Unit 2 Quiz: Introduction to Modern Real Estate Practice

property used for housing

residential

business property like offices, shopping centers, hotels, and etc

commercial

factories, warehouse, industrial districts

industrial

Farms, timberland, ranches, orchards

agricultural

churches, schools, cemeteries

special purpose

any combination of the other five categories

mixed use

Estimates property values based on established valuation guidelines

appraiser

provides funds for development and purchase of real estate

Lender or investor

provides visual inspection of properties structure, systems, and site conditions

home inspector

constructs improvements on land

developer

educates on laws rules and practices in areas of pre-licenses, continuing education, and post licensing

real estate educator

assists clients in making informed real estate decisions

real estate counselor

makes recommendations to local governments for improvements

urban planner

ensures good title to the buyer in a real estate transaction

title and abstract company

operates properties for others

property manager

negotiates for and acquires subsurface mineral rights for oil and gas exploration

petroleum landsman/ lands-woman

the geographic location of a piece of land is fixed; it can never be changed

immobility

while improvements may deteriorate over time, the land itself cannot be destroyed

indestructibility

one parcel ( piece of land) will not be exactly like another, This is the concept of non-homogeneity

Uniqueness

What term refers to the dimensions, physical features, and contours of the land?

Topography

How does topography impact land value?

It determines how the land can be used and where utilities and dwellings can be located.

When does a seller’s market occur?

When supply is low and demand is high

When both supply and demand increase, what tends to happen to prices?

Stay the same

Which area of real estate law covers how an agency relationship is created and explains the duties of an agent to the principal?

Law of agency

What is a true statement about specializing in a specific type of property transaction?

Both brokers and sales agents may specialize in one or more types of property.

What types of laws are passed by the U.S. Congress and signed into law by the president?

Federal laws

Which type of valuation is used by government tax assessment offices?

Assessed value

When there are more buyers in area than there are homes available to purchase, what does it mean?

Demand exceeds supply.

What is the source of law for real estate license laws?

State laws and regulations

What type of laws are enacted by government agencies at the city, state, county, or federal levels to provide a way to implement and enforce laws?

Administrative laws and ordinances

What does the Education Standards Advisory Committee (ESAC) do?

Makes recommendations for improvements to real estate education.

The _______ value affects a property’s income tax basis.

Depreciated

What property might a licensee specializing in special purpose real estate try to sell?

Church

Which area of real estate law governs the use of contracts, explains the elements required to make a contract valid, and describes what happens if a breach of contract should occur?

Contract law

Applying a capitalization rate to the net operating income is one way to determine a property's ______ value.

Investment

Which area of law covers what's required of a licensee when performing real estate activities?

 Real estate license law