Unit 17 Flashcards
Learning Objective: Identify the various practice areas available in real estate.
Answer: Practice areas in real estate include residential brokerage, commercial brokerage, farm and ranch sales, property management, appraisal, and real estate counseling, among others.
Learning Objective: Describe the ways a sales agent becomes competent to practice in a particular area.
Answer: A sales agent becomes competent by gaining education, training, and experience in the specific area of practice, often through mentorship and continuing education programs.
Learning Objective: List the various real estate-related disciplines.
Answer: Real estate-related disciplines include appraisal, property management, financing, real estate counseling, inspection, time-share management, and land development.
Learning Objective: Identify the major types of real estate brokerage.
Answer: Major types of real estate brokerage include residential brokerage, commercial brokerage, and property management.
Key Term: Appraisal
Definition: The process of estimating the value of real property.
Key Term: Auctioneer
Definition: A licensed professional who conducts auctions, including competitive bidding on real estate.
Key Term: Commercial Broker
Definition: A real estate professional specializing in the sale, lease, or management of commercial properties.
Key Term: Farm and Ranch or Land Sales Broker
Definition: A broker specializing in the sale of agricultural land or undeveloped property.
Key Term: Financing
Definition: The process of securing funds for the purchase of real estate, often through loans or mortgages.
Key Term: Petroleum Landman
Definition: A professional who manages land rights for oil, gas, and mineral exploration.
Key Term: Property Development
Definition: The process of acquiring, improving, and constructing real estate projects.
Key Term: Property Management
Definition: The operation, control, and oversight of real estate properties on behalf of the owner.
Key Term: Residential Broker
Definition: A real estate professional focusing on the sale or lease of residential properties.
Key Term: Real Estate Counselor
Definition: A professional who provides advice and guidance on real estate investments and decisions.
Key Term: Real Estate Inspector
Definition: A licensed professional who evaluates the condition of real property systems, including structural, electrical, and mechanical components.
Key Term: Residential Rental Locator
Definition: A professional who assists tenants in finding rental properties, often working independently or as part of an agency.
Key Term: Time-Share
Definition: A form of property ownership involving shared use or ownership of a vacation property for specified time periods.
The business of bringing together a buyer and a seller who are interested in making a real estate transaction is called
A. leverage.
B. agency.
C. brokerage.
D. arbitrage.
Answer: C. Brokerage.
Reasoning: Brokerage refers to the business of facilitating real estate transactions by connecting buyers and sellers.
Real estate–related disciplines include all of the following EXCEPT
A. finance.
B. appraisal.
C. title work.
D. tort reform.
Answer: D. Tort reform.
Reasoning: Tort reform is a legal matter unrelated to real estate disciplines such as finance, appraisal, or title work.
Which real estate practice area requires a special designation from TREC?
A. Commercial brokerage
B. Rental locator service
C. Property management
D. None of these
Answer: D. None of these.
Reasoning: TREC does not require specific designations for these practice areas beyond general licensure.
An REO property is usually owned by all of the following EXCEPT
A. lender.
B. government agency.
C. bank.
D. title company.
Answer: D. Title company.
Reasoning: REO (Real Estate Owned) properties are typically owned by lenders, banks, or government agencies after foreclosure, not title companies.
A broker is responsible for making sure that sponsored sales agents have sufficient education to perform their authorized activities in what manner?
A. Facilely
B. Competently
C. Fluently
D. Randomly
Answer: B. Competently.
Reasoning: Brokers are required by TREC to ensure that sales agents operate competently, adhering to professional standards.
A residential rental locator does all of the following EXCEPT
A. finds apartment units for prospective tenants.
B. qualifies prospective tenants.
C. qualifies roommates for existing tenants.
D. negotiates leases with the apartment complexes.
Answer: C. Qualifies roommates for existing tenants.
Reasoning: Residential rental locators focus on pairing tenants with apartments, not managing roommate arrangements.
A residential rental locator works in what capacity for apartment complexes?
A. Independent contractor
B. Employee
C. Consultant
D. Sponsoree
Answer: A. Independent contractor.
Reasoning: Residential rental locators typically operate as independent contractors for apartment complexes.
Multiple offers to purchase real estate are NOT considered competitive bids requiring an auctioneer’s licensure if
A. all the material terms of the transaction other than price are different.
B. all the material terms of the transaction other than price are the same.
C. none of the material terms of the transaction other than price are different.
D. all the material terms of the transaction regardless of price are the same.
Answer: B. All the material terms of the transaction other than price are the same.
Reasoning: An auctioneer’s license is not required if the only variable in multiple offers is the price, provided other terms remain identical.
A real estate inspector is generally hired by whom to inspect real property?
A. Lender
B. Buyer
C. Seller
D. Broker
Answer: B. Buyer.
Reasoning: Buyers commonly hire real estate inspectors to assess the condition of a property before purchase.
A real estate inspector is generally hired to give an opinion as to the condition of all of the following systems EXCEPT
A. structural.
B. electrical.
C. mechanical.
D. sound.
Answer: D. Sound.
Reasoning: Real estate inspectors focus on structural, electrical, and mechanical systems, not soundproofing or acoustics.
Property inspectors are licensed by which of the following state agencies?
A. Texas Real Estate Commission
B. Texas Department of Licensing and Regulation
C. Texas Property Inspection Licensing Board
D. None of these
Answer: A. Texas Real Estate Commission.
Reasoning: Property inspectors in Texas are licensed and regulated by the Texas Real Estate Commission (TREC).
A landman conducts business activities related to all of the following EXCEPT
A. oil.
B. gas.
C. mineral exploration.
D. timber.
Answer: D. Timber.
Reasoning: Landmen focus on oil, gas, and mineral rights rather than timber-related activities.
A landman typically works for which of the following?
A. Oil and gas companies
B. Lenders
C. Real estate brokers
D. Title companies
Answer: A. Oil and gas companies.
Reasoning: Landmen are commonly employed by oil and gas companies to negotiate and manage mineral rights and leases.
A landman is licensed by
A. the Texas Real Estate Commission.
B. the Texas Department of Licensing and Regulation.
C. the Petroleum Regulatory Commission.
D. no one because no license is required.
Answer: D. No one because no license is required.
Reasoning: Landmen are not currently required to hold a license in Texas or by any other regulatory agency.
