Chapter 1 - Terms Flashcards
____ acts as an agent or intermediary between two or more people in the negotiation of the sale, purchase, or rental of real estate.
Broker
____ provides services to prospective buyers and sellers on behalf of the broker
Sales associate
Why is real estate ‘local in nature’?
Information regarding real estate can best be found through local sources
____ are persons who met the requirements of law and are licensed and permitted to perform specified services in connection with real estate.
Licensees (can be brokers or sales associates - both are licensees)
Licensees are expected to have expert knowledge in ____, _____ and ____.
(1) Property transfer
(2) Valuation (and market conditions)
(3) Marketing
Concentration on one type or style of property or one particular neighborhood is a practice called _____.
Farming
Name the 3 types of property valuation in order of thoroughness (least to most).
(1) Comparative Market Analysis (CMA)
(2) Broker Price Opinion (BPO)
(3) Appraisal
Comparative Market Analysis (CMA)
value estimate based on recent sales of similar properties in the same neighborhood
Broker Price Opinion (BPO)
used in a short sale to help determine the selling price of a property (usually includes neighborhood analysis or comparable properties and local market information)
Appraisals are performed under which requirements?
USPAP (Uniform Standards of Professional Appraisal Practice)
____ is a system that provides an extensive marketing tool for real estate licensees.
MLS (multiple listing service)
Criteria for a RESIDENTAL transaction
(1) Residential properties of 4 units or less
(2) Agricultural property of 10 acres or less
Examples of COMMERCIAL properties
(1) Apartment buildings (5 units or more)
(2) Office buildings
(3) Shopping centers
Examples of INDUSTRIAL properties
(1) Warehouses
(2) Manufacturing facilities
Business brokers specialize in…
listing and sale of buisnesses
Property managers are required to obtain a community association management (CAM) license is they meet what criteria?
(1) employed and compensated by a community organization; AND
(2a) Community is greater than 10 units OR
(2b) Annual budget is $100k or more
_____ is the service of analyzing existing or potential projects and providing expert advice based on their personal judgement.
Counseling
_____ is the process of developing an opinion of the value of real property.
Appraising
What are the license requirements to appraise properties?
If a federally regulated transaction - must be certified and licensed under Part II of FS 475
If not a federally regulated transaction - a real estate licensee can perform the appraisal
Mortgage lenders vs. Mortgage loan originators
Mortgage Lenders: lend money to fund the loans
Loan Originators: arrange loans between lenders and buyers requires a separate license
Does selling insurance require a separate license?
Yes
The ownership of streets and sidewalks is typically conveyed by a developer to the city or county upon completion of construction of a subdivision. This transfer of ownership is referred to as _____.
Dedication
Custom Building
built to the specifications of the buyer/owner
Speculative Building
built by contractor without a buyer already being engaged
Tract Building
developer buys large tract of land and uses model homes to sell properties
Local Government impact on real estate
Planning and zoning Property taxation Building and health codes Utilities (local govt can cause delays/moratoriums to building)
State Government impact on real estate
Developments of Regional Impact (DRI),
Department of Environmental Protection (DEP) Department of Economic Opportunity (DEO)
Federal Government impact on real estate
lending / lending institutions
