Chapter 1

Question 1

Is bringing together parties (the buyers and the sellers or the landlord and tenant) in a real estate transaction

Answer 1

Brokerage

Question 2

The process of estimating the market value of real estate.

Answer 2

Appraisal

Question 3

Provide independent advise to individuals and firms regarding the purchase and use of real estate investments.

Answer 3

Real Estate Counseling

Question 4

includes instruction for both real estate practitioners and the general public.

Answer 4

Real Estate Education

Question 5

an area of specialization in real estate services

Answer 5

Urban Planning

Question 6

conduct a thorough survey of a commercial on residential property’s structure: its mechanical , plumbing and electrical systems, and site coordination.

Answer 6

Property Inspection

Question 7

is the largest and best-known professional association in the real estate industry.

Answer 7

National Association of REALTORS (NAR)

Question 8

registered trademark of NAR

Answer 8

REALTORS

Question 9

Classes of Real Estate (5)

Answer 9

1) Residential
2) Commercial
3) Industrial
4) Agricultural
5) Special Purpose Real Estate

Question 10

Includes single-family residences, condos, cooperatives, apartment, duplex and triplexes, town homes, and mobile homes

Answer 10

Residental

Question 11

Used for business and includes retail stores and shopping malls office buildings theaters and parking lots.

Answer 11

Commercial

Question 12

includes factories, warehouses, and research and development facilities

Answer 12

industrial

Question 13

includes farms, orchards, timberland, ranches, and hatcheries

Answer 13

agriculture

Question 14

Includes churches, government land, hospitals, and schools

Answer 14

Special Purpose Real Estate

Question 15

describe the physical attributes of land

Answer 15

physical characteristics

Question 16

Physical characteristics of real estate are: (3)

Answer 16

1) Immobility
2) Indestructibility
3) Non homogeneity

Question 17

Affect the value of real estate

Answer 17

Economic Characteristics.

Question 18

Economic Characteristics of real estate are (4)

Answer 18

1) Scarcity
2) Modification
3) Permanence of Investment (fixity)
4) Area Preference (situs)

Question 19

Geographical location of the property always remains the same

Answer 19

Immobility

Question 20

Land cannot be destroyed or worn out

Answer 20

Indestructibility (durability)

Question 21

no parcel of real estate are exactly alike.

Answer 21

Non Homogeneity

Question 22

Means that the supply of real estate is limited

Answer 22

Scarcity

Question 23

states that changes in a parcel of land affect its value (both favorably or unfavorable)

Answer 23

Modifications (improvements)

Question 24

means the investments in real estate are long term

Answer 24

Permanence of investment (fixity)

Question 25

refers to peoples preference for a certain area

Answer 25

Situs (area Preference)

Question 26

Prices increase when demand increases or supply decresses

Answer 26

Seller’s Market

Question 27

Prices decrease when demand decreases or supply increases

Answer 27

Buyer’s Market

Question 28

refers to the characteristics of the population: age distribution, family size, and population movements

Answer 28

demographics

Question 29

indication of the demand for property in the area, and there may be several rates based on the type of property

Answer 29

Vacancy Levels