Chapter 1 Key Terms Flashcards
RE Professionals
Individuals and business orgs who main priority is to perform or provide real estate services/functions or duties
Property Managers (Think about if you had properties that you needed help managing; what all would they help with?)
Professionals who oversee properties for owners; Maintain property conditions and financial performance; Finding tenants and collecting rent; rehabbing space and constructing new space; ordering repairs and maintaining property
Asset Managers
investment is their main objectives of their clients; oversee groups and portfolios; DO NOT deal with day-day operations
Broker
performs real estate services for buyers and sellers; locating, negotiating and closing process etc.
Agent
a sponsored employee or independent contractor of a broker; hired by principle (broker OR business entity) to perform RE duties and services
Lenders (Mortgage Bankers)
Make loans
Title Company
Completes “Abstract of Title”- search of records for property in county; handle all disbursements of money
Appraisers
trained and licensed to appraise properties for other parties (find the value of property or how much its worth)
Mortgage Broker
bring borrowers and lenders together for a fee; DO NOT service loans
Professional Inspector
Inspect properties and gives opinions of property conditions; Includes: Structural, Electrical and Mechanical systems
Surveryors
licensed to take formal measurements of boundaries, dimensions, and elevations of a parcel (a piece of land) of real estate
Residential Property
People own and use for housing; apartments, duplexes, single family homes
Commercial Property
Retail or office space; industrial (factories)
Investment Property
In property that owners hold for investments
TREC: Texas RE Commission/ How many members/member break down/who appoints
administering and enforcing laws; pass regulations to clarify or refine state statues; Administering TRELA; 9 members- 6 brokers, 3 public; governor appoints
Property Value
worth of piece of land based on buyer and seller agreement; determined by what market will bear; community factors- nice school districts, highways, strip malls, power plants etc.
Value
present worth of future benefits that person could gain from owning real estate
Price
Amount of money or other asset that buyer has agreed to pay and seller agreed to accept to complete exchange
Market Equilibrium Principle
demand moves to meet supply and supply moves to meet demand
Unit of Residential Demand
a household; lease vs buy; house vs apartment
Unit of Commercial (retail/office) & Industrial RE Demand
square footage; demand for lease space vs. purchase space; improved area rather than total lot area
Supply/Units for Residential, Commercial/Industrial and Agricultural/Influenced by what?
how much of something is available for sale or lease; dwellings units (residential); sq ft (commercial/industrial), acres (agricultural); influenced by cost (labor), availability of financing, investment returns, govn’t and community regulation and planning
Demand/ Each measured how- Residential, Commercial/Industrial and Agricultural
How many people actually want something (supply); households (residential), sq ft (commercial/industrial), acres (agricultural)
ARELLO & it’s responsibility
Association Real Estate License Law Officials; promotes consistent policies and standards for license law and enforcement of license law
Topics of laws most relevant to agents and brokers
Agency, Contracts, Disclosure, Environmental Impact, Fair Housing
Market Equilibrium
Supply equals demand in market trend
Value is based on what 4 things?
Scarcity (availability)
Utility (usefulness)
Desire (How much do I want it)
Purchase Power (can afford to pay for it)
If supply goes UP and demand goes DOWN price does what?
Price decreases
If demand goes UP and supply goes DOWN price does what?
Price increases
Total Employment includes?
Base, Secondary and Support
Base Employment
total number of persons employed in businesses that rep. economic foundations of an area
Education Committee/total members and break down/appointed by who
12 members; 7 RE members who have been active for at least 5 years, 4 owners or instructors of RE schools; 1 public member; appointed by TREC
