Chapter 1 Flashcards
What is an Absentee Owner?
Property owner who does not reside in the property and who often relies on a property manager to manage the investment
What is an appraisal?
The process of developing and communicating an estimate of a property’s value.
What is an appraiser?
A state-certified or licensed individual that are hired to determine the value of a property when taken by eminent domain
What is a broker’s price opinion (BPO)
A written opinion of the value of real property.
- Broker can charge a fee for bpo as long as it’s not labeled as a loan
- not an appraisal
What is a business broker?
Real estate licensees who engage in the sale, purchase, or leasing of businesses
What is business opportunity?
The sale or leasing of an existing business, including the sale of tangible and intangible assets
What is a community association manager (CAM)?
An individual that holds a CAM license when the community association consists of more than 10 units and has an annual budget in excess of $100k.
- Not required to manage apartments, commercial property, or single-family dwellings.
- Only applies to mobile home parks, planned unit developments, homeowners association,cooperatives, timeshares, condos, & other residential units.
What is a dedication?
The gift of land by an owner, in this case a developer, to a government body for public use.
What is a subdivision plat map?
An engineer’s plan for land use superimposed on a map of the land to be developed.
What is a farm area?
A specific area of a city and becoming an expert in that area
What does farming an area consist of?
Maintaining data on each property, including when it was built, the sale history, typical marketing time, assessed value, the amount of property taxes, and so on.
What is a target market?
Expertise in locating prospects
What is a follow-up?
What a sales associate does for buyers and sellers after the sale.
- results in good reputation, future referrals, and word-of-mouth advertising.
What is a multiple listing service (MLS)?
A database that allows real estate brokers representing sellers under a listing contract to share information about properties with real estate brokers who may represent potential buyers.
What is a REALTOR ®️?
Real estate licensee who is a member of the NAR
What is the NAR?
National Association of REALTORS
- promotes ethics and education in the real estate industry
What is property management?
Professional service conducted by a person or company hired to maintain and manage property on behalf of property owners
What does property management typically involve?
The leasing, managing, marketing, and maintenance of a property.
What is a mortgage loan originator (MLO)?
Someone who is licensed to receive compensation for taking a residential mortgage application or negotiating the terms of a residential loan.
- real estate licensees cannot accept a referral fee from a lender unless they are licensed as an MLO
What are the three categories of residential construction?
Speculative (spec) homes, custom, and tract homes
