Ch. 2: Real Estate Specializations

Question 1

What kinds of professionals manage the legal aspects of a development project?

Answer 1

Experts who manage the legal aspects of the development project include real estate attorneys, title companies, surveyors, property insurance companies, and government regulatory officials.

Question 2

What types of professionals are involved in the transfer of rights and interests in real estate?

Answer 2

Real estate brokers and salespersons, mortgage brokers, mortgage bankers, appraisers, insurers, and title companies

Question 3

What’s the difference between mortgage brokers and mortgage bankers?

Answer 3

Mortgage brokers are paid a fee to bring borrowers and lenders together. Mortgage brokers do not service loans. Mortgage bankers are people who sell and service loans.

Question 4

Property is classified into what three types?

Answer 4

Residential
Commercial
Investment

Question 5

List several niche areas in the residential property specialization.

Answer 5

First time homebuyers
For Sale by Owners (FSBO)
Vacation properties
Working with investors
Working as a buyer’s agent

Question 6

What two types of farms exist in the United States?

Answer 6

Family farms and corporate farms

Question 7

What should real estate licensees be knowledgeable in to specialize in land brokerage?

Answer 7

Farms, ranches, recreational, timberland, and other specialty land properties
Undeveloped tracts of land
Transitional and development land
Subdivision and lot wholesaling
Site selection and assemblage of land parcels
Appraisals and land valuation
Auctions
Farm and land management

Question 8

What are two reasons investor clients are different from regular customer/clients?

Answer 8

They do most of the research on their own.
They make offers on many different properties.

Question 9

REO or Real Estate Owned properties are generally a good deal for what two types of real estate buyers?

Answer 9

First Time Homebuyer
Investors

Question 10

What is the main reason a seller would be seek a short sale?

Answer 10

The seller is attempting to negotiate a deal with the lender and avoid foreclosure.

Question 11

What are the three types of real estate auctions?

Answer 11

Absolute Auction
Minimum Bid Auction
Reserve Auction

Question 12

What is foreclosure?

Answer 12

When the lien holder takes ownership in a property due to a variety of possible reasons, but most commonly for the lack of payment on a loan

Question 13

Who services mortgage loans?

Answer 13

Mortgage bankers

Question 14

Any property in which the owner receives payment by another for use or occupation of the property defines:

Answer 14

rental real estate.

Question 15

Water rights, environmental issues, planning and zoning, engineering regulations, and soil types are just a few of the skills required to specialize in:

Answer 15

land sales.

Question 16

Creating real properties from raw land involves capital formation, financing, construction contracting, and:

Answer 16

regulatory approvals.

Question 17

John and Mary’s house is valued at $200,000. Their mortgage is $250,000. They’re upside down $50,000. John is being transferred and they need to sell their home. They will look for an agent specializing in:

Answer 17

short sales

Question 18

A legal document outlining the terms under which one party agrees to rent property from another party defines a:

Answer 18

lease agreement.

Question 19

In a real estate auction if the property is sold to the highest bidder regardless of the price, this is a(n):

Answer 19

absolute auction.

Question 19

The principal areas of government regulation of real estate are usage, taxation, and:

Answer 19

housing administration.

Question 20

Which real estate specialization generally results in a great deal for first-time home buyers and investors?

Answer 20

Real Estate Owned (REO)

Question 21

The process where the lien holder takes ownership in a property due to a variety of possible reasons, but most commonly the lack of payment on a loan is known as a:

Answer 21

foreclosure.

Question 22

A property manager acts in the best interests of:

Answer 22

the owner.

Question 23

Most newly licensed practitioners choose to begin their real estate careers in:

Answer 23

residential brokerage.

Question 24

Who holds money or documents until certain terms and conditions of the escrow are met?

Answer 24

An escrow company

Question 25

Agent selection, declaration and proof of hardship, property valuation, agreement, application, finding a buyer, negotiating, and closing are steps in a:

Answer 25

short sale real estate transaction.

Question 26

Who is a direct agent of the principal (buyer or seller) who is hired for compensation to perform a stated service, such as negotiating the sale of property?

Answer 26

A broker

Question 27

Most newly licensed practitioners choose to begin their real estate careers in:

Answer 27

residential brokerage.

Question 28

A legal document outlining the terms under which one party agrees to rent property from another party defines a:

Answer 28

lease agreement.

Question 29

The type of real estate specialization which would require an understanding of Facility Management is:

Answer 29

real estate property management.

Question 30

The principal areas of government regulation of real estate are usage, taxation, and:

Answer 30

housing administration.

Question 31

In the United States, there are two types of farms, family farms and:

Answer 31

corporate farms.

Question 32

A property manager acts in the best interests of:

Answer 32

the owner.

Question 33

Who can offer prospective buyers information about the various aspects of purchasing, using, or investing in property?

Answer 33

Real estate counselors

Question 34

What refers to property that is owned and used for habitation?

Answer 34

Residential property

Question 35

In a real estate auction if the property is sold to the highest bidder regardless of the price, this is a(n):

Answer 35

absolute auction.