unit 1

Question 1

Office Building and retail space are examples of

Answer 1

commercial real estate

Question 2

A married couple filing a joint tax return can exclude up to 500,000 of profit on the sale of their principal residence from

Answer 2

capital gains tax

Question 3

Can construction and material affect demand for real estate ?

Answer 3

true or False

Question 4

When the population of a town suddenly increases , which of these is most likely to occur?

Answer 4

Real estate prices will increase

Question 5

Property management, appraisal, financing, and development are all

Answer 5

separate professions within the real estate industry

Question 6

The idea that no two parcels of land are exactly alike is called

Answer 6

uniqueness

Question 7

The factors that can affect the demand for real estate include

Answer 7

demographics

Question 8

A property owner who does not want to deal with the everyday task of managing a rental property can hire

Answer 8

a property manager

Question 9

When the supply of a certain commodity decreases while demand remains the same, the price of that commodity will tend to

Answer 9

increase

Question 10

A factor that affects the supply of real estate but is not usually under goverment control

Answer 10

a shortage of skill labor or building materials

Question 11

Real estate Brokerage

Answer 11

Business of bringing people together in a real estate transaction

Question 12

real estate broker

Answer 12

person or company licensed to buy sell , exchange or lease real property for others for compensation

Question 13

real estate sales person

Answer 13

conduct brokerage activities on behalf of broker

Question 14

Property management

Answer 14

conducted by Property manager

Question 15

Appraisal

Answer 15

process of developing an opinion of a property’s value

Question 16

Subdivision and development

Answer 16

splitting a single property smaller parcels (subdivision) and constructing improvements on land (development)

Question 17

factors affecting the supply of real estate

Answer 17

Labor force availability , construction and material cost , government controls (environmental restrictions, land use policies , building codes, zoning ) monetary policy that impacts interest rates and the money supply

Question 18

Factors affecting demand for real estate

Answer 18

Population, demographics and employment and wage levels

Question 19

How can buyer benefit from buying a home

Answer 19

Tax deduction , exclusion of gains and tax credit

Question 20

Equity

Answer 20

difference between market value and what is owed on the property

Question 21

single taxpayer

Answer 21

250,000 tax benefit when sold

Question 22

Fair housing Act discrimination

7 categories are protected

Answer 22

race, color , national origin ,religion, sex , familial status, or disability

Question 23

Six categories of real property

Answer 23

Residential , commercial , mixed-use, industrial , Agricultural, special Purpose