Intro to the Real Estate Business

Question 1

Brokerage

Answer 1

The business of bringing people together in a real estate transaction

Question 2

Broker

Answer 2

a person or company licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services

Question 3

Salesperson

Answer 3

employed by or associated with the broker to perform brokerage activities on behalf of or for the broker, and may also be referred to as a sales associate or associate licensee

Question 4

Real Estate License

Answer 4

Person who has satisfied the requirements of a licensing agency, a authorized by state legislation

Question 5

Real Estate Licensee

Answer 5

A person who has satisfied the requirements of a licensing agency, as authorized by state legislation

Question 6

Appraisal

Answer 6

The process of developing an opinion of a property’s market value, based on established methods and the appraiser’s professional judgement

Question 7

Property Manager

Answer 7

A person or company hired to maintain and manage property on behalf of the property owner. The basic responsibility of the property manager is to protect the owner’s investment and maximize the return on that investment

Question 8

Financing

Answer 8

The business of providing the funds that make real estate sales transactions possible. Most sales are financed by a loan that is secured by a mortgage or deed of trust on the property purchased

Question 9

Subdivision

Answer 9

Dividing of a single property into smaller parcels

Question 10

Development

Answer 10

Involves preparation of a site and construction of structures or other improvements.
Off-site improvements, such as water lines and storm sewers are made on public lands to serve the new development
On-site improvements, such as new homes or recreational amenities, are made on individual parcels

Question 11

Home Inspection

Answer 11

A profession that combines a practitioner’s interest in real estate with skills and training in the construction trade. They conduct a thorough visual survey if a property’s structure, systems, and site conditions and prepares an analytical report that us valuable to both purchasers and homeowners

Question 12

Caveat Emptor

Answer 12

The principle that the buyer is responsible for checking the quality and sustainability of goods before a purchase is made

Question 13

Counseling

Answer 13

Involves providing clients with competent independent advice based in sound professional judgement. Helps client choose among various alternatives involved in purchasing, leasing, using, or investing in property

Question 14

What are the six categories of real property?

Answer 14

Residential, commercial, mixed-use, industrial, agricultural and special purpose

Question 15

Residential Property is

Answer 15

all property used for single-family, or multi-family housing, whether in urban, suburban or rural areas

Question 16

Commercial Property is

Answer 16

business property, including office space, shopping centers, stores, theaters, hotels, and parking facilities

Question 17

Mixed-use property is

Answer 17

property that allows for two or more commercial and residential uses in the same building

Question 18

Agricultural property is

Answer 18

farms, timberland, ranches, and orchards

Question 19

Special Purpose Property is

Answer 19

privately owned properties, such as places of worship, schools and cemeteries, as well as publicly held properties, such as schools municipal service buildings, and parks

Question 20

The most common real estate transaction is

Answer 20

the purchase if a home or residential property