UNIT 1 INTRODUCTION TO REAL ESTATE Flashcards
ASSOCIATE LICENSEE
a licensed real estate salesperson who is employed by or associated with the broker to perform brokerage activities on behalf of the broker
BROKER
one who acts as an intermediary on behalf of others for a fee or commission
BROKERAGE
the bringing together of parties interested in making a real estate transaction
CAPITAL GAIN
profit earned from the sale of an asset
(net selling price - purchase price)
DEPRECIATION
(1) In appraisal, a loss of value in property due to any cause, including physical deterioration, functional obsolescence, and external obsolescence. (2) In Real Estate investment a deduction for tax purposes taken over the period of ownership.
EQUITY BUILDUP
the portion of the loan payment directed toward the principal rather than the interest, plus any gaim the property value due to appreciation.
EXCHANGES
a transaction in which all or part of the onsideration is the transfer of like-kind property
FAIR HOUSING ACT
The federal law that prohibits discrimination in housing based on race, color, religion, sex, disability, familial status, and national origin.
LEVERAGE
The use of borrowed money to finance an investment.
LIQUIDITY
the ability to sell an asset and convert it into cash, at a price close to value in a short period of time.
MARKET
A place where goods can be bought and sold, and a price established.
REAL ESTATE LICENSEE
In real estate practice, a person who has the skills and knowledge to be licensed as a real estate broker or salesperson.
SALES ASSOCIATE
A person who performs real estate activities while employed by a licensed real estate broker.
SUPPLY AND DEMAND
The appraisal principle that follows the interrelationship of the supply of and the demand for real estate. This principle is recognized that real property is subject to the influences of the marketplace.
