Unit 1 Key Terms Flashcards
A licensee real estate salesperson who is employed by or associated with the broker to perform brokerage activities on behalf of or for the broker.
Associate Licensee
An increase in the worth or value of property due to economic or related causes, which may prove to be either temporary or permanent.
Appreciation
One who acts as a intermediary on behalf of others for a fee or commission.
Broker
Profit earned from the sale of an asset.
Capital Gain
(1) In appraisal, a loss of value in property due to any cause.
(2) In real estate investment, a deduction for tax purposes taken over the period of ownership of income property, based on the property’s acquisition cost.
Depreciation
The portion of the loan payment directed toward the principal rather than the interest, plus any gain in property value due to appreciation.
Equity Buildup
A transaction in which all or part of the consideration is the transfer of like-kind property (e.g. real estate for real estate).
Exchanges
The federal law that prohibits discrimination in housing based on race, color, religion, sex, disability, familial status, and national origin.
Fair Housing Act
The use of borrowed money to finance an investment
Leverage
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.
Liquidity
A place where goods can be bought and sold and a price established
Market
A person who has the skills and knowledge to be licensed as a real estate broker or salesperson
Real Estate Licensee
A person who performs real estate activities while employed by a licensed real estate broker
Sales Associate
The amount of goods available for sale in the market and The amount of goods people are willing and able to to buy at a given price.
Supply and Demand
Factors affecting the demand for real estate include
Population, demographics, and employment and wage levels
