Key Terms chapter 1

Question 0

A person or company licensed to buy, sell, exchange, or lease property for others and charges a fee for these services?

Answer 0

Broker

Question 1

The business of bringing people together?

Answer 1

Brokerage

Question 2

A person who has satisfied the requirements set fourth by a licensing agency or state legislation?

Answer 2

Licensee or sales person

Question 3

Process of estimating a property’s market value based on established methods and the appraisers professional judgement?

Answer 3

Appraisal

Question 4

In Ohio appraisers must be _________ to engage in appraisal activities for any federally related transactions! or in conjunction with any real estate mortgage loans.

Answer 4

Licensed or certified

Question 5

A visual examination of the components of a residential building including plumbing systems, electrical, structural components, foundation, roof and HVAC.

Answer 5

Home inspection.

Question 6

A person or company hired to manage and maintain property on behalf of its owner. They must be a licensed.

Answer 6

Property management

Question 7

The business of providing the funds that make real-estate transactions possible when buyers don’t have the cash for the full purchase amount.

Answer 7

Financing

Question 8

Providing clients with competent independent advise based on sound professional judgement.

Answer 8

Counseling

Question 9

NAR - members subscribe to a code of ethics and are entitled to be known as realtors

Answer 9

National association of realtors

Question 10

Six categories of real property?

Answer 10

Residential, commercial, mixed use, industrial, agricultural, special purpose.

Question 11

Residential property

Answer 11

All real estate used for single family, multifamily housing, whether in urban, suburban, or rural areas

Question 12

Commercial property

Answer 12

Business real estate, including office space, shopping cents, stores, theaters, hotels and parking facilities.

Question 13

Mixed-used property

Answer 13

Property that allows for two uses, commercial and residential , in the same building.

Question 14

Industrial property

Answer 14

Warehouses, factories, land in industrial districts and power plants.

Question 15

Farms, timberland, ranches, and orchards

Answer 15

Agricultural property

Question 16

Churches, schools, cemeteries, and government held lands.

Answer 16

Special purpose property

Question 17

When supply increases and demand remains stable prices do what?

Answer 17

Go down

Question 18

When demand increases and supply remains stable, prices ?

Answer 18

Go up

Question 19

Name two characteristics of a land that have the most impact on market value?

Answer 19

Uniqueness and immobility

Question 20

Factors affecting supply?

Answer 20

Labor force, construction and material cost, government controls and financial policies.

Question 21

Factors that affect the demand for real estate ?

Answer 21

Population, demographics, employment and wage levels.