Ch.1 Introduction To Real Estate Flashcards
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
True
Property managers are generally responsible for the _________ of a property that they manage.
Day-to-day operations
Maintenance
Tenant relations
Mortgage brokers are now known as:
RMLOs
Residential Mortgage Lenders Originators
The largest trade organization representing real estate professionals is:
NAR - National Association if REALTORS
A fair return or equivalent in goods, services, or money for something exchanged is:
Value
Scarcity is derived from the theory of supply and demand.
T or F
True
Local government building codes and zoning ordinances, regardless of their perceived value, do not restrict supply.
T or F
False
Why? It tends to restrict supply
Once a statute had been enacted, its enforcement is generally assigned to an agency of the government.
T or F
True
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
False
Why? it was the CCIM
Oil and gas companies employ a large number of individuals with a real estate background.
T or F
True
Common laws are body of laws and regulations enacted by federal and state legislative bodies.
T or F
False
Why? Developed in England and based upon “common sense” and local custom
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
True
Immobility refers to the fact that land cannot be destroyed.
T or F
False
Why? Refers to the fact that land can’t be moved
As labor and material costs increase, supply may be constructed.
T or F
True
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
False
Why? Mortgage lending- lends money, appraisers- provide opinion of property value
Appraisal
An opinion of value
Statutory law
Law based on legislation
Non-homogeneity
No two pieces of land are alike
Fixity
Land and additions to the land take a long period of time to pay for itself
Common law
Law based upon local custom
Scarcity
Derived from the theory of supply and demand
Modification
Improvements affect value
Immobility
Land cannot be moved
RMLO
A loan officer
The level of service provided to a buyer, seller, landlord or tenant is determined by the presence or lack of an _____________with the broker
Agency agreement
Licensure for __________ requires the completion of pre-licensing courses and a passing grade on a national and state exam.
Mortgage lending
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.
Home ownership, federal reserve
As job opportunities expand, raw land is developed into ___________
Residential subdivisions
_______________ designers can hold the following specialty designations: industrial, office, sales manager, executive manager, or advisory service.
SIOR
Society of Industrial and Office Realtors
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.
Long-term mortgages
_____________ 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
BOMO
The authority that local government had to pass and enforce building and zoning codes had a profound impact on the ______________ and ____________ development within a _______________.
Type of, location of, municipality
_____________ refers to the location of the property or land from an economic, not a geographic, viewpoint.
Situs
Property management
Manages residential and commercial properties on behalf of an owner
Appraisal
Gives professional opinion of the value of real property
Mortgage Lending
Provides money for conditional transfer or pledge of real estate
Apartment Locators
Work for firms that specialize in locating units for tenants
Home Inspectors
Can be knowledgeable of HVAC, plumbing, electrical, and construction methods
Real Estate Development
Involves the acquisition of land for development
Oil and gas
May do title work to determine mineral ownership and might negotiate oil and gas leases with mineral owners
TREC
Texas Real Estate Commission
IREM
Institute of Real Estate Management - dedicated to within business practices, maximizing the value of investment real estate, and promoting superior management
What does CCIM stand for?
Certified Commercial Investment Member
SIOR
Society of Industrial and Office REALTORS
What does ICSC stand for and it’s purpose?
International Council of Shopping Centers - To advance the shopping
What does BOMA stand for?
Building Owners and Managers Association
What are benefits of home ownership?
Occupancy Tax benefits Pride of ownership Security Investment
What are 3 physical characteristics of land?
Indestructibility
Immobility
Non homogeneity
What are 4 economic characteristics of land?
Scarcity
Modification
Fixity
Situs
Supply and demand are perhaps the primary determinants of real estate values.
Supply can be restricted by:
Land costs Construction Taxation Economics Local government building codes and zoning ordinances
The demand for real estate is affected by:
Growth in employment
Transportation systems
Personal preference
Federal government policy
