Chapter 1: Intro To R.E. Biz

Question 1

Point of contact between 2 or more people in negotiating the sale, purchase, or rental property?

Answer 1

Real Estate Broker

Question 2

A person, or company licensed to buy, sell, exchange, or lease real property for others & charges a fee for these services?

Answer 2

Broker

Question 3

A licensee employed by, or associated with the broker and conducts brokerage activities on behalf of or for the broker?

Answer 3

Real Estate Salesperson

Question 4

A person who has satisfied the requirements set forth by a licensing agency or state legislation?

Answer 4

Licensee

Question 5

Process of estimating a property’s market value based on established methods and the appraiser’s professional judgment?

Answer 5

Appraisal

Question 6

Visual examination of the components of a residential building, including the plumbing system, electrical system, structural components, foundation, roof & the heating and cooling system?

Answer 6

Home Inspection

Question 7

A person or company hired to maintain and manage property on behalf of its owner?

Answer 7

Property Manager

Question 8

The scope of the manager’s work that depends on the terms of the individual employment contract?

Answer 8

Management Agreement

Question 9

The business of providing the funds that make real estate transactions possible when buyers do not have cash for the full purchase price?

Answer 9

Financing

Question 10

Provides title insurance services to buyers, sellers, lenders & developers?

Answer 10

Title Agencies

Question 11

The splitting of a single property into smaller parcels?

Answer 11

Subdivision

Question 12

The construction of improvements on the land?

Answer 12

Development

Question 13

Providing clients with component independent advice based on sound professional judgment?

Answer 13

Counseling/Consulting

Question 14

Colleges, universities, private schools & trade organizations that are available to both practitioners and consumers?

Answer 14

Real Estate Education

Question 15

All real estate used for single-family or multi-family housing?

Answer 15

Residential Property

Question 16

Business real estate, including office space, shopping centers, stores, theaters, hotels and parking facilities?

Answer 16

Commercial Property

Question 17

Property that allows for 2 uses, commercial and residential in the same building?

Answer 17

Mixed-Use Property

Question 18

Warehouses, factories, land in industrial districts and power plants?

Answer 18

Industrial Property

Question 19

Farms, timberland, ranches and orchards?

Answer 19

Agricultural Property

Question 20

Churches, schools, cemeteries and government-held lands?

Answer 20

Special Purpose Property

Question 21

Involves the transfer of title and ownership rights?

Answer 21

Sales Market

Question 22

In which space is used temporarily by lease?

Answer 22

Rental Market

Question 23

Place where goods and services can be bought and sold and where price levels can be established based on supply and demand?

Answer 23

Market

Question 24

The amount of goods available in the market to be sold at a given price?

Answer 24

Supply

Question 25

The amount of goods people are willing and able to buy at a given price?

Answer 25

Demand

Question 26

No 2 parcels of real estate are ever exactly alike?

Answer 26

Uniqueness

Question 27

The fact that property cannot be relocated to satisfy demand where supply is low?

Answer 27

Immobility

Question 28

Factors that tend to affect the supply side of the real estate markets supply and demand balance?

Answer 28

1) Labor force 2) Construction & material costs 3) Government controls 4) Government financial policies

Question 29

A charge made by a lender for the use of money?

Answer 29

Interest

Question 30

The minimum interest rate set by the Federal Reserve for lending to other banks? A rate used for discounting bills of exchange?

Answer 30

Discount Rate

Question 31

Factors that tend to affect the demand side of the real estate market?

Answer 31

1) Population 2) Demographics 3) Employment & wage levels

Question 32

The number of people in an area and the study and description of a population?

Answer 32

Demographics

Question 33

Business of bringing people together in a real estate transaction?

Answer 33

Brokerage