Chapter 1 - Intro. to Modern Real Estate Practice

Question 1

The amount of money paid for an item or service.

Answer 1

price

Question 2

The total amount of money incurred for products or services.

Answer 2

cost

Question 3

The body of law based on custom, usage, and court decisions.

Answer 3

common law

Question 4

A person who performs real estate activities while employed by a licensed real estate broker.

Answer 4

sales associate or sales agent

Question 5

The largest real estate organization in the world; members subscribe to a strict code of ethics. Active members are allowed to used the trademarked designation, REALTORS.

Answer 5

National Association of REALTORS (NAR)

Question 6

A place where goods can be bought and sold and a price established.

Answer 6

market

Question 7

A study and description of a population.

Answer 7

demographics

Question 8

The amount of goods people are willing and able to buy at a given price.

Answer 8

demand

Question 9

One who acts as an intermediary on behalf of others for a fee or commision.

Answer 9

broker

Question 10

The appraisal principle that follows the interrelationship of the supply of and demand for real estate. Because appraising is based on economic concepts, this principle recognizes that real property is subject to the influence of the marketplace as with any other commodity.

Answer 10

supply and demand

Question 11

The amount of goods available for sale in the market.

Answer 11

supply

Question 12

A registered trademarked term reserved for the sole use of active members of state and local REALTOR associations affiliated with the National Association of REALTORS.

Answer 12

REALTORS

Question 13

The perceived value of an item based on the benefits given to the owner.

Answer 13

subjective value

Question 14

Property to specialize in. Includes any lawful combination of the other five basic categories of real property, permitted by local zoning.

Answer 14

mixed-use real estate

Question 15

Person who is a member of the national Association of Real Estate Boards. (NAREB).

Answer 15

Realtist

Question 16

Property to specialize in. Includes: All property used for housing, from small city lots to acreage both single family & multi-family in urban, suburban, & rural areas.

Answer 16

Residential Real Estate

Question 17

Property to specialize in. Includes: places of worship, schools, cemeteries, & govn.-held lands.

Answer 17

Special-purpose Real Estate

Question 18

A group of people appointed by the governor to set policy in implementing the License Act. 9 members - 6 brokers, 3 public appointed by governor for 6-yr. staggered terms.

Answer 18

Texas Real Estate Commission (TREC)

Question 19

The statute that controls the licensing of persons permitted to practice real estate brokerage in Texas.

Answer 19

Texas Real Estate License Act (TRELA)

Question 20

Property to specialize in. Includes: farms, timberlands, pastureland, ranches, and orchards.

Answer 20

agricultural real estate

Question 21

Generally, in the US, affect the ownership & transfer of real estate.
U.S. constitution, laws passed by congress, regulations of federal commissions, & agencies, state constitutions, laws passed by state legislatures, ordinances passed by cities, towns, & other local govn., & court decision.

Answer 21

seven (7) sources of law

Question 22

Elimination or reduction of real estate taxes to attract new business to an area.

Answer 22

abatement

Question 23

Upward & downward fluctuations in business activity through the stages of expansion, recession, depression, & revival.

Answer 23

business cycle

Question 24

Types of property to specialize in. Includes: business property, including offices, shopping centers, stores, theaters, hotels, & parking facilities.

Answer 24

commercial real estate

Question 25

Types of property to specialize in. Includes: warehouses, factories, & land in industrial districts.

Answer 25

Industrial real estate.

Question 26

Actual value measured in dollars of an aspect of construction or location. (based on facts)

Answer 26

objective value

Question 27

In law, the requirements established by prior court decisions.

Answer 27

precedent