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Principles of Real Estate 1 > Ch.1 Introduction To Real Estate > Flashcards

Ch.1 Introduction To Real Estate Flashcards

1
Q

Brokerage is the aspect of the real estate business that pertains to overseeing the needs of the parties and completing a transaction.

True or False

A

True

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2
Q

Property managers are generally responsible for the _________ of a property that they manage.

A

Day-to-day operations
Maintenance
Tenant relations

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3
Q

Mortgage brokers are now known as:

A

RMLOs

Residential Mortgage Lenders Originators

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4
Q

The largest trade organization representing real estate professionals is:

A

NAR - National Association if REALTORS

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5
Q

A fair return or equivalent in goods, services, or money for something exchanged is:

A

Value

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6
Q

Scarcity is derived from the theory of supply and demand.

T or F

A

True

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7
Q

Local government building codes and zoning ordinances, regardless of their perceived value, do not restrict supply.
T or F

A

False

Why? It tends to restrict supply

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8
Q

Once a statute had been enacted, its enforcement is generally assigned to an agency of the government.

T or F

A

True

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9
Q

The SIOR Institute was established in 1954 to give commercial real estate practitioners an opportunity to further their business practices through education and networking opportunities.

T or F

A

False

Why? it was the CCIM

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10
Q

Oil and gas companies employ a large number of individuals with a real estate background.

T or F

A

True

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11
Q

Common laws are body of laws and regulations enacted by federal and state legislative bodies.

T or F

A

False

Why? Developed in England and based upon “common sense” and local custom

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12
Q

Fixity refers to the fact that land, and additions to the land such as building, take long periods of time to pay for themselves.

T or F

A

True

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13
Q

Immobility refers to the fact that land cannot be destroyed.

T or F

A

False

Why? Refers to the fact that land can’t be moved

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14
Q

As labor and material costs increase, supply may be constructed.

T or F

A

True

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15
Q

Mortgage lending is the business of providing a professional opinion of the value of real property. Appraisers are the licensed and trained individuals who provide the informed decisions of the value of real property.

T or F

A

False

Why? Mortgage lending- lends money, appraisers- provide opinion of property value

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16
Q

Appraisal

A

An opinion of value

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17
Q

Statutory law

A

Law based on legislation

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18
Q

Non-homogeneity

A

No two pieces of land are alike

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19
Q

Fixity

A

Land and additions to the land take a long period of time to pay for itself

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20
Q

Common law

A

Law based upon local custom

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21
Q

Scarcity

A

Derived from the theory of supply and demand

22
Q

Modification

A

Improvements affect value

23
Q

Immobility

A

Land cannot be moved

24
Q

RMLO

A

A loan officer

25
Q

The level of service provided to a buyer, seller, landlord or tenant is determined by the presence or lack of an _____________with the broker

A

Agency agreement

26
Q

Licensure for __________ requires the completion of pre-licensing courses and a passing grade on a national and state exam.

A

Mortgage lending

27
Q

Federal income tax policy favors ___________ by allowing the deduction of home mortgage interest and property taxes, and the ____________ monetary policies can expand or constrict the nationwide supply of mortgage funds.

A

Home ownership, federal reserve

28
Q

As job opportunities expand, raw land is developed into ___________

A

Residential subdivisions

29
Q

_______________ designers can hold the following specialty designations: industrial, office, sales manager, executive manager, or advisory service.

A

SIOR

Society of Industrial and Office Realtors

30
Q

During periods of high inflation, lenders are less willing to commit to ____________ with the fear that holding a portfolio of below market mortgages is a risky business for them.

A

Long-term mortgages

31
Q

_____________ International’s members are building owners, managers, developers, leasing professionals, corporate facility managers, asset managers, and the providers of the products and services needed to operate commercial properties

A

BOMO

32
Q

The authority that local government had to pass and enforce building and zoning codes had a profound impact on the ______________ and ____________ development within a _______________.

A

Type of, location of, municipality

33
Q

_____________ refers to the location of the property or land from an economic, not a geographic, viewpoint.

A

Situs

34
Q

Property management

A

Manages residential and commercial properties on behalf of an owner

35
Q

Appraisal

A

Gives professional opinion of the value of real property

36
Q

Mortgage Lending

A

Provides money for conditional transfer or pledge of real estate

37
Q

Apartment Locators

A

Work for firms that specialize in locating units for tenants

38
Q

Home Inspectors

A

Can be knowledgeable of HVAC, plumbing, electrical, and construction methods

39
Q

Real Estate Development

A

Involves the acquisition of land for development

40
Q

Oil and gas

A

May do title work to determine mineral ownership and might negotiate oil and gas leases with mineral owners

41
Q

TREC

A

Texas Real Estate Commission

42
Q

IREM

A

Institute of Real Estate Management - dedicated to within business practices, maximizing the value of investment real estate, and promoting superior management

43
Q

What does CCIM stand for?

A

Certified Commercial Investment Member

44
Q

SIOR

A

Society of Industrial and Office REALTORS

45
Q

What does ICSC stand for and it’s purpose?

A

International Council of Shopping Centers - To advance the shopping

46
Q

What does BOMA stand for?

A

Building Owners and Managers Association

47
Q

What are benefits of home ownership?

A 
Occupancy
Tax benefits
Pride of ownership 
Security
Investment
48
Q

What are 3 physical characteristics of land?

A

Indestructibility
Immobility
Non homogeneity

49
Q

What are 4 economic characteristics of land?

A

Scarcity
Modification
Fixity
Situs

50
Q

Supply and demand are perhaps the primary determinants of real estate values.
Supply can be restricted by:

A 
Land costs
Construction 
Taxation
Economics
Local government building codes and zoning ordinances
51
Q

The demand for real estate is affected by:

A

Growth in employment
Transportation systems
Personal preference
Federal government policy

Principles of Real Estate 1 (7 decks)

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