Chapter 1: Intro To R.E. Biz Flashcards
Point of contact between 2 or more people in negotiating the sale, purchase, or rental property?
Real Estate Broker
A person, or company licensed to buy, sell, exchange, or lease real property for others & charges a fee for these services?
Broker
A licensee employed by, or associated with the broker and conducts brokerage activities on behalf of or for the broker?
Real Estate Salesperson
A person who has satisfied the requirements set forth by a licensing agency or state legislation?
Licensee
Process of estimating a property’s market value based on established methods and the appraiser’s professional judgment?
Appraisal
Visual examination of the components of a residential building, including the plumbing system, electrical system, structural components, foundation, roof & the heating and cooling system?
Home Inspection
A person or company hired to maintain and manage property on behalf of its owner?
Property Manager
The scope of the manager’s work that depends on the terms of the individual employment contract?
Management Agreement
The business of providing the funds that make real estate transactions possible when buyers do not have cash for the full purchase price?
Financing
Provides title insurance services to buyers, sellers, lenders & developers?
Title Agencies
The splitting of a single property into smaller parcels?
Subdivision
The construction of improvements on the land?
Development
Providing clients with component independent advice based on sound professional judgment?
Counseling/Consulting
Colleges, universities, private schools & trade organizations that are available to both practitioners and consumers?
Real Estate Education
All real estate used for single-family or multi-family housing?
Residential Property
Business real estate, including office space, shopping centers, stores, theaters, hotels and parking facilities?
Commercial Property
Property that allows for 2 uses, commercial and residential in the same building?
Mixed-Use Property
Warehouses, factories, land in industrial districts and power plants?
Industrial Property
Farms, timberland, ranches and orchards?
Agricultural Property
Churches, schools, cemeteries and government-held lands?
Special Purpose Property
Involves the transfer of title and ownership rights?
Sales Market
In which space is used temporarily by lease?
Rental Market
Place where goods and services can be bought and sold and where price levels can be established based on supply and demand?
Market
The amount of goods available in the market to be sold at a given price?
Supply
The amount of goods people are willing and able to buy at a given price?
Demand
No 2 parcels of real estate are ever exactly alike?
Uniqueness
The fact that property cannot be relocated to satisfy demand where supply is low?
Immobility
Factors that tend to affect the supply side of the real estate markets supply and demand balance?
1) Labor force
2) Construction & material costs
3) Government controls
4) Government financial policies
A charge made by a lender for the use of money?
Interest
The minimum interest rate set by the Federal Reserve for lending to other banks?
A rate used for discounting bills of exchange?
Discount Rate
Factors that tend to affect the demand side of the real estate market?
1) Population
2) Demographics
3) Employment & wage levels
The number of people in an area and the study and description of a population?
Demographics
Business of bringing people together in a real estate transaction?
Brokerage
