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Real Estate U > Chapter 1: Intro to Real Estate > Flashcards

Chapter 1: Intro to Real Estate Flashcards

1
Q

The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate.

A

Brokerage

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2
Q

A person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee.

A

Real Estate Broker

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3
Q

A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker.

A

Real Estate Salesperson

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4
Q

A type of property that includes one to four dwelling units.

A

Residential Property

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5
Q

Property that produces rental income or that is used in business. Properties with five or more dwelling units are considered this….

A

Commercial Property

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6
Q

Property that is used by companies or persons for manufacturing, warehousing, or the assemblage of components.

A

Industrial Property

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7
Q

A category of real property created as a result of combining the land and its improvements for a single highest and best use.

A

Special Purpose Property

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8
Q

Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections.

A

Mixed-use Property

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9
Q

Changes or additional made to a property, such as walls and roads. These typically increase the value of a property, except in some cases of over improvement.

A

Improvements

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10
Q

A physical characteristic of land describing that land as a unique commodity.

A

Non-homogeneity

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11
Q

The present worth of future benefits.

A

Value

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12
Q

The amount a purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding a transaction.

A

Price

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13
Q

The total dollar expenditure for labor, materials, and other items related to construction.

A

Cost

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14
Q

The amount of goods offered for sale within a given market at a given price during a given time period.

A

Supply

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15
Q

The amount of goods consumers are willing and able to buy at any given price during any given time period.

A

Demand

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16
Q

The study of the social and economic statistics of a community.

A

Demography

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17
Q

The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate is known as…?

A

Brokerage

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18
Q

Property that produces rental income or that is used in business is known as…?

A

Commercial Property

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19
Q

Government held properties include…?

A

Public parks

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20
Q

These real estate brokers specialize in the sale and lease of shopping centers and office buildings…?

A

Commercial brokerage

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21
Q

Property inspectors must be licensed by the Texas Real Estate Commission…?

A

True

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22
Q

A type of property that includes one to four dwelling units is known as…?

A

Residential Property

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23
Q

What is an example of a special purpose property…?

A

Church

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24
Q

Which of the following courses are taken after you obtain your real estate license…?

A

Continuing education courses

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25
Q

The qualifying Real Estate Principles course consists of how many classroom hours in total…?

A

60

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26
Q

How many points must an applicant earn in order to obtain their real estate broker’s license…?

A

3600

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27
Q

The mission of the Education Standard Advisory Committee (ESAC) is to regularly review and revise the curriculum standards, course content requirements, and instructor certification requirements for qualifying and continuing education courses…?

A

True

28
Q

The pre-licensing courses needed to obtain your real estate license are considered what type of courses…?

A

Qualifying education courses

29
Q

What factors can impact the value of real estate…

A

Topography, Prevailing winds, Proximity to transportation

30
Q

Value is the same as price…?

A

False

31
Q

What affects supply…?

A

Cost of labor

32
Q

Real estate prices are directly related to supply and demand…?

A

True

33
Q

Changes or additions made to a property, such as walls and roads are known as…?

A

Improvements

34
Q

The present worth of future benefits is referred to as…?

A

Value

35
Q

A person authorized to act on behalf of another.

A

Agent

36
Q

The employer of an agent.

A

Principal

37
Q

The party the agent brings to the principal as seller or buyer of the property.

A

Customer

38
Q

An agent with full authority over one property of the principal, such as a property manager.

A

General Agent

39
Q

An agent with limited authority to act on behalf of the principal, such as created by a listing.

A

Special Agent

40
Q

A contract in which a property owner employs a real estate broker to market the property described in the contract.

A

Listing Contract

41
Q

That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure.

A

Fiduciary Duty

42
Q

A person in a position of trust and confidence, as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency.

A

Fiduciary

43
Q

Let the buyer beware. The buyer must examine the goods or property and buy at his or her own risk.

A

Caveat Emptor

44
Q

A person in a position of trust and confidence, as between principal and broker, is known as a…?

A

Fiduciary

45
Q

The party the agent brings to the principal as seller or buyer of the property is known as the…?

A

Customer

46
Q

A person authorized to act on behalf of another is known as a/an…?

A

Agent

47
Q

What is exempt from having to obtain a real estate license to buy or sell real estate on someone else’s behalf…?

A

A power of attorney

48
Q

This Act established the real estate licensing requirements in Texas in 1939…?

A

Texas Real Estate Dealers Act

49
Q

Which of the following is a fiduciary duty owed by an agent to their client…?

A

Disclosure

50
Q

An evaluation of a property’s value based on a given point in time that is performed by a professional appraiser during the mortgage origination process.

A

Appraised Value

51
Q

A means of comparing similar type properties, which have recently sold, to the subject property. Commonly used in comparing residential properties.

A

Market Comparison Approach

52
Q

An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land.

A

Cost Approach

53
Q

One of the three methods of the appraisal process generally applied to income producing property, and involves a three-step process – (1) find net annual income, (2) set an appropriate capitalization rate or “present worth” factor, and (3) capitalize the income dividing the net income by the capitalization rate.

A

Income Approach

54
Q

A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.

A

Assessed Value

55
Q

The cost of replacing a structure completely destroyed by an insured hazard.

A

Insured Value

56
Q

The basis of a depreciable asset used to compute the taxable gain from its sale; the basis is acquisition cost plus capital improvements less accrued depreciation.

A

Depreciated Value

57
Q

Mark is looking to purchase a commercial office building. An appraiser was hired to assess the value of the building. What appraisal method did the appraiser use…?

A

Income Approach

58
Q

A non-profit organization in looking to purchase a church. An appraiser was hired to assess the value of the church. What appraisal method did the appraiser use…?

A

Cost Approach

59
Q

Improvements typically ………… in value?

A

Depreciate

60
Q

Price is typically equal to the cost of the property…?

A

False

61
Q

A licensee’s license may be suspended or revoked if….

A

The licensee is convicted of a felony

62
Q

Real estate agents and brokers must be careful not to provide legal advice to their clients…?

A

True

63
Q

Who holds the real estate license of an agent…?

A

The agent’s sponsoring broker

64
Q

In order to obtain a real estate license, an applicant must be at least how many years of age…?

A

18

65
Q

If a real estate salesperson terminates their employment with their sponsoring broker, the salesperson’s license is considered what…?

A

Inactive

66
Q

Real estate licenses are issued for a period not to exceed how many years…?

A

2

67
Q

If a person’s license has been expired for more than 6 months, they are required to do which of the following in order to re-activate their license…?

A

Satisfy the education requirements and retake the State exam

Real Estate U (4 decks)

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