Real Estate Course Chapter 1

Question 1

The real estate agent is a professional who provides specialized service and expertise in at least five areas. They are:

Answer 1

1. Details of property transfer (title transfer, property taxes, financing, local zoning ordinances, writing the sales contract/form competency.)
   2) Knowledge of market conditions and their changes and fluctuations/supply and demand
   3) Knowledge of how to market real estate or business
   4) Knowledge of how to analyze buyer’s needs
   5) Knowledge of laws that pertain to real estate

Question 2

Define Real Estate brokerage

Answer 2

the business of bringing together buyers and sellers, owners, and renters, and completing real estate transactions.

Question 3

Real estate has been called ..

Answer 3

…the lifeblood of the brokerage business

Question 4

Define “residential real estate”

Answer 4

four or fewer residential units, vacant land zoned for four or fewer residential units, or agricultural property of ten or fewer acres.

Question 5

Agricultural property is defined as

Answer 5

Agricultural property of more than 10 acres.

Question 6

Give the definition of “Farm area.”

Answer 6

One specific portion of a city that a real estate professional focuses on

Question 7

What is a “Business Opportunity Brokerage”?

Answer 7

It is the real estate activity of a Business Broker. It involves the sale or lease of an existing business.

Question 8

What is an “absentee owner”?

Answer 8

A property owner who does not reside on the property and who often relies on a property manager to manage the investment.

Question 9

Define appraisal”

Answer 9

It is the process of estimating the value of real property.

Question 10

What is a CMA?

Answer 10

Comparative Market Analysis

Question 11

Can a CMA be referred to as an appraisal?

Answer 11

No

Question 12

What is a BPO?

Answer 12

BROKERS PRICE OPINION. The written opinion of the value of real property. They can only be done under the control and management of the associate’s employing broker.

Question 13

What are the three general phases of development and construction?

Answer 13

1) Land acquisition and development
2) Subdividing and development
3) Construction

Question 14

What is subdividing

Answer 14

the process of converting parcels of land into smaller units or lots

Question 15

What is a subdivision plat map?

Answer 15

It is an engineer’s plan for land use superimposed on a map of the land to be developed

Question 16

Related to development and construction, what is “dedication.”

Answer 16

Dedication is the gift of land by an owner, in this case a developer, to a government body for a public use (i.e. the streets, sidewalks).

Question 17

Name and define the three general categories of residential construction

Answer 17

1) Speculative-purchasing one or more lots and constructing a home (or homes) without a buyer in advance of construction
2) Custom homes - A custom builder constructs homes under contract with a buyer, often using building plans provided by architects or buyers
3) Tract homes - a type of speculative building. A subvision will pre-build several style model home types . They buyer select the floor plan from the models and a lot on which to build in the new subdivision

Question 18

Define Deed Restriction

Answer 18

Deed restrictions refer to a single parcel of land. Deed restrictions are placed by an owner who has created a restriction on future owners of the parcel of real estate.

Question 19

Define Restrictive Covenants

Answer 19

Restrictive Covenants impose limitiation on the use of land in an entire subdivision

Question 20

How does local government impact the real estate business

Answer 20

Through property taxation and regulatory activieis such a occupational licensing, business tax receipts, building permits, building moratoriums, zoning and building codes

Question 21

How does state government impact the real estate business

Answer 21

identifies coastal regions and other areas that are protected from development. State doc and intangible taxes.

Question 22

How does the federal goverments impant the real estate business

Answer 22

Through various agencies: HUD, VA, FHA, WPA, IRS

Question 23

With respect to a BPO, do the USPAP statandard of practice apply

Answer 23

No

Question 24

What is the Acronym USPAP

Answer 24

Uniform Standards of Professional Appraisal Practice

Question 25

What is property management devoted to?

Answer 25

Leasing, managing, marketings, and overall maintenance of the property for others