Unit 1

Question 1

Broker

Answer 1

(1) One who acts as an intermediary on behalf of others for a fee or commission. (2) One who is licensed to list, lease, buy, exchange, auction, negotiate or sell interest in real estate for others for a fee.

Question 2

Business Cycle

Answer 2

The upward and downward fluctuatios in business activites generall characterized by four stages: expansion, recessio, depression, and revival.

Question 3

Chattel/Personal Property/ Personalty

Answer 3

Items, called chattels or personalty, that do not fit into the definition of real proeprty; movable objects. Examples would include furniture, clothing, jewelry, money, vehicles, etc.

Question 4

Demand

Answer 4

The amount of goods people are willing and able to buy at a given price; often coupled with supply.

Question 5

Hereditaments

Answer 5

Any interest in real estate capable of being inherited.

Question 6

Highest and best use

Answer 6

The possible use of a property that would produce the greatest net income and thereby develop the highest value.

Question 7

Land

Answer 7

The earth’s surface, extending downward to the center of the earth and upward infinitely into space, including things permanently attached by nature, such as trees and water.

Question 8

Market

Answer 8

A place where goods can be bought and sold and value established.

Question 9

Nonhomogeneity

Answer 9

A lack of uniformity; dissimilarity; heterogeneity. Because no two parcels of land are exactly alike, real estate is said to be nonhomogeneic.

Question 10

Provisional Broker

Answer 10

A real estate licensee who perfomrs real estate activities under the supervision of a licensed real esate broker-in-charge. Must complete postlicensing courses to remove the provisional license status.

Question 11

Real Estate

Answer 11

Land; a protion of the earth’s surface extending downward to the center of the earth and upward infinitely into space, including all things permanently attached to it, whether naturally or artificially.

Question 12

Real Property

Answer 12

The land plus permanent improvements and he interests, benefits, and rights inherent in real estate ownership.

Question 13

Situs

Answer 13

The personal preference of people for one location over another, not necessarily based on objective facts and knowledge.

Question 14

Supply

Answer 14

The amount of goods available in the market to be sold at a given price. The term is often coupled with demand.

Question 15

Tenements

Answer 15

Any Structures attached to the land.