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Real Estate > Intro To Real Estate Business - Ch 1 > Flashcards

Intro To Real Estate Business - Ch 1 Flashcards

1
Q

A real estate professional who has several years of experience in the industry decided to retire from actively marketing properties. Now this person helps clients choose among the various alternatives involved in purchasing, using, or investing in property. What is this person’s profession?

A) Real estate educator
B) Building inspector
C) Real estate counselor
D) Real estate appraiser

A

Real estate counselor

[Advising and guiding investors and other buyers is counseling them. Many states require a person to have a real estate license to serve as a real estate advisor/ counselor for a fee because it involves skills and duties closely related to real estate brokerage.]

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2
Q

Property management, appraisal, financing, and development are all examples of _____

A) factors affecting demand.
B) specializations within the real estate industry.
C) non–real estate professions.
D) activities requiring broker management and supervision.

A

specializations within the real estate industry.

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3
Q

What type of federal law prohibits discrimination in the provision of housing and housing-related services (including lending) based on an individual’s race, color, national origin, religion, sex, familial status, or disability?

A) Home ownership
B) Fair housing
C) Lot size
D) Licensing

A

Fair housing

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4
Q

Detailed information about the age, education, behavior, and other characteristics of members of a population group is called ____

A) demographics.
B) household data.
C) family lifestyles.
D) population analysis.

A

demographics

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5
Q

The splitting of a single property into smaller parcels is called ___

A)development.
B)brokerage.
C)management.
D)subdivision.

A

Subdivision

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6
Q

What part of a property purchase does the federal Fair Housing Act cover discrimination in?

A

Mortgage Financing

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7
Q

Federal law specifically prohibits discrimination in the sale or rental of _____

A)housing.
B)vacant land.
C)commercial property.
D)industrial property.

A

Housing

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8
Q

The most important factor determining how quickly the forces of supply and demand work is

A)the property’s price.
B)immobility of a property.
C)a property’s specific geographic location.
D)uniqueness of a property.

A

property’s specific geographic location.

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9
Q

In general, when the supply of a commodity increases, _____

A)demand for it tends to drop.
B)demand for it tends to rise.
C)price tends to drop.
D)price tends to rise.

A

price tends to drop.

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10
Q

Which factor primarily affects supply in the real estate market?

A

Governmental monetary policy

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11
Q

Which factor is MOST likely to influence demand for real estate?

A)Wage levels and employment opportunities
B)Number of real estate professionals in the area
C)Number of full-time real estate professionals in the area
D)Price of new homes being built in the area

A

Wage levels and employment opportunities

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12
Q

A professional opinion of a property’s market value, based on established methods and using trained judgment, is performed by _____

A

real estate appraiser

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13
Q

When it is sold in good condition, a school, church, or hotel may have value as?

A

converted-use property.

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14
Q

When demand for a commodity decreases and supply remains the same, what happens to the price?

A

price tends to fall.

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15
Q

A major manufacturer of automobiles announces that it will relocate one of its factories, along with 2,000 employees, to a small town. What effect will this announcement MOST likely have on the small town’s housing market?

A)Because the announcement involves an issue of demographics, not of supply and demand, housing prices will stay the same.
B)Houses will likely become more expensive.
C)Houses will likely become less expensive.
D)The announcement involves an industrial property; residential housing will not be affected.

A

Houses will likely become more expensive.

[The expected arrival of 2,000 employees and their families in a small town will cause sellers to raise their prices in expectation of the greatly increased demand and the long time it takes to build new housing. It becomes a sellers’ market, and the many buyers will have to compete for the few houses available.]

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16
Q

The Nationwide Multistate Licensing System and Registry was created to register ______

A. Real estate licensee
B. mortgage loan originators.
C. Investment counselor
D. Broker

A

mortgage loan originators.

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17
Q

Schools would be considered part of which real estate classification?

A)Special purpose
B)Residential
C)Commercial
D)Industrial

A

Special purpose

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18
Q

The supply of land is affected by

A)monetary policy.
B)demographics.
C)population.
D)wage levels.

A

monetary policy

[Government monetary policies affect the supply of land available for development. Population, demographics, and wage levels affect demand for real estate.]

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19
Q

What is the name of the person who performs a visual survey of a property structure and writes a report for a buyer is?

A

home inspector.

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20
Q

What is a person or company responsible for maintaining a client’s property and maximizing the return on the client’s investment is serving as?

A

property manager.

21
Q

What are the 6 types of real property ownership?

A

Residential, commercial, mix use, industrial, agricultural and special purpose

22
Q

A _______ is a person or company license to buy, sell, exchange or lease real property for others and to charge a fee for those services.

A

Broker

23
Q

A ______ is employed or associated with performing brokerage activities on behalf of the broker.

A

Salesperson

24
Q

What are the 2 additional terms used to refer to a salesperson?

A

Sales associate & associate licensee

25
Q

A real estate licensee satisfies requirements of a licensing agency authorized by _______

A

State legislation

26
Q

A _______ involves preparation of a site and construction of structures structures or other improvements.

A

Development

27
Q

A mother-in-law suite added onto a single-family lot is an example of a _______

A

Accessory dwelling unit
ADU

28
Q

A Single family home with a garage conversion to fill the need for housing is considered a _______

A

Accessory dwelling unit

29
Q

Which type of housing office the security of owning the unit without exterior maintenance?

A

Condo

30
Q

A _______ is a type of housing where the owner owns an individual unit while also sharing ownership with other unit owners of common elements.

A

Condo

31
Q

If Jill”s management company pays expenses by charging owners monthly assessments, what type of housing does Jill live in?

A

Condo

32
Q

A ______ type of housing has units sharing in common walls and facilities within a larger building but yet the owners do not own the units.

A

Co-operative

33
Q

What type of housing means each unit owner owns shares in a corporation which hold title to the real estate?

A

Co-op

34
Q

With a co-op each shareholder receives a ______ to a Specified unit in the building.

A

Proprietary lease

35
Q

What is another name for a planned unit development?

A

Master planned communities

36
Q

______ is planned under special zoning laws by the local government

A

PUD

37
Q

Which type of housing community does not have direct ownership interest in common areas?

A

PUD
Planned unit development

38
Q

Manufactured homes are permanent installations built to _____ specifications.

A

Federal

39
Q

The Fair Housing Act covers most housing types; however there are limited exemptions such as ________

A

Owner occupied buildings with no more than four units

40
Q

What are the two characteristics of real estate that govern the way the market reacts to supply and demand?

A

Uniqueness & immobility

41
Q

How does a shortage of skilled laborers affect the production of new construction?

A

Decreases the amount

42
Q

The _______ establishes a discount rate of interest for money lended to commercial banks.

A

The federal reserve board (the FED)

43
Q

What is one of the primary sources of revenue for local governments?

A

Real estate taxation

44
Q

How does the federal reserve board Significantly impact a borrowers ability to buy homes?

A

The discount rate has a direct impact on the interest rates the banks charge to borrowers trying to obtain a mortgage

45
Q

The difference between the market value of the property and the amount still owed on the homeowners ______ in the property.

A

Equity

46
Q

Between January 1, 2018 through December 31, 2025 what is no longer tax deductible in reference to mortgages?

A

Interest on a second mortgage is no longer tax deductible

47
Q

T|F
Homeowners cannot deduct certain loan origination fees and loan discount points

A

False

Homeowners can deduct certain loan origination fees and loan discount points

48
Q

T|F
A married couple with a joint tax return can be excluded from capital gains taxes on the sale of a principal residence up to 500,000 in profit

A

True

49
Q

What length of time must a homeowner reside in the principal residence in order to be excluded from capital gains tax when the home is sold?

A

At least 2 of the past 5 years

Real Estate (5 decks)

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