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
