Unit 1: Introduction to the Real Estate Business Flashcards
(19 cards)
Who do clients hire for representation in real estate transactions?
Brokerage firm
Commercial and residential uses in the same building or development is known as which type of real estate?
Mixed use
The process of developing an opinion of a property value (typically market value) based on established methods and a professional judgement is..
Appraisal
What is True regarding real estate professionals
Real Estate Profeesionals must be licensed in each State In which they practice
Which type of license MAY be required to manage a property for another for a fee?
Real Estate Broker
A real estate brokerage hired to maintain and manage property on behalf of the property owner is?
A property manager
The terms real estate agent, licensee, and real estate professional generally refer to?
Licensed brokers, real estate brokerage firms, real estate sales persons
To act as appraiser, a real estate professional must obtain a license issued by which entity?
The State
The business of bringing people together in a real estate transaction is known as?
Real estate brokerage
Which licensee works with borrowers seeking a mortgage loan to buy a home?
Mortgage loan originator (MLO)
To deduct items on personal income tax, the taxpayer?
Must use an itemized form
What can a homeowner deduct from income taxes?
Origination fees, points, interest, and taxes
A homeowner sold the house that she owned by herself and had a capital gain of 175,000. To exclude that gain from her income tax if it was her primary property she must have
Lived in the house for 2 of the last 5 years
Which best describes an appraisal?
An opinion of value
What is the maximum profit with a primary home in regards to capital gains you don’t have to pay taxes on?
250,000
What is the maximum profit on a primary residence you can earn without paying takes if you’re married?
500,000
What does POIT stand for?
Points, Orginazation, Interest, Taxes
What is a short term capital gain?
Investment
Property held 12 months or less is taxed at ratepayers ordinary income tax rate
What is a long term capital gain? Investment
Property held more than 12 months is taxed at a different rate than ordinary income.
