Chapter 1 Intro To Real Estate

Question 1

Brokerage

Answer 1

Aspect of real estate business that pertains to overseeing the needs of parties and completing a transaction

Question 2

Property Management

Answer 2

Management of residential and commercial properties on behalf of the investor/owner of the property

Question 3

What are property managers responsible for?

Answer 3

The day-to-day operations of the property, maintenance and tenant solutions

Question 4

What is the Primary determinant of Real estate Values?

Answer 4

Supply and demand

Question 5

What does a Brokerage do?

Answer 5

Oversees the needs of the parties to a real estate transaction and seeing it to its completion

Question 6

A body of law based on common sense

Answer 6

Common law

Question 7

A body of laws and enacted by federal and state legislative bodies

Answer 7

Statutory law

Question 8

What is an Appraisal ?

Answer 8

Providing a professional opinion of the value of real property

Question 9

What is a Real Estate development?

Answer 9

Purchasing of land for development into residential subdivisions, retail centers and commercial uses

Question 10

What are the benefits of homeownership?

Answer 10

• Occupancy
• Tax Benefits
• Pride of Ownership
• Security
• Investment

Question 11

What are the 3 physical characteristics of Land?

Answer 11

Indestructibility, Immobility, Nonhomogeneity

Question 12

What are the 4 Economic characteristics of Land?

Answer 12

Scarcity, modification, Fixity, Situs

Question 13

Immobility refers to the fact that land…

Answer 13

Cannot be Moved

Question 14

Scarcity comes from the theory of…

Answer 14

Supply and Demand

Question 15

What refers to the fact that land and additions to land, such as buildings, take long periods to pay for themselves?

Answer 15

Fixity

Question 16

Location, Location, Location or…

Answer 16

Situs

Question 17

The demand for Real Estate is Affected by:

Answer 17

• Growth in employment
• Transportation Systems
• Personal Preference
• Availability of Credit
• Federal Government Policy

Question 18

What year was the Texas Real Estate License Act (TRELA) passed?

Answer 18

1939

Question 19

What is the purpose of TRELA?

Answer 19

To protect the public from unscrupulous brokers and sales agents

Question 20

The Texas Real Estate Commission (TREC) was created in..

Answer 20

1949

Question 21

How many Members are in TREC?

Answer 21

9: 6 are Brokers for at least 5 years before being appointed , 3 are Civilians and represent the general public

Question 22

TREC has the power to:

Answer 22

-issue sales agent and broker licenses
- enact rules and regulations
- suspend or revoke licenses
- place license holders on probation
- require additional education
- subpoena books, records, witnesses
- file actions against license holders
- assess administrative penalties of up to $5,000 per day against offending licensed and unlicensed individuals
-promulgate froms

Question 23

The level of service provided to a buyer, seller, landlord or tenant is determined by the presence or lack of an ____________ with the broker

Answer 23

Agency agreement

Question 24

Licensure for _________ requires the completion of pre-licensing courses and a passing grade on a national and state exam

Answer 24

RMLOs (Residential Mortgage Loan Originators)

Question 25

Federal income tax policy favors ________ by allowing the deduction of home mortgage interest and property taxes

Answer 25

Homeownership

Question 27

As job opportunities, expand raw land is develop into residential __________

Answer 27

Subdivisions 

Question 28

__________ designees can hold the following specialty designations: industrial office, sales manager, executive manager or advisory service.

Answer 28

SIOR

Question 29

By far the most important, determinant value in residential real estate is the size of the ________ market

Answer 29

Employment

Question 30

During periods of high, inflation lenders are less willing to commit to __________ mortgages with the fear that holding a portfolio of below market mortgages is a risky business for them.

Answer 30

Long term

Question 31

____________ internationals members are building owners, managers, developers, leasing professionals, corporate facility, managers, asset, managers, and the providers of the products and services needed to operate commercial properties.

Answer 31

BOMA (building owners, and managers association)

Question 32

A local governments authority to pass and enforce __________ and ______ coats, have a profound impact on the type and location of developments within a _______

Answer 32

Building, Zoning, Municipality

Question 33

_______ refers to the location of the property or land from an economic, not geographic viewpoint.

Answer 33

Situs

Question 34

Appraisal is the business of:

Answer 34

Providing a professional opinion of the value of real property

Question 35

A professional association, whose local affiliates own and operate MLS systems throughout the United States, is the_________

Answer 35

NAR national Association of realtors 

Question 36

A license holder was tried in a state District Court on a complaint arising from a real estate transaction. The court ruled that among other transgressions, the defendant had violated the Texas real estate license. At this decision of the judge was based upon_______

Answer 36

Statutory law