The Real Estate Business

Question 1

Real Estate Market is….

Answer 1

Local in nature

Question 2

Real Estate Professionals provide expert knowledge regarding…

Answer 2

Marketing, Valuation, Property transfer . Agents = MVP

Question 3

Ways a broker may be employed by the public

Answer 3

1) Transaction Broker (presumed if no other written agreement)
2) Single Agent
3) No Brokerage Relationship

Question 4

Transaction Broker

Answer 4

Provides limited representation
Works with customers
Can not work to the disadvantage of either party

Question 5

Single Agent

Answer 5

Works for the principal
Works in the best interest of the employer
Fiduciary duties

Question 6

No brokerage relationship

Answer 6

Not regarded as being representative of the employer

Question 7

Residential

Answer 7

1-4 units

Agricultural properties under 10 acres

Question 8

Types of Real Estate

Answer 8

Residential
Commercial 
Industrial
Agricultural
Business Brokerage
Appraising
Counseling

Question 9

Appraising

Answer 9

1. Appraisal of value
2. Title 9 of FIRREA
3. USPAP
4. Federal transactions require a certified appraiser
5. CMA- not an appraisal

Question 10

Mortgage Broker

Answer 10

Arrange loans—-Do not make loans

Must have separate license issued by financial services

Question 11

Property Insurance

Answer 11

Separate License

Question 12

Types of Construction and development

Answer 12

Custom
Spec
Tract
Dedication

Question 13

Custom building

Answer 13

Owner owns the lot

Question 14

Speculative building

Answer 14

Builder builds on lot and then sells

Question 15

Tract building

Answer 15

Subdivision sales from model center

Question 16

Dedication

Answer 16

Developer conveys ownership of common areas (ie streets)

Question 17

Government Regulation

Answer 17

Planning and zoning
Property taxation
Building and health codes
Development regulations
FRS monetary policy