UNIT 13 CAREERS Flashcards
home buyer and sellers
tenats and landlords
investors
developers
consumers of real estate
brokerage
A real estate broker acts as a point of contact between two or more people in negotiating the sale, purchase, or rental of property. A broker is defined as a person or company licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services. A real estate salesperson is a licensee employed by or associated with the broker. The real estate salesperson conducts brokerage activities on behalf of or for the broker.
licensee
A licensee refers to a person who has satisfied the requirements set forth by a licensing agency or state legislation. The requirements include course hours or work experience and passing a state-mandated real estate exam. A licensee may be the broker of record, an associate broker, or a salesperson.
appraisal
Appraisal is the process of estimating a property’s market value, based on established methods, and the appraiser’s professional judgment. Although brokers may have some understanding of the valuation process, lenders generally require a professional appraisal. Appraisers must have detailed knowledge of the methods of valuation. In many states, appraisers must be licensed or certified to carry out local transactions. Appraisers must also be licensed or certified for many federally related transactions
Property management
A property manager is a person hired to maintain and manage property on behalf of its owner. By hiring a property manager, the owner is relieved of such day-to-day management tasks as finding new tenants, collecting rents, altering or constructing new space for tenants, ordering repairs, and generally maintaining the property. The scope of the manager’s work depends on the terms of the individual employment contract, known as a management agreement. Whatever tasks are specified, the basic responsibility of the property manager is to protect the owner’s investment and maximize the return on that investment
Financing
Financing is the business of providing the funds that make real estate transactions possible. Most transactions are financed by means of a mortgage loan secured by the property. Individuals involved in financing real estate may work for commercial banks, savings and loan associations, mortgage banking, and mortgage brokerage companies
Subdivision and development
Subdivision is the splitting of a single property into smaller parcels. Development involves the construction of improvements on the land. These improvements may be either on site or off site. Offsite improvements, such as water lines and storm sewers, are made on public lands to serve the new development. Onsite improvements, such as new homes or swimming pools, are made on individual parcels. While subdivision and development are normally related, particularly in housing, they are independent processes that can occur separately
Home inspection
Home inspection is a profession that allows practitioners to combine their interest in real estate with their professional skill and training in the construction trades or engineering. Professional home inspectors conduct a thorough visual survey of a property’s structure, systems, and site conditions, and prepare an analytical report that is valuable to both purchasers and homeowners. Increasingly wary consumers are relying on the inspector’s report to help them make purchase decisions. Frequently, an agreement of sale is contingent on the inspector’s report.
Counseling
Counseling involves providing clients with competent independent advice based on sound professional judgment. A real estate counselor helps clients choose among the various alternatives involved in purchasing, using, or investing in property. A counselor’s role is to furnish clients with the information needed to make informed decisions. Professional real estate counselors must have a high degree of industry expertise. In Pennsylvania, real estate counselors or consultants must be licensed real estate brokers.
Education
Real estate education is available to both practitioners and consumers. Colleges and universities, private schools, and trade organizations all conduct real estate courses and seminars from the principles of a prelicensing program to the technical aspects of tax and exchange law. State licensing laws establish the minimum educational requirements for obtaining—and keeping—a real estate license. Continuing education helps ensure that licensees keep their skills and knowledge current.
home inspector
is the person in the transaction to prepare the analytical report about the condition of the property
