Unit 1: Introduction to the Real Estate Business

Question 1

the business of bringing people together in a real estate transaction

Answer 1

Real estate brokerage

Question 2

a person or company licensed to buy, sell, exchange, or lease real property for others for compensation

Answer 2

Real estate broker

Question 3

conducts brokerage activities on behalf of the broker

Answer 3

Real estate salesperson

Question 4

the process of developing an opinion of a property’s value (typically market value) based on established methods and an appraiser’s professional judgment

Answer 4

Appraisal

Question 5

a person or company hired to maintain and manage property on behalf of the property owner

Answer 5

Property manager

Question 6

describes the property manager’s scope of work

Answer 6

Management agreement

Question 7

the business of providing the funds that make real estate transactions possible through loans secured by a mortgage or deed of trust on the property

Answer 7

Financing

Question 8

splitting a single property into smaller parcels and constructing improvements on the land

Answer 8

Subdivision and development

Question 9

of interest to both purchasers and homeowners, and an inspection report will show results of a thorough survey of observable property conditions

Answer 9

Home inspection

Question 10

involves independent advice based on sound professional judgment regarding how to buy, sell, or invest in property

Answer 10

Real estate counseling

Question 11

residential, commercial, mixed-use, industrial, agricultural, and special purpose are

Answer 11

Types of real property

Question 12

in the provision of housing and related services, this is prohibited by federal law

Answer 12

Discrimination

Question 13

is influenced by the uniqueness and immobility of parcels of real estate

Answer 13

Supply and demand

Question 14

factors affecting —– include labor force availability, construction and material costs, government controls, and monetary policy

Answer 14

Supply

Question 15

factors affecting —– include population, demographics, and employment and wage levels

Answer 15

Demand

Question 16

tax deductions, exclusion of gain on sale of the home, and tax credits are

Answer 16

Benefits to a buyer

Question 17

high rate of return, control, property appreciation, equity buildup, leveraging of funds, tax benefits, capital gains are

Answer 17

Advantages of real estate investing

Question 18

lack of liquidity and active management requirements are

Answer 18

Disadvantages of real estate investing