chapter 1

Question 1

broker

Answer 1

someone who, for a fee, sells lists, leases, exchanges, negotiates, or otherwise deals in the real estate of others or represents publicly that they do so.

Question 2

brokerage

Answer 2

a business that serves to bring together buyers, and sellers, and/or lessees and lessors of real estate.

Question 3

buyers market

Answer 3

more home available for sale and less buyers

Question 4

cost of money

Answer 4

the interest rate that people or businesses must pay to use another’s money for their own purpose.

Question 5

economic base

Answer 5

the main business or industry in an area that supports and sustains the community.

Question 6

errors and omissions insurance (E&O)

Answer 6

insurance that protects real estate licensees from liability due to mistakes or negligence. it does not cover claims or related to fraud or discrimination.

Question 7

independent contractor

Answer 7

a person who contracts to do a job for another but maintains control over how the task is carried out.

Question 8

inflation

Answer 8

an increase in the cost of goof or services or too many people wanting too few goods.

Question 9

licensee

Answer 9

a person licensed under state law to practice real estate

Question 10

non - homogeneity

Answer 10

a characteristic of real property, each piece of land, each building. and each house is a unique piece of real estate.

Question 11

real estate cycle

Answer 11

general swings in real estate activity, resulting in increasing or decreasing activity and property values during different phases of cycles.

Question 12

realtor

Answer 12

any real estate licensee who is a member of national association of realtors (NAR)and the affiliated state/local boards. only members can use this term

Question 13

salesperson

Answer 13

a real estate licensee who is associated with a licensed broker and who may person most of the acts of real estate on behalf of the broker. (sales associate)

Question 14

scarcity

Answer 14

a physical characteristic of real property that says there is a limited supply real estate. the short supply of housing can drive prices up or down. (can be an economic characteristic)

Question 15

sellers market

Answer 15

when there are a large number of buyers looking for housing in a area in limited availability.

Question 16

supply and demand

Answer 16

an economic principle that says for all products, goods, and services, when the supply exceeds demand, prices will fall and when demand exceeds supply prices will rise.