Ch.1 Introduction To Real Estate

Question 1

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

Answer 1

True

Question 2

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

Answer 2

Day-to-day operations
Maintenance
Tenant relations

Question 3

Mortgage brokers are now known as:

Answer 3

RMLOs

Residential Mortgage Lenders Originators

Question 4

The largest trade organization representing real estate professionals is:

Answer 4

NAR - National Association if REALTORS

Question 5

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

Answer 5

Value

Question 6

Scarcity is derived from the theory of supply and demand.

T or F

Answer 6

True

Question 7

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

Answer 7

False

Why? It tends to restrict supply

Question 8

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

T or F

Answer 8

True

Question 9

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

Answer 9

False

Why? it was the CCIM

Question 10

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

T or F

Answer 10

True

Question 11

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

T or F

Answer 11

False

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

Question 12

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

Answer 12

True

Question 13

Immobility refers to the fact that land cannot be destroyed.

T or F

Answer 13

False

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

Question 14

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

T or F

Answer 14

True

Question 15

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

Answer 15

False

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

Question 16

Appraisal

Answer 16

An opinion of value

Question 17

Statutory law

Answer 17

Law based on legislation

Question 18

Non-homogeneity

Answer 18

No two pieces of land are alike

Question 19

Fixity

Answer 19

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

Question 20

Common law

Answer 20

Law based upon local custom

Question 21

Scarcity

Answer 21

Derived from the theory of supply and demand

Question 22

Modification

Answer 22

Improvements affect value

Question 23

Immobility

Answer 23

Land cannot be moved

Question 24

RMLO

Answer 24

A loan officer

Question 25

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

Answer 25

Agency agreement

Question 26

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

Answer 26

Mortgage lending

Question 27

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.

Answer 27

Home ownership, federal reserve

Question 28

As job opportunities expand, raw land is developed into ___________

Answer 28

Residential subdivisions

Question 29

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

Answer 29

SIOR | Society of Industrial and Office Realtors

Question 30

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.

Answer 30

Long-term mortgages

Question 31

_____________ 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

Answer 31

BOMO

Question 32

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

Answer 32

Type of, location of, municipality

Question 33

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

Answer 33

Situs

Question 34

Property management

Answer 34

Manages residential and commercial properties on behalf of an owner

Question 35

Appraisal

Answer 35

Gives professional opinion of the value of real property

Question 36

Mortgage Lending

Answer 36

Provides money for conditional transfer or pledge of real estate

Question 37

Apartment Locators

Answer 37

Work for firms that specialize in locating units for tenants

Question 38

Home Inspectors

Answer 38

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

Question 39

Real Estate Development

Answer 39

Involves the acquisition of land for development

Question 40

Oil and gas

Answer 40

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

Question 41

TREC

Answer 41

Texas Real Estate Commission

Question 42

IREM

Answer 42

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

Question 43

What does CCIM stand for?

Answer 43

Certified Commercial Investment Member

Question 44

SIOR

Answer 44

Society of Industrial and Office REALTORS

Question 45

What does ICSC stand for and it’s purpose?

Answer 45

International Council of Shopping Centers - To advance the shopping

Question 46

What does BOMA stand for?

Answer 46

Building Owners and Managers Association

Question 47

What are benefits of home ownership?

Answer 47

``` Occupancy Tax benefits Pride of ownership Security Investment ```

Question 48

What are 3 physical characteristics of land?

Answer 48

Indestructibility Immobility Non homogeneity

Question 49

What are 4 economic characteristics of land?

Answer 49

Scarcity Modification Fixity Situs

Question 50

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

Answer 50

``` Land costs Construction Taxation Economics Local government building codes and zoning ordinances ```

Question 51

The demand for real estate is affected by:

Answer 51

Growth in employment Transportation systems Personal preference Federal government policy