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69 Cards in this Set
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- Back
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Chapter 1 objective !!! Explain the difference between real estate broker and a real estate salesperson |
Real estate broker is a person or organization that acts as the agent for others negotiating the purchase and sale of real property or other commodities for a fee and the real estate salesperson is a person performing the duties of a broker but supervised by a broker . |
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Chapter 1 objective !!! Explain the difference between value , price, and cost |
Value - the present worth of future benefits Price - the amount a purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding a transaction . Cost - the total dollar expenditure for labor, materials, and other items related to construction. |
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Chapter 1 objective!!! Define and distinguish the difference between a principal, agent and costumer . |
Agent - a person authorized to act on behalf of another . Principal - the employer of an agent. Customer - the party the agents bring to the principal as seller or buyer of the property. property. |
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Brokerage (1.1) |
The business of bringing buyers and sellers together and assisting in negotiations for the terms of real estate. |
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Residential property (1.1) |
A type of property that includes one to four dwelling units |
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Commercial property (1.1) |
Property that produces rental income or that is used in business. Properties with five or more dwelling units are considered commercial property. |
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Industrial property (1.1) |
Property that is used by companies or persons for manufacturing, warehousing, or the assemblage of components. |
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Special purpose property (1.1) |
A category of real property created as a result of combining the land and it's improvements for a single highest and best use |
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Mixed use property (1.1) |
Any urban, suburban, or village development, or even a single building, that blends a combination or residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections. |
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Improvements (1.3) |
Changes or additions made to a property, such as walls and roads. These typically increase the value of property, except in some cases of over improvement. |
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Non-homogeneity (1.3) |
A physical characteristic of land describing that land as a unique commodity. |
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Value (1.3) |
The present worth of future benefits. |
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Price (1.3) |
The amount a purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding a transaction. |
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Cost (1.4) |
The total dollar expenditure for labor, materials, and other items related to construction . |
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Supply (1.3) |
The amount of goods offered for sale within a given market at a given price during a given period. |
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Demand (1.3) |
The amount of goods consumers are willing and able to buy at any given price during any given time period |
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Demography (1.3) |
The study of the social and economic statistics of a community . |
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Agent (1.4) |
A person authorized to act on behalf of another. |
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Principal (1.4) |
The employer of an agent |
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Customer (1.4) |
The party the agents bring to the principal as seller or buyer of the property. |
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General agent (1.4) |
An agent with full authority over one property of the principal, such as a property manager. |
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Special agent (1.4) |
An agent with limited authority to act on behalf of the principal, such as created by listing. |
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Listing contract (1.4) |
A contract in which a property owner employs a real estate broker to market the property described in the contract. |
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Fiduciary duty (1.4) |
That duty owed by an agent to act in highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresention, concealment, duress or pressure. |
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Fiduciary (1.4) |
A person in a position of trust and confidence, as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency. |
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Caveat emptor (1.4) |
Let the buyer beware. The buyer must examine the goods or property and buy at his or her own risk. |
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Appraised value (1.6) |
An evaluation of a propertys value based on a given point in time that is performed by a professional appraiser during the mortgage origination process. |
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Market comparison approach (1.6) |
A means of comparing a similar type properties, which have recently sold, to the subject property. Commonly used in comparing residential properties. |
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Cost approach (1.6) |
An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of land. |
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Income approach (1.6) |
One of the three methods of the appraisal process generally applied to income producing property, and involves a three step process 1. Find net annual income 2. Set an appropriate capitalization rate or "present worth" factor 3. Capitalize the income dividing the net income by the capitalization rate. |
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Assessed value (1.6) |
A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property . |
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Insured value (1.6) |
The cost of replacing structure completely destroyed by an insured hazard. |
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Depreciated value (1.6) |
The basis of a depreciable asset used to compute the taxable gain from it's sale; the basis is acquisition cost plus capital improvements less accrued depreciation. |
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Chapter 1 objective !!! Summarize the three methods to valuing property, identify all three during the post assessment? |
Market comparison approach , cost approach , and income approach |
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The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate is known as…? (1.1) Agency Brokerage Trading Appraising |
Brokerage
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Property that produces rental income or that is used in business is known as…? Commercial Property Residential Property Mixed-Use Property Special Purpose Property |
Commercial Property
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Government held properties include which of the following…? Ranches Churches Office buildings Public parks |
Public parks
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These real estate brokers specialize in the sale and lease of shopping centers and office buildings…? Residential brokerage Apartment brokerage Commercial brokerage Special use brokerage |
Commercial brokerage
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Property inspections must be licensed by the Texas Real Estate Commission…?
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True
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A type of property that includes one to four dwelling units is known as…? Commercial Property Mixed-Use Property Residential Property Special Purpose Property |
Residential Property
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Which of the following is an example of a special purpose property…? Church High-rise office tower Shopping Center Self storage facility |
Church
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Which of the following courses are taken after you obtain your real estate license…? Continuing education courses Pre-licensing courses Real Estate Practice courses Real Estate Principles courses |
Continuing education courses
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The qualifying Real Estate Principles course consists of how many classroom hours in total…? 15 30 45 60 |
60
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How many points must an applicant earn in order to obtain their real estate broker’s license…? 270 1200 2500 3600 |
3600
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The mission of the Education Standard Advisory Committee (ESAC) is to regularly review and revise the curriculum standards, course content requirements, and instructor certification requirements for qualifying and continuing education courses…?
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T (True)
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The pre-licensing courses needed to obtain your real estate license are considered what type of courses…? Continuing education courses Elective courses Qualifying education courses All of the above |
Qualifying education courses
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Which of the following factors can impact the value of real estate…? Topography Prevailing winds Proximity to transportation All of the above |
All of the above |
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Value is the same as price…?
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False
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Which of the following affects supply…? Employment Cost of labor Population All of the above |
Cost of labor
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Real estate prices are directly related to supply and demand…?
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True
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Changes or additions made to a property, such as walls and roads are known as…? Improvements Fixtures Features Emblements |
Improvements
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The present worth of future benefits is referred to as…? Supply Yield Value Investment |
Value
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Which of the following is a fiduciary duty owed by an agent to their client…? Indemnification Disclosure Compensation All of the above |
Disclosure
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This Act established the real estate licensing requirements in Texas in 1939…?
Fair Housing ActTexas Real Estate Commission ActTexas Real Estate Dealers ActU.S. Real Estate Licensing Act |
Texas Real Estate Dealers Act
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Which of the following is exempt from having to obtain a real estate license to buy or sell real estate on someone else’s behalf…? Someone acting under a power of attorney Architects Appraisers All of the above |
Someone acting under a power of attorney
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A person authorized to act on behalf of another is known as a/an…? Principal Agent Customer Attorney |
Agent
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The party the agent brings to the principal as seller or buyer of the property is known as the…? Customer Broker Intermediary All of the above |
Customer
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A person in a position of trust and confidence, as between principal and broker, is known as a…? Customer Principal Client Fiduciary |
Fiduciary
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Mark is looking to purchase a commercial office building. An appraiser was hired to assess the value of the building. What appraisal method did the appraiser use…? Market Comparison Approach Income Approach Cost Approach All of the above |
Income Approach
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A non-profit organization in looking to purchase a church. An appraiser was hired to assess the value of the church. What appraisal method did the appraiser use…? Market Comparison Approach Income Approach Cost Approach All of the above |
Cost Approach
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Improvements typically ………... in value? Rescind Escalate Appreciate Depreciate |
Depreciate
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Price is typically equal to the cost of the property…?
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False
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A licensee’s license may be suspended or revoked if which of the following occurs…? The licensee changes brokerages The licensee is convicted of a felony The licensee does not close a transaction within one calendar year The licensee negotiates on behalf of his/her client |
The licensee is convicted of a felony
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Real estate agents and brokers must be careful not to provide legal advice to their clients…?
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True
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Who holds the real estate license of an agent…?The agent’s sponsoring broker The agent themselves The Texas Real Estate Commission All of the above |
The agent’s sponsoring broker
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In order to obtain a real estate license, an applicant must be at least how many years of age…?18 20 21 22 |
18
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If a real estate salesperson terminates their employment with their sponsoring broker, the salesperson's license is considered what…? Active Inactive Revoked Suspended |
Inactive
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Real estate licenses are issued for a period not to exceed how many years…? 1 2 3 4 |
2
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If a person’s license has been expired for more than 6 months, they are required to do which of the following in order to re-activate their license…? Satisfy the education requirements and retake the State exam Pay a renewal fee Pay 2x the renewal fee They are not allowed to re-apply for a license |
Satisfy the education requirements and retake the State exam
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