Chapter 1 Flashcards
What is a comparative market analysis?
A value estimate based on recent sales of similar properties in the same neighborhood.
What is valuation?
Real estate licensees must be able to discern important differences and properly understand how those differences translate into value.
A residential transaction is defined as…
Agricultural properties of ten acres of less.
What is farming?
A practice in which a licensee concentrates on one type or style of property or on one particular neighborhood.
What does a property manager’s responsibilities include?
Locating tenants, collecting rents, handling the payment of taxes, insurance, and other operating expenses, maintaining records, and scheduling maintenance.
What is counseling?
It is a highly specialized service and requires a greater level of knowledge and experience than any other facet of the real estate profession.
What does USPAP stand for?
Uniform Standards of Professional Appraisal Practices
In what circumstances can a real estate licensee perform an appraisal?
A real estate licensee can perform an appraisal under the real estate license law if the appraisal is not to be used in a federally regulated transaction, the report is prepared in accordance with USPAP, and the transaction value is $250,000 or less.
What is the lifeblood of the real estate business?
Borrowed money. Most real estate transactions involve financing to some extent.
What is tract building?
It is when a developer acquired a large tract of land and builds a model center from which sales may be made.
What is a dedication?
The ownership of streets and sidewalks is typically conveyed by a developer to the city or county upon completion of construction of a subdivision. This transfer of ownership is referred to as dedication and gives the public the right of use.
What is the National Association of REALTORS(NAR)?
It is the nation’s largest trade and professional association, with a goal of preserving the right of individuals to own real property through an exchange of information.
Which members are called REALTORS(r)?
Practitioners from all areas of expertise in the real estate profession. Members must agree to abide by a strict Code of Ethics and conduct their business under the Standards of Practice, which are designed to specify conduct required under the Code of Ethics and provide optimum service to the public.
The term REALTOR(r) is a registered trademark of….
The NAR.
At what level does planning and zoning, property taxation, building and health codes and regulations, and building moratoriums which affect development, play a significant role in the cost and desirability of real estate?
The local level.
A contractor who builds on his or her own lot in the hope of finding a purchase upon completion is building on ___________.
spec (or speculation)
One type of a residential sales transaction involves the sale of any improved residential property of _____ units or less.
four
The term _________ is a registered trademark of the National Association of REALTORS(r) and may be used only by the members of the organization.
REALTOR(r)
Most real estate licensees are involved in __________ brokerage.
residential
Property management has grown as a service of real estate primarily because of an increase in _______________.
Absentee ownership
That portion of the Federal Financial Institutions Reform, Recovery and Enforcement Act that requires the use of a state-licensed or state-certified appraisers is __________.
Title XI
An estimate of the value of property developed by a real estate licensee for use in listing or selling property is known as a ____________.
Comparative market analysis
Mortgage loan originators are licensed in Florida by the _____________.
Department of Financial Services
The category of construction that applies when a property owner employs a contractor to build according to their individual specifications is called ______________.
Custom building
