Unit 1: The Industry and Brokerage

Question 1

Real Estate Brokerage

Answer 1

The business of bringing together buyers and sellers and negotiating real estate transactions.

Question 2

Home Inspector

Answer 2

Provides visual inspection of a property’s structure, systems, and site conditions and provides report to the buyer

Question 3

Appraiser

Answer 3

Estimates property values based on established valuation guidelines

Question 4

Lender/Investor

Answer 4

Provides funds for development and purchase of real estate.

Question 5

Appraisal

Answer 5

An opinion or estimate of a property’s value found for a specific purpose, for a specific person, as of a specific date, and based on proven facts.

Question 6

Subdivision plat

Answer 6

a written record of the land divided into lots.

Question 7

Spec “speculative” home

Answer 7

The developer builds homes without a buyer in advance of construction.

Question 8

Tract home

Answer 8

The developer may build some model homes, which buyers can then select a floor plan and a lot for their home in the subdivision.

Question 9

Custom home

Answer 9

The buyers or architects typically provide building plans which a builder will construct under contract for the buyer.

Question 10

Caveat Emptor

Answer 10

Let the buyer beware”) is the legal principle that the buyer is responsible for checking the quality of the product before making a purchase.

Question 11

Sales Associate