Unit 1

Question 1

Broker

Answer 1

person/ company licensed to buy, sell, exchange or lease real property for others and to charge a fee for these services

Question 2

Salesperson

Answer 2

employed by or associated with the broker to perform brokerage activities on behalf of/for the broker

Question 3

Real estate license

Answer 3

has satisfied the requirements of a licensing agency, as authorized by state legislation

Question 4

appraisal

Answer 4

process of developing an opinion of a property’s market value, based on established methods and the appraisers personal judgement

Question 5

property manager

Answer 5

person/ company hired to maintain and manage property on behalf of the property owner

Question 6

financing

Answer 6

business of providing the funds that make real estate sales transactions possible

Question 7

subdivision

Answer 7

dividing of a single property into smaller parcels

Question 8

development

Answer 8

involves prep of a site and construction of structures or other improvements

Question 9

home inspection

Answer 9

a profession that combines a practitioners interest in real estate with skills and training in construction trade

Question 10

counseling

Answer 10

providing clients with competent independent advice based on sound professional judgement

Question 11

residential property

Answer 11

single family/ multifamily housing in urban, suburban, or rural areas

Question 12

commercial property

Answer 12

business property

Question 13

mixed use property

Answer 13

allows for 2 or more commercial and residential uses in the same building

Question 14

industrial property

Answer 14

warehouses, factories, power plants, etc

Question 15

agricultural property

Answer 15

farms, timberland, etc

Question 16

special purpose property

Answer 16

privately owned or publicly held (i.e. church, schools, parks, etc)

Question 17

planned unit development (PUD)

Answer 17

each owner owns a unit in a development and has access to shared amenities

Question 18

condominium

Answer 18

each owner owns a unit and co-owner of common areas

Question 19

cooperative

Answer 19

each owner owns a share in a corporation that holds title to the property

Question 20

market

Answer 20

exists when goods can be bought and sold
function: provides a setting in which supply and demand can establish market value

Question 21

supply

Answer 21

quantity of goods or services that can be sold at a given price

Question 22

demand

Answer 22

quantity of goods or services that consumers are willing and able to buy at a given price

Question 23

depreciation

Answer 23

(cost recovery) allows an investor to recover the cost of an income-producing asset through tax deductions of the asset’s useful life

Question 24

capital gain

Answer 24

difference between the purchase price of property and its net selling price

Question 25

liquidity

Answer 25

how quickly an asset may be converted to cash