Module 1 Part 1 Introduction to the real estate industry

Question 1

Market

Answer 1

place where goods can be bought and sold, where a price can be established, and where buyers and sellers can trade

Question 2

Commission

Answer 2

means the Indiana Real Estate commission

Question 3

Real estate

Answer 3

any right, title, or interest in real property

Question 4

License

Answer 4

means a broker license issued by the commission which is not expired, suspended, or revoked

Question 5

Broker

Answer 5

means a person who for consideration or a commission sells, buys, trades, exchanges, options, leases, rents, manages, lists, or appraises real estate or negotiates under the auspices of a managing broker

Question 6

Managing broker

Answer 6

an Indiana specific term that refers to a broker who the commission holds responsible for the actions of licenses who are affiliated with the managing broker (Principal broker)

Question 7

Delveloper

Answer 7

creates real properties from raw land for sale and construction

Question 8

property manager

Answer 8

oversees condition and financial performance of properties on behalf of the owners

Question 9

asset manager

Answer 9

oversees groups of properties or portfolios (high level property manager)

Question 10

Real estate investors

Answer 10

Risks capital to buy, hold, and sell real properties

Question 11

Agricultural real estate

Answer 11

real property used for farms, timberland, pasture land, ranches, orchards, and so on.

Question 12

Industrial real estate

Answer 12

Real property used for warehouses, factories, land in industrial districts, research facilities and so forth.

Question 12

Commercial real estate

Answer 12

real property used for warehouses, factories, land in industrial districts, research facilities, and so forth.

Question 13

Brokerage

Answer 13

The business of bringing people together in real estate transactions

Question 14

Commercial brokerage

Answer 14

specializing in non-residential properties

Question 15

Appraisal

Answer 15

The process of estimating the market value of real property

Question 16

Property management

Answer 16

The business of managing real estate to protect the owner’s investment and maximize the owner’s return

Question 17

Financing

Answer 17

the business of arranging for or providing funds for real estate transactions

Question 18

Subdivision and development

Answer 18

the activities of splitting a large parcel of real estate into smaller ones and constructing improvements on the land

Question 19

home inspection

Answer 19

the activities involved in conducting a visual survey of a property’s site conditions, structure, and systems and preparing an analytical report useful to both buyers and homeowners

Question 20

counseling

Answer 20

the activity of providing clients with competent and independent information and advice to assist in their real estate investment decisions

Question 21

education

Answer 21

the provision of real estate education opportunities both to practitioners and consumers

Question 22

others

Answer 22

settings in which real estate expertise is required, such as the practice of law, corporations with extreme land holdings, and government agencies

Question 23

National Association of REALTORS (NAR)

Answer 23

Largest trade organization, comprises state (Indiana Association of REALTORS - IAR), regional, and local associations (Residential)

Question 24

Types of real property

Answer 24

Residential, commercial, industrial (factories, warehouses, etc.), agricultural, special purpose (churches, schools, cemeteries, government owned property)

Question 25

Types of market

Answer 25

Sales market, rental market