Real Estate Terms

Question 1

Which economic characteristic describes Supply & Demand?

Answer 1

Scarcity

Question 2

Which economic characteristic describes significance of a property’s location?

Answer 2

Situs

Question 3

Which economic characteristic describes human-made changes and improvements to land?

Answer 3

Modification

Question 4

Which economic characteristic describes Permanence of Land?

Answer 4

Fixity

Question 5

Relative difficulty of converting an asset to cash without loss of value

Answer 5

Illiquidity

Question 6

Value that may be determined by the use of the land, location is also a factor

Answer 6

Perceived value

Question 7

True or false: The owner of the land can be different from the “Person in Possession”

Answer 7

True - a tenant may be the person in possession

Question 8

Give an example of a “Portion of Property”

Answer 8

An easement = right of passage to use portion of land

Question 9

Term that refers to the access a property has for employees, customers, raw materials for building, etc.

Answer 9

Slope & Transportation

Question 10

True or False: Supply and price move in opposite directions

Answer 10

True - an under-supply will raise prices / an over-supply will decrease prices

Question 11

True or False: Demand & supply move in the same direction

Answer 11

True - high demand = high price / low demand = low price

Question 12

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

Answer 12

Land

Question 13

Land AND any improvements on it

Answer 13

Real estate

Question 14

Land, improvements PLUS the bundle of rights that come with ownership

Answer 14

Real property

Question 15

Every piece of land is different in its own way - location on earth, etc.

Answer 15

Non-homogeneous

Question 16

Scarcity, Situs, Modification, Fixity, Illiquidity

Answer 16

Lands economic characteristics

Question 17

Supply & demand, Demographics, employment, government controls, interest rates are examples of

Answer 17

Impacts on the Real estate market

Question 18

Relating to the structure of populations; “the ____ trend is toward an older population”

Answer 18

Demographic

Question 19

Rule book provided by sponsoring broker that states permitted actions under their brokerage

Answer 19

Policy manual or office manual

Question 20

Illegal act of mixing your money with clients money instead of sending it to the title company for safekeeping

Answer 20

Commingling

Question 21

Illegal act of using someone else’s money for the wrong reason then not being able to return it

Answer 21

Conversion

Question 22

True or False:
A salesperson employed by an owner of land and structures erected by owner does not need a RE license to sell their homes

Answer 22

True

Question 23

What happens if neither party of a sale hires an attorney to secure the deed in a sale?

Answer 23

The attorney at the title company will ensure it is handled at the end of the sale

Question 24

Who regulates activities of RE brokers, agents, inspectors, education providers, residential service companies, timeshare developers, easement developers?

Answer 24

TREC

Question 25

TRELA is the ___

Answer 25

Law

Question 26

TREC Enforces ____

Answer 26

TRELA

Question 27

Name of process: Any fixtures left behind after lease expiration become landlords property

Answer 27

Accession

Question 28

Fixtures in leased commercial property owned by tenant that relates to their trade

Answer 28

Trade fixtures