Unit 1 & 2 Flashcards
The business of bringing people together in a real estate transaction.
BROKERAGE
Acts as a point of contact between two or more people in negotiating the sale, purchase, or rental of property.
REAL ESTATE “LICENSEE”
All licensees are employed by a:
SPONSORING BROKER
The process of rendering an opinion of a property’s market value based on established methods and the appraiser’s professional judgment.
Appraisal
Providing clients with competent independent advice based on sound professional judgement.
Counseling
Conducts a thorough visual survey of a property’s structure, systems, and site conditions and prepare an analytical report that is valuable to both purchasers and homeowners.
Home Inspector
Members of the National Association of Real Estate Brokers are called:
REALISTS
Members of the National Association of Realtors are called:
REALTORS
Types (Categories) of Real Property are:
Agriculture
Residential
Commercial
Industrial
Special Purpose
A place where goods can be bought and sold
Market
Factors that affect the demand of real estate
Population
Demographics
Employment & Wage Levels
Factors that affect supply of real estate
Labor Force
Construction Costs
Government Controls
Government Financial Policies
When supply increases and demand remains stable:
Prices go down
When demand increases and supply remains stable:
Prices go up
High demand results in:
Higher prices
Low demand results in:
Low prices
A professional opinion of a property’s market value, based on established methods and using trained, professional judgment, is performed by a….
Real Estate Appraisal
In general, when the supply of a certain commodity increases…..
Prices drop
Which of these factors tends to affect supply in the real estate market…
Population
Demographics
Employment and wage levels
GOVERNMENT CONTROLS AND FINANCIAL POLICIES
What is the most widely recognized real estate activity?
Brokerage
How many units is considered residential?
1-4 units
How many units is considered commercial real estate?
5 + units
How long do you have to get a sponsoring broker after you’ve passed the state exam before they will issue you your license?
You have ONE year to get a sponsoring broker. If not, you have to re-take the state exam.
Who is responsible for maintaining a client’s property and maximizing the return on the client’s investment, a real estate licensee is serving as…..
PROPERTY MANAGER
Local government can influence the supply of real estate by
Land-use controls
zoning ordinances
building codes
ALL OF THESE
Real Estate is a…
Business with many specialties
How many types of R.E. Licenses are in Illinois?
3 (Broker; Managing Broker; Residential Leasing Agent)
Brokerage is in the business of:
Bringing people together
Immobility refers to:
The fact that property cannot be relocated to satisfy demand where supply is low.
Land is defined as:
The earth’s surface extending downward to the center of the earth and upward to infinity.
Real Estate is defined as:
Land at, above and below the earth’s surface, plus all things that are permanently attached to it.
Real Property is:
The interests, benefits, and rights that are automatically included in the ownership of land and real estate.
Appurtenance (definition)
Anything tangible or intangible associated with the property, although not necessarily a direct part of it. (parking spaces in a multi-unit building; septic tanks; easements; water rights; and other improvements) An appurtenance is CONNECTED to the property and ownership of the appurtenance normally TRANSFERS to the new owner when the property is sold.
Economic characteristics of real estate:
Scarcity
Improvements
Permanence of investment
Location
Physical characteristics of real estate:
Indestructibility
Immobility
Uniqueness
Real Property Bundle of Rights Ownership
Right to exclude
Right to disposition
Right of possession
Right of enjoyment
Right to control the property
Any word ending in “OR” is:
The Giver (i.e. Mortgagor; grantor)
Any word ending in “EE” is:
The recipient (i.e. Leesee; grantee)
When is a deed valid?
When it is delivered and accepted.
Real Property Examples:
Microwave that is bolted in.
Plants; Trees; Grasses that do not require annual cultivation.
What does MAA stand for:
Method of Attachment
Adaptation to Real Estate
Agreement
7 types of Real Estate Laws are:
- Contract
- General Property
- Agency
- Real Estate License
- Federal, State, Local
- Zoning
- Environmental
What is the most important economic characteristic of real estate?
Location!!!
