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Real Estate > Introduction to Modern Real Estate Practice > Flashcards

Introduction to Modern Real Estate Practice Flashcards

Introduction to Modern Real Estate Practice

1
Q

A real estate license holder who locates dwelling units for prospective tenants

A

Apartment locator

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2
Q

Duplex, triplex, or fourplex residences are all considered ___________ ________

A

Multi-family residences

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2
Q

Primarily made up of property that is used for business.

A

Commercial real estate

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3
Q

Includes commercial property used for:
Manufacturing, Storage, Distribution centers, Research, Warehousing, Data centers, Storage Units

A

Industrial Property

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4
Q

Involves locating property, deciding how it can be best used, and then building on it

A

Property Development

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5
Q

Examples include ranches, farms, and acreage tracts in subdivisions

A

Rural properties

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6
Q

States that a REALTOR® may provide a service they are not specialized in only after fully disclosing their lack of experience, or if the REALTOR® obtains assistance from someone competent in the field, in which case, the client must be informed.

A

Article 11

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7
Q

What does Article 11 state?

A

A realtor must disclose their lack of experience in a field to the client.

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8
Q

To review and revise curriculum standards, course content, and instructor certification requirements for both Qualifying and Continuing Education courses

A

The function of the Education Standards Advisory Committee

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9
Q

Consists of 12 members appointed by the Commission

A

Education Standards Advisory Committee

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10
Q

Who is on the Education Standards Advisory Committee?

A

Consists of 12 members, including license holders, education members, and a public representative

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11
Q

Occur naturally

A

Physical characteristics of real estate

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12
Q

Human-made

A

Economic characteristics

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13
Q

The actual piece of the earth, including anything below the surface of the land and the air above it.

A

Land

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14
Q

Made up of the land & any improvements attached to it

A

Real estate

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15
Q

Real estate PLUS the bundle of rights that come with ownership of it

A

Real property

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16
Q

Describes items that can easily be removed from the land

A

Personal property

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17
Q

Which of the following is not a feature of real estate?
a.) Only an owner has the right to use a property
b.) Property ownership can be transferred without transferring the property to another location.
c.) The person in possession of a property may not be the owner
d.) Property value is determined by the use of the land & the location of the property.

A

a.) - Only an owner has the right to use a property

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18
Q

The economic characteristic that informs the economic principle of supply and demand

A

Scarcity

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19
Q

The cost of real estate in a metropolitan area has gone up dramatically over the past year because an increasing number of people has been moving to that area, and there are only a finite number of parcels of land that are close to the downtown area. This is an example of:

A

Scarcity

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20
Q

What term identifies an economic preference for a certain location?

A

Situs

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21
Q

Refers to the fact that real estate exists in a fixed location and cannot be moved

A

Fixity

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22
Q

The relative difficulty of converting an asset to cash without loss of value

A

Illiquidity

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23
Q

Which term refers to the permanence of land?

A

Fixity

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24
Q

The price for which a property will sell if offered openly under normal conditions

A

Market Value

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25
Q

________ & ________ move in opposite directions.

A

Supply and price

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26
Q

Responsible for all laws in Texas

A

The Texas Legislature

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27
Q

The laws that affect the owners of real estate are referred to as

A

Property rights

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28
Q

What contains Fair Housing laws, community property laws, and homestead laws?

A

State constitutions & U.S. Constitution

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29
Q

2 main functions are to:
1.) Enforce all real estate-related statutes
2.) To adopt & enforce new rules

A

2 main functions of the Texas Real Estate Commission (TREC)

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30
Q

A Texas law that requires a commission, called the Sunset Commission, to evaluate every state agency every 12 years

A

Sunset Act

31
Q

Has the authority to enforce all the statutes contained in the Real Estate License Act, and adopt and enforce new rules

A

The Commission

32
Q

Chapter 1102 of the _______ ____________ _______ governs the practice of Texas Real Estate inspectors.

A

Texas Occupations Code

33
Q

Role is to provide education and guidance to improve the practice of their members

A

The role of professional organizations

34
Q

Must belong to at least one board in Texas.

A

A REALTOR®

35
Q

Made up of three 30-hour courses that are required for first-time license holders prior to renewing their license two years after they received their license.

A

Graduate, REALTOR® Institute (GRI)

36
Q

An impartial, qualified appraiser’s opinion of the value of a specific property on a specific date, supported by relevant market information.

A

An appraisal

37
Q

A method of estimating the value of a property by determining how much it would cost to replace the building or other improvements, minus the cost of depreciation, plus the value of the land itself

A

Cost to replace

38
Q

A property appraisal method that estimates value by comparing the subject property to the sales prices of similar properties in the same market area

A

Sales comparison approach

39
Q

A method of estimating the value of a property by applying a rate of return to the net income it produces

A

Income approach

40
Q

The appraiser will compare estimates they made based on the cost approach, sales comparison approach, and/or income capitalization approach.

A

Reconciliation

41
Q

Also known as the direct sales comparison approach or market data approach.

A

Sales comparison approach

42
Q

A report that compares the prices of sold homes that are similar to the subject property

A

Comparative market analysis

43
Q
  • Can be performed by agents
  • Usually done for free
  • Simple, casual estimate
A

Comparative market analysis

44
Q
  • Requires an appraiser’s license
  • Usually done for a fee
  • Formal & detailed
  • Required by most lenders
A

Appraisal

45
Q
  • Estimate market value of property
  • Use a sales comparison approach
A

Both an appraisal & a CMA

46
Q

The process used by a hired sales agent to determine the potential selling price or estimated value of a real estate property.

A

A Broker Price Opinion (BPO)

47
Q

A market condition in which the number of properties for sale does not meet the demand (number of people looking to buy).

A

Seller’s Market

48
Q

The average number of months it will take to sell a house in a buyer’s market is:

A

6 months or more

49
Q

When an appraisal report is not available, which of the following provides the BEST data for setting a listing price?

A

The price willing buyers have recently paid for similar properties in the area

50
Q

A seller is more likely to want to work with an agent who uses the words “________ __________” rather than “________ __________.”

A

price adjustment
price reduction

51
Q

False statement, either spoken or written, that is made unintentionally

A

misrepresentation

52
Q

The NAR® Code of Ethics is reviewed and updated _______ _______.

A

every year

53
Q

Has an agency relationship with you or your broker

A

Client

54
Q

Any other party in the transaction that doesn’t have an agency relationship with you

A

Customer

55
Q

A person involved in a contract for sale, lease, or agency

A

Party

56
Q

Many license holders find that providing a party with the ____________ ______ ____________ ___________ __________ to be the most convenient way to fulfill their obligation with respect to the written statement requirement.

A

Information About Brokerage Services Notice

57
Q

To avoid _______________, a license holder should only give factual information from reputable sources, avoid speculation, and point potential buyers to the resources that can help with questions that you shouldn’t answer.

A

misrepresentation

58
Q

Carelessness in the work that needs to be accomplished.

A

Negligence

59
Q

Usually occurs when a license holder attempts to facilitate a type of transaction that they have never attempted

A

Incompetence

60
Q

Avoid getting into trouble for misrepresentation by…

A

citing the source of any information you provide

61
Q

A form every seller is required to provide with a potential buyer with the contract

A

Seller’s Disclosure Notice

62
Q

The illegal act of a license holder mixing their own money with a client’s or customer’s money

A

Commingling

63
Q

The act of a broker or sales agent using a client’s or customer’s money for their own use

A

Conversion

64
Q

refers to any scheme or procedure whereby one or more prizes are distributed by chance among persons who have paid or promised consideration for a chance to win anything of value, whether such scheme or procedure is called a pool, lottery, raffle, gift, gift enterprise, sale, policy game, or some other name.

A

Lottery

65
Q

An exaggeration to accomplish a goal, such as a sale

A

Puffing

66
Q

What is the only scenario in which you do NOT need a real estate license to sell or lease a property?

A

If you are not receiving any commission from the sale of your

67
Q

TRUE or FALSE: Employees working for a commercial firm do not have to have a real estate license if they are selling property owned by their firm.

A

TRUE

68
Q

Which of the following actions does NOT require a real estate license?
A.) Selling a portion of a joint ownership in a property
B.) Showing the listing of a broker or licensed sales agent
C.) Handling funds in property management
D.) Supervising licensed people

A

A.) Selling a portion of a joint ownership in a property

69
Q

A plea in a criminal court in which the defendant accepts the punishment without admitting guilt.

A

Nolo contendere

70
Q

When does an inactive license become active?

A

When the license holder joins a brokerage

70
Q

Allows an applicant to find out if TREC will grant them a license before they spend too much time and money

A

Moral Character Determination Form

71
Q

Has characteristic of indestructibility

A

Land

72
Q

Created solely by demand for land in particular areas

A

Economic Scarcity

73
Q

Land is most valuable when it is in…

A

short supply and in high demand

74
Q

Responsible for enforcing TRELA.

A

Texas Real Estate Commission (TREC)

Real Estate (8 decks)

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