Unit 1 - Intro to the Real Estate Business

Question 1

Real estate brokerage

Answer 1

the business of bringing people together in a real estate transaction conducted by areal estate broker

Question 2

real estate broker

Answer 2

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

Question 3

real estate salesperson(sales associate)

Answer 3

is a licensed professional who conducts brokerage activities on behalf of thebroker

Question 4

Appraisal

Answer 4

the process of developing an opinion of a property’s value (typically, market value) based on established methods and an appraiser’s professional judgment. Licensing or certification is required for many federally related transactions, andmany statesrequires licensing or certification for other transactions as well.

Question 5

Types of real property

Answer 5

residential,commercial,mixed use,industrial,agricultural, andspecial purpose, which can be privately or publicly held

Question 6

Thereal estate marketreflects

Answer 6

the principle ofsupply and demand, influenced by theuniquenessandimmobilityof parcels of real estate. When the supply increases relative to demand, prices go down, and when demand increases relative to supply, prices go up.

Question 7

The factors affecting thesupplyof real estate include

Answer 7

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

Question 8

The factors affecting thedemandfor real estate include

Answer 8

population, demographics, and employment and wage levels.

Question 9

The buyer of a home can benefit from

Answer 9

tax deductions,exclusion of gainon the sale of the home, andtax credits, when available.

Question 10

Types of housing

Answer 10

• Single-family detached house
• Row house
• Accessory dwelling unit (ADU)
• Apartment building
• Apartment complex
• Condominium
• Cooperative
• Planned unit developments (PUDs)
• Highrise developments or mixed-use developments (MUDs)
• Converted-use properties
• Factory-built housing (manufactured homes)
• Modular homes
• 3D-printed homes

Question 11

Residential:

Answer 11

All property used for single-family or multifamily housing, whether in urban, suburban, or rural areas.

Question 12

Commercial:

Answer 12

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

Question 13

Mixed-use:

Answer 13

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

Question 14

Industrial:

Answer 14

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

Question 15

Agricultural:

Answer 15

Farms, timberland, ranches, and orchards.

Question 16

Special purpose:

Answer 16

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 17

Single-family detached house:

Answer 17

A type of housing that stands alone and is designed for a single family, offering privacy and a yard.

Question 18

Row house

Answer 18

Also known as a townhouse, it is a type of housing that shares a common wall with adjoining properties, usually arranged in a row or a block.

Question 19

Accessory dwelling unit (ADU):

Answer 19

A secondary housing unit located on a single-family house lot that is either attached to or detached from the main dwelling. It can serve as a separate living space.

Question 20

Apartment building:

Answer 20

A multi-story building that consists of multiple individual apartment units, often with shared amenities and facilities.

Question 21

Apartment complex:

Answer 21

A group of apartment buildings with various numbers of units in each building, typically offering additional amenities such as parking, clubhouse, or swimming pool.

Question 22

Condominium:

Answer 22

A residential ownership form where individuals own individual units but share ownership of common facilities and areas with other unit owners, managed by a governing association.

Question 23

Cooperative:

Answer 23

A type of housing where residents own shares in a corporation that holds the title to the real estate, and each shareholder receives a proprietary lease to a specified unit.

Question 24

Planned unit developments (PUDs):

Answer 24

Also known as master-planned communities, they are self-contained developments that merge different land uses, such as housing, recreation, and commercial units, into one community.

Question 25

High rise developments or mixed-use developments (MUDs):

Answer 25

Vertical communities that combine residential units with office spaces, stores, theaters, and other amenities within a single building.

Question 26

Converted-use properties:

Answer 26

Former industrial or commercial buildings that have been converted into residential use, such as warehouses, factories, or schools.

Question 27

Factory-built housing (manufactured homes):

Answer 27

Permanent residences built in factories to federal specifications, offering affordable and customizable housing options.

Question 28

Modular homes:

Answer 28

Homes constructed with pre-fabricated components that are assembled on-site, providing a faster and cost-effective alternative to traditional stick-built construction.

Question 29

3D-printed homes:

Answer 29

Homes created using 3D printing technology, where structures are built layer by layer, potentially offering a more efficient and sustainable approach to housing construction.

Question 30

The major goal of fair housing laws is

Answer 30

to prevent discrimination in the provision of housing and housing-related services based on characteristics such as race, color, national origin, religion, sex, familial status, or disability.

Question 31

Factors that tend to affect the supply side of the real estate market's supply and demand balance include

Answer 31

labor force availability, construction and material costs, and governmental controls and financial policies

Question 32

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

Answer 32

population, demographics, and employment and wage levels.

Question 33

For mortgages taken out after December 14, 2018, an individual may deduct interest on debt up to

Answer 33

750,000

Question 34

Loans in existence prior to that date are not affected, as long as they are not over

Answer 34

1,000,000

Question 35

State and local real estate taxes can be used as an itemized deduction up to a limit of

Answer 35

10,000