Ch. 2: Real Estate Specializations Flashcards
What kinds of professionals manage the legal aspects of a development project?
Experts who manage the legal aspects of the development project include real estate attorneys, title companies, surveyors, property insurance companies, and government regulatory officials.
What types of professionals are involved in the transfer of rights and interests in real estate?
Real estate brokers and salespersons, mortgage brokers, mortgage bankers, appraisers, insurers, and title companies
What’s the difference between mortgage brokers and mortgage bankers?
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.
Property is classified into what three types?
Residential
Commercial
Investment
List several niche areas in the residential property specialization.
First time homebuyers
For Sale by Owners (FSBO)
Vacation properties
Working with investors
Working as a buyer’s agent
What two types of farms exist in the United States?
Family farms and corporate farms
What should real estate licensees be knowledgeable in to specialize in land brokerage?
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
What are two reasons investor clients are different from regular customer/clients?
They do most of the research on their own.
They make offers on many different properties.
REO or Real Estate Owned properties are generally a good deal for what two types of real estate buyers?
First Time Homebuyer
Investors
What is the main reason a seller would be seek a short sale?
The seller is attempting to negotiate a deal with the lender and avoid foreclosure.
What are the three types of real estate auctions?
Absolute Auction
Minimum Bid Auction
Reserve Auction
What is foreclosure?
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
Who services mortgage loans?
Mortgage bankers
Any property in which the owner receives payment by another for use or occupation of the property defines:
rental real estate.
Water rights, environmental issues, planning and zoning, engineering regulations, and soil types are just a few of the skills required to specialize in:
land sales.
Creating real properties from raw land involves capital formation, financing, construction contracting, and:
regulatory approvals.
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:
short sales
A legal document outlining the terms under which one party agrees to rent property from another party defines a:
lease agreement.
In a real estate auction if the property is sold to the highest bidder regardless of the price, this is a(n):
absolute auction.
The principal areas of government regulation of real estate are usage, taxation, and:
housing administration.
Which real estate specialization generally results in a great deal for first-time home buyers and investors?
Real Estate Owned (REO)
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:
foreclosure.
A property manager acts in the best interests of:
the owner.
Most newly licensed practitioners choose to begin their real estate careers in:
residential brokerage.
Who holds money or documents until certain terms and conditions of the escrow are met?
An escrow company
Agent selection, declaration and proof of hardship, property valuation, agreement, application, finding a buyer, negotiating, and closing are steps in a:
short sale real estate transaction.
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?
A broker
Most newly licensed practitioners choose to begin their real estate careers in:
residential brokerage.
A legal document outlining the terms under which one party agrees to rent property from another party defines a:
lease agreement.
The type of real estate specialization which would require an understanding of Facility Management is:
real estate property management.
The principal areas of government regulation of real estate are usage, taxation, and:
housing administration.
In the United States, there are two types of farms, family farms and:
corporate farms.
A property manager acts in the best interests of:
the owner.
Who can offer prospective buyers information about the various aspects of purchasing, using, or investing in property?
Real estate counselors
What refers to property that is owned and used for habitation?
Residential property
In a real estate auction if the property is sold to the highest bidder regardless of the price, this is a(n):
absolute auction.
