Real Estate Course Chapter 1 Flashcards Preview

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Flashcards in Real Estate Course Chapter 1 Deck (25):
1

The real estate agent is a professional who provides specialized service and expertise in at least five areas. They are:

1. Details of property transfer (title transfer, property taxes, financing, local zoning ordinances, writing the sales contract/form competency.)
2) Knowledge of market conditions and their changes and fluctuations/supply and demand
3) Knowledge of how to market real estate or business
4) Knowledge of how to analyze buyer's needs
5) Knowledge of laws that pertain to real estate

2

Define Real Estate brokerage

the business of bringing together buyers and sellers, owners, and renters, and completing real estate transactions.

3

Real estate has been called ..

...the lifeblood of the brokerage business

4

Define "residential real estate"

four or fewer residential units, vacant land zoned for four or fewer residential units, or agricultural property of ten or fewer acres.

5

Agricultural property is defined as

Agricultural property of more than 10 acres.

6

Give the definition of "Farm area."

One specific portion of a city that a real estate professional focuses on

7

What is a "Business Opportunity Brokerage"?

It is the real estate activity of a Business Broker. It involves the sale or lease of an existing business.

8

What is an "absentee owner"?

A property owner who does not reside on the property and who often relies on a property manager to manage the investment.

9

Define appraisal"

It is the process of estimating the value of real property.

10

What is a CMA?

Comparative Market Analysis

11

Can a CMA be referred to as an appraisal?

No

12

What is a BPO?

BROKERS PRICE OPINION. The written opinion of the value of real property. They can only be done under the control and management of the associate's employing broker.

13

What are the three general phases of development and construction?

1) Land acquisition and development
2) Subdividing and development
3) Construction

14

What is subdividing

the process of converting parcels of land into smaller units or lots

15

What is a subdivision plat map?

It is an engineer's plan for land use superimposed on a map of the land to be developed

16

Related to development and construction, what is "dedication."

Dedication is the gift of land by an owner, in this case a developer, to a government body for a public use (i.e. the streets, sidewalks).

17

Name and define the three general categories of residential construction

1) Speculative-purchasing one or more lots and constructing a home (or homes) without a buyer in advance of construction
2) Custom homes - A custom builder constructs homes under contract with a buyer, often using building plans provided by architects or buyers
3) Tract homes - a type of speculative building. A subvision will pre-build several style model home types . They buyer select the floor plan from the models and a lot on which to build in the new subdivision

18

Define Deed Restriction

Deed restrictions refer to a single parcel of land. Deed restrictions are placed by an owner who has created a restriction on future owners of the parcel of real estate.

19

Define Restrictive Covenants

Restrictive Covenants impose limitiation on the use of land in an entire subdivision

20

How does local government impact the real estate business

Through property taxation and regulatory activieis such a occupational licensing, business tax receipts, building permits, building moratoriums, zoning and building codes

21

How does state government impact the real estate business

identifies coastal regions and other areas that are protected from development. State doc and intangible taxes.

22

How does the federal goverments impant the real estate business

Through various agencies: HUD, VA, FHA, WPA, IRS

23

With respect to a BPO, do the USPAP statandard of practice apply

No

24

What is the Acronym USPAP

Uniform Standards of Professional Appraisal Practice

25

What is property management devoted to?

Leasing, managing, marketings, and overall maintenance of the property for others