Unit 1: Intro to Modern RE Practice Flashcards
What are the economic characteristics of land?
scarcity, improvements, permanence of investment, and area preference or situs
What factors is value based on?
objective or subjective factors
What factors is supply and demand affected by?
population changes, demographics, wage and employment levels, construction costs and availability of labor, and government monetary policy and controls
True or False: demand and price move in the same direction
True
What are the 4 stages of the business cycle?
expansion, recession, depression, revival
What are the services in the RE industry?
appraisal, apartment locating, property inspection, property development, counseling, property financing, education, title work, and urban planning
What are the 5 classifications of real property?
residential, commercial, industrial, agricultural, special purpose, or mixed use
What are the seven sources of law?
U.S. Constitution, laws passed by congress, federal & state regulations, state constitutions, laws passed by state legislatures, local ordinances, & court decisions
Which act regulates RE in TX?
The TX RE License Act
Who administers the TX RE License Act?
TX RE Commission (TREC)
Which organizations allow license holders to stay current on RE issues?
National Association of Realtors (NAR), Texas Realtors, local associations of Realtors, & National Association of RE Brokers (NAREB)
abatement
elimination or reduction of RE taxes to attract new business to an area
agricultural RE
farms, timberland, ranches, pastureland, & orchards
broker
one who buys and sells for another for commision
business cycle
upward and downward fluctuations in business activity
commercial RE
business property
common law
body of law based on custom, usage, and court decisions
cost
capital outlay for land, labor, materials, and profits necessary to bring a property to existence
demand
goods people are willing to buy at a given price
demographic
characteristics of human population
industrial real estate
warehouse, factories, and land
market
place where goods can be bought and sold and a price established
mixed-use real estate
combo of the other 5 categories
National Association of Realtors (NAR)
org representing all branches of RE Industry
objective value
actual value in $ of aspect of construction or location
precedent
the requirements established by prior court decisions
price
amount of money paid for an item
realtist
member of NAR Boards
Realtor
trademark for active NAR members
residential RE
housing
sales agent
performs RE activities while employed by/ associated with a broker
Seven Sources of Law
laws affecting the ownership and transfer of RE
Special Purpose RE
worship, schools, cemeteries, govt. lands
subjective value
perceived value based on relative benefits expected to be derived from its use
supply
goods available to be sold at a given price
TX RE Commission (TREC)
appointed by govt. to set policy in implementing the License Act
TX RE License Act (TRELA)
controls the licensing of persons permitted to practice RE brokerage
