Unit 1 Intro To RE

Question 1

What is a Broker?

Answer 1

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

Question 2

RE Salesperson/Agent

Answer 2

Employed by a Broker to preform brokerage activities on behalf of or for the broker.

Question 3

RE licensee

Answer 3

Person who has satisfied the requirements of a licensing agency or as authorized by a state legislation.

Question 4

Appraisal

Answer 4

Process of developing an opinion of a property’s market value, based on established methods and the appraiser’s professional judgment. Lenders require a professional appraisal for most transactions.

Question 5

Appraisers

Answer 5

Must be licensed or certified for federal related transactions but also licensed or certified in many states to in non-federal transactions. www.appraisalinstitute.org

Question 6

Property Management

Answer 6

A person or company hires to maintain and manage properties on behalf of the property owner. Day-to-day management tasks include finding new tenants, collecting rents, finishing or altering space for tenants, ordering repairs, and generally maintaining the property. Workload depends on the terms of the management agreement. www.boma.org for further details.

Question 7

Financing

Answer 7

Is the business providing the funds that make real estate transactions possible. Most transactions are financed by a loan that is secured by a mortgage or deed of trust on the property purchased. Financing can be seen through commercial banks, thrifts, and credit unions. Along with mortgage banking and mortgage brokerage companies.

Question 8

Subdivision

Answer 8

Is the dividing of a single property into smaller parcels. Development involves the construction of improvements that benefit the land. While subdivision and development are normally related, they are independent processes that can occur separately.

Question 9

Onsite-improvements

Answer 9

Include new homes, and swimming pools which are made in individual parcels.

Question 9

Offsite-improvements

Answer 9

Water lines and storm sewers that are made on public lands to serve the new development.

Question 10

Home Inspector

Answer 10

A profession that combines a practitioner’s interest in real estate with skills and training in the construction trades. Many states have recognized the importance of a thorough home inspection by a competent, well-trained inspector by instituting home inspector licensing requirements that include education, training, examinations, and ongoing coursework. www.ashi.org for further details.

Question 11

Home Inspection

Answer 11

Is when a professional home inspector conducts a thorough visual survey of a property’s structure, systems, and site conditions and prepares an analytical report that is valuable to both purchasers and homeowners. The inspector examines the property from the chimney to the basement, being alert to deterioration, water intrusion, mechanical, or other observable problems. Normally leads to further examinations and fixtures.

Question 12

Counseling/ RE Counselor

Answer 12

Involves providing clients with competent independent advice based on sound professional judgment. RE counselor helps clients choose among the various alternatives involved in purchasing, using, or investing in a property.

Question 13

Education

Answer 13

RE education is available to both practitioners and consumers.

Question 14

Professional Ethics

Answer 14

Moral principles that do two things, they establish standards for integrity and competence.

Question 15

Code of ethics

Answer 15

A written system of standards for ethical conduct. The code contains statements designed to advise, guide, and regulate behavior. Realtors are expected to subscribe to NAR’s code of ethics.

Question 16

Six Categories of Real Property

Answer 16

Residential - All property used for single-family or multi-family housing, whether in urban, suburban, or rural areas.

Commercial - Business property, including office space, shopping centers, stores, theaters, hotels, and parking facilities.

Mixed Use - Property that allows for two uses, commercial and residential, in the same building.

Industrial - Warehouses, factories, land in industrial districts, and power plants

Agricultural - Farms, timberland, ranches and orchards

Special Purpose - Privately owned properties, such as places of worship, schools, and cemeteries, as well as publicly held properties, such as schools, municipal service buildings, and parks.

Question 17

Home Ownership

Answer 17

An investment that may appreciate over the years. Even when a loan is necessary, the interest paid on the loan usually is a deduction from federal income tax. Home ownership can also offer the benefits of pride, security, and a sense of belonging to a community.

Question 18

Single-family detached house

Answer 18

Most popular housing type and has been adopted in urban areas to take the form of the row house.

Question 19

Apartment Building

Answer 19

The response to housing demand in crowded urban areas.

Question 20

Apartment Complex

Answer 20

Made up of a group of apartment buildings with a varying number of units in each building. They may be low-rise or high-rise, and the complex may include parking, security, a clubhouse, a swimming pool, a tennis court, and even a golf course.

Question 21

Condominium

Answer 21

A popular form of residential ownership, offering the security of owning a property without the care and maintenance responsibilities of having a house. A condominium owner owns an individual unit and shares ownership with other unit owners of common facilities. Management and maintenance of the building’s exteriors are provided by the governing association. Making use of a management company includes being charged monthly. Condos are more commonly seen as apartment-style homes, but they also include single-family and even commercial properties.

Question 22

Cooperative

Answer 22

Units that share common walls and facilities within a larger building. Owners don’t own the building; instead, they own a share of the corporation that holds title to the real estate. Each shareholder owns a proprietary lease to a specific unit in the building.

Question 23

Planned Unit Development (PUDs)

Answer 23

These can also be called master-planned communities and may consist entirely of residences, but they can also serve to merge such diverse land uses as housing, recreation, and commercial units into one self-contained development. PUDs are planned under special zoning ordinances. PUD may be a small development of just a few homes or an entire planned city.

Question 24

Highrise Developments (MUDs)

Answer 24

These can also be called mixed-use developments. It combines office space, stores, theatres, and apartment units into a single vertical community. MUDS are usually self-contained and may offer laundry facilities, restaurants, food stores, beauty parlors, barbershops, swimming pools, and other attractive and convenient features.

Question 25

Converted-use Properties

Answer 25

They are structures such as factories, warehouses, office buildings, hotels, schools, churches, and others that have been converted to residential use.

Question 26

Factory-built Housing

Answer 26

They were once often derided mobile homes, the most temporary of residences. Today, what are called manufactured homes are permanent installations built to federal specifications, providing principal residences or vacation homes. The relatively low production cost of assembly-line-type construction in factories. Modular homes or 3D-printed homes also fall into this category.

Question 27

Market

Answer 27

A place where goods can be bought and sold.

Question 28

Supply

Answer 28

Supply is the quantity of goods or services that can be sold at a given price.

Question 29

Demand

Answer 29

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