Chapter 1-RE Business

Question 1

A person or company licensed to buy, sell, exchange or lease real property to others and charge a fee

Answer 1

Broker

Question 2

Employed by or associated with the broker to perform brokerage activities on behalf of or for the broker

Answer 2

Salesperson

Question 3

Person satisfied requirements of a licensing agency, as authorized by state legislation, course hours and exam

Answer 3

Real estate licensee

Question 4

Process of developing an opinion of a property’s market value, based on established methods and appraisers professional judgment

Answer 4

Appraisal

Question 5

Person or company hired to maintain and manage properties on behalf of the owner. May need license.

Answer 5

Property management

Question 6

Business of providing funds to make real estate transactions possible

Answer 6

Financing

Question 7

Involved construction of improvements that benefit the land

Answer 7

Development

Question 8

Dividing of a single property into smaller parcels on or off site.

Answer 8

Subdivision

Question 9

What are some off site improvements?

Answer 9

Storm sewers, public lands

Question 10

What are some on site improvements?

Answer 10

Pool, new home, new deck

Question 11

Combines practitioners interest in real estate skills and training in construction trades (licensed)
Structure, systems and site conditions

Answer 11

Home inspection

Question 12

Caveat emptor means?

Answer 12

Buyer beware

Question 13

Providing clients w competent independent advice based on sound professional judgment

Answer 13

Counseling

Question 14

Churches, schools, municipal buildings are all what type of real property?

Answer 14

Special purpose

Question 15

What do u call a housing where people share walls, don’t own individual units and share in a corporation that holds the title?

Answer 15

Cooperative

Question 16

High rises, combined offices, stores, theatres and apartments into vertical community is called?

Answer 16

A MUD mixed use development

Question 17

What characteristics govern reaction to pressure of supply and demand?

Answer 17

Uniqueness and immobility

Question 18

Labor force, construction, material costs, governmental control and monetary policy (interest rates) affect what?

Answer 18

Supply

Question 19

Governmental controls and monetary policy mean a change in what?

Answer 19

Interest rates. Tax incentives help

Question 20

Population, schools, weather/climate, demographics and employment and wage levels affect?

Answer 20

Demand

Question 21

Bringing people together in a real estate transaction

Answer 21

Brokerage