland, ranches, and orchards.

Question 3

Broker

Answer 3

One who buys and sells for another for a commission.

Question 4

Business Cycle

Answer 4

Upward and downward fluctuations in business activity through the stages of expansion, recession, depression, and revival.

Question 5

Commercial Real Estate

Answer 5

business property, including offices, shopping centers, stores, theaters, hotels, and parking facilities.

Question 6

Common Law

Answer 6

The body of law based on custom, usage, and court decisions.

Question 7

Cost

Answer 7

The capital outlay for land, labor, materials, and profits necessary to bring a property into existence.

Question 8

Demand

Answer 8

The amount of goods people are willing and able to buy at a given price; often coupled with supply.

Question 9

Demographics

Answer 9

The characteristics of human populations, such as size, growth, density, distribution, and vital statistics.

Question 10

Industrial Real Estate

Answer 10

warehouses, factories, and land in industrial districts.

Question 11

Market

Answer 11

A place where goods can be bought and sold and a price established.

Question 12

Mixed-use Real Estate

Answer 12

Property that accommodates more than one use, such as commercial use and residential use

Question 13

National Association of REALTORS (NAR)

Answer 13

The largest real estate professional organization in the world, representing all branches of the real estate industry. Active members are allowed to use the trademark REALTOR®.

Question 14

Objective Value

Answer 14

The actual value measured in dollars of an aspect of construction or location.

Question 15

Precedent

Answer 15

In law, the requirements established by prior court decisions.

Question 16

Price

Answer 16

The amount of money paid for an item.

Question 17

Realtist

Answer 17

A person who is a member of the National Association of Real Estate Boards.

Question 18

REALTOR

Answer 18

A registered trademark term reserved for the sole use of active members of local associations affiliated with the National Association of REALTORS®

Question 19

Residential Real Estate

Answer 19

all property used for housing, from small city lots to acreage, both single-family and multifamily, in urban, suburban, and rural areas.

Question 20

Sales Agent

Answer 20

A person who performs real estate activities while employed by or associated with a licensed real estate broker.

Question 21

Seven Sources of Law

Answer 21

Affects the ownership and transfer of real estate. These sources are:

• U.S. Constitution
• Federal Laws Passed by Congress
• State Constitutions
• State Laws and Regulations of State Agencies
• Regulations of Federal Commissions and Agencies
• Local Ordinances
• Court Decisions (Common Law)

Question 22

Special-purpose Real Estate

Answer 22

places of worship, schools, cemeteries, and government-held lands.

Question 23

Subjective Value

Answer 23

The perceived value of an item based on the relative benefits expected to be derived from its use.

Question 24

Supply

Answer 24

The amount of goods available in the market to be sold at a given price. !e term often is coupled with demand.

Question 25

Texas Real Estate Commission (TREC)

Answer 25

A group of people appointed by the governor to set policy in implementing the License Act.

Question 26

Texas Real Estate License Act (TRELA)

Answer 26

The statute that controls the licensing of persons permitted to practice real estate brokerage in Texas.