Chapter 1: The Real Estate Business - Vocabulary Flashcards

Vocabulary flashcards covering key terms from Chapter 1: The Real Estate Business, including real estate professions, activities, brokerage, regulation, classifications, and specialization.

Real estate professions

Individuals and business organizations whose sole enterprise is performing a real estate-related service or function.

Real estate activities

Creation, management, maintenance, demolition, investment ownership, regulation, and transfer of real property.

Creation and improvement

Creating real property from raw land involving capital formation, financing, construction contracting, and regulatory approvals; key participants include developers, landowners, mortgage lenders, plus analysts, architects, engineers, space planners, interior designers, and subcontractors.

Management and maintenance

All real estate must be managed and maintained; principal managers are property managers and asset managers; maintenance staff include engineers, technicians, and janitors.

Demolition

Removal of properties that are no longer economically viable, often with excavation and debris removal.

Investment ownership

A real estate investor who buys, holds, and sells real property, providing capital and liquidity to the market.

Regulation

Government regulation of real estate—usage, taxation, housing administration—carried out by public regulators; includes public planners, zoning admins, building inspectors, assessors, and federal housing statutes.

Transfer

Rights and interests in real estate can be bought, sold, assigned, leased, exchanged, inherited; brokers and brokers’ salespeople facilitate transfers; other participants include mortgage brokers/bankers, appraisers, insurers, and title companies.

Creating (Professions)

In the six-function framework, professionals who create real properties: developers, market analysts, public/private planners, surveyors, architects, engineers, building contractors, public/private inspectors, space planners, mortgage brokers, mortgage lenders/bankers, securities companies, title/escrow companies, attorneys, insurers, appraisers, and real estate brokers/agents.

Managing & Maintaining (Professions)

Professionals who operate and maintain properties: property managers, asset managers, maintenance engineers/technicians, corporate managers.

Destroying (Professions)

Demolition contractors and excavators who remove properties no longer viable.

Holding (Professions)

Investors and corporate managers who hold properties for investment and portfolio management.

Regulating (Professions)

Assessors, public planners, zoning administrators, and building inspectors who regulate real estate use and compliance.

Transferring (Professions)

Brokers and agents, appraisers, lenders and bankers, mortgage brokers, title and escrow companies, attorneys, insurers, and surveyors involved in transferring real estate rights and interests.

Property type specialization

Specialization by ownership type: residential, residential income, office, retail, industrial, farm and ranch, special purpose, and land.

Residential property

Property owned and used for habitation; may be classified by number of families and attached/detached status.

Commercial property

Property used for business purposes, typically retail and offices; may include industrial; income-generating from business usage.

Investment property

Property held by owners for investment purposes; any property can be an investment, though owner-occupied residences are usually not categorized as investment properties.

Residential income properties

Residential properties (e.g., apartments, condos, co-ops) owned for investment when non-occupants own the property.

Property use classifications

Common use categories: residential, industrial, residential income, farm and ranch, office, special purpose, retail, and land.

Special purpose properties

Recreational facilities, government buildings, churches, schools, and similar properties.

Real estate brokerage

Procure a buyer or tenant for an owner or landlord, or vice versa.

Forms of specialization (Brokerage)

Specialization by property type, geographical area, type of transaction, type of client, or type of relationship.

Advisory services

Providing real estate services for a fee on identified tasks or projects, not necessarily a transaction-based commission.

Property type specialization (Brokerage)

Brokers specializing by property type: residential, commercial (office/retail), industrial, and land.

Geographical area specialization

Specialization by a defined geographic area to maintain current market data and property information.

Type of transaction

Sales, leases, subleases, exchanges, and options; each form involves specific legal documents.

Type of relationship

Advisory or fee-based relationships where services may be provided without a traditional transaction-based commission.