Unit 1: Intro to Modern RE Practice

Question 1

What are the economic characteristics of land?

Answer 1

scarcity, improvements, permanence of investment, and area preference or situs

Question 2

What factors is value based on?

Answer 2

objective or subjective factors

Question 3

What factors is supply and demand affected by?

Answer 3

population changes, demographics, wage and employment levels, construction costs and availability of labor, and government monetary policy and controls

Question 4

True or False: demand and price move in the same direction

Answer 4

True

Question 5

What are the 4 stages of the business cycle?

Answer 5

expansion, recession, depression, revival

Question 6

What are the services in the RE industry?

Answer 6

appraisal, apartment locating, property inspection, property development, counseling, property financing, education, title work, and urban planning

Question 7

What are the 5 classifications of real property?

Answer 7

residential, commercial, industrial, agricultural, special purpose, or mixed use

Question 8

What are the seven sources of law?

Answer 8

U.S. Constitution, laws passed by congress, federal & state regulations, state constitutions, laws passed by state legislatures, local ordinances, & court decisions

Question 9

Which act regulates RE in TX?

Answer 9

The TX RE License Act

Question 10

Who administers the TX RE License Act?

Answer 10

TX RE Commission (TREC)

Question 11

Which organizations allow license holders to stay current on RE issues?

Answer 11

National Association of Realtors (NAR), Texas Realtors, local associations of Realtors, & National Association of RE Brokers (NAREB)

Question 12

abatement

Answer 12

elimination or reduction of RE taxes to attract new business to an area

Question 13

agricultural RE

Answer 13

farms, timberland, ranches, pastureland, & orchards

Question 14

broker

Answer 14

one who buys and sells for another for commision

Question 15

business cycle

Answer 15

upward and downward fluctuations in business activity

Question 16

commercial RE

Answer 16

business property

Question 17

common law

Answer 17

body of law based on custom, usage, and court decisions

Question 18

cost

Answer 18

capital outlay for land, labor, materials, and profits necessary to bring a property to existence

Question 19

demand

Answer 19

goods people are willing to buy at a given price

Question 20

demographic

Answer 20

characteristics of human population

Question 21

industrial real estate

Answer 21

warehouse, factories, and land

Question 22

market

Answer 22

place where goods can be bought and sold and a price established

Question 23

mixed-use real estate

Answer 23

combo of the other 5 categories

Question 24

National Association of Realtors (NAR)

Answer 24

org representing all branches of RE Industry

Question 25

objective value

Answer 25

actual value in $ of aspect of construction or location

Question 26

precedent

Answer 26

the requirements established by prior court decisions

Question 27

price

Answer 27

amount of money paid for an item

Question 28

realtist

Answer 28

member of NAR Boards

Question 29

Realtor

Answer 29

trademark for active NAR members

Question 30

residential RE

Answer 30

housing

Question 31

sales agent

Answer 31

performs RE activities while employed by/ associated with a broker

Question 32

Seven Sources of Law

Answer 32

laws affecting the ownership and transfer of RE

Question 33

Special Purpose RE

Answer 33

worship, schools, cemeteries, govt. lands

Question 34

subjective value

Answer 34

perceived value based on relative benefits expected to be derived from its use

Question 35

supply

Answer 35

goods available to be sold at a given price

Question 36

TX RE Commission (TREC)

Answer 36

appointed by govt. to set policy in implementing the License Act

Question 37

TX RE License Act (TRELA)

Answer 37

controls the licensing of persons permitted to practice RE brokerage