Unit 1 - The Real Estate Business

A real estate Broker or sales associate must be competent in

A knowledge of property transfer, a knowledge of market conditions, and a knowledge of how to market real estate

What is used to transfer possession of a property less than permanently?

A lease. Leases are used to rent property

Fiduciary means

A person having a duty to act primarily for another's benefit. It involves duties such as good faith, trust, special confidence, and candor

A sales associate can provide all services to the buyers and sellers under the direction of a

Broker

CMA stands for

Comparative Market Analysis

To determine the value of real property, instead of an appraisal, real estate agents perform a

Comparative Market Analysis

HUD stands for

Department of Housing and Urban Development

The Department of Housing and Urban Development is part of the ______ government

Federal

The Federal Housing Administration is part of the ______ government

Federal

The Real Estate Settlement Procedures Act (RESPA), is part of the

Federal Government

The Veterans Administration is part of the

Federal Government

The making of the Federal Fair Housing laws is part of the ______ duties

Federal Government

FHA stands for

Federal Housing Administration

FAR stands for

Florida Association of Realtors

Appraisers are regulated by the

Florida Real Estate Appraisal Board

F R E A B stands for

Florida Real Estate Appraisal Board

Mortgage Bankers are regulated by the

Florida State Banking Department

Mortgage Brokers are regulated by the

Florida State Banking Department

It is frequently written that the American economy is

Housing Led and Housing Fed

What must the Real Estate Professional be able to convey to their Clients and Customers with in regard to commercial property?

How to produce income and create an after-tax cash flow

With regard to Property Management, where should the Equal Opportunity Housing logo be prominently displayed?

In the rental office

NAR stands for

National Association of Realtors

Several organizations exist to give the Real Estate Professional ethical guidance, continued help, contact with other Real Estate Professionals, and education. Some of these organizations are

National Association of Realtors (NAR), Florida Association of Realtors (FAR), and the Local Board Associations of Realtors

A real estate Broker or sales associate must be able to determine and meet the needs of the

Principal or Client

In residential home construction, what are the three types of homes that are usually built?

Spec, Tract, and Custom

Candor means

The quality of being open and honest in expression

Anyone who appraises property must conform to the

Uniform Standards of Professional Appraisal Practice

Appraisals done by licensed appraisers follow the

Uniform Standards of Professional Appraisal Practice

USPAP stands for

Uniform Standards of Professional Appraisal Practice

A Comparative Market Analysis is exempt from

Uniform Standards of Professional Appraisal Practice standards

VA stands for

Veterans Administration

Residential property in Florida is

a family home that is a single family dwelling, a duplex, a tri-plex, a quad, vacant land that has been zoned for 4 units or less, or a farm and agriculture residential family home on less than 10 acres land

A Mortgage Banker is

a person or entity that originates loans

Preamble means

a preliminary or preparatory statement, an introduction

There is a need for property managers because so many owners are

absentee owners

It is up to the Real Estate Professional to analyze existing or potential projects and provide

advice and counsel to the parties

An appraisal is

an estimation of value

Dedication is when

an individual "Dedicates" real property for public use such as streets, parks, schools, etc.

Routine maintenance is

annual lawn mowing, cleaning carpets, and other day to day cleanup

A breach of fiduciary relationship would make the fiduciary liable for

any damage caused by any such action

Real Estate Professionals do Comparative Market Analysis and may not call a Comparative Market Analysis an

appraisal

Professional Appraisal Practice includes

appraisal, appraisal review, and appraisal consulting

Developers may assemble several small pieces of land to create a large piece, this is called

assemblage

Some of the sources of financing to a real estate buyer are

banks, savings and loans, credit unions, mortgage bankers, mortgage brokers, and insurance companies

Property Management functions include

budget expenses for the property

Some of the major indirect roles that the real estate industry plays in the nation's economy is

builders, building suppliers, carpet manufacturers, and appliance sales such as refrigerators, washers, and dryers

In creating a Comparative Market Analysis, at least three ______ in each category should be used

comparables

The Subdivision Plat Map is submitted to the municipality for

consideration of approval

Many times as a condition of an approval of a plat map from a county, a sub-divider is required to

dedicate a certain portion of land for public use for such things as streets, parks, schools, or green areas

A Comparative Market Analysis can be used by a Broker representing the buyer to

determine the price the buyer wishes to offer for the property, to determine if the property is worth the listed price being asked by the seller, and what other properties in the same neighborhood have sold for recently

Subdividing and development occurs when the sub-divider takes over the property and

divides it into the size lots he wishes for the price range of properties in the area

Industrial property usually manufactures or distributes products such as a

factory or warehouse

The area that Real Estate Professionals specialize in is called the

farm area

Agricultural property is define as

farm or ranch land of more than ten acres

Real Estate Professionals often specialize in one particular geographic area or property type called

farming

The appraiser does what is usually called a

fee appraisal

The property manager does not have a

fiduciary relationship with the tenant

The real estate Broker or sales associate should always provide a

follow-up on the needs of the Client

Federal Fair Housing laws must be

followed at all times

With regard to Special Purpose property, each zoning district will look at the combination of land and improvements with

highest and best use in mind

What is the major direct roles that the real estate industry plays in the nation's economy?

home sales, leasing, commercial property sales or leases, industrial leases or purchases, and agricultural sales or leases

The property manager owes to a tenant the duties of

honesty, accuracy, and disclosure of material facts

Knowledge of the market conditions include

how much property is on the market, how property can be financed, how well property is selling, and how much the property is worth

With regard to rent, the Real Estate Professional must know

how much rent a property can bring

Commercial property is

income producing property such as a retail center or an apartment complex of more than four units

When land is changing from agricultural to homes, there are three basic steps. These steps are called

land acquisition, subdividing and development, subdivision plat map and recording

Undeveloped agricultural land to build homes purchased by developers are usually

large tracts of land and most often several acres

Ethics are

moral principles that govern a person's or group's behavior

The MLS is a

multiple listing service

A property manager is defined as

one who preserves the value of an investment while generating income as an agent for the owner

A Mortgage Broker is a person or entity that brings a lender and purchaser together but does not

originate loans

Tract homes are built to a certain set of guidelines used for a

particular subdivision. These homes are very similar in design to other homes in the subdivision and usually vary only by color of paint, color of carpet, etc. The square footage and layout is the same in each home of the same model

An appraiser must be paid on a fee per-job basis, not a

percentage of the value of the property

Because a property manager is charged with maintaining the property, he must be familiar with

preventative maintenance and routine maintenance

The intent of appraisal standards is to

promote and maintain a high level of public trust in Professional Appraisal Practice

Knowledge of how to market real estate includes

proper pricing, disclosure to both buyer and seller, service to the buyers and sellers, and maintaining relationships with other Real Estate Professionals

All business is done under the authority of a

real estate Broker

Using the Comparative Market Analysis method of determining the value of real estate, what techniques are used?

recent home sales, homes currently on the market, and homes that were listed but did not sell

Real estate licensees may perform real property valuation services in Florida as long as they do not

represent themselves as a certified appraiser

Individuals comply with appraisal standards either by choice or by

requirement placed upon them or upon the service they provide by law, regulation, or agreement with their intended users

Five major real estate sales specialties are

residential, commercial, industrial, agricultural, and special purpose property

Special Purpose property examples include

schools, churches, nursing homes, post offices, and hospitals

A real estate Brokerage business is that business which brings interested parties together to

sell, lease, rent, or exchange real property

Spec homes are

speculation homes, built without having a specific buyer in mind. Sometimes these homes are used as displays, many times they are used for buyers who need a house in a hurry and can't wait to have a new home built

Developers get the proper zoning for property they assemblage then turn around and sell the property to a

sub-divider

Realtors stands for

the Local Board Associations of Realtors

When a Subdivision Plat Map is approved, it is recorded in

the county where the property is located

In determining a Comparative Market Analysis, real estate Brokers use

the multi-listing service, local taxing office, and the local recording office

A Property Management Agreement must contain

the name and address of the owner

The preamble of Uniform Standards of Professional Appraisal Practice says

the purpose of appraisal standards is to establish requirements for Professional Appraisal Practice

One thing that State Government consist of is

the recording of deeds

The Broker, using his expertise, acts as an agent or intermediary between two or more people in the negotiation of

the sale, purchase, or rental of real estate

When performing a Comparative Market Analysis, in all cases, it is imperative that the Broker use

the same neighborhood and model and type of home as the property in question

Knowledge of property transfer refers to

transferring permanent ownership by deed, will, or inheritance by using contracts, deeds, wills, or trusts

Land acquisition occurs when a developer buys

undeveloped agricultural land to build homes

The Comparative Market Analysis is used by the Broker with the seller to set the listing price and to determine

what probable price the property will bring

With regard to investment property, the Real Estate Professional must know

what the rate of return will be on an investment property

The Subdivision Plat Map is a visual drawing of

where each lot and block will be as well as streets, parks, and utilities

Preventative Maintenance is

work done before expensive repair work is needed such as caulking windows and doors, changing furnace filters, etc.

Local Government consist of

zoning laws, occupancy permits, taxation of real property, and business permits for Real Estate Professionals