1 - Introduction to Real Estate

Question 1

Agent

Answer 1

Anyone who is authorized to act on behalf of someone else.

Question 2

Appreciation

Answer 2

The increase in the value of property due to changes in market conditions, inflation, or other causes.

Question 3

Associate Broker

Answer 3

One who has qualified as a real estate broker but works for another broker.

Question 4

Broker

Answer 4

Any person, association, partnership, limited liability partnership, limited liability corporation or company, who (for a fee) sells, lists, leases, exchanges, negotiates or otherwise deals in the real estate of others or represents publicly that he or she does so.

Question 5

Civil Penalties

Answer 5

Monetary relief, in the forms of fines or surcharges, against an individual as restitution for wrongdoing by the individual.

Question 6

Code of Ethics and Standards of Practice

Answer 6

Any real estate licensee must abide by this document, first published in 1913.

Question 7

Condominium

Answer 7

Property developed for co-ownership, with each co-owner having a separate interest in an individual unit, combined with an undivided interest in the common areas of the property.

Question 8

Cost of Money

Answer 8

The interest rate people or businesses pay to use another’s money for their own purposes.

Question 9

Criminal Litigation

Answer 9

Lawsuit in which the government sues someone to punish the wrongdoer and protect society.

Question 10

Economic Base

Answer 10

Main business or industry supporting and sustaining a community. A good economic base is critical for strong home values.

Question 11

Eminent Domain

Answer 11

Government’s constitutional power to appropriate or condemn private property for public use as long as the owner is paid just compensation.

Question 12

Escheat

Answer 12

When property reverts to the state after a person dies without leaving a valid will and without heirs, or when property is abandoned.

Question 13

Fiduciary Duties

Answer 13

What is owed to all clients in an agency relationship - obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care.

Question 14

Immobility

Answer 14

Physical characteristic of real estate referring to the fact that it cannot move from one place to another.

Question 15

Improvements

Answer 15

Additions to real property, substantial fixtures, buildings, etc. that increase the value of the property.

Question 16

Inflation

Answer 16

Increase in the cost of goods or services; or, too much money chasing too few goods.

Question 17

Land Use Controls

Answer 17

Public or private restrictions on how land may be used (e.g. zoning).

Question 18

Management

Answer 18

The cost and complexity of monitoring an investment. Asset management and property management.

Question 19

Moral Suasion

Answer 19

Trying to use persuasive influences on the public and financial markets to perceive credit in a specific way. It is the application of pressure, not force, by an authority (such as the Federal Reserve Board) to get members to adhere to a policy.

Question 20

Multiple Listing Service (MLS)

Answer 20

A service whereby local member-brokers agree to share listings and commissions on properties sold jointly.

Question 21

NYSAR

Answer 21

New York State Association of Realtors

Question 22

Police Power

Answer 22

Constitutional power of state (and local) governments to enact and enforce laws that protect the public’s health, safety, morals and general welfare.

Question 23

Real Estate Licensee

Answer 23

A person licensed to practice real estate.

Question 24

Realtist

Answer 24

Any real estate licensee who is a member of the National Association of Real Estate Brokers.

Question 25

Realtor

Answer 25

Any real estate licensee who is a member of the National Association of Realtors (NAR) and his or her affiliated state and local boards.

Question 26

Salesperson

Answer 26

Any licensed agent who is associated with a broker and as such may perform most of the acts a broker can on behalf of the broker.

Question 27

Scarcity

Answer 27

Characteristic of real property that says there is a limited supply of real estate.

Question 28

Taxation

Answer 28

Process of a government levying a charge on people or things.

Question 29

Timeshare

Answer 29

An ownership interest that gives the owner a right to possession of the property only for a specific, limited period of time each year.