CH 1 - Introduction Flashcards Preview

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Flashcards in CH 1 - Introduction Deck (18):
1

Real Estate Brokerage

The business of bringing people together in a real estate transaction

2

Real Estate Broker

A person or company who is licensed to buy, sell, exchange, or lease real property for others for compensation

3

Real Estate Salesperson

A salesperson conducts brokerage activities on behalf of the broker

4

Appraisal

the process of developing an opinion of a property's value

5

Property management

maintenance and property management on behalf of the property owner

6

Property manager

a person or company that performs property management

7

Management agreement

the work outlined by the investor to be done by the property manager

8

What is the responsibility of the property manager?

1. Protect the investment
2. Make as much money for the investor

9

Financing

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. THE FUNDING is provided by commercial banks, thrifts, credit unions, mortgage bankers, and mortgage brokerage companies.

10

Subdivision

splitting a single property into smaller parcels

11

Development

Constructing improvements on the land

12

Home inspection

Inspections show results of a thorough survey of observable property conditions. Inspectors need to be licensed.

13

Real Estate counseling

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

14

Types of real property

1. Residential
2. Commercial
3. Mixed Use
4. Industrial
5. Agricultural
6. Special purpose

15

Supply and Demand

The market forces that affect prices

16

Two properties of real estate

1. Uniqueness
2. Immobility

17

Factors that affect supply

1. number of jobs
2. construction and material costs
3. government controls
4. monetary policy

18

Factors that affect demand

1. number of people
2. demographics (age groups)
3. employment and wage levels