Chapter 1 Flashcards
What is a comparative market analysis?
A value estimate based on recent sales of similar properties in the same neighborhood.
What is valuation?
Real estate licensees must be able to discern important differences and properly understand how those differences translate into value.
A residential transaction is defined as…
Agricultural properties of ten acres of less.
What is farming?
A practice in which a licensee concentrates on one type or style of property or on one particular neighborhood.
What does a property manager’s responsibilities include?
Locating tenants, collecting rents, handling the payment of taxes, insurance, and other operating expenses, maintaining records, and scheduling maintenance.
What is counseling?
It is a highly specialized service and requires a greater level of knowledge and experience than any other facet of the real estate profession.
What does USPAP stand for?
Uniform Standards of Professional Appraisal Practices
In what circumstances can a real estate licensee perform an appraisal?
A real estate licensee can perform an appraisal under the real estate license law if the appraisal is not to be used in a federally regulated transaction, the report is prepared in accordance with USPAP, and the transaction value is $250,000 or less.
What is the lifeblood of the real estate business?
Borrowed money. Most real estate transactions involve financing to some extent.
What is tract building?
It is when a developer acquired a large tract of land and builds a model center from which sales may be made.
What is a dedication?
The ownership of streets and sidewalks is typically conveyed by a developer to the city or county upon completion of construction of a subdivision. This transfer of ownership is referred to as dedication and gives the public the right of use.
What is the National Association of REALTORS(NAR)?
It is the nation’s largest trade and professional association, with a goal of preserving the right of individuals to own real property through an exchange of information.
Which members are called REALTORS(r)?
Practitioners from all areas of expertise in the real estate profession. Members must agree to abide by a strict Code of Ethics and conduct their business under the Standards of Practice, which are designed to specify conduct required under the Code of Ethics and provide optimum service to the public.
The term REALTOR(r) is a registered trademark of….
The NAR.
At what level does planning and zoning, property taxation, building and health codes and regulations, and building moratoriums which affect development, play a significant role in the cost and desirability of real estate?
The local level.
A contractor who builds on his or her own lot in the hope of finding a purchase upon completion is building on ___________.
spec (or speculation)
One type of a residential sales transaction involves the sale of any improved residential property of _____ units or less.
four
The term _________ is a registered trademark of the National Association of REALTORS(r) and may be used only by the members of the organization.
REALTOR(r)
Most real estate licensees are involved in __________ brokerage.
residential
Property management has grown as a service of real estate primarily because of an increase in _______________.
Absentee ownership
That portion of the Federal Financial Institutions Reform, Recovery and Enforcement Act that requires the use of a state-licensed or state-certified appraisers is __________.
Title XI
An estimate of the value of property developed by a real estate licensee for use in listing or selling property is known as a ____________.
Comparative market analysis
Mortgage loan originators are licensed in Florida by the _____________.
Department of Financial Services
The category of construction that applies when a property owner employs a contractor to build according to their individual specifications is called ______________.
Custom building
After completion of construction of a subdivision, the streets, sidewalks, and common areas are frequently conveyed to the city or county in the process called ____________.
Dedication
Appraising is the process of developing an ________ of value.
Opinion
Valuing a business requires an analysis of _____________ and ____________.
Balance sheets, financial statements
The three areas of expertise real estate licensees bring to the transaction relate to ___________________.
Valuation, marketing, and property transfer
The composite value of the real and personal property, plus the intangible assets of the business, is called _________________ value.
Going concern value
Part _______ of Florida Statute 475 covers regulation and licensing of real estate practitioners, while Part _______ covers the registration, licensing, and certification of appraisers in Florida
I, II
True or False. A mortgage loan originator must have a separate license?
True
A real estate appraiser’s fee for professional service is based on….
The time and difficulty of the appraisal
Which of the following best describes the real estate brokerage business?
A. service business
B. simple business
C. business with few opportunities available
D. construction business
A. Service business
When a developer completes construction of a new subdivision, all streets, electric, water, and sewer installation are finished and deeded to the city or county. What is this process called?
Dedication
Which of the following is NOT one of the responsibilities of a property manager?
A. renting property for an absentee owner
B. collecting rent
C. overseeing maintenance
D. preparing lease
D. Preparing leases
What does the term farming refer to in real estate?
A. specializing in one geographic area B.working in a cooperative manner C.specializing in agricultural properties D. specializing in the sales of orange groves or cattle farms
A. Specializing in one geographic area
Which insurance policies can a real estate licensee offer to the public without additional state licensing? A. Flood insurance B. Fire insurance C. Renters insurance D. None of the above
D. None of the above
What is the purpose of the National Association of REALTORS(r)?
Preserve the right of individuals to own real property to an exchange of information
What does the designation of REALTORS(r) signify?
The designation identifies the real estate professional as a member of NAR
A developer contracts to build a home according to the buyers specifications. This is an example of which type of building? A. track B. custom C. speculative D. subdivision
B. Custom
The federal state and local governments all play a role in the regulation of real estate. In which of the following areas would the local government have the most impact?
Property taxes, building moratoriums, and zoning
How would you best describe licensees who are involved in business brokerage?
They must be able to analyze financial statements and understand balance sheets
In which of the following areas are real estate brokers NOT required to be knowledgeable? A. marketing B. valuation C. property transfer D. accounting
D. accounting
Which service provided by real estate brokers requires the most experience and knowledge? A. property management B. counseling C. appraising D. agricultural sales
B. Counseling
An appraiser who is registered, licensed or certified under Florida Statute 475, Part II, must be utilized in which of the following?
A. All appraisals
B. The appraisal of residential property C. The appraisal of nonresidential property
D. Federally related transactions
D. Federally related transactions
