Unit 1: Introduction to the Real Estate Business Flashcards
Associate Licensee
A licensed Real Estate sales person who is employed by or associated with the broker to perform brokerage activities on behalf of/ or for the broker.
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.
Broker
One who acts as an intermediary on behalf of others for a fee or commission.
Capital Gain
Profit earned from the sale of an asset
Depreciation
In real estate investment, a deduction for tax purposes taken over the period of ownership income property, based on the property’s acquisition cost.
Equity Buildup
That portion of the loan payment directed toward the principal rather than the interest, plus any gain in property values due to appreciation.
Exchanges
A transaction in which all or part of the consideration is the transfer of like-kind property. (e.g., real estate for real estate)
Fair Housing
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 its true value, in a short period of time.
Market
A place where goods can be purchased and sold and a price is 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 real estate broker.
Salesperson
Sales Associate,
Supply and Demand
The appraisal principle that follows the interrelationship of the supply and demand in real estate. Because appraising is based on economic concepts, this principle recognizes that real property is subject to the influences of the market place as with any other commodity.
