1 - Introduction to Real Estate

Question 1

<p>Brokerage</p>

Answer 1

<p>The aspect of the real estate business that pertains to overseeing the needs of the parties and completing a transaction.

BROKERAGE IS NOT THE SAME AS AGENCY</p>

Question 2

<p>Property Management</p>

Answer 2

<p>The management of residential and commercial properties on behalf of he investor-owner of the property.

Usually responsible for the day-to-day operations of the property, maintenance, and tenant relations.

In commercial or retail centers, theyre sometimes responsible for leasing the property. In other cases the brokerage firm may be responsible.</p>

Question 3

Real Estate Development

Answer 3

Involves the acquisition of land for development and two residential subdivisions, retail centers, and other commercial uses.

Question 4

Economic characteristics of land

Answer 4

Scarcity: supply and demand. When there is a shortage of something that individuals want, the price goes up.

Modification: value is affected by man-made changes to the land. These changes can be on the land itself or off site. Example: Disney World in Orlando Florida.

Fixity: the fact that land and additions to the land, such as buildings, take long periods to pay for themselves. Because of this investors must analyze the long-term nature of owning an investment property. Fixity also refers to the fact that land cannot be moved, but is fixed and location.

Situs: location of the property or land from an economic, not a geographic viewpoint. People have preferences for specific characteristics and property, and location dominates those preferences. Climate, views, Access to Natural Recreation, as well as schools, job opportunities, and transportation, are all important.

Question 5

Statutory Law

Answer 5

The body of laws and regulations enacted by federal and state legislative bodies. Much of what was once embodied in common law is now codified and statutes paused at the state and federal level.

Question 6

Appraisal

Answer 6

The business of providing a professional opinion of the value of real property.

Question 7

Apartment Locator

Answer 7

Work for firms that specialize in locating units for tenants in multifamily complexes.

Question 8

Petroleum Landmen

Answer 8

Individuals with a real estate background who are employed by oil and gas companies. May be employed to do title work to determine mineral ownership and might negotiate oil and gas leases with mineral owners.

Question 9

Supply and Demand

Answer 9

When there is a shortage of something that individuals want, the price goes up.

Question 10

Situs

Answer 10

location of the property or land from an economic, not a geographic viewpoint. People have preferences for specific characteristics and property, and location dominates those preferences. Climate, views, Access to Natural Recreation, as well as schools, job opportunities, and transportation, are all important.

Question 11

Fixity

Answer 11

the fact that land and additions to the land, such as buildings, take long periods to pay for themselves. Because of this investors must analyze the long-term nature of owning an investment property. Fixity also refers to the fact that land cannot be moved, but is fixed and location.

Question 12

TRELA

Answer 12

1939

To protect the public against unscrupulous Brokers and sales agents.

Since it went into effect, it has been unlawful for anyone to “act in the capacity of, engage in the business of, or advertise or hold oneself out as engaging in or conducting the business of a real estate broker or a real estate sales agent within the state without first obtaining a real estate license from the Texas real estate commission.”

Question 13

Mortgage Lending

Answer 13

The business of providing money to individuals or corporations for the conditional transfer or pledge of real estate as security for payment of a debt. The Texas department of savings and mortgage lending licenses Residential Mortgage Loan Originators or RMLOs.

Question 14

Home Inspector

Answer 14

Requires a special license from TREC.

Question 15

Physical characteristics of land

Answer 15

1. Indestructibility or durability refers to the fact that outside forces cannot destroy land. It might sink underwater, become a Creator, or be built up. In any case, the land will still be there; it is permanent .
2. Immobility refers to the fact that land cannot be moved. When personal property is purchased, the buyer can move it to a new location. When land or by sea and land are purchased, the new owner must go to the land.
3. Non-homogeneity refers to the fact that no two Parcels of land are the same. Even two identical looking Lots in a subdivision at least different and their position on Earth.

Question 16

common law

Answer 16

A body of law developed in England and based upon “Common Sense” and local custom. Under common law, a court looks to the findings of Prior courts when rendering a decision.

Question 17

TREC

Answer 17

1949.

A nine-member commission whose primary purpose is to carry out the provisions of the License Act.

Question 18

RMLO

Answer 18

An individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain.

Question 19

9 members, 6 years.

Answer 19

How many members on the Texas Real Estate Commission and how long do they serve?

Question 20

6 members, 5 years.

Answer 20

How many members of TREC are brokers? How long did they have to be brokers before being apointed?

Question 21

SIOR

Answer 21

Society of Industrial and Office Realtors

Question 22

NAR

Answer 22

A professional association whose local affiliates own and operate MLS systems throughout the united states.