Chapter 1 - Introduction to the Real Estate Business Flashcards
The business of bringing people together in a real estate transaction is called…
Brokerage
A person or company licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services is called a…
Broker
A licensed real estate _____________is employed by or associated with the broker to perform brokerage activities on behalf of or for the broker, and may also be referred to as a…
SALESPERSON…. or SALES ASSOCIATE or ASSOCIATE LICENSEE.
A person who has satisfied the requirements of a licensing agency (received a license), as authorized by state legislation is a…
REAL ESTATE LICENSEE
The process of developing an OPINION of a property’s market value, based on established methods and the appraiser’s professional judgement is called…
An APPRAISAL
MAI stands for…
MEMBER OF APPRAISAL INSTITUTE
A person or company hired to maintain and manage property on behalf of the property owner is called a…
PROPERTY MANAGER
The business of providing the funds that make real estate transactions possible is called…
FINANCING
__________is the dividing of a single property into smaller parcels.
SUBDIVISION
________involves the construction of improvements that benefit the land. These improvements may be either on-site or off-site.
DEVELOPMENT
__________is a profession that combines a practitioner’s interest in real estate with skills and training in the construction trades.
HOME INSPECTION
Providing clients with competent independent advice based on sound professional judgment is called…
COUNSELING
Real estate education is available to both…
PRACTITIONERS and CONSUMERS
Many other professionals are involved in real estate including…
LAWYERS, LAND-USE PLANNERS EMPLOYED BY STATE AND LOCAL AGENCIES and TAX ASSESSORS.
The largest trade organization that serves the real estate business is….
NATIONAL ASSOCIATION OF REALTORS (NAR)
ETHICS refers to a system of moral principles, rules, and standard of conduct. These moral principles do two things….
- They establish standards for integrity and competence
2. They define a code of conduct for relations within the industry.
A CODE OF ETHICS is…
a written system of standards for ethical conduct. The code contains statements designed to advise, guide, and regulate behavior. They are STANDARDS OF PRACTICE.
There are SIX categories of REAL PROPERTY. They are…
- Residential
- Commercial
- Mixed Use - property that allows for two uses-commercial and residential
- Industrial - warehouses, factories
- Agricultural - farms, ranches, orchards
- Special Purpose - churches, schools, cemeteries…
A SINGLE-FAMILY DETACHED HOUSE is a type of house…and the most popular. What do you need to show ownership?
DEED
An APARTMENT BUILDING is a type of house. What do you need to show occupancy?
LEASE
The CONDOMINIUM is a type of housing where a owner owns an individual unit and also shares ownership with other unit owners of common facilities called…
COMMON ELEMENTS or COMMON AREAS
A Cooperative is a type of housing where the owners do not own the units; instead, each owner owns shares in a corporation that holds title to the real estate. Each shareholder receives a….
PROPRIETARY LEASE to a specified unit in the building.
Note: proprietary leases are only associated with cooperatives.
PUDs or PLANNED UNIT DEVELOPMENTS or MASTER-PLANNED COMMUNITIES are types of housing that may consist entirely of residences, but they can also serve to merge such diverse land uses as…
HOUSING, RECREATION and COMMERCIAL UNITS into one self-contained development. PUDs are planned under special zoning ordinances.
NOTE: Westhaven, Lenox Village & Fieldstone Farms are PUDs.
High-rise developments, sometimes called____________
are types of housing that combine office space, stores, theaters, and apartment units into a single vertical community.
MIXED-USE DEVELOPMENTS (MUDs)
CONVERTED-USE PROPERTIES are types of housing where…
factories, warehouses, office buildings, hotels, schools, churches, and other structures that have been converted to residential use.
FACTORY-BUILT housing is a type of housing also known as…
a MOBILE HOMES or MODULAR HOMES
A ________ is a place where goods can be bought and sold.
MARKET
Prices for goods and services in the market are established by the operation of…
SUPPLY AND DEMAND.
When supply increases and demand remains stable, prices…
GO DOWN
When demand increases and supply remains stable, prices …
GO UP
___________means that, no matter how identical they may appear, no two parcels of real estate are every exactly alike.
UNIQUENESS
__________refers to the fact that property cannot be relocated to satisfy demand where supply is low, nor can buyers always relocate to areas with greater supply.
IMMOBILITY
Factors affecting real estate SUPPLY are:
- Labor force, construction, and material costs.
- Government controls and financial policies; and
- Local government factors.
Factors affecting real estate DEMAND are:
- Population
- Demographics, (the study & description of a population)
- Employment and wage levels
