real estate unit 2

Question 1

BPOA

Answer 1

Bureau of Professional and Occupational Affairs

Question 2

how many members on the PA real estate commission?

Answer 2

11

Question 3

list the members of the PA real estate commission:

Answer 3

1. The Commissioner of Professional and Occupational Affairs.
2. The Director of the Bureau of Consumer Protection.
3. Three members of the public at large appointed by the governor.
4. Five members, licensed real estate brokers of PA, engaged in the real estate business for a period of not less than 10 years.
5. A cemetery broker.

Question 4

How long in the term of each commissioner?

Answer 4

5 years

Question 5

define quorum

Answer 5

A quorum for the Real Estate Commission is a majority of its members.

Question 6

how many public meetings per year?

Answer 6

3

Question 7

where are the public meetings?

Answer 7

philly, pittsburgh and harrisburg

Question 8

what is the commission empowered to do?

Answer 8

The commission is empowered to oversee unlicensed individuals practicing real estate on the general public and licensed persons practicing real estate, conduct investigations, and seek criminal and civil remedies for illegal activities.

Question 9

what is the administrative wing of the commission?

Answer 9

the department of state

Question 10

what is the department of states responsibility?

Answer 10

It is the duty of the Department to:
1. Arrange for professional testing services to write and administer examinations on behalf of the Commission with Commission guidance and approval.
2. Issue license and registration certificates to any person who complied with the Real Estate Act.

Question 11

promulgate definition

Answer 11

promote or make widely known (an idea or cause).

Question 12

define broker

Answer 12

A real estate broker is generally defined as one who is licensed to represent another person in a real estate transaction with the intent to receive compensation or valuable consideration.

More specifically, a real estate broker is a licensed person or legal business entity who, for a fee:
* Sells
* Lists
* Leases
* Exchanges
* Negotiates
* Otherwise deals in the real estate of others

Question 13

define real estate brokerage

Answer 13

A real estate brokerage serves as an intermediary
between buyers and sellers and/or lessees and lessors of real estate, finding buyers for sellers, tenants for landlords, and properties for buyers and tenants.

Question 14

define Real Estate Salesperson

Answer 14

a real estate salesperson is an individual licensee associated with a broker who may perform most of the acts of a broker. However, a real estate sales associate may not work independently of his or her licensed broker and, in fact, can function only
through the broker with whom he or she is associated.

Everything must be done with the consent of the broker.

Question 15

what can a salesperson NOT do?

Answer 15

The salesperson cannot independently enter into listing agreements or other contracts to represent people.

Furthermore, a salesperson cannot independently
conclude a sale, receive a commission, or advertise.

All of these actions must be done in the name of the broker.

Question 16

what do Real Estate Finance people do?

Answer 16

take and approve mortgage loan applications,
manage loan portfolios, appraise properties and assess risk.

Question 17

what do Real Estate Appraisal peeps do?

Answer 17

An appraiser must have a thorough understanding of real estate and of the appraisal methods.

A real estate appraiser’s job is to look at the characteristics of a specific property and the characteristics of its location, and then make a fair and accurate estimate of the property’s value based on how it compares to comparable homes.

Real estate appraisers can work for financial institutions, developers, property managers, or government agencies.

Question 18

What are the duties of a Real Estate Property Management company?

Answer 18

A property management company has an agency
relationship with the property owner, and owes the owner the same fiduciary duties of obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care they provide to all clients.

The property manager is responsible for
collecting rents,
selecting tenants,
renting and leasing units,
maintaining and repairing the building,
supervising all building personnel,
managing tenant relations, and
accounting for all income and expenditures.

Question 19

What is Real Estate Property Development?

Answer 19

Property development is the process of acquiring large tracts of land at a low cost per acre, then subdividing and improving it with streets, sewers, and utilities so it can be resold at a higher cost per front foot (for lots) or
per square foot (for buildings).

Question 20

Real Estate Property Development types of land:

Answer 20

residential
commercial
industrial
other

Question 21

Real Estate Developer steps:

Answer 21

feasibility study of the prospective development
execute an option or purchase agreement
obtain zoning changes
obtain early financing from FI’s or investors
install improvements (streets, sewer, water, electric, gas lines, etc)
arrange for parks, playgrounds, golf course, swimming pool, etc
take care of legal agreements (deeds and title evidence for each lot)
Market and sell each lot
construct buildings

Question 22

What are blue sky laws?

Answer 22

Every state has securities laws, sometimes called “blue sky laws” that a registered securities broker-dealer is licensed to sell any type of investment opportunity or security, such as registered stocks and bonds or unregistered securities
such as mortgages or land contracts.

Question 23

define “blue sky law”

Answer 23

a law regulating the sale of securities, intended to protect the public from fraud.

Blue sky laws—which serve as an additional regulatory layer to federal securities regulations—usually mandate licenses for brokerage firms, investment advisors, and individual brokers offering securities in their states.

Blue sky laws are state-level, anti-fraud regulations that require issuers of securities to be registered and to disclose details of their offerings.

Blue sky laws create liability for issuers, allowing legal authorities and investors to bring action against them for failing to live up to the laws’ provisions.

Question 24

List the types of Residential properties:

Answer 24

Single family
multi family (twins, duplex, doubles)
condominiums
cooperatives (co-op)

Question 25

list the types of specialized residential properties:

Answer 25

Converted use
manufactured housing
timeshare

Question 26

list non residential property types

Answer 26

commercial
industrial
specialization (farm)
Vacant land

Question 27

define: statutory nonemployee

Answer 27

an independent contractor who is licensed, paid NOT by hours worked but by sales or other output, the licensee performs services under a written contract

Question 28

define E&O (insurance term)

Answer 28

Errors and Omissions

Question 29

what is E&O?

Answer 29

Errors and omissions (E&O) insurance is professional liability insurance that protects licensees from mistakes or negligence. A typical policy pays legal fees and judgments resulting from real estate activities.

Question 30

EXCLUDED E&O

Answer 30

Intentional misrepresentation or fraud
Transactions involving buying or selling one’s own
real estate.

Civil rights violations
Commercial environmental issues

Question 31

define MLS

Answer 31

Multiple Listing Service

Question 32

what is MLS?

Answer 32

A multiple listing service is an arrangement whereby local member brokers agree to share listings and further agree to share commissions on properties sold jointly.

The MLS generally consists of online computer services, updated regularly to include new listings.

Question 33

what is PEGS?

Answer 33

Physical,
Economic,
Governmental, and
Social factors.

Question 34

what is P-E-G-S: Broad Influences on the Real
Estate Market?

Answer 34

Physical (location, uniqueness, scarcity,
immobility)
Economic (business cycles, supply and demand, economic base, interest rates, inflation)
Governmental (fiscal/monetary policy,
taxation,
Social (demographics, migration, trends,
and tastes)

Question 35

physical factors to consider when looking at land for development:

Answer 35

• Does the topography of the land allow for construction?
• Are there sufficient natural resources to support development?
• Is there proximity to ports, railroads, airports, and other transportation?
• What impact does the climate have on the area?

Question 36

Uniqueness and Scarcity:

Answer 36

Uniqueness refers to
the fact that each parcel of land, each building, and each house are said to be different. This is also called non- homogeneity (“not the same” or heterogeneous). Even if two houses look the same, they are still held to be unique because of their particular locations.

Question 37

define: Scarcity

Answer 37

Scarcity refers to the fact that there’s a limited supply of real estate.

Question 38

define: Immobility

Answer 38

Immobility is a physical characteristic of land referring to the fact that land cannot be moved from one place to another.

Question 39

define: sellers market

Answer 39

A seller’s market is a housing market where there are more buyers than sellers.

Therefore, the seller is generally able to negotiate a purchase price that is closer to or higher than the listing price or to negotiate more favorable terms.

Question 40

define: buyers market

Answer 40

A buyer’s market is a housing market where there are more sellers than buyers.
Generally, in this situation, the buyer is able to negotiate a lower price or more favorable terms.

Question 41

what is fiscal policy?

Answer 41

Fiscal policy is the federal government’s plan for
spending,
taxation, and
debt management.

Question 42

what is monetary policy?

Answer 42

Monetary policy is the means through which the federal government can exert control over the supply and cost of money.