Unit 1; Introduction to the real estate business Flashcards
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.
REALTOR
A registered trademarked term reserved for the sole use of active members of state and local realtor associations affiliated with the National association of REALTORS.
sales associate
A person who performs real estate activities while employed by a licensed real estate broker
supply
the amount of goods available for sale in the market. The term is often coupled with demand
supply and demand
The appraisal principle that follows the interrelationship of the supply of and demand for real estate. Because appraising is based on economic concepts, the principle recognizes that real property is subject to the influences of the marketplace as with any other commodity.
syndicate
. In a real estate investment syndicate the main profit generally arising from the sale of the property.
tax basis
The point from which gains and losses are figured for tax purposes.
tax credit
an amount by which tax owed is reduced directly
uniqueness
The idea that not matter how identical they ay appear, no two parcels of real estate are ever exactly the same.
Real estate investment trust (REIT)
Trust ownership of real estate by a group of individuals who purchase certificates of ownership in the trust, which in turn invests the money in real property and distributes the profits back to the investors free of corporate income tax.
real estate broker
A person licensed to arrange the buying, selling, leasing, or exchange of real property for a fee.
planned unit development(PUD)
A planned combination of diverse land uses, such as housing recreation, and shopping, in one contained development or subdivision.
Propriety lease
a lease given by the corporation that owns a cooperative apartment building to a shareholder who has the right as a tenant to an individual unit.
niche marketing
The target marketing of specific demographic populations, within the bounds of fair housing laws.
National Association of REALTORS (NAR)
The largest real estate organization in the world; NAR members subscribe to a strict code of ethics. Active members are allowed to use the trademarked designation, realtors.
mortgage
A conditional transfer of pledge of real estate as security for the payment of a debt. Also, the document creating a mortgage lien.
monetary policy
Govermnental regulation of the amount of money in circulation through such institutions as the Federal Reserve Board.
modular home
A type of factory-built housing with components that are assembled at a building site on a prepared foundation.
master-planned community
A planned combination of diverse land uses, such as housing, recreation, and shopping, in one contained development or subdivision; also called a planned unit development(PUD)
manufactured home
A permanent installation built to federal specifications, providing a principal residence or vacation home.
liquidity
The ability to sell an asset and convert it into cash, at a price close to its true value, in a short period of time.
leverage
The use of borrowed money to finance an investment.
intrinsic value
An appraisal term referring to the value of a property unaffected by a person’s personal preferences.
installment sale
A transaction in which the sales price is paid in two or more installments over two or more years. If the sale meets certain requirements, a taxpayer can postpone reporting such income until future years by paying tax each year only on the proceeds received that year.
ethics
The system of moral principles and rules that becomes the standard for professional conduct.
equity buildup
portion of the loan payment directed toward the principle plus any gain in property value due to appreciation.
demographics
The study and description of a population
cost recovery
an internal service term for depreciation.
caveat emptor
A latin phrase meaning” let the buyer beware”
capital gain
Profits
broker
One who acts as an intermediary on behalf of others for a fee or comission.
basis
Cost of the property with any capital expenditures
associate licensee
A licensed real estate salesperson who is employed by or associated with the broker to perform brokerage activities on behalf of or for the broker.
assessment
The imposition of a tax, charge, or levy, usually according to established rates.
appreciation
An increase in the worth or value of a property due to economic or related causes, which may prove to be either temporary or permanent; opposite of depreciation.
appraiser
an independent person trained to provide an unbiased estimate of value
code of ethics
a written system of standards for ethical conduct
demand
The amount of goods people are wiling and able to buy at a given price; often coupled with supply.
development
the constrution of improvements that benefit land.
exchange
A transaction in which all or part of the consideration is the transfer of like-kind property
home inpection
A thorough visual survey of a property’s structure, systems, and site conditions conducted by a professional.
immobility
The fact that property cannot be relocated to satisfy demand where supply is low, nor can buyers always relocate to areas with greater supply.
inflation
The gradual reduction of the purchasing power of the dollar, usually related directly to increase in the money supply by the federal government
market
A place where goods can be bought and sold and a price established
mixed use
Property that accommodates more than one use, such as commercial use and residential use.
